Manulife Investment Management, one of the largest timberland owners in the country, has successfully raised $224.5 million for its climate Manulife Forest Climate Fund LP1,2 (FCF).
The investment strategy focuses on timberlands managed to generate carbon credits. Another aspect of the strategy involves establishing new forests through afforestation or reforestation to generate premium carbon credits and sustainable timber value in the long term.
Tom Sarno, the global head of timberland investments at Manulife Investment Management, emphasized the substantial demand for climate change mitigation solutions and strong investor interest in strategies supporting carbon emissions reductions and net-zero commitments. Sarno expressed confidence in the Manulife Forest Climate Fund's potential to align with investors' diverse climate goals, citing the firm's extensive experience in sustainable forest management and commitment to high-quality carbon sequestration as key value drivers.
The Manulife FCF will specifically focus on generating a sustained supply of high-quality carbon credits available through direct in-kind transfers for investors' climate goals or for monetization in the carbon markets through offset sales, realizing financial value. As a carbon-focused impact investment strategy, it holds the distinction of being the firm's first natural capital fund categorized under Article 9 of the European Commission's Sustainable Finance Disclosure Regulation (SFDR).
Eric Cooperstrom, managing director of impact investing and natural climate solutions at Manulife Investment Management, highlighted the fund's alignment with the company's decades-long experience in sustainable timberland management. Cooperstrom emphasized the importance of responsible commitments to emission reduction and removal, particularly through high-quality forest carbon credits, as integral to helping investors achieve both their climate and financial objectives.
Manulife Investment Management, previously known as Hancock Timber Resource Group, oversees approximately 5.5 million acres of certified timberland across several countries, including the United States, Canada, New Zealand, Australia, Brazil, and Chile. The certification includes adherence to either the Sustainable Forestry Initiative or the Forest Stewardship Council. Additionally, the company manages around 400,000 acres of prime farmland in major agricultural regions.
