An investor perspective on the forestry and timber sector

Sustainability matters, investments are still rare

The starting point is a 2024 ZHAW study on the market outlook and financing of the Swiss forestry and timber sector, funded by the Federal Office for the Environment under the Wood Action Plan. Most participants were private investors and asset managers who invest mainly in equities and real estate. Around 60 percent consider sustainability important or very important in investment decisions. More than half rate the sector's sustainability performance as good or very good compared with other investments.

Even so, 62 percent currently make no direct investments in the sector. 26 percent are already invested and 12 percent are considering or planning a commitment. 77 percent find timber construction and real estate particularly interesting, and 53 percent want to increase their investments in the coming years. The authors note that the small sample limits how far the results can be generalised.

While many companies expect positive growth prospects, financing this growth is seen as challenging.

Carbon removals as an argument

71 percent of respondents consider the carbon removed in timber buildings significant or very significant. They also rate substitution effects and carbon sequestration in forests as important.

How Timber Carbon sees it

For many investors, the carbon removed in timber buildings has so far been hard to grasp. Timber Carbon, launched in 2026 as a spin-off of Timber Finance, quantifies, certifies and monetises it as carbon removal credits from real buildings. Our portfolio shows the buildings.