New report identifies opportunities in forestry-focused impact investing to combat threat of climate change

 

Alliance magazine

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The Global Impact Investing Network (GIIN) today released its Scaling Impact Investments in Forestry report. The GIIN’s new report takes explores the landscape of investment managers and asset owners active in the market and provide five recommendations on how to unlock more capital flow into the sector.

Over the past two decades, investment in sustainable and impact forestry has grown steadily as the threat of climate change mounts.

Pete Murphy, Market Building Manager at the GIIN, commented: ‘This report confirms that forestry presents significant opportunity for impact investors at a time when we can no longer avoid the realities of climate change. In fact, we’ve long seen significant interest from institutional portfolios driven both by impact and return, as well as by the unique profile of the assets – forests. The biological growth cycle of trees is not influenced by economic cycles and provides longer tenured investments that often match institutional investors’ portfolio management needs.’

The report follows earlier research by Cambridge Associates and the GIIN on the financial performance of impact investment funds focused on real assets, which showed that the financial performance of sustainable timber investment managers outperforms that of conventional timber.

Amit Bouri, CEO of the GIIN, added: ‘We are seeing increasing global interest from leading investors who want to help mitigate climate change and its effects on people and the planet. The forestry sector, if not overlooked, is certainly underappreciated for the contribution it can make to the environment as well as to the health of communities. Impact investing in forestry has demonstrated favorable financial performance, a sustained track record, and a positive impact on carbon sequestration as well as a number of other environmental conservation benefits.’

Read the full report here.


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