Report on Equity Portfolio Carbon Footprint

Transcription

1 Report on Equity Portfolio HSBC Global Asset Management 19 th April 2017 This presentation is intended exclusively towards qualified investors in the meaning of Art. 10 para 3, 3bis and 3ter of the Federal Collective Investment Schemes Act (CISA)

2 Report on Equity Portfolio The Montreal Carbon Pledge HSBC Global Asset Management (AMG) has signed the Montreal Carbon Pledge This is a commitment to measure and publicly disclose on an annual basis the carbon footprint of our clients investment portfolios What is a carbon footprint? A measurement of sum of greenhouse gas (GHG) emissions apportioned to the invested assets, per million USD revenue generated by the assets. The contribution of each security held to the total carbon footprint is calculated on an equity ownership basis. How did HSBC Global Asset Management calculate the carbon footprint? Scope of holdings analysed: we are measuring the consolidated footprint of all equity portfolios managed in London, Paris and Hong Kong. Date of holdings analysed: September 30, 2016 AMG used the data and model as provided by Trucost, which is recognised as one of the industryleading providers of this type of data and service. Additionally, the same model was applied to the extent possible, to analytics provided by alternate data providers, Southpole and MSCI. 2

3 Initial Findings Trucost analytics and model Absolute Emissions (tco2e) * Carbon Intensity/ Footprint Developed Emerging London managed 6,272, % 4.1% Paris managed 3,386, % 4.6% Hong Kong managed 5,723, % 60.8% Total of all portfolios 13,583, % 29.6% Source : Trucost Notes: HSBC Global Asset Management carbon emission and footprint results are based on the aggregated positions of many portfolios, with diverse investment objectives and restrictions. The sample includes portfolios invested in both developed and emerging markets, and those which are managed using both an active and a passive approach. Glossary * Absolute Emissions (tco2e) absolute quantity of emissions in metric tonnes of carbon. This includes: (i) Scope 1 (greenhouse gas emissions generated from burning fossil fuels and production processes which are owned or controlled by the company) (ii) Scope 2 emissions (greenhouse gas emissions from consumption of purchased electricity, heat or steam by the company) (iii) Other direct suppliers from Scope 3 (such as business travel). ** Carbon Intensity (tco2e/usd mn) at a company level, this is the ratio between direct and first tier emissions, divided by the company revenue; it expresses the carbon efficiency of the company in creating financial value (also known as Revenue Ratio ). The total Carbon Intensity ratio is based on the sum of the weighted average contribution of each held company 3

4 More about the results Source of analytics Source of Emissions Statistics used in the Footprint Model Issuer Coverage Weight Emission statistics based on company disclosed results 44% Issuers covered by Trucost 81% Emission statistics partially based on company disclosed results 26% Issuers not covered by Trucost 19% Emission statistics fully estimated 30% Total 100% Total 100% Source : Trucost Source : Trucost Notes Company carbon data can often be partially disclosed, i.e. partial geographic coverage, or incomplete operational data. Trucost undertake analysis and research to assess company reported results. The proprietary Trucost model enables as estimate of total emissions which rely on more than just reported financial data. Carbon emission and footprint results are based on Trucost covered securities only, i.e. 81% of the total managed portfolio value. 4

5 Detailed Findings : London managed portfolios Contribution *** Consumer Discretionary , Consumer Staples , Energy ,733, Financials , Health Care , Industrials , Information Technology , Materials ,317, Real Estate , Telecommunication Services , Utilities ,713,296 1, Total Portfolio ,272, Source : Trucost Glossary * Absolute Emissions (tco2e) absolute quantity of emissions in metric tonnes of carbon. This includes Scope 1,Scope 2 and other direct suppliers from Scope 3 ** Carbon Intensity (tco2e/usd mn) the ratio between direct and first tier emissions, divided by the company revenue *** Contribution sum of the effect of individual company holdings to the overall carbon intensity of the total portfolio. 5

6 Detailed Findings : Paris managed portfolios Contribution *** Consumer Discretionary , Consumer Staples , Energy , Financials , Health Care , Industrials , Information Technology , Materials ,227,827 1, Real Estate , Telecommunication Services , Utilities ,184 1, Total Portfolio ,386, Source : Trucost Glossary * Absolute Emissions (tco2e) absolute quantity of emissions in metric tonnes of carbon. This includes Scope 1,Scope 2 and other direct suppliers from Scope 3 ** Carbon Intensity (tco2e/usd mn) the ratio between direct and first tier emissions, divided by the company revenue *** Contribution sum of the effect of individual company holdings to the overall carbon intensity of the total portfolio. 6

7 Detailed Findings : Hong Kong managed portfolios Contribution *** Consumer Discretionary , Consumer Staples , Energy , Financials , Health Care , Industrials , Information Technology , Materials ,250,873 4, Real Estate , Telecommunication Services , Utilities ,114,786 8, Total Portfolio ,723, Source : Trucost Glossary * Absolute Emissions (tco2e) absolute quantity of emissions in metric tonnes of carbon. This includes Scope 1,Scope 2 and other direct suppliers from Scope 3 ** Carbon Intensity (tco2e/usd mn) the ratio between direct and first tier emissions, divided by the company revenue *** Contribution sum of the effect of individual company holdings to the overall carbon intensity of the total portfolio. 7

8 Detailed Findings : combined London, Paris, Hong Kong managed portfolios Contribution *** Consumer Discretionary , Consumer Staples , Energy ,690, Financials , Health Care , Industrials ,186, Information Technology , Materials ,683,017 1, Real Estate , Telecommunication Services , Utilities ,384,425 2, Total Portfolio ,583, Source : Trucost Glossary * Absolute Emissions (tco2e) absolute quantity of emissions in metric tonnes of carbon. This includes Scope 1,Scope 2 and other direct suppliers from Scope 3 ** Carbon Intensity (tco2e/usd mn) the ratio between direct and first tier emissions, divided by the company revenue *** Contribution sum of the effect of individual company holdings to the overall carbon intensity of the total portfolio. 8

9 Comparing results: same model, differing emission data providers Trucost analytics and model - scope 1 & 2, and direct suppliers scope 3 Absolute Emissions (tco2e) * Carbon Intensity/ Footprint Developed Emerging Total of all portfolios 13,583, % 29.6% Source : Trucost Southpole analytics - scope 1 & 2 Absolute Emissions (tco2e) * Carbon Intensity/ Footprint Developed Emerging Total of all portfolios 9,770, % 18.5% Southpole analytics - scope 1 & 2 & 3 Absolute Emissions (tco2e) * Carbon Intensity/ Footprint Developed Emerging Total of all portfolios 38,045, % 18.5% MSCI analytics - scope 1 & 2 Absolute Emissions (tco2e) * Carbon Intensity/ Footprint Developed Data source : Southpole Emerging Total of all portfolios 8,367, % 12.1% MSCI analytics - scope 1 & 2 & 3 Absolute Emissions (tco2e) * Carbon Intensity/ Footprint Developed Emerging Total of all portfolios 30,078, % 12.1% 9 Data source : MSCI

10 Results based on alternate emission data sets: Southpole Southpole analytics Absolute Emissions (tco2e) * Carbon Intensity/ Footprint Developed Emerging London managed 5,777, % 4.0% Paris managed 26, % 0.2% Hong Kong managed 3,540, % 60.5% Total of all portfolios 9,770, % 18.5% & 3 Data source : Southpole Southpole analytics Absolute Emissions (tco2e) * Carbon Intensity/ Footprint Developed Emerging London managed 24,108, % 4.0% Paris managed 90, % 0.2% Hong Kong managed 11,651, % 60.5% Total of all portfolios 38,045, % 18.5% Data source : Southpole 10

11 More about the results Source of analytics Source of Emissions Statistics used in the Footprint Model Issuer Coverage Weight Emission statistics based on company disclosed results 71% Issuers covered by Southpole 80% Emission statistics partially based on company disclosed results 0% Issuers not covered by Southpole 20% Emission statistics fully estimated 29% Total 100% Total 100% & 3 Source : Southpole Source : Southpole Source of analytics Source of Emissions Statistics used in the Footprint Model Issuer Coverage Weight Emission statistics based on company disclosed results 71% Issuers covered by Southpole 80% Emission statistics partially based on company disclosed results 0% Issuers not covered by Southpole 20% Emission statistics fully estimated 29% Total 100% Total 100% Source : Southpole 11 Source : Southpole

12 Detailed Findings : London managed portfolios Consumer Discretionary , Consumer Staples , Energy ,178, Financials , Health Care , Industrials , Information Technology , Materials ,045, Real Estate , Telecommunication Services , Utilities ,640,057 1, Total Portfolio ,777, & 3 Consumer Discretionary , Consumer Staples , Energy ,623,241 3, Financials , Health Care , Industrials ,688, Information Technology , Materials ,502,571 1, Real Estate , Telecommunication Services , Utilities ,210,911 4, Total Portfolio ,108,366 1, Source : Southpole

13 Detailed Findings : Paris managed portfolios Consumer Discretionary Consumer Staples Energy , Financials Health Care Industrials , Information Technology Materials ,516 1, Real Estate Telecommunication Services Utilities ,999 1, Total Portfolio , & 3 Consumer Discretionary , Consumer Staples , Energy ,446 2, Financials Health Care , Industrials , Information Technology Materials ,114 2, Real Estate Telecommunication Services Utilities ,801 3, Total Portfolio , Source : Southpole

14 Detailed Findings : Hong Kong managed portfolios Consumer Discretionary , Consumer Staples , Energy , Financials , Health Care , Industrials , Information Technology , Materials ,997 1, Real Estate , Telecommunication Services , Utilities ,828,370 7, Total Portfolio ,540, & 3 Consumer Discretionary , Consumer Staples , Energy ,486,807 2, Financials , Health Care , Industrials , Information Technology , Materials ,331,594 4, Real Estate , Telecommunication Services , Utilities ,297,547 17, Total Portfolio ,651,477 1, Source : Southpole

15 Detailed Findings : combined London, Paris, Hong Kong managed portfolios Consumer Discretionary , Consumer Staples , Energy ,587, Financials , Health Care , Industrials , Information Technology , Materials ,300, Real Estate , Telecommunication Services , Utilities ,112,318 1, Total Portfolio ,770, & 3 Consumer Discretionary ,371, Consumer Staples , Energy ,660,331 2, Financials , Health Care , Industrials ,360, Information Technology , Materials ,500,907 2, Real Estate , Telecommunication Services , Utilities ,670,648 4, Total Portfolio ,045, Source : Southpole

16 Results based on alternate emission data sets: MSCI MSCI analytics Absolute Emissions (tco2e) * Carbon Intensity/ Footprint Developed Emerging London managed 4,177, % 1.4% Paris managed 23, % 0.1% Hong Kong managed 1,653, % 38.5% Total of all portfolios 8,367, % 12.1% & 3 Data source : MSCI MSCI analytics Absolute Emissions (tco2e) * Carbon Intensity/ Footprint Developed Emerging London managed 20,650, % 1.4% Paris managed 88, % 0.1% Hong Kong managed 2,436, % 38.5% Total of all portfolios 30,078, % 12.1% Data source : MSCI 16

17 More about the results Source of analytics Source of Emissions Statistics used in the Footprint Model Issuer Coverage Weight Emission statistics based on company disclosed results 74% Issuers covered by MSCI 70% Emission statistics partially based on company disclosed results 0% Issuers not covered by MSCI 30% Emission statistics fully estimated 26% Total 100% Total 100% & 3 Source : MSCI Source : MSCI Source of analytics Source of Emissions Statistics used in the Footprint Model Issuer Coverage Weight Emission statistics based on company disclosed results 74% Issuers covered by MSCI 70% Emission statistics partially based on company disclosed results 0% Issuers not covered by MSCI 30% Emission statistics fully estimated 26% Total 100% Total 100% Source : MSCI 17 Source : MSCI

18 Detailed Findings : London managed portfolios Consumer Discretionary , Consumer Staples , Energy , Financials , Health Care , Industrials , Information Technology , Materials , Real Estate , Telecommunication Services , Utilities ,515,348 1, Total Portfolio ,177, & 3 Consumer Discretionary ,030, Consumer Staples , Energy ,882,293 2, Financials , Health Care , Industrials ,529, Information Technology , Materials ,206,461 3, Real Estate , Telecommunication Services , Utilities ,301,620 3, Total Portfolio ,650, Source : MSCI

19 Detailed Findings : Paris managed portfolios Consumer Discretionary Consumer Staples Energy , Financials Health Care Industrials , Information Technology Materials ,428 1, Real Estate Telecommunication Services Utilities ,897 1, Total Portfolio , & 3 Consumer Discretionary , Consumer Staples , Energy ,768 2, Financials , Health Care Industrials , Information Technology , Materials ,929 2, Real Estate Telecommunication Services Utilities ,688 2, Total Portfolio , Source : MSCI

20 Detailed Findings : Hong Kong managed portfolios Consumer Discretionary , Consumer Staples , Energy , Financials , Health Care , Industrials , Information Technology , Materials ,004 2, Real Estate , Telecommunication Services , Utilities ,139 5, Total Portfolio ,653, & 3 Consumer Discretionary , Consumer Staples , Energy , Financials , Health Care , Industrials , Information Technology , Materials ,017 4, Real Estate , Telecommunication Services , Utilities ,139 5, Total Portfolio ,436,587 1, Source : MSCI

21 Detailed Findings : combined London, Paris, Hong Kong managed portfolios Consumer Discretionary , Consumer Staples , Energy ,185, Financials , Health Care , Industrials , Information Technology , Materials ,211, Real Estate , Telecommunication Services , Utilities ,472,177 1, Total Portfolio ,367, & 3 Consumer Discretionary ,506, Consumer Staples , Energy ,594,803 2, Financials , Health Care , Industrials ,556, Information Technology , Materials ,538,207 2, Real Estate , Telecommunication Services , Utilities ,311,731 3, Total Portfolio ,078, Source : MSCI

22 Disclaimers This presentation is intended exclusively towards qualified investors in the meaning of Art. 10 para 3, 3bis and 3ter of the Federal Collective Investment Schemes Act (CISA) The contents are confidential and may not be reproduced or further distributed to any person or entity, whether in whole or in part, for any purpose. The presentation is based on information obtained from sources believed to be reliable but which have not been independently verified. HSBC Global Asset Management Limited and HSBC Group accept no responsibility as to its accuracy or completeness. Care has been taken to ensure the accuracy of this presentation but HSBC Global Asset Management Limited accepts no responsibility for any errors or omissions contained therein. Copyright HSBC Global Asset Management Limited All rights reserved. Source of MSCI analytics: MSCI, the MSCI information may only be used for your internal use, may not be reproduced or redisseminated in any form and may not be used as a basis for or a component of any financial instruments or products or indices. None of the MSCI information is intended to constitute investment advice or a recommendation to make (or refrain from making) any kind of investment decision and may not be relied on as such. Historical data and analysis should not be taken as an indication or guarantee of any future performance analysis, forecast or prediction. The MSCI information is provided on an as is basis and the user of this information assumes the entire risk of any use made of this information. MSCI, each of its affiliates and each other person involved in or related to compiling, computing or creating any MSCI information (collectively, the MSCI Parties ) expressly disclaims all warranties (including, without limitation, any warranties of originality, accuracy, completeness, timeliness, non-infringement, merchantability and fitness for a particular purpose) with respect to this information. Without limiting any of the foregoing, in no event shall any MSCI Party have any liability for any direct, indirect, special, incidental, punitive, consequential (including, without limitation, lost profits) or any other damages. ( 22