HSBC has teamed up with climate change advisory firm Pollination Group to create an asset management venture focused on “natural capital”, which seeks to put a value on resources such as water, soil and air to help to protect the environment. The new venture – HSBC Pollination Climate Asset Management will look to raise up to $1 billion for its first fund next year, targeting investments that “preserve, protect and enhance nature over the long-term”, it said in a statement. It aims to attract capital from institutional investors, including sovereign wealth funds, pension funds and insurers into natural capital investments. A growing number of asset owners such as pension funds are looking to invest in projects that help to protect the world’s biodiversity at the same time as turning a profit. Investment in natural capital will provide exposure to projects that include sustainable forestry, regenerative and sustainable agriculture, water supply, nature based bio-fuels, or projects that generate returns from reducing greenhouse emissions.

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Reuters