Purpose
This project aimed to unlock investment in Australian forestry by integrating natural capital into financial and management systems. It developed tools to assess, monitor, and manage natural capital risks and opportunities. The project supported sustainable finance by identifying non-timber values like carbon, water, and biodiversity and provided practical guidance for forest managers and investors to align natural capital with corporate reporting and decision-making.
Summary
This project explored how Australian forestry could unlock financial innovation by integrating natural capital into investment and management systems. The project developed tools to assess, monitor, and manage natural capital risks and opportunities, focusing on non-timber values such as carbon, water, and biodiversity. It delivered a risk assessment framework, a data management strategy, and a practical handbook to guide forest managers and investors. It aligned natural capital reporting with corporate systems and regulatory expectations, enabling forest enterprises to attract sustainable finance and improve long-term environmental and economic outcomes.
Benefits to the Forest and Wood Products Industry
This project delivered technical benefits to the forestry industry by integrating natural capital into financial and operational decision-making. It enabled forest enterprises to access new funding streams—such as green bonds and sustainability-linked loans—by quantifying non-timber ecosystem services like carbon sequestration and biodiversity. The project provided resources for forestry, financial and other industry stakeholders, including a practical guide to assist natural capital accounting – The Natural Capital Handbook: A practical guide to corporate natural capital accounting, assessment, risk assessment and reporting.
Acknowledgement
This work was supported by funding provided to Forest and Wood Products Australia (FWPA) to administer the National Institute for Forest Products Innovation program (NIFPI).
Funding for the program was provided by the Australian Government, the Tasmanian Government and Australian forest and wood products industry.
