Sustainable forestry presents a “compelling opportunity” for investors, while responsibly managed assets in the sector outperform conventional ones, according to new research from the Global Impact Investing Network.
The forestry sector has been under pressure for decades for its role in deforestation in tropical regions. However, the scale of the industry, and the capacity of forests—even commercially-managed ones—to sequester carbon from the atmosphere, means that the sector could have a significant role to play in mitigating climate change. A number of sustainable forestry projects and investment vehicles have been established to explore new models for the industry.
“We are seeing increasing global interest from leading investors who want to help mitigate climate change and its effects on people and the planet,” said Amit Bouri, CEO of the GIIN. “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.”
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