HSBC Asset Management and climate change investment and advisory firm Pollination joint venture Climate Asset Management announced today that it has reached commitments of more than $650 million for its natural capital investment funds.
Climate Asset Management was launched by HSBC AM and Pollination in 2020, to invest in a diverse range of projects that will preserve, protect and enhance nature over the long-term, and to offer investors a wide exposure to global natural capital themes in both emerging and developed markets, while also providing stewardship and evaluation of the investments, enabling investors to quantitatively measure impact.
To date, the natural capital investment manager has launched two funds, including the Natural Capital Strategy (NCS) and Nature Based Carbon Strategy (NBCS). NCS has developed a pipeline of natural capital investment opportunities, with an objective to deliver long-term financial returns alongside improved environmental outcomes from regenerative landscape management in agriculture, forestry and environmental assets. NBCS finances nature-based carbon projects, particularly in their early stage of development, targeting landscape restoration in developing economies aimed at delivering biodiversity improvements at scale, while helping global corporations to achieve their decarbonization targets.
HSBC is the anchor investor for both strategies, with additional commitments raised from global financial institutions and companies across Europe, the US, Asia-Pacific and the UK.
Climate Asset Management stated that it continues to raise funds across both strategies and expects to make further announcements during 2023.
Christof Kutscher, CEO of Climate Asset Management, said:
“We are delighted to have secured these commitments from a diverse global institutional investor-base for our Natural Capital and Nature Based Carbon strategies. Both investment strategies are grounded in nature-based assets and we find they are increasingly attractive to forward-thinking organisations that are themselves committed to the transition to net zero. The commitments will help us to support bold and scalable nature-based investment solutions as we strive to secure a more climate-resilient, nature-positive and inclusive world.”