15 December 2022 / published on REUTERS

Global talks on protecting nature continue in Montreal, with the theme of Wednesday’s session dedicated to finance.

The tricky issue of how to direct more money to projects such as preserving mangrove forests or expanding forest cover is a central sticking point for negotiators ahead of the end of the COP15 conference, slated for Dec. 19.

A group of 150 financial firms pledged on Tuesday to help preserve endangered natural ecosystems through their financing and investments, which currently collectively cover assets worth more than $24 trillion.

Martijn Wilder, chief executive of investment and advisory firm Pollination, said another option could be to force companies to keep money back to help support nature protection and restoration projects, funding them as benefactors.

Such a model would echo requirements on banks to hold a financial buffer after the financial crisis, to ensure market stability, and would allow finance to move in scale more quickly, he added.

14 December 2022 / published on REUTERS

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.

14 December 2022 / published on IISD Earth Negotiations Bulletin

A rights-based, people-centered approach to supporting landscape-scale projects can foster unique interactions between communities, economies, and environments that build enduring conservation outcomes. 

This COP15 side event, moderated by Kirsty Galloway McLean, Executive Director, Pollination Foundation/Ampliseed, shared case studies and lessons on how taking such an approach can foster these unique interactions. An expert panel discussion was followed by an exchange of views with donors, learning network facilitators, and frontline project implementers working in diverse landscapes. 

13 December 2022 / published on THE BUSINESS TIMES

The funds are managed by Climate Asset Management, which is jointly owned by HSBC Holding Plc’s investment unit and climate change investment and advisory firm Pollination.

One of the funds will invest in agriculture, forestry and environmental assets, while the nature-based carbon strategy will seek to create a pipeline of high-quality carbon credits for companies trying to reach net-zero emissions.

Just as investors have found opportunities to make money from the net-zero transition, some are now looking at how to benefit from initiatives aimed at halting nature decline and restoring biodiversity.

HSBC Asset Management and Pollination announced their joint venture in 2020 with the intention of creating the world’s largest natural capital manager and making natural capital a “mainstream” asset class. 

13 December 2022 / published on Bloomberg

“The competition isn’t sleeping. We know people see natural capital as an asset class.”

Christof Kutscher, Climate Asset Management CEO

Investors have committed $650 million to two so-called natural capital funds backed by HSBC Asset Management.

The funds are managed by Climate Asset Management, which is jointly owned by HSBC Holding Plc’s investment unit and climate change investment and advisory firm Pollination. One of the funds will invest in agriculture, forestry and environmental assets, while the nature-based carbon strategy will seek to create a pipeline of high-quality carbon credits for companies trying to reach net-zero emissions.

13 December 2022 / published on agri investor

The firm’s natural capital vehicle has invested in a 400ha regenerative almond project in Spain, while its carbon strategy has backed the two million ha Restore Africa initiative.