British workplace pension scheme Nest has appointed JP Morgan’s timberland specialist investment group Campbell Global to manage a new fund. The government-backed direct contribution scheme said the fund would invest in “traditional core timberland” with a focus on sustainability. It will look for projects in key global markets including the US, Australia, New Zealand and Chile. Nest emphasised the positive environmental impacts of well-managed timberland, including carbon capture, water filtration, soil preservation, and habitat for wildlife – enhancing the overall environmental value of the investment. “We believe the importance of preserving natural capital will only increase in the coming years,” said Stephen O’Neill, Head of Private Markets at Nest. “Many aspects of our ecosystem such as forestry, water and agriculture are closely linked to climate change mitigation and adaptation. Achieving net-zero emissions by 2050 will require natural capital preservation.” O’Neill said the group had chosen Campbell Global out of a pool of 12 potential managers, having been persuaded “they want to be good stewards of the environment and the forests, and the communities around the forests”. Nest, the UK’s largest workplace pension provider by membership, has assets under management of around £37 billion (US$48.5 billion), and is growing swiftly thanks to the UK’s policy of auto-enrolling all employees into a pension scheme on an opt-out basis.
