By Gerelyn Terzo, Global AgInvesting Media
The London Borough of Camden Pension Fund is strengthening its sustainability impact following its investment committee’s December 2025 approval to introduce a natural capital allocation of 5 percent alongside a renewable infrastructure allocation of 2.5 percent. The Camden pension, which oversees roughly £2.4 billion (USD 3.2billion) in assets under management, is aiming to achieve net zero by expanding its investment focus into natural capital and biodiversity.
The Camden pension appears determined to de-risk its portfolio by reducing its exposure to equities by 12 percentage points in favor of an allocation to natural capital and renewable energy infrastructure with a view toward diversification. The timeline for the implementation of these approved recommendations is early 2026, with initial commitments already underway via partner fund London CIV.
London CIV, the LGPS pooling vehicle overseeing assets for several dozen London boroughs and the city of London, has recently updated its partner funds on £255 million in foundational commitments to its natural capital initiative. The strategy emphasizes sustainably managed timberlands, with some exposure to farmland, via a £135 million allocation to Campbell Global’s Forest and Climate Solutions Fund, a £60 million allocation to Gresham House’s UK-oriented forestry fund, and a £60 million allocation to Manulife’s Timberland and Farmland Fund.
By directing capital toward natural carbon sequestration assets, the LGPS pool reportedly seeks environmental benefits, aiming for infrastructure-comparable returns of 6-8 percent net annually with a 2 percent cash yield, all while bolstering portfolio diversification.
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