HSBC announced today that it is launching a new reporting service for asset owners and managers, enabling them to track, measure and evaluate the ESG aspects of their holdings.

Introducing the new service, Chris Johnson, Director of Market Data for Securities Services at HSBC, said:

“ESG is rising up the agenda for our clients, regulators and investors alike. This reporting service will enable our Securities Services clients to gain meaningful insights into ESG aspects of their portfolios using independent scores and ratings. This tool will enable Securities Services clients to see at a glance how large holdings in their selected portfolios are performing using recognised independent ESG criteria.”

According to HSBC, the new service will allow asset owners, such as insurance companies, pension funds and sovereign wealth funds, and the asset managers that invest their money, to keep track of the ESG ratings of their large holdings and help them meet the increasing demand for greater transparency and more insight in this area. The platform will use ESG scores and ratings from several ESG rating providers including MSCI, Sustainalytics and Vigeo Eiris, with more providers expected to be added over time.

The reporting service will consist of a monthly reporting dashboard, including portfolio-level analysis using ESG ratings, and carbon emissions data, and has been designed to apply equally to specialist ESG and non-ESG portfolios.

Johnson added:

“We expect this product to appeal to asset owners who are seeking independent reporting on the ESG profile of their investments. It will enable them to discuss ESG aspects of large positions in their funds with their managers. Asset manager clients, who already have an in-house ESG capability, could use the report to compare with their own research.”