HSBC Asset Management has expanded its climate ETF range with the launch of a Japanese equities strategy.
The HSBC Japan Climate Paris Aligned UCITS ETF (HPJP) is listed on the London Stock Exchange with a total expense ratio of 0.18%.
HPJP will track the MSCI Japan Climate Paris Aligned index which consists of 171 large and mid-cap companies that benefit from the transition to a lower-carbon economy while being linked to the European Union’s Paris-Aligned Benchmark (PAB).
The ETFs target a carbon intensity reduction of 50% with a 20% higher weight to companies setting transition risk targets.
Companies that generate at least 1% of revenues from thermal coal mining, 10% of revenues from oil and gas or 50% revenues from power generation from thermal coal, oil or gas will be excluded.
Olga de Tapia, global head of ETF sales at HSBC AM said: “We’re pleased to offer additional building blocks in this strategy to help investors build diversified sustainable investment portfolios.
"With an increased focus globally to achieve the goals set out in the Paris Agreement, the launch of our fourth Paris aligned ETF is an important step in ensuring investment portfolios achieve net-zero emissions by 2050.”
The launch takes HSBC AM’s range of climate ETFs to four after it unveiled two tracking US and European equities in August. The firm’s first climate ETF launched in July.
The other three ETFs are:
