New Forests has launched the Australia New Zealand Landscapes and Forestry Fund for institutional investors, with the aim of raising $600 million over the next two to three years. Source: Timberbiz
ANZLAFF will seek to provide investment exposure to integrated forest, land and agriculture markets in Australia and New Zealand. It will target investments into core forestry plantations in selected investment regions, alongside processing and logistics companies, with some exposure to primary agriculture commodities.
Additionally, the fund will aim to enhance climate mitigation through carbon sequestration and emissions reduction opportunities.
ANZLAFF is New Forests’ fourth round Australia and New Zealand landscapes and forestry strategy, building on the experience of previous strategies which collectively manage $4.67 billion.
Mark Rogers, Senior Managing Director, Australia, New Zealand and the United States at New Forests said, the risk of climate change was driving strategic asset allocation decisions of the world’s largest investors.
“We believe that investing in the land and forestry sectors is crucial in leading the transition to a sustainable future. In this latest strategy, we will seek to maximise the value of landscape investments by positioning investors to benefit from the alignment of sustainable productive land management, the rise of climate finance, exposure to decarbonisation outcomes, and the circular bioeconomy,” he said.
“Australia and New Zealand are well-established destinations for institutional investors seeking to build a diversified core forestry, land-based investment portfolio, in stable, low sovereign risk locations with close access to export markets across Asia.”
Underpinning New Forests’ investment approach is its Responsible Investment Framework which seeks to ensure investments are aligned with the interests of the communities New Forests invests in and with the needs of clients. Some of these initiatives include delivering certified sustainable forestry; sustainable agriculture; increased natural climate solutions by reducing carbon emissions and increasing carbon removals; supporting the bioeconomy where renewable wood fibre replaces fossils-based materials; and reconciliation action plans.
“Beyond the sustainable management of assets, ANZLAFF is designed to provide investors with an opportunity to invest in natural climate solutions at scale, not only in the monetisation of carbon sequestration opportunities but also in the emerging circular bioeconomy,” Jo Saleeba, Head of Sustainability at New Forests said.
“Wood fibre is projected over time to replace many higher carbon products currently created from petrochemical plastic, steel and concrete.”
