White paper on a new investment trend: timber stocks

A reference work on timber investments

The white paper “Anlegen in die Moderne Wald- und Holzbauindustrie” aims to close the knowledge and investment gap between the financial market and the timber industry. It describes the climate performance of the forestry and timber industry, reviews the available financial products and shows how timber stocks can replace emission-intensive construction stocks. The article calls modern timber construction, combined with climate-effective forest management, one of the most promising negative emissions technologies, and points to applications ranging from motorway bridges to high-rises.

Timber investments are not all the same.

Thinking long term

Fedrizzi advises approaching timber investments, like other cyclical construction stocks, over the long term on a “buy and hold” basis, especially as the timber construction megatrend is only just beginning. Forest- or pulp-heavy stocks behave differently from companies further down the processing chain, and listed stocks differently from private companies. Larger, well-capitalised companies are less affected by weak demand and should benefit from an expected consolidation. As an example, he cites the certificate on 21 companies listed on SIX (symbol TIMBRZ). He expected further momentum from the international recognition of timber construction as a negative emissions technology.

How Timber Carbon sees it

We summarise the publication of the white paper in August 2023 in ZHAW and Timber Finance publish a guide to investing in timber. 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.