9
Dec

THE FUTURE OF SUSTAINABLE TIMBER INVESTMENTS

Zukunft der nachhaltigen Holz-Investments

The «Timber Finance Initiative» (TFI), founded in 2021, is betting on timber to help address the climate crisis. The Timber Finance Initiative aims to become the Swiss competence center for sustainable timber investments.

“Timber can help combat climate change and – due to its potential to store carbon long term in the form of wood products2– will be the leading investment for climate-conscious investors in the coming years.” This is the conviction of the Zurich based Timber Finance Initiative: the association, founded in March 2021, aims to promote networking and knowledge transfer between the forest and timber sector and the financial market.2-By developing new methodologies for quantifying and certifying the carbon storage properties of wood products, creating new financial products, white papers, reports and developing a knowledge hub, the Initiative is hoping to accelerate the transformation of the built environment.

«The construction industry is responsible for around 40% of global CO2 emissions. Wood from sustainably managed forests will play an important role in the decarbonisation of the construction industry: As a CO2 reservoir and as a CO2 negative building material. We want to enable investment opportunities of around CHF 100 million in the forest and timber industry by 2030 and thus make a significant contribution against climate change,» explains Erik Reichmuth, TFI Managing Director and financial expert.

The Timber Finance Board stands out with multi-firm Founder & Chairman Thomas Fedrizzi, Timbatec– and «Timber Startup Incubator» – founder Stefan Zöllig. In addition, the company is supported by senior advisors and timber industry experts such as Thomas Lüthi, Stefan Vögtli, and Steve Marshall.

Currently, the Timber Finance Initiative focuses on three services and products:

  • Development of CO2 storage certificates based on timber buildings

In order to promote the decarbonization of the construction industry, Timber Finance is developing a CO2 certificate based on international standards for carbon dioxide removals and specifically tailored to the requirements of the timber construction sector. The certificate is designed to create an ecological and financial incentive for institutional builders and encourage the adoption of timber construction. Simultaneously, the certificate compensates forest owners for their efforts to create biodiverse and climate resilient forest economies. The launch of the certificate is planned for the first half of 2022.

  • Advisory & Knowledge Hub

Timber Finance advises banks, pension funds, investors and family offices on sustainable investment strategies and timber investments in Switzerland and Europe. Institutional real estate investors are supported by Timber Finance as a builder’s consultant on competitions, tendering, contracting, regional timber procurement and in financing timber construction projects.

  • The Timber Carbon Capture & Storage Index

Timber Finance has developed the first index for the modern forest and timber industry. The index includes 30 listed companies from Europe and North America which actively promote and contribute to the advancement of mass timber through their innovation and commitment. The index launch is scheduled for the first quarter of 2022.

«There is a knowledge and investment gap between the forest economy and the financial market. Our aim is to bridge this gap with the development of innovative sustainable financial products. After all, sustainably managed forests and the mass timber value chain are the hidden champions of sustainable finance and belong in the portfolio of every climate-conscious investor,», adds Thomas Fedrizzi, VR & Timber Finance Initiative Board Member.

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