Nuveen targets timberland with fund launch

Global demand for timber expected to grow by 200% by 2050

Nuveen has introduced a timberland fund to its range targeting a net total return of 5-7% per annum.

The Nuveen Global Timberland strategy will invest in sustainable timberland investments in the US, Chile, Uruguay, Canada, New Zealand and Australia. Nuveen said the strategy is a natural climate solution to reduce carbon emissions by producing more timber on less land, reducing emissions through efficient operating practices and sequestering and storing carbon in soil and trees. The Wuppertal Institute for Climate, Environment and Energy estimates global demand for timber will grow by up to 200% by 2050.

Martin Davies, head of Nuveen Natural Capital, said: “Timberland is an intrinsic investment in natural capital assets. With trees storing carbon it is a proven and low-cost technology to remove greenhouse gas emissions from the atmosphere. As economies transition to low carbon, sustainable timber is a crucial material in replacing carbon intensive steel and concrete in building construction. This is one of the many factors that position timberland to deliver both attractive returns and climate solutions for clients.”

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Natalie Kenway

Natalie is global head of ESG insight for ESG Clarity and has been an investment journalist for 16 years. She won Editor of the Year at the Aviva Investors Sustainability Media Awards 2021, and was Winner...