Driven by demand for construction materials and other uses such as pulp and paper, the global forestry sector is expected to experience greater than 6 percent growth annually through 2027. The global forestry sector is also beset by illegality at multiple levels of the supply chain, with the annual trade in illegal timber alone worth between $50-$150 billion. Booming demand for wood and pulp combined with a sector where supply chains are plagued by illegality and often irresponsible harvesting practices creates significant risks for investors and poses challenges for governments.
This brief makes the case that despite some short-term uncertainty in the regulatory environment, the trend is ultimately towards a world where requirements to be able to trace wood products to their origin will be the new normal. Investors and companies that act now to address the investment risks posed by systemic illegally- and unsustainably-sourced wood products will mitigate operational and reputational risks.
Explore case studies that underscore how these risks materialize and discover how five key principles of transparency and traceability can help investors delineate between false solutions and meaningful mitigation: Read the briefing.