Press releases

  • Date 26 August 2020
  • Words by Pollination & HSBC Asset Management
  • Reading time 1 mins

HSBC Asset Management & Pollination launch partnership to create world’s largest Natural Capital Manager

HSBC Asset Management Limited and Pollination Group Holdings Limited, the specialist climate change advisory and investment firm, today announced that they 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. Industry veteran, Christof Kutscher, will be named Executive Chairman of the joint venture.

HSBC Global Asset Management and Pollination will both provide resources to the planned joint venture and it will operate independently. 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.

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.

Sustainable investment in natural capital provides exposure to projects focused on nature including sustainable forestry, regenerative and sustainable agriculture, water supply, blue carbon (carbon captured by oceans and coastal ecosystems), nature based bio-fuels, or nature based projects that generate returns from reducing greenhouse emissions.

Martijn Wilder AM, Co-founding Partner, Pollination said: “To reach the goals set in the Paris Agreement we need to originate and fund new approaches that protect nature, at scale. 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.”

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.”

Sustainable investing represents a growing need and has demonstrated continued growth in recent years, with capital invested in sustainable infrastructure projects increasing by c. 3x (from 2010 to 2018) to c. USD31tn globally1. This announcement follows soon after HSBC Global Asset Management announcing its private investor close for its emerging market HSBC Real Economy Green Investment Opportunity GEM Bond Fund in partnership with the IFC, part of the World Bank Group.

Share

Related reading

Latest news
Profile: Martin Berg of Climate Asset Management

The new CEO of Climate Asset Management, Martin Berg, tells Thomas Cox about the challenge of scaling natural capital.

25 May 2023 Words by Environmental Finance
Press releases
Martin Berg takes on CEO role at Climate Asset Management as Christof Kutscher steps down

The board of Climate Asset Management is delighted to announce the appointment of Martin Berg as Chief Executive Officer

17 May 2023 Words by Climate Asset Management
Press releases
Climate Asset Management will manage a new investment fund for Apple as Apple doubles the size of its Restore Fund

• Apple commits up to an additional $200 million to its Restore Fund

• The new fund is managed by Climate Asset Management and offers Apple suppliers the opportunity to become partners in the fund

• A unique blended fund structure targeting financial and climate benefits

12 April 2023 Words by Climate Asset Management
Thought leadership
COP15 - worth the wait?

Initially scheduled for 2020 and billed as the ‘Super Year for Nature’, COP 15 has seen both delays and venue changes, but in Montreal in December it certainly felt that the effort to get there neither dulled the enthusiasm nor the urgency.

08 February 2023 Words by Leo Murphy

Contact media team.

If you're a journalist looking to reach our global media relations team, please contact us.

Get in touch

A partnership of

brands