Private Forest Management

Palm trees on a road

By Paul Szewczyk on Unsplash

Private Forest Management
For Income Generation Activities and Carbon Sequestration
SectorMost major industry classification systems use sources of revenue as their basis for classifying companies into specific sectors, subsectors and industries. In order to group like companies based on their sustainability-related risks and opportunities, SASB created the Sustainable Industry Classification System® (SICS®) and the classification of sectors, subsectors and industries in the SDG Investor Platform is based on SICS.
Renewable Resources and Alternative Energy
Forestry and Paper
Business Model Description

Invest in: > Commercial reforestation to develop sustainable high value timber, teak, bamboo and other agricultural assets in Cambodia > Plantation of rubber or other key tree products to expand export income of Cambodia

Grandis Timber (GT) provides reforestation to develop sustainable high value timbers such as teak, mahogany, eucalyptus and acacia plantations. Doing so, they intend to improve plant materials, track report and manage plantation data, as well as provide training and development for local staff and achieve international certifications. (9)

The Floresta Project is a large-scale venture that incorporates commercial forestry, reforestation and natural rejuvenation of forests. It aims to combine reforestation of 90% of the total project area with a community forest, and a fast growing teak plantation on 3.5% of the total project.

Leopa Bamboo has 2 lines of activities: they are helping with the management of Bamboo forests by practicing sustainable harvesting done by communities and they produce bamboo furniture, leveraging carbon credits for their activity. They target to raise ~USD 10 mn.

The Malaysian Lipp Engineering announced (in 2020) that they would build a bamboo processing plant, and plan to invest USD 750 mn to produce and export 4 products - bio-activated carbon, bamboo pulp, bio-oil and bamboo fiber. They have submitted a request for a land concession for 25,000 ha.

Expected Impact

Contribute to reforestation initiatives to protect natural resources and reduce environment degradation.

Indicative ReturnDescribes the rate of growth an investment is expected to generate within the IOA. The indicative return is identified for the IOA by establishing its Internal Rate of Return (IRR), Return of Investment (ROI) or Gross Profit Margin (GPM).
15% - 20% (in IRR)
Investment TimeframeDescribes the time period in which the IOA will pay-back the invested resources. The estimate is based on asset expected lifetime as the IOA will start generating accumulated positive cash-flows.
Long Term (10+ years)
Market SizeDescribes the value of potential addressable market of the IOA. The market size is identified for the IOA by establishing the value in USD, identifying the Compound Annual Growth Rate (CAGR) or providing a numeric unit critical to the IOA.
USD 100 million - USD 1 billion
Average Ticket Size (USD)Describes the USD amount for a typical investment required in the IOA.
USD 1 million - USD 10 million
Direct ImpactDescribes the primary SDG(s) the IOA addresses.
Life on Land (SDG 15)
Indirect ImpactDescribes the secondary SDG(s) the IOA addresses.
Responsible Consumption and Production (SDG 12) Decent Work and Economic Growth (SDG 8) Climate Action (SDG 13)
Sector Sources
  • (1) Ashden. (2014). Ashden Winners. (2) Carruthers, M. (2021). Green Charcoal Could Curb Deforestation. (3) Royal Government of Cambodia. (2021). Long-term Strategy for Carbon Neutrality. (4) Open Development Cambodia. (2016). Forests and Forestry. (5) Clements, T; Suon, S; Wilkie, D; and Gulland, E. (2014). Impacts of Protected Areas on Local Livelihoods in Cambodia. (6) USAID. (2020). How USAID Green Invest Asia Facilitated Acquisition of Cambodia's First and only Sustainably Certified Plantation. (7) Royal Government of Cambodia. (2010). National Forest Programme 2010-2029. (8) Grant, H & Billon P. (2021). Community-level Respondes to 'Forest Violence' in Cambodia.
IOA Sources
  • (9) Grandis Timber Limited. (2022). Mission, Goals & Objectives. (10) Global Forest Watch. (2010). Primary forest loss in Cambodia.,83.2Mt%20of%20CO%E2%82%82%20emissions. (11) Floresta. (2021). The Smart Reforestation Initiative and What if Reforestation was a Viable. Business Model? (12) Timber Biz. (2019). Cambodia Collects More Than $2m Forestry Revenue. (13) Grandis Timber Ltd. (2022). (14) Instituto Forestal Nacional. (2014). Rentabilidad de la Inversion en Plantacion de Eucalyptus con Fines Maderables. (15) Global Forest Watch. (n.a.). Global Forest Watch: Cambodia. (16) Global Initiative. (2021). Forest Crimes in Cambodia. (17) Royal Government of Cambodia. (2018). Cambodian Sustainable Development Goals (CSDGs) Framework (2016-2030). (18) International Labour Organization (2020). Consejo de Administración. (19) Royal Government of Cambodia. (2017). National REDD+ Strategy 2017-2026. (20) Royal Government of Cambodia. (2010). National Forest Programme 2010-2029. (21) Royal Government of Cambodia. (2023). Cambodia: National Environment Strategy and Action Plan 2016-2023. (22) Royal Government of Cambodia. (2006). Sub-Decree on Forest and Non-timber Forest Products Allow for Export and Import. (23) Royal Government of Cambodia. (2002). Law on Forestry. (24) Royal Government of Cambodia. (2023). Cambodia: National Environment Strategy and Action Plan 2016-2023. (24) Timber Biz. (2019). Cambodia Collects More Than $2m Forestry Revenue.