BNP Paribas Asset Management has introduced the BNP Paribas Future Forest Fund, aimed at sustainable timber production.
The SFDR Article 9 fund was created in partnership with the International Woodland Company (IWC), a natural capital specialist located in Copenhagen.
The portfolio will be made up of eight to 12 assets, located in the US, Australia, New Zealand, and Europe, and will only select forests that are certified, or can be certified, by the Forestry Stewardship Council. The fund holds a target size of $500m, and raised $130m to its first closing in November.
According to BNP Paribas, the strategy addresses a growing demand for timber across the world, which the United Nations Food and Agriculture Organisation forecasts will grow by 37% to 60% between 2020 and 2050.
Otto Reventlow, CEO of IWC, said: “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.”
The fund launch follows BNP Paribas Asset Management listing four ESG equity ETFs on the London Stock Exchange in early October.
Maxence Foucault, senior ESG specialist of private markets at BNPP AM, said: “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.”
