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The role of forestry in net-zero investment – Gresham House

Gresham House aim to help investors understand what forestry investment can and cannot do in their journey to net zero and outline the rationale for including an allocation to the asset class.

Posted on Apr 17, 2024

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... To help avert the impacts of climate change, institutions are increasingly investing to mitigate their portfolio and business carbon emissions in line with net-zero targets. This trend represents an investment opportunity in which various natural climate solutions (NCS) feature strongly thanks to their emissions sequestration potential.

Sustainable forestry investment is a NCS that can provide high-quality emissions removals through afforestation, and has historically generated a double-digit annual return with low volatility, low correlation to standard asset classes, and significant inflation protection.

In a new and challenging investment environment, Gresham House believe investment in sustainable, productive forestry and afforestation assets managed to high standards, can help institutional investors balance their financial and sustainability objectives.

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