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Arauco operates in Argentina, Brazil, Canada, Chile, Portugal, Spain, Uruguay and the US, with headquarters

Company assessment: Arauco – July 2019

SPOTT assesses companies against over 100 indicators across ten categories. Click on the icons or bars below to expand each category for further details, scoring and links to reports and sources.

Assessment date:

Total: 48.4% 59.5 / 123
  • Sustainability policy and leadership Sustainability policy and leadership 5 / 9 55.6%
    • Companies should publish sustainability policies or similar commitments covering their entire supply chain — including third party suppliers — implemented and enforced through high-level leadership that engages with wider industry schemes.

    • Partial
      0.5 / 1
      Source

      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
      Source

      3. High-level position of responsibility for sustainability?

      Corporate Manager for Environment, Communities, Health and Safety

    • n/a
      -
      No source

      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

    • n/a
      -
      No source

      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
      Source

      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
      Source

      7. Sustainability report published within last two years?

      2,018

    • Yes
      1 / 1
      Source

      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
      Source

      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%
    • Companies should publicly report figures on their total landbank and details of different areas under their management. They should also disclose maps of their forest management units and provide forest management plans, as well as details on mills.

    • Yes
      1 / 1
      Source

      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)

    • n/a
      -
      No source

      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
      Source

      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
      Source

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

      86,145 - Figure represents unplanted areas in Chile only

    • Yes
      1 / 1
      Source

      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
      Source

      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
      Source

      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

    • n/a
      -
      No source

      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

    • n/a
      -
      No source

      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

    • n/a
      -
      No source

      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
      Source

      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
      Source

      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
      Source

      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
      Source

      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
      Source

      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
      Source

      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%
    • Companies should commit to address deforestation and to set aside areas for conservation. They should report on any activities to manage or restore habitat in their conservation areas, or monitor deforestation in their supply chains. They should also provide evidence of biodiversity conservation and species or habitat management.

    • Yes
      1 / 1
      Source

      36. Commitment to zero conversion of natural forest?

    • Partial
      0.5 / 1
      Source

      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

    • n/a
      -
      No source

      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
      Source

      42. Commitment to biodiversity conservation?

    • Yes
      1 / 1
      Source

      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
      Source

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

    • Yes
      1 / 1
      Source

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

    • n/a
      -
      No source

      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
      Source

      47. Commitment not to use genetically modified organisms?

  • HCV, HCS and impact assessments HCV, HCS and impact assessments 4 / 8 50%
    • Companies should commit to the High Conservation Value (HCV) and High Carbon Stock (HCS) approaches, and to conduct social and environmental impact assessments (SEIA). They should develop and publish summaries of assessments and monitoring and management plans.

    • Yes
      1 / 1
      Source

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

    • Partial
      0.5 / 1
      Source

      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)

    • n/a
      -
      No source

      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
      Source

      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
      Source

      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
      Source

      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
      Source

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

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

    • n/a
      -
      No source

      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

  • Water, chemical and waste management Water, chemical and waste management 4 / 13 30.8%
    • Companies should commit to protect peatland and undertake best management practices for soils and peat, as well as commit to reduced impact logging. They should also have policies on zero burning and to reduce their greenhouse gas (GHG) emissions. Companies should report their GHG emissions, as well as details on any fires that occurred in or around their estates, along with evidence for managing and monitoring fires.

    • 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
      Source

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

    • Yes
      1 / 1
      Source

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

    • Partial
      0.5 / 1
      Source

      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
      Source

      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
      Source

      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
      Source

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

      Lists chemical usage in Kg/ADt for its pulp business

  • Soils, fire and GHGs Soils, fire and GHGs 7 / 13 53.8%
    • Companies should commit to managing water use and water quality, providing evidence through time-bound reduction plans, policies on toxic chemical use, waste management and treatment of wastewater and mill effluents.

    • Yes
      1 / 1
      Source

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

    • n/a
      -
      No source

      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
      Source

      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
      Source

      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
      Source

      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
      Source

      66. Evidence of management and monitoring fires?

    • Yes
      1 / 1
      Source

      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
      Source

      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
      Source

      71. Methodology used to calculate GHG emissions?

      GHG Protocol for scopes 1, 2 and 3

  • Community, land and labour rights Community, land and labour rights 13 / 22 59.1%
    • Companies should commit to respect human rights, including those of indigenous peoples and local communities, and free, prior and informed consent (FPIC). Companies should respect the rights of workers, report relevant workforce data, and address with health and safety issues.

    • Yes
      1 / 1
      Source

      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
      Source

      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
      Source

      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
      Source

      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
      Source

      92. Examples of local stakeholder engagement to prevent conflicts?

    • Yes
      1 / 1
      Source

      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
      Source

      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

    • n/a
      -
      No source

      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
      Source

      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
      Source

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

    • n/a
      -
      No source

      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
      Source

      101. Percentage or number of temporary employees?

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

    • Yes
      1 / 1
      Source

      102. Percentage or number of women employees?

      1,857 (12%)

    • Partial
      0.5 / 1
      Source

      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
      Source

      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
      Source

      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
      Source

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

      2 - Data is for 2018

    • Partial
      0.5 / 1
      Source

      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%
    • Companies should be certified by credible certification standards, or have time-bound commitments to achieve 100% certification of forest management units. They should also ensure that their supply is verified as being in legal compliance and commit to sourcing certified wood/wood fibre.

    • 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
      Source

      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
      Source

      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
      Source

      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
      Source

      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%
    • Companies should report details of any programmes or schemes to support outgrower scheme smallholders, as well as criteria to assess suppliers on compliance with company policies, and in what cases suppliers should be suspended or excluded due to non-compliance.

    • Yes
      1 / 1
      Source

      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
      Source

      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
      Source

      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
      Source

      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%
    • Companies should operate in an ethical manner at all levels, providing accessible channels and clear procedures for both employees and external stakeholders to raise any grievance or complaint with the company, as well as allowing for whistleblowing.

    • Yes
      1 / 1
      Source

      125. Commitment to ethical conduct and prohibition of corruption?

    • n/a
      -
      No source

      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?

    • n/a
      -
      No source

      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
      Source

      129. Whistleblowing procedure?

    • Yes
      1 / 1
      Source

      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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