A comprehensive Finnish forest dataset has been used to examine how active increase of biodiversity affects forest development and financial returns over a 50-year timespan. Calculations show that a significant increase in biodiversity doesn’t reduce returns from forestry. The study may pave the way for incorporating structural features crucial for biodiversity into forest management practices in Finland and globally.
A study conducted by the Natural Resources Institute Finland (Luke) provides new insights into how sustainability and profitability can be combined in forestry. For example, the amount of deadwood can nearly be doubled within 50 years in the commercial forests of Finsilva plc, one of Finland’s largest forest owners.
“Finsilva has entered a new phase where we actively enhance biodiversity and measure the outcomes. This approach is a key part of our natural capital strategy, and the study conducted by Luke confirms that we are on the right track,” says Olli Haltia, Chairman of the Board at Finsilva.
“Never before has real forest data proven so clearly that a sustainable and profitable forestry model works. Neither harvested volumes nor financial returns take a dive, even when biodiversity-enhancing measures are implemented in forest management,” comments Juha Hakkarainen, CEO of Finsilva.
Finsilva recognizes that forestry practices promoting biodiversity could prove to be even more profitable than estimated as nature capital markets evolve. Nature capital markets refer to a situation where forest owners receive additional income from the market, for example, by increasing biodiversity and carbon sequestration.
“We are already generating some income from nature capital markets. As the markets develop, the commercial potential will be significantly greater, both for us and for ordinary private forest owners who actively promote biodiversity in their forests,” Hakkarainen explains.
Forests in even better condition for future generations
According to calculations by the Natural Resources Institute Finland, all structural features important for forest biodiversity will increase significantly in Finsilva’s forests in the coming decades.
“The measures are familiar from forest certification standards and best practices for nature management. Their positive effects have already been observed in Finland. In Finsilva’s forest management model, nature conservation actions are implemented even more intensively, which enhances the positive impact on ecological values. This way, we can leave the forests to future generations in a demonstrably better condition than we received them ourselves,” says Markus Nissinen, Finsilva’s Forest and Environmental Manager.
According to development forecasts by the Natural Resources Institute Finland, biodiversity in Finsilva’s forests will increase over the next 50 years as follows:
The number of retention trees nearly sevenfolds
The number of retention trees will increase from just under 300,000 to nearly two million. Retention trees are permanently left standing in the forest after logging, and as they die, they generate more decayed wood. In Finsilva’s operations, retention trees are left in groups, from which no trees are removed.
The amount of decayed wood nearly doubles
The volume of dead wood increases from 5.1 cubic metres per hectare to 9.6 cubic metres per hectare. Thousands of forest species, such as many insects, polypores, and cavity-nesting birds, depend on decayed wood. During the review period, the living retention trees had not yet contributed to the increase in decayed wood.
The volume of deciduous trees increases
The volume of deciduous trees grows from 1.7 million cubic meters to 2.54 million cubic meters. Deciduous trees enhance the structural diversity of forests, improve the vitality of numerous species groups, and increase the resilience of forests against disturbances in a changing climate.
Carbon storage increases
Additionally, the calculations take into account the impact on the carbon storage of forest biomass on forest land. Under the current operational model, Finsilva’s forest carbon sink remains stable, and the carbon storage stays at the same level over the 50-year period, amounting to approximately 20 TgCO₂-eq.
The study was conducted by the Natural Resources Institute Finland at the request of the forest and natural capital company Finsilva. The research was based on forest inventory data from Finsilva’s commercial forests (approx. 130,000 ha). The study examined the effects of Finsilva’s forest management model over a 50-year time horizon.
For more information and interview requests:
Chairman of the Board, Olli Haltia, Finsilva Oyj
olli.haltia@dasos.fi
+358 40 901 0338
CEO, Juha Hakkarainen, Finsilva Oyj
juha.hakkarainen@finsilva.fi
+358 40 087 0867
Forest and Environment Manager, Markus Nissinen, Finsilva Oyj
markus.nissinen@finsilva.fi
+358 40 573 1131
The Finsilva website contains images of Juha Hakkarainen and Markus Nissinen. The images are freely available for use in news coverage related to the topic of this press release: https://www.finsilva.fi/en/about-us/contact-us/#for-media
Finsilva Oyj is a forest and natural capital company and one of Europe’s largest private and independent forest owners. The company owns roughly 137,000 hectares of well-managed Finnish forests. We combine environmental values with market economy principles by utilizing natural capital in a sustainable and profitable way. The core of our business is forestry, renewable energy, and real estate development. We develop new forms of forest and land use based on the evolving needs of people and society. In 2023, the company’s revenue and other operating income amounted to €43.5 million. Finsilva is owned by Dasos forest funds and Metsärahasto II Ky (Ilmarinen). www.finsilva.fi
