EDINBURGH, SCOTLAND, UNITED KINGDOM (News release) -- In the run up to COP30, 18 leading forest sector companies, stewarding more than 24 million hectares (almost 60 million acres) in 21 countries, have announced a world first project led by the International Sustainable Forestry Coalition.
The companies are coming together to pilot test the application of emerging Natural Capital Accounting (NCA) principles and reporting formats given their shared acknowledgement of their stewardship of forestry assets as natural capital. The participants will use a consistent frame of reference for approaching the vast nature assets which they steward on their estates. These assets are often called 'Natural Capital' and provide vital 'ecosystem services' to business and society.
Independent Chair of the ISFC, Dr. David Brand said, "The world must begin to increase investments with positive impacts on both climate and nature. However, if we are to attract the scale of funding required these investments must also make economic sense. The global forestry sector can deliver sustainable, renewable materials as well as positive outcomes for climate and nature. Central to this is understanding and standardizing the approach to how we value the vast natural capital assets managed by these companies."
Mark Gough, Chief Executive Officer of Capitals Coalition said, "The contribution that the forestry sector can make to nature and climate goals has often been undervalued. The ISFC is stepping up to address this by working with the Capitals Coalition and TNFD to grapple with this challenging issue of measuring and reporting on the natural capital which is inherently a part of their landscape wide holdings."
Directly managing the project will be Rayne van den Berg, Chief Value Officer at Value Australia and former CFO of leading Australian forestry company, FORICO, who said, "Many individual companies and thought leaders have worked for years to develop frameworks and methodologies to quantify and value Natural Capital with the aim of providing better information for more informed decision-making. This project will be a 'game-changer' as, for the first time, a group of forestry companies will share insights about pilot testing of natural capital accounting to understand the ecosystem services which they steward alongside their timber and fiber."
Tony Goldner, Chief Executive Officer of the Taskforce for Nature Related Financial Disclosures said, "TNFD is pleased to support this global sector effort to apply natural capital accounting. Aligned with the TNFD's open innovation and pilot testing approach to scaling practical action, ISFC has been able to bring together an impressive range of forestry sector players prepared to share insights from practical experience for the good of nature and climate outcomes. The TNFD framework, and the LEAP process, being adopted by enterprises all over the world, provides the frame of reference for this project. The missing piece of that puzzle has been the valuation of ecosystem services, which must occur if we are to pivot globally away from nature destructive investments to nature enhancing capital flows. TNFD will utilize the learnings from this project to help inform its guidance and to demonstrate the link between TNFD nature-related assessments and natural capital accounting for valuation and to support corporate reporting."
The participating companies and entities are:
1. Aurora Sustainable Lands
2. Arauco
3. CapMan
4. Climate Asset Management
5. France Valley
6. Forestry England
7. Forest Investment Associates
8. Green Diamond Resource Company
9. Gresham House
10. Mercer International
11. Mitsui & Co.
12. New Forests
13. Nippon Paper Industries
14. Oji Holdings
15. PotlatchDeltic
16. Rayonier
17. Stora Enso
18. Sumitomo Forestry
*The project will consider entry to additional qualifying companies until 31 July 2025.
About the ISFC:
The ISFC represents major forestry companies across the world which steward tens of millions of hectares in 37 different countries on all six forest growing continents. The ISFC is open to applications for membership from those which share its vision and meet its requirements. Read more at https://is-fc.com/
About the Capitals Coalition:
The Capitals Coalition is a global collaboration of the leading initiatives involved in measuring and valuing natural, social, and human capital, providing best-in-class technical expertise and deep understanding of this evolving space. https://capitalscoalition.org/
About the TNFD:
The Taskforce on Nature-related Financial Disclosures (TNFD) is comprised of 40 business and finance leaders from around the world and was launched in 2021 with the support of the G20. TNFD provides recommendations and guidance for market participants and other stakeholders about how nature beyond climate should be assessed, managed and reported. It has built a global movement of support and action, including over 500 organizations and over USD$17 trillion in assets under management (AUM) now committed to reporting their nature-related issues aligned with the TNFD recommendations published in September 2023. The TNFD recommendations build on the previous approach and recommendation of the Task Force on Climate-related Financial Disclosures (TCFD) and are aligned with the impact standards of the GRI, the European Union's Corporate Sustainability Reporting Directive (CSRD) and the sustainability reporting standards of the International Sustainability Standards Board (ISSB). https://tnfd.global/
