Greeninvesting

Forestry

The longer time horizon of forest assets does come with a degree of risk from externalities such as climate change, wildfire and other natural disasters, although many can be mitigated through management practices and insurance,” David shares.

Because real assets tend to be scarce or finite, demand for them increases with population growth. For example, real estate is a real asset that grows in value in a tight market with few available homes and lots of people looking to buy. Trees are a finite resource in that there is limited arable land upon which to grow them. With global populations estimated to reach 10.9 billion people by the year 2100, demand for trees and the services they provide could be on an upwards trajectory.

“As human populations and the global economy continue to grow, sustainability is likely to be an ongoing, central trend in investing,” says David. “Everything people do that creates a more sustainable outcome is going to become more valuable.”