HSBC Global Asset Management and climate change advice and investment firm Pollination Group will establish a "natural capital" manager through a joint venture, spokesmen said.
HSBC Pollination Climate Asset Management will provide institutional investors with exposure to projects focused on nature, including sustainable forestry, regenerative and sustainable agriculture, water supply, nature-based biofuels and other natural sources. Exposure will be across developed and emerging markets, and the new manager will also provide stewardship services and evaluation of investments.
The firm, which will operate independently, aims to launch its first strategy in the middle of next year with a target fundraising of up to $1 billion. It will be followed by a carbon credit fund with a target of up to $2 billion, a joint news release said.
Both HSBC GAM and Pollination will provide capital and employees for the joint venture, the spokesmen said. Both firms will continue to work closely with the newly formed joint venture team, the HSBC spokesman added.
Christof Kutscher was named executive chairman of HSBC Pollination Climate Asset Management. Mr. Kutscher is former global chairman of AXA Investment Managers, a spoke-man for Pollination said. The investment team includes natural capital experts including Martin Berg, who was head of environmental funds and climate finance at the European Investment Bank. The wider team will be announced at a later date, the HSBC spokesman said.
HSBC GAM has $525 billion in assets under management.
