Forestry has long been admired for its slow-and-steady appeal – an asset class rooted in patience and resilience. But the sector has experienced a noticeable shift. What was once seen as a niche, sometimes overlooked investment is now gaining significant traction among institutional investors, driven by climate imperatives, long-term returns and the growing appetite for tangible ESG impact.
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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