IKEA Launches Project to Protect, Restore Forest in Brazil
IKEA announced that the Inter IKEA Group has launched a new project with BTG Pactual Timberland Investment Group (TIG) to protect, restore, and responsibly manage degraded and low-productive land in an endangered ecosystem in Brazil.
Inter IKEA Group is the group of companies that connects IKEA franchisees with range development and suppliers, and is responsible for aligning the overall IKEA strategic direction. According to IKEA, the new partnership forms part of the company’s existing commitment to invest €100 million for removing and storing carbon.
The new project will focus on conserving, restoring and reforesting a total portfolio of approximately 4,000 hectares of deforested or low-productive pastureland in Brazil’s Atlantic Forest, which is among the most deforested biomes in Brazil, according to BTG Pactual TIG, noting that forests are one of the most effective tools for removing CO2 from the atmosphere.
Approximately half of the project area will be dedicated to protecting, restoring, and enhancing the native Atlantic Forest, with the other half to be planted with sustainable managed pine farms, which will provide sustained economic activity and job opportunities for local communities, while supporting the restoration and conservation of the land.
IKEA said that an advisory panel comprised of experts with long-standing experience working with leading global and local NGOs will support the project, helping to shape impact criteria, foster academic partnerships, and identify risks and opportunities for deeper community engagement, and that carbon uptake and impacts on biodiversity, water, soil, and social dimensions will be continuously measured and independently verified throughout the project.
Ulf Johansson, Global Head of Raw Materials for Inter IKEA Group, said:
“In IKEA, we recognise our responsibility as a major user of wood and strive to lead by example in responsible forest management – extending our efforts beyond the wood we source for our own business. This project explores how reforestation, restoration, and responsible forest management can help mitigate climate change by capturing and storing carbon in land, plants, and eventually products.”
IKEA added that the new initiative will enable it to test a scalable model, with the aim of expanding future investments.
BTG Pactual TIG was formed in 2013 following the acquisition by investment bank BTG Pactual of timberland asset management companies TTG Brasil and Regions Timberland Group. The company is one of the largest global timberland investment managers, with 2.9 million acres under management across the U.S., and Latin America and $7.3 billion in assets and commitments.
Gerrity Lansing, Head of BTG Pactual TIG, said:
“We appreciate Inter IKEA Group for taking meaningful action to enhance the sustainability of its supply chain by investing in the protection, restoration and responsible management of forests in this critical biome. IKEA is showing the kind of leadership we need much more of, and we’re proud to partner with an organisation that shares our commitment to creating lasting positive outcomes for climate and environmental.”