HSBC Global Asset Management and Pollination, a climate change advisory and investment firm, have entered a joint venture to create what they claim will be the world’s largest natural capital manager.
The joint venture will be called HSBC Pollination Climate Asset Management and will invest in projects that “preserve, protect and enhance nature over the long-term”.
It is also claimed that the partnership will be the first large-scale venture to mainstream natural capital as an asset class.
Industry veteran, Christof Kutscher, will be named executive chairman of the joint venture.
HSBC Global Asset Management and Pollination will both provide resources to the planned joint venture which will operate independently.
The partnership will also provide stewardship and evaluation of the investments, enabling investors to quantitatively measure impact.
The first fund, which aims to launch mid next year, will look to raise up to US$1 billion followed by a carbon credit fund at up to US$2 billion.
HSBC intends to become a cornerstone investor in the first fund. The funds will invest in a diverse range of projects that will preserve, protect and enhance nature over the long-term.
Nicolas Moreau, HSBC Global Asset Management chief executive, 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.”
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