What is sustainable or "ESG" (Environmental, Social and Governance) investing?

In recent years the investment industry, and in turn investors, have introduced a new gauge: ESG – Environment, Social and Governance – as a supplement to traditional financial gauges.

What kind of ESG products can you invest in?

Unit trusts

List of related unit trusts
Unit Trust name Code Currency Risk Level
Fund details
HSBC GIF Lower Carbon Bond U62869
USD 1 Click here
HSBC GIF Lower Carbon Equity
U62867
USD 4 Click here
Schroder ISF Climate Change Equity
U62269
USD 4 Click here
List of related unit trusts
Unit Trust name HSBC GIF Lower Carbon Bond
Code U62869
Currency USD
Risk Level
1
Fund details
Click here
Unit Trust name HSBC GIF Lower Carbon Equity
Code U62867
Currency USD
Risk Level
4
Fund details
Click here
Unit Trust name Schroder ISF Climate Change Equity
Code U62269
Currency USD
Risk Level
4
Fund details
Click here

Why does it matter?

ESG changes are happening faster than ever, reshaping how people live and invest. We believe that ESG factors are going increasingly mainstream and can be used to drive investment outperformance.

Examples of common ESG issues

English letter E with a leaf icon

Environmental

  • Climate change impact
  • Air and Water pollution
  • Waste management
  • Energy efficiency
  • Water scarcity
English letter S with a society icon

Social

  • Human rights
  • Consumer privacy
  • Gender equality
  • Data security
  • Health & safety
English letter G with a building icon

Governance

  • Board structure
  • Company ownership
  • Financial reporting
  • Business ethics & culture
  • Executive remuneration