HSBC today launched a reporting service that provides asset owners and managers with independent measurement of how focused their listed asset investments are on environmental, social and corporate governance (ESG) issues.
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The new service will allow asset owners, such as insurance companies, pension funds and sovereign wealth funds, and the asset managers that invest their money, to keep track of the ESG ratings of their large holdings and help them meet the increasing demand for greater transparency and more insight in this area.
HSBC is recognised as a leading partner in the transition to a low-carbon world. In 2017, the bank pledged to provide USD100 billion of financing and investments by 2025 and is consistently top ranked globally for green, social and sustainable bonds and ESG Research.
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“ESG is rising up the agenda for our clients, regulators and investors alike. This reporting service will enable our Securities Services clients to gain meaningful insights into ESG aspects of their portfolios using independent scores and ratings,” said Chris Johnson, Director of Market Data for Securities Services at HSBC. “This tool will enable Securities Services clients to see at a glance how large holdings in their selected portfolios are performing using recognised independent ESG criteria.”
The reporting service will consist of a monthly reporting dashboard, including portfolio-level analysis using ESG ratings, and carbon emissions data.
The reporting service will use ESG scores and ratings from leading ESG rating providers MSCI, Sustainalytics and Vigeo Eiris, and can be applied equally to specialist ESG and non-ESG portfolios. The bank plans to increase its list of providers over time.
“We expect this product to appeal to asset owners who are seeking independent reporting on the ESG profile of their investments. It will enable them to discuss ESG aspects of large positions in their funds with their managers,” said Johnson. “Asset manager clients, who already have an in-house ESG capability, could use the report to compare with their own research.”
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