Forestry sector report identifies seven key ecosystem services
A new report produced by the Forestry Natural Capital Project sheds light on the importance of nature in financial decision-making processes. The project, of which Ibá (Indústria Brasileira de Árvores) is a member, brings together 18 forestry organizations from 38 countries.
The newly released report, “Forests and the Future Bioeconomy” highlights seven priority ecosystem services that can serve as a foundation for measuring and valuing the contributions of cultivated trees to the economy, society, and the planet.
The initiative is led by the International Sustainable Forestry Coalition (ISFC) and the Capitals Coalition, with the support of the Taskforce on Nature-related Financial Disclosures (TNFD). It unites the global forestry sector around a common goal: to make nature visible in financial decision-making.
The report represents the first phase of the Forestry Natural Capital Project, which included workshops, research, and analyses aligned with the TNFD LEAP Approach and the Natural Capital Protocol. During this process, participants identified and prioritized the seven ecosystem services that best reflect the most material contributions of the cultivated trees sector to global prosperity. The entire project is expected to last 18 months.
The seven key ecosystem services identified are:
- Sustainable supply of wood and fiberforest
- Water quantity
- Carbon
- Habitat and biodiversity
- Water quality
- Air quality
- Recreational and cultural activities
These services form the backbone of the natural capital of the planted forest sector – tangible and measurable benefits that sustain the bioeconomy and human well-being.
“The cultivated trees sector is demonstrating how the value of nature can move from concept to action and into corporate reporting. It serves as a bridge between frameworks, strategic thinking, and the corporate decision-making room,” said Mark Gough, CEO of the Capitals Coalition.
“Natural capital accounting by companies can play an important role in building an evidence base that supports corporate actions, including better risk management, capital allocation, and reporting to investors and other stakeholders. We welcome the continued pilot testing conducted globally by the cultivated trees sector under the leadership of the ISFC and the Capitals Coalition,” added Tony Goldner, Executive Director of the TNFD.
This milestone marks an unprecedented collective leadership effort spanning continents and companies. The project combines science, responsible management, and finance to create a solid foundation for natural capital accounting in the forestry sector.
The next phase of the project will focus on translating the identified ecosystem services into Natural Capital Accounts, to be defined by COP31, when the world’s first Forestry Sector Natural Capital Report will be officially presented on a global scale.
