Dutch pension fund ABP has acquired a majority stake in a sustainably managed 70,000-hectare forest in the southern U.S.
The $462M investment is part of ABP’s broader plan to allocate $10.6B (€10B) to climate solutions and at least $1.1B (€1B) to projects that support biodiversity and nature restoration by 2030, according to a news release.
“Executing this first impact investment at scale under ABP’s renewed Private Natural Capital mandate marks an important milestone,” said Steven Hason, managing director and head of Americas real assets. “It reflects the kind of opportunity we aim to pursue for our client and sets a strong foundation for expanding their global private natural capital portfolio over the coming decade.”
Molpus Woodlands Group invests in U.S. timberland that it manages with value-creating responsible stewardship practices. The firm aims to use the property to expand conservation areas by designating new Forests with Exceptional Conservation Value (FECVs), establishing partnerships for species of concern, and enhancing harvest operations to support wildlife habitats.
The forest is expected to remove nearly 2M additional tons of carbon from the atmosphere over the next 15 years through sustainable management practices. Trees harvested for timber will be replanted, contributing to both long-term carbon capture and biodiversity.
The asset is undergoing measures to strengthen its ecological value, including designating areas as forests of “exceptional ecological value,” adapting harvesting methods to protect wildlife habitats, and increasing protection for endangered species, noted the release.
ABP said forest managers will be rewarded based on environmental outcomes such as increased carbon storage and expanded protected zones, reinforcing its focus on measurable climate and biodiversity results.
