UK-based pension fund Nest has appointed BTG Pactual Timberland Investment Group (BTG Pactual TIG) to manage a sustainable timberland investment strategy, marking a significant step in providing Nest’s members with diversified exposure to responsibly managed forest assets across critical regions in the Americas. Nest has committed an initial allocation of $750 million to BTG Pactual TIG, underscoring its increasing focus on natural capital and sustainability-driven investments.

Strategic Procurement and Growing Interest in Timberland Assets

The appointment follows a rigorous procurement process launched by Nest in 2023, seeking to identify fund managers capable of delivering strong financial returns alongside environmental and social value through timberland investments. This latest mandate is Nest’s second in the timberland space, following last year’s selection of Campbell Global, the timberland advisory arm of J.P. Morgan Asset Management, which is tasked with establishing an evergreen timberland fund for the pension scheme.

Nest’s pursuit of timberland investments aligns with broader institutional investor trends recognizing the asset class’s potential to provide stable, inflation-linked returns while promoting sustainable land use and biodiversity conservation. As such, timberland offers a unique blend of economic resilience and positive environmental impact, which appeals to investors seeking to balance risk, return, and sustainability.

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Sustainability Benefits and Environmental Stewardship

Nest emphasized that properly managed timberland investments encourage sustainable forestry practices that maintain forest health, preserve biodiversity, and safeguard ecosystem services. These forests also serve as renewable sources of materials, supporting industries such as construction and biodegradable packaging, which contribute to the transition toward a circular economy.

Stephen O’Neill, Head of Infrastructure & Natural Capital at Nest, commented on the partnership: “Nest and BTG Pactual TIG share a fundamental belief that sustainable investing can deliver robust risk-adjusted returns. BTG Pactual TIG’s strong commitment to sustainable forestry and their respectful engagement with local communities and workers was a key factor in their selection as our partner.”

BTG Pactual TIG: A Leader in Timberland Investment

BTG Pactual TIG was formed in 2013 following BTG Pactual’s acquisition of timberland managers TTG Brasil and Regions Timberland Group. The firm has since grown into one of the largest timberland investment managers globally, overseeing approximately 2.6 million acres of timberland across the United States and Latin America. With $7.3 billion in assets and commitments, BTG Pactual TIG combines extensive operational experience with a robust sustainability framework.

Nest highlighted BTG Pactual TIG’s track record of managing timberland portfolios at scale while prioritizing environmental stewardship, social responsibility, and sound governance practices as a decisive advantage in the selection process.

Commitment to Long-Term Value Creation and Community Engagement

Gerrity Lansing, Head of BTG Pactual TIG, expressed enthusiasm about the collaboration: “We are proud to partner with Nest on this significant mandate. Our joint commitment to long-term value creation and sustainable land management reflects a shared vision for balancing financial performance with environmental and social responsibility. Through this bespoke strategy, we will leverage our large-scale timberland platform, on-the-ground expertise, and rigorous sustainability standards to generate meaningful financial and environmental outcomes for Nest and its members.”

BTG Pactual TIG’s approach integrates best practices in sustainable forestry management, including adherence to certification standards, biodiversity conservation, and proactive community engagement. The firm works closely with local stakeholders to ensure that timberland operations contribute positively to regional economies and ecological resilience.

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Outlook for Sustainable Timberland Investing

The partnership between Nest and BTG Pactual TIG underscores a growing institutional commitment to natural capital investments as a means of achieving both financial and environmental goals. Timberland assets are increasingly viewed as vital components of diversified portfolios, offering inflation protection, stable cash flows, and measurable positive impact on climate mitigation and ecosystem services.

Nest’s expanded focus on sustainable timberland aligns with global efforts to promote responsible investment and combat climate change, reflecting the evolving expectations of pension scheme members and regulators alike.

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