Investing sustainably in the forest and timber industry
15.03.2023
Timber Finance, as part of the Timbagroup, is launching the «ZKB Tracker Certificate Dynamic on the Timber Finance Forest-based Construction Basket», the first structured financial product that allows investors to invest in the carbon impact of the forest and timber construction industry.
The sustainability megatrend is changing the world: from energy to nutrition to the construction industry (built environment) - climate change is forcing many industries to rethink and opening up opportunities for investors.
One market with strong growth is modern timber construction: since the «timber turnaround» in 2020, the global forest and timber construction industry has entered a new growth cycle. Relevant for today's investors is also that wood contributes to the decarbonization of the CO²-intensive construction industry, as it is the only natural building material that grows back, stores CO² and can replace concrete and steel. The «ZKB Tracker Certificate Dynamic on the Timber Finance Forest-based Construction Basket» is open for subscription until 19.4.2023 and is based on a basket of shares of 20 leading listed companies from the forest and timber industry. Zürcher Kantonalbank acts as issuer, MRB Fund Partners AG as investment manager and Timber Finance Management AG as investment advisor.
«In our equity product, we focus on CO² absorption by sustainably managed forests and long-term CO² storage in durable wood products and load-bearing structures with simultaneous replacement of CO²-intensive building materials such as steel and concrete,» explains Erik Reichmuth, Managing Director of Timber Finance Management AG. «We see that timber construction is a megatrend that will be with us for the next decades and how climate change is triggering changes at all levels of the timber construction industry: structural, regulatory and technological».
Why should investors want to invest in the forest and timber industry?
· Modern timber construction - combined with sustainable, climate-resilient forest management - is one of the most promising negative emission technologies and was recommended as a carbon sequestration technology by the United Nations Climate Council UNFCCC in 2022 under «Timber in Construction».
· The timber construction market has been growing at double-digit rates in some cases since the 2020 timber turnaround. A new cycle of investment and growth has begun, making timber construction even more competitive for the construction industry.
· Today's timber buildings are not chalets. They are high-rise and large urban buildings. The tallest timber high-rise is currently being built in Switzerland at 100 meters high. Numerous wooden high-rise buildings are being planned around the world.
· Disruptive technologies are changing what is possible. Today, wood can be used to build highway bridges, wooden basements, load-bearing structures and high-rise buildings, replacing emissions-heavy concrete and steel.
Product Information on the «ZKB Tracker Certificate Dynamic on the Timber Finance Forest-based Construction Basket»
The Basket Certificate (Valor 123 576 365, Symb TIMBRZ) issued for subscription from 12.04.2023 by Zürcher Kantonalbank (AAA) as Issuer, MRB Fund Partners AG as Investment Manager and Timber Finance Management AG as Investment Advisor is based on a basket of shares of 20 leading, listed companies from the forestry and timber industry.
The certificate is managed on a discretionary basis and contains companies from the stock universe of the «Timber Finance Carbon Capture & Storage Index», the world's first Timber Index focusing on climate impact through carbon storage in durable wood products used in timber construction (ISIN DE000SL0ECH7).
More information can be found here.