BNP Paribas Asset Management has launched the BNP Paribas Future Forest Fund, a $500 million sustainable forestry initiative aimed at balancing profitable timber investments with climate resilience and biodiversity preservation. Developed in collaboration with the International Woodland Company (IWC), this fund targets certified sustainable timber assets across key markets, including the U.S., Australia, New Zealand, and Europe. The fund’s first closing in November raised $130 million, with plans to expand to a target size of $500 million.
Meeting Growing Timber Demand with Sustainability
The Future Forest Fund comes at a time when global timber demand is expected to surge. The United Nations Food and Agriculture Organization (FAO) projects a 37%-60% increase in demand for timber between 2020 and 2050. This makes sustainable forestry a critical component of both addressing the demand and ensuring the long-term health of forests.
Otto Reventlow, CEO of IWC, emphasized the importance of aligning commercial interests with environmental objectives:
“The BNP Paribas Future Forest Fund represents a key step in making sustainable forestry a mainstream investment option. By focusing on certified, commercially viable forests, we ensure that financial returns are balanced with a strong commitment to biodiversity and climate resilience.”
A Strategic Partnership for Impact
The fund’s strategy emphasizes a diversified portfolio of 8-12 timber assets certified or certifiable by the Forestry Stewardship Council (FSC). This will ensure the highest environmental standards while promoting climate resilience. BNP Paribas has positioned itself at the forefront of sustainable finance, following its October launch of four ESG equity ETFs on the London Stock Exchange, with the Future Forest Fund serving as a prime example of its dedication to addressing climate change and biodiversity loss.
Maxence Foucault, Senior ESG Specialist at BNP Paribas Asset Management, said:
“At BNP Paribas Asset Management, we aim to pioneer investment solutions that tackle pressing environmental issues. The BNP Paribas Future Forest Fund is a prime example of how we can drive both financial returns and environmental benefits.”
The Road Ahead: Sustainable Growth in Timber
The BNP Paribas Future Forest Fund represents a strategic commitment to sustainable growth in the timber industry, addressing the pressing needs of climate change while generating strong financial outcomes for investors. The fund sets a clear path for blending profitability with a commitment to the planet’s long-term health, advancing biodiversity, and contributing to climate resilience globally.
References:
- BNP Paribas Future Forest Fund Announcement
- International Woodland Company
- https://esgnews.com/bnp-paribas-unveils-500m-sustainable-forestry-fund-with-iwc/
