Page 2
ESG
is
becoming
a
mainstream
component
of
reporting,
hereby
increasing
transparency on a variety of elements considered key metrics as to the sustainability of
a company or investments.
Historically, the industrialized and globalized societies have focused on the state of the
economy, while the language and culture around sustainability have had limited
attention. But in the past 40 years, especially the United Nations has had an increased
focus on sustainability, and we now have a sophisticated language and culture around
what sustainable development is. I personally think that this is an important progress.
A few major events have been critical in where we stand today. The first that comes to
my mind is the Bruntland report in 1987, stating that sustainable development is
development that meets the needs of the present without compromising the
ability of future generations to meet their own needs.
This was followed by the Earth Summit in 1992 which produced the Rio Declaration on
Environment and Development, the Statement of Forest Principles, and Agenda 21.
The Earth Summit also led to the establishment of the Convention on Biological
Diversity, and the United Nations Framework Convention on Climate Change
(UNFCCC). Furthermore, the three main pillars of sustainable development were
defined as economic growth, environmental protection, and social equality, where
no one element is more important than the other. If one element dominates the others,
or one element is neglected, the system becomes instable and collapses.
Thirty years later, the language has become more sophisticated, and at the
Sustainable Development Summit in 2015 we witnessed the introduction of the
Sustainable Development Goals (SDGs) as a collection of 17 interlinked global
goals designed to be a blueprint to achieve a better and more sustainable future
for all. This was a major step for a broader communication, and even down to
kindergartens, the message was heard.Message from IWC’s CEOSustainable development:A language and a culture

Page 3
At IWC, we have recently participated in the implementation of the Taxonomy Regulation that was published in the Official Journal of the European Union on June
22, 2020, and entered into force on July 12, 2020. It establishes the basis for the EU taxonomy by setting out overarching conditions that an economic activity
must meet in order to qualify as environmentally sustainable. The Taxonomy Regulation establishes six environmental objectives:
1.
Climate change mitigation
2.
Climate change adaptation
3.
Sustainable use and protection of water and marine resources
4.
Transition to a circular economy
5.
Pollution prevention and control
6.
Protection and restoration of biodiversity and ecosystems.
We report the storage of carbon in our clients’ standing forests, as well as the use of the wood taken out of the forests. The more wood is stored in buildings, the
better for the climate. We also report on farmland investments which are key to a sustainable transition.
For both asset classes, in our due diligence of new assets, we look into climate change, social impacts, and biodiversity. Tools are being developed and
baselines are established.
We are not there yet, and will never be, as ESG is an ever-evolving field, but we pride ourselves to be at the forefront of the developments regarding ESG
components relevant to our business and our clients. This is our belief and culture at IWC.
Otto Reventlow
Otto Reventlow
CEO of the IWC Group

Message from IWC’s CEO
Sustainability at our core
ESG framework five-year review
Looking ahead
2021 ESG highlights

Carbon and timber accounting

Sustainable forests and biodiversity conservation

Watersheds protection and restoration

ESG integration

Physical impacts.
Page 4

The IWC Group (IWC) is a leading natural resources investment expert with global expertise and experience in natural capital investments – timberland,
agriculture, and ecosystems restoration – providing diversification, inflation hedge, capital appreciation, and ESG-proof investment opportunities to institutional
investors. Established in 1991, IWC has today 27 employees, with diverse educational and national background, and oversees over three million hectares of
nature-based investments globally, valued over USD 5.7 billion as of YE 2021.
During our three decades of experience, we have seen time and time again the effects ESG matters can have on an investment performance and the positive
impact that responsible investment principles can have on the broader society. IWC thus carries out all investments in a manner that is socially responsible and
environmentally sound, based on a rigorous ESG framework, integrated throughout an investment lifecycle (due diligence, investment decision/advice, holding,
and exit).
ESG is indeed incorporated in relevant policies and procedures, distinguishing between different markets, types of investment, and level of control and IWC’s
core principles and values are inspired by accredited international principles, guidelines, and standards. Some of these are the International Finance
Corporation’s Performance Standards on Social and Environmental Sustainability, the Organization for Economic Development and Cooperation’s Guidelines for
Multinational Enterprises, the United Nations Global Compact’s 10 Principles, the United Nations Guiding Principles on Business and Human Rights, the
Recommendations of the Task Force on Climate-related Financial Disclosures, etc. In addition, we integrate climate-related risk and opportunities into our
investment analysis.
Page 5
USD 5.3 BILLION INVESTMENTS UNDER ADVICE
AND USD 450 MILLION UNDER MANAGEMENT
AS OF DECEMBER 31, 2021
IWC offices
Historical investment destinations
US
64%
Oceania
25%
Europe
7%
Latam
3%

Although sustainability has always been a core investment belief and approach, IWC’s ESG framework has developed substantially over the past five years in an
anticipation of, and response to, regulatory and market trends. Some examples are:
Inaugurating IWC’s ESG Policy and IWC’s Investees’ Monitoring and Engagement Procedure
Enhancing ESG Due Diligence processes (ESG questionnaires, checklists, and investment recommendations)
Introducing IWC’s Climate Policy and related governance documents and tools (due diligence, analysis, investment recommendations)
Launching our own annual IWC’s ESG Report and Investor Portfolios’ ESG Performance highlights (including carbon and GHG accounting)1
Developing our ESG risk categorization and monitoring tools.
IWC’s corporate governance and ESG framework is illustrated below.
1) Based on internationally acknowledged disclosure frameworks and certifications, i.e., PRI, UN SDGs, FSC, TCFD, IPCC.
Page 6
Risk rating is based on 
multiple categories fitting 
operating partners’ 
capabilities and assets’ 
sensitivities (including 
forward-looking climate-
related risks and 
opportunities); aggregating 
to composite low, medium, 
high-risk categorization 
(subject to adjustment per 
clients’ preferences)

Today, all our investment decisions, advisory services, and monitoring programs are based on inter-related investment and ESG processes, expanding
resources and analytics to highlight specific ESG risks and opportunities during the investment lifecycle. The following illustration is an anonymized excerpt of a
dedicated ESG section in an investment recommendation, and further down is a table presenting a bucket of climatic risks and indicators, we are selecting from
when doing our climate risk analysis and categorization (based on value-at-risk, financial sensitivities).
Page 7
Climatic variables – direction of change, magnitude
Physical risks – return periods, intensity, value-at-risk
Growing season length 
Wildfire risk
Maximum consecutive number of dry days - dry spell 
Tropical storms and cyclones
Maximum consecutive number of frost days - cold spell 
Convective storms
Maximum consecutive number of wet days - wet spell
Drought
Warm-spell duration index
Extreme heat
Frost days
Extreme precipitation
Total precipitation
Pests and diseases
Wet days 
Coastal flooding and sea-level rise
Simple daily duration index (mean precipitation)
Riverine and urban flooding
Heavy precipitation days
Landslides and earthquakes
Very heavy precipitation days
Volcanoes
Mean temperature
Forest attributes – direction of change, magnitude, financial impact
Mean maximum temperature
Growth rates
Maximum of maximum temperature
Mortality rates

In addition, individual investment teams and cross-team collaborations have resulted in a few projects, all aimed at improving IWC’s ESG integration and value
creation across services and products we offer to our clients. Some examples are:

Regional historic and forward-looking climate, forest disturbances, and growth review under different scenarios and timeframes (1986 to 2100)

5-year historical study of physical impacts to timberland based on IWC’s clients’ footprint

Establishing IPCC 2006/2019 Guidelines for National GHG Inventories as a main protocol for estimating carbon stock and annual sequestration

Corporate GHG Accounting (GHG Protocol) and forest pools scope expansion in our CO2 accounts

Forward-looking carbon modelling of discretionary timberland mandates

EU Taxonomy testing (PRI-led Practitioners Group) and selected advisory clients’ portfolio analysis (ongoing)

SFDR analysis and selected advisory clients’ portfolio integration (ongoing)

TNFD Forum membership and future contribution to the framework’s beta version (forthcoming)

DanSIF membership and knowledge sharing

PRI signatory and contributor to forestry-related EU regulatory consultations.
Below are illustrations of selected publications and analysis.
Page 8

ESG is only getting more significant, and we very much enjoy working with this challenging but rewarding topic. Our work on improving climate-related
integration and nature-related risks and opportunities is continuing with a particular focus on:

Finalizing the aggregation of a global climate database (historical and forward-looking) for all investment regions, IWC and our clients are currently exposed
to. To do so, pre-defined variables (see page 6) are being collected from the Copernicus Climate Data Store1, along with physical disturbances (subject to
availability and consistency), to be factored in financial analysis upon investing and monitoring.

Continuing building our climate scenario analysis capabilities and tools, especially via remote sensing utilization and transition scenarios.

Pilot-testing the GHG Protocol Land Sector and Removals Guidance, and following the GHG Protocol guidance finalization, integrating corporate with
relevant investment-level GHG accounting.

EU Taxonomy and SFDR integration – a cross-team project running in 2022 and beyond, minding the Taxonomy growing scope and time lags.

TNFD Beta Framework testing – in the second half of 2022 – to support further refinement of the company’s ESG and investment frameworks.

Remote sensing and technology utilization – what IWC has so far done on an ad-hoc basis, relying on regional data and open-source platforms for climate
analysis, will now be integrated in a more structured process and platform, for diligence and advisory services, subject to clients’ interest.

ESG report and metrics – while until now, we were cautious to not be introducing too many metrics or stick to one reporting framework, in an anticipation of
frameworks convergence and mandating, we will going forward have the chance to identify and select the most relevant (or imperative) framework in terms
of sector-suitability, metrics, and methods of disclosure (i.e., TCFD, TNFD, EU SFDR, ISSB).

New affiliations endorsement – acknowledging the nature-based investment platform we are active on, and its importance to the climate and biodiversity
crises, IWC is following closely the exponentially growing net-zero or nature-positive groups and assessing relevance on joining.
1) Sentinel satellites (1 and 2 for land monitoring) with global coverage and high-resolution historical data and future scenarios (CMIP5 and CIMIP6).
Page 9

16,400 hectares of watersheds protected
3,800 km of streams protected
123 km of streams restored
4,900 hectares of wetlands restored 
5,600 tons of excessive nutrients & sediments captured in watersheds 
8.1 million m3 of annual timber growth
7.9 million m3 of certified timber production in 2021
48% as construction materials = 133,440 houses
51% as paper-related products 
1% for other end-uses 
186 million tCO2e stored in forests
-84,000 tCO2e net sequestration in 2021, with average annual sequestration of 4.5 million tCO2e
616,000 tCO2e forestry emissions in 2021
1.6 MtCO2e stored in HWP 
1,142,000 hectares of sustainably managed forest
177,000 hectares of protected areas
300 species protected
30,000,000 newly planted trees in 2021
21 main tree species2021 ESG highlights 
Page 10
3,300 ha of productive farmland
18,900 people’s calories intake p.a.
26% organically farmed land 
7% is of low-till practice.

Carbon stock (MtCO2e)
Annual sequestration (MtCO2e)
Annual timber harvest (mio m3)
Commentaries
Page 11
Annual timber growth (mio m3)
0
50
100
150
200
2017
2018
2019
2020
2021
North America
Latin America
Emerging
Europe
Oceania
AVG
0
2
4
6
8
10
12
14
2017
2018
2019
2020
2021
North America
Latin America
Emerging
Europe
Oceania
AVG
Carbon stock in the forests, which
includes
above
and
below
ground
biomass, slightly increased in 2021.
Carbon
stock
across
IWC
clients’
forests has proven stable over the
years,
despite
acquisitions
and
divestments.
Annual
sequestration
is
netted
of
emissions from forest operations and
carbon credit sales, while it includes
carbon
stored
in
harvested
wood
products, which represents a long-term
carbon storage.
Refinements
in
carbon
accounting
methodologies from some of IWC’s
operating partners resulted in slight
adjustments from 2020 estimates.
Timber growth and timber harvest only
consider merchantable timber – young
trees are not included in the account
(different from carbon metrics). Hence,
total forest growth is underestimated.
The slightly negative net sequestration
in 2021 is due to increased harvesting
in North and Latin America compared
to previous years. This is part of the
normal plantation cycle. IWC clients’
total portfolio has an average of
4.5
million tCO2e annual net sequestration
over the past five years.
0
2
4
6
8
10
12
14
2017
2018
2019
2020
2021
-2
-1
0
1
2
3
4
5
6
7
8
2017
2018
2019
2020
2021
Where direct carbon metrics 
have not been provided by 
operating partners, IWC 
utilized the methodology of 
the IPCC Guidelines for 
National GHG Inventories 
and regional data in 
estimating these.

0
20
40
60
80
100
120
140
160
180
200
2017
2018
2019
2020
2021
North America
Latin America
Emerging
Europe
Oceania
AVGSustainable forests and biodiversity conservation 
Forest certification status (% of NAV)
Protected forest areas (thousand ha) 
Million trees planted in 2021
Protected species
Commentaries
Page 12
19
7
4
North America
Latin America
Oceania
Emerging
Europe
At the end of 2021, almost the full
(99%) IWC portfolio was certified, up
from last year, mainly due to changes
in
the
portfolio
composition.
In
particular, the acquisition of already
certified assets had a significant effect.
Non-certified
areas
in
emerging
countries and Latin America are in
divestment phase, expected to be out
of the portfolio in the next 1-2 years.
Certification schemes are a main boost
for
protection
of
habitats
within
commercial forests. Indeed, certified
assets include portions of protected
and non-harvestable land.
Number of protected areas in the IWC
portfolio keeps increasing due to more
precise data and extended protection
of
habitats
in
relation
to
wildlife
conservation
and
watersheds
preservation.
Strengthening environmental regulation
also plays a role in the increasing of
the total protected areas.
The drop in protected species is a
consequence
of
divestments,
especially from one large investment in
Europe.
0
50
100
150
200
250
300
350
400
450
500
2017
2018
2019
2020
2021
0%
50%
100%
Emerging
Europe
Latin America
North America
Oceania
TOTAL
Certified
Multiple certification
In the process of being certified
Not certified

Protected watersheds in forests (ha)
Restored and protected streams (km)
Protected streams in forests (km)
Nutrients & sediments captured (Kt)
Commentaries
Restored and protected wetlands (ha)
Page 13
Forested
watersheds
include
lakes,
ponds, and streams (the later being
shown
separately
in
km)
and
are
providing
water
supplies
of
highest
quality (drinking water, aquatic habitat
for
native
species,
and
recreation),
which
is
the
main
reason
for
the
establishment of forest reserves.
Streams and wetlands restored and
protected are so through investments in
mitigation banking and/or nature-based
investment solutions.
0
1,000
2,000
3,000
4,000
5,000
6,000
2017
2018
2019
2020
2021
North America
AVG
0
20
40
60
80
100
120
140
2017
2018
2019
2020
2021
North America
AVG
0
1,000
2,000
3,000
4,000
5,000
6,000
2017
2018
2019
2020
2021
North America
AVG
0
5,000
10,000
15,000
20,000
25,000
30,000
2017
2018
2019
2020
2021
North America
Latin America
Emerging
Europe
Oceania
AVG
0
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
4,500
2017
2018
2019
2020
2021

ESG integration (% partners)
ESG integration (% NAV)
Climate change (% partners)
Climate change (% NAV)
Commentaries
ESG integration is assessed based on
IWC partners’ internal capabilities and
resources.
The
assessment
is
a
combination of both qualitative and
quantitative analysis.
The
majority
of
the
partners
have
“Medium”
to
“Outstanding”
ESG
integration. The “To improve” rating is
mostly related to the lack of ESG
dedicated staff and procedures.
ESG
integration
considers
climate
change, but also all other items in
relation
to environmental
issues as
biodiversity,
social
dynamics,
job
security, and governance structure of
the operating partners.
Most of the assets in IWC clients’
portfolio
are
managed
considering
climate change as an integral part of
the business strategy and activity. We
believe this to be essential in providing
a hedge against climate risks and in
seizing new revenue opportunities, like
carbon credits sales.
Page 14
0%
25%
50%
75%
100%
Climate change integrated in strategy
Adressing climate change impacts on forestry
Research & cooperatives
0%
25%
50%
75%
100%
Climate change integrated in strategy
Adressing climate change impacts on forestry
Research & cooperatives
25%
56%
19%
Outstanding
Medium
To improve
19%
79%
2%
Outstanding
Medium
To improve

0.33%
0.0%
0.2%
0.4%
0.6%
0.8%
1.0%
1.2%
1.4%
2016
2017
2018
2019
2020
2021
Drought
Fire
Ice, snow, rainfall
Insects, disease
Other
Wind, storms
AVG
1.35%
0.0%
0.5%
1.0%
1.5%
2.0%
2.5%
3.0%
2016
2017
2018
2019
2020
2021Physical impacts
2021 net value loss per peril
Historical net value net loss
2021 net value loss per region
Historical area impacted
Commentaries
Page 15
91%
6%
2%
1%
Drought
Fire
Wind, storms
Insect, disease
96%
4%0%
Latin America
Oceania
North America
The main physical impacts in 2021
were due to drought in Brazil, where
water scarcity reduced the tree growth.
Looking back at the last six years, the
2021 physical disturbances impacted a
relatively higher area, increasing the
average area affected to 1.35% p.a.
However, the net value loss related to
physical
risks
was
low
in
2021,
decreasing the historical average value
loss by 5bps, to 0.33% of fair market
value p.a.
Active
forest
management,
portfolio
diversification, insurance, and climate
change integration remain the main
mitigation tools to physical impacts.
Today, 60% of IWC clients’ portfolio
value
has
some
sort
of
insurance
policy.
However,
insurance
is
not
always financially viable.

This report has been prepared by the IWC Group (“IWC”) with the sole purpose
to provide general information and should not be considered as an offer or
solicitation in any state or other jurisdiction to any person or entity to buy or sell
any security or other financial instrument. Nothing in this report constitutes
investment, legal, accounting or tax advice.
Whilst IWC has taken reasonable care to ensure that all information presented
is, to the best of its knowledge and understanding, true, correct and accurate,
and based on information from sources believed to be reliable and of good
faith, IWC does not guarantee the accuracy, timeliness, completeness, or
correctness of the information. Views and opinions are subject to change
without notice on the basis of additional or new research, new facts, or
developments. IWC accepts no liability for any direct or consequential loss
arising from any use of this report or the information contained herein. The
information in this report should not replace individual professional advice.
Past performance is not indicative of future results.
This report may not be distributed, copied, reproduced, transmitted, disclosed
or otherwise distributed or published without the prior written consent of IWC.
For regulatory reasons, IWC carries out its main activities through the
International Woodland Company A/S and IWC Investment Partners A/S (both
wholly owned subsidiaries of the parent company, International Woodland
Company Holding A/S). IWC Investment Partners A/S, a Danish limited liability
company established in 2012, is the only IWC company under the supervision
of and authorized by the Danish Financial Supervisory Authority as an
alternative investment fund manager (“AIFM”) and the only IWC company
which is a Registered Investment Advisor with the SEC in the United States.
Page 16
To learn more, visit us at www.iwc.dk
or contact us at iwc@iwc.dk.