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Veracel

Timber and pulp assessment
Total score: 62.5%
  • Latest update: July 2019
  • Next scheduled: July 2020

Company assessment: Veracel – July 2019

Assessment date:

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Total: 62.5% 70 / 112
  • Sustainability policy and leadership Sustainability policy and leadership
    5 / 9 55.6%
    1 media report
    • Partial
      0.5 / 1
      Source

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

      The company only has a general Management Policy that covers some aspects of sustainability

    • No
      0 / 1

      2. Sustainability policy or commitment applies to all sourcing?

    • Yes
      1 / 1
      Source

      3. High-level position of responsibility for sustainability?

      Sustainability Manager

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

      This indicator is disabled as the company is not publicly listed

    • 5. Percentage or number of women board members?

      This indicator is disabled as the company is not publicly listed

    • Partial
      0.5 / 1
      Source

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

      1 (9%) - The company reports that there is one woman out of 11 employees in the management category. However, the company mentions 12 executive employees. It is therefore unclear whether 1 / 11 covers the whole management team

    • Yes
      1 / 1
      Source

      7. Sustainability report published within last two years?

      2018 Sustainability Report available

    • Yes
      1 / 1
      Source

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

      FSC, GRI

    • Yes
      1 / 1
      Source

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

      WWF-Brazils' New Generation Plantations

    • No
      0 / 1

      10. Climate risks assessment available?

    • No
      0 / 1

      11. Natural capital assessment available?

  • Landbank, mills and traceability Landbank, mills and traceability
    16 / 17 94.1%
    3 media reports
    • Yes
      1 / 1
      Source

      12. Lists countries and operations?

      Brazil (plantations and production facilities)

    • 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

    • Yes
      1 / 1
      Source

      14. Total area of forest plantation (ha)?

      83,698 - Data as of 2017

    • Yes
      1 / 1
      Source

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

      21,251 - Area within Forest Producer Program. Data as of 2017

    • Yes
      1 / 1
      Source

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

      4% - Company states 4% of its licenced area is available for plantation

    • Yes
      1 / 1
      Source

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

      96,401 - Data as of 2017

    • 18. Area of Intact Forest Landscape (ha)?

      This indicator is disabled as the company has informed ZSL that it doesn't have any intact forest landscapes within its landbank

    • Yes
      1 / 1
      Source

      19. Number of Forest Management Units (FMUs)?

      1

    • No
      0 / 1

      20. Maps of forest management units (FMUs)?

    • Yes
      1 / 1
      Source

      21. Forest management plans available for all FMUs?

    • Yes
      1 / 1
      Source

      22. Monitoring of forest management plan implementation?

    • 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's reporting broadly suggests that it doesn't operate in a geography currently covered by Open Timber Portal. Please note that ZSL has been unable to confirm this

    • 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's reporting broadly suggests that it doesn't operate in a geography currently covered by Open Timber Portal. Please note that ZSL has been unable to confirm this

    • 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's reporting broadly suggests that it doesn't operate in a geography currently covered by Open Timber Portal. Please note that ZSL has been unable to confirm this

    • Yes
      1 / 1
      Source

      26. Number of company owned pulp and paper mills?

      1

    • Yes
      1 / 1
      Source

      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 doesn't have mill suppliers

    • 31. Maps or addresses of supplier mills?

      This indicator is disabled as the company has informed ZSL that it doesn't have mill suppliers

    • Yes
      1 / 1
      Source

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

      The company has FSC/Cerflor CoC certification and states to use the FSC/Cerflor due diligence system and controlled wood criteria for non-certified supply to trace all raw materials to origin

    • Yes
      1 / 1
      Source

      33. Procedures to trace raw materials to FMU level?

      The company has FSC/Cerflor CoC certification and states to use the FSC/Cerflor due diligence system and controlled wood criteria for non-certified supply to trace all raw materials to origin

    • Yes
      2 / 2
      Source

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

      100% - The company has FSC/Cerflor CoC certification and states to use the FSC/Cerflor due diligence system and controlled wood criteria for non-certified supply to trace all raw materials to origin

    • Yes
      2 / 2
      Source

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

      100% - The company has FSC/Cerflor CoC certification and states to use the FSC/Cerflor due diligence system and controlled wood criteria for non-certified supply to trace all raw materials to origin

  • Deforestation and biodiversity Deforestation and biodiversity
    7 / 10 70%
    4 media reports
    • No
      0 / 1

      36. Commitment to zero conversion of natural forest?

    • Yes
      1 / 1
      Source

      37. Zero conversion commitment applies to all sourcing?

      The company states in its Purchase Policy that no wood will be sourced 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

    • No
      0 / 1

      39. Commitment to protect forest areas from illegal activities?

    • Yes
      1 / 1
      Source

      40. Evidence of monitoring deforestation?

      The company monitors vegetation cover and land use on its area via an initiative by The BioAtlântic Institute (IBIO) which is updated every three years. Monitoring includes satellite images and on-site verifications

    • No
      0 / 1
      Source

      41. Amount of deforestation recorded?

      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. No point awarded as the data is more than two years old

    • Yes
      1 / 1
      Source

      42. Commitment to biodiversity conservation?

    • Yes
      1 / 1
      Source

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

    • 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?

    • 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

    • Yes
      1 / 1
      Source

      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)

  • HCV, HCS and impact assessments HCV, HCS and impact assessments
    2.5 / 8 31.3%
    1 media report
    • Partial
      0.5 / 1
      Source

      48. 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

    • Yes
      1 / 1
      Source

      49. HCV commitment applies to all sourcing?

      The company states in its Purchase Policy that no wood will be sourced from "forest areas where high conservation values ??are threatened by management activity"

    • 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

    • No
      0 / 1

      51. High Conservation Value (HCV) assessments available?

    • No
      0 / 1

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

    • No
      0 / 1

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

    • No
      0 / 1

      54. High Carbon Stock (HCS) assessments available?

    • Yes
      1 / 1
      Source

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

    • No
      0 / 1

      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's reporting broadly suggests that it doesn't operate in a geography currently covered by Open Timber Portal. Please note that ZSL has been unable to confirm this

  • Soils, fire and GHGs Soils, fire and GHGs
    4 / 10 40%
    1 media report
    • Yes
      1 / 1
      Source

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

    • 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

    • Yes
      1 / 1
      Source

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

    • Yes
      1 / 1
      Source

      64. Commitment to zero burning?

    • No
      0 / 1

      65. Commitment to zero burning applies to all sourcing?

    • Yes
      1 / 1
      Source

      66. Evidence of management and monitoring fires?

    • No
      0 / 1

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

    • No
      0 / 1

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

    • No
      0 / 1

      69. Progress towards reducing GHG emission intensity?

    • No
      0 / 1

      70. Report GHG emissions from land use change?

    • No
      0 / 1

      71. Methodology used to calculate GHG emissions?

  • Water, chemical and waste management Water, chemical and waste management
    7 / 12 58.3%
    4 media reports
    • Partial
      0.5 / 1
      Source

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

      The company states that "water quality had met the Conama’s requirements (Conama Resolution 357, of March 17, 2005, Class II)". However as this resolution only refers to BOD and not to COD only partial points can be awarded

    • Partial
      0.5 / 1
      Source

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

      BOD5 (kg/adt): 0.18 (2014), 0.23 (2015), 0.20 (2016), 0.30 (2017). COD (kg/adt): 4.78 (2014), 5.00 (2015), 4.76 (2016), 4.40 (2017). The company does not report on what the target for COD is. BOD is covered by the Conama Resolution which the company meets

    • 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?

    • 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

    • Yes
      1 / 1
      Source

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

      23 - The company commits to reduce water use intensity to below 23 m3/t of pulp by 2020

    • Partial
      0.5 / 1
      Source

      78. Progress towards commitment on water use intensity?

      25 - The company reports water intensity figures

    • No
      0 / 1

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

    • Partial
      0.5 / 1
      Source

      80. 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

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

    • No
      0 / 1

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

    • Yes
      1 / 1
      Source

      83. Integrated Pest Management (IPM) approach?

    • Yes
      1 / 1
      Source

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

  • Community, land and labour rights Community, land and labour rights
    14 / 21 66.7%
    7 media reports
    • 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?

    • Yes
      1 / 1
      Source

      86. Commitment to human rights applies to all sourcing?

    • 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

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

    • No
      0 / 1

      90. FPIC commitment applies to independent suppliers?

    • No
      0 / 1

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

    • Yes
      1 / 1
      Source

      92. Examples of local stakeholder engagement to prevent conflicts?

    • No
      0 / 1

      93. Details of process for addressing land conflicts available?

    • No
      0 / 1

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

    • Yes
      1 / 1
      Source

      95. Commitment to provide essential community services and facilities?

    • 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's reporting broadly suggests that it doesn't operate in a geography currently covered by Open Timber Portal. Please note that ZSL has been unable to confirm this

    • Yes
      1 / 1
      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?

    • 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's reporting broadly suggests that it doesn't operate in a geography currently covered by Open Timber Portal. Please note that ZSL has been unable to confirm this

    • 101. Percentage or number of temporary employees?

      This indicator is disabled as the company has informed ZSL that it doesn't have temporary employees

    • Yes
      1 / 1
      Source

      102. Percentage or number of women employees?

      208 (6%) - Data as of 2017

    • Yes
      1 / 1
      Source

      103. Payment of minimum wage?

      The company reports the lowest wage paid by the company was BRL R$ 1050.00 in 2017, 12.05% higher than the local minimum wage. 14.55% of the workforce is paid the company's entry-level wage

    • No
      0 / 1

      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 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

      106. Time lost due to work-based injuries?

      0.36 - Number of accidents per million hours worked (Veracel and partners). Data as of 2017

    • Yes
      1 / 1
      Source

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

      0 - Including partners. Data as of 2017

    • Yes
      1 / 1
      Source

      108. Provision of personal protective equipment and related training?

  • Certification standards Certification standards
    6 / 14 42.9%
    1 media report
    • No
      0 / 1

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

    • No
      0 / 1
      Source

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

      The company commits to only source wood that is either FSC or Cerflor certified or fulfil the FSC Controlled Wood however it is unclear if the non-FSC/PEFC certified part of the wood supply is FSC CW certified or the company checks the criteria itself, therefore not externally verified by a third party

    • Yes
      1 / 1
      Source

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

      197,208 (86.8%) - 197,208 ha are FSC certified, out of a total reported landbank of 227,172 ha

    • Partial
      0 / 1
      Source

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

      16.1% - 20% of the company's supply comes from outgrower scheme suppliers among which 80.6% are certified. It is unclear how much of the 80% remaining supply is certified

    • No
      0 / 1
      Source

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

    • Yes
      1 / 1
      Source

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

    • Yes
      2 / 2
      Source

      115. Percentage area (ha) FSC FM certified?

      197,208 (86.8%) - 197,208 ha are FSC certified, out of a total reported landbank of 227,172 ha

    • Yes
      2 / 2
      Source

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

      16,589 (80.6%) - The company has contracts with forest producers covering 20,585 ha, out of which 16,589 ha are FSC certified

    • No
      0 / 2

      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)?

      190,726 - 190,726 ha are PEFC certified which also covered by FSC certification. Therefore no land is solely PEFC certified

  • Smallholders and suppliers Smallholders and suppliers
    5 / 5 100%
    • Yes
      1 / 1
      Source

      119. Programme to support outgrower scheme smallholders?

      Forest Producer Program

    • Yes
      1 / 1
      Source

      120. Percentage of outgrower scheme smallholders involved in programme?

      96 - As of 2017, the company's Forest Producer Program comprised of 96 producers

    • 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 audits its suppliers through an Integrated Monitoring Platform that reviews compliance with the company's Supplier Code of Conduct. The company also uses external consultancies to audit suppliers on health and safety

    • 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

    • Yes
      1 / 1
      Source

      123. Suspension or exclusion criteria for suppliers?

    • Yes
      1 / 1
      Source

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

      100%

  • Governance and grievances Governance and grievances
    3.5 / 6 58.3%
    2 media reports
    • Yes
      1 / 1
      Source

      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's reporting broadly suggests that it doesn't operate in a geography currently covered by Open Timber Portal. Please note that ZSL has been unable to confirm this

    • No
      0 / 1

      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's reporting broadly suggests that it doesn't operate in a geography currently covered by Open Timber Portal. Please note that ZSL has been unable to confirm this

    • Yes
      1 / 1
      Source

      129. Whistleblowing procedure?

    • Yes
      1 / 1
      Source

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

      The company has an Anonymous Communication Channel

    • Partial
      0.5 / 2
      Source

      131. Details of grievances disclosed?

      The company only reports broad details of grievances received in relation to discrimination

Media monitor: Veracel

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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December 2019

Gigante nórdica de celulose é acusada de invadir terras e desmatar a Mata Atlântica no sul da Bahia (Nordic pulp giant accused of invading land and clearing Atlantic Forest in southern Bahia)

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September 2019

Stora Enso ei näe ongelmaa Brasilian sellun tuonnissa – yhtiön puuviljelmät eivät tuhoa sademetsiä (Stora Enso sees no problem with Brazilian pulp imports - company plantations do not destroy rainforests)

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July 2019

Denúncias contra Veracel Celulose “desaparecem” da internet (Complaints against Veracel Celulose “disappear” from the internet)

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July 2019

Bahia: Sem-terra são presos por se defender de seguranças da Veracel (Bahia: Landless are arrested for defending Veracel security)

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July 2019

Vigilantes ficam feridos em ataque após reintegração de posse na Bahia (Vigilantes injured in attack after repossession in Bahia)

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June 2019

Sipat reúne dois mil colaboradores pra falar sobre segurança e saúde na Veracel(Sipat brings together two thousand employees to talk about safety and health in Veracel)

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May 2019

UCs do Sul da Bahia participam do Festival de Aves(UCs of the South of Bahia participate in the Festival of Birds)

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March 2019

Ikeas Bedarf an Holz ist geradezu gigantisch und auch vor Urwäldern macht IKEA nicht halt! Was versteht IKEA unter Nachhaltigkeit? (Ikea's need for wood is gigantic and IKEA does not stop at virgin forests! What does IKEA understand by sustainability?)

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March 2019

ICMBio agradece voluntários do Parque Monte Pascoa(ICMBio thanks volunteers of Monte Pascoal Park)

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March 2019

Brigadistas controlam incêndio no Parna Monte Pascoal(Brigadistas control fire in Parna Monte Pascoal)

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October 2018

Projeto incentiva estudo e valoriza cultura indígena (Project encourages study and values ​​indigenous culture)

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September 2018

Instaladas 82 armadilhas fotográficas no sul da Bahia(82 photographic traps installed in southern Bahia)

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August 2018

A importância da luta pelo território usurpado pelas indústrias de celulose (The importance of the struggle for territory usurped by the pulp and paper industries)

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July 2018

Meio ambiente como estratégia (Environment as a strategy)

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July 2018

Veracel atualiza plataforma Da Bahia para o Mundo (Veracel upgrades Da Bahia platform to the World) 

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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

Tutkimus yllätti: Suomalaisyhtiöillä on EU-maista neljänneksi eniten maaomistuksia ulkomailla (Survey results surpising: Finnish companies are the 4th largest in EU and Non EU countrie)

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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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Scoring criteria: Veracel

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

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