February 24, 2022

By Lynda Kiernan-Stone, Global AgInvesting Media

ANZ, the largest bank serving institutional and large-scale customers across Australia and New Zealand, has agreed to invest US$50 million in Australian specialist climate change advisory and investment firm Pollination in exchange for a minority stake.

This investment is part of Pollination’s Series B, and will be the foundation for a strategic partnership between the two parties to deliver innovative solutions and opportunities that drive the transition to net zero and that support greater biodiversity.

This partnership and capital commitment will unite ANZ’s institutional banking strength across Asia Pacific with Pollination’s expertise in climate finance, asset management, carbon projects, and environmental sustainability-focused advisory capabilities.

Co-founded by Tony O’Sullivan and Martijn Wilder AM in 2019, Pollination has 120 experts operating across 13 countries to work with corporate, government, and financial institutions to design, implement, and finance shifts into nature-positive business models and to foster net-zero evolutions.

Among the team are members who have played key roles in decarbonization and natural solutions initiatives including the development of the Paris Agreement and negotiating coalitions to the United Nations Framework Convention on Climate Change (UNFCCC), and have served in leadership positions for Australia’s national green finance and climate innovation institutions such as ARENA and the Clean Energy Finance Corporation (CEFC).

Joining Pollination will be ANZ, a financial market leader in Australia, New Zealand, and across Asia Pacific that took part in approximately 5 percent of the world’s global sustainable finance deal volume in 2021, according to data from Bloomberg and ANZ. Last year also saw the business participate in 81 deals representing a total transaction size of AUD$119 billion (US86 billion).

Martijn Wilder commented, “Strategic partnerships are core to Pollination’s impact model – they extend our reach and scale far beyond what we could achieve alone. ANZ has a strong track record of delivering innovative sustainable finance products. With a presence in 14 markets across Asia, it has exceptional reach where investment in decarbonisation and nature is both critically important and a huge opportunity.”

Indicative of how partnerships are core to Pollination’s impact model, in August 2020, Pollination partnered with HSBC Global Asset Management Limited to form a joint venture called HSBC Pollination Climate Asset Management – or what would be the first large-scale venture to bring natural capital as an asset class into the mainstream, and the largest natural capital manager in the world.

GAI News had the privilege of speaking with Martijn Wilder in 2020 to learn more about the venture, its vision for its funds, and the natural capital investment space. 

Created with the intent of attracting large-scale investment into natural capital assets from sovereign wealth funds, pension funds, institutional investors, and insurers, HSBC plans to be a cornerstone investor in this initial vehicle that will be looking to raise up to $1 billion. A second carbon credit fund is to follow, with a funding goal of up to $2 billion.

“Clients are increasingly focused on environmental matters, and this initiative is designed to help them achieve a financial return while at the same time creating a positive impact on the world’s biodiversity, which will be felt for generations to come,” said Nicolas Moreau, Global CEO, HSBC Global Asset Management.

Turning the lens onto Pollination’s new partnership with ANZ, the venture will focus on the transition needs of ANZ’s customers across four pillars: Sustainable Finance, Project & Export Finance, Carbon Markets, and Corporate Advisory. And as part of the deal, ANZ will gain a seat on Pollination’s Board.

“We’re pleased to be partnering with a team that has strong climate finance and investment expertise, deep relationships and commercial momentum,” said Mark Whelan, Group Executive Institutional, ANZ Group. “These credentials, combined with ANZ’s long-standing leadership position in sustainable finance and debt capital markets, will bring significant opportunities for our customers.”

He continued, “This partnership also underpins ANZ’s strategy to support customers in the transition to net zero, while helping cement our position as a leading Environmental Sustainability bank in the region.”

Wilder added, “ANZ’s investment unlocks capital to accelerate Pollination’s own investment strategies, and the strategic partnership will deliver the next generation of sustainable finance products, at significant scale throughout Asia Pacific.”

*The content put forth by GAI News and its parent company HighQuest Partners is intended to be used and must be used for informational purposes only. All information or other material herein is not to be construed as legal, tax, investment, financial, or other advice. GAI and HighQuest Partners are not a fiduciary in any manner, and the reader assumes the sole responsibility of evaluating the merits and risks associated with the use of any information or other content on this site.

– Lynda Kiernan-Stone is editor with GAI Media, and is managing editor and daily contributor for Global AgInvesting’s AgInvesting Weekly News and  Agtech Intel News, as well as HighQuest Group’s Oilseed & Grain News. She can be reached at lkiernan-stone@globalaginvesting.com.