HSBC Global Asset Management, HSBA.L and Pollination Group, climate change advisory firm have collaborated to form a venture focused on environment known as HSBC Pollination Climate Asset Management, media reports said.
HSBC Global Asset Management Chief Executive Nicolas Moreau, told the media, “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. “
It is reported that the new venture plans to raise funds worth up to $1 billion until its first fund in 2021. The venture will cover investments that will benefit the environment for its protection and preservation in the long run. Furthermore, the capital is expected to be funded by sovereign wealth funds, pension funds and institutional investors.
The first round of funding will be a carbon credit fund worth $2 billion. HSBC seeks to become the investor in the first round of funding.
A strong demand for asset owners such as pension funds is surging because of the projects which generate profit as well as benefit the environment. Investments in natural capital will see investors exploring projects in sectors such as water supply, nature based biofuels, sustainable forestry, regenerative and sustainable agriculture, or any other projects which will help to protect the environment.
Both HSBA.L and Pollination Group will contribute their resources in the venture and will operate independently.
A growing number of companies seek to invest in natural capital but the HSBC venture seems to change the environment by storm.