BTG Pactual TIG Awarded $750 Million Sustainable Timberland Investment Mandate by Nest – ESG Today

UK pension scheme Nest introduced the appointment of BTG Pactual Timberland Funding Group (BTG Pactual TIG) to implement a technique offering its members with publicity to sustainably managed timberland throughout key geographies within the Americas. As a part of the settlement, Nest has dedicated an preliminary $750 million to BTG Pactual TIG.

The brand new appointment follows a procurement course of for fund managers initiated by Nest in 2023, geared toward enabling the pension scheme to offer entry to sustainably managed timberland. The announcement marks the second timberland mandate awarded by Nest, following the appointment final yr of J.P. Morgan Asset Administration’s timberland funding advisory firm Campbell World to ascertain a brand new evergreen timberland fund.

Alongside the appointment, Nest highlighted a number of the key funding and sustainability advantages of timberland administration as an asset class, noting that when managed appropriately, timberland investments promote sustainable forestry practices, making certain the accountable administration of forest sources, preserving biodiversity, and sustaining ecosystems, along with offering a renewable useful resource for makes use of starting from building supplies to biodegradable packaging.

Stephen O’Neill, Head of Infrastructure & Pure Capital at Nest, stated:

“Nest and BTG Pactual TIG share the idea that investing in a sustainable method can obtain robust risk-adjusted returns. BTG Pactual TIG’s concentrate on sustainable forestry practices and dedication to keep up productive, respectful relationships with the native communities and workforce helped display that they’re the suitable companion for Nest.”

BTG Pactual TIG was shaped in 2013 following the acquisition by funding financial institution BTG Pactual of timberland asset administration firms TTG Brasil and Areas Timberland Group. The corporate is among the largest world timberland funding managers, with 2.6 million acres below administration throughout the U.S., and Latin America and $7.3 billion in belongings and commitments. Nest stated that the agency stood out within the procurement course of for its “robust observe file in managing timberland belongings at scale whereas prioritising environmental stewardship.”

Gerrity Lansing, Head of BTG Pactual TIG, stated:

“We’re proud to companion with Nest on this important mandate. Our collaboration displays a shared dedication to long-term worth creation and sustainable land administration. By means of this bespoke technique, we are going to apply our large-scale timberland platform, on-the-ground experience, and rigorous sustainability requirements to hunt to ship monetary and environmental outcomes for Nest and its members.”