AmazonScience/document-haystack

1ESG review2Sustainable finance and investment continued3Helping customers to 4understand ESG in their 5investments6We have launched new metrics to 7help our Global Private Banking and 8Wealth customers understand the 9ESG performance of their investments. 10In selected markets in 2023, we also 11introduced a sustainability preference 12questionnaire to help identify and 13understand our customers’ sustainable 14investing objectives and ambitions. By 15improving clarity on ESG performance, 16which traditional financial metrics fail to 17capture, we aim to provide customers 18with meaningful insights to enable 19them to make informed investment 20decisions. Examples of these metrics, 21available on digital platforms in selected 22markets, are: 23 – ‘ES24G rating and score’, which 25measures a company’s resilience to 26material long-term, industry ESG risks 27and opportunities, with data provided 28by MSCI.29 – ‘Ca30rbon intensity’, which measures 31a company’s carbon emissions per 32million of revenue, with data provided 33by S&P Trucost. 34In addition, we have also introduced 35‘HSBC ESG and sustainable investing 36classifications’, which help customers 37to understand and identify ESG and 38sustainable investing products in their 39investment portfolio according to 40HSBC’s definition.41Responsible and sustainable investment 42We offer a broad suite of ESG capabilities 43across asset management, global markets, 44wealth, private banking and securities 45services, to help institutional and individual 46investors to generate financial returns, manage 47risk and pursue ESG-related opportunities.48Our Asset Management business is 49committed to further developing our 50sustainable product range across asset 51classes, as well as enhancing our existing 52product suite for ESG and climate-related 53criteria where it is in the investors’ interests 54to do so. In 2023, we launched 10 funds 55within our ESG and sustainable strategies, 56which adhere to, and are classified within, 57our Sustainable Finance and Investment Data 58Dictionary 2023.59HSBC Asset Management managed over 60$684bn assets at the end of 2023, of which 61$73.3bn comprise assets of funds and 62mandates invested in our ESG and sustainable 63strategies.64Our ESG and sustainable investing approach 65across different investment products can 66include but is not limited to the UN SDGs, 67including climate. For the avoidance of 68doubt, assets invested pursuant to, or 69considered to be in alignment with, HSBC’s 70ESG and sustainable investing approach 71do not necessarily qualify as ‘sustainable 72investments’ as defined by the EU Sustainable 73Finance Disclosures Regulation (‘SFDR’) 74or other relevant regulations. Our ESG and 75sustainable investing approach is an HSBC 76internal classification approach used to 77establish our own ESG and sustainable 78investing criteria (recognising the subjectivity 79inherent in such an approach and the 80variables involved). It is also used to promote 81consistency across asset classes and business 82lines where relevant, and should not be relied 83on externally to assess the sustainability 84characteristics of any given product. There 85is no single global standard definition of, or 86measurement criteria for, ESG and sustainable 87investing or the impact of ESG and sustainable 88investing products.89We seek to take an active stewardship role to 90help drive positive change in the companies 91on our priority list in which we invest on behalf 92of our customers. The priority list, which is 93defined in our Global Stewardship Plan, can be 94found at: www.assetmanagement.hsbc.co.uk/95en/institutional-investor/about-us/responsible-96investing/-/media/files/attachments/uk/97policies/stewardship-plan-uk.pdf.98HSBC Asset Management’s fixed income, 99equity and stewardship teams held over 2,000 100meetings with companies in its portfolios. This 101included engaging with companies on the 102priority list across several thematic priorities, 103such as climate change, human rights, public 104health, inclusive growth and shared prosperity, 105biodiversity and nature, trusted technology 106and data, and diversity, equity and inclusion.107For our private banking and wealth customers, 108we expanded our investment offering with 109the launch of eight ESG and sustainable 110investing mutual funds and exchange-traded 111funds in 2023. We also enhanced our ESG 112and sustainable investing structured products 113offering linked to indices such as the MSCI 114World Islamic ESG Select 8% Risk Control 115Index. Throughout 2023, we published regular 116ESG and sustainability-related market insights 117and updates such as #WhyESGMatters 118and Learning about ESG to help clients 119better understand the implications for 120their investments.121HSBC Life, our insurance business, continues 122to expand the availability of ESG investment 123fund options within its investment-linked 124products. In 2023, eight new ESG funds were 125introduced across Hong Kong, France and 126Singapore with a range of investment themes, 127including environmental, circular economy 128and sustainable energy.129In June, under the United Nations Environment 130Programme Finance Initiative (‘UNEP FI’) 131Principles for Sustainable Insurance, HSBC 132Life co-led a team of insurance organisations 133to publish an industry position paper focused 134on the role and opportunity for life and health 135insurers to help build a more inclusive and 136preventative healthcare model. This included 137examples of good industry practice to: help 138insurers improve access to healthcare; close 139the health protection gap; drive better health 140outcomes across populations; and mitigate 141potential health risks due to climate change 142and other environmental factors.143 For further details of our asset management 144policies, see page 67.145HSBC Holdings plc Annual Report and Accounts 2023 51146Environmental