Three money managers have become founding partners of the Natural Capital Investment Alliance, an initiative that aims to promote nature as an investment opportunity and attract $10 billion in capital by 2022.
The initiative was established by His Royal Highness The Prince of Wales, under his Sustainable Markets Initiative. The three founding managers are the HSBC Pollination Climate Asset Management, which is currently raising capital; Lombard Odier Group, which had 290 billion Swiss francs ($305.7 billion) in assets as of June 30; and the €15.8 billion ($19.3 billion) Mirova, an affiliate of Natixis Investment Managers.
The initiative will aim to promote natural capital as a way of reducing emissions, restoring biodiversity and boosting sustainable economic growth and job creation, a news release said Monday. While half of global GDP depends on natural capital, only a limited number of initiatives to promote nature as an investment opportunity exist.
The alliance will work to integrate natural capital as an investment theme in different asset classes and will also improve investor-centric descriptions of nature-related investment opportunities.
All three managers are already working on natural capital opportunities. HSBC Pollination, a joint venture firm between HSBC Global Asset Management and climate-change advisory and investment firm Pollination, is launching a series of natural capital strategies that directly invest in the preservation, protection and enhancement of nature. Lombard Odier launched a global equities investment strategy for natural capital last year, while Mirova has established a natural capital platform, focusing on strategies in land restoration, the blue economy and forest protection.
The alliance aims to bring $10 billion in investment to natural capital themes across asset classes by 2022, to serve as a central hub for institutions looking to increase their investments in natural capital in support of biodiversity restoration and to share investment knowledge and expertise.
"Investing in nature is a major investment opportunity, and the one action we must urgently take to protect our future," Christof Kutscher, executive chairman of HSBC Pollination, said in a news release.
Hubert Keller, managing partner of Lombard Odier Group, added in the same release: "The investment industry seeks returns as its primary objective and today some of the most convincing opportunities for growth and returns come from a transition to a more sustainable economic model that both harnesses and preserves nature."
The Sustainable Markets Initiative was launched by The Prince of Wales at the World Economic Forum 2020 Annual Meeting held in Davos, Switzerland.
