The total forest land area managed sustainably by companies in the fund is calculated by taking into account the area of sustainably managed forests (certified) in hectares based on the latest publicly reported figures (e.g. 2020). The amount of carbon sequestered by sustainably managed forests owned and managed by companies in the fund is calculated by multiplying the sustainably managed forest area by an average carbon sequestration rate in tonnes of carbon per hectare per year. Different types of forest have different levels of carbon sequestration rates. The amount of carbon sequestered through the sustainably managed forest is calculated based on the average of boreal forest, which is a conservative estimate, as the sequestration rate is higher in other types of forests, for example in temperate regions and in the tropic. Boreal forest has a carbon sequestration rate of 0.8 to 2.4 tonnes of carbon per hectare per annum, with an average of 1.6 tCO2 per hectare per annum.

The sustainably managed forest data used in the calculation are obtained from Bloomberg or from fund companies’ annual or sustainability reporting. For the Pictet Timber fund, the total area of sustainably managed forest land, and the amount of carbon sequestered could be calculated for approximately 42% of companies in the fund, based on the latest data available.

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