Salm-Salm's investment strategy focuses on the precise selection of forests. High-quality forests in the strongest local timber markets are selected in an in-depth analysis. Salm-Salm only buys forests in countries that have the highest standards of property protection. The local biological growing conditions, climate and forestry infrastructure also play a decisive role in the investment approach. In order to reduce risks, the portfolio is diversified into different climatic regions, sales markets, forest types, tree species and age classes. Biotic and abiotic risks are further reduced as part of operational management.

The main return drivers of a forest investment are biological growth and timber prices. For this reason, Salm-Salm relies on an “intensive management” strategy to optimize growth. Only forests in very strong timber markets are purchased. Opportunities to develop alternative sources of income are actively pursued in order to diversify revenues in forestry operations. Where possible and appropriate, value-add measures such as solar or wind projects and the generation of CO2 certificates are implemented.

Salm-Salm represents the owners through its presence in the area and direct contact with service providers. This is based on decades of experience in the agricultural and forestry sector with its own forestry and agricultural operations.

The concept of sustainability is over 300 years old and was originally defined in forestry: When managing forests, never use more than will naturally grow back (source: Hans Carl von Carlowitz). In order to provide proof of sustainable management, all forests managed by the fund are certified with an independent sustainability seal.

Forests are one of the largest carbon sinks on earth. Compared to old trees, however, young trees absorb significantly more carbon. This is due to higher growth rates. Regular harvesting of the stands, including the use of the wood as timber, as well as the subsequent reforestation of the areas, therefore ensures a high level of carbon sequestration. For this reason, the forests of the Salm Global Timber Fund are not set aside, but actively managed.

The top priority is that the forests are clean and healthy. Salm-Salm follows the precautionary principle, takes initiatives to promote greater environmental responsibility and encourages the development and dissemination of environmentally friendly technologies. Salm-Salm ensures environmental protection at all stages of management. This includes a proactive approach to avoid or minimize the consequences of accidents that may have a negative impact on the environment.

Child labor may not be used in any phase of management. Remuneration and social benefits of service providers must comply with the basic principles regarding minimum wages, overtime and legally prescribed social benefits. Forced or compulsory labor is not permitted. Salm-Salm, as well as service providers and affiliated companies, guarantee occupational health and safety in the workplace and support continuous development to improve the working environment.