Essex Pension Fund has made a £100m commitment to the Stafford Carbon Offset Opportunity Fund, which will deliver positive environmental benefits and help achieve its net-zero targets.
The Article 9 impact fund will develop new commercial timberland plantations and restore natural forests on a global basis.
Stafford Carbon Offset Opportunity Fund has a fundraising target of $1bn and is expected to invest in 200,000 hectares of sustainably managed timberland globally, generate 30m verified carbon offsets for investors and provide a source of sustainable, low-carbon timberland materials.
Essex Pension Fund is part of the Local Government Pension Scheme and the impact fund will contribute a significantly negative carbon intensity metric to its investment portfolio.
Cllr Susan Barker, Essex Pension Fund Strategy Board and Investment Committee’s chair, said: “The agreement of my fellow Investment Steering Committee members to invest in this fund reinforces our commitment to being responsible investors and the general direction the fund is taking in regard to our aspirations to have circa 10% of the fund invested in impactful investment solutions that delivers both positive environmental and social benefits that would not otherwise happen, which not only aligns with our Responsible Investment Policy and priorities, but our commitment to achieving net-zero targets in the future”.
The impact fund is managed by Stafford Capital Partners, an independent private markets investment and advisory firm with $7.5bn in assets under management.
Stephen Addicott, Stafford Timberland’s co-managing partner, said: “We are very grateful to the Essex Pension Fund for its support of the timberland asset class over many years. We welcome them into our new carbon offset opportunity fund, a strategy which we feel can make a meaningful contribution to the environment and society.”
—————
FREE weekly newsletters
Subscribe to Room151 Newsletters
Room151 LinkedIn Community
Join here
Monthly Online Treasury Briefing
Sign up here with a .gov.uk email address
Room151 Webinars
Visit the Room151 channel
