SAO PAULO (Reuters) -Nestle announced on Thursday environmental restoration projects in partnership with reforestation startup re.green and chocolatier Barry Callebaut in Brazil, seeking to plant millions of trees in areas where it sources key ingredients.

WHY IT'S IMPORTANT

The initiative is part of a wave of corporate investments scaling up Brazil's reforestation industry and aligns with Nestle's goal to become net zero by 2050, while restoring ecosystems in areas critical for cocoa and coffee production.

BY THE NUMBERS

The companies said the two separate projects will plant 11 million trees across 8,000 hectares (19,768 acres).

The re.green project, designed to span 30 years, involves planting 3.3 million trees of native species from Brazil's coastal Atlantic rainforest in the northeastern state of Bahia. It is expected to generate 880,000 carbon credits.

The separate partnership with Barry Callebaut seeks to restore 6,000 hectares in the states of Bahia and Para, most of which will be converted into agroforestry systems with cocoa.

KEY QUOTES

"These projects will support our decarbonization targets, but our sustainability strategy goes beyond carbon removal," Nestle Brasil's Business Transformation and ESG director Barbara Sapunar said.

"We want to regenerate areas in regions where we source ingredients. Environmental restoration increases the resilience of supply chains," she added.

Re.green CEO Thiago Picolo said the initiatives showcase how companies can go beyond carbon offsetting and invest in restoring landscapes tied to their supply chains.

ADDITIONAL CONTEXT

Brazil is the world's largest coffee producer and exporter, as well as the world's fifth-largest chocolate market.

Nestle will fully fund the re.green project and cover 60% of costs for the Barry Callebaut initiative, it said. They are part of the company's broader goal of planting 200 million trees by 2030 in regions where it sources ingredients such as coffee, cocoa and milk.

Re.green is backed by Brazilian billionaire Joao Moreira Salles and asset manager Gavea, founded by former Brazilian central bank governor Arminio Fraga. Swiss-based Barry Callebaut is the world's top chocolatier.