27 Pension Protection Fund Climate Change Report 2021/22 METRICS AND TARGETS CONTINUED Forestry CASE STUDY Sustainable forestry is a key element of Forestry certi昀椀cation is vital to Funding our RI strategy as it can help mitigate ensuring good management practices, CO2 emissions by storing carbon. preserving high conservation-value a昀昀orestation This makes sustainable forestry assets forests and combating deforestation. one of the few viable nature-based It is a metric that we comprehensively In the past year, we participated in investment solutions in the journey track – see panel below to see the the seeding of a new a昀昀orestation towards a Net Zero world. Well- level of certi昀椀cation in our portfolio. fund in Scotland. managed forests can also increase Fluctuations over the years are primarily The strategy combines existing biodiversity and are more resilient driven by new acquisitions of land, productive land with newly-acquired to the e昀昀ects of climate change. especially for a昀昀orestation projects. land where new planting will take We currently invest in soft and place and contribute towards the hardwood forestry assets globally, with generation of carbon credits. We are investments in Australia, New Zealand, proud to be one of the 昀椀rst UK asset the US, the UK, Ireland, the Baltics and owners to be part of such a project. the Nordics. We work closely with Although global decarbonisation is our managers and are glad to see critical to tackling global warming, continuous progress in their practices we recognise that carbon credits and consideration of climate risks. All will remain part of the solution for of our managers have now started any hard-to-abate emissions while measuring the carbon sequestration also creating a crucial incentive to of their forestry assets. develop forestry assets as long-term sinks to sequester carbon. Certi昀椀cation of the PPF’s share of timberland 2019 2020 2021 98.2% 93.1% 98.4% Certi昀椀ed timberland in accordance with the FSC and/or PEFC Timberland in the process of certi昀椀cation 0.2% 5.8% 1.6% in accordance with the FSC and/or PEFC Land that is sustainably managed in 0.2% 0.0% 0.0% accordance with the FSC and/or PEFC, but that cannot be certi昀椀ed Other 1.4% 0.3% 0.0%