Why forestry is key in the transition to a sustainable future
Forestry investments will continue to benefit communities, conserve nature, and deliver returns
Every day, people and companies around the world seek not only to diversify their businesses and investments, but also to ensure that the performance of their corporations is ecologically and socially responsible while guaranteeing the desired financial returns.
To build a better world for the future, we must focus on sustainability.
Sustainability, most often defined as meeting the needs of the present without compromising the ability of future generations to meet theirs, has three main pillars: economic, environmental, and social.
These three pillars are informally referred to as people, planet and profits—and strongly aligned with these sustainability pillars are forestry investments.
From one perspective, forestry investments stand out as a great contributor to minimize (or even solve) the problems we currently face related to climate change. In its natural growth process, a well-managed forest helps to significantly reduce the amount of CO2 in the atmosphere, in addition to requiring less water consumption for its production and development.
Forestry investment also presents itself as an excellent long-term investment option, with low volatility and minimal correlation with other types of assets making it a smart choice when building a robust investment portfolio.
Forestry can also bring a strong social benefit. The development of forestry projects positively impacts and supports the communities where it operates—bringing jobs, wealth, and development to the region.
The future of forest products also continues to expand, as the construction industry looks to use more natural and sustainable building materials. Engineered wood products such as glue laminated timber (GLT) and cross laminated timber (CLT) offer not only an environmentally superior alternative to traditional building materials like steel and concrete, but also the strength and stability to be used for taller buildings than traditional wood materials. These mass timber products may soon become the material of choice for office buildings, commercial real estate, and more.
We look forward to seeing how forest investment will continue as a driving force in the movement towards sustainability, and in creating a better world for future generations.
by Antonio Carlos Tatagiba, CEO of INFLOR LLC
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