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Scotland visit with the Lundbeck Foundation

In the first half of September 2024, we traveled to Scotland with the Lundbeck Foundation to visit their investment in Scottish forestry. Since 2018, Cresco Capital Services has helped the Lundbeck Foundation build a diverse portfolio of forest assets in Scotland which is under asset management by Cresco Capital Services. 

This year, we visited some of the woodlands in the portfolio together with representatives from the Lundbeck Foundation to explore various development opportunities. Forestry can seem like a complicated business to many, and to be successful in investment forestry, it is essential to make the right decision at the right time – it is more than just watching trees grow. But with attention to detail, forests can be attractive assets with great potential to deliver a robust financial return as well as a range of benefits to society. 

Below is a small selection of the topics that were covered on the trip with capable assistance from local partners and experts. 

Peatland restoration is an effective way to end the degradation of carbon-rich peatlands and end the release of greenhouse gasses into the atmosphere. Healthy peatlands even sequester carbon in organic material that builds up over time. Because of this, peatland restoration can be a way to change degraded peatlands from a carbon source to a carbon sink. Scotland has a well-established scheme for supporting peatland restoration, to support climate mitigation projects, and the restoration of native habitats. Peatland restoration projects can also generate carbon credits for the Voluntary Carbon Market by becoming registered with the Peatland Code, a voluntary certification standard in the UK. 

Thanks to the people from Scottish Woodlands Ltd. for meeting with us about this theme. 

Timber production plays an important role in the green transition. During the visit we got the chance to visit one of the largest sawmills in Scotland which resulted in fruitful discussions on how the silvicultural decision we make today, will meet the future demand for timber. Species, volumes and qualities can all be affected through silvicultural management. But how will the demand-side look in the future?  

 With the UK government raising the annual mandatory housing target to meet their target of 1,5 mil. new homes over the next five years in England, we have indications that demand for timber will respond accordingly to meet that target. Furthermore, we are witnessing a high level of innovation in the wood industry, to make the best use of wood in construction and products, to replace conventional materials. With this in mind, we have confidence that locally and sustainably produced timber will continue to be a popular product in the future, both in local and global markets. 

Aside from the timber production, the forest is also expected to deliver several other ecosystem services to society, which might require different management decisions. At Cresco Capital Services, we are convinced that we can manage the forests to a standard that can produce sustainable materials for the future while maintaining forests as valuable landscape elements and habitats. 

Thanks to James Jones and Sons Ltd. for meeting with us to talk about the use of timber in the UK. 

Forest infrastructure is a necessity to harvest and haul wood. Forest roads can be an expensive challenge to establish and require correct maintenance. But without good access, there can be no removals from the forest, which is one of the main functions of commercial forestry. It requires experience and skill to design effective forest infrastructure to improve forestry operations and asset value.