Forestry investing

Investors turn to timber as the “green goldmine” promises a wealth of opportunity

Reforestation is high on the agenda for climate-conscious investors, with timberland’s potential for regeneration and restoration setting it apart from other possible investments, marrying financial return to planetary profit. Agroforestry funds also provide a particularly attractive way for those investors to earn respectable risk-adjusted returns while also creating more resilient, productive nature-based assets. Together, such approaches bring cause for optimism – both for investors, and for nature.

KEY INSIGHTS

Four key trends in forestry

An evolving market brings new ways to do well by doing good.

Private capital puts reforestation in focus

Investors are increasingly interested in reforestation. Agri Investor examines the factors underlying this trend and the challenges involved.

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PREVIOUS COVERAGE

Historically, timberland is a sector reliant on deforestation, and since 1990 the UN estimates the world has lost at least 420 million hectares of global forests. This is putting increasing pressure on investors to make the sector more climate-conscious. From regulation to mass timber investment, we look at how timber investors are prioritising the sustainable switch.

Demand for timber set to soar with Latin America and Asia emerging as regions of opportunity

For an industry driven by photosynthesis, timberland is certainly having its moment in the sun.

Managers hope increasing regulatory pressure will grow investment in timberland

Compliance is essential to all asset classes but, increasingly, timberland managers view rules and government policy as just the starting point for their next investment strategies.

Timberland continues to grow in uncertain times

Economic volatility over the past year has showcased the benefits of investing in timberland as an inflation hedge. But careful portfolio management remains key.

Timberland enters a new era

A growing interest in climate and biodiversity is affecting managers’ approach to timberland investing.

Timberland managers start looking to tropical climates

Investor appetite for forestry in tropical regions of Africa, Asia and Latin America is being boosted by the growth of carbon markets.

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