Highlights

• APG acquires majority stake in a 70,000-hectare US forest with Molpus Woodlands Group.
• Forest management plans include conservation areas, species protection, and carbon stock growth.
• This is part of ABP’s €11 billion climate and biodiversity strategy for 2030.

APG Asset Management has acquired a majority stake in a 70,000-hectare forest in the southern United States on behalf of the Dutch pension fund ABP.

The transaction, valued at $462 million, is one of the largest timberland deals in the country in recent years.

The forest will be managed using sustainable forestry practices aimed at increasing standing forest carbon by nearly 2 million tonnes over the next 15 years, which helps mitigate climate change.

Read More: SBTi Opens 30-Day Consultation on Deforestation and Emissions Standards

The purchase was made through Molpus Woodlands Group, a company that manages U.S. timberlands with responsible stewardship.

Plans for the forest include expanding conservation areas, designating Forests with Exceptional Conservation Value (FECVs), and creating partnerships to protect species at risk. Timber harvesting will continue, but in a fashion designed to support wildlife habitats and protect ecological value.

Under the terms of the deal, APG and Molpus introduced a performance mechanism that ties part of Molpus’s earnings to the achievement of measurable environmental outcomes.

The key indicators include increasing forest carbon stocks and adding new conservation areas. This structure links financial rewards directly to environmental impact to ensure that climate and biodiversity goals are the top priority in forest management.

“This investment demonstrates how we can deliver on our client’s ambition for real biodiversity and climate impact at scale without compromising on returns”, said Chris Martin, Portfolio Manager, Americas Private Natural Capital at APG Asset Management. “We’re proud to partner with Molpus on a structure that puts impact and performance on equal footing.”

Also Read: Mars Reduces GHG by 1.9% in 2024, While Growing Sales to $55B

“Executing this first impact investment at scale under ABP’s renewed Private Natural Capital mandate marks an important milestone”, says 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.”

Ends/

Looking for sustainability and ESG specialists to support your business?

Explore our ESG Marketplace, featuring over 800 providers who offer affordable solutions and services tailored to your business.

Stay updated with our Climate & Environment News for the latest insights.

Don’t miss our upcoming ESG Events for fresh perspectives.

Source: APG