HSBC, Pollination planning a series of funds targeting ‘Natural Capital’ niche

HSBC Global Asset Management and climate-change focused Pollination Group announced Wednesday a series of billion-dollar funds that will target “natural capital.”



The 2019-2020 Australian bushfire, western mega droughts and Jakarta flash floods have demonstrated that we cannot protect our land, water and other natural resources without long-term financial commitments. That’s why, some investors are betting big on ‘natural capital,’ i.e. economic solutions to ensure that the planet’s most critical areas – places that provide us food, water, shelter and more – remain intact.

HSBC Global Asset Management has joined hands with climate change advisory firm Pollination Group to create an asset management venture focused on “natural capital,” which aims to put a value on resources such as air, soil, and water to help to protect the environment.

The joint venture – HSBC Pollination Climate Asset Management – plans to raise up to $1 billion for its fund next year, targeting investments that “preserve, protect and enhance nature over the long-term,” it said in a statement.

Natural Capital HSBC Pollination Asset Management

HSBC Pollination Climate Asset Management will seek capital from institutional investors, including pension funds, sovereign wealth funds, as well as insures into natural capital investments

HSBC Pollination Climate Asset Management will seek capital from institutional investors, including pension funds, sovereign wealth funds, as well as insures into natural capital investments.

“Natural capital is just a way of thinking about nature as an asset that provides a flow of services and benefits to people and the economy,” said John Morton, a former climate director in the Obama Administration who is a partner at Pollination. “We see the devastation that is brought through poor natural capital investments, so investing in nature has to be part of the solution to our climate ch

In the past year, a growing number of asset owners, especially pension funds, have shifted their focused to projects that aim to protect the planet’s biodiversity while also making a buck.

“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.

The asset management venture will provide exposure to projects such as water supply, sustainable forestry, regenerative and sustainable agriculture, nature based bio-fuels, and projects that help generate returns while also reducing greenhouse emissions.

According to HSBC, the first fund will be followed by a carbon credit fund of up to $2 billion. With the Pollination Asset Management venture, HSBC aims to become a keystone investor in the first fund.

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

Christy Gren
Christy Gren is an Industry Specialist Reporter at Industry Leaders Magazine she enjoys writing about Unicorns, Silicon Valley, Startups, Business Leaders and Innovators. Her articles provide an insight about the Power Players in the field of Technology, Auto, Manufacturing, and F&B.

Recent Posts

America is Losing its Appetite for Plant-Based Meat

America is Losing its Appetite for Plant-Based Meat

Most meat in 2040 will not come from animals, says report. However, the recent decline in sales of plant-based meat fell by 1.8 percent compared to the year before, taking declines
26 mins ago
Fusion startup raises $1.8 billion to give us unlimited clean energy

Fusion startup raises $1.8 billion to give us unlimited clean energy

Commonwealth Fusion Systems secures more than $1.8 billion in Series B funding to commercialize fusion energy. The funding round was led by Tiger Global Management with participati
20 hours ago
Omicron might push inflation, says OECD

Omicron might push inflation, says OECD

The latest Coronavirus variant, Omicron, which is believed to be more transmissible and severe, might derail growth and recovery and raise costs, according to the Organization for
1 day ago
Who is Parag Agrawal, Twitter’s new CEO?

Who is Parag Agrawal, Twitter’s new CEO?

Indian-born Parag Agrawal took over as the CEO of Twitter as co-founder Jack Dorsey stepped down for the second time in his career. Agrawal is the fourth person to take the reins a
2 days ago
Goldman Sachs rolls out paid leave for pregnancy loss

Goldman Sachs rolls out paid leave for pregnancy loss

Goldman employees are now eligible for 20 days of paid leave for a miscarriage or stillbirth. The investment banking giant is also increasing its retirement fund matching contribut
2 days ago
Boom in Tech IPOs in 2021

Boom in Tech IPOs in 2021

The big tech cloud-based software companies such as Zoom, Snowflake, Asana, Airbnb, Amazon, Salesforce and Palantir have all witnessed a rise in stock prices as work from home and
3 days ago