White paper on new investment trend: timber stocks

Climate change is forcing the financial industry and investors to rethink: Innovative solutions are needed to achieve the ambitious net-zero targets. The timber construction megatrend is leading to new investment opportunities in the timber construction industry and offers investors the opportunity to decarbonize their portfolios with long-term CO2-absorbing timber buildings.

For the first time, a standard work on modern wood investments is published. The white paper is the result of collaboration between the two Swiss organizations ZHAW School of Management and Law and Timber Finance.

Modern timber construction is a market with strong growth: since the «timber turnaround» in 2020, the global forest and timber construction industry has entered a new growth cycle. What is relevant for today's investors is that wood contributes to the decarbonization of CO2-intensive construction industry. Wood is the only natural building material that grows back, CO2 in modern large buildings and reduces CO2-intensive concrete and steel.

The white paper «Investing in the Modern Forest and Timber Industry» makes an important contribution to narrowing the knowledge and investment gap between the financial market and the modern forest and timber industry. It gives investors an overview of investment opportunities and information on sustainability aspects in the wood value chain. It discusses the sustainability impact of wood and the various investment products, and highlights opportunities for sustainable wood investments. The white paper relies on a combination of the company's own analyses and the review of scientific studies and provides insights into ecological and economic aspects. It places the topic of «Timber» in the current sustainability debate and explains the services provided by forests and wood for the benefit of the climate: storage, sink capacity and substitution.

«The importance of the timber industry as a CO2 sink is becoming increasingly important in the financial sector. A sustainable forestry and construction industry helps to reduce CO2 emissions and protect biodiversity. Targeted investments in the timber industry can further support and promote the conservation of forests and their role as CO2 sinks», explains Simon Tribelhorn, Managing Director of the Liechtenstein Bankers Association.

Why should investors invest in the forest and timber industry?

What investors can expect from the white paper:

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