The Impact Advantage of Investing in Naturally Regenerating Forests with Jim Hourdequin

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The Lyme Timber Company

Today I'm joined by Jim Hourdequin, CEO and Managing Director of The Lyme Timber Company, one of the pioneers of institutional timberland investing and impact forestry. As the company celebrates its 50th anniversary, Jim reflects on the investment philosophy that has guided Lyme since 1976 and explains why naturally regenerating forests create unique opportunities to deliver both attractive investment returns and meaningful conservation outcomes. We discuss how conservation easements have become a cornerstone of Lyme's strategy, why the firm invests beyond the forest gate into logging businesses and sawmills, and the opportunities and trade-offs presented by forest carbon markets. Finally, Jim shares why evergreen investment structures, patient capital, and investing in people are essential ingredients for building resilient forests—and resilient forest businesses.

"We have to make logging safer. We can't expect people to work eighty-hour weeks. If we invest in people, pay attractive wages and adopt better technology, we'll recruit outstanding professionals and build stronger forestry businesses over time."

00:00 – Introduction and Lyme Timber's 50-year anniversary

02:30 – Jim Hourdequin's background and the evolution of Lyme Timber

06:30 – Building a long-term investment philosophy in timberland

11:30 – Pioneering impact investing through conservation

17:00 – Conservation easements: how they work and why they matter

29:55 – Carbon markets: opportunities, limitations, and trade-offs

36:40 – Investing beyond forests: strengthening the timber supply chain

40:55 – Mechanized logging, safety, and innovation on steep terrain