Supporting governance best practice
Good corporate governance helps to ensure companies are managed in the long-term interests of their shareholders. We believe there is a positive link between high standards of governance and the long-term value created by those companies. Therefore we encourage and support companies to adopt corporate governance best practice while recognising that this may vary across the globe.
Managing for the long-term
We invest in, and engage with, companies committed to delivering sustainable long-term returns, even if this means that some short-term opportunities are sacrificed. Such companies are likely to have values focused on stewardship, take account of their broader impact on society, and avoid excessive risk-taking.
Pragmatic and flexible approach
As an investment manager our primary responsibility is to add economic value to our clients' portfolios over the long term. We therefore consider it appropriate to be pragmatic and flexible in our decision making, acting within broad guidelines rather than taking a rules-based prescriptive approach. We encourage companies to implement corporate governance frameworks in line with applicable country codes - such as the Combined Code in the UK - and international standards such as the OECD Principles of Corporate Governance..
We can provide institutional clients with details of our corporate governance voting and engagement activity as part of our standard reporting package. Voting records are disclosed publicly in the jurisdictions where we are legally required to do so.
International Corporate Governance Network
HSBC is a member of the International Corporate Governance Network (ICGN). This group seeks to develop and encourage adherence to corporate governance standards and guidelines, and to promote good corporate governance worldwide. HSBC also participates in the Global Institutional Governance Network.