HSBC MSCI Europe Climate Paris Aligned UCITS ETF

Issuer: HSBC

Asset Class: Equity

TER: 15bps

Trading Currency: GBP

Pays Income: False

Listing Date: 06 Aug 2021

Ticker: HPAE

ISIN: IE00BP2C0316

This fund offers a core European equity exposure with a strong focus on climate action, designed for investors who want to align their portfolio with the decarbonisation goals of the Paris Agreement. The strategy tracks a specific benchmark that systematically reduces exposure to carbon-intensive companies and increases allocation to those transitioning towards a lower-carbon economy or providing climate-friendly solutions. This dual approach of divesting from high-emitters and investing in green leaders makes it a targeted tool for environmentally conscious investors seeking to address climate risk in their portfolios.

The underlying index follows a clear, rules-based methodology to select and weight its constituents from a broad universe of European large and mid-cap stocks. It applies a series of screens based on climate-related criteria, excluding companies involved in controversial fossil fuels or those with significant carbon emissions relative to their peers. Furthermore, the index is constructed to achieve a substantial reduction in overall carbon intensity compared to its parent benchmark and is designed for a year-on-year self-decarbonisation pathway, ensuring the portfolio remains aligned with long-term climate targets.

By investing in this product, individuals can gain access to a diversified basket of leading European companies that are better positioned for the transition to a low-carbon world. This approach not only helps in mitigating climate-related risks within a portfolio but also offers the potential to capture opportunities arising from the global shift towards sustainability. It serves as a core holding for those looking to build a resilient, forward-looking portfolio that contributes to positive environmental change without sacrificing broad market exposure to the European region.