With HSBC's New Bid, The Future's Looking Good for ESG in Banking
January 2023 has kicked off with news of HSBC's Hong Kong asset management arm planning to add a team of specialists focused on investing in green energy infrastructure assets across Asia. It plans to enter a business transfer agreement with Green Transition Partners Limited (GTP), a Hong Kong asset manager focused on energy transition infrastructure. In its bid to expand its portfolio of alternative investment business, HSBC's move spells good news for ESG banking.
In the wake of layoffs at European banks like Credit Suisse, HSBC has been sending emails to several senior management staff who got laid off, to offer them roles- a move that publicises HSBC's strength and commitment to strengthening their footprint, especially in Asia 😎😎
👉 Besides, McKinsey's recent global annual banking review report predicts that ESG in banking has a promising future, especially as sustainable debt increases. Banks could report earnings of $100 billion each year by 2030 through the issuance of green bonds, sustainability bonds, transition bonds, social bonds, sustainability-linked loans & bonds, as well as via providing clean energy project financing options.
While Europe and the US lead in terms of sustainability-linked loans and green bonds, HSBC's latest plans for aggressive expansion in Asia may tip the scales more favourably.
👉 The #mckinsey report noted that a greater focus on sustainability will permeate various areas of banking, such as #assetmanagement #retailbanking
Green energy financing may be a source of huge revenue potential for banks whilst funding efforts to facilitate net-zero transitions could end up being well over $4.4 trillion.
Several banks have already begun pursuing sustainability initiatives by offering electric vehicle loans, green mortgages, leasing options for solar panels, energy-efficiency education, platforms to distribute green assets, and more.
👉 #jpmorgan Asset Management has increased its ETF offerings for investors in Australia with the JPMorgan Climate Change Solutions Active ETF and JPMorgan Sustainable Infrastructure Active ETF being listed on the Australian Securities Exchange.
So what does this mean for prospective job seekers?
🎯 Enhance your knowledge of ESG and get more exposure related to it, whether it’s through internships, case competitions, or even university projects
🎯 Stay updated with the latest ESG trends and initiatives banks are engaging in. These insights will help you outshine peers in interviews and demonstrate your interest plus preparedness to hiring managers
🎯 Don’t worry if you don’t start off in ESG right away. Build up your experience and transferable skills in the 1st year. It will be easier for you to transition into a more related role where your experience/ skills are useful.
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