Large investment in new forest and biodiversity in the Region of Southern Denmark

A goal has been set: By year 2100[1], 25 percent of Denmark must be covered by forest. The new Danish government has already set a target of 250,000 hectares of new forest, so action is needed, if this is to succeed. Now a company in Vejen is contributing to the afforestation with an investment which can contribute to increasing biodiversity in the local environment.

The Danish listed sourcing and services company Solar started in 1919 in Kolding and still has its headquarters firmly planted in the Jutland soil in Vejen. The local investment in planting a brand new forest in the area is an important part of the company's ambitious sustainability strategy, including, among other things, increased biodiversity and the goal of becoming CO2 neutral in scope 1 and 2 as early as 2030[2].

"In collaboration with Hedeselskabet[3], we will initially convert 38 hectares of agricultural land into a completely new forest in Vejen, starting May 2023. We will plant approximately 115,000 trees divided between 35 percent deciduous and 65 percent coniferous trees. We want that combination to get a forest that takes both climate and environment into consideration. Coniferous trees have approximately 65 percent greater CO2 absorption compared to deciduous trees, which on the other hand have a large effect on biodiversity," says Director Sustainability Mette Bredkjær from Solar and continues:

"Both the forest and its operation will be certified with the global labelling system FSC. Our intention with the acquisition of agricultural land is to invest in the climate and environment through afforestation, forest improvement and increased biodiversity, which will benefit us all".

Companies are an important source of more forest
The purchase of the land and the plan for the afforestation at Vejen took place in close cooperation with Hedeselskabet, which has long emphasised the need for more private companies to step in and actively acquire areas to establish new forests in Denmark. The journey is long, as forests currently only cover approximately 14 percent of the country.

"We are pleased that a large Danish company is now moving from nice words and wishes to putting actions behind it. It takes between 80 and 100 years for a tree to grow big and about 20 years to really make a difference in the reduction of CO2, so the best time to plant a tree was yesterday. It also takes time for the increased biodiversity to occur in an afforestation and only after a long time of forest cover, the vulnerable forest species are established. And when we talk about forest, we mean that there are no trees on the entire area. We keep some areas open to light and support existing natural values," says Mads Frimann Olsen, Climate Partner at Hedeselskabet.

Proximity principle and further acquisitions
It has been a great wish for Solar to be able to follow the afforestation up close and take an active part in the work. Therefore, proximity has been a key factor in choosing a location. The fact that the new forest is located a few minutes from the company's headquarters also means that it will benefit Solar's employees. Over time, a recreational space will be created in the new forest with shelters that are in harmony with nature and the surroundings, which employees can use.

Solar's investment does not stop here. Afforestation is a long-term commitment embedded in the company's board of directors, and Solar expects to acquire additional properties in the coming years, focusing on afforestation and increasing biodiversity on the land that is acquired.

About Solar
Solar is a sourcing and services company. This means that we purchase goods on behalf of our customers within electricity, plumbing, industry, climate and energy. You can read much more about how we help our customers under "About Solar".

In 2022, Solar's revenue was DKK 13.9 billion. Solar A/S is listed on Nasdaq Copenhagen with the short designation SOLAR B and has been since 1953. The share is part of the MidCap+ index. The management consists of CEO Jens Andersen, CFO Michael H. Jeppesen and CCO Hugo Dorph. For more information about our share, please refer to the Investor section.

[1] https://mfvm.dk/fileadmin/user_upload/MFVM/Nyheder/Danmarks_nationale_skovprogram_2018.pdf

[2] https://www.solar.eu/globalassets/shared/about-solar/csr-and-sustainability/reports-archieve/solar-sustainability-report-2022.pdf

[3] Hedeselskabet is a Danish business foundation working with advice, service, operation, contractor services and trade in forestry, landscaping, environment and energy.

Solar's CEO Jens Andersen and Mads Frimann Olsen from Hedeselskabet.