HSBC Asset Management has added to its suite of thematic ETF offerings with the launch of its Climate Technology ETF, in partnership with index provider Nasdaq.
The HSBC Nasdaq Global Climate Tech UCITS ETF will track the Nasdaq CTA Global Climate Technology Index, aiming to offer investors broad exposure to the climate technology ecosystem through a future-focused thematic technology developed by the Consumer Technology Associate (CTA) and Nasdaq.
“At HSBC AM, we see climate change as a global issue. Scalable technology solutions have a significant part to play in addressing some of the challenges associated with climate change and we believe thematic ETFs present an exciting way for investors to build climate tech exposure into their portfolios and access this crucial theme,” said Olga de Tapia, global head of ETF and indexing sales at HSBC AM.
“The launch of our Climate Tech ETF reinforces our commitment to the future development of climate-focused technology and enables us to continue to serve global investors seeking broad exposure to such technology and this exciting, forward-looking theme.”
HSBC AM, Nasdaq and CTA have developed an index comprised on companies looking to help facilitate climate transition and mitigate climate risk. The index spans key technologies that are creating a more sustainable future and support the transition, including power sources, power storage, infrastructure, agriculture and food technology, adaptation and fossil-free transportation.
According to the partners, assessment for inclusion in the index includes analysis of a variety of factors, such as market capitalisation, revenue, market share, patents and product launches. Each company is also scored according to its revenue share derived from climate technology and how the company’s own technology helps deliver on climate objectives such as carbon neutrality or net zero.
“In partnership with CTA and HSBC AM, we are excited to create expanded access to climate-aware investment products,” commented the vice president and head of index product and operations and Nasdaq, Cameron Lilja.
The launch follows that of HSBC AM’s climate tech venture capital strategy, which provides clients with opportunities to invest in early-stage technology start-ups seeking to accelerate the decarbonisation and depollution of industries, as well as HSBC’s plans to allocate $1bn of financing to support climate tech companies.