HRH The Prince of Wales has joined forces with HSBC, Lombard Odier and Mirova to form a new Natural Capital Investment Alliance, under his Sustainable Markets Initiative.
This aims to accelerate the development of Natural Capital as an investment theme, engaging the investment management industry and private capital.
However the launch comes as a HSBC comes under pressure from environmental lobby group ShareAction and fifteen major institutional investors on how it plans to reduce exposure to fossil fuels to meet the Paris climate goals.
The three founding member of this new Natural Capital Alliance are HSBC Pollination Climate Asset Management, Lombard Odier and Mirova, an affiliate of Natixis Investment Managers.
This initiative was announced by Prince Charles at the One Planet Summit. The alliance aims to extend the number of initiatives which promote ‘natural capital’ as an investment opportunity. It says there is a need for a finance-led approach, that integrates ‘natural capital’ as an investment theme across different asset classes, as well as improved investor-centric descriptions of Natural Capital investment opportunities
Such an approach can help reduce emissions, address issues of biodiversity, climate change and boost sustainable economic growth and job creation. The Alliance says that half of global GDP depends on ‘natural capital’.
In order to meet these aims HSBC Pollination Climate Asset Management , a joint venture between HSBC Global Asset Management and specialist climate change advisory and investment firm Pollination, is establishing a series of Natural Capital funds, directly investing in the preservation, protection and enhancement of nature.
Launching this initiaitve His Royal Highness The Prince of Wales said: “The interdependence between human health and planetary health has never been more clear.
“For so many of the problems we face, nature, with the benefit of billions of years of evolution, has already provided us with the solutions. But time is fast running out and we are rapidly wiping out, through mass extinctions, many of nature’s unique treasure trove of species from which we can develop innovative and sustainable products for the future. As we urgently seek to rescue the situation, we must now look to invest in Natural Capital as the engine of our economy.
“It is also why I have created a Natural Capital Investment Alliance to help us arrive at a common language on Natural Capital Investment so that we can start putting money to work and improve the flow of capital.”
HSBC Pollination Climate Asset Management executive chairman Christof Kutscher adds: “We recognise nature is capital. Over the century, we have depleted nature creating possibly our biggest challenge to date. It is high time to take action at an unprecedented speed and scale. Investing in nature is a major investment opportunity, and the one action we must urgently take to protect our future.”
Clarence House was contacted for a comment regarding ShareAction’s comments on HSBC.