A natural fit

27 August 2020 By Antony Currie Follow @AntonyMCurrie

The UK bank is teaming up with advisory startup Pollination to invest in sustainable forestry, water supply, natural carbon capture and such. Nature-based solutions are key to minimizing climate change. HSBC’s JV is a step towards building the needed mainstream scale.

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HSBC Global Asset Management and climate-change investment firm Pollination are creating a joint venture to invest in what they call natural capital, the two companies said on Aug. 26. Christof Kutscher, who was chairman of Axa Investment Managers until late last year, will be executive chairman of the new business, which is to be called HSBC Pollination Climate Asset Management.

The group hopes to launch its first fund by the middle of 2021 with up to $1 billion raised from pension funds, insurers and sovereign wealth funds, with HSBC as a cornerstone investor. After that, the firm is targeting a $2 billion carbon credit fund.

Investments in natural capital provide exposure to projects including sustainable forestry, sustainable agriculture, water supply, carbon captured by oceans, among others, the companies said.

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