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Technology for a Sustainable Future: Finland's Role in the Global Forest Sector Transformation

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In a world where digitalization is redefining industries, Finland has established itself as a superpower in forest technology. With over 75% of its territory covered by forests, it has led the transition toward data-driven sustainable management.

"Our expertise in digitalization and sustainability positions Finland as an ideal partner for industries seeking efficiency and environmental responsibility," stated Johanna Kotkajärvi, Finland's Ambassador to Chile.

The digital transformation of the forest industry enables data-driven, real-time decision-making, optimizing inventories, harvesting, and operational management.

The more knowledge, the better the decisions. Real-time data and information allow for more efficient forest management, optimized forestry operations, and improved digital services for forest owners.

The new era of forest management

Finland's technological leadership is reflected in companies like AFRY and Pinja, which have developed tools that enhance operational efficiency and reinforce the sustainability of the forest sector.

AFRY develops advanced tools to transform forestry operations. The company offers software solutions, consulting, and services covering the entire digitalization process—from forest inventory measurement to optimal planning and execution of operations.

AFRY's products bring reliability to decision-making through mapping, optimization, monitoring, and learning across the lifecycle and functions of forest supply chains, aiming to improve operational forest management.

Its TreeMaps platform, based on remote sensors installed on aircraft and drones, enables individual tree mapping with unprecedented precision, optimizing inventory management and resource utilization. Additionally, its Smart Forestry Manager integrates operational data, inventories, and regulations into a single platform, facilitating real-time decision-making. These decisions can be further optimized with Smart Forestry Planner, a tool that projects the future of forests and provides guidance on the best management strategies.

Dr. Jussi Rasinmäki, Head of Smart Forestry at AFRY, emphasized that "these solutions combine technological precision with innovative strategies, adapting to markets like Chile. This ensures resource optimization and cost reduction, key factors for sustainable growth."

Digitalization and Traceability in the Forest Value Chain

Pinja is a leader in digitalization, specializing in industrial and AI solutions for the entire roundwood value chain. Its approach enhances the competitiveness of the forest sector while promoting responsible business practices.

Thanks to Pinja's ERP solutions, sawmills and wood processing companies can digitalize the entire value chain, optimize raw material procurement, improve resource traceability, and boost industrial productivity while managing their businesses responsibly.

A key aspect of the forest sector's digital transformation is traceability, an increasingly relevant topic in Chile and global markets. Pinja offers advanced functionality to comply with the EUDR (EU Deforestation Regulation), ensuring transparency and precise tracking across the supply chain. Integration with EUDR allows companies to meet current legislation and guarantee the sustainability of their operations, aligning with growing market demands for environmental responsibility.

Additionally, Pinja provides comprehensive electronic timber transactions, real-time harvest and transport logistics monitoring, and a real-time cost control system. Its tools include detailed maps and wood origin tracking, streamlining daily operations and ensuring efficient, sustainable management.

"Our focus is on digitalizing and optimizing critical forestry operations. What's exceptional here is that, as a software company, we specialize in industrial sustainability and environmental issues," explained Pinja CEO Matti Heikkonen. "Our solutions enable companies to respond swiftly and responsibly to market needs, driving a more efficient and sustainable forest sector," he added.

Opportunities for Chile

Adopting Finland's advanced digital solutions presents a major opportunity for Chile's forest sector, strengthening its global competitiveness and advancing its sustainability goals.

In this context, Finland's ambassador highlighted the signing of a Memorandum of Understanding between Corfo and Finland’s VTT Technical Research Centre to enhance collaboration between companies and universities in developing key sustainable innovations for both countries.

"Integrating Finnish technology into Chile's forest sector is a unique opportunity to unite innovation and sustainability," affirmed Johanna Kotkajärvi, noting that Finland ranks 7th among 133 economies in the 2024 Global Innovation Index (GII).

Finnish Figures

With 75% of its territory covered by forests, Finland has 22.8 million hectares of forest area and 2.5 billion cubic meters of timber resources. The forest sector accounts for 15.9% of the country's foreign trade, supported by a robust industrial infrastructure with 134 plants and factories employing 82,800 people across the value chain. Beyond its economic impact—contributing €3.1 billion in tax revenue and €1.9 billion in annual investments—the sector stands out for its environmental commitment: it has reduced CO₂ emissions by 69% and delivers a climate benefit equivalent to 16 million tons of CO₂.