Food Giants Pledge $1 Billion to Restore Forests Damaged by Palm

Global food giants including Nestle SA and Procter & Gamble are banding together to commit $1 billion to a new initiative that will fund conservation projects in Southeast Asia over 25 years.

The “Rimba Collective” initiative is launched by Singapore-based Lestari Capital with founding partners including Nestle, PepsiCo Inc. and Wilmar International. It aims to protect and restore 500,000 hectares of tropical forests, starting with Indonesia, according to a statement Thursday.

Payments to projects will be made following “demonstrable and verifiable delivery of impact,” Michal Zrust, co-founder of Lestari Capital, said in an interview. Eligible projects are all licensed ...