An equity index focused on timber construction

From pulp to the timber construction chain

Timber investments were institutionalised as early as the 1980s, mostly as direct investments in forests and plantations. From 2007, financial products with a high share of pulp, paper and packaging stocks followed. Launched on 22 February 2022, the CC&S Index focuses on companies in the US, Canada and Europe that produce timber and especially engineered wood products for long-lived buildings. After a strong run from 2020 to 2022, rising interest rates from 2023 led to a correction and a sideways movement.

The timber construction industry is the only established, listed industry whose products remove CO₂ from the atmosphere in the forest and keep it locked away in buildings for the long term.

Selection criteria and weighting

The index covers companies along the entire value chain, from forest to timber construction. Those that manage forests or make timber construction products must show a minimum share of certified raw material or chain-of-custody certification. An average trading liquidity of 100,000 US dollars also applies, which is why the Austrian developer UBM is not included. At the end of September 2024, around 40 percent was allocated to manufacturers of engineered wood products such as particleboard, wood fibre insulation and cross-laminated timber, with further large shares in Timberland REITs, Nordic forest owners and North American lumber producers. The weighting favours small and mid caps, and the US and Canadian dollar together account for 64 percent.

How Timber Carbon sees it

The index makes the whole timber construction chain visible to investors. Timber Carbon, launched in 2026 as a spin-off of Timber Finance, quantifies, certifies and monetises the carbon removed in mass timber buildings as carbon removal credits on the voluntary carbon market. A shorter version of the article appeared in the Holzrevue Finanzblog in January 2025, and we summarise the quarterly results of the index companies in articles such as Results for the fourth quarter of 2024.