LOADING

Type to search

BNP Paribas Unveils $500M Sustainable Forestry Fund with IWC

BNP Paribas Unveils $500M Sustainable Forestry Fund with IWC

BNP Paribas Unveils $500M Sustainable Forestry Fund with IWC
Listen to this story:
  • Global Reach: The BNP Paribas Future Forest Fund will invest in certified sustainable timber assets across the U.S., Australia, New Zealand, and Europe, with an initial $130M raised and a target size of $500M.
  • Climate-Driven Strategy: The fund addresses a projected 37%-60% global increase in timber demand by 2050 while prioritizing biodiversity and climate resilience.
  • Partnership for Impact: Developed in collaboration with the International Woodland Company, the fund emphasizes balancing commercial viability with environmental stewardship.

BNP Paribas Future Forest Fund: A Sustainable Initiative

BNP Paribas Asset Management has launched the BNP Paribas Future Forest Fund, a sustainable forestry fund designed to support certified timber production while advancing biodiversity and climate resilience goals. The SFDR Article 9 fund, created in partnership with Copenhagen-based International Woodland Company (IWC), targets sustainable timberland investments across the U.S., Australia, New Zealand, and Europe.

The portfolio will feature 8-12 assets, selecting only forests certified or certifiable by the Forestry Stewardship Council. The fund has an ambitious target size of $500M, raising $130M during its first closing in November.

Growing Timber Demand

This initiative comes as global timber demand surges. BNP Paribas cites United Nations Food and Agriculture Organisation data predicting a 37%-60% increase in demand between 2020 and 2050.

Otto Reventlow, CEO of IWC, stated:

“The BNP Paribas Future Forest fund represents a significant step forward to bring sustainable forestry investment into the mainstream and recognises timberland as a compelling investment proposition.

“With this fund, we ensure that our focus on commercial viability is balanced with a strong commitment to protect and enhance biodiversity and climate resilience. We are proud to collaborate with BNP Paribas Asset Management to create a fund that aligns financial objectives with the urgent need for environmental stewardship.”

Aligning Finance with Sustainability

BNP Paribas Asset Management is positioning itself as a leader in sustainable investment. Following its October launch of four ESG equity ETFs on the London Stock Exchange, the Future Forest Fund exemplifies its dual focus on financial returns and environmental impact.

RELATED ARTICLE: BNP Paribas Lists Four ESG Equity ETFs on London Stock Exchange

Maxence Foucault, Senior ESG Specialist of Private Markets at BNP Paribas Asset Management, remarked:

“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 benefits with financial targets.”

This launch signals BNP Paribas’s strategic commitment to environmental stewardship and sustainable growth in the timber industry.

Follow ESG News on LinkedIn

Topics

Related Articles