Foresight Sust Regulatory News (FSF)

26 March 2024

Foresight Sustainable Forestry Company Plc

Publication of Sustainability and Environmental, Social and Governance Report

Foresight Sustainable Forestry Company Plc ("FSF", "the Company"), an investment company that invests in UK forestry and afforestation assets, today announces the publication of its second dedicated Sustainability and Environmental, Social and Governance ("S&ESG") report for the year to 30 September 2023.

This report showcases the Company's commitment to measuring, delivering, monitoring and improving on its S&ESG objectives. It also includes more detailed information on the progress the Company has made over the year in specific areas such as engagement and consultation with local communities, biodiversity baselining and investigations into the emerging areas of nature-related financial disclosures and natural capital accounting. These processes underpin the Company's strategy.

Highlights

· During the year, the Company's portfolio sequestered 35,081 tonnes of carbon dioxide.

· The Company completed planting at four afforestation properties. The planting schemes have been carefully designed to incorporate a diverse mix of tree species.

· Value ascribed towards the creation of carbon credits increased to £2.7 million in aggregate (30 September 2022: £0.6 million). 

· The Company's Skills Training Programme was expanded and now includes Scotland. Ten candidates were enrolled, up from four in 2022. The majority have since been employed into the forestry sector.

· The Company has made progress towards its community engagement goals and held 28 public consultations during the year. Tangible outcomes included a two-year lease and management arrangement with a local community group.

· The Company completed baseline biodiversity assessments on a representative cross-section of 27 properties using a bespoke biodiversity tool. This demonstrates steps taken by the Company to deliver on its IPO commitment to protect and enhance biodiversity across the portfolio.

· The Company engaged with its suppliers to encourage them to attain the International Organization for Standardization ("ISO") accreditation or a reasonable equivalent.

· The Company is pursuing Wallacea Biodiversity Credits using the Wallacea Trust Methodology[1] at its Fordie Estate property, which has a strong biodiversity potential on a landscape scale, making it an ideal test site. This involves baselining, forecasting and measuring biodiversity results across five metrics with the goal of monetising the related nature positive credentials in the future.

Full report

The full report is available to view on the Company's website here: https://fsfc.foresightgroup.eu/shareholder-centre

Josephine Bush, Chair of the Company's S&ESG Committee, said:

"We are pleased to present our second dedicated Sustainability and Environmental, Social and Governance report. Our commitment is to make continued progress towards our key sustainability objectives through innovation, engagement and management. Over the year, we have increased the supply of home-grown UK timber and our 2024/25 planting scheme is on track to see c.9million trees planted over c.4,500 hectares - equivalent to one-third of the total area planted across the UK in the year to 30 March 2023. We believe that our growing portfolio delivers a range of natural capital services that benefits society at large, the local communities in which we are present, and in parallel, drives value for our shareholders."

For further information, please contact:

About the Company

Foresight Sustainable Forestry Company Plc ("the Company") is an externally managed investment company investing in a diversified portfolio of UK forestry and afforestation assets.

Targeting a net total return of more than CPI +5%, the Company provides investors with the opportunity for real returns and capital appreciation driven by the prevailing global imbalance between supply and demand for timber; the inflation-protection qualities of UK land freeholds; and biological tree growth of 3% to 4% not correlated to financial markets.

The Company also offers outstanding sustainability and ESG attributes and access to carbon units related to carbon sequestration from new afforestation planting.

The Company targets value creation as the afforestation projects successfully achieve development milestones in the process of converting open ground into established commercial forest and woodland areas.

The Company is seeking to make a direct contribution in the fight against climate change through forestry and afforestation carbon sequestration initiatives and to preserve and proactively enhance natural capital and biodiversity across its portfolio.

The Company is managed by Foresight Group LLP.  https://fsfc.foresightgroup.eu/

Notes

This announcement does not constitute, and may not be construed as, an offer to sell or an invitation to purchase investments of any description, or the provision of investment advice by any party. No information set out in this announcement is intended to form the basis of any contract of sale, investment decision or any decision to purchase securities in the Company.

This announcement may include statements that are, or may be deemed to be, "forward-looking statements". These forward-looking statements can be identified by the use of forward-looking terminology, including the terms "believes", "estimates", "anticipates", "expects", "intends", "may", "will", "targeting" or "should" or, in each case, their negative or other variations or comparable terminology. All statements other than statements of historical facts included in this announcement, including, without limitation, those regarding the Company's financial position, strategy, plans, proposed acquisitions and objectives, are forward-looking statements.