Christophe Butz, a sustainability expert at Pictet, looks at how to benefit from investing in forests.
We all know forests are critical element of the ecosystem and global survival as a whole. However, turning this valuable resource into a commercially sustainable product is the key to slowing deforestation. Yet as an asset, timberland makes sense – it is resilient to inflation as a real asset. Furthermore, as a tree matures its size and usefulness increases, and subsequently so does the price. In a difficult economic climate, timber companies have no need to harvest their crops, because if simply left to grow the value of the asset only increases. The current discount between the value o...
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