Stewardship
Stewardship is a powerful tool for change
Stewardship aims to improve risk-adjusted return of investment through positive change outcomes. We engage with a range of stakeholders in society to support better long term sustainable outcomes for the investors we serve.
HSBC Stewardship Plan 2024
How can stewardship add value?
 |
Driving growthStewardship means acting in the best interests of asset owners. This includes holding company boards accountable for the execution of strategies that can deliver long term value to stakeholders. Discussions with companies can also help us spot emerging sustainability themes. |
Managing risksStewardship activities can encourage companies to evaluate how they will navigate the constantly changing landscape of emerging risks. |
 |
 |
Improving transparency and disclosureBetter disclosure means less uncertainty for investors, which potentially lowers the cost of capital. In the process of disclosure, companies can also gain additional insights into their business. |
Delivering positive social and environmental outcomesStewardship can encourage issuers to act with a deeper understanding of their environmental and social impact, taking different stakeholders’ interest into account. |
 |
 |
||
| Stewardship Plan 2024 | ||
| This playbook guides our investment teams in engaging with portfolio companies. |
How do we engage?
Types of engagement
Proactive engagement
Led by portfolio managers, analysts and the stewardship team, proactive engagement is conducted following a priority list created to ensure that we maximise the potential positive impact of our engagement efforts.
Reactive engagement
When a controversy arises, we engage with the company to address our concern. This can include discussing a remediation plan and controversy management depending on the nature and severity of the issue.
Collaborative engagement
We signed up to a number of collaborative initiatives that tackles specific sustainability issues, such as FAIRR initiative that focuses on the food sector and PRI Advance on human rights. Collaboration helps amplify our impact as a minority investor (particularly with companies that are otherwise challenging to engage with) with the ultimate goal to enhance value for our investors.
Policy Engagement
Where possible, we engage in conversations with regulators or governmental bodies directly or via membership in industry or green finance associations to provide insights in the development of ESG related framework or guidelines.
Read more
The value of investments and any income from them can go down as well as up and investors may not get back the amount originally invested.
The information presented may refer to HSBC Asset Management's global AUMs/figures and global policies. Even though local entities of HSBC Asset Management may be involved in the implementation and application of global policies, the numbers presented and the commitments listed are not necessarily a direct reflection of those of the local HSBC Asset Management entity
Today, we and many of our customers contribute to greenhouse gas emissions. We have a strategy to reduce our own emissions and to help our customers reduce theirs. For more information visit https://www.assetmanagement.hsbc.com/about-us/net-zero