HSBC GIF Global Lower Carbon Equity
This fund is designed to provide long-term total return with a lower carbon intensity and higher ESG rating than the reference benchmark.
- It takes advantage of a broad investment universe: Its reference benchmark is the MSCI World Net, representing developed-markets equities globally covers +20 countries through +1,600 stocks
- It aims for a lower carbon intensity and higher overall ESG rating, calculated respectively as a weighted average of the carbon intensities and ESG ratings of the fund’s investments, than the reference benchmark
Integrating ESG in our Multi-Factor approach
- Investments are assessed for their individual carbon intensity and ESG scores to lower exposure to carbon intensive businesses and raise the fund’s overall ESG rating.
- We assess all stocks for their carbon intensity and ESG scores.
- Finally, we use our proprietary systematic investment process to maximise exposure to higher multi-factor ranked stocks and improve the overall carbon and ESG profile of the fund.
Focused on reducing carbon exposure
By combining style factors, “multi-factor” strategies aim to provide better returns than traditional benchmarks while diversifying risks
Our custom process allows us to reduce the fund’s carbon intensity significantly, while at the same time seeking to generate returns that are better than the benchmark
- We follow the Greenhouse Gas Protocol to measure companies’ greenhouse gas emissions, commonly measured in tonnes of carbon dioxide equivalents (tCO2e)
- We first measure the carbon intensity of single securities, to tell us how many tCO2e are associated with each. Then we assess the carbon intensity of the overall fund
y