Scottish National Investment Bank commits £ 50million to forest management fund

The Scottish National Investment Bank has committed £ 50million to set up a new forest and forest management fund in Scotland.

He is a key investor in the Gresham House Forest Growth & Sustainability Fund, which will plant trees to capture 1.2 million tonnes of carbon dioxide emissions over the next 20 years.

It will also aim to generate stable returns through the sale of timber and capital growth of land and trees.

All trees harvested by the fund will be replanted and the wood products generated will help provide raw materials for more sustainable packaging and building materials.

The fund also aims to generate Forest Carbon Units (WCUs) to create additional value, or be used to offset carbon emissions on a voluntary basis.

Managing around 140,000 hectares of forest worth over £ 1.8 billion, Gresham House is the UK’s largest commercial forest manager.

The company is also running a forestry mandate in Ireland and plans to complete another international forestry mandate in Australia, subject to regulatory approval.

Eilidh Mactaggart, Managing Director of the Scottish National Investment Bank, said: “The new plantation element and the ability to generate carbon credits represent a new investment proposition that traditional investors have not yet fully embraced.

“The bank‘s core investment is designed to encourage other investors to follow us into this new type of forest fund.

Olly Hughes, Managing Director of Forestry at Gresham House, said: “This flexible strategy allows investors to choose whether to use the carbon credits generated for offsetting or to sell the units to generate income.

“As investors increasingly focus on sustainable investments, forestry is emerging as one of the most effective solutions, which combats climate change and improves biodiversity, while also serving as an excellent investment diversifier. and producing meaningful uncorrelated returns. “

Don’t miss the latest headlines with our twice daily newsletter – subscribe here for free.