The bank's asset management arm is partnering climate change advisory and ESG investment firm Pollination to launch a series of billion-dollar funds that will target «natural capital.»
The partnership aims to create the world’s largest natural capital manager and is the first large-scale venture to mainstream natural capital as an asset class, with former AXA board chair Christof Kutscher named as executive chairman of the venture, the bank said in an announcement on Thursday.
The independently operated asset manager will offer investors a wide exposure to global natural capital themes in both emerging and developed markets. It will also provide stewardship and evaluation of the investments, enabling investors to quantitatively measure impact, the announcement said.
Sustainable and climate-focused funds are just starting to become mainstream, but this venture is the first large-scale effort to specifically focus on natural capital. The first fund, which is targeted for launch in mid-2021. will look to raise up to $1 billion from institutional investors, with a $2 billion carbon credit fund to follow.
Positive Impact
Natural capital projects aim to preserve, protect and enhance nature over the long-term by focusing on nature-generated assets. They include sustainable forestry, regenerative and sustainable agriculture, water supply, blue carbon, nature-based biofuels, or nature-based projects that generate returns from reducing greenhouse emissions.
«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,» Martijn Wilder AM, co-founding partner, Pollination said.
«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,» Nicolas Moreau, HSBC Global Asset Management global CEO, said.
