HSBC has rolled out a new ESG-themed structured note for private banking clients in Asia as part of its broad suite of wealth products with more specific investment themes within the environmental, social and governance universe.

The new product is aimed at enabling high net worth clients in Hong Kong and Singapore to add ESG dimensions to their preferred investments without changing their financial objectives. The note carries a basket of securities that rate in the top 50% in their respective industries based on the Sustainalytics ESG Risk Ratings.

Investors can opt for underlying securities of various thematic sectors such as technology, payment solutions, consumption and semiconductors, with investment periods ranging from one to five years.

Proceeds of the ESG-themed structured product will go towards financing eligible businesses and projects that promote the transition to a low-carbon, climate-resilient and sustainable economy and provide clear environmental sustainability benefits as defined by the HSBC Green Bond Framework.

Antony Shaw, global head of emerging markets and wealth sales, HSBC markets and securities services, says: “Investors are placing greater importance on ESG factors in their investment decisions, and they increasingly view companies’ sustainability credentials as a key indicator of their long-term value. To serve these investors we continue to innovate and diversify our wealth product offering, while promoting the transition to a sustainable, low-carbon economy.”

HSBC has pledged to provide up to US$1 trillion of finance and investment by 2030 to support its customers in the net zero transition. The bank says it has increasingly embedded sustainability into its products and services. In February 2021, it issued what it says are Asia’s first yuan-denominated retail green certificates of deposit in Hong Kong. In Singapore, HSBC has launched the HSBC GIF Global Equity Sustainable Healthcare Fund, which is its first healthcare fund focused on sustainability and impact.