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Timber and pulp assessments

Eldorado Brasil Celulose SA https://www.spott.org/timber-pulp/eldorado-brasil-celulose-sa/

Founded in 2005, Eldorado Brasil Celulose SA is engaged in pulpwood production, trading and distribution

Score:  51.7%

Latest update: 18 Jul 2018
Next scheduled: July 2019
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  • Parent company:
    J&F Investimentos S.A. (50.58%), CA Investment (Brazil) S.A. (49.42%)
  • Landbank (timber/pulp):
    224,197 hectares
  • Thomson Reuters ticker:
    Private company
  • Bloomberg ticker:
    Private company
  • Activities:
    Pulpwood production, trading and distribution
  • Locations:
    Brazil (Mato Grosso do Sul, Mato Grosso, São Paulo)
  • Headquarters:
    Brazil
  • Related companies:
    Eldorado has been bought by Paper Excellence in 2017, a subsidiary of Sinar Mas who is also the parent of Asia Pulp and Paper (APP).
  • Parent website:
    http://jfinvest.com.br/
  • Website:
    http://www.eldoradobrasil.com.br/
    Latest annual report (2017)|Sustainability report (2016)

Company assessment: Eldorado Brasil Celulose SA – July 2018

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.

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Assessment date:

Total: 51.7% 52.5 / 101.5
  • Sustainability policy and leadership Sustainability policy and leadership 4 / 6 66.7%

    • Companies should publish sustainability policies or similar covering their entire supply chain — including third party suppliers — implemented and enforced through high-level leadership that engages with wider industry schemes.

    • Yes
      1 / 1
      Source

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

    • No
      0 / 1
      No source

      2. Sustainability policy or commitment applies to direct and third-party suppliers?

    • Partial
      0.5 / 1
      Source

      3. High-level position of responsibility for sustainability?

      The company has a Sustainability and Social Responsibility Committee which is one of the Advisory Committees of the Board of Directors. However it is unclear what responsibilities this Committee has

    • Yes
      1 / 1
      Source

      4. Sustainability report published within last two years?

      2016

    • Partial
      0.5 / 1
      Source

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

      FSC member

    • Yes
      1 / 1
      Source

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

      Participation in various stakeholder groups (e.g. local WWF Forums; IPEF, Forestry Studies and Research Institute)

  • Landbank, FMUs and mills Landbank, FMUs and mills 8 / 11 72.7%

    • 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 supplier pulp and paper mills.

    • Yes
      1 / 1
      Source

      7. Lists countries and operations?

      Brazil (plantations, mill)

    • n/a
      -
      No source

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

      This indicator is disabled as the company does not produce wood/wood fibre from natural forests

    • Yes
      1 / 1
      Source

      9. Total area of forest plantation (ha)?

      224,197

    • Yes
      1 / 1
      Source

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

      102,494

    • No
      0 / 1
      No source

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

    • Partial
      0.5 / 1
      Source

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

      103,000 - The company only provides approximate figures

    • n/a
      -
      No source

      13. Area of Intact Forest Landscape (ha)?

      This indicator is disabled as the company has informed ZSL that it does not have Intact Forest Landscape within its landbank

    • No
      0 / 1
      Source

      14. Number of Forest Management Units (FMUs)?

      The company combines its farms into three production units and one FMU for certification purposes, however there are nine additional farms that are outside of the scope of FSC certification. Therefore, total number of FMUs cannot be established with high certainty using available sources

    • Partial
      0.5 / 1
      Source

      15. Maps of forest management units (FMUs)?

      0.5 - The company only provides names of farms and a static map

    • Yes
      1 / 1
      Source

      16. Forest management plans available for all FMUs?

    • Yes
      1 / 1
      Source

      17. Monitoring of forest management plan implementation?

    • Yes
      1 / 1
      Source

      18. Number of company owned pulp and paper mills?

      1 - The company is currently working on expanding the current mill (Vanguarda 2.0 project), but this is not yet operational

    • Yes
      1 / 1
      Source

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

    • n/a
      -
      No source

      20. Number of company owned sawmills?

      This indicator is disabled as the company has informed ZSL that it does not own sawmills

    • n/a
      -
      No source

      21. Maps or addresses of company owned sawmills?

      This indicator is disabled as the company has informed ZSL that it does not own sawmills

  • Deforestation and biodiversity Deforestation and biodiversity 9 / 13 69.2%

    • 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 species conservation and biodiversity protection.

    • No
      0 / 1
      No source

      22. Commitment to zero conversion of natural forest?

    • No
      0 / 1
      No source

      23. Zero conversion commitment applies to outgrower scheme and independent suppliers?

    • n/a
      -
      No source

      24. Commitment to minimise the impact of logging roads?

      This indicator is disabled as the company does not produce wood/wood fibre from natural forests

    • Yes
      1 / 1
      Source

      25. Commitment to protect forest areas from illegal activities?

    • Yes
      1 / 1
      Source

      26. Evidence of monitoring deforestation?

      The monitoring of forest extent and condition is covered by FSC Principles and Criteria (FSC-POL-01-004 V2-0 EN). Full points have therefore been awarded for this indicator on the basis of the company's FSC certified landbank, which stands at 357,324.80 ha (it is unclear what percentage of the total operational area this accounts for)

    • No
      0 / 1
      No source

      27. Amount of deforestation recorded?

    • Yes
      1 / 1
      Source

      28. Commitment to biodiversity conservation?

    • Yes
      1 / 1
      Source

      29. Commitment to set aside areas for conservation?

    • Yes
      1 / 1
      Source

      30. Examples of habitat management and/or habitat restoration of set-aside areas?

      The management and restoration of habitat is covered by FSC Principles and Criteria (FSC-POL-01-004 V2-0 EN). Full points have therefore been awarded for this indicator on the basis of the company's FSC certified landbank, which stands at 357,324.80 ha (it is unclear what percentage of the total operational area this accounts for)

    • Yes
      1 / 1
      Source

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

    • Yes
      1 / 1
      Source

      32. Commitment to protect species of conservation concern, referencing international or national system of species classification?

    • n/a
      -
      No source

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

      This indicator is disabled as the company does not produce wood/wood fibre from natural forests

    • Yes
      1 / 1
      Source

      34. Commitment not to use genetically modified organisms?

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

    • No
      0 / 1
      No source

      35. Commitment to only use alien species where impacts can be controlled?

    • Yes
      1 / 1
      Source

      36. Examples of species conservation activities?

      The protection of rare, threatened and endangered species and their habitats, and the maintenance of ecological functions and values is covered by FSC Principles and Criteria (FSC-POL-01-004 V2-0 EN). Full points have therefore been awarded for this indicator on the basis of the company's FSC certified landbank, which stands at 357,324.80 ha (it is unclear what percentage of the total operational area this accounts for)

  • HCV, HCS and impact assessments HCV, HCS and impact assessments 2.5 / 9 27.8%

    • 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 monitoring and management plans, and provide evidence through SEIA, HCV and HCS assessments, typically published in summary form due to the sensitive nature of certain sites.

    • Yes
      1 / 1
      Source

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

    • Partial
      0.5 / 1
      Source

      38. HCV commitment applies to outgrower scheme and independent suppliers?

      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). For this half points are awarded

    • No
      0 / 1
      No source

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

    • No
      0 / 1
      No source

      40. High Conservation Value (HCV) assessments available?

    • No
      0 / 1
      No source

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

    • No
      0 / 1
      No source

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

    • No
      0 / 1
      No source

      43. High Carbon Stock (HCS) assessments available?

    • Yes
      1 / 1
      Source

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

    • No
      0 / 1
      No source

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

  • Soils, fire and GHG emissions Soils, fire and GHG emissions 3.5 / 10 35%
    • 1 media report

      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 any fires that occurred in or around their estates, along with plans for managing and monitoring fires.

    • No
      0 / 1
      No source

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

    • n/a
      -
      No source

      47. Commitment to reduced impact logging?

      This indicator is disabled as the company does not produce wood/wood fibre from natural forests

    • n/a
      -
      No source

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

      This indicator is disabled as the company has informed ZSL that it does not have landbank on peat

    • n/a
      -
      No source

      49. Commitment on peatland planting applies to outgrower scheme and independent suppliers?

      This indicator is disabled as the company has informed ZSL that it does not have suppliers with landbank on peat

    • n/a
      -
      No source

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

      This indicator is disabled as the company has informed ZSL that it does not have landbank on peat

    • Yes
      1 / 1
      Source

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

      The company has confirmed that it does not have operations on peatland. The conservation of soils, including control of erosion and minimising damage during operations is covered by FSC Principles and Criteria (FSC-POL-01-004 V2-0 EN). Full points have therefore been awarded for this indicator on the basis of the company's FSC certified landbank, which stands at 357,324.80 ha (it is unclear what percentage of the total operational area this accounts for)

    • No
      0 / 1
      No source

      52. Commitment to zero burning?

    • No
      0 / 1
      No source

      53. Commitment to zero burning applies to outgrower scheme and independent suppliers?

    • Yes
      1 / 1
      Source

      54. Evidence of management and monitoring fires?

    • No
      0 / 1
      No source

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

    • No
      0 / 1
      Source

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

      The company only has a vague commitment to reduce GHG emissions

    • Partial
      0.5 / 1
      Source

      57. Progress towards reducing GHG emission intensity?

      0.2 - Company reports progress towards reducing GHG intensity but no target in place

    • No
      0 / 1
      No source

      58. Report GHG emissions from land use change?

    • Yes
      1 / 1
      Source

      59. Methodology used to calculate GHG emissions?

      Brazilian GHG Protocol

  • Water, chemical and waste management Water, chemical and waste management 3 / 12 25%

    • 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.

    • No
      0 / 1
      No source

      60. Time-bound commitment to improve water quality?

    • No
      0 / 1
      No source

      61. Progress towards commitment on water quality?

    • Yes
      1 / 1
      Source

      62. Protection of natural waterways through buffer zones?

    • Yes
      1 / 1
      Source

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

    • n/a
      -
      No source

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

      This indicator is disabled as the company has informed ZSL that it does not own sawmills

    • No
      0 / 1
      No source

      65. Time-bound commitment to improve water use?

    • Partial
      0.5 / 1
      Source

      66. Progress towards commitment on water use?

      43,532,200 - The company reports progress in the amount of water withdrawn (m3/year) in 2016 compared to 2015 and 2014. However there is no time-bound commitment in place to reduce water use

    • No
      0 / 1
      No source

      67. mmitment to eliminate chlorine and chlorine compounds for bleaching?

    • n/a
      -
      No source

      68. Evidence of minimising or recycling solid waste produced during sawmilling processes?

      This indicator is disabled as the company has informed ZSL that it does not own sawmills

    • No
      0 / 1
      No source

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

    • No
      0 / 1
      No source

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

    • No
      0 / 1
      No source

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

    • No
      0 / 1
      No source

      72. Integrated Pest Management (IPM) approach?

    • Partial
      0.5 / 1
      Source

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

      Figures for pesticides and herbicides used can be found in 2017 FSC Audit Report, however this report does not cover all the company's operations (i.e. some FMUs are excluded from certification)

  • Community, land and labour rights Community, land and labour rights 14.5 / 19.5 74.4%

    • Companies should commit to respect human rights, including those of indigenous peoples and local communities, consulted with free, prior and informed consent (FPIC). Companies should respect the rights of workers, report relevant workforce data, and comply with health and safety legislation.

    • Yes
      1 / 1
      Source

      74. Commitment to human rights, referencing the UN Declaration of 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

      75. Commitment to human rights applies to outgrower scheme and independent suppliers?

      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

      76. 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

      77. 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

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

    • No
      0 / 1
      No source

      79. FPIC commitment applies to independent suppliers?

    • No
      0 / 1
      No source

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

    • No
      0 / 1
      No source

      81. Details of process for addressing land conflicts available?

    • Yes
      1 / 1
      Source

      82. Commitment to mitigate impacts on food security?

    • Yes
      1 / 1
      Source

      83. Commitment to provide essential community services and facilities?

      FSC Principles and Criteria (FSC-POL-01-004 V2-0 EN) require certified organisations to contribute to the social and economic development of local communities. Full points have therefore been awarded for this indicator on the basis of the company's FSC certified landbank, which stands at 357,324.80 ha (it is unclear what percentage of the total operational area this accounts for)

    • Yes
      1 / 1
      Source

      84. Commitment to respect all workers' rights?

    • Yes
      1 / 1
      Source

      85. 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
      0.5 / 0.5
      Source

      86. Total number of employees?

      4,790

    • Yes
      1 / 1
      Source

      87. Percentage or number of temporary employees?

      112 (2%)

    • Yes
      1 / 1
      Source

      88. Percentage or number of women employees?

      782 (16%)

    • Yes
      1 / 1
      Source

      89. Commitment to pay minimum wage?

    • Partial
      0.5 / 1
      Source

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

      The company commits to address occupational health and safety but no reference to the ILO Code of Practice on Safety and Health in Forestry Work given

    • Yes
      1 / 1
      Source

      91. Time lost due to work-based injuries?

      620 - Figure relates to number of days lost due to occupational injuries

    • Yes
      1 / 1
      Source

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

      0

    • Yes
      1 / 1
      Source

      93. Provision of personal protective equipment and related training?

  • Certification standards Certification standards 1 / 10 10%

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

    • No
      0 / 1
      No source

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

      The company states that majority of its area is certified by FSC and PEFC (Cerflor) however the figures reported by the company do not make it possible to clearly calculate the percentage area certified, thus, verified as being in legal compliance

    • No
      0 / 1
      No source

      95. Percentage wood/wood fibre supply verified as being in legal compliance by a third party?

    • No
      0 / 1
      No source

      96. Time-bound plan for achieving 100% FSC FM certification of FMUs?

    • Yes
      1 / 1
      Source

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

    • No
      0 / 2
      Source

      98. Percentage area (ha) FSC FM certified?

      357,325 - The company states that majority of its area is certified by FSC. However, the figures reported by the company do not make it possible to clearly calculate the percentage area certified

    • No
      0 / 2
      No source

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

    • No
      0 / 2
      Source

      100. Percentage area (ha) PEFC certified?

      348,259 - The company states that majority of its area is certified by Cerflor. However, the figures reported by the company do not make it possible to clearly calculate the percentage area certified

  • Smallholders and suppliers Smallholders and suppliers 3 / 5 60%

    • Companies should report details of any programmes or schemes to support both schemed and independent 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.

    • No
      0 / 1
      No source

      101. Programme to support outgrower scheme smallholders?

    • No
      0 / 1
      No source

      102. Percentage of outgrower scheme smallholders involved in programme?

    • Yes
      1 / 1
      Source

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

      Electronic analysis of documents of potential partners to demonstrate their compliance with labor, human rights and environmental legislation. Also financial risk analysis

    • Yes
      1 / 1
      Source

      104. Suspension or exclusion criteria for suppliers?

    • Yes
      1 / 1
      Source

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

      172 - Figure represents new suppliers in 2016 that were assessed by the company. Additionally, the company states that 3,000 suppliers were assessed in 2015

  • Governance and grievances Governance and grievances 4 / 6 66.7%
    • 2 media reports

      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

      106. Commitment to ethical conduct and prohibition of corruption?

    • Partial
      0.5 / 1
      Source

      107. Whistleblowing procedure?

      The company has an external Ombudsman channel which allows for anonymity. However, no clear description of the steps taken could be identified

    • Yes
      1 / 1
      Source

      108. Own grievance or complaints system?

    • Yes
      1 / 1
      Source

      109. Grievance or complaints system is accessible to internal and external stakeholders?

    • Partial
      0.5 / 2
      Source

      110. Details of grievances disclosed?

      The company provides a summary on the grievances in 2016 and state their status

Media monitor: Eldorado Brasil Celulose SA

SPOTT monitors global media sources for coverage of assessed companies. The media monitor gathers reports about specific activities related to the assessment indicator categories. ZSL does not assess the validity of media coverage, but users can explore the media monitor to provide context on implementation, and infer risks associated with reported operations on the ground.

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