What does this fund consist of?
The FFF fund is the first to be launched with the International Woodland Company (IWC), a Danish specialist in responsible investment in forest and agricultural land around the world, as well as consulting on sustainable forestry, agriculture and natural ecosystems, carbon credits and conservation projects. Since 2023, IWC has been majority-owned by BNP Paribas Asset Management, as part of its range of investments in private assets, i.e. those not listed on the stock exchange. IWC teams are now integrated into the Private Assets teams.
This fund is intended for institutional investors who are keen to reconcile sustainability and profitability objectives. It is classified Article 9 according to the SFDR regulation, meaning it pursues a sustainable investment objective, in this case the sustainable and integral management of forests.
The fund will only invest in forests located in mature geographical areas (United States, Oceania, Europe) and certified by the Forest Stewardship Council (FSC), which guarantees the planning of sustainable forest and land management, the preservation of the ecological functions of the forest, respect for workers’ rights and working conditions and the social and economic well-being of local communities.
The BNP Paribas Future Forest Fund represents a significant step forward to bring sustainable forestry investment into the mainstream and recognising it as a compelling investment proposition. With this fund, we ensure that our focus on commercial viability is balanced with a strong commitment to enhancing biodiversity and climate resilience.
Natural capital investments in practice: find out more about IWC
We are very pleased to partner with IWC and leverage their deep expertise in natural capital, ensuring that we make a meaningful impact in the world of sustainable forestry. The Future Forest Fund illustrates the common vision we have with IWC to actively contribute to the environmental transition. This new fund will enable us to answer our clients' growing interest in this new asset class as we widen our breadth of natural capital solutions.
Why invest in sustainable forest management?
Wood is a widely used renewable material that is essential to the green transition. In order to support the economy in its transition, there is now a genuine demand for bio-sourced materials in many sectors: wood represents an alternative to plastic in the food industry, for example, with the move to sustainable packaging; it is used in construction, which has significant decarbonization needs, as an alternative to steel and cement; or in the energy sector where wood residues can be transformed into biofuel.
Private finance has a role to play in meeting the challenge of protecting natural capital. The institutional forestry investment sector represents $200 billion and has the potential to expand through reforestation. Sustainable forestry is a type of investment suitable for institutional investors, as it is a long-term investment that matches the commitments of pension funds and the obligations of insurers.
Strategies related to sustainable forest management contribute to climate change mitigation and achievement of the carbon neutrality goal. They are part of the solutions to reduce greenhouse gas (GHG) emissions through prevention of deforestation and forest degradation. In addition, the forest plays an essential role as a carbon sink. The use of sustainable wood products can improve long-term carbon storage, while replacing emission-intensive materials can help avoid greenhouse gas emissions. Forests also help maintain biodiversity by providing shelter for flora and fauna.
At BNP Paribas Asset Management, we are committed to pioneering investment solutions that address the challenges of climate change and biodiversity loss. The BNP Paribas Future Forest Fund is a prime example of how investors can align environmental and social benefits with financial targets.
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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.
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Opinions included in this advertisement constitute the judgement of the investment management company at the time specified and may be subject to change without notice. You can obtain this by clicking here: www.bnpparibas-am.fr/investisseur-professionnel/synthese-des-droits-des-investisseurs a summary of investor rights in French. BNP PARIBAS ASSET MANAGEMENT Europe may decide to terminate the arrangements made for the marketing of its collective investment undertakings/financial instruments, in the cases covered by the applicable regulations.
Private assets are investment opportunities that are unavailable through public markets such as stock exchanges. They enable investors to directly profit from long-term investment themes and can provide access to specialist sectors or industries, such as infrastructure, real estate, private equity and other alternatives that are difficult to access through traditional means. Private assets do, however, require careful consideration, as they tend to have high minimum investment levels and may be complex and illiquid.
“The sustainable investor for a changing world” reflects the objective of BNP PARIBAS ASSET MANAGEMENT Europe to integrate sustainable development into its activities, although not all funds managed by BNP PARIBAS ASSET MANAGEMENT Europe fulfil the requirement of either Article 8, for a minimum proportion of sustainable investments, or those of Article 9 under the European Regulation 2019/2088 on sustainability-related disclosures in the financial services sector (SFDR). For more information, please see www.bnpparibas-am.com/en/sustainability
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