Responsible and sustainable investing

63% of French people say that sustainable development issues are important to them.

To respond to investors’ growing demand for sustainable investing, HSBC Asset Management has been continuously developing its expertise and sustainable investment solutions for over 20 years.

Socially Responsible Investing (SRI)

Socially Responsible Investing (SRI) is an investment approach that aims to combine financial performance with positive social and environmental impact by financing companies and public-sector entities that contribute to sustainable development, regardless of their sector. By influencing governance and stakeholders’ behaviour, SRI helps promote a more responsible economy. (AFG-FIR definition, 2013) SRI involves investing by taking ESG criteria into account, alongside return and risk. It considers a company’s impact on the environment and society, as well as how these issues may affect its performance (risks and opportunities), through:

• Environment (climate, resources, pollution)
• Social (working conditions, safety, human rights)
• Governance (quality of management, ethics, transparency)

Environnemental (E) Examples of criteria Climate change Resource depletion Deforestation Waste management Pollution Biodiversity Carbon emissions

Social (S) Examples of criteria Human rights Child labour Working conditions Inequalities Inclusion

Gouvernemental (G) Examples of criteria Transparency Accountability Financial fraud Anti-corruption Board structure and organisation Executive remuneration Diversity in decision-making bodies

ESG factors can influence a company’s value (costs, regulation, reputation, access to financing).

Source: HSBC Asset Management. May 2026.

How do we measure the ESG performance of a portfolio?

• We assign an Environmental (E), Social (S), and Governance (G) rating to each invested security in order to produce an overall ESG score for each portfolio and for its respective investment universe
• The portfolio’s ESG score is the weighted average of the ESG ratings, based on each security’s weight in the portfolio, excluding government issuances. The rating scale ranges from 0 to 10, with 10 being the highest score
• The overall score is calculated based on the weighting of the E, S, and G pillars inherent to each of the 30 business sectors, using a proprietary methodology

Solidarity savings

Solidarity savings, or solidarity finance, is a way to help people in difficulty through your investments.

It brings together the funding needs of solidarity organisations and the aspirations of savers who want to give meaning to their investments*.

HSBC Asset Management has selected four organisations with the aim of promoting access to employment and housing for the most disadvantaged, and contributing to the conversion of agricultural land to organic farming.

Association for the Right to Economic Initiative This organisation helps people who are excluded from the labour market and the traditional banking system to start their own business, and therefore create their own job, through microcredit.

France Active strengthens the equity base of social enterprises and social-purpose associations, enabling them to create jobs for people who have left the labour market.

Association works to support housing and social inclusion for people in difficulty, as well as rebuilding social ties. It provides access to low-rent housing and supports residents to help them integrate into society.

Terre de Liens Solidarity Land Trust Terre de Liens is a social and solidarity economy enterprise whose main activity is acquiring farmland and farms (which then join the Terre de Liens network of farms). This land is permanently removed from the speculative market, safeguarded over the long term for agricultural use, and made available to new generations of farmers who use practices that respect soils and the environment.

In a solidarity fund, between 5% and 10% of the assets are invested in securities issued by approved solidarity enterprises, or in equivalent securities as defined under Article L.3332-17-1 of the French Labour Code.
Sources: HSBC Asset Management, May 2026. For illustrative purposes only.

Sustainable investment – the SFDR Regulation

European Regulation (EU) 2019/2088, known as the Sustainable Finance Disclosure Regulation (SFDR), sets out sustainability-related transparency obligations for the financial services sector.

It defines sustainable investment as an investment in economic activities that contribute to an environmental objective, or an investment in economic activities that contribute to a social objective, provided that it does not cause significant harm to other environmental or social objectives, and that the companies in which the investments are made follow good governance practices.

HSBC Asset Management has developed a proprietary methodology to define the classification criteria for funds falling under Article 6, Article 8 and Article 9 of this regulation.*

	Article 6 funds relate to financial products that do not promote environmental and/or social characteristics, do not have a sustainable investment objective, and do not meet the definitions set out in Articles 8 and 9.
	Funds classified under Article 8 promote environmental or social characteristics, or a combination of these characteristics, provided that the companies in which the investments are made follow good governance practices.
	Funds classified under Article 9 have a sustainable investment objective.

HSBC Asset Management, May 2026.