Forestry investments offer institutional investors the opportunity to combine sustainability aspects, ongoing income and long-term value appreciation potential.
Sustainability is not only an essential feature of the forestry asset class, but also an integral part of the investment strategy of the MEAG Sustainable Forestry Equity Fund. This is also reflected in the fact that the fund meets the requirements of Article 9 of the EU's Sustainable Finance Disclosure Regulation (SFDR). This underlines Munich Re (Group)'s commitment to sustainability and meets the steadily growing demand for sustainable investment solutions in the institutional sector.
The MEAG Sustainable Forestry Equity Fund is a closed-end alternative investment fund under Luxembourg law (Reserved Alternative Investment Fund – RAIF).
Article 9 Classification
The MEAG Sustainable Forestry Equity Fund (‘MSFEF’) aims to achieve the highest possible percentage of sustainable investments in line with the requirements of the EU taxonomy for forest management. In order to meet the requirements of the EU taxonomy, the fund's management team conducts analyses in accordance with the EU taxonomy for forest management, which illustrate the impact of various climate change scenarios on the fund's forest properties during its term and beyond. This draws on the expertise of the Munich Re Group, which provides the fund with one of the world's most comprehensive databases on the impacts of acute and chronic risks from climate change.
Source: Munich RE
Goal of sustainability
The fund manages its entire assets sustainably and pursues two main objectives that have been defined for this fund:
- The fund pursues a climate-positive strategy by allocating at least 5% of its investment volume to reforestation measures, thereby binding and removing atmospheric carbon in the newly planted forests. The carbon stock of all forest holdings held by the MSFEF is to be maintained or strengthened in the long term.
- Sustainable forest management plays a key role in aligning the supply of goods and services from forests with both current and future needs. It is part of the fund's investment strategy to certify 100% of the MSFEF's forest assets according to FSC and/or PEFC within two years of acquisition. This demonstrates that the management of MSFEF assets is economically viable, socially responsible and ecologically sound. The certification status will be maintained throughout the entire investment period.
ESG rating in our investment process
Every MSFEF investment must comply with strict guidelines that set out a series of ESG-related criteria that must be met both at the time of acquisition and during the MSFEF's investment phase. It is important to note that the specific ESG criteria, their analysis and evaluation are subject to continuous knowledge expansion, review and refinement.
ESG aspects are an integral part of every phase of the fund's investment and asset management process:
