On August 26, 2020, The Guardian reported the creation of a new joint venture that seeks to invest billions in natural capital around the world. HSBC Global Asset Management and Pollination, a climate advisory and investment firm, are forming the world’s largest investment firm dedicated to environmentally friendly projects beyond renewable energy. The plan is to offer investment opportunities in areas such as biodiversity protection and restoration, sustainable forestry and agriculture, coastal restoration, blue carbon, and natural capital that generates carbon credits.
The venture, called HSBC Pollination Climate Asset Management, aims to attract money from sovereign wealth and pension funds and institutional investors to raise USD 1 billion for an initial fund, which is expected to launch in mid-2021. A carbon credit fund of USD 2 billion is planned to follow. Martijn Wilder, a Pollination founding partner, said the new venture would “accelerate investment that could help combat climate change and build biodiversity while generating long-term returns for institutional investors.” He added: “Investing in the resilience of nature is investing in the resilience of the economy”—and hence contributes to a green and resilient recovery from the Covid-19 pandemic.