A new joint venture between HSBC Global Asset Management Ltd. and Pollination Group Holdings Ltd. is billing itself as “the first large-scale venture to mainstream natural capital as an asset class.”
On Monday, the two London-based firms announced they had joined forces to create HSBC Pollination Climate Asset Management, “the world’s largest natural capital [asset] manager,” according to a release.
The new venture will manage private funds offering institutional investors exposure to “global natural capital themes in both emerging and developed markets” aimed at preserving, protecting and enhancing nature over the long term.
“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,” Nicolas Moreau, global CEO of HSBC GAM, said in a statement.
Funds will invest in projects including sustainable forestry, sustainable agriculture, water supply, bio fuels and “blue carbon” — coastal ecosystems that sequester carbon emissions.
Pending regulatory approval, HSBC Pollination Climate Asset Management plans to launch two funds next year — one looking to raise US$1 billion; the other, US$2 billion. HSBC intends to become a cornerstone investor in the first fund, according to the release.
“Investing in the resilience of nature is investing in the resilience of the economy,” Martijn Wilder, co-founding partner of Pollination, said in a statement. “Nature is the most fertile investment we have.”