Scottish Borders Council Pension Fund, Melrose, Scotland, hired Nuveen for its first allocation to natural capital assets, with an initial commitment to a timberland strategy.
A spokesperson said the size of the commitment was not disclosed.
The £900 million ($1.1 billion) local government pension fund committed to Nuveen's flagship global timberland strategy and will potentially make further allocations across the $1.1 trillion money manager's natural capital solutions, including forestry and farmland, a news release said.
The commitment is the latest step in the pension fund's move to decarbonize its portfolio.
"The pension fund's core objective is to provide our end investors with stable returns, and we are increasingly putting their capital to work to drive positive environmental and social outcomes," said David Parker, chair of the pension fund, in the news release. "The Nuveen global timberland strategy and its investment philosophy is fully aligned with these ambitions and will help us in our journey towards a more sustainable portfolio. Moreover, the depth of Nuveen's overall investment platform, the strategy's global scope and income profile were key factors in forming the partnership."
Nuveen, part of TIAA-CREF, manages more than $2.1 billion in timberland assets, comprising more than 873,000 acres of forestry around the world.
The strategy is managed by Chris Lipton, head of timberland investments at Nuveen, and supported by a senior management team in roles across regional portfolio management, research and sustainability.