The Copenhagen-based Hempel Foundation, part of Hempel Group, a global supplier of coatings for man-made structures, has invested in two sustainable plantation funds as part of its biodiversity impact investment initiative.
The initiative aims to invest in the preservation, sustainable management and restoration of tropical forests with the first two investments focused on Southeast Asia and Latin America, in accordance with the commercial foundation’s overall biodiversity strategy.
The foundation didn’t provide details of the amount that the initiative will administer, but it says that after screening over 40 different funds it identified two that fit its strict investment criteria.
In Southeast Asia, the foundation has invested in New Forests’ Tropical Asia Forest Fund 2, a closed-end fund that aims to capitalize on long-term investment opportunities in sustainable plantation forestry in the region. New Forests continues to raise capital for the fund and anticipates a second close with a goal of raising US$300 million.
The fund is expected to develop a diversified portfolio of sustainable forest plantation assets in Malaysia, Indonesia, Vietnam, Thailand, Laos and Cambodia for end markets like timber, rubber and carbon.
In Latin America, Hempel is investing in Timberland Investment Group’s US$1 billion Reforestation Fund.
“We recognise that impact investments provide a new and growing opportunity to sustainably finance biodiversity conservation at scale,” says Anders Holm, Hempel’s executive director. “We, therefore, want to build on our philanthropy by investing in low- to medium-risk impact investment funds that have the greatest potential to support biodiversity in the areas of the world where we are already funding conservation projects.”