Commercially managed forests are catching the eye of investors as they can offer stable returns with regular income, be a hedge against inflation, and provide portfolio diversification benefits. Investing in sustainably managed timberland allows investors to align financial, environmental and social benefits and actively address the climate change and biodiversity crises.
Forests matter because they play a role in sustaining the global economy and societies, supplying renewable materials for a wide range of industries. Forests are one of the most important reservoirs of biodiversity and they help fight the effects of climate change as they soak up carbon emissions in their capacity as ‘carbon sinks’.
Investing in sustainably managed timberland is investing in the bioeconomy, without depleting nature’s reserves. There is growing demand for wood products on the back of population growth, urbanisation, higher per-capita income, and increasing support to substitute polluting or fossil fuel-based materials with renewable materials such as wood.
Investing in this type of timberland is also investing in preserving and restoring biodiversity by protecting and rebuilding wildlife habitats, fostering resilient ecosystems.
At BNP Paribas Asset Management, we see offering timberland investments within our range as part of our commitment to a bioeconomy, or the practice of responsibly using natural resources and biological knowledge for economic growth and ecological sustainability. Our cooperation with International Woodland Company (IWC) allows us to bring attractive timberland investment opportunities to the table, managed by a team of experienced specialists.
We believe timberland is a growing asset class with financial, environmental, and social rewards. Whether investors are looking to diversify their portfolios, invest in nature-based solutions to combat biodiversity loss , decarbonise portfolios, or further net zero goals, timberland could be a compelling, effective, and tangible alternative.
Read Timberland, a growing asset class, a white paper by BNP Paribas Asset Management and International Woodland Company, a BNPP AM-owned company.
