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HSBC Asset Management launches Climate Technology ETF in partnership with Nasdaq: HNCT LN

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HSBC Asset Management (HSBC AM) has launched its Climate Technology ETF in partnership with Nasdaq.

The HSBC Nasdaq Global Climate Tech UCITS ETF, listed on the London Stock Exchange, will track the Nasdaq CTA Global Climate Technology Index to offer investors broad exposure to the climate technology ecosystem through a bespoke and future-focused thematic taxonomy developed by the Consumer Technology Association (CTA) and Nasdaq. The firm writes that this launch builds upon HSBC AM’s commitment to facilitate investor access to climate-aware investment products to help incorporate climate considerations into investment portfolios.

HSBC AM, Nasdaq and CTA have worked in partnership to develop an index comprised of 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.

Assessment for inclusion in the index is underpinned by rigorous 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.

Olga de Tapia, Global Head of ETF & Indexing Sales, HSBC Asset Management, says: “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.

“The launch of our new 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.”

“At the intersection of capital markets and technology, Nasdaq is uniquely positioned to develop innovative index methodologies that align with global regulatory frameworks focused on advancing sustainability,” says Cameron Lilja, Vice President and Head of Index Product and Operations at Nasdaq. “In partnership with CTA and HSBC AM, we’re excited to create expanded access to climate- aware investment products.”

The launch bolsters HSBC AM’s commitment to investing in innovative technologies that support the transition to a net zero economy. It follows the launch of its Climate Tech Venture Capital strategy which provides clients with opportunities to invest in early-stage technology start-ups seeking to accelerate the de-carbonisation and de-pollution of industries, as well as HSBC’s plans to allocate USD1 billion of financing to support climate tech companies.

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