Scottish Borders makes first investment into natural capital assets

Scottish Borders Council Pension fund has made its first investment into natural capital assets by joining up with Nuveen with a commitment to its Global Timberland strategy.

The undisclosed investment represents the pension fund’s latest move in advancing its commitment to reducing carbon emissions within its portfolio. This initiative focuses on investing in solutions that not only generate attractive returns for members but also contribute to positive environmental and societal outcomes.

The aim of the strategy is to deliver consistent, long-term risk-adjusted returns, along with regular income yields. This is achieved through a portfolio composed of top-tier timberland assets. The strategy offers investors the flexibility to modify their allocations as needed. Additionally, it emphasises sustainability and includes standardised carbon reporting as a key feature.

David Parker, Scottish Borders Council Pension Fund chair councillor, commented: “The pension fund’s core objective is to provide our end investors with stable returns, and we are increasingly putting their capital to work to drive positive environmental and social outcomes. The Nuveen Global Timberland Strategy and its investment philosophy is fully aligned with these ambitions and will help us in our journey towards a more sustainable portfolio.

“Moreover, the depth of Nuveen’s overall investment platform, the strategy’s global scope and income profile were key factors in forming the partnership.”

Matthew Hamber, UK institutional business development at Nuveen, said: “Natural capital solutions continue to be of interest amongst LGPS investors as they seek to decarbonise their portfolios and solutions to achieving net zero targets. Our partnership with Scottish Borders is a major milestone for our global timberland strategy and is further indication that UK institutional investors see the full range of benefits of allocating to natural capital as an asset class.

“We look forward to deepening our partnership with the Scottish Borders Council Pension Fund and working as a solutions provider to meet both its investment and climate-based targets.”