(Corrected to say the strategy will include transactions of up $40 million, the original article said the strategy would be $40 mln total)

A working forestry strategy with a nature positive objective in Latin America is in development by asset manager Forest Investment Associates (FIA), Carbon Pulse has learned.

Around a quarter of the land managed under the strategy from the US-headquartered investor will be dedicated to conservation, said MaryKate Bullen, director of sustainability at FIA.

“I’m very excited because it means every forest that our clients will be invested in is going to be contributing to meaningful conservation at a large scale,” Bullen told Carbon Pulse.

The strategy will also have a bioeconomy target using for producing renewable wood products from its forests.

FIA is a sustainable timber-focused firm managing $4.6 billion in assets across over 2 mln acres, as of the end of June. Most of its assets are in the US, but it also manages land in Brazil and Chile.

Bullen could not confirm a launch date or strategy target size, but said it would encompass transactions of $10-40 mln.

HORSES FOR COURSES CONSERVATION

FIA will not set a target for improving one type of metric across the conservation projects held by the strategy, but will decide what is best for biodiversity in each area.

“We intend to use the ‘high conservation value’ approach to develop management plans. That looks at things like ecosystem function, cultural values, and significance for keystone or threatened species,” Bullen said.

In one area, the team might plant threatened species of trees, while in another they might restore degraded ecosystems, she said.

“It’s going to be a ‘horses for courses’ kind of approach. We have a basket of tools that we can operate from. We want to be in a position to use the right tool on the right property.”

Although FIA would consider using biodiversity credits to generate value from its conservation projects, underwriting the concept is “not within our risk appetite right now”, she said.

GREENHUSHING

Climate Asset Management is another investor that has committed to setting aside land for conservation, saying in September that 10% of an Australian land acquisition would support biodiversity.

Martin Berg, CEO at the natural capital-dedicated firm, said despite his company’s action he had noted a ‘greenhushing’ in nature-related activity, with firms afraid to speak about their initiatives due to fear of criticism.

“That for me came out really clearly in New York Climate Week – many corporates saying: ‘We’re doing all these things, but we’re really worried about talking about it’,” he said during a forest and biodiversity conference session in London last month.

“We’re seeing a big trend in firms saying we’re continuing to study how we can engage … but they don’t do anything, or they are actually are doing quite a bit but they’re not talking about it.”

The phenomenon followed criticism of the carbon markets, creating challenges for nature markets, Berg said.

Bullen agreed that carbon-linked news did not welcome “sticking your neck out” in nature-related investments.

“Part of it is because of the backlash on carbon and the fact that there’s such a disproportionate amount of news coverage scrutinising carbon markets, rather than scrutinising something like fossil fuel lobbying,” she said.

“I think there has been a quieting down of big announcements on nature from some of the corporates. Very few companies have come out with nature positive action plans.”

The number of nature positive commitments has not matched the boom in companies announcing net-zero plans, she said.

“Folks are thinking: ‘If we don’t know what we’re going to do, we really can’t be out there and be public about it’.”

A few firms have to be willing to take “a little bit of flack” to get the ball rolling with nature positive commitments, she said.

“It is a newer field but I do find it a little bit surprising that we’re not hearing more firms step up, even if they haven’t articulated the pathway to get there.”

By Thomas Cox – t.cox@carbon-pulse.com

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