Forestry

The Food and Agriculture Organisation of the UN, FAO, estimates that in Africa alone, over two million hectares of forests are lost every year. Population growth, urbanisation and a growing middle-class add pressure on the remaining natural forests.

Sustainable, responsible forestry is one key way to curb deforestation 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. Most of the forests managed by our investee companies have been certified by the international Forestry Stewardship Council (FSC) as socially and environmentally responsible and sustainable.

Sustainable forestry has long been one of Finnfund’s focus areas. At the end of 2023, our investments in forestry (portfolio, commitments and decisions) were worth 191 million euros, representing 15% 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 sawmills and plywood mills.

Watch a video: 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.