* Groups launch HSBC Pollination Climate Asset Management
* Aim to launch $1 bln real assets fund by middle of 2021
* Also plan a second $2 bln carbon credit fund
By Simon Jessop
LONDON, Aug 26 (Reuters) - HSBC Global Asset Management
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 on Wednesday.
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.
"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.
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.
The first fund will be followed by a carbon credit fund of
up to $2 billion. HSBC intends to become a cornerstone investor
in the first fund.
HSBC Global Asset Management and Pollination will both
provide resources to the planned joint venture and it will
operate independently.
"To reach the goals set in the Paris Agreement we need to
originate and fund new approaches that protect nature, at
scale," said Martijn Wilder AM, co-founding partner at
Pollination, referring to the 2015 climate deal that aims to
keep carbon emissions below 2 degrees Celsius by 2050.
"Investing in the resilience of nature is investing in the
resilience of the economy. Nature is the most fertile investment
we have."
(Editing by Jane Merriman)
HSBC Holdings (HSBA)