Climate-focused Pollination expands into Asia

Pollination is targeting $6bn for a series of funds focused on natural carbon sequestration in a joint venture with HSBC Asset Management.

Pollination Group, a climate change investment and advisory firm, plans an “expansion into Asia… beginning with a focus on Singapore and Tokyo,” according to a statement from the firm. The expansion involves plans to open an office in Asia, a source familiar with the firm told affiliate publication New Private Markets.

Pollination, which is based in London, makes venture capital investments in natural carbon removal projects, sustainability projects for forests, land and agriculture, and decarbonization-focused companies. The firm also provides investment advisory services.

“Our clients span governments, businesses and public and private capital,” Pollination states on its website. “Using our broad experience, we help navigate the climate transition, and design and invest in breakthrough ideas that deliver financial returns.”

Two years ago, Pollination entered into a joint venture with HSBC Asset Management to establish Climate Asset Management (CAM), a series of funds targeting $6 billion. “The proposed group of funds will aim to attract capital from institutional investors, including sovereign wealth funds, pension funds and insurers into natural capital investments,” CAM said in an August 2020 press release.

HSBC Pollination Climate Asset Management Fund I launched last year with a target of $1 billion. HSBC has said it “intends to become a cornerstone investor” in the debut vehicle. HSBC Pollination Climate Asset Management Carbon Credit Fund is expected to launch this year with a $2 billion target.

Alongside the planned expansion into Asia, Pollination has appointed Diana Callebaut as the firm’s first head of investments. Callebaut was previously head of real assets and private markets at TCorp, New South Wales’ treasury, and head of infrastructure at Cbus Super Fund.

Other new hires include Shane Flatman, former chief operating officer at Blackrock Australia and OneVentures, who has joined Pollination as chief operating officer, and Rob Grant, former chief executive of Pacific Hydro and chair of the Clean Energy Investor Group, who has joined as head of projects.

In February, Australian bank ANZ invested $50 million in Pollination, buying about 12 percent of the firm’s equity. The investment was part of a planned $100 million Series B fundraising round for the firm, Pollination co-founder Martijn Wilder told affiliate publication Agri Investor in February.

Pollination did not respond to a request for comment.

Lawrence Aragon contributed to this story