The second edition of Integrating FSC Certification into Impact Investing is now available.
First launched in June 2025, this publication provides investment analysts with data-driven insights into how FSC certification contributes to financial, environmental, and social outcomes. Drawing on research findings, case studies, and global sustainability frameworks, it serves as a practical resource for investors seeking to integrate certified forest assets into their investment strategies.
Growing relevance of FSC in sustainable finance
Recognition of forests’ critical roles in climate change mitigation, biodiversity conservation, and socio-economic development continues to drive demand for sustainable forest management.
According to the Global Impact Investing Network’s survey of 293 impact investing organizations, investor allocations to forestry increased from 2023 to 2024, representing a 53% rise in assets under management.
Sustainability and risk mitigation
FSC certification supports investors in managing key sustainability risks, including deforestation, biodiversity loss, pest outbreaks, and irresponsible land use. FSC-certified operations are consistently associated to stronger biodiversity outcomes and improved ecosystem integrity.
Investor adoption and practical use cases
A growing number of asset managers have integrated FSC-certified assets into their portfolios. These investors apply a range of strategies to balance certification costs with financial feasibility, including pre-feasibility assessments to evaluate the potential value of certification prior to capital investment.
Alignment with global sustainability frameworks
FSC certification is referenced across multiple sustainability reporting frameworks and forestry-related benchmarks, supporting investor alignment with global standards such as the Taskforce on Nature-Related Financial Disclosures.
What’s news in this second edition
This updated edition is strengthened by new research and practical evidence demonstrating how FSC certification supports improved financial, environmental, and market outcomes. It also explores the role of FSC certification in sustainability assessments across investment portfolios.
Key updates include:
- New evidence recent econometric research showing how FSC certification improves financing conditions (e.g., access to bank loans in Guatemala), supports operators through tax savings (Gabon), reduces costs and boosts competitiveness (Kenya), and strengthens market access for smallholders (Viet Nam).
- New environmental findings demonstrating that FSC certification is significantly associated with increases in forest cover—particularly in low- and middle-income countries where governance challenges are greatest.
- New write-ups on the Verified Impact Benchmark Tool and the FSC Performance & Outcomes Dashboard, expanding the publication’s coverage of FSC’s impact data.
- A clarified audience statement confirming the publication is intended for all investment analysts, not only those with impact mandates.
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