As natural disasters become an added burden to the already stressed global economy, some well-meaning companies look at the other side of the business and see if there's anything they can do to help. For instance, nature and the environment.
HSBC Global Asset Management and climate change consultancy firm Pollination Group are joining forces to unveil an investment program on so-called "natural capital" into which billions of dollars will be poured to address critical issues regarding the world's environment and its resources.
Dubbed HSBC Pollination Climate Asset Management, the latest endeavor seeks to secure around $1 billion for the undertaking's debut fund by the middle of 2021, pursuing lucrative ventures that will protect and preserve the environment for the long-term," the group said in a statement Wednesday.
The biggest of its kind, the partnership will be led by Christof Kutscher, former chair of the AXA Board and senior consultant at Pollination. It will target established entities and investors including independent wealth funds, private pension groups and climate-focused organizations to raise the required capital for the initiative's funding.
At the core of the HSBC Pollination Climate Asset Management is natural capital which, in layman's terms, is simply natural resources, like the earth, water, flora, and fauna. This is where the HPCAM will invest billions to help safeguard the world's biodiversity while turning a profit at the same time. It's what will set them apart from other environmental advocacies.
According to John Morton, a Pollination partner and former climate chief of the Obama administration, the initiative is aware of the destruction caused by lack of investments in nature, so investing in it should be "part of the solution" to climate change.
Morton is optimistic the collaboration between an established financial group and company with an impressive resume in natural investments will set the stage for other capital ventures that put a premium on nature.
The environment accounts for around $125 trillion in global economic activity each year, based on a 2018 study by the World Wildlife Fund. Climate change initiatives have gained the interest of private firms who want to take part in the endeavor, but the investing process could be quite tedious, if not restricted. This is the part that HPCAM hopes to simplify.