Investing in natural capital: where good stewardship is good business

Our clients’ financial success directly depends on the health of the farms and forests we manage on their behalf. Our vertically integrated global farmland and timberland management teams—from portfolio managers to professional farm and forest managers—enable us to craft and execute long-term property management plans that promote ecological health and resilience, which are intrinsic to generating strong financial returns.

Learn more about investing in natural capital

Natural capital sustainable investing report

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What we produce

In addition to financial and impact objectives, investments in timberland and agriculture are investments in assets that meet basic human needs—food, feed, fuel, fiber, and shelter—all of which we can expect demand to grow in line with population and income growth.

Timberland benefits

Renewable raw materials, providing for basic human needs (housing, furniture, paper)

Forest carbon sequestration

Protect soil, air, and water quality

Protect biodiversity and high conservation value forest

Contribute to sustainable development through economic growth and rural employment

Recreation opportunities

Agriculture benefits

In 2023, our agriculture assets produced:

Over 24 million pounds of almonds

equivalent to 390 million servings¹

Over 13 million pounds of walnuts

equivalent to more than 210 million servings¹

41 million pounds of pistachios

equivalent to 660 million servings¹

Over 1 million pounds of cherries

equivalent to more than 4 million servings²

Over 48 million pounds of cranberries

equivalent to more than 220 million servings³

8 million pounds of grapes

enough to produce almost 19 million bottles of wine⁴

229,855 bins of apples

equivalent to more than 505 million apples⁵

5,671 bins of citrus

equivalent to more than 13 million oranges⁶

Healthy nutritious food, contributing to food security

Soil carbon sequestration

Pollinator habitat

Recreation opportunities

Contribute to sustainable development through economic growth and employment in rural areas

Renewable energy opportunities

1 Assumes a 1oz serving size. 2 Assumes a 5oz serving size. 3 Assumes a 3.5oz serving size. 4 Assumes 3lbs of grapes needed per 750ml bottle of wine. 5 Assumes 2,200 apples per bin. 6 Assumes 3,000 mandarins and 2,200 navels per bin.

Our stewardship approach focuses on three core thematic considerations—climate, nature, and people

Our integrated property management capabilities aim to reduce costs, enhance alignment of interests, and ensure that commitment to sustainability carries through from investment strategy to on-the-ground execution.

Climate

We take climate change seriously, as it presents material risks—and opportunities—for our timberland and agriculture investments. Our goal is to mitigate the risks to the extent we’re able, adapt to the risks that cannot be fully mitigated, and realize as many of the opportunities as we can.

Learn more about how investing in forests and farms can provide opportunities for climate impact

Nearly 1.8 million metric tons of C0₂ removed annually

over the past five years through our managed forests and farms

Nearly 2.5 million metric tons of C0₂ stored

in wood products harvested in 2023

Nearly 6.1 million metric tons of forest carbon credits sold

by our timberland management group since 1985

Nearly 1.4 billion trees planted

by our timberland management group since 1985

Important disclosures

Source: Manulife Investment Management. All data is as of December 31, 2023. Please refer to the 2023 natural capital sustainable investing report for details.

Nature

We view nature as our business. The forests and farms we manage are ecosystems that provide immense value and vitality to communities and economies. We believe it's our job to keep them healthy and productive over the longterm by protecting sensitive lands and biodiversity, adhering to strict water and land management policies and best practices, and supporting forest growth.

100%

of our managed global forests⁷ and U.S. and Australian farmland⁸ is certified sustainable

100%

of our farms with regenerative agriculture practices⁹

492,000

cumulative acres of our managed sensitive forest lands are protected¹⁰

295

acres of pollinator habitat managed across our California orchards

23%

of our timberland has a conservation designation¹¹

100%

of our investments account for water risk and opportunity

Important disclosures

Source: Manulife Investment Management. All data is as of December 31, 2023. Please refer to the 2023 natural capital sustainable investing report for details.

7 100% of our forests were certified under either the Sustainable Forestry Initiative (SFI) or Forest Stewardship Council (FSC), and some of our forests in Australia and New Zealand carry dual FSC and Programme for the Endorsement of Forest Certification (PEFC) accreditation. As a condition of certification, forests must have management plans, including consideration of biodiversity. 8 Certification is by Leading Harvest and is based on an annual assessment of the conformation to its Farmland Management Standard. Most current data is shown. 9 Includes farms employing one or more of the following practices: conservation tillage or no till, cover vegetation/crop; crop residues, crop rotation, intercropping, nonproductive vegetation, rotational grazing, and soil amendment. 10 Sensitive lands are defined as lands whose attributes may lend themselves to management for purposes not related to timber production. They typically are deemed critical habitat for sensitive or endangered species or are lands with high scenic, historical, cultural, or recreational values. We actively seek out and work closely with public agencies and environmental groups to consummate conservation transactions and initiatives that will protect these lands. As a fiduciary, we cannot simply give away our investors’ lands, but we work diligently to conclude transactions that preserve the lands while providing a fair return to our clients. Protection may include moving the land into public or conservation group ownership or placing permanent restrictions on how it can be managed, such as through a conservation easement. 11 Forests with conservation designation include land bearing one or more of the following designations: old growth forest, forest ecosystem of high conservation value, high-conservation value forest, conservation easements, areas with restricted management due to presence of threatened and endangered species, areas of culture or historical significance, and buffer areas such as stream management zones and riparian management zones. Year-on-year change may be affected by asset acquisitions and/or dispositions in addition to new conservation designations on the existing land base.

People

We value our people, employees, and contractors and work to ensure that we're offering not only safe and healthy working environments but the tools, training, and support they need to thrive. We're also committed to supporting and strengthening the local and indigenous communities in which we operate, providing rural employment opportunities, public use of our land, and support for local causes.

5.0 million

acres of land are open for public access¹²

29%

women staff representation

19%

racially and ethnically diverse individuals staff represention¹³

70th

percentile employee engagement survey score (with 89% of employees responding)¹⁴

Important disclosures

Source: Manulife Investment Management. All data is as of December 31, 2023. Please refer to the 2023 natural capital sustainable investing report.

12 Access of any type, including by permit, exclusive recreation lease, or open public access. 13 Includes North America staff only. Based on employee self-identification. 14 Combined result for timberland and agriculture in 2023 Gallup employee engagement survey.

Collaboration

As a steward of natural capital, we view collaboration as a cornerstone of our business. We work collaboratively with industry peers, governmental bodies, and nonprofit organizations to promote sustainable land management and investment.

Important disclosures

Source: Manulife Investment Management. All data is as of December 31, 2023. All logos are registered trademarks of the respective organizations/firms represented.

Transparency

Our commitment to transparency includes reporting on the outcomes of our sustainable investing efforts. We support the adoption of industrywide standards for disclosure, including the framework outlined by the Taskforce on Climate-related Financial Disclosures and the Taskforce on Nature-related Financial Disclosures.

Sustainability reports and disclosures

Statements and policies

Third party certification and verifications

Leading Harvest audit
Forest certification
GHG inventory verification
- Timberland
- Agriculture

Our impact: sustainable investing case studies

We believe active ownership practices are at the center of good stewardship, helping drive strong risk-adjusted investment return potential for our clients over time while might consequentially make a positive impact on the environment and society.

Explore our case studies

Related viewpoints

June 26, 2024

The role of natural capital in long-term savings

Colin Fitzgerald, Global Head of Institutional Manulife Investment Management

Our natural capital journey—as the world’s largest investment manager of natural capital assets,* Manulife Investment Management’s Global Head of Institutional Colin Fitzgerald shares how nearly 40 years of experience has refined our understanding of natural capital’s potential for addressing critical environmental challenges, and why these long duration assets are a natural fit for insurance companies and pension funds.

May 10, 2024

Regenerative agriculture: definition, implementation, and impact

Brent McGowan, Strategic Advisor and Board Member, Agriculture Manulife Investment Management

Weiyi Zhang, Ph.D., Associate Director, Agricultural Economics Manulife Investment Management

Hannah Barkan, Manager, Impact Investing and Natural Climate Solutions Manulife Investment Management

Feeding a growing population in a world of increasingly scarce natural resources will require sustainable solutions, which is where regenerative agriculture could play a critical role. For investors, building and sustainably managing a globally diversified portfolio of agricultural assets can generate competitive risk-adjusted returns while providing socioeconomic and environmental benefits to the rural communities in which the properties are located and the wider global markets the farmlands serve.

March 6, 2024

Expanding the efficient frontier with natural capital investments

David A. Fortin, Senior Director, Economic Research, Timberland and Agriculture Manulife Investment Management

Weiyi Zhang, Ph.D., Associate Director, Agricultural Economics Manulife Investment Management

The combination of investment characteristics associated with institutional investment in timberland and agriculture offers a compelling rationale for their inclusion in larger multi-asset portfolios, and ultimately allows for the expansion of the efficient frontier, as determined by traditional mean-variance portfolio optimization.

Learn more

Timberland

Fully integrated, global, sustainable timberland investment solutions across a variety of tree species, age classes, and geographies

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Agriculture

Customized, vertically integrated, sustainable agricultural investment solutions across a variety of commodity types and geographies

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Investing in natural capital: where good stewardship is good business

Natural capital sustainable investing report

What we produce

Timberland benefits

Agriculture benefits

In 2023, our agriculture assets produced:

Our stewardship approach focuses on three core thematic considerations—climate, nature, and people

Climate

Nearly 1.8 million metric tons of C02 removed annually

Nearly 2.5 million metric tons of C02 stored

Nearly 6.1 million metric tons of forest carbon credits sold

Nearly 1.4 billion trees planted

Nature

100%

100%

492,000

295

23%

100%

People

5.0 million

29%

19%

70th

Collaboration

Transparency

Sustainability reports and disclosures

Statements and policies

Third party certification and verifications

Our impact: sustainable investing case studies

Related viewpoints

The role of natural capital in long-term savings

Regenerative agriculture: definition, implementation, and impact

Expanding the efficient frontier with natural capital investments

View our full library of research

Timberland

Agriculture

Nearly 1.8 million metric tons of C0₂ removed annually

Nearly 2.5 million metric tons of C0₂ stored