HSBC GIF Global Lower Carbon Equity

• 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 has a lower carbon footprint (a measure of the overall CO2 emissions of the companies held in the fund) than its reference benchmark, achieved by reducing its exposure to stocks with the highest greenhouse gas emissions

Our multi-factor equity approach

We take a three step multi-factor approach.

1. We combine several style factors to identify and rank the most attractive stocks in our investment pool.
2. We assess all stocks in the fund for their carbon footprint and ESG risks
3. Finally, we use our custom-built process to maximise exposure to the most attractive stocks and reduce the fund’s carbon footprint

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 footprint 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 footprints of single securities, to tell us how many tCO2e are associated with each. Then we assess the carbon footprint of the overall fund

Fund details