Forestry’s growing institutional appeal is changing what investors expect from managers. LPs increasingly want global diversification, exposure to carbon and biodiversity markets, and access to a wider natural capital opportunity. That demand is creating consolidation as managers build the scale required to cater to investor’s evolving needs.
Forestry’s growing institutional appeal is changing what investors expect from managers. LPs increasingly want global diversification, exposure to carbon and biodiversity markets, and access to a wider natural capital opportunity. That demand is creating consolidation as managers build the scale required to cater to investor’s evolving needs.
Reforestation is the approach du jour, with the strategy’s blend of financial and environmental benefits winning over managers and investors. Timberland’s potential for regeneration and restoration sets it apart from other possible investments, with agroforestry also gaining ground among investors who want to marry financial return to planetary profit.
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.
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