Vale, Suzano, Marfrig and banks create company to restore forests

A group formed by Itaú, Marfrig, Rabobank, Santander, Suzano and Vale announced this Saturday (12) the creation of a company exclusively dedicated to the activities of restoration of degraded areas and conservation of forests in Brazil.

Called Biomas, the company will have an initial contribution of R$ 120 million — R$ 20 million from each of the six partners. The idea is that it will be maintained in the following years through the sale of carbon credits.

The alliance between the companies was launched during COP27, the United Nations conference on climate change that takes place in Sharm el-Sheik, Egypt.

Biomas expects, over 20 years, to reach 4 million hectares of preserved native forests — an area equivalent to the state of Rio de Janeiro.

Of this total, 2 million hectares will be restored through the planting of native trees, and another 2 million will be conserved. The action will take place in different Brazilian biomes, mainly the Amazon and Cerrado.

Between removals and avoided emissions, Biomas calculates to reduce approximately 900 million tons of carbon from the atmosphere in the period of two decades. In addition, it is estimated that the new company will contribute to the protection of more than 4,000 species of animals and plants.

According to the alliance of companies, the first stage of the project will consist of identifying areas and promoting nurseries for the production of native trees on a large scale.

The partners will also structure the technical staff of the new company, which does not intend to acquire areas, but to form partnerships with landowners, from the generation of carbon credits and the sharing of part of this revenue.

Biomas’ first steps also involve engaging local communities in the company’s activities, discussing the project’s application in public areas, seeking partnerships with carbon credit certification platforms and implementing pilot projects.

Completion of the transaction is subject to regulatory approvals. The expectation is that restoration and conservation activities will begin in 2023 and gain scale from 2025, until reaching the goal of 4 million hectares.

Headed by Suzano, from the pulp and paper sector, the alliance also hopes to stimulate the development of the regions where the company operates, generating jobs from planting activities, the development of new nurseries and the involvement of communities in the project’s value chain.

“We gathered the strength of these companies in an unprecedented initiative in the world to promote a movement of positive impact, with effective conditions to generate and share value with local communities and the environment from the promotion of restoration, conservation and preservation actions”, he said. Walter Schalka, president of Suzano, in a note.

Paulo Pianez, director of sustainability and corporate communication at Marfrig, says that the initiative contributes to making the meatpacking supply chain more sustainable.