HSBC Global Asset Management has entered into a joint venture with a climate change specialist to establish a “natural capital” investment manager.
In an announcement on Wednesday (26 August), the global bank said it had teamed up with Pollination Group Holdings to launch HSBC Pollination Climate Asset Management.
The newly-established company aims to offer investors access to projects focussed on nature, such as sustainable forestry, regenerative and sustainable agriculture, nature-based bio fuels and projects that generate returns from reducing greenhouse emissions.
Subject to regulatory approval, the new organisation will be led by Christof Kutscher in his role as executive chairman.
“Clients are increasingly focused on environmental matters and this initiative is designed to help them achieve a financial return, while at the same time creating a positive impact on the world’s biodiversity which will be felt for generations to come,” explained Nicolas Moreau, global chief executive officer of HSBC Global Asset Management.
“Through solutions such as this, we’re helping clients achieve their long-term investment objectives, while meeting their increasing demand to actively contribute to a more sustainable world.”
The company aims to launch a suite of private funds to tap into themes in both emerging and developed markets. The first fund is planned for the middle of 2021 and will look to raise up to $1 billion.
HSBC has pledged to become a cornerstone investor in the first fund. The funds will invest in projects that will preserve, protect and enhance nature over the long-term.
“To reach the goals set in the Paris Agreement we need to originate and fund new approaches that protect nature, at scale,” said Martijn Wilder AM, co-founding partner of Pollination.
“In a global economy that is on a path to rapid decarbonisation, we regularly hear from investors and organisations looking for investment opportunities that will mitigate long-term climate risk.
“In natural capital, we’re accelerating investment in an asset class that can help combat climate change and build biodiversity, whilst also generating long-term returns for institutional investors.”