greening the future with sustainable forestry
At qb., we know that creating effective ESG policies, protocols and oversight requires hard work and behavioral change, which is why we're shining a spotlight on the individuals who are leading the charge. In our new series: “ESG Leaders + Governance”, we highlight the people behind the transformational actions and programs that are shaping the future of business. We’ll talk to ESG leaders from different industries and backgrounds; we'll delve into the challenges they've faced, the strategies they've employed, and the lessons they've learned along the way.
As Manager of Forest Sustainability at RMS, a forest investment manager that stewards 2.4 million acres across the U.S. southeast and Brazil, Kirstie White (pictured holding a gopher tortoise) oversees U.S. forest certification programs, including SFI© and FSC™, ESG reporting and supports conservation partnerships and public policy engagement – so, the whole acronym soup is in her domain. She sat down with qb. to share valuable insights on sustainable forestry, biodiversity, carbon markets and more.
published 7.11.24
Here’s what we learned:
Collaboration is a non-negotiable for conservation
RMS employees have many things in common, one of which is a love of nature and forests. However, some of the places and critters we love are at risk. While there are countless nonprofits, research organizations, nature pledges and fancy biodiversity conferences, we’re all still failing largely because we’re not working together. Grace Lee Boggs puts it well, “we’re not suffering from a lack of critical mass; we’re suffering from a lack of critical relationships.” Restoring critical relationships of all kinds is a core pillar of our biodiversity strategy. We actively support nature and people through trust-based partnerships and initiatives with nonprofits, government entities and many others.
One example is our work with the Wildlife Conservation Initiative, a blue-sky idea from RMS SVP, Forest Sustainability Jimmy Bullock, to work proactively and collaboratively to protect common, at-risk and threatened and endangered species on private forestlands. What started as individual, regional collaboration among National Alliance of Forest Owner members and the National Council for Air and Stream Improvement has grown to programmatic agreements with the U.S. Fish and Wildlife Service and the Association of Fish and Wildlife Agencies (aka state and federal agencies who manage species and ecosystems for the benefit of U.S. citizens) and other collaborators. Together, they co-identify priority species needing private working forests, gather field data on the impact of active forest management on species and wildlife communities and collaborate to use this information to sustain and enhance conservation benefits. This new way of working is a huge win for species and humans!
Additionally, the relationships we build enable us to do really neat and innovative things. For example, on behalf of RMS, Jimmy Bullock helped create a new conservation tool with the U.S. Fish and Wildlife Service that will allow us to reintroduce the federally endangered reticulated flatwoods salamander (Ambystoma bishopi) into a historic salamander pond on RMS-managed land. That may not sound like much, but that type of agreement has never been done before on private lands.
We also collaborate with organizations like The Conservation Fund on conservation land sales, acquisitions and securing conservation easements for working forests. Currently, a large focus of our conservation easement program is centered on the restoration of the iconic longleaf pine. Our partnerships also help us better integrate biodiversity considerations and the latest research into our everyday management decisions and contribute significantly to RMS's overarching sustainability strategy. We are grateful to be in a community focused on co-creating solutions!
Tech has a role to play in modern forest management
Foresters’ jobs are multifaceted – land managers, biologists, statisticians, engineers, business people and sometimes even therapists for their loggers. Technology plays a pivotal role in RMS's sustainability efforts, driving advancements in various facets of their operations. First, we try to create a culture and governance structure where people feel equipped and feel trusted to make the best decisions for our clients and the land. Second, we build our systems and data management procedures to best support them. Considering we manage tens of thousands of forest stands, this isn’t an easy task. Utilizing tools like Power BI and ArcGIS, we make real-time data accessible to our teams to make daily decisions, adjusting plans promptly on their iPads in the field based on current conditions such as weather changes or mill shutdowns. The nimbleness of our systems enables them to create value by quickly linking information to action.
On my end, as a certification manager, it also gives me the tools and data to demonstrate to third-party auditors that what we are doing is sustainable. Lastly, as the growth in non-traditional forest objectives rise, we are working to expand our carbon modeling and biodiversity expertise to align with the variety of ESG objectives and expectations of our expanding investor base. Whether that be through improved optimization software to model carbon alongside timber or deployment of bioacoustics monitors to monitor bat populations, these technological advancements are instrumental in improving RMS's sustainability practices, enabling us to achieve both operational excellence and environmental stewardship goals.
Biodiversity in timberland is our future
Working forests demonstrate that economic and conservation goals do not have to be mutually exclusive. Our management ensures a diverse range of habitats in space and time. From young, recently planted forests providing loads of insects to foraging birds to mature forests supporting bats and riparian zones providing clean water to a wealth of aquatic species and communities, working forests are a shifting mosaic of diverse habitats supporting different species at various stages of their life cycles. Maintaining this variety of habitats sustains the overall health and resilience of the ecosystem, allowing it to support wildlife and remain biologically and financially productive in the long term. Furthermore, all of the forests we manage have been planted, grown and harvested for decades and are under a third-party forest certification system, which covers material, environmental and social elements such as sustained yield, human rights and conservation of biological diversity.
Forestry's future relies on balancing environmental health with business needs through sustainable management practices. Adhering to forest certification standards is integral to our management process and ensures our practices are responsible and sustainable. The forest industry is sometimes viewed as a bad actor based on a lack of public understanding of forest management and some historical management practices that had little conservation value. Economic and business model transitions coupled with the growth of robust third-party audited forest certification standards and Forestry Best Management Practices for water quality have enabled today’s forest management to become a solution for conservation. At RMS, we are at the forefront of leading the demonstration of the importance of private working forests, making them more relevant in broader conversations about sustainable development. We have many more opportunities today to think creatively about how we can maximize environmental, social and economic objectives for the owners of the forests we steward. This is exciting for conservation efforts and for me personally.
Caring for trees requires thinking about the bees
The future of carbon and biodiversity markets is poised to significantly impact our industry and business at RMS. As these markets grow, we anticipate a greater need for analysts to handle complex modeling and data analysis. ESG principles are already deeply integrated into our business, but these markets are pushing us to delve even deeper into other facets of sustainable forest management. We’re seeing an influx of funds with dual carbon-timber mandates and ecosystem restoration, indicating a shift towards non-traditional forest investment objectives. This trend presents a substantial business opportunity, requiring our teams, including acquisitions, to adapt and consider different objectives and funding sources. These objectives could range from delaying timber harvest to increasing carbon sequestration to the reintroduction of species, all depending on specific standards and goals. This evolving landscape is exciting as it diversifies our investment strategies and opens new avenues to put capital to work in impactful ways.
Materiality matters
Materiality is crucial as it helps us prioritize and focus on the most impactful issues for our business, especially given our small and lean organization at the intersection of forestry, natural resources management and finance. Our last materiality assessment with qb. identified 20 material issues, with seven being of the highest priority. Materiality helps us avoid spreading our efforts too thin by concentrating on what truly matters. Each year, we select about three material topics to incorporate into our company goals, from which our team goals are derived. This process allows us to strategize effectively and stay accountable through our annual reporting. By focusing on high-materiality issues, we avoid pursuing areas with minimal value for our business and stakeholders. This strategic and cyclical approach ensures our actions and reporting are aligned and continuously informs our future plans. By combining external expertise with our strategic resource management, RMS is able to maneuver through dynamic and changing landscapes.
Over the years, RMS has evolved by focusing on our material topics, allowing us to delve into the transformative aspects of ESG both within and outside the organization. Internally, this has involved moving beyond traditional forestry practices to consider a wider range of forest values, such as cultural, spiritual, climate mitigation and biodiversity. We've recognized the forest's broader value beyond just timber, and environmental markets have recently begun to support the realization of this value. This has encouraged us to explore opportunities in carbon and biodiversity markets and improve our reporting to communicate effectively with investors and the broader market. Frameworks like TCFD and TNFD have been instrumental in shaping our climate strategy, emphasizing governance and identifying gaps. They help us structure and explain our climate and biodiversity efforts more coherently to stakeholders who may not be familiar with our industry. This structured approach ensures that our strategies are clear and comprehensive, aligning with how RMS has traditionally operated while highlighting areas for improvement.
Sustainably managed forests are essential for us all
I’m not the first to say that forests provide solutions for so many of our problems, including climate change, biodiversity loss and inequality. The most significant opportunities in the forest industry lie in leveraging forests themselves. We have an incredible, renewable resource we should not be shy about using, especially if we’re serious about reducing our usage of fossil fuels. For example, forests can provide low-carbon products such as wood for beautiful, affordable housing, fiber for biotextiles and various resins and compounds to create bioplastics and medicines. Forests are also at the heart of many parts of rural America, which so desperately needs more investment and cannot be left behind in our economic and energy transition. These are all opportunities; however, realizing these opportunities requires a conducive policy environment, market development and coordinated efforts to incentivize investment in forests and forest products. This holistic approach could transform the industry and contribute significantly to a sustainable future.
Over the next decade, I hope sustainable forestry will gain societal recognition, similar to the farm-to-table movement in agriculture and food. People are becoming more conscientious about where their food comes from and take pride when it's sourced responsibly, and I envision a similar awareness for forest products. We use forest products daily, and especially if they are third-party certified, there's a compelling story to tell. I hope society will appreciate the benefits of sustainably managed forests in North America and abroad, which have come a long way in ensuring healthy, productive forests for future generations. That’s quite literally our vision at RMS.
Thanks for reading. ✨ If you’re interested in learning more about working with us, drop us a line.
