Impact Investments and Forest Valuations

Impact investment and forest valuation services support investors in capturing the real value of forest assets by integrating income streams from timber sales with carbon impacts, carbon crediting and biodiversity impacts or other variables of interest.

Benefits

  • Systematic forest valuations for annual reporting and transactional purposes
  • In-depth analysis and due-diligence of the forest value components, including carbon crediting potential
  • Cost-efficient and timely service execution by leveraging Simosol’s state-of-the-art forestry IT solutions, such as IPTIM Assets
  • Possibilities for integration with other services and products

Target audiences

  • New and existing forest investors
  • Impact investors
  • Forest funds

Capturing the true value of forests

Simosol’s impact investments and forest valuations services advise investors on how to capture the real value of forests, regardless of the applied business model, be it in timber or tonnes of carbon.

Forests as an investment asset class is nothing new. It has many preferable characteristics, providing resilience and diversity to any investment portfolio. However, putting a value on forests is much trickier than for most other real assets. Forests are biological assets whose physical quantity is in constant flow as a result of natural growth dynamics and applied management activities. Importantly, this physical quantity usually serves as the basis for the valuation of a forest. 

 

 

Forests are becoming an increasingly attractive asset class to invest in, not only for their timber-related value, but also for their natural capability to capture carbon from the atmosphere and store it in the forest biomass. This is opening completely new ways for the analysis of forests as investments and the applicable business models which can now consider carbon offsetting and carbon crediting.


What software is used

Software

Strategic planning

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Software

FRESCOS

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How this solution was used

Reference

Forest asset valuation

Forest asset valuation in Kenya, including assessment of costs and markets, wood flow modelling, harvest scheduling, and discounted cash flow analysis.

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Reference

Annual valuation of forest investment targets

Valuation of forest investment targets in Finland, Ireland, Latvia and Estonia. Wood flow and cash flow modelling for forest assets.

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