Climate Asset Management secures more than $1bn for natural capital funds

Climate Asset Management, the natural capital joint venture between HSBC Asset Management and Pollination, has reached a final close for its Natural Capital Fund and Nature Based Carbon Fund. Alongside Apple’s Restore Fund, the platform has now raised more than $1bn (€897m) for natural capital projects.

Commitments have been received from a geographically diverse range of financial institutions and global corporations, with HSBC acting as anchor investor across the platform.

The Natural Capital Fund targets financial returns alongside improved environmental outcomes from real asset investments in regenerative agriculture, sustainable forestry and environmental assets across developed markets.

The fund has attracted investment from pension funds and insurance companies, including German insurer Gothaer, which has committed $100m.

The Nature Based Carbon Fund targets the generation of carbon credits from large-scale landscape restoration and conservation projects that aim to deliver climate resilience, biodiversity improvements and community benefits in developing economies.

The fund has attracted investment from global corporations with published net-zero targets, including GSK, Tokyo gas and Carrier.

The second phase of the Restore Fund, which was designed by Apple and Climate Asset Management, adopts a blended approach across both strategies, targeting a financial return and carbon credits from carbon removals.

As part of Apple’s Restore Fund, it is open to investment from Apple’s supply chain, helping to address unavoidable residual emissions with high-quality carbon removal. 

Climate Asset Management said it has “rapidly deployed capital raised”, with a significant proportion of the aggregate committed to “high quality natural capital projects” with the potential to improve more than two million hectares of global landscapes.

Climate Asset Management said its fundraising would recommence in 2025 “with strategies focused on natural capital real assets”.

Martin Berg, chief executive officer of Climate Asset Management, said: “Reaching the milestone of our first $1bn of commitments is a testimony to the vision of our founding shareholders and team. It is a huge vote of confidence for this new and emerging asset class from those forward-thinking organisations and institutional investors who have entrusted us with their investments and are committed to restoring biodiversity and repairing nature as they pursue their own decarbonisation strategies.

“I would like to thank all our LPs and our shareholders for their trust and vision and our first-rate multinational team for their passion, hard work and commitment. Nature has for too long been taken for granted and we owe it to future generations to make amends and ensure that climate resilience and biodiversity gains are the principal objectives of our real asset portfolio offering a sustainable future for all.

“Importantly, we’ve been able to demonstrate that this capital can be deployed in a way that we expect will achieve investment objectives while enhancing outcomes for the climate, nature and communities.”

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