HSBC Asset Management has launched its first Global Transition Infrastructure Debt strategy, a new investment initiative aimed at financing infrastructure assets that support the transition to a net-zero economy. This strategy focuses on key sectors including clean power, energy efficiency, and clean industry. With over $240 million in client commitments already secured, HSBC AM’s new strategy is set to channel funds into infrastructure projects and corporations that are instrumental in reducing greenhouse gas emissions and advancing global efforts towards net-zero by 2050. The strategy targets loans for mid-market borrowers in Europe, North America, and the APAC region, primarily focusing on infrastructure projects that contribute to significant emissions reductions. Sectors of interest for the fund include renewable energy, critical minerals and metals necessary for renewable energy production, electricity storage, distribution, and transmission, as well as carbon capture and storage facilities. HSBC AM intends to engage with borrowers on ESG (Environmental, Social and Governance) and debt issues, ensuring a thorough evaluation of their sustainability obligations. The investment team engages with investors at least annually to assess their progress in relation to ESG goals and their investments in a zero-emissions approach.
This commitment is to maintain the highest standards of environmental responsibility and integrity among applicants. Scott McClurg, head of private debt at HSBC Asset Management, emphasized the importance of infrastructure investment to achieve future liquidity. He said: “We believe in the important role of a large and sustainable investment in infrastructure in the transition to freedom.” Our global credit strategy allows us to access and benefit from the transition to a sustainable global economy, and helps our customers to deliver returns. The Global Transition Infrastructure Finance Strategy is a key step in HSBC AM’s commitment to support the global transition to a more sustainable economy, combining financial results and impact. good of the environment.