Timber - a more sustainable solution


Global population and consumption growth mean that pressure on the planet's resources is building all the time. Sustainable, renewable alternatives are few and far between, but the benefits from using timber make it a serious contender for future investment.

Given the right husbandry and management, forests can be easily replenishedIt is now widely accepted that we have to find more sustainable ways of using the planet’s resources.

Many of these natural resources will one day run out. And with populations growing all the time, that day is fast approaching.

Renewables are in short supply, but in timber the world has a potential solution to its looming resources crisis.

It is a carbon-neutral source of energy because trees absorb as much carbon dioxide as they release when burnt as fuel, and is a more energy-efficient building material than concrete, bricks or steel.

It can also serve as a more sustainable agricultural alternative to bio-fuels, which compete with food crops for the use of land.

Most importantly, given the right husbandry and management, forests can be easily replenished. For these reasons, timber should be considered as a strategic and sustainable investment for the future.

Fund context:

Launched in 2008, Pictet's Timber fund seeks to develop opportunities from economic and demographic growth. Especially in Asia, the drive in demand for timber is key in areas such as building, construction and personal consumption.

While the average American uses nearly 300kg of paper per year, the average Chinese citizen currently uses just 45kg*. As living standards improve in emerging nations, consumers will require more processed timber; particularly paper, food packaging and hygiene products.

*1 Source: FAO, Worldwatch Institute, 2006, World Resources Institute

Related funds:

Pictet Timber

Tags: Forestry | Pictet |

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Paul Gastonall articles

Paul Gaston

Paul Gaston joined Pictet in 2007 and is Head of UK Sales. Previously, Paul worked for both Goldman Sachs and Fidelity where he was responsible for mutual sales in the UK and Channel Islands. Many of his clients included some of the leading Fund of Fund houses, wealth managers and insurance companies.Paul has over twenty years’ experience in the Financial Services Industry, spending the first ten broking European Sovereign Debt in both London and Paris, specialising on the French OAT and BTAN markets.Paul holds the Investment Management Certificate.

Paul has over twenty years’ experience in the Financial Services Industry, spending the first ten broking European Sovereign Debt in both London and Paris, specialising on the French OAT and BTAN markets.Paul holds the Investment Management Certificate.


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