17 Feb 2025
Biomimicry is a field that emulates designs and processes in nature to create new technologies and a greener future. Examples include adhesives inspired by gecko feet, metal detectors influenced by sharks, and night vision goggles drawn from snakes that can detect warm-blooded prey in complete darkness. As a fast-growing field with research and patents increasing rapidly, and supported by policy, this is nature investing with a twist.
Biomimicry observes how things work in nature by studying the forms (shapes & structures), processes (behaviours & methods) and systems (interdependence & ecosystems) of plants, animals and ecosystems, translating them into innovative and sustainable solutions. The field seeks to improve human-derived processes in areas including energy efficiency, sustainable materials and strength and durability.
By incorporating into wind turbine blades, a design similar to tubercles (bumps the size of golf balls) found on humpback whales, engineers can reduce drag as it allows the blades to spin faster with less resistance, generating 10% more electricity.[@why-esg-matters-01-1] [@why-esg-matters-01-2]
Whale-fin inspired wind turbine blades
Researchers studied the light-absorbing black wings of a certain butterfly, finding tiny, random holes that scatter sunlight for better absorption. By mimicking this design, researchers created thin silicon solar cells with similar holes which can absorb light regardless of the angle.[@why-esg-matters-01-3]
Butterfly wings inspired solar cells
Scientists are developing fabrics that mimic the lotus leaf’s self-cleaning properties, which helps to reduce water usage for washing, and ultimately reduces the fabric’s footprint.[@why-esg-matters-01-4]
Lotus leaf inspired fabrics
Biomimicry research has seen a surge in interest over the past three decades, as evidenced by a 60x increase (1995-2020) in research publications across a wide range of scientific disciplines such as materials science, chemicals and engineering. This shows the power of bio-inspiration, and the applicability of biomimicry in helping to advance science and technology.[@why-esg-matters-01-5]
However, not all biomimicry research is considered as sustainable. A 2023 study[@why-esg-matters-01-6] by Jatsch et al. finds “an urgent need to ramp up sustainable design within biomimetic research”. The study found that only 3% of biomimetics publications in 2016 related to sustainability, but this portion rose to 7% by 2020, indicating an increasing focus on sustainability in the field.
Of the research papers that do explicitly contribute to sustainability, many different areas are being explored with efficiency a key focus. Jatsch et al. also note that the largest contributors to carbon emissions globally (China, US, India, Europe) are also the lead contributors to biomimetics research that actively includes sustainability.
Classification of research publications (2004-21) into different sustainability aspects
There has also been a substantial increase in biomimicry patents since 2000.[@why-esg-matters-01-7] A 2023 study by Haejin Bae finds that “biomimicry technology is in a growth phase that is expected to continue in the future and that South Korea and the United States are leading the development of this technology”.
AI could accelerate progress in biomimicry and enable more accurate and complex analysis through data processing, simulation, modelling and pattern recognition.[@why-esg-matters-01-8] For instance, researchers at Arizona State University are turning their attention to social insects like ants and bees.[@why-esg-matters-01-8] By studying their behaviour – how these insects communicate, solve problems and adapt to their environment – researchers are designing robots that can work together in factories and other situations such as aiding in disaster areas.
The future for biomimicry appears positive as more policies are aimed at fostering innovation and sustainable development. More governments are now recognising the potential for biomimicry and are implementing national-level policy initiatives to support research and development in biomimicry.[@why-esg-matters-01-9]
We think policy support for biomimicry will grow as biodiversity continues to rise up the global agenda. For example, some emerging economies are exploring how to leverage their local biodiversity for innovation, to create supportive ecosystems for biomimicry R&D, and to facilitate international research collaboration.
One important angle is the integration of benefit-sharing frameworks that ensure the economic benefits derived from biomimicry are aligned with biodiversity conservation. This involves creating legal frameworks that protect biodiversity hotspots, ensuring that biomimicry practices don’t harm natural ecosystems.
As we continue to discover the vast potential of biomimicry, its impact will undoubtedly continue to grow, pushing advancements across diverse sectors and technologies. The Biomimicry Institute has a Ray of Hope Prize Accelerator[@why-esg-matters-01-10] offering support for “high-impact nature-inspired startups”. Companies and investors that embrace these technologies can become frontrunners in shaping a more sustainable future.
With consumers increasingly looking for more sustainable solutions, biomimicry presents a natural investment opportunity. By investing in bio-inspired technologies, investors and corporates can not only achieve potential financial gains but also become catalysts for positive change as they help to drive the transition towards a greener economy and a healthier planet.
This document is prepared by The Hongkong and Shanghai Banking Corporation Limited (‘HBAP’), 1 Queen’s Road Central, Hong Kong. HBAP is incorporated in Hong Kong and is part of the HSBC Group. This document is distributed by HSBC Bank (China) Company Limited, HBAP, HSBC Bank (Singapore) Limited, HSBC Bank (Taiwan) Limited, HSBC Bank Malaysia Berhad (198401015221 (127776-V))/HSBC Amanah Malaysia Berhad (200801006421 (807705-X)), The Hongkong and Shanghai Banking Corporation Limited, India (HSBC India), HSBC Bank Middle East Limited, HSBC UK Bank plc, HSBC Bank plc, Jersey Branch, and HSBC Bank plc, Guernsey Branch, HSBC Private Bank (Suisse) SA, HSBC Private Bank (Suisse) SA DIFC Branch, HSBC Private Bank Suisse SA, South Africa Representative Office, HSBC Financial Services (Lebanon) SAL, HSBC Private banking (Luxembourg) SA, HSBC FinTech Services (Shanghai) Company Limited and The Hongkong and Shanghai Banking Corporation Limited and HSBC Mexico, S.A. Multiple Banking Institution HSBC Financial Group (collectively, the “Distributors”) to their respective clients. This document is for general circulation and information purposes only. This document is not prepared with any particular customers or purposes in mind and does not take into account any investment objectives, financial situation or personal circumstances or needs of any particular customer. HBAP has prepared this document based on publicly available information at the time of preparation from sources it believes to be reliable but it has not independently verified such information. The contents of this document are subject to change without notice. HBAP and the Distributors are not responsible for any loss, damage or other consequences of any kind that you may incur or suffer as a result of, arising from or relating to your use of or reliance on this document. HBAP and the Distributors give no guarantee, representation or warranty as to the accuracy, timeliness or completeness of this document. This document is not investment advice or recommendation nor is it intended to sell investments or services or solicit purchases or subscriptions for them. You should not use or rely on this document in making any investment decision. HBAP and the Distributors are not responsible for such use or reliance by you. You should consult your professional advisor in your jurisdiction if you have any questions regarding the contents of this document. You should not reproduce or further distribute the contents of this document to any person or entity, whether in whole or in part, for any purpose. This document may not be distributed to any jurisdiction where its distribution is unlawful.
The following statement is only applicable to HSBC Bank (Taiwan) Limited with regard to how the publication is distributed to its customers: HSBC Bank (Taiwan) Limited (“the Bank”) shall fulfill the fiduciary duty act as a reasonable person once in exercising offering/conducting ordinary care in offering trust services/business. However, the Bank disclaims any guaranty on the management or operation performance of the trust business.
The following statement is only applicable to by HSBC Bank Australia with regard to how the publication is distributed to its customers: This document is distributed by HSBC Bank Australia Limited ABN 48 006 434 162, AFSL/ACL 232595 (HBAU). HBAP has a Sydney Branch ARBN 117 925 970 AFSL 301737.The statements contained in this document are general in nature and do not constitute investment research or a recommendation, or a statement of opinion (financial product advice) to buy or sell investments. This document has not taken into account your personal objectives, financial situation and needs. Because of that, before acting on the document you should consider its appropriateness to you, with regard to your objectives, financial situation, and needs.
The following statement is only applicable to HSBC Mexico, S.A. Multiple Banking Institution HSBC Financial Group with regard to how the publication is distributed to its customers: This publication is distributed by Wealth Insights of HSBC México, and its objective is for informational purposes only and should not be interpreted as an offer or invitation to buy or sell any security related to financial instruments, investments or other financial product. This communication is not intended to contain an exhaustive description of the considerations that may be important in making a decision to make any change and/or modification to any product, and what is contained or reflected in this report does not constitute, and is not intended to constitute, nor should it be construed as advice, investment advice or a recommendation, offer or solicitation to buy or sell any service, product, security, merchandise, currency or any other asset.
Receiving parties should not consider this document as a substitute for their own judgment. The past performance of the securities or financial instruments mentioned herein is not necessarily indicative of future results. All information, as well as prices indicated, are subject to change without prior notice; Wealth Insights of HSBC Mexico is not obliged to update or keep it current or to give any notification in the event that the information presented here undergoes any update or change. The securities and investment products described herein may not be suitable for sale in all jurisdictions or may not be suitable for some categories of investors.
The information contained in this communication is derived from a variety of sources deemed reliable; however, its accuracy or completeness cannot be guaranteed. HSBC México will not be responsible for any loss or damage of any kind that may arise from transmission errors, inaccuracies, omissions, changes in market factors or conditions, or any other circumstance beyond the control of HSBC. Different HSBC legal entities may carry out distribution of Wealth Insights internationally in accordance with local regulatory requirements. HSBC specifically prohibits the redistribution of this material and is not responsible for any actions that third parties may take to and/or with it.
Important Information about the Hongkong and Shanghai Banking Corporation Limited, India (“HSBC India”)
HSBC India is a branch of The Hongkong and Shanghai Banking Corporation Limited. HSBC India is a distributor of mutual funds and referrer of investment products from third party entities registered and regulated in India. HSBC India does not distribute investment products to those persons who are either the citizens or residents of United States of America (USA), Canada or New Zealand or any other jurisdiction where such distribution would be contrary to law or regulation.
The material contained in this document is for general information purposes only and does not constitute investment research or advice or a recommendation to buy or sell investments. Some of the statements contained in this document may be considered forward looking statements which provide current expectations or forecasts of future events. Such forward looking statements are not guarantees of future performance or events and involve risks and uncertainties. Actual results may differ materially from those described in such forward-looking statements as a result of various factors. HSBC India does not undertake any obligation to update the forward-looking statements contained herein, or to update the reasons why actual results could differ from those projected in the forward-looking statements. Investments are subject to market risk, read all investment related documents carefully.
Important information about ESG and Sustainable Investing
In broad terms "ESG and sustainable investing" products include investment approaches or instruments which consider environmental, social, governance and/or other sustainability factors to varying degrees. Certain instruments we classify as ESG or sustainable investing products may be in the process of changing to deliver sustainability outcomes. There is no guarantee that ESG and Sustainable investing products will produce returns similar to those which don’t have any ESG or sustainable characteristics. ESG and Sustainable investing products may diverge from traditional market benchmarks. In addition, there is no standard definition of, or measurement criteria for, ESG and Sustainable investing or the impact of ESG and Sustainable investing products. ESG and Sustainable investing and related impact measurement criteria are (a) highly subjective and (b) may vary significantly across and within sectors.
HSBC may rely on measurement criteria devised and reported by third party providers or issuers. HSBC does not always conduct its own specific due diligence in relation to measurement criteria. There is no guarantee: (a) that the nature of the ESG / sustainability impact or measurement criteria of an investment will be aligned with any particular investor’s sustainability goals; or (b) that the stated level or target level of ESG / sustainability impact will be achieved. ESG and Sustainable investing is an evolving area and new regulations and coverage are being developed which will affect how investments can be categorised or labelled. An investment which is considered to fulfil sustainable criteria today may not meet those criteria at some point in the future.
When we allocate an HSBC ESG and Sustainable Investing (SI) classification: HSBC ESG Enhanced, HSBC Thematic or HSBC Impact to an investment product, this does not mean that all individual underlying holdings in the investment product or portfolio individually qualify for the classification. Similarly, when we classify an equity or fixed income under an HSBC ESG Enhanced, HSBC Thematic or HSBC Impact category, this does not mean that the underlying issuer’s activities are fully aligned with the relevant ESG product or sustainable characteristics attributable to the classification. As such, an SI classification does not mean that all underlying holdings in a fund meet the relevant sustainable investment criteria. Not all investments, portfolios or services are eligible to be classified under our ESG and SI classifications. This may be because there is insufficient information available or because a particular investment product does not meet HSBC’s SI classifications criteria.
Today we finance a number of industries that significantly contribute to greenhouse gas emissions. We have a strategy to help our customers to reduce their emissions and to reduce our own. For more information visit www.hsbc.com/sustainability
