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LGPS investors turn to natural capital but are wary of carbon credits

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As LGPS funds review their strategic asset allocation, natural capital is on track to become one of the most sought-after asset classes, although many remain deeply cautious of carbon credits.

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Natural capital is growing in popularity. Nearly 40% of LGPS investors plan to increase allocations to the asset class, according to the latest LGPS

For the best part of the past decade, three core beliefs underpinned UK policy making around pensions: funds should consolidate to improve professionalism, which in turn would lead to more in-house investment management which, by extension, would mean greater investments in UK productive assets.