Sustainability & ESG

With a continued and growing awareness by businesses, investors, and consumers concerned with environmental and societal impacts, we are seeing increasing interest in incorporating Environmental, Social, and Governance (ESG) principles and sustainability accounting into land investments.

In today's& landscape, conservation, carbon mitigation banking, and environmentally sound stewardship are underwritten by third-party certification and other oversight mechanisms. They may also be used to achieve private "insetting" goals.

LandVest has core competency and vast project experience in most aspects of ESG land investment considerations including forest carbon offset design and implementation, conservation easement design and appraisal, community and equity considerations around land access and forest certification.

CONSERVATION EASEMENTS

Conservation easements are a common overlay to timberland properties. “Working Forest Conservation Easements” (WFCEs), as they are often termed, are most prevalent across Northeastern and Midwestern timberland regions; however, examples can be found throughout the country. Although most WFCEs are custom-tailored to each property, they share similar terms and principles depending on the situation.

The purpose of these instruments is primarily to conserve open space, protect sensitive sites, limit future fragmentation and development, promote public access and outdoor recreation, and to encourage or mandate a productive working forest into perpetuity.

WFCEs often include a comprehensive forest management plan or third-party sustainability certification requirement, ensuring long-term, professional-quality timber and forest management. Whether by implementing a new conservation easement or by virtue of stewarding an existing easement, each quantifies very real ESG metrics.

CARBON SEQUESTRATION

Carbon sequestration is a more recent value and benefit associated with timberland properties. Sequestering carbon is done to mitigate/offset carbon emissions elsewhere to maintain climate health. Supported by both compliance and voluntary markets, certain timberland properties provide desirable conditions for this type of activity.

Ownerships capable of additive carbon sequestration and those developed for this purpose offer investment flexibility by creating a parallel cash flow option to the sale of forest products, depending on the current market forces.

FOREST CERTIFICATION

Forest certification offers landowners a voluntary check and balance, third-party verification system oversight of management practices, and chain of custody. Certification offers accountability and compliance with ESG principles, maintains chain of custody continuity, and can also contribute to favorable forest product pricing and marketability.

Sustainable Forestry Initiative® (SFI®) and Forest Stewardship Council® (FSC®C120428) are the two primary oversight bodies for timberland owners (SFI marks are registered marks owned by the Sustainable Forestry Initiative Inc.).

For more information about sustainability investing in timberland properties, please contact David Speirs at  dspeirs@landvest.com or  (207) 874-4982 or any one of our many  land brokers at LandVest. 

For more information on the disposition or marketing of lands suitable for climate solutions and sustainable investment contact David Speirs at   dspeirs@landvest.com or  (207) 874-4982

Learn more about  Forest Certification with LandVest