The CEO of leading Alternative Investment provider, Gresham House, has called for a greater level of investment in UK forestry to help meet burgeoning future demand.
Tony Dalwood, CEO of Gresham House, says demand for timber is set to grow 2.7x by 2050 and highlights the lack of new projects with the capabilities to meet this demand.
The problem is particularly pronounced in the UK with 80% of demand being meet with imports, despite favourable conditions in the UK for domestic supply.
“The UK urgently needs more trees to satisfy its sustainability and economic growth agenda. The Government may have pledged to reach 30,000 hectares of new planting per year by the end of 2024, but with only c. 14,000 achieved by 2021, it is quickly falling short,” said Tony Dalwood, CEO of Gresham House.
Gresham House is a specialist ESG asset manager and naturally seeks to provide positive impact on society or environment , alongside financial gains.
“Investment in forestry generates triple bottom line benefits. It delivers strong financial returns, absorbs more carbon than it releases, and timber is a renewable and climate-friendly raw material which can replace concrete and steel. Forestry also provides an inflation hedge – timber has historically been positively correlated to inflation while being less volatile,” Dalwood said.
