The Timberland Investment Group is committed to sustainably managing the world’s timberlands.
We believe that investing in a sustainable manner can achieve compelling investment returns while aiming for high standards of environmental and social governance.
We are focused on sustainable forestry practices and maintaining positive and respectful relationships with local communities in the landscapes in which we invest.
“Natural climate solutions” are actions to protect, sustainably manage and restore natural and modified ecosystems in ways that mitigate climate change, while also addressing other societal challenges.
The role of natural climate solutions in the fight against climate change continues to gain broader recognition. They can cost-effectively provide a third of the climate action needed by 2030 and, unlike other carbon removal technologies, are available and proven now [1]. There is a growing understanding that we cannot limit the rise of global temperature below two degrees Celsius and achieve ‘net-zero’ emissions by mid-century – the goals set forth by the Paris Agreement – without major investments in natural climate solutions today.
Despite this potential, natural climate solutions receive only a small fraction of the financing they need to be deployed at scale. There is an urgent need to attract more investment into this space, which requires investable and scalable propositions.
By investing in climate-positive forestry, TIG seeks to help bridge the gap between nature’s potential and what has been delivered on-the-ground to date, accelerating the transition to the renewable economy of the future.
How the Climate Benefits of Our Approach Add Up
Research shows that restoration, protection and improved management of forests represent nearly 75% of the total global NCS opportunity. Importantly, research also shows that when forests are harvested sustainably, and the harvested wood is used in the right applications, the climate benefit of storing carbon in long-lived wood products and of displacing more carbon-intensive materials like concrete, steel or plastic can be 2-3x the benefit of the forest itself [2]. TIG recognizes that the key to delivering on the full potential of climate-positive forestry is ensuring both the sustainability of the forests that supply the wood and the climate benefits of the end products. TIG’s investment programs are designed to ensure robust benefits across complete value chains, providing our clients with confidence in the positive impacts of their investments.
Our commitment to sustainability begins with our parent company, BTG Pactual
Our commitment to sustainability begins with our parent company, BTG Pactual. Through BTG Pactual, TIG is a signatory to the UN Principles for Responsible Investment (PRI), UN Global Compact, the UNEP Finance Initiative, the Equator Principles and Carbon Disclosure Project (CDP). It is member of the Global Impact Investing Network (GIIN), the World Business Council for Sustainable Development and the Brazilian Coalition for Climate, Forests and Agriculture (Coalizao Brasil Clima, Floresta e Agricultura) [3] [4]. We are held accountable to every aspect of BTG Pactual’s commitments and TIG’s Global Responsible Investment Policy.
TIG is committed to responsible investment practices across all assets under its management.
TIG carefully evaluates environmental and social governance attributes (“ESG”) before making any investment decision. As an institutional investor, TIG believes it has a duty to act in the best long-term interests of our beneficiaries. We recognize that ESG issues can affect the performance of investment portfolios.
Building on BTG Pactual’s ESG commitments and policies, TIG maintains its Ten Stewardship Principles that seek to ensure best practices are taken into consideration throughout our investment process.
BTG Pactual is also a signatory of the UN Principles of Responsible Investment (UN PRI).
1. We seek to be good stewards, good neighbors, and industry leaders in managing our assets for risk-adjusted returns and positive community, nature, and climate impacts
2. We seek to generate material benefits for communities, nature, and climate, consistently across our portfolio and to protect and enhance ecosystem function
3. We strictly comply with all applicable environmental, social, health and safety, and other laws, regulations, and best practices, including anti-corruption and bribery regulations
4. We seek to certify 100% of eligible assets to independent, third-party sustainable forest management standards
5. We seek to support initiatives that strengthen our values
6. We seek to report ESG performance with clarity and transparency
7. We incorporate environmental, social, and climate risk and opportunity management into investment decisions
8. We respect and uphold human rights across our footprint
9. We seek to develop local supply chains and prioritize local hiring where possible, engaging local communities in our business and supporting rural economic development
10. We support professional growth and development opportunities for all TIG staff and ensure awareness and understanding of our sustainability goals and principles by developing and providing relevant training programs
CERTIFICATION
TIG’s properties have been third-party certified under Forest Stewardship Council® (“FSC”) and Programme for the Endorsement of Forest Certification™ (“PEFC”) recognized standards since 2003.
Currently, 97% of TIG’s timberland assets are certified to FSC or PEFC-recognized sustainability standards [5].
ESG REPORTING
TIG applies transparent and robust measurement and monitoring frameworks to ensure positive impacts from its activities. As a member of the Global Impact Investing Network (GIIN), TIG uses the GIIN’s IRIS+ performance metrics to support transparency and accountability. This information is made available annually through TIG’s Impact Report. TIG continuously seeks to improve its monitoring systems in order to optimize its positive impact. Read more here >
[1] Sources: Nature4Climate (www.nature4climate.org), as of May 2020; Griscom et al. 2017. Natural climate solutions. Proceedings of the National Academy of Sciences. 114(44): 11645–11650.
[2] Sources: Griscom et al. 2017. Natural climate solutions. Proceedings of the National Academy of Sciences. 114(44): 11645–11650; “Substitution Effects of Wood-based Products in Climate Change Mitigation,” Leskinen et. al, 2018; TIG Analysis.
[3] IPCC. 2006. Guidelines for National Greenhouse Gas Inventories. Chapter 12: Harvested Wood Products.
[3] Through BTG Pactual’s legal entity Banco BTG Pactual SA.
[4] Such certifications do not necessarily have any positive or negative effect on returns, or on any other material issue that arises from the use of such ESG designations.
[5] As of May 2023.
