HSBC launches biodiversity mandate for Asia private banking clients

The new strategy targets companies that aim to unlock the transition toward the circular bioeconomy

HSBC Global Private Banking is offering its first global biodiversity discretionary strategy to professional investors in Hong Kong, with plans to make it available to accredited investors in Singapore later this year.

The Global Biodiversity Discretionary Strategy aims to tap into the growth potential of companies that are positioned to “harness, regenerate and protect biodiversity via the circular and bio-based economy”, according to the firm.

“The rapid loss of biodiversity threatens sustainable livelihoods and poses a significant risk for global economic activity. As sustainable investing continues to develop and mature in Asia, investors are placing greater emphasis on sustainability factors in their investment decisions,” said Lina Lim, regional head of discretionary and funds, investments & wealth solutions, Asia Pacific, HSBC.

The portfolio will focus on quality, mid-sized firms and provides exposure across eight biodiversity-related themes: biomaterials, water solutions, sustainable food systems, innovative urbanisation, sharing, repair & eco-design, distribution systems, performance materials, and waste & recycling.

The strategy has been created and will be managed for HSBC by Lombard Odier, a founding member of the Natural Capital Investment Alliance (NCIA). It will be exclusive to wealthy professional investor clients in Asia.

“By investing in companies that harness and protect biodiversity, we believe the strategy can bring the potential to access growth, relative outperformance and support long term change for the future,” said Jasbir Nizar, global head of business development at Lombard Odier Investment Manager.

The HSBC Group says it aims to provide and facilitate between $750bn and $1tr of sustainable finance and investments over the next 10 years to help its clients in their transition to a sustainable future. HSBC also aims to reduce carbon emissions from its operations and supply chains to net zero by 2030 or sooner.

The Group also “remains committed” to invest $100m in clean technology through its dedicated venture debt fund, and launch a $100m philanthropic programme to help scale climate innovation. To act upon its climate pledges announced in 2020, HSBC became a founding signatory to the Net Zero Banking Alliance in April 2021.