The Scottish National Investment Bank is committed to impact investing, aiming to achieve both commercial returns and meaningful environmental benefits through its capital allocations. A significant part of this initiative involves partnering with the Gresham House Forest Growth & Sustainability Fund, which focuses on managing 140,000 hectares of forested land.
Eilidh Mactaggart, CEO of the Scottish National Investment Bank, emphasized the importance of their cornerstone investment. She stated, “This investment serves to inspire other investors to explore this innovative forestry fund. We are confident this aligns perfectly with our goal to pioneer mission-driven investment strategies.”
To generate returns, the bank plans to sell timber from these woodlands. Importantly, harvested trees will be replanted, ensuring sustainability while providing raw materials for eco-friendly packaging and construction materials.
Additionally, the initiative aims to create Woodland Carbon Units (WCU), representing one tonne of CO2 sequestered in WCC-verified woodlands. These credits can be utilized to offset carbon emissions voluntarily. Olly Hughes, Managing Director of Forestry at Gresham House, explained, “This adaptable strategy offers investors the option to either use generated carbon credits for offsets or sell them for additional income.”
This combination of new planting and carbon credit generation presents a fresh investment opportunity that mainstream investors have yet to fully explore. Through these efforts, the bank aims to enhance biodiversity, improve air quality, reduce soil erosion, and potentially capture an estimated 1.2 million tonnes of CO2 over the next two decades, significantly contributing to Scotland’s environmental goals.