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Sustainable Investment products

We developed a range of innovative solutions to support our clients who want to allocate capital to achieve specific sustainable outcomes. Our range include low carbon fixed income and equity, thematic and sustainable multi-asset portfolios. Where clients have specific constraints, we were able to create customised solutions to meet their needs.

For more information on how we assess, measure and monitor the environmental or social characteristics or the impact of sustainable investments in our products please refer to our ‘Responsible Investment Policy’ and ‘Implementation Procedures’. For our sustainability disclosure and other policies related to sustainable investments, please refer to ‘Policies and Disclosures’.

Sustainable investing range

(EU Sustainable Finance Disclosures Regulation - Article 8¹ and Article 9²)

Search :
Fund Name
SFDR Category (Art. 8 or 9)* Environmental/social characteristics or sustainable investment objective
How the environmental/social characteristics or the sustainable investment objective is met?
How the index is aligned with the environmental/social characteristics, or the sustainable investment objective? Why and how the index used differs from a broad market index?
Developed World Sustainable Equity Index Fund
8
The Fund aims to provide returns by tracking the performance of the FTSE Developed ESG Low Carbon Select Index (the “Index”) before the deduction of charges. To achieve its investment objective, the Fund will invest directly in shares (equities) of companies that make up the FTSE Developed ESG Low Carbon Select Index.

The Fund may also invest in the following assets which are not part of the Index:
- cash to manage day-to-day cash flow requirements;
- units or shares of collective investment schemes, including collective investment schemes managed or operated by the HSBC Group in order to manage day-to-day cash flow requirements;
- equity related securities such as American Depositary Receipts and Global Depositary Receipts (which are certificates typically issued by a bank or trust company evidencing ownership of shares of a non-US issuer) in order to achieve exposure to a stock instead of using a physical security.

The Fund may use derivatives for efficient portfolio management including hedging, which means investment techniques that aim to reduce risks, reduce costs or generate growth and income. The Fund does not intend to use derivatives extensively and their use will be consistent with the risk profile of the Fund.

The Fund may sometimes not invest in all of the companies that make up the Index in circumstances where the ACD determines that this is appropriate for reasons of poor liquidity, excessive cost to the Fund or where there are investment restrictions due to regulations or the ACD’s banned weapons policy or other investment restrictions to which the ACD is bound.
The FTSE Developed ESG Low Carbon Select Index is comprised of mid and large cap stocks from developed markets. The Index seeks to achieve a reduction in carbon emissions and fossil fuel reserves exposure and an improvement of the FTSE Russell ESG rating against that of the FTSE Developed Index (the ‘Parent Index’).

The Index achieves this in the following ways:
1. on an annual basis in September, stocks are removed based on sustainability exclusionary criteria. Companies are removed from the Index on an annual basis due to the sustainability exclusionary criteria. For some of the criteria companies are excluded if they have any involvement in the excluded activity, whereas for some of the criteria a threshold applies, for example companies are excluded if over 10% of their revenues are generated from the excluded activity
2. on an annual basis in September, the weights of the remaining companies within the Parent Index are adjusted according to carbon emissions intensity , fossil fuel reserves intensity and FTSE Russell ESG ratings based criteria. The Index also aims to maintain country neutrality and to limit industry divergence against the Parent Index by maintaining maximum stock weights of 10% and minimum stock weights of 0.5 bps ; and
3. on a quarterly basis, removing companies considered to be non-compliant with one or more of the UNGC principles.
Global Sustainable Multi-Asset Adventurous Portfolio
8
The Fund aims to provide growth in line with its risk profile in the long term, which is a period of five years or more. The Fund’s risk profile is rated as 5 where 1 is a lower level of risk and 5 is a higher level of risk.

The Fund invests in a range of sustainable investment strategies.
To achieve its objective the Fund will invest a minimum of 80% in collective investment schemes, which in turn invest in bonds, shares of companies (equities) and property securities that meet one or more sustainable investment strategies. The Fund may also invest up to 20% directly in bonds where the investment objective can be more efficiently achieved and may invest directly in shares of companies in limited circumstances.

The collective investment schemes that the Fund invests in will, where appropriate, be those managed or operated by the HSBC Group. Where this is not appropriate the Fund may invest in collective investment schemes operated by third party fund providers.

The Fund may also invest in money market instruments, deposits and cash to manage day-to-day cash flow requirements.

The Fund may invest in derivatives for efficient portfolio management purposes, including hedging. This means investment techniques that aim to reduce risks, reduce costs or generate growth and income. The Fund may also use derivatives for broader investment purposes to help the Fund meet its objective. The Fund does not intend to use derivatives extensively and their use will be consistent with the risk profile of the Fund.
This fund does not track an index.
Global Sustainable Multi-Asset Balanced Portfolio
8
The Fund aims to provide growth in line with its risk profile in the long term, which is a period of five years or more. The Fund’s risk profile is rated as 3 where 1 is a lower level of risk and 5 is a higher level of risk.

The Fund invests in a range of sustainable investment strategies which aim to consider financial returns alongside environmental, social and governance factors.
To achieve its objective the Fund will invest a minimum of 70% in collective investment schemes, which in turn invest in bonds, shares of companies (equities) and property securities that meet one or more sustainable investment strategies. The Fund may also invest up to 30% directly in bonds where the investment objective can be more efficiently achieved and may invest directly in shares of companies in limited circumstances.

The collective investment schemes that the Fund invests in will, where appropriate, be those managed or operated by the HSBC Group. Where this is not appropriate the Fund may invest in collective investment schemes operated by third party fund providers.

The Fund may also invest in money market instruments, deposits and cash to manage day-to-day cash flow requirements.

The Fund may invest in derivatives for efficient portfolio management purposes, including hedging. This means investment techniques that aim to reduce risks, reduce costs or generate growth and income. The Fund may also use derivatives for broader investment purposes to help the Fund meet its objective. The Fund does not intend to use derivatives extensively and their use will be consistent with the risk profile of the Fund.
This fund does not track an index.
Global Sustainable Multi-Asset Cautious Portfolio
8
The Fund aims to provide growth in line with its risk profile in the long term, which is a period of five years or more. The Fund’s risk profile is rated as 1 where 1 is a lower level of risk and 5 is a higher level of risk.

The Fund invests in a range of sustainable investment strategies.
To achieve its objective the Fund will invest a minimum of 40% in collective investment schemes, which in turn invest in bonds, shares of companies (equities) and property securities that meet one or more sustainable investment strategies. The Fund may also invest up to 60% directly in bonds where the investment objective can be more efficiently achieved and may invest directly in shares of companies in limited circumstances.

The collective investment schemes that the Fund invests in will, where appropriate, be those managed or operated by the HSBC Group. Where this is not appropriate the Fund may invest in collective investment schemes operated by third party fund providers.

The Fund may also invest in money market instruments, deposits and cash to manage day-to-day cash flow requirements.

The Fund may invest in derivatives for efficient portfolio management purposes, including hedging. This means investment techniques that aim to reduce risks, reduce costs or generate growth and income. The Fund may also use derivatives for broader investment purposes to help the Fund meet its objective. The Fund does not intend to use derivatives extensively and their use will be consistent with the risk profile of the Fund.
This fund does not track an index.
Global Sustainable Multi-Asset Conservative Portfolio
8
The Fund aims to provide growth in line with its risk profile in the long term, which is a period of five years or more. The Fund’s risk profile is rated as 2 where 1 is a lower level of risk and 5 is a higher level of risk.

The Fund invests in a range of sustainable investment strategies which aim to consider financial returns alongside environmental, social and governance factors.
To achieve its objective the Fund will invest a minimum of 70% in collective investment schemes, which in turn invest in bonds, shares of companies (equities) and property securities that meet one or more sustainable investment strategies. The Fund may also invest up to 30% directly in bonds where the investment objective can be more efficiently achieved and may invest directly in shares of companies in limited circumstances.

The collective investment schemes that the Fund invests in will, where appropriate, be those managed or operated by the HSBC Group. Where this is not appropriate the Fund may invest in collective investment schemes operated by third party fund providers.

The Fund may also invest in money market instruments, deposits and cash to manage day-to-day cash flow requirements.

The Fund may invest in derivatives for efficient portfolio management purposes, including hedging. This means investment techniques that aim to reduce risks, reduce costs or generate growth and income. The Fund may also use derivatives for broader investment purposes to help the Fund meet its objective. The Fund does not intend to use derivatives extensively and their use will be consistent with the risk profile of the Fund.
This fund does not track an index.
Global Sustainable Multi-Asset Dynamic Portfolio
8
The Fund aims to provide growth in line with its risk profile in the long term, which is a period of five years or more. The Fund’s risk profile is rated as 4 where 1 is a lower level of risk and 5 is a higher level of risk.

The Fund invests in a range of sustainable investment strategies.
To achieve its objective the Fund will invest a minimum of 70% in collective investment schemes, which in turn invest in bonds, shares of companies (equities) and property securities that meet one or more sustainable investment strategies. The Fund may also invest up to 30% directly in bonds where the investment objective can be more efficiently achieved and may invest directly in shares of companies in limited circumstances.

The collective investment schemes that the Fund invests in will, where appropriate, be those managed or operated by the HSBC Group. Where this is not appropriate the Fund may invest in collective investment schemes operated by third party fund providers.

The Fund may also invest in money market instruments, deposits and cash to manage day-to-day cash flow requirements.

The Fund may invest in derivatives for efficient portfolio management purposes, including hedging. This means investment techniques that aim to reduce risks, reduce costs or generate growth and income. The Fund may also use derivatives for broader investment purposes to help the Fund meet its objective. The Fund does not intend to use derivatives extensively and their use will be consistent with the risk profile of the Fund.
This fund does not track an index.
HSBC Asia Pacific Ex Japan Sustainable Equity UCITS ETF
8
The investment objective of the Fund is to replicate the performance of the FTSE Asia Pacific ex Japan ESG Low Carbon Select Index (the “Index”), while minimising as far as possible the tracking error between the Fund’s performance and that of the Index. The Index is a subset of the FTSE Asia Pacific ex Japan Index (the “Parent Index”) and aims to measure the performance of companies in emerging and developed countries in Asia Pacific ex-Japan as defined by the Index Provider. As further detailed in the “Index Description” section of the Supplement, on an annual basis, the Index Provider applies sustainable exclusionary criteria and weights companies in order to reduce the exposure in the Index to companies with higher carbon emissions and fossil fuel reserves and to improve the exposure in the Index to comply with favourable FTSE Russell environmental, social and governance ("ESG") ratings compared to that of the Parent Index. In addition, the United Nations Global Compact (UNGC) exclusionary criteria are applied to the Index on a quarterly basis (i.e. on each rebalancing date). The Index seeks to achieve a reduction in carbon emissions and fossil fuel reserves exposure and an improvement of the FTSE Russell ESG rating against that of the Parent Index.
HSBC Bloomberg EUR Sustainable Corporate Bond UCITS ETF
8
The investment objective of the Fund is to replicate the performance of the Bloomberg MSCI Euro Corporate SRI Carbon ESG-Weighted (EUR Unhedged) Index (the "Index"), while minimising as far as possible the tracking error between the Fund’s performance and that of the Index.

The Index tracks the performance of fixed-rate, investment grade debt securities issued by corporate issuers and seeks to achieve a reduction in carbon emissions and an improvement of the MSCI ESG rating against that of the Bloomberg Euro Aggregate Corporate Index (the “Parent Index”). As further detailed in the "Index Description" section of the Supplement, the Index achieves this by removing, on a monthly basis, securities based on sustainability exclusionary criteria. The following types of issuers are removed from the Index on an ongoing basis due to the sustainability exclusionary criteria and some criteria may apply thresholds:

Issuers with MSCI ESG Ratings lower than BB, issuers with an ESG Pillar score of less than 2, unrated issuers from sectors with ratings. The index also negatively screens issuers that are involved in business activities that are restricted because they are inconsistent with certain values-based business involvement criteria, including activities with high carbon intensity or related to controversial weapons, and those issuers with a “red” MSCI ESG Controversy Score.

The weight of each constituent issuer is adjusted by a fixed multiplier, as set out in the index methodology, which is determined by its MSCI ESG Rating.

The Index seeks to achieve a reduction in carbon emissions and an improvement of the MSCI ESG Rating against that of the Parent Index.
HSBC Bloomberg Global Sustainable Aggregate 1-3 Year Bond UCITS ETF
8
The investment objective of the Fund is to replicate the performance of the Bloomberg MSCI Global Aggregate 1-3 SRI Carbon ESG-Weighted Index (the "Index"), while minimising as far as possible the tracking error between the Fund’s performance and that of the Index.

The Index tracks the performance of investment grade fixed rate debt securities maturing in 1 to 3 years, from both developed and emerging markets issuers and seeks to achieve a reduction in carbon emissions and an improvement of the MSCI ESG rating against that of the Bloomberg Global Aggregate 1-3 Year Index (the “Parent Index”).

As further detailed in the "Index Description" section of the Supplement, the Index achieves this by removing, on a monthly basis, securities based on sustainability exclusionary criteria. The following types of issuers are removed from the Index on an ongoing basis due to the sustainability exclusionary criteria and some criteria may apply thresholds:

Issuers with MSCI ESG Ratings lower than BB, issuers with an ESG Pillar score of less than 2, unrated issuers from sectors with ratings. The index also negatively screens issuers that are involved in business activities that are restricted because they are inconsistent with certain values-based business involvement criteria, including activities with high carbon intensity or related to controversial weapons, and those issuers with a “red” MSCI ESG Controversy Score.

The weight of each constituent issuer is adjusted by a fixed multiplier, as set out in the index methodology, which is determined by its MSCI ESG Rating.

The Index seeks to achieve a reduction in carbon emissions and an improvement of the MSCI ESG rating against that of the Parent Index.
HSBC Bloomberg Global Sustainable Government Bond UCITS ETF
8
The investment objective of the Fund is to replicate the performance of the Bloomberg MSCI Global Treasury ESG Weighted Bond (USD unhedged) Index (the "Index"), while minimising as far as possible the tracking error between the Fund’s performance and that of the Index.

The Index tracks the performance of investment grade, fixed-rate, taxable securities issued by government and government-related issuers. The benchmark uses ESG sovereign scores to tilt country allocations above or below their market value weights in the Bloomberg Global Aggregate Treasury Index (the "Parent Index"). As further detailed in the "Index Description" section of the Supplement, the Index achieves this by, on a monthly basis, using fixed multipliers to adjust the weight of each eligible security in the Index above or below their market value weights in the Parent Index. Security weights are then normalized using these adjusted market valued. The weight of each index eligible security is adjusted by a fixed multiplier which is determined by the market value weight the issuing country holds within the Parent Index, along with its ESG Sovereign Score (0-10) (based on data from MSCI ESG Research). Countries must have a country score over 5 before they can be included in the Index. The MSCI ESG Sovereign Scores are determined based on an assessment of a country's exposure to and management of ESG risks. Efficiency of resource utilisation, performance on socio-economic factors, financial management, corruption control, political stability and other factors define the parameters for measuring a country’s ESG risk management.

The Index uses ESG sovereign scores to tilt country allocations above or below their market value weights in the Parent Index. Countries must have a country score over 5 before they can be included in the Index. The MSCI ESG Sovereign Scores are determined based on an assessment of a country's exposure to and management of ESG risks. Efficiency of resource utilisation, performance on socio-economic factors, financial management, corruption control, political stability and other factors define the parameters for measuring a country’s ESG risk management.
HSBC Bloomberg USD Sustainable Corporate Bond UCITS ETF
8
The investment objective of the Fund is to replicate the performance of the Bloomberg MSCI US Corporate SRI Carbon ESG-Weighted (USD Unhedged) Index (the "Index"), while minimising as far as possible the tracking error between the Fund’s performance and that of the Index.

The Index tracks the performance of fixed-rate, investment grade debt securities issued by corporate issuers and seeks to achieve a reduction in carbon emissions and an improvement of the MSCI ESG rating against that of the Bloomberg US Aggregate Corporate Index (the “Parent Index”). As further detailed in the "Index Description" section of the Supplement, the Index achieves this by removing, on a monthly basis, securities based on sustainability exclusionary criteria. The following types of issuers are removed from the Index on an ongoing basis due to the sustainability exclusionary criteria and some criteria may apply thresholds:

Issuers with MSCI ESG Ratings lower than BB, issuers with an ESG Pillar score of less than 2, unrated issuers from sectors with ratings. The index also negatively screens issuers that are involved in business activities that are restricted because they are inconsistent with certain values-based business involvement criteria, including activities with high carbon intensity or related to controversial weapons, and those issuers with a “red” MSCI ESG Controversy Score.

The weight of each constituent issuer is adjusted by a fixed multiplier, as set out in the index methodology, which is determined by its MSCI ESG Rating.

The Index seeks to achieve a reduction in carbon emissions and an improvement of the MSCI ESG Rating against that of the Parent Index.
HSBC Developed World Sustainable Equity UCITS ETF
8
The investment objective of the Fund is to replicate the performance of the FTSE Developed ESG Low Carbon Select Index (the “Index”), while minimising as far as possible the tracking error between the Fund’s performance and that of the Index. The Index is a subset of the FTSE Developed Index (the “Parent Index”) and aims to measure the performance of companies in developed countries as defined by the Index Provider. As further detailed in the “Index Description” section of the Supplement, on an annual basis, the Index Provider applies sustainable exclusionary criteria and weights companies in order to reduce the exposure in the Index to companies with higher carbon emissions and fossil fuel reserves and to improve the exposure in the Index to comply with favourable FTSE Russell environmental, social and governance ("ESG") ratings compared to that of the Parent Index. In addition, the United Nations Global Compact (UNGC) exclusionary criteria are applied to the Index on a quarterly basis (i.e. on each rebalancing date). The Index seeks to achieve a reduction in carbon emissions and fossil fuel reserves exposure and an improvement of the FTSE Russell ESG rating against that of the Parent Index.
HSBC Emerging Market Sustainable Equity UCITS ETF
8
The investment objective of the Fund is to replicate the performance of the FTSE Emerging Markets ESG Low Carbon Select Index (the “Index”), while minimising as far as possible the tracking error between the Fund’s performance and that of the Index. The Index is a subset of the FTSE Emerging Index (the “Parent Index”) and aims to measure the performance of companies in emerging markets as defined by the Index Provider. As further detailed in the “Index Description” section of the Supplement, on an annual basis, the Index Provider applies sustainable exclusionary criteria and weights companies in order to reduce the exposure in the Index to companies with higher carbon emissions and fossil fuel reserves and to improve the exposure in the Index to comply with favourable FTSE Russell environmental, social and governance ("ESG") ratings compared to that of the Parent Index. In addition, the United Nations Global Compact (UNGC) exclusionary criteria are applied to the Index on a quarterly basis (i.e. on each rebalancing date). The Index seeks to achieve a reduction in carbon emissions and fossil fuel reserves exposure and an improvement of the FTSE Russell ESG rating against that of the Parent Index.
HSBC Europe Sustainable Equity UCITS ETF
8
The investment objective of the Fund is to replicate the performance of the FTSE Europe ESG Low Carbon Select Index (the “Index”), while minimising as far as possible the tracking error between the Fund’s performance and that of the Index. The Index is a subset of the FTSE Developed Europe Index (the “Parent Index”) and aims to measure the performance of companies in developed countries in Europe as defined by the Index Provider. As further detailed in the “Index Description” section of the Supplement, on an annual basis, the Index Provider applies sustainable exclusionary criteria and weights companies in order to reduce the exposure in the Index to companies with higher carbon emissions and fossil fuel reserves and to improve the exposure in the Index to comply with favourable FTSE Russell environmental, social and governance ("ESG") ratings compared to that of the Parent Index. In addition, the United Nations Global Compact (UNGC) exclusionary criteria are applied to the Index on a quarterly basis (i.e. on each rebalancing date). The Index seeks to achieve a reduction in carbon emissions and fossil fuel reserves exposure and an improvement of the FTSE Russell ESG rating against that of the Parent Index.
HSBC Global Funds ICAV - Global Sustainable Government Bond Index Fund
8
The investment objective of the Sub-Fund is to achieve regular income and capital growth by tracking the performance of the Bloomberg MSCI Global Treasury ESG Weighted Bond Index (total return hedged to USD), while minimising as far as possible the Tracking Error between the HSBC Global Funds ICAV - Global Sustainable Government Bond Index Fund’s performance and that of the Index. The Bloomberg MSCI Global Treasury ESG Weighted Bond Index measures investment grade, fixed-rate, taxable securities issued by treasury issuers. The benchmark uses environmental, social and governance (ESG) sovereign scores to tilt country allocations above or below their market value weights in the Parent Index - the Bloomberg Global Aggregate Treasuries Index Sustainability indices include only best-in-class MSCI ESG rated issuers. The indices apply a positive screen on existing Bloomberg Indices based on MSCI ESG ratings, including only issuers who are best managing their ESG risks.
HSBC Global Investment Funds (GIF) Global Equity Climate Change
8
The sub-fund aims to provide long term total return by investing in companies that may benefit from the transition to a low carbon economy, while promoting ESG characteristics within the meaning of Article 8 of SFDR. The sub-fund aims to do this with a lower carbon intensity and a higher environmental, social and governance (“ESG”) rating, calculated respectively as a weighted average of the carbon intensities and ESG ratings given to the issuers of the sub-fund’s investments, than the weighted average of the constituents of the MSCI AC World Net index. The sub-fund invests in normal market conditions a minimum of 70% of its net assets in equities and equity equivalent securities of companies with revenue exposure to climate transition themes (“Climate Transition Themes”) which are domiciled in, based in, carry out business activities in, or are listed on a Regulated Market in, any country including both developed markets and Emerging Markets. The sub-fund may also invest in eligible closed-ended Real Estate Investment Trusts (“REITs”).

Climate Transition Themes may include, but are not limited to, renewable energy, energy efficiency, clean transportation and green buildings. Climate Transition Themes are proprietary to HSBC, determined with reference to the eligible activities of the Green Bond Principles of the International Capital Market Association and the Climate Bonds Taxonomy of the Climate Bonds Initiative, subject to ongoing research and may change over time as new themes are identified. The Investment Adviser may rely on its own research to identify suitable companies meeting a minimum revenue exposure threshold to Climate Transition Themes. The minimum revenue exposure threshold will depend on the specific Climate Transition Theme but will be at least 10% of the relevant company’s total revenue.
This fund does not track an index.
HSBC Global Investment Funds (GIF) Global Equity Sustainable Healthcare
8
The sub-fund aims to provide long term total return by investing in a concentrated portfolio of equities of companies that may benefit from increasingly constrained healthcare budgets world-wide, while promoting ESG characteristics within the meaning of Article 8 of SFDR.

The sub-fund aims to do this by investing in companies with revenue exposure to innovative sustainable healthcare themes and products which have the potential to improve value for money of healthcare spending (“Sustainable Healthcare Themes and Products”). The sub-fund’s aims are aligned with goal three of the UN Sustainable Development Goals, which is a social goal focused on good health and well-being.
The sub-fund will invest a minimum of 80% of its net assets in equities and equity equivalent securities of companies with at least two thirds of their revenues derived from Sustainable Healthcare Themes and Products, which are domiciled in, based in, carry out business activities in, or are listed on a Regulated Market in, any country including both developed and Emerging Markets. Sustainable Healthcare Themes and Products may include, but are not limited to, drugs which help reduce the days a patient spends in an intensive care unit, diagnostic tests which enable early detection and treatment, disease prevention, operational improvements and deployment of technology.

Fundamental analysis of the healthcare sector and sub-sectors is undertaken to identify companies that present an investment opportunity. Following this, proprietary analysis of each identified company is undertaken to assess exposure to Sustainable Healthcare Themes and Products. This generates a sustainable healthcare score based on a combination of clinical benefits and cost savings. These scores are used, together with consideration of ESG characteristics, to define the sub-fund’s eligible investment universe. When assessing companies’ sustainable healthcare score and ESG characteristics, the Investment Adviser may rely on expertise, research and information provided by well-established financial data providers (when available) and/or its own proprietary research.
This fund does not track an index.
HSBC Global Investment Funds (GIF) Global ESG Corporate Bond
8
The sub-fund aims to provide long term total return by investing in a portfolio of corporate bonds seeking a higher environmental, social and governance (“ESG”) rating and lower carbon intensity, than its reference benchmark Bloomberg Barclays Global Aggregate Corporates Diversified Index Hedged USD (the “Reference Benchmark”), while promoting ESG characteristics within the meaning of Article 8 of SFDR. The sub-fund invests in normal market conditions a minimum of 70% of its net assets in:

- Investment Grade rated fixed income and other similar securities issued by companies meeting certain ESG rating and lower carbon intensity criteria (“ESG and Lower Carbon Criteria”). The sub-fund will invest in developed markets. Investments will be primarily denominated in developed market currencies. The sub-fund may also invest up to 10% of its net assets in Emerging Market bonds.

- Asset Backed Securities (“ABS”) and Mortgage Backed Securities (“MBS”) up to a maximum of 20% of the sub-fund's net assets.
This sub-fund does not track an index.
HSBC Global Investment Funds (GIF) Global High Yield ESG Bond
8
The sub-fund invests for total return primarily in a diversified portfolio of Non-Investment Grade and unrated fixed income securities either issued by companies or issued or guaranteed by governments, government agencies, quasi-government entities, state sponsored enterprises, local or regional governments (including state, provincial, and municipal governments and governmental entities) and supranational bodies in both developed and Emerging Markets and denominated in or hedged into United States Dollars (USD), while promoting ESG characteristics within the meaning of Article 8 of SFDR. Under normal market conditions, a minimum of 70% of the sub-fund’s net assets will be invested in Non-Investment Grade rated and other higher yielding securities (including unrated bonds) issued by issuers meeting certain ESG rating and lower carbon intensity criteria (“ESG and Lower Carbon Criteria”). This sub-fund does not track an index.
HSBC Global Investment Funds (GIF) Global Lower Carbon Bond
8
The sub-fund aims to provide long term total return by investing in a portfolio of corporate bonds, while promoting ESG characteristics within the meaning of Article 8 of SFDR. The sub-fund aims to do this with a lower carbon intensity calculated as a weighted average of the carbon intensities of the sub-fund’s investments, than the weighted average of the constituents of the Bloomberg Barclays Global Aggregate Corporate Diversified Index Hedged USD (the “Reference Benchmark”). The sub-fund invests (normally a minimum of 70% of its net assets) in Investment Grade and Non-Investment Grade rated fixed income and other similar securities issued by companies meeting certain lower carbon criteria (“Lower Carbon Criteria”). The sub-fund will invest in both developed markets and Emerging Markets. Investments will be denominated in developed market and Emerging Market currencies.

Lower Carbon Criteria may include, but are not limited to:
- excluding companies with a carbon intensity above the weighted average of the constituents of the Reference Benchmark; and
- excluding companies with high carbon intensity relative to their sector; and
- excluding companies with insufficient data to establish their carbon intensity; and
- including “green bonds” meeting the Green Bond Principles of the International Capital Market Association. Such green bonds are not subject to the aforementioned exclusions.
This fund does not track an index.
HSBC Global Investment Funds (GIF) Global Lower Carbon Equity
8
The sub-fund aims to provide long-term total return by investing in a portfolio of equities, while promoting ESG characteristics within the meaning of Article 8 of SFDR. The sub-fund aims to do this with a lower carbon intensity, calculated as a weighted average of the carbon intensities of the sub-fund’s investments, than the weighted average of the constituents of the MSCI World Net Index (the “Reference Benchmark”). In order to lower the exposure to carbon intensive businesses, all stocks in the portfolio are assessed for their carbon intensity. A proprietary systematic investment process is then used to create a portfolio which maximizes the exposure to the higher ranked stocks and which aims for a lower carbon intensity, calculated as a weighted average of the carbon intensities of the sub-fund’s investments, than the weighted average of the constituents of the Reference Benchmark. This fund does not track an index.
HSBC Japan Sustainable Equity UCITS ETF
8
The investment objective of the Fund is to replicate the performance of the FTSE Japan ESG Low Carbon Select Index (the “Index”), while minimising as far as possible the tracking error between the Fund’s performance and that of the Index. The Index is a subset of the FTSE Japan Index (the “Parent Index”) and aims to measure the performance of companies in Japan as defined by the Index Provider. As further detailed in the “Index Description” section of the Supplement, on an annual basis, the Index Provider applies sustainable exclusionary criteria and weights companies in order to reduce the exposure in the Index to companies with higher carbon emissions and fossil fuel reserves and to improve the exposure in the Index to comply with favourable FTSE Russell environmental, social and governance ("ESG") ratings compared to that of the Parent Index. In addition, the United Nations Global Compact (UNGC) exclusionary criteria are applied to the Index on a quarterly basis (i.e. on each rebalancing date). The Index seeks to achieve a reduction in carbon emissions and fossil fuel reserves exposure and an improvement of the FTSE Russell ESG rating against that of the Parent Index.
HSBC MSCI JAPAN CLIMATE PARIS ALIGNED UCITS ETF
8
The investment objective of the Fund is to replicate the performance of the MSCI Japan Climate Paris Aligned Index (the “Index”), which has a focus on sustainable investment considerations aligned with the Paris Agreement and excludes companies involved in certain business activities, while minimising as far as possible the tracking error between the Fund’s performance and that of the Index. The MSCI Japan Climate Paris Aligned Index is an index constructed from the MSCI Japan Index and includes large and midcap securities of the Japanese equity markets. The index is designed to support investors seeking to reduce their exposure to transition and physical climate risks and who wish to pursue opportunities arising from the transition to a lower-carbon economy while aligning with the Paris Agreement requirements. The MSCI Climate Paris Aligned Indexes are designed to address climate change in a holistic way by minimizing exposure to transition & physical climate risks and aim to help investors seeking to align with a net-zero world. The index is designed to support investors seeking to reduce their exposure to transition and physical climate risks and who wish to pursue opportunities arising from the transition to a lower-carbon economy while aligning with the Paris Agreement requirements.
HSBC MSCI World Climate Paris Aligned UCITS ETF
9
The investment objective of the Fund is to replicate the performance of the MSCI World Climate Paris Aligned Index (the “Index”), which has a focus on sustainable investment considerations aligned with the Paris Agreement and excludes companies involved in certain business activities, while minimising as far as possible the tracking error between the Fund’s performance and that of the Index. The Index is based on the MSCI World Index, its parent index, and includes large and midcap securities across 23 Developed Markets countries. The Index is designed to support investors seeking to reduce their exposure to transition and physical climate risks and who wish to pursue opportunities arising from the transition to a lower carbon economy while aligning with the Paris Agreement requirements. The index incorporates the Task Force on Climate-related Financial Disclosures recommendations and is designed to exceed the minimum standards of the EU Paris-Aligned Benchmark. The MSCI Climate Paris Aligned Indexes are designed to address climate change in a holistic way by minimizing exposure to transition & physical climate risks and aim to help investors seeking to align with a net-zero world. The index is designed to support investors seeking to reduce their exposure to transition and physical climate risks and who wish to pursue opportunities arising from the transition to a lower-carbon economy while aligning with the Paris Agreement requirements.
HSBC MSCI USA Climate Paris Aligned UCITS ETF
9
The investment objective of the Fund is to replicate the performance of the MSCI USA Climate Paris Aligned Index (the “Index”), which has a focus on sustainable investment considerations aligned with the Paris Agreement and excludes companies involved in certain business activities, while minimising as far as possible the tracking error between the Fund’s performance and that of the Index. The Index is based on the MSCI USA Index, its parent index, and includes large and mid-cap securities of the U.S. equity markets. The Index is designed to support investors seeking to reduce their exposure to transition and physical climate risks and who wish to pursue opportunities arising from the transition to a lower-carbon economy while aligning with the Paris Agreement requirements. The index incorporates the Task Force on Climate-related Financial Disclosures recommendations and is designed to exceed the minimum standards of the EU Paris-Aligned Benchmark. The MSCI Climate Paris Aligned Indexes are designed to address climate change in a holistic way by minimizing exposure to transition & physical climate risks and aim to help investors seeking to align with a net-zero world. The index is designed to support investors seeking to reduce their exposure to transition and physical climate risks and who wish to pursue opportunities arising from the transition to a lower-carbon economy while aligning with the Paris Agreement requirements.
HSBC MSCI Europe Climate Paris Aligned UCITS ETF
9
The investment objective of the Fund is to replicate the performance of the MSCI Europe Climate Paris Aligned Index (the “Index”), which has a focus on sustainable investment considerations aligned with the Paris Agreement and excludes companies involved in certain business activities, while minimising as far as possible the tracking error between the Fund’s performance and that of the Index. The Index is based on the MSCI Europe Index, its parent index, and includes large and mid-cap securities across 15 Developed Markets in Europe. The Index is designed to support investors seeking to reduce their exposure to transition and physical climate risks and who wish to pursue opportunities arising from the transition to a lower-carbon economy while aligning with the Paris Agreement requirements. The Index incorporates the Task Force on Climate-related Financial Disclosures recommendations and is designed to exceed the minimum standards of the EU Paris-Aligned Benchmark. The MSCI Climate Paris Aligned Indexes are designed to address climate change in a holistic way by minimizing exposure to transition & physical climate risks and aim to help investors seeking to align with a net-zero world. The index is designed to support investors seeking to reduce their exposure to transition and physical climate risks and who wish to pursue opportunities arising from the transition to a lower-carbon economy while aligning with the Paris Agreement requirements.
HSBC Real Economy Green Investment Opportunity Global Emerging Market Fund (REGIO)
9
To enable investors to align their financial objectives with real economy impact and further the aims and objectives of the Paris Agreement and the UN Sustainable Development Goals, which seek to address climate change and other sustainability outcomes.

To provide attractive risk adjusted returns by investing in a diversified portfolio primarily comprised of Eligible Green Bonds and Other Bonds, principally issued by corporate issuers, on a buy-and-maintain basis.
The Fund will target positive environmental impacts by investing in Eligible Green Bonds. When making investment decisions on behalf of the Fund, the Portfolio Manager will use a robust investment process, including the Green Impact Investment Guidelines, a clear framework for identifying eligible activities for the use of proceeds. The Green Impact Investment Guidelines require (amongst other things) a use of proceeds aligned with at least one of the UN Sustainable Development Goals. The guidelines also contain requirements relating to alignment with the Green Bond Principles.

During the Investment Period, the Fund will invest in Eligible Green Bonds and Other Bonds. Although the Portfolio Manager will seek to invest in Eligible Green Bonds from the launch of the Fund, it is expected that, initially, the Fund will predominantly invest in Other Bonds. Over time, the Portfolio Manager will seek to sell Other Bonds from the Portfolio in order to fund the acquisition of Eligible Green Bonds, with a view to transition to a Portfolio fully invested in Eligible Green Bonds by the end of the Investment Period.
This fund does not track an index.
HSBC Sterling ESG Liquidity Fund
8
To provide investors with security of capital and daily liquidity together with an investment return which is comparable to normal Sterling denominated money market interest rates while considering select environmental, social and governance criteria. The Investment Manager shall promote among other characteristics, environmental and social characteristics and invest in issuers following good governance practices. The Investment Manager shall seek to identify issuers that are considered by the Investment Manager to be better at addressing ESG risks than other issuers in the investable universe, an approach often referred to as "best in class". This sub-fund does not track an index.
HSBC UK Sustainable Equity UCITS ETF
8
The investment objective of the Fund is to replicate the performance of the FTSE UK ESG Low Carbon Select Index (the “Index”), while minimising as far as possible the tracking error between the Fund’s performance and that of the Index. The Index is a subset of the FTSE UK ESG Low Carbon Select Index (the “Parent Index”) and aims to measure the performance of companies in the United States as defined by the Index Provider. As further detailed in the “Index Description” section of the Supplement, on an annual basis, the Index Provider applies sustainable exclusionary criteria and weights companies in order to reduce the exposure in the Index to companies with higher carbon emissions and fossil fuel reserves and to improve the exposure in the Index to comply with favourable FTSE Russell environmental, social and governance ("ESG") ratings compared to that of the Parent Index. In addition, the United Nations Global Compact (UNGC) exclusionary criteria are applied to the Index on a quarterly basis (i.e. on each rebalancing date). The Index seeks to achieve a reduction in carbon emissions and fossil fuel reserves exposure and an improvement of the FTSE Russell ESG rating against that of the Parent Index.
HSBC USA Sustainable Equity UCITS ETF
8
The investment objective of the Fund is to replicate the performance of the FTSE USA ESG Low Carbon Select Index (the “Index”), while minimising as far as possible the tracking error between the Fund’s performance and that of the Index. The Index is a subset of the FTSE USA Index (the “Parent Index”) and aims to measure the performance of companies in the United States as defined by the Index Provider. As further detailed in the “Index Description” section of the Supplement, on an annual basis, the Index Provider applies sustainable exclusionary criteria and weights companies in order to reduce the exposure in the Index to companies with higher carbon emissions and fossil fuel reserves and to improve the exposure in the Index to comply with favourable FTSE Russell environmental, social and governance ("ESG") ratings compared to that of the Parent Index. In addition, the United Nations Global Compact (UNGC) exclusionary criteria are applied to the Index on a quarterly basis (i.e. on each rebalancing date). The Index seeks to achieve a reduction in carbon emissions and fossil fuel reserves exposure and an improvement of the FTSE Russell ESG rating against that of the Parent Index.

Bespoke solutions

Bespoke Product Name
SFDR Category (Art. 8 or 9)* Environmental/social characteristics or sustainable investment objective
How the environmental/social characteristics or the sustainable investment objective is met?
How the index is aligned with the environmental/social characteristics, or the sustainable investment objective? Why and how the index used differs from a broad market index?
Product managed to a low ESG score
8
The primary investment objective is to provide a "low turnover" portfolio within the investment guidelines with no credit downgrades during the holding period. The Manager shall aim to use cash flows (e.g. cash injections, maturities, coupon receipts) efficiently from a Solvency 11 perspective by improving the bond yield to Solvency Capital Requirement Spread of the fixed income portfolio. The portfolio is managed to keep the weighted average HSBC proprietary ESG score above an agreed level. This fund does not track an index.
Product with a low Carbon Emissions investment strategy
8
Outperform the MSCI All Country World Index Benchmark by 1% per annum (gross) over the medium term. Build a portfolio that has Carbon Emissions Intensity scope 1 and scope 2 emissions intensity 35% (measured by Trucost) or 30% (measured by MSCI) below the Benchmark while maintaining at least the same (or better) ESG risk rating (Sustainalytics) or ESG score (MSCI (MSCI ACWI NR). The 35%/30% target is subject to change over time. Target market beta of 1 to the Benchmark. We employ an active, multi-factor approach with ESG integration in the management of this mandate.  Our systematic equity platform is flexible and may accommodate client-driven exclusions that could include ESG score targets and tilts, as well as explicit carbon reduction targets and measurement of portfolio carbon intensity. We combine our ESG expertise with our quantitative research to deliver custom solutions for clients via our proprietary platform, the design of our proprietary risk model and optimisation engine enables us to identify data for inclusion within our investment process. The index is a broad equity market index and is one of the market regarded representations of a diversified universe of global equities - MSCI All Country World Index.  This index is not customised by ESG characteristics but depicts the unconstrained market reference to which the investment objectives of marginal lower carbon intensity is measured relative to.

¹ Article 8 Product = A financial product promotes, among other characteristics, environmental or social characteristics, or a combination of those characteristics, provided that the companies in which the investments are made follow good governance practices
² Article 9 Product = A financial product which has sustainable investment as its objective and an index has been designated as a reference benchmark

Risk Warning
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. Where overseas investments are held the rate of currency exchange may also cause the value of such investments to fluctuate.