For investors looking to build portfolios that are aligned with net-zero objectives, farmland and timberland have never been so important. Timberland has the potential to be a net negative carbon investment, thanks to the ability of forests to remove carbon from the atmosphere. Farmland’s carbon profile also compares favorably to other types of real assets.
In a keynote interview for the Agri Investor Impact Report 2023, Gwen Busby, head of research and strategy at Nuveen Natural Capital, explains that the key is for investors is to build profiles that balance their net-zero objectives with favorable risk-return outcomes. She further discusses that farmland and timberland typically offer very stable returns and can provide a hedge against inflation, while also providing benefits linked to natural climate solutions.
Topics discussed
- Defining natural capital solutions
- Meeting financial and environment targets with farmland and timberland
- Incorporating ESG and sustainability metrics into traditional analytic frameworks
- Climate benefits of farmland and timberland
- Generating verified carbon credits through natural climate solutions
- Managing and mitigating risk through diversified natural capital portfolios
- New opportunities in natural climate solutions
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