HSBC Life Assurance (Malta) Ltd Sustainable Finance Disclosure Regulation (SFDR)
HSBC Life Assurance (Malta) Ltd, (hereafter to be referred to as ‘HSBC Life’)
In accordance with SFDR, HSBC Life as manufacturer of insurance-based investment products (IBIPs) is required to provide disclosures on how they consider sustainability risks and the impact of Environmental (E), Social (S) and Corporate Governance (G) matters in their investment decision making process and remuneration policies.
A. Sustainability risks in investment decisions
HSBC Life adopts a global Sustainability Policy to ensure that sustainability risks are considered across our products, investments and day to day operations.
Where HSBC Life is directly involved in the investment-decision making process, sustainability risks are considered as part of the financial analysis and for certain investments evaluate the associated impact(s). In addition, where HSBC Life can exercise discretion on the asset portfolio, restrictions may be imposed on the investment in the form of a prohibited investment list. In other words, HSBC Life will be prohibited to make any new investments in securities of companies or assets which are included in the Prohibited Investment List.
Where HSBC Life is not directly involved in the investment-decision making process-as this is done via the asset manager, HSBC Life seeks to primarily engage and work with those asset managers which are Principles for Responsible Investment (PRI) signatories and/or others who have sustainability integration and investment stewardship practices in place. These asset managers need to be able to demonstrate to HSBC Life the adoption and implementation of sustainability principles.
B. Impacts of investment decisions on ESG matters
Sustainability standards and principles are set in our Sustainability Policy as well as in our product governance and approval process. This means our standards and principles consider the principal adverse impacts of investment decisions by taking account of Environmental, Social and Corporate Governance (ESG) factors. The Sustainability Policy sets out restrictions that prohibit investment in securities of companies or governments that do not meet our sustainability standards. We consider the appraisal and assessment of such aspects as key components for pre-investment analysis. As part of the due diligence process, where analysis highlights inadequate practices against the asset managers’ own sustainability standards, the risk and potential impact of those inadequacies are considered and where appropriate relevant actions are taken.
HSBC Life has due diligence processes in place with respect to the asset managers it engages and works with. As part of this due diligence process, the sustainability risks of the product as well as the asset managers’ own sustainability standards and practices form part of such review. Where, as part of this review, poor sustainability practices, ratings or governance is identified; an escalation process is triggered by the asset manager to further assess the findings and take the necessary actions which could include, where appropriate, engagement with the investee company.
As regards shareholder engagement, the details of this can be found on our Insurance Forms page under the General Information section.
In order to bring in more positive climate and societal impact, HSBC Group has also been actively looking for investment opportunities that support the United Nations Sustainable Development Goals (UN SDGs) and the Paris Agreement.
As part of HSBC Group, HSBC Life has committed to the United Nations Environment Programme’s Principles of Sustainable Insurance (PSI) and provides progress updates in our annual report which is published on our ESG Reporting and Policies page and the UN Environment Programme’s Finance Initiative external website.
C. Sustainability risks in remuneration policies
Information on how our remuneration policy is consistent with the integration of sustainability risks can be found on our investor relations page.