Forest Investment Associates (FIA) is honored that its Climate-Smart Forestry Strategy has been named Environmental Fund of the Year, North America by Environmental Finance as part of its 2025 Sustainable Investment Awards.

This recognition reflects FIA’s commitment to developing investment strategies that align long-term climate objectives with institutional portfolio needs. It highlights our Climate-Smart Forestry Strategy and a collaboration with a client – demonstrating how tailored forestry investments can deliver both financial performance and measurable environmental outcomes.

Responding to Evolving Investor Needs with Climate-Smart Forestry Strategy

Launched in late 2022, FIA’s Climate-Smart Forestry strategy was developed in response to the growing demand for investment mandates that address climate resilience, carbon accountability, and long-term value creation.

During the implementation of this strategy, FIA worked closely with a Danish pension fund and structured a diversified timberland portfolio focused on carbon sequestration and ESG alignment – designed to support the FIA’s client in meeting net-zero ambitions while maintaining performance goals.

By mid-2024, FIA had effectively allocated nearly all committed capital through off-market, ESG-focused transactions with experienced forestry partners. FIA believes off-market sourcing was critical to the timely deployment of the mandate, emphasizing how providing counterparties with mutually beneficial transaction opportunities can enhance originations and execution, especially in competitive markets.

ESG Credibility and EU Taxonomy Alignment

To further support the client’s evolving needs, FIA launched two major consulting assignments:

Limited Assurance Readiness: FIA partnered with a Big 4 consulting firm to complete a carbon reporting readiness assessment – advancing the client’s goal to obtain third-party assurance and solidifying FIA’s role as a credible climate investment partner.
EU Taxonomy Alignment: In collaboration with a Swedish consultancy firm, FIA conducted a gap assessment on alignment with EU regulatory criteria. This process helped refine FIA’s internal ESG reporting and supported the client’s disclosure obligations under emerging standards.

A Unified Approach to Long-Term, Sustainable Investment

FIA appreciates the recognition from Environmental Finance and acknowledges the vital role of our clients, partners, and team members in advancing investment strategies that support both financial performance and long-term environmental value. This award affirms FIA’s mission: to provide sustainable forest investment solutions that are designed to meet client objectives while fostering long-term relationships rooted in trust and service.

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