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Climate Asset Management, the specialist “natural capital” investment manager formed by HSBC Asset Management (HSBA.L) and climate change advisory firm Pollination Group, said it has raised $650 million for projects which aim to protect the environment.

Its investors are corporates, ranging from some of the top global 100 companies to smaller niche players, Martin Berg, CAM’s chief investment officer, said. Rather than financial returns, these investors will receive carbon credits.

“We thought the main target (for the funds) would be institutional investors but we now recognise corporates are key players … they are really becoming (big) investors in this,” he said.

Through its Natural Capital Strategy’s flagship 15-year Natural Capital Fund, CAM is targeting a 10% return on investment before fees on projects in regenerative agriculture and forestry in developed markets. CAM’s second strategy, its Nature Based Carbon Strategy, taps into increasing corporate demand for verifiable carbon offsets and will finance nature-based carbon projects in developing economies.