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Timber and pulp assessments

Veracel https://www.spott.org/timber-pulp/veracel/

Veracel was established in 1991, and is headquartered in Brazil where it operates. It is

Score:  38.9%

Latest update: 18 Jul 2018
Next scheduled: July 2019
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  • Parent company:
    Fibria (50%), Stora Enso (50%)
  • Landbank (timber/pulp):
    83,698 hectares
  • Thomson Reuters ticker:
    Private company
  • Bloomberg ticker:
    Private company
  • Activities:
    Timber production, pulpwood production
  • Locations:
    Brazil (Bahia, Minais Gerais)
  • Headquarters:
    Brazil
  • Website:
    http://www.veracel.com.br/en/
    Sustainability report (2016)

Company assessment: Veracel – 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: 38.9% 41 / 105.5
  • Sustainability policy and leadership Sustainability policy and leadership 3 / 6 50%

    • 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.

    • No
      0 / 1
      No 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?

    • No
      0 / 1
      No source

      3. High-level position of responsibility for sustainability?

    • Yes
      1 / 1
      Source

      4. Sustainability report published within last two years?

      2017 Sustainability Report available

    • Yes
      1 / 1
      Source

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

      FSC, GRI

    • Yes
      1 / 1
      Source

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

      WWF-Brazils' New Generation Plantations

  • Landbank, FMUs and mills Landbank, FMUs and mills 5.5 / 12 45.8%

    • 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 supplier pulp and paper mills.

    • Yes
      1 / 1
      Source

      7. Lists countries and operations?

      Brazil (plantations and production facilities)

    • n/a
      -
      No source

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

      This indicator is disabled as the company's reporting broadly suggests that it does not produce wood/wood fibre from natural forests. Please note that ZSL has been unable to confirm this

    • Yes
      1 / 1
      Source

      9. Total area of forest plantation (ha)?

      83,698 - Data as of 2016

    • Yes
      1 / 1
      Source

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

      21,251 - Area within Forest Producer Program. Data as of 2016

    • No
      0 / 1
      No source

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

    • Yes
      1 / 1
      Source

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

      96,401 - Data as of 2016

    • No
      0 / 1
      No source

      13. Area of Intact Forest Landscape (ha)?

    • No
      0 / 1
      No source

      14. Number of Forest Management Units (FMUs)?

    • No
      0 / 1
      No source

      15. Maps of forest management units (FMUs)?

    • No
      0 / 1
      No source

      16. Forest management plans available for all FMUs?

    • Partial
      0.5 / 1
      Source

      17. Monitoring of forest management plan implementation?

      There is evidence of monitoring in the FSC re-certification of 2018. However, this does not cover the company's entire operational area

    • Yes
      1 / 1
      Source

      18. Number of company owned pulp and paper mills?

      1

    • No
      0 / 1
      No 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 it is not applicable to this company.

    • n/a
      -
      No source

      21. Maps or addresses of company owned sawmills?

      This indicator is disabled as it is not applicable to this company.

  • Deforestation and biodiversity Deforestation and biodiversity 6 / 13 46.2%

    • 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's reporting broadly suggests that it does not produce wood/wood fibre from natural forests. Please note that ZSL has been unable to confirm this

    • No
      0 / 1
      No 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 198,005 ha (87% of total operational area)

    • Partial
      0.5 / 1
      Source

      27. Amount of deforestation recorded?

      0% - The company reports that monitoring by the BioAtlantic Institute indicates an increase in native vegetation of 9,500 ha from 2007 and 2013 in Veracel controlled areas or those of their Forest Producer Program. Data is more than two years old

    • No
      0 / 1
      No 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 198,005 ha (87% of total operational area)

    • Partial
      0.5 / 1
      Source

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

      The maintenance and restoration of appropriate landscape values, including environmental and economic resilience is covered by FSC Principles and Criteria (FSC-POL-01-004 V2-0 EN). However, this commitment does not extend to active engagement with stakeholders outside of 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 198,005 ha (87% of total operational area)

    • No
      0 / 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's reporting broadly suggests that it does not produce wood/wood fibre from natural forests. Please note that ZSL has been unable to confirm this

    • 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 XX ha (XX% of total operational area)

  • HCV, HCS and impact assessments HCV, HCS and impact assessments 1 / 9 11.1%

    • 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.

    • Partial
      0.5 / 1
      Source

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

      The company does not have a direct commitment to conduct HCV assessments across all of its operations. However, 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

    • 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?

    • No
      0 / 1
      No 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 1 / 13 7.7%

    • 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's reporting broadly suggests that it does not produce wood/wood fibre from natural forests. Please note that ZSL has been unable to confirm this

    • No
      0 / 1
      No source

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

    • No
      0 / 1
      No source

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

    • No
      0 / 1
      No source

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

    • Partial
      0.5 / 1
      Source

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

      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). However, specific provisions are not set out for peatland operations. Half points have therefore been awarded for this indicator on the basis of the company's FSC certified landbank, which stands at 198,005 ha (87% of total operational area)

    • 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?

    • Partial
      0.5 / 1
      Source

      54. Evidence of management and monitoring fires?

      The company only provides examples only for one part of its operations

    • No
      0 / 1
      No source

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

    • No
      0 / 1
      No source

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

    • No
      0 / 1
      No source

      57. Progress towards reducing GHG emission intensity?

    • No
      0 / 1
      No source

      58. Report GHG emissions from land use change?

    • No
      0 / 1
      No source

      59. Methodology used to calculate GHG emissions?

  • Water, chemical and waste management Water, chemical and waste management 2.5 / 12 20.8%

    • 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.

    • No
      0 / 1
      No source

      60. Time-bound commitment to improve water quality?

    • Partial
      0.5 / 1
      Source

      61. Progress towards commitment on water quality?

      BOD5 (kg/adt): 0.18 (2014), 0.23 (2015), 0.20 (2016). COD (kg/adt): 4.78 (2014), 5.00 (2015), 4.76 (2016). The company does not report a target

    • No
      0 / 1
      No 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 it is not applicable to this company.

    • 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?

      Total water taken by source – Industrial (m³/year): 28,584,492 (2014), 28,127,092 (2015), 27,517,225 (2016). Total water taken by source – Forestry (m³/year): 94,141 (2014), 111,342 (2015), 118,775 (2016). The company does not report a target

    • 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 it is not applicable to this company.

    • Partial
      0.5 / 1
      Source

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

      The company has a commitment to minimise the use of chemicals, but does not specify that it will limit the use of chemical pesticides or 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?

    • No
      0 / 1
      No source

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

  • Community, land and labour rights Community, land and labour rights 12 / 19.5 61.5%
    • 4 media reports

      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?

    • No
      0 / 1
      No 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 198,005 ha (87% of total operational area

    • No
      0 / 1
      No 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?

      3,307 - 755 employees and 2,552 third party workers. Data as of 2016

    • Yes
      1 / 1
      Source

      87. Percentage or number of temporary employees?

      2,552 (77%) - Data as of 2016

    • Yes
      1 / 1
      Source

      88. Percentage or number of women employees?

      287 - Employees and third party workers. Data as of 2016

    • Yes
      1 / 1
      Source

      89. Commitment to pay minimum wage?

      The company report the lowest wage paid by the company was BRL 930.00 in 2016, 9.46% higher than the local minimum wage. 12% of the workforce is paid the company's entry-level 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 commit to ensuring health and safety. No reference to the ILO Code of Practice on Safety and Health in Forestry Work could be identified

    • Yes
      1 / 1
      Source

      91. Time lost due to work-based injuries?

      0.4 - Number of accidents per million hours worked (Veracel and partners). Data as of 2016

    • Yes
      1 / 1
      Source

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

      0 - Including partners. Data as of 2016

    • Partial
      0.5 / 1
      Source

      93. Provision of personal protective equipment and related training?

      The company provides personal protective equipment to employees, but does not clearly state that they provide safety training and not clear that the commitment covers all employees

  • Certification standards Certification standards 3 / 10 30%

    • 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.

    • Yes
      1 / 1
      Source

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

      87% - Landbank with FSC FM certification

    • 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?

    • No
      0 / 1
      No source

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

    • Yes
      2 / 2
      Source

      98. Percentage area (ha) FSC FM certified?

      198,005 (87%)

    • 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?

      190,726 (84%) - It was not possible to calculate the extent to which PEFC certification covers the companies non-FSC certified landbank

  • 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.

    • Yes
      1 / 1
      Source

      101. Programme to support outgrower scheme smallholders?

      Forest Producer Program

    • Yes
      1 / 1
      Source

      102. Percentage of outgrower scheme smallholders involved in programme?

      93 - As of 2015, the companies Forest Producer Program comprised of 93 producers

    • No
      0 / 1
      Source

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

      Suppliers and providers are screened to identify whether they could cause adverse impacts on the environment, human rights, labour practices, and health and safety

    • No
      0 / 1
      No 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?

      100%

  • Governance and grievances Governance and grievances 4 / 6 66.7%
    • 1 media report

      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 Anonymous Communication Channel, but does not provide clear details of how whistleblowers are protected

    • 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 only reports broad details of the type of grievances received

Media monitor: Veracel

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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April 2018

Stora Enson omistaman selluyhtiön väitetään syyllistyneen maakaappauksiin Brasiliassa (The pulp company owned by Stora Enso is allegedly charged with land crashes in Brazil)

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November 2016

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January 2016

Is eco-certification the solution to forest destruction?

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August 2015

Väitös: Suomalaiset yhtiöt toimivat epäeettisesti Brasiliassa (Dissertation: Finnish companies operate unethically in Brazil)

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