Nest appoints BTG Pactual Timberland Investment Group (“BTG Pactual TIG”) to invest in timberland

Nest, the UK’s largest workplace pension scheme by number of members, has announced the appointment of BTG Pactual Timberland Investment Group (BTG Pactual TIG), to help its over 13 million savers invest in timberland.
As part of the agreement, Nest has initially committed US$ 750 million (£550 million) to BTG Pactual TIG, one of the world’s largest timberland managers, to implement a strategy that provides exposure to sustainably managed timberland across key geographies in the Americas.

Timberland is already a well-established asset class for institutional investors, offering various
benefits:

• When managed correctly, timberland investments promote sustainable forestry practices, ensuring the responsible management of forest resources, preserving biodiversity, and maintaining ecosystems;
• 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 provides a renewable resource for a growing economy, from supplying construction materials to biodegradable packaging.

This appointment is the second timberland mandate awarded by Nest after a procurement process initiated in 2023.

Commenting on the appointment, Stephen O’Neill, Head of Infrastructure & Natural Capital at Nest, said:

“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.”

Gerrity Lansing, Head of BTG Pactual TIG, said:

“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.”