Banking giant aims to raise $1bn for its first fund, which will be followed by a carbon credit fund of up to $2bn
HSBC has announced the birth of an innovative new green approach to asset management, outlining plans to partner with climate change consultancy Pollination Group to create a new investment fund focused on "natural capital".
Expected to launch in the middle of next year, HSBC Pollination Climate Asset Management aims to raise $1bn for its first fund, the banking giant said.
Seeking to place a value on natural resources such as water, soil and clean air, it aims to attract capital from institutional investors, including sovereign wealth funds, pension funds, and insurers, while targeting investments that "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," the firm said in a statement published yesterday.
HSBC intends to become a cornerstone investor in the first fund, it said. The first fund will be followed by a carbon credit fund of up to $2bn, it added. The bank said the move comes in response to the growing number of asset owners that are looking to invest in projects that help to protect the world's biodiversity at the same time as turning a profit.
"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," said HSBC Global Asset Management chief executive Nicolas Moreau.
Pollination co-founder Martjin Wilder said the goals of the Paris Agreement would require financial actors to "originate and fund new approaches that protect nature, at scale".
"Investing in the resilience of nature is investing in the resilience of the economy," he added. "Nature is the most fertile investment we have."
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