In the next years SFI will become Africa’s frontrunning company in land restoration and reforestation. Investors have already started putting their money into innovative forestry, land-use and other tree-based projects. The resulting article was published in this year’s first issue of Absolutimpact, a periodical for institutional impact investors.Entitled “Sustainable Forestry Investments in Emerging Markets,” the comprehensive piece argues the social and economic benefits of investing in forestry while advising on potential success factors and pitfalls to watch out for. Planting and harvesting techniques, and resource management. Managers and companies with strong governance cultures and track records on anti-corruption efforts may stand to gain in the long term if competitors are proven to have been involved in bribery and corruption. We use cookies to improve your experience on this website. Pollution (such as through pesticides and the impact on soil quality). However, not all certifications are harmonised. It is therefore even more important that investors and managers understand the potential for corruption and bribery risks to manifest across all the jurisdictions they are exposed to. Girteka and Arbaro both strive for financial returns while maintaining a focus on the social and environmental aspects of the business. Labour standards, including health and safety. An increasing number of countries are adopting and implementing policies and incentives to promote and secure sustainable forestry businesses; global initiatives such as the Paris Agreement and the SDGs provide clear commitments to countries and the private sector to operate in this field; and large DFIs have been investing in and supporting sustainable forestry businesses. In the Nordics, governments have been working with companies to develop national standards based on local characteristics and which align with the Programme for the Endorsement of Forest Certification’s (PEFC) globally-recognised sustainability benchmarks. Or that 1,000 hectares create an average of 30 to 50 jobs directly – not to mention all the rest along the timber value chain?Although investments in sustainable forestry currently occupy a niche in the growing real-asset market, they can generate powerful social and environmental impact. Sustainable forest investments. This included ensuring that workers were provided with the right protective clothing, were housed adequately, and that labour practices and relations were fully documented. Check out the GIIN’s new Sustainable Forestry Navigating Impact project theme to learn more. We won't set optional cookies unless you enable them. And responsible forestry is a sound long-term financial investment that combines diversified risk with solid returns. Ten companies—including Hermès, Danone and Michelin—have invested in the Livelihoods Carbon Fund with the dual goal of offsetting part of their carbon emissions and improving livelihoods in the developing world. Strategies include sales of timber, carbon offsets, land leasing, and land rights for conservation. This helps to support community development through economic growth and income that aligns with local norms and needs. Our forest products. We are eager to demonstrate the great opportunity of landscape restoration in Africa through sustainable forestry, agro-forestry and agricultural investments as proven concept and successful business case. Our long-term approach, combined with the large scale on which we operate, requires a far-sighted vision of both SFI and our partner investors. Gresham House currently manages nearly 130,000 hectares of forests on behalf of institutions, endowments, family offices and private investors. This is a great match with our WE CARE mission statement.”. To see content from external sources, you need to enable it in the cookie settings. Forestry conservation investment strategies and products that deliver market returns are available in certain markets. First, SFI establishes a good relationship with traditional landowners, farmers and the population in the area. It conducts technical and financial due diligence, provides investment advisory and forest certification services, and assesses social and environmental impacts. The restored coastal ecosystem better supports wildlife and local livelihoods, bringing villagers an additional 4,200 tons of fish, shrimp and oysters yearly. They were accused of planting forest on land previously used for subsistence agricultural purposes, threatening local food supplies. Increasing the sustainability of local economies and communities through forests and land use: The Moringa Fund offers credit access, technical and management knowledge, and market access to smallholder farmers in Nicaragua through its investment in an outgrower program for Cafetalera Nicafrance, which produces high-quality coffee and timber on 1,800 hectares of land. In addition to investment activities, the funds also provide technical assistance to support investees, foster responsible finance, and maximize impact in the countries they serve. Arbaro Advisors develops and advises on sustainable forestry investments in Latin America, the Caribbean, and Sub-Saharan Africa. Despite the value and relevance of certifications to businesses and the impact investing community, less than 10% of the world’s total forestry, particularly in tropical regions, is certified. Environmental challenges like pests or fires and socio-economic challenges like illegal logging can be considerable setbacks for any forestry project. Increasing the conservation of forests and forest resources: Ecotrust Forest Management protects more than 100,000 acres of forest land across Oregon, Washington and California, providing vital habitat for wild salmon and trout while producing timber certified as sustainable by the Forest Stewardship Council (FSC).