UK master trust invests in Aviva Investors’ Carbon Removal Fund
NatWest Cushon has committed to allocating 2% of its assets to the Aviva Investors Carbon Removal Fund, following the its trustees approving exposure to natural capital last year.
The workplace pensions fintech agreed the investment in natural capital as part of its sustainable investment strategy, after recently signing the Mansion House Accord.
Aviva Investors launched the Carbon Removal Fund in October 2024. It was seeded with an initial commitment from Aviva’s Investment, Wealth and Retirement business. It conforms with Article 9 under the Sustainable Finance Disclosure Regulation framework.
The fund aims to deliver attractive investment returns while supporting long-term net zero ambitions. It invests directly in nature-based and engineered carbon removal solutions and aims to provide measurable environmental co-benefits.
NatWest Cushon CIO Veronica Humble recently set out her private markets strategy in PMP, including the finalisation of its work on natural capital.
She said on the announcement: “It’s great to add diversity to our strategy and continue to lead the way in private assets, but first and foremost this is about the investment case and the range of benefits natural capital adds to the wider strategy for our members.
Natural capital includes natural assets such as land, water, air, soil and living things. The Aviva Carbon Removal Fund is evaluating opportunities in peatland restoration, carbon sequestration and forestry investments. Cushon said a UK project is on the horizon, among other international deals.
She added: “Our climate framework assesses real-world decarbonisation and portfolio resilience as well as portfolio decarbonisation. Natural capital contributes to all of these objectives over the long term. Many climate scenarios incorporate future increases in carbon prices, so we were searching for a fund positively correlated to those increasing prices over the long-term.”
NatWest Cushon was a major investor in the UK’s first LTAF, Schroders Capital Climate+, the foundation of the pension scheme’s private assets exposure.
Jill Barber, chief distribution officer at Aviva Investors, said: “We look forward to contributing towards the long-term investment outcomes of its members while playing a key role in supporting its broader sustainability ambitions.”
James King, COO of Mobius Life, NatWest Cushon’s investment platform provider, added: “Onboarding the Aviva Carbon Removal fund to our platform further underscores our commitment to modernising investment operations and expanding private markets investment access through daily-dealing solutions designed for DC investors.”