The demand for sustainable forest management within impact investing is experiencing significant growth, driven by the recognition of forests’ critical roles in climate change mitigation, biodiversity preservation, and socio-economic development.
FSC has launched a new publication, Integrating FSC Certification into Impact Investing, offering investment analysts data-driven insights into how FSC certification contributes to financial, environmental, and social outcomes. Drawing on research findings, case studies, and global sustainability frameworks, the publication provides an illustrative resource for investors seeking to incorporate certified assets into their strategies.
Growing relevance of FSC in sustainable finance
The recognition of forests’ critical roles in climate change mitigation, biodiversity conservation, and socio-economic development is fuelling demand for sustainable forest management.
According to the Global Impact Investing Network’s survey of 293 impact investing organisations, investors increased their allocations towards forestry from 2023 to 2024, reflecting a 53% increase in assets under management.
Key insights from the publication
Data shows that FSC-certified forestry funds have consistently delivered competitive internal rates of return, making them suitable for long-term strategies. Companies with FSC certification have also reported enhanced market positioning, supplier preference, and customer retention.
Sustainability and risk mitigation
FSC certification supports investors in managing key sustainability risks, including deforestation, biodiversity loss, pest outbreaks, and irresponsible land use. Certified operations are linked to stronger biodiversity outcomes and improved ecosystem integrity.
Investor adoption and practical use cases
Several asset managers have integrated FSC-certified assets into their portfolios. These investors employ diverse strategies to balance certification costs with financial feasibility. Some conduct pre-feasibility assessments to evaluate the certification’s potential before capital investment.
Alignment with global sustainability frameworks
FSC certification is referenced in various sustainability reporting frameworks and forestry-related benchmarks, aiding investors in aligning with global standards such as the Taskforce on Nature-Related Financial Disclosures.
You can download the document below and find more information here.