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  • About this company:

    Arauco operates in Argentina, Brazil, Canada, Chile, Portugal,

  • Parent company:
    Empresas Copec
  • Landbank
    1,017,770 hectares
  • Thomson Reuters ticker:
    Private company
  • Bloomberg ticker:
    Private company
  • Website:

Company assessment: Arauco – July 2019

Assessment date:

Total: 48.4% 59.5 / 123
  • Sustainability policy and leadership Sustainability policy and leadership
    5 / 9 55.6%
    • Partial
      0.5 / 1

      1. Sustainable forestry policy or commitment for all its operations?

      The company has general sustainability commitments which do not reference social issues

    • No
      0 / 1
      No source

      2. Sustainability policy or commitment applies to all sourcing?

    • Yes
      1 / 1

      3. High-level position of responsibility for sustainability?

      Corporate Manager for Environment, Communities, Health and Safety

    • 4. One or more board members have responsibility for sustainability?

      This indicator is disabled as the company is not publicly listed. Please note that ZSL has been unable to confirm this

    • 5. Percentage or number of women board members?

      This indicator is disabled as the company is not publicly listed. Please note that ZSL has been unable to confirm this

    • Partial
      0.5 / 1

      6. Percentage or number of women in senior management team?

      1 (6%) - The company does not explicitly report the number or percentage of women in senior management team. Figure calculated based on list of 16 names provided

    • Yes
      1 / 1

      7. Sustainability report published within last two years?

      2,018

    • Yes
      1 / 1

      8. Member of multiple industry schemes or other external initiatives to improve forest management or transparency?

      FSC, PEFC, UNGC, New Generation Plantations (NGP),

    • Yes
      1 / 1

      9. Activities with government, NGOs or academic institutions to improve the sustainability of forest products?

      The company provides examples of activities which include undertaking scientific research programs with universities, public institutions and NGOs, and participation in the Forests Dialogue, which brings together forestry companies, NGOs, and other interested parties to discuss relevant topics in forestry and promote actions associated with conservation, environmental restoration and improving relations with local communities

    • No
      0 / 1
      No source

      10. Climate risks assessment available?

    • No
      0 / 1
      No source

      11. Natural capital assessment available?

  • Landbank, mills and traceability Landbank, mills and traceability
    12.5 / 22 56.8%
    • Yes
      1 / 1

      12. Lists countries and operations?

      Brazil (forest concessions, production facilities), Uruguay (forest concessions, production facilities), Argentina (forest concessions, production facilities), Chile (forest concessions, production facilities), USA (production facilities), Canada (production facilities)

    • 13. Total area of natural forest designated for wood/wood fibre production (ha)?

      This indicator is disabled as the company reports that it only produces wood/wood fibre from plantation forests

    • Yes
      1 / 1

      14. Total area of forest plantation (ha)?

      1,017,770 - The planted area in Uruguay considers Arauco's 50% stake in Montes del Plata

    • No
      0 / 1
      No source

      15. Area of plantation/natural forest within outgrower schemes (ha)?

    • Partial
      0.5 / 1

      16. Unplanted (areas designated for future development as plantation forest) (ha)?

      86,145 - Figure represents unplanted areas in Chile only

    • Yes
      1 / 1

      17. Conservation set-aside and/or HCV area (ha)?

      440,000

    • No
      0 / 1
      No source

      18. Area of Intact Forest Landscape (ha)?

    • No
      0 / 1
      No source

      19. Number of Forest Management Units (FMUs)?

    • No
      0 / 1
      No source

      20. Maps of forest management units (FMUs)?

    • Partial
      0.5 / 1

      21. Forest management plans available for all FMUs?

      Two public summaries of a forest management plans are only available for the company's forestry operations in Chile and Brazil

    • Partial
      0.5 / 1

      22. Monitoring of forest management plan implementation?

      Two public summaries of monitoring of forest management plans are only available for the company's forestry operations in Chile and Brazil

    • 23. Company has provided valid legal documents to Open Timber Portal on use rights (at the time of SPOTT assessments)?

      This indicator is disabled as the company reports that it doesn't operate in a geography currently covered by Open Timber Portal

    • 24. Company has provided valid legal documents to Open Timber Portal on forest management (at the time of SPOTT assessments)?

      This indicator is disabled as the company reports that it doesn't operate in a geography currently covered by Open Timber Portal

    • 25. Company has provided valid legal documents to Open Timber Portal on timber harvesting (at the time of SPOTT assessments)?

      This indicator is disabled as the company reports that it doesn't operate in a geography currently covered by Open Timber Portal

    • Yes
      1 / 1

      26. Number of company owned pulp and paper mills?

      7 - Figure includes one pulp mill under Montes del Plata of which Arauco owns 50%

    • No
      0 / 1
      No source

      27. Maps or addresses of company owned pulp and paper mills?

    • Yes
      1 / 1

      28. Number of company owned sawmills?

      9 - The figure includes one sawmill under Sonae Arauco of which Arauco owns 50%

    • No
      0 / 1
      No source

      29. Maps or addresses of company owned sawmills?

    • No
      0 / 1
      No source

      30. Number of supplier mills?

    • No
      0 / 1
      No source

      31. Maps or addresses of supplier mills?

    • Yes
      1 / 1

      32. Procedures to trace raw materials to country of harvest?

      The company states that it can trace all of its products back to responsible sources

    • Yes
      1 / 1

      33. Procedures to trace raw materials to FMU level?

      The company states that it can trace all of its products back to responsible sources

    • Yes
      2 / 2

      34. Percentage of supply traceable to country level (above 80%)?

      100% - The company states all of its products are compliant with FSC CoC verifying that it can trace the wood fibre used in production back to responsible sources

    • Yes
      2 / 2

      35. Percentage of supply traceable to FMU level (above 75%)?

      100% - The company states all of its products are compliant with FSC CoC verifying that it can trace the wood fibre used in production back to responsible sources

  • Deforestation and biodiversity Deforestation and biodiversity
    6.5 / 10 65%
    • Yes
      1 / 1

      36. Commitment to zero conversion of natural forest?

    • Partial
      0.5 / 1

      37. Zero conversion commitment applies to all sourcing?

      The company only has a commitment for its Chilean operations to only source wood/wood fibre that meets FSC Controlled Wood requirements which includes not sourcing wood from forests with a high conservation value

    • 38. Commitment to minimise the impact of logging roads?

      This indicator is disabled as the company reports that it only produces wood/wood fibre from plantation forests

    • No
      0 / 1
      No source

      39. Commitment to protect forest areas from illegal activities?

    • No
      0 / 1
      No source

      40. Evidence of monitoring deforestation?

    • No
      0 / 1
      No source

      41. Amount of deforestation recorded?

    • Yes
      1 / 1

      42. Commitment to biodiversity conservation?

    • Yes
      1 / 1

      43. Examples of species and/or habitat conservation management?

      The company gives multiple examples of species and habitat conservation management, including restoration of waterways and reforestation, a species recovery project for a threatened plant species, and participation in a conservation project with other stakeholders for a provincially protected marsh deer in Argentina

    • Yes
      1 / 1

      44. Implementing a landscape-level approach to biodiversity conservation?

    • Yes
      1 / 1

      45. Identified species of conservation concern referencing international or national system of species classification?

    • 46. Commitment to sustainably manage the use of non-timber forest products (NTFPs)?

      This indicator is disabled as the company reports that it only produces wood/wood fibre from plantation forests

    • Yes
      1 / 1

      47. Commitment not to use genetically modified organisms?

  • HCV, HCS and impact assessments HCV, HCS and impact assessments
    4 / 8 50%
    • Yes
      1 / 1

      48. Commitment to conduct High Conservation Value (HCV) assessments?

    • Partial
      0.5 / 1

      49. HCV commitment applies to all sourcing?

      The company has committed to not be directly or indirectly involved in the destruction of high conservation values in forestry operations. This commitment is made through the FSC Policy for Association (FSC-POL-01-004)

    • 50. Commitment to only use licensed High Conservation Value (HCV) assessors accredited by the HCV Resource Network's Assessor Licensing Scheme (ALS)?

      This indicator is disabled until sufficient number of HCV ALS licensed assessors are available for the location where the company operates

    • Partial
      0.5 / 1

      51. High Conservation Value (HCV) assessments available?

      The company published summaries of HCV assessments for Chile, Brazil and Argentina. No HCV assessments have been found for Uruguay

    • Partial
      0.5 / 1

      52. High Conservation Value (HCV) management and monitoring plans available?

      The company published summaries of HCV monitoring and management plans for Chile, Brazil and Argentina. No HCV monitoring and management plans have been found for Uruguay

    • No
      0 / 1
      No source

      53. Commitment to the High Carbon Stock (HCS) Approach?

    • No
      0 / 1
      No source

      54. High Carbon Stock (HCS) assessments available?

    • Partial
      0.5 / 1

      55. Commitment to conduct social and environmental impact assessments (SEIAs)?

      The company has an SEIA methodology which states that it needs to be followed prior to new developments. However it only needs to be followed when the national legislation requires such assessments to be conducted

    • Yes
      1 / 1

      56. Social and environmental impact assessments (SEIAs) available?

      The summary of a Social and Environmental Impact assessment for Chile is publicly available

    • 57. Company has provided valid legal documents to Open Timber Portal on impact assessments (at the time of SPOTT assessments)?

      This indicator is disabled as the company reports that it doesn't operate in a geography currently covered by Open Timber Portal

  • Soils, fire and GHGs Soils, fire and GHGs
    7 / 13 53.8%
    • Yes
      1 / 1

      58. Commitment to best management practices for soils and/or peat?

    • 59. Commitment to reduced impact logging?

      This indicator is disabled as the company reports that it only produces wood/wood fibre from plantation forests

    • Yes
      1 / 1

      60. Commitment to no planting on peat of any depth?

    • No
      0 / 1
      No source

      61. Commitment on peatland planting applies to all sourcing?

    • No
      0 / 1
      No source

      62. Landbank or planted area on peat (ha)?

    • Partial
      1 / 1

      63. Evidence of best management practices for soils and/or peat?

      The company states to not plant on peat soils and provides evidence of best management practices for other soils

    • Partial
      0.5 / 1

      64. Commitment to zero burning?

      The company states in a site preparation manual that fire should not be used for land preparation. However an overall commitment to zero burning could not be found

    • No
      0 / 1
      No source

      65. Commitment to zero burning applies to all sourcing?

    • Yes
      1 / 1

      66. Evidence of management and monitoring fires?

    • Yes
      1 / 1

      67. Details/number of hotspots/fires in FMUs controlled by the company?

    • No
      0 / 1
      No source

      68. Time-bound commitment to reduce GHG emissions intensity?

    • Partial
      0.5 / 1

      69. Progress towards reducing GHG emission intensity?

      The company reports annual overall emission data for 2014-2016 in its 2017 sustainability report

    • No
      0 / 1
      No source

      70. Report GHG emissions from land use change?

    • Yes
      1 / 1

      71. Methodology used to calculate GHG emissions?

      GHG Protocol for scopes 1, 2 and 3

  • Water, chemical and waste management Water, chemical and waste management
    4 / 13 30.8%
    • No
      0 / 1
      No source

      72. Time-bound commitment to improve water quality (BOD and COD)?

    • No
      0 / 1
      No source

      73. Progress towards commitment on water quality (BOD and COD)?

    • Yes
      1 / 1

      74. Commitment to protection of natural waterways through buffer zones?

    • Yes
      1 / 1

      75. Evidence of treatment of pulp and paper mill effluent?

    • Partial
      0.5 / 1

      76. Evidence of sawmill run-off containment and wastewater treatment?

      The company provides evidence of treatment of wastewater from sawmills only

    • No
      0 / 1
      No source

      77. Time-bound commitment to improve water use intensity?

    • Partial
      0.5 / 1

      78. Progress towards commitment on water use intensity?

      51.9 - The company reports its water use intensity figures for pulp (51.9 m3/Adt), but does not have a commitment in place

    • No
      0 / 1
      No source

      79. Commitment to eliminate chlorine and chlorine compounds for bleaching?

    • No
      0 / 1
      No source

      80. Commitment to minimise the use of chemicals, including pesticides and chemical fertilisers?

    • No
      0 / 1
      No source

      81. No use of World Health Organisation (WHO) Class 1A and 1B pesticides?

    • No
      0 / 1
      No source

      82. No use of chemicals listed under the Stockholm Convention and Rotterdam Convention?

    • Partial
      0.5 / 1

      83. Integrated Pest Management (IPM) approach?

      The company only states they have a "Phytosanitary Protection Program, with activities based on the Integrated Pest Management concept."

    • Partial
      0.5 / 1

      84. Chemical usage per ha or list of chemicals used?

      Lists chemical usage in Kg/ADt for its pulp business

  • Community, land and labour rights Community, land and labour rights
    13 / 22 59.1%
    • Yes
      1 / 1

      85. Commitment to human rights, referencing the UN Declaration on Human Rights or UN Guiding Principles on Business and Human Rights?

      The company has committed to not be directly or indirectly involved in the violation of human rights in forestry operations. This commitment is made through the FSC Policy for Association (FSC-POL-01-004), which defines human rights as those established through the UN Declaration of Human Rights

    • Yes
      1 / 1

      86. Commitment to human rights applies to all sourcing?

      The company has committed to not be directly or indirectly involved in the violation of human rights in forestry operations. This commitment is made through the FSC Policy for Association (FSC-POL-01-004), which defines human rights as those established through the UN Declaration of Human Rights

    • Yes
      1 / 1

      87. Commitment to respect indigenous and local communities' rights?

      The company has committed to not be directly or indirectly involved in the violation of human rights in forestry operations. This commitment is made through the FSC Policy for Association (FSC-POL-01-004), which encompasses the rights of Indigenous and Tribal Peoples as established by the ILO Convention 169

    • Partial
      0.5 / 1

      88. Commitment to respect legal and customary property rights?

      The company has committed to not be directly or indirectly involved in the violation of traditional rights in forestry operations. This commitment is made through the FSC Policy for Association (FSC-POL-01-004), which encompasses customary rights. This policy does not reference legal rights and no reference to legal rights could be found in company sources

    • No
      0 / 1
      No source

      89. Commitment to free, prior and informed consent (FPIC)?

    • No
      0 / 1
      No source

      90. FPIC commitment applies to independent suppliers?

    • No
      0 / 1
      No source

      91. Details of free, prior and informed consent (FPIC) process available?

    • Yes
      1 / 1

      92. Examples of local stakeholder engagement to prevent conflicts?

    • Yes
      1 / 1

      93. Details of process for addressing land conflicts available?

    • No
      0 / 1
      No source

      94. Commitment to support the inclusion of women across forestry operations, including addressing barriers faced?

    • Partial
      0.5 / 1

      95. Commitment to provide essential community services and facilities?

      The company gives examples of providing essential community services, but does not have a clear commitment to do so

    • 96. Company has provided valid legal documents to Open Timber Portal on population rights (at the time of SPOTT assessments)?

      This indicator is disabled as the company reports that it doesn't operate in a geography currently covered by Open Timber Portal

    • No
      0 / 1
      No source

      97. Commitment to respect all workers' rights?

    • Yes
      1 / 1

      98. Reference to Fundamental ILO Conventions?

      The company has committed to not be directly or indirectly involved in the violation of any of the ILO Core Conventions. This commitment is made through the FSC Policy for Association (FSC-POL-01-004)

    • Yes
      1 / 1

      99. Commitment to eliminate gender related discrimination with regards to employment and occupation?

    • 100. Company has provided valid legal documents to Open Timber Portal on labour regulations (at the time of SPOTT assessments)?

      This indicator is disabled as the company reports that it doesn't operate in a geography currently covered by Open Timber Portal

    • Yes
      1 / 1

      101. Percentage or number of temporary employees?

      21,208 (58%) - The company refers to contract workers

    • Yes
      1 / 1

      102. Percentage or number of women employees?

      1,857 (12%)

    • Partial
      0.5 / 1

      103. Payment of minimum wage?

      The company states that it pays above the minimum legal wage in each country where it operates, but no evidence is given

    • No
      0 / 1
      No source

      104. Reporting of salary by gender?

    • Partial
      0.5 / 1

      105. Commitment to address occupational health and safety, referencing the ILO Code of Practice on Safety and Health in Forestry Work?

      The company does not refer to the ILO Code of Practice on Safety and Health in Forestry Work

    • Partial
      0.5 / 1

      106. Time lost due to work-based injuries?

      3.2 - Figure provided is the company's consolidated Accident Frequency Rate (AFR), however it only covers the company's operations in Chile, Argentina, Brazil and North America

    • Yes
      1 / 1

      107. Number of fatalities as a result of work-based accidents?

      2 - Data is for 2018

    • Partial
      0.5 / 1

      108. Provision of personal protective equipment and related training?

      The company makes reference to providing relevant training, but does not specify it provides PPE

  • Certification standards Certification standards
    0.5 / 14 3.6%
    • No
      0 / 1
      No source

      109. Time-bound plan for achieving 100% third-party legality verification of FMUs or achieved?

    • No
      0 / 1
      No source

      110. Time-bound plan to source only wood/wood fibre that is in legal compliance verified by a third party?

    • No
      0 / 1

      111. Percentage area (ha) verified as being in legal compliance by a third party?

      The company has FSC and PEFC certified forestry operations, but the area this covers in unclear so the percentage certified cannot be calculated

    • No
      0 / 1
      No source

      112. Percentage of all wood/wood fibre supply traded/processed verified as being in legal compliance by a third party?

    • No
      0 / 1
      No source

      113. Time-bound plan for achieving 100% FSC FM certification of FMUs or achieved 100% FSC-certification of FMUs?

    • Partial
      0.5 / 1

      114. Commitment to source only wood/wood fibre that meets FSC Controlled Wood requirements?

      The company has a commitment for its Chilean operations to only source wood/wood fibre that meets FSC Controlled Wood requirements

    • No
      0 / 2

      115. Percentage area (ha) FSC FM certified?

      The company has FSC FM certification for Arauco Argentina S.A., Arauco Forest Brasil S.A., Forestal Arauco S.A., Arauco Florestal Arapoti S.A., Arauco Forest Brasil S.A., however the percentage area of Arauco's whole operations that is FSC certified cannot accurately be calculated

    • No
      0 / 2
      No source

      116. Percentage of wood/wood fibre supply from outgrower scheme and/or independent suppliers that is FSC FM certified?

    • No
      0 / 2
      No source

      117. Percentage of all wood/wood fibre supply traded/processed that are FSC certified (above 75%)?

    • No
      0 / 2

      118. Percentage area (ha) PEFC certified (excluding FSC certified area)?

      The company has CERTFOR certification for Forestal Arauco S.A., and SGS Uruguay certification for Arauco Argentina, however the area this covers is not provided and the total certified area cannot be calculated.

  • Smallholders and suppliers Smallholders and suppliers
    4 / 6 66.7%
    • Yes
      1 / 1

      119. Programme to support outgrower scheme smallholders?

      The company has a programme to support outgrower smallholders in Chile which includes afforestation, diversification and economic support

    • No
      0 / 1
      No source

      120. Percentage of outgrower scheme smallholders involved in programme?

    • Yes
      1 / 1

      121. Process used to prioritise, assess and/or engage suppliers on compliance with company's policy and/or legal requirements?

      The company follows the FSC Due Diligence System to evaluate and engage suppliers of Eucaliptus, Pinus, Pseudotsuga menziesii and Populus species

    • Yes
      1 / 1

      122. The company has a Due Diligence System (DDS)?

      The company follows the FSC Due Diligence System to evaluate suppliers of Eucaliptus, Pinus, Pseudotsuga menziesii and Populus species

    • Yes
      1 / 1

      123. Suspension or exclusion criteria for suppliers?

    • No
      0 / 1
      No source

      124. Percentage of suppliers assessed and/or engaged on compliance with company requirements?

  • Governance and grievances Governance and grievances
    3 / 6 50%
    • Yes
      1 / 1

      125. Commitment to ethical conduct and prohibition of corruption?

    • 126. Company has provided valid legal documents to Open Timber Portal on legal registration (at the time of SPOTT assessments)?

      This indicator is disabled as the company reports that it doesn't operate in a geography currently covered by Open Timber Portal

    • No
      0 / 1
      No source

      127. Disclosure of the company's management approach to tax and payments to governments?

    • 128. Company has provided valid legal documents to Open Timber Portal on taxes, fees and royalties (at the time of SPOTT assessments)?

      This indicator is disabled as the company reports that it doesn't operate in a geography currently covered by Open Timber Portal

    • Yes
      1 / 1

      129. Whistleblowing procedure?

    • Yes
      1 / 1

      130. Own grievance or complaints system open to all stakeholders?

    • No
      0 / 2
      No source

      131. Details of grievances disclosed?

Media monitor: Arauco

SPOTT gathers reports and stories from global media sources, covering specific company activities related to the assessment indicator categories. ZSL does not assess the validity of these reports.

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Scoring criteria: Arauco

Scoring criteria guide how ZSL conducts SPOTT assessments and allocates scores to ensure a fair and consistent approach, setting the expectations for companies on how they should publish ESG data. The full indicator framework contains 131 indicators across 10 categories.

SPOTT is a ZSL initiative.
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