West Yorkshire Pension Fund Pledges £25 Million to Nature-Based Infrastructure Projects

The West Yorkshire Pension Fund, which manages around £20 billion in assets and supports 300,000 local members, has made a fresh investment into a portfolio linked to Rebalance Earth. This firm is described as the UK’s first boutique fund manager solely focused on nature as an investable asset class.

The portfolio aims to generate returns by backing projects that not only support biodiversity goals but also help businesses mitigate risks from environmental challenges like flooding.

This isn’t the fund’s first move with Rebalance Earth. Last year, it acquired a 25 per cent stake in the company after contributing over £5 million in seed capital.

Rob Gardner, a leading figure at Rebalance Earth, praised the investment. The latest funding will go toward what’s being called the Cornerstone Portfolio, part of Rebalance Earth’s upcoming Nature-based Infrastructure Fund.

Rob Gardner, CEO and Co-Founder of Rebalance Earth, said: “WYPF is showing that Nature is not a cost centre but a critical, income-generating infrastructure asset.”

A spokesperson said: “The fund treats Nature as infrastructure, valuing peatlands, rivers, wetlands, and oyster reefs for their essential services: natural flood protection, water purification, carbon sequestration, and biodiversity uplift.

"These services are monetised through long-term payments for ecosystem services.

"Companies and public bodies across sectors, including fast-moving consumer goods, transport, real estate, and utilities, pay for the benefits ecosystems deliver.

"For example, a supermarket may fund upstream flood mitigation to protect its logistics hubs.

"At the same time, a water company may invest in wetland restoration to reduce treatment costs and improve water quality.

"WYPF’s commitment enables Rebalance Earth to complete its Cornerstone Portfolio and move toward fund launch later this year.”

The fund is targeting an internal rate of return of between eight and 12 per cent over a 15-year period in a strategy focused on “long-term, stable cash flows”.

Darran Ward, Head of Alternatives at WYPF, said: “As a long-term asset owner, we see place-based, Nature-based infrastructure as a key component of strategic investment delivering both resilience and returns.

"From peatlands to rivers to oyster reefs, natural infrastructure provides critical services that protect communities and reduce systemic risk. This strategy enables us to invest where it matters most, close to home.”

Kirsty Wilman, Chief Operating Officer at Rebalance Earth, said the initial backing by WYPF could pave the way for billions in investment to be delivered through the strategy in the coming year.

“This commitment marks a pivotal moment in recognising Nature as an investible asset class. Our ambition is to raise and invest £10 billion into Nature-based infrastructure over the next decade.

"That journey starts here, where the risks are real, the benefits measurable, and the opportunity to build resilience.”

Mr Gardner added, “Nature performs better than concrete, managing water, regulating climate, and storing carbon. By investing two per cent of a portfolio in Nature-based solutions, we can help stabilise the 98 per cent that depends on them. That’s how we deliver resilience and build a world worth living in.”