With the Timber Finance Carbon Capture & Storage Index, the Zurich-based Timber Finance Initiative entered the scene in February 2022. The index focuses on the carbon held in timber and covers the forestry and timber industry in the US, Canada and Europe with 30 listed companies. Lignum reported on it on 3 March 2022.
Outlet
Lignum
Published
March 3, 2022
The entire value chain of engineered timber construction
The index focuses on companies that contribute to the production of long-lived timber construction products. Companies mainly active in paper, packaging, pulp and other short-lived uses of wood were excluded. According to the announcement, it had clearly outperformed the MSCI World and the S&P Timber and Forest Index since March 2020. The article names as drivers the promotion of timber construction in Europe and North America, new technologies for timber high-rises and bridges, and the net zero targets of companies and countries. The index was intended as the basis for investable products.
Timber is the hidden champion of sustainable finance.
Wide coverage
That is how the index publishers summed up their conviction. Besides Lignum, Graubündenholz, Moneycab, finanznachrichten.de and the Australian industry site Timberbiz reported on the first financial index of the modern forestry and timber industry. The Austrian magazine Internationaler Holzmarkt picked it up in its April 2022 issue on financial indices.
How Timber Carbon sees it
Since April 2023, a listed tracker certificate has been based on the index universe, and the article An equity index focused on timber construction explains how it is built. 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.
Topics
Source
Lignum
Umbrella organisation of the Swiss forestry and timber industry
