HSBC Asset Management is taking a minority stake in Radiant ESG, a diversity and inclusion focused investment firm.

The company is co-founded by Heidi Ridley and Kathryn McDonald, former CEO and Head of Sustainable Investing at Rosenberg Equities respectively. With HSBC Asset Management financial backing, Radiant ESG will become RadiantESG Global Investors, a female-owned, asset manager focusing for institutional and wealth management clients.

Radiant says it will have two investment strategies based on its ‘Positive Change’ idea which looks to capture what it calls ESG Leaders, ESG Evolvers and UNSDG-aligned companies. The firms says the strategies will aim to address shifts in demographics and growing demand for more sustainable investment solutions.

Heidi Ridley, Co-founder and CEO, and Kathryn McDonald, Co-founder and Head of Sustainability and Investments, Radiant ESG, added: “We are delighted to have the backing of an organisation with the caliber and reputation of HSBC Asset Management, who has consistently demonstrated the characteristics we believe are paramount to a strong cultural foundation, an innovative mindset and a client-first focus.

“We are deeply committed to positive progress on ESG issues, D&I, and playing a strong advocacy role within the industry on these topics. We believe in the power of inclusive culture within the asset management industry. These shared values form a strong foundation for the cultural and philosophical alignment between HSBC Asset Management and RadiantESG. We are also united in our effort to lead positive change within the asset management industry.”