INVL fund’s forests in Lithuania receive FSC certificate

The INVL Sustainable Timberland and Farmland Fund II’s forest holdings in Lithuania now internationally certified by the Forest Stewardship Council® (FSC®)

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The INVL Sustainable Timberland and Farmland Fund II (“STAFF II”), which invests in forests and farmland in the Baltic Sea region and the Central and Eastern parts of the European Union, seeking to manage them sustainably with a long-term view, today announces the award of the Forest Management certificate to the fund’s indirectly owned company Šalnupis. This certificate commits the fund to manage the forests both responsibly and sustainably in terms of environmental protection, community needs and the economic role of forestry activity.

Sigita Bizulienė, Partner at INVL Sustainable Timberland and Farmland Fund II, commented:

“Forest management certification is a voluntary process which requires open dialog with all stakeholders associated with a forest whether the local communities, government institutions or economic personnel. Stakeholders can present their recommendations and opinions at any time about how the fund is managing the forests it owns.”

FSC, the global authority in forest management standards’ certification, is only granted after forests have been audited by independent experts. Certificates are valid for a period of 5 years, though audits of the INVL Sustainable Timberland and Farmland Fund II’s forests in Lithuania will be conducted at least once a year, to assess continued compliance with the requirements of the certificate (NC-FM/COC-067275).

One of the most important FSC requirements states that commercial activities should not be conducted on at least 10% of the forest area that is managed by the fund. This will leave biologically valuable forest land to exist with their natural dynamics or by means of nature management measures and will enable them to individually adapt and maintain the necessary habitat structure for sensitive and protected species.

The requirements of the FSC certificate also call for a greater focus on sustainable forest use; the volume harvested per year must not exceed the level of the annual volume gain. Additionally, average annual felling volume is required to be less than 95% of the annual growth.

Martynas Samulionis, Managing Partner at INVL Sustainable Timberland and Farmland Fund II, added:

“The fund was always managing its forests according to sustainable principles even before this FSC certificate, so there are no major changes to the daily operations except that we now have more opportunities to sell our timber at competitive market prices. Some timber industry buyers will only accept certified timber products; thus, our list of potential customers has grown. Certified forests clearly create real value for investors. However, forests are not just a source of timber and wherever they are, whether in Lithuania or elsewhere, they need to be managed with a strong focus on resilience improvement. This approach means they will survive for centuries and continue to provide many benefits to people and the environment.”

The FSC standard for Lithuania includes 10 principles and 56 criteria. The standard is treated as the compulsory guidelines for certification compliance and was developed considering national forestry specifics. The criteria include compliance with all laws, respect for the rights of workers and local communities, maintaining ties with these communities and also pursuing long-term economic, social and environmental benefits from the forest. The principles also encourage environmental protection, sustainable forest use planning, maintenance, restoration, monitoring and conservation of valuable forest land.

Launched in 2020, the INVL Sustainable Timberland and Farmland Fund II invests in forests and farmland in the Baltic Sea region and the Central and Eastern parts of the European Union, seeking to manage them sustainably with a long-term view. The fund is managed by INVL Asset Management, part of INVL, the leading Baltic investment management and life insurance group.

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