How can Finance help to leverage Sustainable Forest Management and Traceable Value Chains?

Mirova, a French investment fund, will soon announce a €350 million initiative focused on agriculture and forestry. For the forestry component, they will systematically require FSC certification for both forest managers and industry partners they support in Mexico, Vietnam, and Africa. International Woodland Company (IWC), a Danish natural resources investment expert, will invest 500 million€ in certified sustainable forestry assets in the United States, Australia, New Zealand and Europe. CNP Assurances, a French insurance company, has announced that 100% of the forests it owns will be FSC certified by 2030. Other financial institutions have also announced that they will invest exclusively in FSC-certified forests.

Why this growing movement? Is it driven by evolving regulations in Europe? A communications strategy? Or do these investors believe that FSC-certified forests are more resilient to climate change than others?