LGPS Fund Increases Investment in Forestry Asset Class
SYPA Embraces Forestry Investments in Pursuit of Net Zero Goals
The South Yorkshire Pensions Authority (SYPA) has given a mandate to Campbell Global, a part of J.P. Morgan Asset Management, to explore opportunities in forestry investments. This move is in line with the growing trend among investors to support natural capital strategies as a means to achieve net zero emissions.
Investors have shown a strong appetite for these strategies due to their alignment with climate goals, uncorrelated return profiles, and inflation protection benefits. Fundraising data reveals that natural capital fundraising hit a record high of $7.9 billion in the first half of 2025, driven by investor interest in climate-aligned assets.
George Graham, director at SYPA, has expressed his support for forestry as a component of their natural capital allocation. He emphasizes that forestry investments by SYPA are not only in line with their commitment to combating climate change but also align with their investment strategy. The value of these investments is highly appreciated by SYPA's pension scheme members, according to Graham.
SYPA has already allocated £50m to a forestry fund managed by Gresham House. The strategy focuses on projects that sequester carbon, generating instruments representing the reduction or removal of greenhouse gases equivalent to one metric tonne of carbon dioxide.
Gresham House, known for its acquisitions in Scotland and Wales, manages the fund. However, the specific forestry fund managed by Gresham House is not specified in this paragraph.
George Graham also highlights that forestry investments by SYPA are in line with their commitment to enhancing biodiversity. This sentiment is shared by other institutions, as evidenced by the Local government pension fund in the UK, which has committed $100m (approximately £80m) to a forestry strategy.
SYPA is part of the Border to Coast pool, and Campbell Global's forestry strategy invests in global forestry assets. Forestry, according to George Graham, provides a resilient and diversified source of returns, making it an attractive investment option for long-term, climate-aligned returns.
In summary, the investor community, particularly those dedicated to sustainability and net zero transitions, tends to view forestry and other natural capital investments favorably as offering a balanced profile of impact and financial return, not deeply divided but rather supportive.
- SYPA's investment in a forestry fund, managed by Gresham House, is part of their commitment to environmental science and climate-change, as it focuses on projects that sequester carbon and generates instruments representing the reduction or removal of greenhouse gases.
- Forestry investments, like the one initiated by SYPA, not only serve to combat climate change and enhance biodiversity but also provide a resilient and diversified source of returns, making them an attractive investment option for long-term, climate-aligned business ventures.
