Climate Asset Management Makes First U.S. Forestry Investment with Acquisition of 68,000 Acre Timberland Asset in Pacific Northwest alongside Co-Investors

Climate Asset Management is pleased to announce the successful completion of its first U.S. forestry investment, a 68,000 acre timberland asset in the Pacific Northwest.

• The acquisition is the first U.S. forestry investment by Climate Asset Management’s Natural Capital Fund I (NCF I), further diversifying the fund’s forestry portfolio.
• Located in Washington’s Olympic Peninsula, the acquisition will enable the transition of 68,000 acres of forestland to climate-smart management.
• The project aims to generate over one million tonnes of additional carbon removals over the next decade and has secured a long-term contract.
• NCF I partnered with a consortium of mission-aligned co-investors on the acquisition, assembled by EFM, an experienced local forestry management and investment firm, who will be managing the asset.

Climate Asset Management, the specialist asset management firm that is exclusively dedicated to natural capital, is pleased to announce the successful completion of its first U.S. forestry investment,  a 68,000 acre timberland asset in the Pacific Northwest. The acquisition, finalised in Q4 2024, was financed by Climate Asset Management’s Natural Capital Fund I (NCF I) alongside a consortium of mission-aligned co-investors.

This milestone investment on Washington’s Olympic Peninsula is expected to enable the transition of 68,000 acres of forestland to climate-smart management. By integrating sustainable forestry practices, carbon finance, and biodiversity conservation, this project represents an example of climate-smart investment that aligns ecological stewardship with commercial returns. It also demonstrates the growing sophistication of carbon finance in the forestry sector, with a long-term contract agreement negotiated in parallel with property acquisition. The project aims to generate over one million tonnes of additional carbon removals over the next decade, while also aiming to enhance timber stocks, forest health and collaboration with tribal communities. This acquisition reinforces Climate Asset Management’s commitment to scaling nature-based solutions that deliver long-term value for ecosystems, communities, and investors.

NCF I has partnered with EFM, an experienced forest management and investment firm, who will be managing the asset on behalf of the investor consortium. EFM negotiated the purchase of the asset, assembled the investor group, and contracted for the sale of carbon, enabling the acquisition of the asset from Rayonier Inc. (NYSE: RYN), a leading timberland real estate investment trust.

Ben O’Donnell, Chief Investment Officer of Climate Asset Management, commented:
“We are excited to have made our first U.S. forestry investment, an asset aligned with our Natural Capital Fund’s approach of targeting value from both commodity income and ecosystem services. The asset’s Improved Forest Management project is enabling long-term carbon contracts, strengthening commercial forestry operations for sustainable timber production and empowering significant habitat conservation and recreation initiatives.

The Olympic Rainforest property is a prime example of a natural capital investment that seeks to derive returns from both commercial activities and environmental stewardship, helping to rebalance institutional investors’ portfolios towards Net Zero and Nature Positive allocations.”

Carl Atkin-House, Head of the Natural Capital Strategy at Climate Asset Management, added:
“This is a significant milestone in the deployment of our first vintage’s capital: it is our first real asset investment in North America and complements well our existing regenerative agriculture and sustainable forestry investments in Europe, Australia and New Zealand.

We look forward to working with our local operating partner and stakeholders to demonstrate returns and impact at scale and deliver on our impact objectives across biodiversity, climate, water and community.”

ENDS

About Climate Asset Management

Climate Asset Management, a partnership between HSBC Asset Management and Pollination, delivers investment solutions that address climate change and biodiversity loss by mobilizing capital into natural capital and nature-based solutions. Through its Natural Capital and Nature-Based Carbon Strategies, the firm seeks to generate returns while also delivering measurable environmental and social impact.

Headquartered: 43 Whitfield St, London, W1T 4HD.
Amsterdam Office: Amsterdam Strawinskyhuis, Strawinskylaan 6, 1077 XZ Amsterdam
Luxembourg Office: 18 Boulevard do Kockelscheuer 1st Floor, L-1821, Luxembourg

For more information, visit www.climateassetmanagement.com

Media contacts

Kanika Sharma – Marketing and Communications | Climate Asset Management
kanika.sharma@climateassetmanagement.com

About EFM

EFM is an investment and management firm that acquires forests and implements climate-smart strategies in the Pacific Northwest and beyond. The firm has two decades of experience and manages more than 200,000 forestland acres and is expanding to markets where increased funding for climate benefits and ecosystem services can create a competitive advantage and deliver value to investors, local communities and the public.