HSBC ’s asset management arm in Hong Kong is adding a team of specialists focused on investing in green energy infrastructure assets across Asia as it further expands its portfolio of alternative investment business. The London-based bank said it plans to enter a business transfer agreement with Green Transition Partners Limited (GTP), a Hong Kong asset manager focused on energy transition infrastructure. A team of specialists from GTP and certain assets will transfer into HSBC’s alternative investment business in Asia. The transfer of business assets is expected to be completed by the end of February 2023. “The addition of GTP’s strong team is another milestone for HSBC AM’s alternatives franchise,” Daisy Ho, HSBC Asset Management’s chief executive Officer for Asia-Pacific and Hong Kong, said. “The combination of GTP and our existing business across the region gives us the scale, reach and capabilities to provide some of the capital required to support the transition to net-zero, in what is forecast to be the world’s biggest region for energy transition infrastructure investments.” GTP has targeted mid-market investments in renewable energy generation, storage, grids, charging and hydrogen infrastructure across Asia. HSBC Asset Management said it would continue to “invest significantly” to complement GTPs presence across the region, with a view to enhancing its Asia wealth offerings. “We are excited to partner with HSBC AM to offer global investors access to green energy infrastructure investments in Asia,” Paul Rhodes, GTP’s managing partner, said. “Our strategy should be appealing to clients of HSBC AM who are also focused on deploying into the low carbon economy. This partnership will help us connect local developers to global investors with similar sustainability goals.” Rising interest rates to boost HSBC profit amid uncertain economic outlook HSBC said the GTP team would form the foundation of its energy transition infrastructure business in Asia-Pacific following completion of the transfer agreement. The deal follows HSBC Asset Management announcing plans in 2021 to combine its existing alternatives investment offerings under a single business unit called HSBC Alternatives. The alternatives business has about 240 team members and combined assets under management and advice of US$52 billion as of the end of the third quarter. HSBC also has faced pressure from shareholders and activists in the past year to bolster its climate credentials, announcing in December that it would stop providing financing to new oil and gas projects , as well as metallurgical coal mines. The bank has a goal of reaching net-zero emissions in its lending portfolio by 2050. HSBC, the biggest of Hong Kong’s three currency-issuing banks, previously said it would provide up to US$1 trillion in transition financing and investment to clients by 2030 to help achieve its climate goals. In 2021, the bank also committed to ending financing of coal mining and coal-fired power plants in the European Union and countries that make up the Organisation for Economic Cooperation and Development (OECD) by 2030, and a decade later elsewhere. It has not financed a new coal plant since 2018.