NatWest Cushon has confirmed it will make a 2 per cent allocation to ‘natural capital’ by investing in a carbon removal fund.
This allocation is part of its sustainable investment strategy that will see it invest in Aviva Investors Carbon Removal Fund. This fund invests directly in nature-based and engineered carbon removal solutions, including afforestation and restoration projects, as well as commercial forestry, venture capital and private equity-based nature tech, both in the UK and globally.
The fund aims to invest in assets and projects that can provide measurable co-benefits, such as biodiversity enhancement, species protection and reintroduction, improved water quality, employment and public access, while also delivering returns for investors.
This investment follows the decision last year by Cushon Master Trust’s trustees to approve an allocation to natural capital.
NatWest Cushon was a major investor in the UK’s first LTAF, Schroders Capital Climate+, building the pension scheme’s private assets exposure.
It also recent signed the Mansion House Accord, agreeing to invest up to 10 per cent of its main default in private markets, half of which will be in the UK .
NatWest Cushon CIO Veronica Humble says: “It’s great to add diversity to our strategy and continue to lead the way in private assets, but first and foremost this is about the investment case and the range of benefits natural capital adds to the wider strategy for our members.
“Our climate framework assesses real-world decarbonisation and portfolio resilience as well as portfolio decarbonisation. Natural capital contributes to all of these objectives over the long term. Many climate scenarios incorporate future increases in carbon prices, so we were searching for a fund positively correlated to those increasing prices over the long-term.
Aviva Investors chief distribution officer Jill Barber adds: “We are absolutely delighted that our Carbon Removal Fund will form a part of NatWest Cushon’s sustainable investment strategy. We look forward to contributing towards the long-term investment outcomes of its members whilst playing a key role in supporting its broader sustainability ambitions.”
Mobius Life is the appointed platform provider for NatWest Cushon’s investment portfolio. Its chief operating officer, James King, adds: “Onboarding the Aviva Carbon Removal fund to our platform further underscores our commitment to modernising investment operations and expanding private markets investment access through daily-dealing solutions designed for DC investors.”
