Besides the financial performances, timberland investments are increasingly attractive in the framework of Sustainable and Responsible Investment (SRI) and impact investments strategies, in particular for those segments related to climate-change mitigation and adaptation. Indeed, forests play an important action absorbing carbon dioxide (CO2) from the atmosphere and are essential for the provision of renewable raw materials as well as many other valuable environmental services such as the conservation of soil properties, regulation of the water cycle, protection of biodiversity; moreover, they play an important role for human social and economic development.
At the core of SRI and impact investments strategies there is the ability to measure Environmental, Social and Governance (ESG) impacts and monitor progress and, in this regard, the forestry sector is at a very advanced level, adding substantial value to the asset. Specifically, today there are more than 50 standards, quality protocols and rating systems applicable to forestry investments to ensure their environmental sustainability and to mitigate technological, legal, reputational and social risks
Take a look at our latest publication on “Planted forests in emerging economies“.
Read the article dedicated to the Certification of Ecosystem Service.