Natwest Cushon has announced plans to invest in natural capital, with its Sustainable Investment Strategy committing to a 2 per cent allocation to the Aviva Investors Carbon Removal Fund.

The fund aims to deliver attractive investment returns whilst also supporting institutional investors’ long-term net-zero ambitions.

It invests directly in nature-based and engineered carbon removal solutions, including afforestation and restoration projects, as well as commercial forestry, venture capital and private equity-based nature tech, both in the UK and globally.

It will also invest in assets and projects that provide measurable co-benefits, such as biodiversity enhancement, species protection and reintroduction, improved water quality, employment and public access.

The investment builds on the group's recent commitment as part of the Mansion House Accord, with a number of UK and international deals expected to be made over the coming months and years within the fund – including a UK project.

Commenting on the investment Natwest Cushon CIO, Veronica Humble, said: “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.

“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.

Aviva Investors chief distribution officer, Jill Barber, added: “We are absolutely delighted that our Carbon Removal Fund will form a part of NatWest Cushon’s sustainable investment strategy.

"We look forward to contributing towards the long-term investment outcomes of its members whilst playing a key role in supporting its broader sustainability ambitions.”

Mobius Life, the appointed platform provider for NatWest Cushon’s investment portfolio, chief operating officer, James King, added: “We are proud to support NatWest Cushon as they evolve their investment strategy.

"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 defined contribution (DC) investors.”

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