More opportunities for timber on the capital market

316 companies, 72 with a real link to timber construction

The study started from 316 listed companies in the forestry and timber sector. Only 72 of them have a direct link to timber construction or to structural wood products with long-term carbon removal potential. For the ESG Timber Score, researchers Tania Kornsteiner, Andreas Hecht and Thomas Richter combine a company's business activity with its ESG data and sustainability reporting. The scientific paper was published by Acadlore Publishing Services.

The study also shows where conventional ESG ratings fall short: 89 percent of the companies analysed hold forest or wood certifications, 83 percent hold management or supply chain certifications. Yet fewer than ten percent are directly active in timber construction.

A tool for climate-focused portfolios

The score is complemented by a Performance Score based on share returns from 2018 to 2023. There is no fixed weighting. Investors decide for themselves whether to focus more on carbon removal potential or on return and risk. This makes it possible to clearly separate companies that lock up carbon long-term through timber construction from producers of short-lived products such as paper or packaging. According to Holzkurier, smaller listed companies and firms from Asia and Africa could also be included more deliberately in sustainable investment strategies.

The ESG Timber Score creates more transparency for investments in timber construction and carbon removals.

How Timber Carbon sees it

The construction and real estate sector causes almost 40 percent of global CO₂ emissions. For more capital to flow into timber construction, its climate performance has to become measurable and comparable. Timber Carbon, launched in 2026 as a spin-off of Timber Finance, shares this goal: at the level of the individual building, we quantify, certify and monetise the carbon removed in mass timber buildings. Our technology page explains how it works.