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Sustainable forestry

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. Most of our direct forestry investees are located in Sub-Saharan Africa and Latin America, where the deforestation rate is most alarming. A large majority of the forests managed by our investee companies have been certified by the international Forestry Stewardship Council (FSC) as being socially and environmentally responsible and sustainable.

Sustainable forestry has long been one of Finnfund’s focus areas. At the end of 2020, our investments in forestry (portfolio and commitments) were worth 172 million euros, which represented 18% of the total portfolio and commitments. 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.

Watch the video

See video on sustainable forestry

Finnfund is a leading global long-term investor in sustainable forestry. Forests are our most important carbon sinks and vital to stopping climate change.

More videos are published on Finnfund’s YouTube channel.

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.

Read more about effectiveness and development impact assessment.

Examples of investments

 

Contact us:

 

Ilkka Norjamäki
Senior Investment Manager

ilkka.norjamaki@finnfund.fi
tel. +358 40 866 8642

Pauliina Halonen
Investment Manager

pauliina.halonen@finnfund.fi
tel. +358 40 759 6479

Jari Matero from Finnfund

Jari Matero
Associate Director, Head of Agriculture and Forestry portfolio

jari.matero@finnfund.fi
tel. +358 40 523 2815