@BNP Asset Management.
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.
Disclaimer
BNP PARIBAS ASSET MANAGEMENT Europe, “the investment management company”, is a simplified joint stock company with its registered office at 1 boulevard Haussmann 75009 Paris, France, RCS Paris 319 378 832, registered with the “Autorité des marchés financiers” under number GP 96002.
This material is issued and has been prepared by the investment management company.
This material is produced for information purposes only and does not constitute:
1. an offer to buy nor a solicitation to sell, nor shall it form the basis of or be relied upon in connection with any contract or commitment whatsoever or
2. investment advice.
Opinions included in this material constitute the judgement of the investment management company at the time specified and may be subject to change without notice. The investment management company is not obliged to update or alter the information or opinions contained within this material. Investors should consult their own legal and tax advisors in respect of legal, accounting, domicile and tax advice prior to investing in the financial instrument(s) in order to make an independent determination of the suitability and consequences of an investment therein, if permitted. Please note that different types of investments, if contained within this material, involve varying degrees of risk and there can be no assurance that any specific investment may either be suitable, appropriate or profitable for an investor’s investment portfolio.
Given the economic and market risks, there can be no assurance that the financial instrument(s) will achieve its/their investment objectives. Returns may be affected by, amongst other things, investment strategies or objectives of the financial instrument(s) and material market and economic conditions, including interest rates, market terms and general market conditions. The different strategies applied to the financial instruments may have a significant effect on the results portrayed in this material.
All information referred to in the present document is available on www.bnpparibas-am.com
Timberland investment is not without risk. The three primary sources of which are market risk, physical risk, and regulatory/legal risk, all of which are addressed in our paper.
