HSBC and Pollination Group partner for first large-scale investment opportunity to protect nature.

HSBC Global Asset Management and Pollination have partnered with the ambition to create the world’s largest dedicated natural capital asset management company.

HSBC Global Asset Management Limited and Pollination Group Holdings Limited have entered into a joint venture agreement to establish HSBC Pollination Climate Asset Management – subject to regulatory approval.

The partnership will aim to create the world’s largest natural capital manager and is the first large-scale venture to mainstream natural capital as an asset class.

Through the creation of private funds, HSBC Pollination Climate Asset Management aims to offer investors a wide exposure to global natural capital themes in both emerging and developed markets.

The partnership will also provide stewardship and evaluation of the investments, enabling investors to quantitatively measure impact.

Martijn Wilder AM, Co-founding Partner, Pollination said: “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.”

“Investing in the resilience of nature is investing in the resilience of the economy. Nature is the most fertile investment we have.”

The proposed group of funds will aim to attract capital from institutional investors, including sovereign wealth funds, pension funds and insurers into natural capital investments.

The first fund, which aims to launch mid next year, will look to raise up to USD1 billion followed by a carbon credit fund at up to USD2 billion. HSBC intends to become a cornerstone investor in the first fund. The funds will invest in a diverse range of projects that will preserve, protect and enhance nature over the long-term.

Nicolas Moreau, Global CEO, HSBC Global Asset Management, said: “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. 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.”

28 August 2020

Climate Action