The Food and Agriculture Organisation of the UN, FAO, estimates that in Africa alone, over two million hectares of forests is lost every year. Population growth, urbanisation and a growing middle-class adds pressure on the remaining natural forests.
Sustainable, responsible forestry is one key way to curb de-forestation and climate change. In for example Africa, it can already be seen that the timber produced through sustainable plantations is easing the pressure on natural forests.
Sustainable forestry has long been one of Finnfund’s focus areas. At the moment, our investments in forestry represented 19% of the total portfolio. This is higher than any other development finance institution, making Finnfund a leading global investor in forestry. Finnfund invests in commercial plantations and related industries, such as saw mills and plywood mills. At present we have invested some 158 million euros in 12 forestry companies and forestry funds.
Why does Finnfund finance sustainable forestry?
The development effects of sustainable forestry have been summarized in the theory of change below.
Impacts are examined at three different levels: direct impacts on business, indirect development impacts, and broad societal impacts.
Examples of investments
Senior Investment Manager
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Associate Director, Head of Agriculture and Forestry portfolio
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