Skip to main content Accessibility help
×
Hostname: page-component-586b7cd67f-t7fkt Total loading time: 0 Render date: 2024-11-27T19:37:31.475Z Has data issue: false hasContentIssue false

12 - Sustainable Landscape Investment

A Framework for Governance of Institutional Investment in the Forestry Sector

from Part II - Tools to Address Wicked Problems

Published online by Cambridge University Press:  24 July 2020

William Nikolakis
Affiliation:
University of British Columbia, Vancouver
John L. Innes
Affiliation:
University of British Columbia, Vancouver
Get access

Summary

Institutional investment in forestry has now exceeded US$100 billion, much of this in the United States. Many large institutional investors are considered ‘universal owners’ because they own a portion of all sectors, geographies and markets of the global economy through their investment portfolios. These large investors increasingly acknowledge that negative environmental and social externalities pose material risks to their long-term investments, with many beginning to consider the alignment of their portfolios with internationally agreed objectives on climate change and sustainable development. Efforts to measure and monitor ESG (environmental, social, governance) performance of forestry investments are now well established. We propose a framework of criteria to assess landscape-scale outcomes from forestry investment activities which we call Sustainable Landscape Investment. This framework can help address wicked forestry problems and the often-competing demands of investors, local communities, governments and NGOs.

Type
Chapter
Information
The Wicked Problem of Forest Policy
A Multidisciplinary Approach to Sustainability in Forest Landscapes
, pp. 328 - 353
Publisher: Cambridge University Press
Print publication year: 2020

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

References

Adams, C. A. 2017. The Sustainable Development Goals, Integrated Thinking and the Integrated Report [online]. Available at: http://integratedreporting.org/wp-content/uploads/2017/09/SDGs_integratedthinking_and_integratedreport.pdf (accessed 14 March 2018).Google Scholar
Bernow, S., Klempner, B. and Magnin, C.. 2017. From ‘Why’ to ‘Why Not’: Sustainable Investment as the New Normal [online]. Available at: www.mckinsey.com/industries/private-equity-and-principal-investors/our-insights/from-why-to-why-not-sustainable-investing-as-the-new-normal?cid=other-eml-alt-mip-mck-oth-1710 (accessed 14 March 2018).Google Scholar
Bordon, A., Feller, E., Sullivan, R. and Martindale, W.. 2015. Fiduciary Duty in the 21st Century [online]. Available at: http://unepinquiry.org/publication/fiduciary-duty-in-the-21st-century/ (accessed 14 March 2018).Google Scholar
Brockerhoff, E. G., Jactel, H., Parrotta, J. A., Quine, C. P. and Sayer, J.. 2008. Plantation forests and biodiversity: oxymoron or opportunity? Biodiversity and Conservation 17(5):925951.Google Scholar
Brotto, L., Pettenella, D., Cerutti, P. O. and Pirard, R.. 2016. Planted Forests in Emerging Economies: Best Practices for Sustainable and Responsible Investments [online]. Available at: www.cifor.org/library/6136/planted-forests-in-emerging-economies-best-practices-for-sustainable-and-responsible-investments/ (accessed 14 March 2018).Google Scholar
Bullen, M. 2016. Responsible Investment in Forestry. A Primer on ESG-Based, Institutional Investment [online]. Available at: www.fao.org/fileadmin/user_upload/rap/Asia-Pacific_Forestry_Week/doc/Stream_5/ST5_24Feb_MKBullen_Investment.pdf (accessed 14 March 2018).Google Scholar
Bullen, M. and Brand, D.. 2016. The Business Case for Landscape Level Conservation and Restoration: New Forests’ Experience Investing in Landscapes in Southeast Asia. Asia Pacific Rainforest Partnership Private Sector Roundtable: Projects and Policy Briefs [online]. Available at: www.cifor.org/wp-content/themes/dw-focus-child/asia-pacific-rainforests-summit/pdf/APRP_PSR_ProjectsPolicyBriefs2907%20V5.pdf (accessed 14 March 2018).Google Scholar
CDC Group. 2017. ESG Toolkit for Fund Managers. Forestry and Plantations [online]. Available at: http://toolkit.cdcgroup.com/sector-profiles/forestry (accessed 14 March 2018).Google Scholar
Cheng, B. and Le Clue, S.. 2010. Forestry in Asia. Issues for Responsible Investors [online]. Available at: https://platform.reprisk.com/downloads/partnerreports/2/Forestry_in_Asia-Issues_for_Responsible_Investors.pdf (accessed 14 March 2018).Google Scholar
Costanza, R., d'Arge, R., De Groot, R., et al. 1997. The value of the world’s ecosystem services and natural capital. Nature 387:253260.CrossRefGoogle Scholar
Daily, G., Alexander, S., Ehrlich, P. R., et al. 1997. Ecosystem services: benefits supplied to human societies by natural ecosystems. Issues in Ecology [online], no. 2, Spring 1997. Ecological Society of America. Available at: www.esa.org/esa/wp-content/uploads/2013/03/issue2.pdf (accessed 14 March 2018).Google Scholar
FAO. 2011. Framework for Assessing and Monitoring Forest Governance [online]. Available at: www.fao.org/publications/card/en/c/03cc002e-b31e-5081-af25-94fabb00f7e8/ (accessed 14 March 2018).Google Scholar
FAO. 2015. Criteria and Indicators for Sustainable Forest Management [online]. Available at: www.fao.org/forestry/ci/16609/en/ (accessed 14 March 2018).Google Scholar
Generation Foundation. 2015. Allocating Capital for Long-Term Returns. The Strengthened Case for Sustainable Capitalism [online]. Available at: www.genfound.org/media/1373/pdf-genfound-wp2015-final.pdf (accessed 14 March 2018).Google Scholar
GIIN. 2017. The State of Impact Measurement and Management Practice [online]. Available at: https://thegiin.org/assets/2017_GIIN_IMM%20Survey_Web_Final.pdf (accessed 14 March 2018).Google Scholar
GIIN IRIS. 2017. Home. What Is IRIS? [online]. Available at: https://iris.thegiin.org/ (accessed 14 March 2018).Google Scholar
Griscom, B. W., Adams, J., Ellis, P. W., et al. 2017. Natural climate solutions. Proceedings of the National Academy of Sciences of the USA 116(7):27762776.Google Scholar
Houghton, R.A., Birdsey, R. A., Nassikas, A. and McGlinchey, D.. 2017. Forests and Land Use: Undervalued Assets for Global Carbon Stabilization [online]. Available at: http://whrc.org/wp-content/uploads/2015/06/PB_Forests_and_Land_Use.pdf (accessed 14 March 2018).Google Scholar
IFC. 2012. Performance Standards on Environmental and Social Sustainability [online]. Available at: www.ifc.org/wps/wcm/connect/115482804a0255db96fbffd1a5d13d27/PS_English_2012_Full-Document.pdf?MOD=AJPERES (accessed 14 March 2018).Google Scholar
Kerr, T. 2017. Creating Markets for Climate Business: An IFC Climate Investment Opportunities Report [online]. Available at: www.ifc.org/wps/wcm/connect/974eedcb-f3d9-4806-b32e-73720e6f4ca7/IFC-Climate_Investment_Opportunity_Creating_Markets.pdf?MOD=AJPERES (accessed 14 March 2018).Google Scholar
Markowitz, H. M. 1952. Portfolio selection. The Journal of Finance 7(1):7791.Google Scholar
Nikolakis, W., Cohen, D. and Nelson, H. W.. 2012. What matters for socially responsible investment in the natural resources sectors? Mutual funds and forestry in North America. Journal of Sustainable Finance and Investment 2(2):136151.Google Scholar
Nikolakis, W., Nelson, H. and Cohen, D.. 2014. Are Indigenous Peoples important to sustainable development? Evidence from socially responsible investment mutual funds in North America. Organization & Environment 27(4):368382.Google Scholar
New Forests. 2012. Responsible Investment in the Forest Sector [online]. Available at: www.newforests.com.au/wp-content/uploads/2012/10/201205-Responsible_Investment_in_Forestry.pdf (accessed 14 March 2018).Google Scholar
New Forests. 2015. Timberland Investment Outlook 2015–2019 [online]. Available at: www.newforests.com.au/p1837/ (accessed 14 March 2018).Google Scholar
New Forests. 2016. 2015 Sustainability Report [online]. Available at: www.newforests.com.au/wp-content/uploads/2016/04/New-Forests-2015-Sustainability-Report-web.pdf (accessed 14 March 2018).Google Scholar
New Forests. 2017. 2016 Sustainability Report [online]. Available at: www.newforests.com.au/wp-content/uploads/2017/09/New-Forests-2016-Sustainability-Report-web.pdf (accessed 14 March 2018).Google Scholar
New Generation Plantations. 2017. About. What Is NGP? [online] Available at: http://newgenerationplantations.org/en/ngp/ (accessed 14 March 2018).Google Scholar
Portfolio Decarbonisation Coalition. 2017. Portfolio Decarbonisation Coalition [online]. Available at: http://unepfi.org/pdc/ (accessed 14 March 2018).Google Scholar
PRI. 2017. About the PRI. What Is Responsible Investment? [online]. Available at: www.unpri.org/about/what-is-responsible-investment (accessed 14 March 2018).Google Scholar
RISI. 2015. Institutional Investments in Timberland Topping $100 Billion Globally: But Does the Outlook for Forest Products Markets Support This Bullish Trend? [online]. Available at: www.risiinfo.com/press-release/institutional-investments-in-timberland-topping-100-billion-globally-but-does-the-outlook-for-forest-products-markets-support-this-bullish-trend/ (accessed 14 March 2018).Google Scholar
Sayer, J., Sunderland, T., Ghazoul, J., et al. 2013. Ten principles for a landscape approach to reconciling agriculture, conservation, and other competing land uses. Proceedings of the National Academy of Sciences of the USA 110(21):83498356.Google Scholar
Smith, P. and Friedmann, J.. 2017. Chapter 7: Bridging the Gap – Carbon dioxide removal. The Emissions Gap Report. A UN Environment Synthesis Report [online]. Available at: https://wedocs.unep.org/bitstream/handle/20.500.11822/22070/EGR_2017.pdf?sequen%E2%80%A6 (accessed 14 March 2018).Google Scholar
Stefanova, K., Teten, D. and Beardsley, B.. 2016. Asset Managers, Prepare to Have Your Business Disrupted [online]. Available at: www.institutionalinvestor.com/article/b14z9qb69zjl6c/asset-managers-prepare-to-have-your-business-disrupted (accessed 14 March 2018).Google Scholar
Swensen, D. F. 2000. Pioneering Portfolio Management. New York: The Free Press.Google Scholar
Tropical Forest Alliance 2020. 2017. Commodities and Forests Agenda 2020: Ten Priorities to Remove Tropical Deforestation from Commodity Supply Chains [online]. Available at: www.tfa2020.org/wp-content/uploads/2017/09/TFA2020_CommoditiesandForestsAgenda2020_Sept2017.pdf (accessed 14 March 2018).Google Scholar
UNEP. 2015. Explore Topics. Ecosystems [online]. Available at: http://web.unep.org/ecosystems/story/landscape-approach-development (accessed 14 March 2018).Google Scholar
United Nations. 2017. Sustainable Development Goals. 17 Goals to Transform Our World [online]. Available at: www.un.org/sustainabledevelopment/sustainable-development-goals/ (accessed 14 March 2018).Google Scholar
Wall Street Journal. 2016. Pension Funds Pile on the Risk Just to Get a Reasonable Return [online], 31 May 2016. Available at: https://wsj.com/articles/pension-funds-pile-on-the-risk-to-get-reasonable-returns-1464713013 (accessed 14 March 2018, requires subscription access).Google Scholar
WWF. 2011. Living Forests Report [online]. See Chapter 2: Forests and energy and Chapter 4: Forests and wood products. Available at: http://wwf.panda.org/about_our_earth/deforestation/forest_publications_news_and_reports/living_forests_report/ (accessed 14 March 2018).Google Scholar

Save book to Kindle

To save this book to your Kindle, first ensure [email protected] is added to your Approved Personal Document E-mail List under your Personal Document Settings on the Manage Your Content and Devices page of your Amazon account. Then enter the ‘name’ part of your Kindle email address below. Find out more about saving to your Kindle.

Note you can select to save to either the @free.kindle.com or @kindle.com variations. ‘@free.kindle.com’ emails are free but can only be saved to your device when it is connected to wi-fi. ‘@kindle.com’ emails can be delivered even when you are not connected to wi-fi, but note that service fees apply.

Find out more about the Kindle Personal Document Service.

Available formats
×

Save book to Dropbox

To save content items to your account, please confirm that you agree to abide by our usage policies. If this is the first time you use this feature, you will be asked to authorise Cambridge Core to connect with your account. Find out more about saving content to Dropbox.

Available formats
×

Save book to Google Drive

To save content items to your account, please confirm that you agree to abide by our usage policies. If this is the first time you use this feature, you will be asked to authorise Cambridge Core to connect with your account. Find out more about saving content to Google Drive.

Available formats
×