Rethinking Wildfire Risk in Forest Investment 

Shifting mindset on Wildfire Risk to an Investment Opportunity for Financial, Climate and Social Outcomes 

As I prepare to head back to Canada this summer, wildfire is on my mind. Several times over the past 5 or so years, my family has changed our travel plans at the last minute, so not to spend our few precious weeks of a Canadian visit trapped inside due to poor air quality and the uncertainty around evacuation chaos – and we’re the lucky ones, that even get a choice. We normally spend most of our visit in the Thompson-Okanagan region, becoming locally known by the name – the Smoke-anagan. 

Reconciling my thoughts about wildfire has me wearing all the hats. I’m a mom – wanting my kids to be safe, healthy and have happy memories of Canada. As a British Columbian, I empathise with the communities affected in so many ways. As a forester, I’m frustrated by understanding the mechanics of fire in maintaining forest ecosystems and how we have interfered with this natural process making it worse for all. As a forest investment professional, I worry for the sector – 1. That fire is giving forest investment a bad name and averting capital mobilization and that 2. Forest asset owners are not sufficiently well versed on the mechanics of fire and are not advocating for assessing and managing fire risk appropriately. Further, investing into forests can be one of the best ways to improve the wildfire situation – where investing into forests with appropriate management approaches can reduce the risk and impacts of wildfire. 

So, spoiler alert – I have an upcoming podcast with Tony Pesklevits of the BC Wildfire Service. Tony is the Manager of Wildfire Prevention, Cultural and Prescribed Fire at the BC Wildfire Service. In our conversation he offered a thoughtful, grounded perspective on fire’s role in forest ecosystems—and what that means for forest investment. 

I wanted to share a deeper reflection here before that podcast airs, because I think it’s essential that we talk about wildfire not only as a risk, but as a reality that can be planned for and, in some cases, embraced. Fire is not a reason to retreat from forest investment. It’s a reason to get smarter about how and where we invest—and who we work with on the ground. 

Fire is a fact in many Forest Ecosystems 

“Fire is a fact,” Tony said. “Facts can feel scary, but they’re just facts.” 

Across many forest regions—especially in fire-adapted landscapes like BC—fire has long been part of the ecological cycle. In some cases, it’s needed to maintain ecosystem health. It’s only in recent decades – where fire suppression has been the dominant management approach, where we’ve had a perfect storm of the buildup of fuels, shifting climate patterns, and the expansion of communities into fire-prone zones, that wildfire has become so damaging. 

What this means for forest investment is simple: Fire is not going away. But that doesn’t mean forests are un-investable. In fact, the investment proposition holds – managed, working forests that are prone to wildfire can provide a multitude of renewable forest products – from structural lumber to even fuel reducing wildfire treatments that create opportunities for products such as poles, chips for fiber board and bioenergy. It means fire must be integrated into planning, risk management, and long-term stewardship. In fact, if you are an investor looking for natural climate solutions, I would consider that investing into fire-prone forest landscapes where wildfire risk is appropriately managed for, can be a great option – both from the financial perspective won through the fundamentals of timberland investing, but also as a real needle mover for climate and social benefits in the community-forest interface. 

What Investors can Learn from the BC Wildfire Service’ Approach to Managing Fire 

In BC, the wildfire service uses a four-pillar approach to managing fire: mitigation, preparedness, response, and recovery. Each one offers an entry point for forest investors to consider how their capital—and their asset managers—can make a meaningful difference. 

1. Mitigation 
   This is the work done in anticipation of fire and risk reduction. It includes fuels management (like thinning and prescribed burning), land-use planning, and community engagement. For forest investment managers, it’s a chance to prioritize risk reduction as part of forest operations—particularly in the wildland-urban interface (as it is known in B.C.) where communities and forests meet. Investment funds can ensure their forest managers develop wildfire-informed management plans, support fuel treatment projects and educate the community on wildfire and how it’s risk can be reduced. 

2. Preparedness 
   Preparedness assumes fire will occur, and that you are prepared. It ensures trained staff, systems for detection, good access, communication systems, and coordinated operations. Asset managers can invest into fire detection systems and advocate for integrated wildfire planning with local governments, Indigenous and other communities. They can also support capacity-building—helping ensure local crews, communities, and forest managers have the resources and knowledge to respond quickly and safely. 

3. Response 
   In B.C., emergency response is led by public agencies, but in forest investment – it might largely be the responsibility of the forest manager. Ensuring that forest infrastructure—like roads, access routes, and fire breaks are in good condition —can directly support response capacity. Some forest managers work closely with local fire departments or Indigenous crews to provide support in high-risk areas. This is where existing relationships matter: investors should ensure their managers have local ties and know how to coordinate with response agencies. 

4. Recovery 
   After a fire, there’s often a long road to restore both ecological and economic function. Here, investors can play a role in rebuilding better—replanting with a species complex that results in a more fire-resilient landscape, improving landscape connectivity, and supporting ecosystem services. In some cases, recovery efforts can dovetail with carbon project development or biodiversity restoration, helping blend impact and financial goals. 

Local Knowledge and Community Ties Matter 

Throughout our conversation, Tony emphasized something that many in forest finance often overlook: fire is deeply personal, and it’s deeply local. Indigenous communities in B.C. have been using fire as a stewardship tool for thousands of years. Their knowledge—of place, of timing, of technique—is essential to any sustainable fire strategy. 

Investors should encourage their forest managers to build meaningful partnerships with Indigenous governments and local communities. Not just for social license, but because they hold some of the most practical, place-based solutions to reducing catastrophic fire risk. 

There’s also a role for community fire departments, non-profits, and even residents themselves. A Fire Smart program, like that in B.C., offers simple, cost-effective actions—like clearing flammable material around homes or adjusting building design—that can dramatically reduce fire impacts. In rural areas in emerging markets, Fire Smart programs often look more like fire education, assistance in shifting subsistence farming practices away from slash and burn agriculture and community wildfire detection systems. 

A Case for Action, not Avoidance 

One of the stories Tony shared was about a small, prescribed burn in Williams Lake. After the town was evacuated during the 2017 wildfires, local leadership—including the First Nation—wanted to take action. They started with a 2-hectare burn at the rodeo grounds. It was planned, careful, and visible. Over time, it became an annual event—and helped normalize the idea that fire can be part of the solution. 

It’s a good metaphor for forest investment in fire-prone regions. We don’t need to flee. We need to act—strategically, locally, and share lessons learned. There’s no “one size fits all” answer, but there are tested, effective approaches that can reduce fire risk and build long-term forest resilience – and a lot of building forest resilience is building knowledge. 

For Investors, a Mindset Shift 

Wildfire is a risk. But it’s also an opportunity for investors to show leadership—by backing managers who understand fire, support proactive treatment, and work hand-in-hand with communities and Indigenous nations. 

As Tony put it,

“Fire isn’t mystical. It can be understood. And there are things we can do about it.”

Let’s do them. 

Would you Like to Learn More about Building Fire-Resilient Forests? 

First, I encourage you to stay tuned for the Forest Invest podcast episode with Tony Pesklevits. Additionally, here are a couple of key points you will want to consider. 

• If a forest investment strategy that combines return drivers from wood products, climate improvement from reducing wildfire risk and impacts (think reducing wildfire emissions) and social benefits (think improved health and wellbeing from reduced wildfires in or adjacent communities, and in certain circumstances, restoring indigenous knowledge on traditional fire use) 

• Seek a local forest manager that has a strong knowledge on applying various silvicultural approaches for fire management, has trained staff, appropriate surveillance and fire fighting equipment, has a solid fire management plan, response and recovery system and has established good relationships with local fire fighting authorities and communities. 

If you’re looking for support on designing a fire-resilient forest investment strategy, reach out and let’s talk. Whether you’re interested in core forest investment jurisdictions, or emerging markets – there are several ways you can build fire resilience into your strategy – either as a focal element, or as a co-benefit.