A Dutch pension fund has made a $200m (€150m) commitment to sustainable forests, becoming the fourth large institutional investor in Europe this year to invest in timber, which has long been a staple investment for their counterparts in the US.

PGGM is one of Europe's largest funds with €85bn in assets. It has picked Boston-based manager GMO for its timber mandate. The Dutch fund will commit to the investment for 15 years, with a possible five-year extension.