Denmark’s Velliv has invested DKK 2bn in certified forests, with the first billion krone allocated to Manulife Investment Management.

Manulife Investment Management has already begun selecting forest areas in North America and Oceania and will invest the money over the next five to seven years.
The second half of the investment is expected to be allocated to a further three managers over the course of two to three years.

Commenting, Velliv head of alternative investments, Christoph Junge, said: "Forests are not typically the first thing that comes to mind when thinking about pension investments, but it is a really interesting asset class in that it is a long-term investment that syncs well with pension savings. At the same time we can invest in certified sustainable forestry that takes into account and ensures a balance between the environment, social conditions and the economy over time.”

The forest investments are expected to live up to the EU taxonomy and thus count towards the 20 per cent of assets that support the green transition, which Velliv aims to invest in towards 2030.

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