HSBC AM to phase out thermal coal investing by 2040

Support transition away from thermal coal

HSBC Asset Management’s active fund range will stop investing in thermal coal companies by 2040.

The new policy to phase out coal-fired power and thermal coal mining from its listed holdings will see the exclusion of such companies by 2030 in the EU and OECD, and globally ten years later. The asset manager will actively work with company boards to support the transition away from thermal coal and those who do not show credible plans to do so within the timeframe could see votes against company chairs at AGMs or, ultimately, divestment. This latest development is HSBC AM's response to the 'Net Zero Asset Managers' initiative of which it is a signatory. In 2020, the HSBC Group set ...