HSBC Global Asset Management has launched the UK Sustainable Equity UCITS ETF.

HSBC says the fund is the first UK sustainable equity ETF with a reduced carbon target. It is benchmarked against the customised FTSE UK ESG Low Carbon Select Net Tax Index, which targets a 20% ESG improvement and a 50% carbon emissions and fossil fuels reserves reduction. The index has an additional 10%~20% underweight to oil & gas in order to reduce exposure to the sector.