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illuminem summarises for you the essential news of the day. Read the full piece on ESG Today or enjoy below:
🗞️ Driving the news: Microsoft has signed a landmark agreement with forest investment firm EFM to secure up to 3 million tonnes of nature-based carbon removal credits through a combination of direct offtake and fund investment
• The deal supports Microsoft’s goal to become carbon negative by 2030 and marks its first U.S.-based forestry investment via its Climate Innovation Fund
🔭 The context: Nature-based carbon removal, especially through improved forest management, is increasingly seen as a viable, scalable complement to engineered solutions
• EFM (Ecotrust Forest Management), established in 2004, invests in climate-smart forest assets across the Americas, generating returns via carbon markets, conservation easements, and timber revenues
• The collaboration with Microsoft builds on EFM’s recent agreement with Meta and expands the firm’s forest carbon strategy in the U.S.
🌍 Why it matters for the planet: This agreement advances the integration of high-quality, nature-based removals into corporate climate strategies, reinforcing forest ecosystems as credible carbon sinks
• By backing improved forest management in the Olympic Peninsula and Western U.S., Microsoft is enhancing biodiversity, rural economies, and watershed health alongside climate goals
• The deal also adds credibility to nature-based offsets in a market often challenged by questions around permanence and verifiability
⏭️ What's next: EFM will deliver 700,000 credits through 2035 from a Washington property transitioning to climate-smart forestry
• The additional 2.3 million credits will be accessible through Microsoft’s investment in EFM Fund IV, which aims to mobilize $300 million for further acquisitions
• The fund will focus on forestlands in the Western U.S., and could influence broader corporate participation in natural climate solutions
💬 One quote: “Microsoft’s support marks a pivotal step in accelerating support for high-quality improved forest management projects,” — Bettina von Hagen, CEO, EFM
📈 One stat: Through this agreement, Microsoft will secure up to 3 million tonnes of nature-based carbon removal credits from EFM by 2035
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