BNP Paribas Asset Management launches a dedicated fund for responsible forest management

Stuart Mitchell

BNP Paribas Asset Management is launching the BNP Paribas Future Forest Fund, its first fund dedicated to forests, classified as Article 9 under the SFDR regulation, which aims to contribute to the fight against global warming, improve the resilience of forests and strengthen biodiversity.

What does this fund consist of?

The FFF fund is the first to be launched with the International Woodland Company (IWC), a Danish specialist in responsible investment in forest and agricultural land around the world, as well as consulting on sustainable forestry, agriculture and natural ecosystems, carbon credits and conservation projects. Since 2023, IWC has been majority-owned by BNP Paribas Asset Management, as part of its range of investments in private assets, i.e. those not listed on the stock exchange. IWC teams are now integrated into the Private Assets teams.

This fund is intended for institutional investors who are keen to reconcile sustainability and profitability objectives. It is classified Article 9 according to the SFDR regulation, meaning it pursues a sustainable investment objective, in this case the sustainable and integral management of forests.

The fund will only invest in forests located in mature geographical areas (United States, Oceania, Europe) and certified by the Forest Stewardship Council (FSC)(Opens in a new tab), which guarantees the planning of sustainable forest and land management, the preservation of the ecological functions of the forest, respect for workers’ rights and working conditions and the social and economic well-being of local communities. 

A sustainable fund that is part of the Group’s decarbonization and biodiversity preservation strategy

BNP Paribas Asset Management aims to become a leading sustainable asset manager and a European leader in sustainable and impact private assets. In line with the objectives of its GTS 2025 strategic plan, the BNP Paribas Group created the “Private Asset” business unit in 2023, integrated into BNP Paribas Asset Management, which brings together the expertise of several IPS division business lines dedicated to private asset management.The creation of this new fund is part of the BNP Paribas Asset management’s “Net Zero” roadmap(Opens in a new tab), defined following the signing of the Net Zero Asset Managers (“NZAM”) in a bid to achieve carbon neutrality by 2050 and respect its Biodiversity roadmap(Opens in a new tab). This is also part of the asset manager’s desire to more fully factor in ESG (environmental, social and governance) criteria so as to offer a wide range of Article 8 and Article 9 funds according to the SFDR regulation and meet the growing demand of its clients. This strategy is in line with the BNP Paribas Group’s broader initiatives to protect and restore forests and biodiversity, such as the fight against deforestation or the signing of Act4nature commitments(Opens in a new tab). The Group’s goal is to become one of the European leaders in sustainable investment in private assets by 2030 and to exceed €50 billion in private assets under management.Acting to protect and restore biodiversity is also a business issue

The BNP Paribas Future Forest Fund represents a significant step forward to bring sustainable forestry investment into the mainstream and recognising it as a compelling investment proposition. With this fund, we ensure that our focus on commercial viability is balanced with a strong commitment to enhancing biodiversity and climate resilience.

Otto Reventlow, CEO of IWC

Natural capital investments in practice: find out more about IWC

 
 

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