An environmental investment is an investment in real property or other natural resources that is intended to have potential environmental and ecological value due to hydrology, function, biodiversity, habitats, topography, location, historical use, restoration potential, and/or other characteristics that can be monetized through established and regulated environmental markets.
Domain Timber, through its environmental investment funds, acquires, develops, operates, and manages a variety of environmental assets for public and corporate pension plans, foundations, endowments, and high-net-worth individuals. Domain Timber currently has approximately $145 million dedicated to environmental investments, which primarily are comprised of wetland and stream mitigation banks, habitat conservation banks, fishery banks, environmental enforcement solutions, and direct environmental restoration projects. Domain Timber has also identified other emerging secondary market investment opportunities such as water quality trading and water rights, transitional timberland and agricultural properties, conservation property investments, and transferable development rights.
Domain Timber believes that the environmental investment markets provide opportunities for attractive risk-adjusted returns, primarily due to the continued pressure facing ecosystems and biodiversity, and the existing established regulatory regime that has solidified an environmental credit market through the implementation of various regulations and related guidelines.