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Trees in the greenhouse: why climate change is transforming the forest products business

Climate change and policies to address it will fundamentally alter the market dynamics of the forest products industry. The management of forests and the manufacturing, use, disposal, and recycling of forest products can affect the balance of greenhouse gases in the atmosphere. Because trees are a renewable resource with an ability to capture and store carbon, forest products companies that invest in sustainable production practices may be well positioned to provide climate change solutions through new and existing business models. This report provides a preliminary assessment of the industry's exposure to climate change risks and opportunities. It is intended to stimulate further analysis by companies and investors to determine their own exposure to climate change and develop appropriate strategies to maximize value and minimize risk.