Inter IKEA Group has unveiled a major new partnership with BTG Pactual’s Timberland Investment Group (TIG) to restore and responsibly manage degraded land in Brazil’s Atlantic Forest, one of the most threatened ecosystems on the planet. The initiative, spanning roughly 4,000 hectares of deforested or low-productivity pastureland, marks a significant step in IKEA’s broader €100 million commitment to carbon removal and long-term reforestation. Can this collaboration redefine how global brands link supply chain responsibility with large-scale ecosystem recovery?

A New Model for Climate Positive Forestry

The project represents a hybrid model that balances conservation and sustainable production. Approximately half of the land will be dedicated to the restoration of native Atlantic Forest habitats, while the other half will be developed into sustainably managed pine forests. These pine plantations are designed not only to generate renewable raw materials but also to create stable economic opportunities for nearby communities, ensuring that environmental goals translate into tangible social impact. According to BTG Pactual TIG, restoring forests in the Atlantic biome is critical, as this region has lost over 85 percent of its original cover. The reforestation effort will enhance biodiversity, sequester carbon, and regenerate ecosystem functions such as water regulation and soil health addressing both local degradation and global climate challenges.

Read more: EU Reaches Landmark Deal on 2040 Climate Target, Expands Role for Carbon Credits

Expanding IKEA’s Commitment Beyond Supply Chains

For IKEA, the initiative extends its sustainability agenda beyond its immediate material sourcing. The Inter IKEA Group, which connects franchisees, suppliers, and range development units globally, views forest stewardship as a cornerstone of responsible resource use.

Ulf Johansson, Global Head of Raw Materials for Inter IKEA Group, emphasized that the project allows the company to “lead by example in responsible forest management extending our efforts beyond the wood we source for our own business.” He added that the partnership demonstrates how reforestation and restoration can mitigate climate change by capturing and storing carbon in land, plants, and ultimately in products that re-enter the circular economy.

This venture also supports IKEA’s ambition to become climate positive by 2030 reducing more greenhouse gas emissions than the company’s entire value chain emits, while maintaining sustainable growth.

Science-Based Stewardship and Measurable Impact

The project will be guided by an independent advisory panel of experts drawn from leading global and local NGOs, academic institutions, and conservation organizations. Their role will be to define impact metrics, identify community needs, and evaluate biodiversity and social outcomes. Carbon uptake, water balance, soil quality, and social co-benefits will be measured continuously and independently verified to ensure transparency and accountability. This level of oversight positions the initiative as a prototype for science-based nature restoration projects that integrate rigorous monitoring with community participation. By embedding verification and impact assessment into the project design, IKEA and TIG aim to address one of the biggest criticisms of reforestation efforts namely, the difficulty of quantifying long-term ecological and carbon benefits.

Explore OneStop ESG Marketplace: Carbon offset services

BTG Pactual’s Expanding Timberland Strategy

BTG Pactual TIG, which manages approximately 2.9 million acres of timberland across the U.S. and Latin America, brings deep experience in sustainable forestry investment and land management. Founded in 2013 following BTG Pactual’s acquisition of TTG Brasil and Regions Timberland Group, TIG now manages $7.3 billion in assets and commitments.

Head of TIG, Gerrity Lansing, praised IKEA’s leadership in integrating sustainability into its business operations, stating that “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 environment.”

For TIG, the partnership reinforces the business case for large-scale restoration as a viable investment class that combines carbon sequestration with long-term economic returns.

Toward a Scalable Future for Forest Restoration

The Brazilian Atlantic Forest project will serve as a testing ground for a scalable forest management model that IKEA intends to replicate across other geographies. By blending natural restoration with sustainable production, the model seeks to balance ecological recovery with economic continuity, a critical challenge in countries where deforestation often stems from poverty and land-use pressures. As Johansson noted, the lessons learned from this collaboration could shape IKEA’s future global investments in carbon removal and biodiversity protection. The initiative reflects a growing trend among multinational corporations to shift from compensatory offsets toward projects that directly rebuild natural capital. If successful, the IKEA–BTG Pactual partnership could redefine corporate-led reforestation proving that climate mitigation, economic inclusion, and circular resource management can thrive together in one of Earth’s most fragile biomes.

Explore ESG Solutions on our marketplace - OneStop ESG Marketplace.

Keep abreast of the top ESG Events on OneStop ESG Events.

OneStop ESG Educate: Your go-to source for top ESG courses and training programs tailored to your needs.

Stay informed with the latest insights on OneStop ESG News.

Discover meaningful career opportunities on OneStop ESG Jobs.