HSBC Asset Management has taken a minority stake in US-based ESG and diversity and inclusion consultants Radiant ESG.
Radiant ESG co-founders Heidi Ridley and Kathryn McDonald (pictured) focus on developing inclusive cultures at investment firms.
The firm will become RadiantESG Global Investors, an independent asset management firm, which plans to launch two investment strategies later this year focused on ESG leaders, evolvers and UN Sustainable Development Goals-aligned companies.
HSBC Asset Management said it will will own a “significant economic interest” in RadiantESG Global Investors, up to 33% over time.
Nicolas Moreau, CEO at HSBC Asset Management, said: “The essence of true global leadership is to change the status quo and this partnership is a perfect example of a direct social impact investment. When investing is combined with a team built upon diversity, inclusion and entrepreneurism, truly great outcomes are possible for our clients.
“RadiantESG has a powerful value proposition, credibility in the marketplace and a solid foundation for delivering strong risk adjusted returns. We’re compelled by the unique approach Heidi and Kathryn have developed and are excited to have the opportunity to support the launch of a female-owned asset management firm with a deep commitment to ESG and a successful track record of delivering sustainable investment strategies.
Ahead of the Women in Asset Management Summit earlier this year, in a Q&A published on ESG Clarity, Ridley and McDonald spoke about the evolution of data sets, and the importance of leadership in improving inclusion.
“Leadership is facing a paradigm shift; the leaders of tomorrow will need to bring new skills and a new mindset. First and foremost, elevating the idea of a ‘shared purpose’ to a place of importance will increasingly become a requirement to attracting next generation talent; the upside is that it will also be amazingly unifying and transformational for organisations,” Ridley said at the time.
On the announcement of backing from HSBC Asset Management, Ridley and McDonald said: “We are delighted to have the backing of an organisation with the caliber and reputation of HSBC Asset Management.
“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.”