Ingka Group has acquired 5500 hectares of land in New Zealand’s South Island as part of its long-term commitment to responsible forest management.
The investment in Wisp Hill will see 330 hectares of land planted with radiata pine this year, with the long-term plan of planting 3000 hectares – more than 3 million seedlings – within the next five years. At the same time, the remaining 2200 hectares are to naturally revert into native bush, helping to regenerate the local ecosystem.
“Responsible forest management creates jobs and adds value in the local communities by supporting the local economy,” said Krister Mattsson, MD of Ingka Investments at Ingka Group. “Having a good impact in the neighbouring communities is an important part of our approach to responsible forest management.
“We will work closely with the former owners of the land and with local forestry specialists to prepare the land for a new forest.”
The land will be used for a 30-plus year afforestation scheme to plant new forests, which will contribute to removing CO2 from the atmosphere, storing carbon and developing an ecosystem to encourage and sustain biodiversity.
“Responsible forest management, reforestation and afforestation all form part of the solution for climate change, and we are committed to enhancing carbon removal through our forests,” said Mattsson.
“Our commitment to responsible forest management means taking proper care of the environment, respecting the needs of the local communities and setting high standards for the business partners we work with.”
Ingka Group currently owns and responsibly manages around 248,000 hectares of forestland in the US and Europe. Between September 2019 and August last year, Ingka Group planted close to 7 million seedlings across the level of the entire portfolio, around the world.
Last year, Ingka Investments started to increase focus on afforestation – the creation of new forestland by planting trees in areas where there were none before – in Latvia and Estonia. This new afforestation investment in New Zealand will see its first planned harvest to take place at the end of the first rotation, 30 years after planting.
