Klabin SA

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

2. Sustainability policy or commitment applies to all sourcing?

3. High-level position of responsibility for sustainability?

Environment and Sustainability corporate manager. The company also has a Sustainability Committee, Sustainability Commission, Sustainability and Communication Department, and a working group on impacts of climate change. The Sustainability Committee is comprised of Directors and one external member

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

Industrial Technology, Innovation, Sustainability and Pulp Business Officer

5. Percentage or number of women board members?

18% - Data as of 2017

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

12% - Data as of 2017

7. Sustainability report published within last two years?

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

UNGC, CDP, GRI, the Brazilian Pact for the Eradication of Slave Labor, the Brazilian National Pact Against Corruption

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

The company partners with the Association for the Preservation of the Environment and of Human Life (Apremavi), providing guidance on sustainable use of land, encouraging recovery of native forest remnants and responsible forestry, among others

10. Climate risks assessment available?

11. Natural capital assessment available?

12. Lists countries and operations?

The company has 18 industrial units (17 in eight Brazilian states and one in Argentina). Its headquarters are located in Sao Paulo city

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

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

14. Total area of forest plantation (ha)?

245,000 - Data as of 2018.

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

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

23,455 - Data more than two years old

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

19,852 - Data as of 2017

18. Area of Intact Forest Landscape (ha)?

19. Number of Forest Management Units (FMUs)?

3

20. Maps of forest management units (FMUs)?

The company only publishes static maps of its FMUs in the Forest Management Plans

21. Forest management plans available for all FMUs?

The company provides public summaries of three forest management plans: Parana, Santa Catarina and Sao Pablo. These represent all areas with forestry operations. Forest management plans are also provided within FSC reports

22. Monitoring of forest management plan implementation?

Summaries of Forest Management Plan monitoring are made publicly available via the FSC database. Full points have therefore been awarded for this indicator on the basis of the company's FSC certified landbank, which stands at 485,909 ha (100% of total operational area)

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

26. Number of company owned pulp and paper mills?

18 - 17 mills in Brazil and one mill in Argentina

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

28. Number of company owned sawmills?

This indicator is disabled as the company has informed ZSL that it doesn't own sawmills

29. Maps or addresses of company owned sawmills?

This indicator is disabled as the company has informed ZSL that it doesn't own sawmills

30. Number of supplier mills?

This indicator is disabled as the company has informed ZSL that it does not source pulp from other mills

31. Maps or addresses of supplier mills?

This indicator is disabled as the company has informed ZSL that it does not source pulp from other mills

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

The company has FSC CoC certification and it commits to follow Controlled Wood criteria and processes for non-certified raw materials

33. Procedures to trace raw materials to FMU level?

The company has FSC CoC certification and it commits to follow Controlled Wood criteria and processes for non-certified raw materials

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

100% - The company states that all wood suppliers are traceable and audited based on Controlled Wood and Chain of Custody criteria including field visits

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

100% - The company states that all wood suppliers are traceable and audited based on Controlled Wood and Chain of Custody criteria including field visits

36. Commitment to zero conversion of natural forest?

FSC Principles and Criteria (FSC-POL-01-004 V2-0 EN) require that conversion to plantations or non-forest land uses shall not occur, except in circumstances where there are clear, substantial, additional, secure, long-term conservation benefits. Full points have therefore been awarded for this indicator on the basis of the company's FSC certified landbank, which stands at 485,909 ha (100% of total operational area)

37. Zero conversion commitment applies to all sourcing?

The company states that it only sources wood that is either FSC certified or comply with FSC Controlled Wood criteria which requires that wood is not from "natural forest that has been converted into non-forest use or plantation forests"

38. Commitment to minimise the impact of logging roads?

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

39. Commitment to protect forest areas from illegal activities?

FSC Principles and Criteria (FSC-POL-01-004 V2-0 EN) require that forests are protected from illegal harvesting, settlement and other unauthorized activities. Full points have therefore been awarded for this indicator on the basis of the company's FSC certified landbank, which stands at 485,909 ha (100% of total operational area)

40. 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 485,909 ha (100% of total operational area)

41. Amount of deforestation recorded?

42. Commitment to biodiversity conservation?

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

The company reports various examples including controlling invasive species and habitat restoration

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

Company refers to landscape management, multiple use forests and mosaic forest management, including ecological corridors.

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 has informed ZSL that it only produces wood/wood fibre from plantation forests

47. 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)

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

FSC Principles and Criteria (FSC-POL-01-004 V2-0 EN) require that assessments are conducted to determine the presence of High Conservation Values. Full points have therefore been awarded for this indicator on the basis of the company's FSC certified landbank, which stands at 485,909 ha (100% of total operational area)

49. HCV commitment applies to all sourcing?

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

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

51. High Conservation Value (HCV) assessments available?

HCV (AAVC) assessment summaries are available within the company's forest management plans

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

HCV (AAVC) management and monitoring summaries are available within the company's forest management plans

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

54. High Carbon Stock (HCS) assessments available?

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

FSC Principles and Criteria (FSC-POL-01-004 V2-0 EN) require assessment of environmental impacts and the incorporation of evaluations of social impact into management planning and operations. Full points have therefore been awarded for this indicator on the basis of the company's FSC certified landbank, which stands at 485,909 ha (100% of total operational area)

56. Social and environmental impact assessments (SEIAs) 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

58. Commitment to 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 485,909 ha (100% of total operational area)

59. Commitment to reduced impact logging?

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

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

This indicator is disabled as the company has informed ZSL that it doesn't have landbank on peat

61. Commitment on peatland planting applies to all sourcing?

This indicator is disabled as the company has informed ZSL that it doesn't have suppliers with landbank on peat

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

This indicator is disabled as the company has informed ZSL that it doesn't have landbank on peat

63. 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 485,909 ha (100% of total operational area)

64. Commitment to zero burning?

65. Commitment to zero burning applies to all sourcing?

66. Evidence of management and monitoring fires?

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

The company reports the area (hectares) burned in forest fires in its Parana forest management plan from 2012 to 2016. Equivalent information on other company controlled forest management units could not be identified

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

2,022 - The company has a target to reduce GHG intensity to 185 kg CO2/t product from 2018 to 2022

69. Progress towards reducing GHG emission intensity?

2,017 - The company report that their 2017 target of reaching 205 kg CO2eq/t product was achieved. The company has not yet reported progress towards their 2018-2022 goal

70. Report GHG emissions from land use change?

71. Methodology used to calculate GHG emissions?

Methodology of the Brazilian GHG Protocol Program. 2010 was used as the base year for calculations

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

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

The company reports BOD and COD figures for its Puma unit in 2017, but does not report figures for all of its operations

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

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

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

This indicator is disabled as the company has informed ZSL that it doesn't own sawmills

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

The company has a 2017 target to reduce water consumption by 5% between 2018-2022, however the target is not based on water use intensity

78. Progress towards commitment on water use intensity?

The company reports water consumption figures but does not report progress in terms of water use intensity. The company has not reported progress for its 2018-2022 goal and did not meet its 2017 target

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

The company has a commitment to reduce the consumption of chemical products, including eliminating elemental chlorine in pulp bleaching. Howeverm, this commitment is not time-bound

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

FSC Principles and Criteria (FSC-POL-01-004 V2-0 EN) require the adoption of environmentally friendly non-chemical methods of pest management and avoidance of the use of chemical pesticides and fertilisers. Full points have therefore been awarded for this indicator on the basis of the company's FSC certified landbank, which stands at 485,909 ha (100% of total operational area)

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

FSC Principles and Criteria prohibit the use of World Health Organization Type 1A and 1B and chlorinated hydrocarbon pesticides. Full points have therefore been awarded for this indicator on the basis of the company's FSC certified landbank, which stands at 485,909 ha (100% of total operational area)

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

FSC-STD-30-001 v1-0 8.1 prohibits the use of chemicals listed under the Stockholm Convention and Rotterdam Convention. Full points have therefore been awarded for this indicator on the basis of the company's FSC certified landbank, which stands at 485,909 ha (100% of total operational area)

83. Integrated Pest Management (IPM) approach?

For plantations FSC Principles and Criteria (FSC-POL-01-004 V2-0 EN) require that integrated pest management forms an essential part of the management plan, with primary reliance on prevention and biological control methods rather than chemical pesticides and fertilisers. Full points have therefore been awarded for this indicator on the basis of the company's FSC certified landbank, which stands at 485,909 ha (100% of total operational area)

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

Data on chemical usage per hectare is only available for some of the company's FMUs

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

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

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

88. Commitment to respect legal and customary property rights?

FSC Principles and Criteria (FSC-POL-01-004 V2-0 EN) require that legal and customary property rights are respected. Full points have therefore been awarded for this indicator on the basis of the company's FSC certified landbank, which stands at 485,909 ha (100% of total operational area)

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

FSC Principles and Criteria (FSC-POL-01-004 V2-0 EN) require that free, prior, and informed consent is obtained. However, this commitment does not extend beyond the Forest Management Unit. Half points have therefore been awarded for this indicator on the basis of the company's FSC certified landbank, which stands at 485,909 ha (100% of total operational area)

90. FPIC commitment applies to independent suppliers?

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

92. Examples of local stakeholder engagement to prevent conflicts?

93. Details of process for addressing land conflicts available?

FSC Principles and Criteria (FSC-POL-01-004 V2-0 EN) require that appropriate mechanisms are employed to resolve disputes over tenure claims and use rights. However, details of the process used for resolving land conflicts are not recorded. Half points have therefore been awarded for this indicator on the basis of the company's FSC certified landbank, which stands at 485,909 ha (100% of total operational area)

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

The company is a signatory of the UN Women's Empowerment Principles which includes empowerment of women in the supply chains and communities

95. 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 485,909 ha (100% of total operational area)

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

97. Commitment to respect all workers' rights?

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)

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

101. Percentage or number of temporary employees?

0 - Fixed term or temporary basis employees. Data as of 2017

102. Percentage or number of women employees?

1,588 (10.8%) - Data as of 2017

103. Payment of minimum wage?

The company states that the lowest remuneration paid is 1.02 times higher than the national minimum wage

104. Reporting of salary by gender?

The company reports figures for the relationship between the lowest salary paid by the organization and the local minimum wage by gender

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

FSC Principles and Criteria (FSC-POL-01-004 V2-0 EN) require that all applicable laws and/or regulations covering health and safety of employees and their families are met or exceeded. FSC-POL-30-401:200 requires that the ILO Code of Practice on Safety and Health in Forestry Work is also applied. Full points have therefore been awarded for this indicator on the basis of the company's FSC certified landbank, which stands at 485,909 ha (100% of total operational area)

106. Time lost due to work-based injuries?

2.92 - Accident Frequency Rate. Data as of 2017

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

0 - Data as of 2017

108. Provision of personal protective equipment and related training?

FSC Principles and Criteria (FSC-POL-01-004 V2-0 EN) require the provision of PPE and related training. However, this commitment does not appear to extend beyond the Forest Management Unit. Half points have therefore been awarded for this indicator on the basis of the company's FSC certified landbank, which stands at 485,909 ha (100% of total operational area)

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

100% - Target already met

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

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

485,909 (100%) - FSC

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

80% - The company states that only 20% of its total supply comes from third-party sources, some of which is FSC certified. However it is not possible to calculate a percentage of certification for the external source and full points is awarded based on the 80% of supply coming from the company's own areas that are fully FSC certified

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

100% - Target already met

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

115. Percentage area (ha) FSC FM certified?

485,909 (100%)

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

The company states "as of December 2016 more than 25,000 hectares of properties had been certified" in partner-producer areas. However, it is unclear what percentage of wood/wood fibre supply is certified

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

80% - The company states that only 20% of its total supply comes from third-party sources, some of which is FSC certified. However it is not possible to calculate a percentage of certification for the external source and full points is awarded based on the 80% of supply coming from the company's own areas that are fully FSC certified

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

The indicator is disabled as the company has achieved 100% FSC certification

119. Programme to support outgrower scheme smallholders?

Forest Enterprise (technical assistance, including planning, first time ant combating, planting and one replanting if 5% or more seedlings do not survive); Small Producer Certification; Programa de Fomento Florestal (Forest Development Program)

120. Percentage of outgrower scheme smallholders involved in programme?

286 - The company reports that the Small Rural Producers Forest Certification Program has allowed 286 local producers to become certified

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

Matrix to evaluate "critical contracted suppliers in the industrial area" and the "risks they pose to the company, both financially and regarding sustainability"

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

This indicator is disabled as the company has informed ZSL that it does not trade wood/wood fibre

123. Suspension or exclusion criteria for suppliers?

The company has a policy for the supply of goods and services which clearly states the criteria its suppliers must abide by and the actions taken if found to be in non-compliance

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

925 - The company states it has approximately 5,000 active suppliers and "of this total, 925 suppliers are monitored by the Critical and Sustainability Matrix". It also states that all new suppliers hired in 2017, considered significant from an economic and financial point of view, were assessed taking into consideration their legal compliance with environmental aspects, labour practices and human rights

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

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

129. Whistleblowing procedure?

Whistleblowing and grievances are reported through an ombudsman, with anonymity guaranteed

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

The company's ombudsman is designed to receive complaints, allegations and suggestions from both internal and external stakeholders. In addition, the company also has the 'Speak with Klabin' channel in the forestry areas where it operates.

131. Details of grievances disclosed?

The company provides a summary of the grievances in 2017 and states their status