Nature is now the most
fertile investment we have.

Nature is now the most fertile investment we have.

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Climate Asset Management aims to offer a wide exposure to global natural capital investment opportunities. Our strategies seek to work across landscapes to build resilience whilst generating returns from food and fibre products, land value appreciation and ecosystem service payments, such as carbon credits.
Our investment strategies are grounded in nature based assets, including sustainable forestry, regenerative agriculture, and nature based carbon projects, alongside exploring new forms of natural capital.
Natural capital spans geographical borders. Climate Asset Management aims to leverage the scale of HSBC and the deep market expertise of Pollination to unlock investment opportunities across the globe

Disclaimer: There is no guarantee that any product managed or advised by Climate Asset Management will invest in similar investments or achieve comparable, or any specific level, of returns.

Mangroves, seagrasses and tidal marshes, also known as ‘blue carbon’ ecosystems, lock up carbon at faster rates than most land ecosystems.

Where we invest

  • Natural Capital Strategy
  • Nature Based Carbon Strategy

Natural Capital Strategy

“ As the pace of the global low-carbon transition accelerates, large-scale nature-friendly investment products are required. Our products are designed to provide institutional investors with the opportunity to drive positive impact and diversify their investment risk while maintaining commercial, long-term returns.”
Ben O'Donnell Chief Investment Officer, Natural Capital Strategy
The challenge

For decades, unsustainable attitudes towards investing, land use and land management have led to climate change, catastrophic declines in biodiversity, and the destruction of nature.

Now, as the race to reverse this trend and philosophies of value creation shift from exploitation to sustainable regeneration, we expect growing investor demand for nature based solutions. Our nature based investments aim to address the climate and biodiversity crises, as well as diversify investment risk while offering commercial, long-term returns.

Until now, these nature based solutions simply have not been accessible at the scale required, with other mainstream strategies limiting their focus to either impact or returns.

The solution

Offering investors access to investments in natural capital that deliver returns and impact at scale.

Our Natural Capital Strategy is based on traditional timber and agriculture business models, but incorporating additional revenue streams from carbon, water and biodiversity to capitalise on the macro and regulatory tailwinds.

With increasing institutional interest in real assets, the strategy invests primarily in sustainable agriculture and forestry projects in developed markets. It does not invest in livestock. It aims to optimise landscapes to produce food and fibre commodities whilst enhancing environmental outcomes for future generations.

Our team partners with local operating parties with experience in implementing scalable, sustainable practices to mitigate execution risk and leverage the deep knowledge already embedded across the natural capital sector. These sustainable practices may seek to reduce chemical use, improve soil health, enhance biodiversity and increase carbon sequestration, in turn supporting land price appreciation.

The problem with the current path

Investing in natural capital can reverse this negative cycle resulting from a singular focus on the economic exploitation of natural capital assets and deliver impactful returns at scale.

1 Source: IPCC (2019), Project Drawdown (2020): Farming our way out of the climate crisis, Climate Asset Management

The solution we need today

The situation since 1970

2 Source: IPCC (2019), Project Drawdown (2020): Farming our way out of the climate crisis, Climate Asset Management

Sustainable forestry

Sustainable forestry aims to balance the needs of biodiversity and nature whilst recognising the growing global demand for certified sustainable wood products. Through optimising marginal or degraded land, we aim to preserve and enhance our forests for future generations.

Regenerative agriculture

Regenerative agriculture is a system of farming principles and practices that aim to rehabilitate and enhance the entire ecosystem of a farm. It places significant focus on soil health, with attention paid to efficient water management, reducing chemical fertiliser use and harnessing improved biodiversity.

Healthy soils store carbon, providing a pathway to enhance the quality of our food and at the same time restore the health of our climate.

Environmental assets

Climate Asset Management also seeks to invest in new and evolving natural capital opportunities – generating income through monetising services provided by nature, such as carbon credits generated from carbon sequestration, improved biodiversity and enhancing local freshwater quality and availability.

Markets are gradually developing for such services, driven by increasing consumer awareness and regulatory attention. We intend to position the Natural Capital Strategy to benefit from these evolving developments.

Nature Based Carbon Strategy

“ The global community needs to reach net zero emissions by no later than 2050. To credibly hit that target, we all need to act now, not in 2040.”
Taskforce on Scaling Voluntary Carbon Markets, 2021
The challenge

Growing demand for high impact carbon credits from nature based solutions is outstripping supply.

Aligned with the goals of the Paris Agreement, many of the world’s largest companies and investors have voluntarily pledged to reduce their greenhouse gas (GHG) emissions to net zero by or before 2050.

Whilst efforts are being made to reduce GHG emissions through operational, technology, and supply chain changes, many will not be able to achieve these targets in the short term through direct action alone.

Developing the market for high impact carbon credits from nature based solutions will play a critical role, while delivering additional biodiversity and community benefits.

Demand for voluntary carbon credits is therefore increasing rapidly, having doubled in the last year. A significant increase in the supply of carbon credits will be required to fulfil this current and future anticipated demand.

The solution

Offering investors access to investments in nature based carbon projects that seek to deliver high impact carbon credits from activities that conserve, protect and restore nature and biodiversity with and for local communities.

Our Nature Based Carbon Strategy offers companies and investors access to investments in nature based carbon projects, in return for high impact carbon credits.

We partner with carbon project developers and non-governmental organisations to develop and finance large scale nature based solutions projects across the world. We also work with local stakeholders and governments on collaborative structures that meet all stakeholders’ needs and support the priorities of the host countries.

The strategy seeks to invest across a range of nature based solutions, including agriculture, forestry and other land-use (AFOLU), conservation, restoration and regeneration of mangroves, wetland and peatland (known as blue carbon), and savanna fire management.

We aim to create long-lasting, sustainable impact through conserving, restoring, and enhancing biodiversity, as well as benefiting local communities and indigenous groups through community programmes and innovative sharing mechanisms.

The opportunity with nature based solutions

Nature based solutions could deliver up to one-third of net emission reductions required by 2030 on a global pathway to net zero.

1 Source: McKinsey 1.5°C Scenario Analysis (Scenario A) IPCC Special Report on 1.5°C, Le Quéré et al., 2018

2 McKinsey Nature Analytics, World Economic Forum – Nature and Net Zero Report (2021)

Contact investment team.

Climate Asset Management’s investment solutions are designed for institutional investors seeking access to natural capital investments and corporates transitioning to net zero.

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