Nest has extended its natural capital strategy by investing a $750m (£550m) in sustainable timberland across the Americas.
The workplace pension provider has appointed BTG Pactual Timberland Investment Group to run this portfolio — one of the world’s largest timberland managers. This appointment follows a procurement process initiated in 2023. This is the second mandate Nest has awarded to invest in timberland as an asset class.
Timberland is a well-established asset class for institutional investors, and will now be available to Nest 13m-plus members, offering various financial and environmental benefits.
Nest says that when managed correctly, timberland investments promote sustainable forestry practices — ensuring the responsible management of forest resources, preserving biodiversity, and maintaining ecosystems. It adds that forests can provide critical ecosystem services such as carbon capture, water filtration, soil preservation, and habitat for wildlife, enhancing the overall environmental value of the investment.
Timberland also provides a renewable resource for a growing economy, from supplying construction materials to biodegradable packaging.
Nest head of infrastructure and natural capital Stephen O’Neill says: “During the competitive procurement process, BTG Pactual TIG stood out with their strong track record in managing timberland assets at scale while prioritising environmental stewardship.
“Nest and BTG Pactual TIG share the belief that investing in a sustainable manner can achieve strong risk-adjusted returns.
“BTG Pactual TIG’s focus on sustainable forestry practices and commitment to maintain productive, respectful relationships with the local communities and workforce helped demonstrate that they are the right partner for Nest.
“With two timberland fund managers now in place, this will help further diversify Nest’s portfolio, supporting our broader goal of delivering strong, risk-adjusted returns to our 13 million members.”
BTG Pactual TIG head Gerrity Lansing adds: “We are proud to partner with Nest on this significant mandate. Our collaboration reflects a shared commitment to long-term value creation and sustainable land management. Through this bespoke strategy, we will apply our large-scale
timberland platform, on-the-ground expertise, and rigorous sustainability standards to seek to deliver financial and environmental outcomes for Nest and its members.”