This investment primarily aligns to our net zero mission and supports our innovation mission.
The fund is focussed on wide scale new planting and is forecast to sequester 1.2m tonnes of CO2. Further there is a commitment to sustainable forestry management promoting climate resilience, protecting biodiversity and restoring ecosystems. The fund will also provide sustainable building materials and help to displace steel and other carbon intensive products in building and construction.
In addition, there are environmental benefits from biodiversity, flood defence, improved air quality, reduced soil erosion and outdoor recreation. The investment will also support existing and new jobs in rural Scotland.
Eilidh Mactaggart, CEO of the Scottish National Investment Bank:
“The Bank is delighted to cornerstone this new sustainable forestry fund focussed on new and diverse planting in Scotland.
Gresham House is an experienced forestry fund manager, and we are very excited to support them in this new venture. The new planting element and ability to generate carbon credits represents a novel investment proposition which mainstream investors have yet to fully embrace.
The Bank’s cornerstone investment is designed to encourage other investors to follow us into this new type of forestry fund. We therefore believe this opportunity to be an excellent fit for the Bank’s ambition to lead the way on innovative mission aligned investments.”
Olly Hughes, Managing Director, Forestry, Gresham House Asset Management:
“This impressive first close is a testament to Gresham House’s long-standing track record in the forestry space and the Bank’s cornerstone investment will help to catalyse further investment in this asset class from institutional and private client investors.
This flexible strategy allows investors to choose to use the carbon credits generated for offsetting purposes or sell the units to create an income.
As investors increasingly focus on sustainable investments, forestry is emerging as one of the most impactful solutions, which combats climate change and enhances biodiversity, while also serving as an excellent investment diversifier and producing meaningful uncorrelated returns.