HSBC Asset Management has launched two Paris-aligned climate ETFs offering exposure to US and European equities.

The HSBC MSCI USA Climate Paris Aligned UCITS ETF (HPAU) and the HSBC MSCI Europe Climate Paris Aligned UCITS ETF (HPAE) are listed on the total expense ratio (TER) of 0.12% and 0.15%, respectively.

The two ETFs track the respective MSCI Climate Paris Aligned indices which are linked to the European Union’s Paris-Aligned Benchmark (PAB).

The ETFs target a carbon intensity reduction of 50% versus the parent universe and an annual decarbonisation rate of 7%, in line with the aims of the Paris Agreement.

Olga De Tapia (pictured), global head of ETF sales at HSBC AM, commented: “We are pleased to offer additional building blocks in this strategy to help investors build diversified sustainable investment portfolios.”

Climate change ETFs: A year of dramatic development

Earlier this month, the UK asset manager launched its first climate ETF, the HSBC MSCI World Climate Paris Aligned UCITS ETF (HPAW), which is also linked to the PAB.

Competition in the space is hotting up. Earlier this week, BlackRock unveiled two climate ETFs, the iShares MSCI EMU Paris-Aligned Climate UCITS ETF (EMPA) and the iShares MSCI Europe Paris Aligned UCITS ETF (EUPB), which also track indices aligned with the PAB.

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