Environment – Klabin

Environment

ENVIRONMENTAL MANAGEMENT IS FOCUSED ON THE CONSERVATION OF NATURAL RESOURCES IN THE COMPANY’S OPERATIONS AND OF BIODIVERSITY ASPECTS

Sustainable
Development
Goals

<i>3 - </i>Quality health 3 - Quality health
<i>6 - </i>Clean water and sanitation 6 - Clean water and sanitation
<i>7 - </i>Renewable energy 7 - Renewable energy
<i>8 - </i>Decent jobs and economic growth 8 - Decent jobs and economic growth
<i>12 - </i>Responsible consumption 12 - Responsible consumption
<i>13 - </i>Combating climate change 13 - Combating climate change
<i>14 - </i>Life under water 14 - Life under water
<i>15 - </i>Life on earth 15 - Life on earth

—  Commitment to the conservation of natural resources

(GRI 103-1, 103-2, 103-3, 302-1, 302-4)

The Sustainability Policy is the guiding light for Klabin’s environmental management. The company operates in compliance with laws and regulations and establishes parameters to control indicators, some of which are even stricter than those set forth in legislation. Aspects such as water, energy, climate change and biodiversity are considered in all operations, revalidating the commitment to conserve natural resources and control and mitigate environmental impacts.

The Resource Advisor platform is the main control tool for Klabin’s ISO 14001-certified Environmental Management System, ensuring data security and traceability. The Puma Unit in Ortigueira (PR) achieved ISO 50001 certification in 2018, attesting to the good practices related to energy management, waste reduction, conscious consumption and prioritization of the use of energy from renewable sources. Environmental management was also improved during the period with the creation of the new Spotfire system, which reads Resource Advisor data, making critical analysis of decision-making information even more agile.

Performance of key environmental indicators

(GRI 103-1, 103-2, 103-3)

The consolidation of a strong environmental management model over the last few years has been contributing to improve the company’s operations and processes, and was reflected in the significant results for 2018, especially the expansion of renewable sources in Klabin’s energy matrix, reduction in total water consumption and reduction in total CO2 emissions. The following table and details throughout this chapter demonstrate the company’s performance in key environmental indicators.

Objectives and goals table:

 

Goal 2017 Goal 2017 Results 2018 Results Base year 2017 medium-term goal (3 to 5 years) 2020 to 2022 Analysis of results – 2018
Reduce greenhouse gas emissions (Scope 1+2) per ton of product produced Reduce emissions by 1%, reaching 205 kg CO2eq/t product (Klabin S.A.) 193.53 kg CO2eq/t product (Klabin S.A.) 178.677 kg CO2eq/t  product (Klabin S.A.) 185 kg CO2 eq/t paper Goal reached
Reduce direct emissions of greenhouse gases (Scope 1, absolute value) Have a maximum increase of 7% in the direct emissions by Klabin S.A (maximum direct emissions of 704,000 tCO2eq) Increase of 8% (direct emission of 709,560.00 tCO2eq) Increase of 6% (direct emission of 669,341.61 tCO2eq) Reduce by up to 1% Goal reached
Reduce purchased energy Do not exceed the purchase of energy: 1,100,000.00 MWh/year Purchased energy: 1,143,797.950 MWh/year 1,150,437.53 MW-h/year Reduce by up to 5% Goal not reached
Reduce water consumption Water consumption below 105,000.00 m³/year x 1000 112,274.94 m³/year x 1000 (the published value of
107,747.16 m³/year x 1000 in the last report was corrected during the 2017 data audit)
109,413.52 m³/year x 1000 Reduce by up to 5% Goal with a tendency to be reached
Increase the participation of renewable sources in the energy matrix 87% 89% 89% 88% Goal reached
Expand self-sufficiency in power generation 65% 70% 77% 75% Goal reached
Reuse of solid waste Maintain reuse (reuse and recycling) of waste > 93% 91% 92% Maintain reuse (reuse and recycling) of waste > 95% Goal with a tendency to be reached
Reduction of solid hazardous waste Maintain hazardous waste generation < 0.50% of total waste generation 0,24% 0,11% Maintain hazardous waste generation < 0.50% of total waste generation Goal reached

*Environmental goals began to be based on the 2022 cycle in the search for significant results.

 

—  Increasingly renewable energy matrix

(GRI 103-1, 103-2, 103-3, 302-1, 302-4)

The application of the latest and most efficient engineering solutions in the implementation of new ventures and projects, ensuring protection to human health, natural resources and the environment, is an express commitment in the Klabin Sustainability Policy. The generation of energy by means of renewable raw material by some industrial units is a practical example of the application of this guideline and greatly contributes to the evolution of the company’s energy indicators.

The surplus energy from the Puma Unit is available for sale in the Brazilian Power System and is also transferred to other units. In 2018, the plant was the first in the industry to achieve ISO 50001 certification, which guarantees good practices in energy management (see more in Certifications).

All Klabin units conduct energy management, with specific consumption targets driven by corporate goals. In some units, these indicators are one of the pillars for annual employee bonuses, including unit managers and directors.

In 2018, Klabin reduced the consumption of non-renewable fuels for power generation by 7%, a result mainly explained by a 12% reduction in fuel oil consumption and a 31% reduction in stationary diesel (used in stationary engines) with respect to 2017. A highlight in the period is a 19% increase in hydroelectric power generation and 4% in the amount of energy generated, available for sale.

>> THE 2018 RESULTS INDICATE AN ENERGY MATRIX WITH AN 89.1% ORIGIN FROM RENEWABLE SOURCES <<

Also noteworthy in 2018:

  • Reduction of 3,867 GJ in energy consumption of the Pulp business and 82,772 GJ in the Paper business, as a result of operational processes focused on reducing waste;
  • Creation of the Internal Energy Conservation Committee (CICE) at the Puma Unit;
  • Reduction of 3% in energy consumption outside the organization, related to the transportation and delivery of products, resulting from optimization and improvements in wood transportation logistics.

The following tables present detailed data on energy indicators. The conversion factors used are found in the GHG Protocol spreadsheet.

 

Total energy consumption (in GJ) – summary

(GRI 302-1)

2018 2017 2016
Fuels from non-renewable sources 6,261,563.81 6,726,627.00 7,270,500.00
Fuels from renewable sources 51,296,560.76 53,102,972.00 46,050,854.00
Energy consumed 13,972,803.45 13,707,541.69 11,048,113.04
Energy sold 3,199,269.71 3,077,550.00 1,563,474.82
Total 68,331,658,31 70,459,590.69 62,805,992.23

 

Energy consumption at Klabin (in GJ)

(GRI 302-1)

2018 2017 2016
Fuels from non-renewable sources
Natural gas 1,654,529.93 1,544,884.00 1,500,832.00
Fuel oil 4,119,543.39 4,695,937.00 5,347,095.00
LPG 460,608.87 446,586.00 360,188.00
Stationary Diesel 26,881.62 39,220.00 62,385.00
Total 6,261,563.81 6,726,627.00 7,270,500.00
Fuels from renewable sources
Biomass 17,568,544.99 21,128,715.00 19,829,173.00
Black liquor 33,096,853.86 31,420,144.00 25,922,799.00
Hydraulic energy 226,810.26 191,026.00 298,882.00
Tall Oil Tar1 256,008.69 210,117.00
Hydrogen1 148,342.96 152,970.00
Total 51,296,560.76 53,102,972.00 46,050,854.00
Energy consumed
electricity 13,972,803.45 13,707,541.69 11,048,113.04
heating
cooling
steam
Total 13,972,803.45 13,707,541.69 11,048,113.04
Energy sold
electricity 3,199,269.71 3,077,550.00 1,563,474.82
heating
cooling
steam
Total 3,199,269.71 3,077,550.00 1,563,474.82

1 With the start-up of the Puma Unit, Hydrogen began to be considered a fuel. It also became important to isolate tar fuel from the black liquor; therefore, the report considers these two items separately as of 2017. Tar is a renewable fuel generated from processing Tall Oil, which is a byproduct of the pulp industry. The hydrogen consumption value was changed as of the last cycle due to the change in the calculation conversion factor, without burdening the veracity of the historical basis. For the sake of better understanding, the ideal is to consider the 2017 information presented in this cycle.

 

Energy consumption outside of the organization (in GJ)

(GRI 302-2)

2018 2017 2016
2,397,656.83 2,484,497.85 1,331,268.63

The premise adopted for the report is based on the fuel consumption volume of Scope 3, from the Brazilian GHG Protocol, converted into energy using the IPCC emission factors.

The reduction in total energy consumption (own and purchased) was 3% for the company as a whole, with highlights in the Paper (9%) and Pulp (4%) businesses.

 

Energy intensity at Klabin (in GJ/ton produced)

(GRI 302-3)

Energy Intensity 2018 2017 2016
Within the Organization 16.13 15.79 17.46
Outside the organization1 0.57 0.56 0.37
Total 16.70 16.35 17.83

1 Related to product delivery and transportation activities

 

Energy intensity by business unit (in GJ/ton produced)

(GRI 302-3)

2018 2017 2016
Paper 18.91 20.82 21.70
Pulp 17.63 18.28 21.18
Packaging 1.14 1.12 1.15
Recycled Materials 7.30 6.58 6.61
Sacks 0.45 0.44 0.42

 

 

—  Greenhouse gas emissions

GRI 305-1, 305-2, 305-3, 305-4, 305-5)

Klabin’s environmental management is focused on reducing greenhouse gas emissions. With the increased use of renewable fuel, the company is contributing to a reduction in Greenhouse Gas (GHG) emissions. These indicators are set out in the Emissions Inventory, prepared in accordance with the methodology established by the Brazilian GHG Protocol Program (2004 base year), a globally recognized standard that is audited by a third party.

Ongoing actions to reduce energy consumption from non-renewable sources were reflected in the 2018 air emissions results, when Klabin reduced Scope 1 GHG emissions by 6%. The Puma Unit, in particular, obtained a reduction of 7% in absolute Scope 1 CO2eq emissions. A reduction of 8% in Scope 1 biogenic emissions was also recorded with respect to 2017.

Details of the air emissions indicators can be found in the following tables.

Direct (Scope 1) Greenhouse Gas emissions, in tons of CO2 equivalent1 (GRI 305-1)

2018 2017 2016
Total gross CO2 emissions 668,952.442 709,560.47 657,265.86
Biogenic CO2 emissions 5,011,972.258 5,272,920.750 4,593,412.913

1 The gases included in the calculations above are CO2, CH4, N2O and HFCs. Klabin follows the reference and methodology of the Brazilian GHG Protocol Program and used the operational control approach.

 

Indirect (Scope 2) emissions from the purchase of energy, in tons of CO2 equivalent (GRI 305-2)

In 2018, there was a 17% reduction in Scope 2 emissions, compared to 2017. The variation percentage of purchased energy from 2018 to 2017 is low, however, the National Interconnected System (SIN) emission factor considered that the energy purchased in 2018 had a lower emission rate than in the previous year, which positively affected this indicator.

Indirect emissions from the purchase of energy – Scope 2 (in tons of CO2 equivalent) 2018 2017 2016
87,791.49 105,828.68 99,865.99

 

Other indirect (Scope 3) Greenhouse Gas emissions, in tons of CO2 equivalent (GRI 305-3)

A 27% reduction was recorded in emissions from upstream transport, responsible for supplying pulp and paper mills, especially due to optimization and improvements in wood transportation logistics. The 21% increase in downstream transportation (that leaves the mills to customers) reflects the expansion of Klabin’s operations in Brazil and Mercosur.

Scope 3 – Tons of CO2eq  2018 2017 2016
Upstream1  
Upstream transportation and distribution 62,559 85,539 33,055
Waste generated in operations 435 527 717
Business travel 729 1,256 2,493
Employee transportation 2,363 1,984 1,614
Subtotal 66,087 89,307 37,879
Downstream2  
Downstream transportation and distribution 104,379 86,062 62,998
Subtotal 104,379 86,062 62,998
Total 170,466 175,368 100,876

*This year’s table now includes new elements, such as “business travel, employee transportation and waste generated during operations”. That is why the 2018 table has more line items than the previously reported tables.
1Klabin had no upstream emissions related to assets acquired, capital goods, energy-related activities and leased assets.
2Klabin had no downstream emissions related to the processing and use of products sold, handling of products sold at the end of their shelf life, leased assets, franchises and investments.

 

Biogenic CO2 emissions – Scope 3, in tons of CO2 equivalent (GRI 305-3)

2018 2017 2016
15,760.52 12,893.64 2,023.87

 

GHG emission intensity, in kgCO2eq/ton produced (GRI 305-4)

2018 2017 2016
Scope 1+2+3 218.93 235.17 238.68
Scope 1 157.95 168.42 182.84
Scope 2 20.73 25.12 27.78
Scope 3 40.25 41.63 28.06
Scope (1 + 2) 178.68 193.54 210.62

 

Reduction of GHG emissions, in tons of CO2eq (GRI 305-5)

The reduction of 40,608.025 tCO2eq in Scope 1 is noteworthy, resulting from reduced consumption of non-renewable fuels for power generation, mainly fuel oil and stationary diesel. Note the increase of black liquor and tar to demonstrate these reductions, both of which are renewable fuels.

Tons of CO2eq 2018 2017 2016
Reductions from direct (Scope 1) emissions 40,608.025 0.00 0.00
Reductions from indirect (Scope 2) emissions from the purchase of energy 18,037.63 0.00 40,455.70
Reductions from other indirect (Scope 3) emissions 0.00 0.00 5,901.85
Total GHG emission reductions 58,645.66 0.00 46,357.55

 

—  Significant reductions of air emissions

(GRI 305-7)

Federal legal requirements apply to all of Klabin’s emission sources, except for units where specific state legislation applies and/or emission limits are stipulated in environmental licenses. Emission limits are selected according to the legislation applicable to the state in which the unit is located.

The search for operational excellence has provided great benefits to the reduction of air emissions generated by the industrial process. The following results can be highlighted in 2018:

  • Reduction of 20% in NOx emissions and 8% in Particulate Matter (PM) emissions in the Paper and Pulp segments.
  • Reduction of 79% in Volatile Organic Compound (VOC) emissions in the Paper segment, reflecting adjustments in process controls and NaOH-specific dosage

 

NOx, SOx, and other significant air emissions, in tons1

(GRI 305-7)

This is the first year in which emissions are reported in absolute values.

Air emissions in tons 2018 2017 2016
NOx 4.374,83 5.437,03 4.685,76
SOx 2.813,06 1.789,18 3.949,68
Volatile organic compounds (VOC) 18,05 87,45 3,65
Particulate Matter (MP) 5.243,06 5.708,38 6.356,76

1The source of the emission factors is the sum of the results of the air emissions monitoring campaigns for Klabin emission sources, performed via isokinetic monitoring. This information was obtained in sampling reports produced by laboratories outsourced and accredited to perform this service. Direct measurements are performed in the chimneys, obtaining gas concentrations and flow rates for these gases. The emission rate is thus extrapolated for the entire year, calculated to obtain the absolute value. The samplings were performed according to the standards of the Brazilian Association of Technical Standards (ABNT), using the isokinetic monitoring methodology and according to other CETESB references. Persistent organic pollutants (POP) and Hazardous air pollutants (HAP) have not been determined as legal constraints to the business.

—  Climate change

(GRI 201-2)

Monitoring climate change is essential to forest-based companies like Klabin, considering the potential risks that these changes represent for the business. The company has a comprehensive matrix of weather-related opportunities and risks, including the internal mapping of impacts experienced due to weather and main future risks and opportunities, as well as observations from the Climate Conference (COP) and the Intergovernmental Panel on Climate Change (IPCC). The company also contributes to the NDC Brazil goal of “restoring and reforesting 12 million hectares of forests by 2030, for multiple uses” (a Brazilian commitment to fulfilling the goals of the COP 21 Climate Agreement). Learn more here.

Potential mapped risks include increasing temperatures; increased levels of rainfall, which can have negative impacts by accelerating the growth rate of forest pests; the need for more forest irrigation; and changes in the phenology (biological cycle) of pine and eucalyptus species, impacting forest improvement programs. In 2019, Klabin began calculating the financial impacts associated with climate change, by appraising ecosystem services and calculating the carbon footprint.

Matrix of weather-related risks and opportunities

(GRI 201-2)

Potential risks and opportunities due to climate change, able to generate substantial changes in operations, revenues or expenses
Risks/ opportunities Description Classification (physical, regulatory or other nature) Associated impacts Financial implications Form of management Cost of management
Increased temperatures and increased frequency of intense heat waves Potential acceleration of the growth rate of forest pests due to the increase of the thermal stress on the planted forests. Physical risk Reduction/interruption of production capacity. Not measured  The Department of Productivity and Forest Ecophysiology monitors possible future climate scenarios – developing data modeling related to exposure to climatic parameters and assessing the impact of changes in planted forests – and recommends the necessary measures in case of adverse effects. Not measured
Stressed national electrical system and more expensive electricity. Physical risk Increased operating costs Not measured The newly built Puma Unit in Ortigueira (PR) has made Klabin a self-sufficient organization in electric power generation with a capacity to produce 270 megawatts, of which 120 megawatts are used in the unit’s industrial operation and 150 MW are available for sale to the Brazilian electrical grid. Not measured
Change in precipitation patterns Very dry periods can negatively affect the development of seedlings, in addition to generating conflicts with the community. Severe rainfall can lead to mudslides, flooding and soil saturation. In addition, they may have an impact on the removal of timber from forest areas. Physical risk Reduction/interruption of production capacity. Increased operating costs Not measured Droughts: Klabin is working so that its factories consume less water from natural sources and has been developing programs for recycling and reusing water in irrigation, industrial processes and equipment cleaning. Heavy rainfall: Klabin has an efficient logistical system capable of working in adverse rain and mud conditions. Level contours and containment barriers on roads are already used to avoid risk of erosion Not measured
General environmental regulations, establishment of limits for fuel and energy consumption, and establishment of mandatory reporting of limits and targets for GHG emissions All regulations related to fuel/energy consumption and the establishment of GHG emission limits shall be relevant to Klabin. Considering that the company already uses more efficient technologies and equipment, it has adopted an increasingly clean matrix and has a large carbon stock and high potential to generate new CO2eq credits. Regulatory risks Increase in capital related to the sale of excess generated energy and carbon credits. Not measured Monitoring by discussion groups and forums. An example is Klabin’s active participation in the Business for the Climate (EPC) platform, a permanent business platform that aims to mobilize, raise awareness and articulate business leaders for the management and reduction of greenhouse gas emissions (GHGs), the management of climate risks and the espousal of public policies and positive incentives in the context of climate change. Not measured

—  Commitment to rational use and reuse of water

(GRI 103-1, 103-2, 103-3, 303-1)

Following the provisions of its Sustainability Policy and in compliance with current environmental laws and regulations, Klabin seeks continuous improvement in all its processes, focusing on the conservation of natural resources and increased water reuse. As a member of River Basin Committees, the company actively participates in discussions on water use and water resource planning. The company’s environmental management includes goals to reduce the volume of water withdrawn and use recycled water.

Klabin has several suppliers whose main raw material is water. In 2018, the company decided to implement a globally recognized sustainability assessment system in its supply chain, which is in the hiring phase. This tool will allow Klabin to critically evaluate the value chain and assist its suppliers in the water management of their processes. Klabin currently has a significant stake in the Tibagi, Canoas and Itapetininga River basins.

In 2018, we reduced the total amount of water withdrawn by 3% (the company’s main means of withdrawal is superficial) and the total amount of treated effluent disposal by 9%. It is also worth noting that during this period, the total volume of water recycled and reused was twice as large as the total volume of water withdrawn.

Specific water consumption follows the industry average. Special attention should be given to the Puma Unit, designed with a cutting-edge technology based on low-power circuit design with high reuse of this resource: 82.4%. Total water consumption in 2018 was 18,735.98 Ml, of which more than 99% came from surface water sources. The new calculation method now considers a new unit of measure (international standard) and uses the value of raw water flow, subtracting the value of the disposed effluent flow.

 

Total water withdrawal, broken down by source1 (in Megaliter)

(GRI 303-3)

2018 20172 2016
All areas Areas with water stress All areas Areas with water stress All areas Areas with water stress
Surface water, including humid areas, rivers, lakes and oceans Total 108,177.69 955.86 111,151.10 830.20 92,413.75 0
Freshwater (≤1,000 mg/L of total dissolved solids)  108,177.69 955.86 111,151.10 830.20 92,413.75 0
Other water (> 1,000 mg/L of total dissolved solids)  0  0 0 0 0 0
Groundwater Total 89.99 10.64 80.57 11.11 91.96 0
Freshwater (≤1,000 mg/L of total dissolved solids) 89.99 10.64 80.57 11.11 91.96 0
Other water (> 1,000 mg/L of total dissolved solids) 0  0 0 0 0 0
Seawater Total 0 0 0 0 0 0
Freshwater (≤1,000 mg/L of total dissolved solids) 0 0 0 0 0 0
Other water (> 1,000 mg/L of total dissolved solids) 0 0 0 0 0 0
Produced water Total 0 0 0 0 0 0
Freshwater (≤1,000 mg/L of total dissolved solids) 0 0 0  0 0 0
Other water (> 1,000 mg/L of total dissolved solids) 0 0 0 0 0 0
Third-party water Total 169.34 0 186.12 0 179.55 0
Freshwater (≤1,000 mg/L of total dissolved solids) 169.34 0 186.12 0 179.55 0
Other water (> 1,000 mg/L of total dissolved solids) 0 0 0 0 0 0
Total 108,437.02 976.50 111,417.89 851.41 91,685.16 0

 

—  High efficiency of the Effluent Treatment Plants ensures better quality for the final effluent

(GRI 103-1, 103-2, 103-3, 303-2, 306-5)

Attention is also being focused on effluent disposal and its management is being improved. One hundred percent of Klabin’s industrial process effluent is treated in the Effluent Treatment Plants before returning to the water body. Neither the disposal nor the withdrawal of water at Klabin significantly affect the volume of the water bodies.

The minimum disposal standards are based on municipal, state, and federal legislation for each unit. Klabin also compares its results to global benchmarks for the pulp and paper industry. In order to determine the maximum discharge limits, the responsible environmental body requests studies on water dispersion and self-depuration of the water body. That makes it possible to evaluate and determine limits that do not generate changes in the water body’s quality and volume.

All of the company’s units monitor their disposal data. However, there are no defined goals for this aspect, since the goal of reducing water consumption directly impacts the reduction of effluent generation. The Puma Unit has one of the largest volumes of water disposal on the Tibagi River. However, it also has one of the company’s most sophisticated and robust treatment processes. With tertiary level treatment, the quality of the effluent discharged into the receiving body exceeds the required environmental limits.

In 2018, Klabin began evaluating results focused on water availability and safety in its supply chain. Analysis of these results should begin in 2019. In the year, the company reduced the discharge of effluents in surface waters by 9%.

See tables for indexes related to effluents at Klabin’s operations.

Total water discharge, broken down by destination1 (in Ml) (GRI 303-4)

  2018 2017 2016
All areas Areas with water stress All areas Areas with water stress All areas Areas with water stress
Surface water, including humid areas, rivers, lakes and oceans 89,888.04 686.90 99,151.94 661.86 74,195.94 0
Third-party water, and the volume of this total sent for use in other organizations, if applicable. 102.61 0 100,70 0 0 0
Total 89,990.65 686.90 99,352.64 661.86 74,195.94 0

1 Klabin does not dispose of effluents into seawater or groundwater. All discharge is of freshwater (≤1,000 mg/L of total dissolved solids).

 

Water discharge, broken down by quality and destination (GRI 306-1)

Klabin’s Effluent Treatment Plants (ETPs) are highly efficient in removing BOD5 and COD, maintaining concentrations of these components below the limits imposed by current legislation.

Water discharge, broken down by quality and destination 2018 2017 2016
Destination: Effluent Treatment Station (m3)

 

Treatment method: biological

90,677,541.43 100,014,480.38 74,195,940.18
Paper Unit effluent quality (mg/l)
Was the water reused by another organization? No
Chemical Oxygen Demand (COD) 197 196  225
Biochemical Oxygen Demand (BOD) 22  29 26
Pulp Unit effluent quality (mg/l)
Was the water reused by another organization? No
Chemical Oxygen Demand (COD) 201 222  284
Biochemical Oxygen Demand (BOD) 15  19  32

 

(GRI 307-1) In 2018, Klabin received a fine in the amount of BRL 18,589.57, regarding specific emission of water effluents at the Piracicaba Unit (SP) above the legal limits with respect to BOD5 and sedimentable solids, and a non-monetary sanction. The noncompliance occurred due to solids being dragged from the decanted sludge, which caused variations in the effluent treatment process, leading to a momentary increase of the element. Even before the notification, Klabin adopted corrective measures to restore the effluent treatment system. In addition to this measure, the effluent was interconnected to the city’s Municipal Water and Sewage System. In previous years, Klabin had not sustained any monetary or non-monetary sanctions.

 

—  Waste: less generation and more reuse

(GRI 103-1, 103-2, 103-3, 306-2)

Klabin’s environmental management guidelines address the issue of solid waste. The Sustainability Policy, for example, presents specific guidelines on the relationship between reducing environmental impacts related to waste and improving production processes, developing and improving products, considering the application of efficient technologies and engineering solutions, in addition to observing the Sustainable Development Goals (SDGs).

Certifications such as ISO 14001 also guide the environmental management of this aspect of the company, as well as specific federal and state legislation, including the National Solid Waste Policy (Law No. 12.305/10), focused on reducing waste generation, correct handling and disposal of materials. The law establishes that waste should be reused and/or recycled, and tailings should be disposed of in an environmentally appropriate manner. Another waste management initiative with a positive impact at Klabin is creating employee awareness, through training and lectures.

In 2018, the company expanded its waste reuse rate to 92%, reinforcing the goal of maintaining this indicator above 95% until 2022. An example of an initiative that contributes to these results is the Solid Waste Processing Center in Ortigueira (PR), which has been improving management of the issue. Responsible for processing the industrial waste of the PUMA and Monte Alegre units, it redirects a large portion of generated waste from the industrial landfill, being transformed into byproducts for various applications.

 

Waste generation in 2018

(GRI 306-4)

In 2018, the reduction in the generation of non-hazardous waste at Klabin destined to Class II Landfills is noteworthy, in addition to the percentage of hazardous waste, which dropped from 0.24% in 2017 to 0.11% in 2018, demonstrating commitment to the goal of keeping the amount of hazardous waste at less than 0.50% of total waste generation until 2022.

The significant increase in hazardous waste destined for landfill, which can be observed in the following table, refers to waste generated in the production process at the Rio Negro (PR) unit, separated in the effluent treatment stage. With investments to restructure the unit’s Effluent Treatment Plant (ETP), the company expects better results in this indicator for the coming periods.

Klabin treated a total of 945.07 tons of hazardous waste in 2018. The company does not transport, import or export this type of waste, classified as Class 1 in accordance with NBR 10004.

Total weight of waste, broken down by type and disposal method, in tons

(GRI 306-2)

Disposal of hazardous waste (in tons)
Destination 2018 2017 2016
Reuse 73.82 10.32 0.00
Recycling 219.22 185.78 152.82
Composting 0.00 0.00 0.00
Recovery (including energy recovery) 22.62 38.73 37.42
Incineration (mass burn) 9.21 9.90 0.45
Deep well injection 0.00 0.00 0.00
Landfill 0.00 0.00 0.00
On-site storage 0.00 0.00 0.00
Other (class I landfill) 620.20 318.89 378.28
Other (decontamination) 0.00 47.42 56.22
Other (recycling and decontamination) 0.00 0.00 0.00
Total 945.07 611.03 625.19

 

Disposal of non-hazardous waste (in tons)
Destination 2018 2017 2016
Reuse 81,683.49 103,526.98 134,661.72
Recycling 220,816.15 215,958.75 74,737.58
Composting 139,788.52 133,301.74 95,453.06
Recovery (including energy recovery) 326,927.04 371,022.57 358,555.76
Incineration (mass burn) 0.00 167.00 0.00
Deep well injection 0.00 0.00 0.00
Class II-A landfill 67,405.53 112,770.43 62,246.01
On-site storage 15,998.40 19,433.57 14,457.89
Other (decontamination) 0.00 0.00 0.00
Total 852,619.13 956,181.04 740,112.02

* For the 2018 cycle, the information was updated according to the nomenclature and subdivision of classes in accordance with the GRI, hence the change in the historical basis, but without prejudice to the veracity of the information.

—  Use of materials

More than 98% of materials used in Klabin’s production are of renewable origin, such as wood, chips and pulps. Non-renewable materials account for less than 2% of the total amount used, totaling just over 212,000 tons. The 87% increase in chip consumption purchased from the market with respect to 2017 plays an important role in the reverse logistics of paper waste in its post-consumption stage, as established by the National Solid Waste Policy.

Materials used, broken down by weight, in tons

(GRI 301-1)

Total weight of materials that are used to produce and package the primary products and services Origin of the source 2018 2017 2016
Wood for processing Renewable source 12,076.48 12,400.00 10,697.00
Chips purchased on market (recycled) 217.00 116.00 173.00
Purchased pulp (cellulose and CTMP) 14.00 32.00 26.00
Sulfuric acid Non-renewable source 36.33 32.91 24.15
Caustic soda 64.77 66.19 47.48
Sodium sulfate 19.35 14.05 15.25
Aluminum sulfate 43.10 48.54 36.58
Lime 30.62 36.18 49.84
Kaolin 18.76 20.57 17.63
Total renewable 12,307.48 12,548.00 10,896.00
Total non-renewable 212.93 218.44 190.93
Total 12,520.41 12,766.44 11,086.93

 

Leak

(GRI 306-3)

In 2018, a sodium hydroxide leak occurred at the coal tailings industrial landfill at Fazenda Monte Alegre (20 m3). The leak occurred due to the drainage of the tank used to treat the effluent from this landfill. Klabin itself reported the incident to Instituto Ambiental do Paraná [Environmental Institute of Paraná], justifying the leak due to third-party action (vandalism), since the dosing valves were manually operated, which resulted in damage to the control equipment. Adopted remediation measures include removal of the contaminated soil and disposal in a landfill, fertilization and recovery of vegetation, containment and shipment of the effluent to the Klabin Effluent Treatment Plant in Monte Alegre. After the event, the company has been constantly monitoring the conditions of the affected area. All recovery steps were performed and reported to the environmental agency that received the company’s initial report.

—  Environmental Investments

Description Investments (BRL)
Investments in treatment of air emissions; solid waste (except treatment and final disposal); environmental investments; environmental monitoring; certifications; expenses with environmental professionals; environmental training; environmental education 19,270,251.00
Treatment and disposal of solid waste 26,466,032.04
Total 45,736,283.04

 

 

—  Biodiversity management, sustainable management and monitoring

(GRI 103-1, 103-2, 103-3)

Klabin was one of the first companies to adopt mosaic forest management, which mixes planted forests and preserved native forests. This results in the formation of ecological corridors that favor animal transit in large areas, contributing to the preservation of fauna and flora and the conservation of water resources. Different and staggered periods of planting and harvesting are also part of the sustainable management of planted forests.

Biodiversity monitoring is part of an extensive program for research and conservation of wild fauna and flora at the company’s forests, contributing to the survival of endangered species such as the pygmy brocket deer, howler monkey and cougar. Certifications that attest to sustainable practices, such as CERFLOR and FSC ®, as well as voluntary endorsement of external initiatives (Global Compact, Carbon Disclosure Project, Business for the Climate (EPC) Platform, GHG Protocol and Forestry Dialogue, among others) reinforce the company’s management on the issue.

Impact management

(GRI 304-2)

Management of the direct and indirect impacts of Klabin’s operations on biodiversity guides actions to minimize or mitigate these impacts.

Aspect Description of impacts
Construction or use of manufacturing plants and transport infrastructure Forestry unit operations include building and maintaining rural roads. In all cases, there are procedures to mitigate the impacts arising from this operation. In specific cases, these procedures were associated to environmental monitoring tools.
Pollution (introduction of substances that do not naturally occur in the habitat) For its forestry operations, the company performed a survey of associated environmental aspects and impacts, including mitigation actions.
Introduction of invasive species in local biodiversity The company uses exotic species for commercial plantations. Native species are used in plantations for area restoration. A dedicated team is in charge of eliminating exotic species from permanent preservation areas.
Reduction of species Periodic surveys are performed with specialized consultants to identify any changes in the environments (fauna and flora) resulting from the adopted forest management. There were no negative changes in the evaluated parameters.
Habitat conversion Not applicable, except for cases of conversion from planted forest to environmental recovery areas. This activity may occur to restore ecological functions, maximize the positive impacts of ecological corridors and enhance water resource maintenance procedures.
Changes in ecological processes outside the natural range of variation, such as salinity or changes in groundwater level The concept of “hydrosolidarity” is being implemented. This process considers a forest’s water consumption throughout its productive cycle to avoid negatively affect neighboring river basins, i.e. the availability of water in the region, especially in small neighboring rural properties.

 

—  Protection and conservation
of the Atlantic Rainforest

(GRI 304-1)

Of the total area managed by Klabin, between own, leased and partnership lands, approximately 46% correspond to planted areas, while 43% of the lands are preservation areas, divided between Permanent Preservation Areas (APP), Legal Reserves (RL) and Natural Heritage Private Reserves (RPPN). The remaining 11% corresponds to infrastructure (roads and improvements, for example) and areas available for planting.

Klabin owns areas of high biodiversity value, such as Private Natural Heritage Reserves (RPPNs) in Paraná and Santa Catarina, dedicated exclusively to scientific research, environmental protection and water resource preservation, contributing to the conservation of biodiversity in the Atlantic Rainforest biome.

Serra da Farofa Complex RPPN (Santa Catarina)

Located in Santa Catarina, it is Klabin’s largest RPPN. This encompasses an area of ​​49.87 km2, equivalent to 4,987.15 hectares, with araucaria and high altitude forests, and houses the springs of the Caveiras and Canoas rivers. Considered to have high biodiversity value according to the International Union for Conservation of Nature (IUCN) and national legislation, the RPPN is intended for scientific research, natural resource management and maintaining the climate and ecological balance. In 2019, Klabin inaugurated the Nature Interpretation Center of the Serra da Farofa Complex, a space to receive and support groups of students and researchers from all over the country.

Monte Alegre RPPN (Paraná)

Located in the Fazenda Monte Alegre, in Telêmaco Borba, Paraná, in an area of 45.23 km2, equivalent to 3,852 hectares, it is also a space devoted to scientific research, the protection of local biodiversity and water resources, the protection of possible archaeological, historical, cultural and paleontological sites, as well as providing the seeds of forest species for the restoration of degraded areas.

Ecological Park

Created in the 1980s and located at Fazenda Monte Alegre (PR), Klabin’s Ecological Park is established on an area of 11,000 hectares, 71% of which are natural forests. The activities performed at the site are intended for biodiversity conservation, wildlife rehabilitation, endangered species preservation, development of scientific research, and support for environmental education projects. Leisure and recreational activities are prohibited.

 

Category Serra da Farofa Complex (RPPN) RPPN Monte Alegre AAVCs
Geographic location Santa Catarina Paraná In the three Forestry units (Santa Catarina, Paraná and São Paulo)
Surface and underground land that may be owned, leased or managed by the organization Owned – surface Owned – surface Owned – surface
Position in relation to the protected area or the high biodiversity value area outside protected areas Within the area Within the area Within the area
Type of operation Extractive operation Extractive operation Extractive operation
Size of the operating unit in km² 49.87 km² 45.23 km² Variable – for more information see Public summaries of management plans.
Biodiversity value characterized by the attribute of the area Terrestrial ecosystem Terrestrial ecosystem Terrestrial ecosystem
Biodiversity value characterized by listing of protected status IUCN/National legislation IUCN/National legislation IUCN/Proforest

—  Habitats protected or restored

(GRI 304-3)

Klabin has areas for the preservation of protected or restored habitats in the states of Paraná, Santa Catarina and São Paulo. These are Permanent Preservation Areas (APPs) located on farms managed by Klabin, whose restoration measures were adopted by independent external experts: Casa da Floresta, in Paraná and São Paulo, and Santa Catarina State University (UDESC), in Santa Catarina. In third-party areas, partnerships and technical consultations are carried out through the Matas Legais program (learn more at Promoting Local Development).

Further information about protected habitats is available in the public summary records of Paraná, Santa Catarina and São Paulo, and can be accessed at https://www.klabin.com.br/en/businesses-and-products/forestry/

Areas protected or restored
Aspect Paraná Santa Catarina São Paulo
Status of the area at the close of the reporting period In different stages of recovery In initial recovery In different stages of recovery
Standards, methodologies, and assumptions used Abandonment and follow-up*, as well as occasional planting of native species Abandonment and follow-up* Abandonment and follow-up*, as well as occasional planting of native species

*This is a technique for the recovery of degraded areas, in which the area is left “abandoned”, without anthropic action, so that the flora and fauna can naturally restore their ecological functions.

—  Protection of fauna and flora species

(GRI 304-4)

Monitoring of fauna and flora species, including those considered rare or endangered, is part of Klabin’s biodiversity management. Up until 2018, the company had already identified 728 species of fauna and 108 species of flora included in the Red List of Threatened Species of the International Union for Conservation of Nature (IUCN) in the areas of its operations. Of this total, 3.3% of the fauna species and 23.15% of flora are considered “critically endangered” or “endangered”.

 

 

Total number of IUCN Red List species and national conservation list species with habitats in areas affected by the operations of the organization, by level of extinction risk
(GRI 304-4)

Extinction risk level 2018 2017 2016
Fauna Flora Flora Flora Fauna Flora
Critically endangered (CR) 1 1 3 2 1 1
Endangered (EM) 2 8 11 3 4 7
Vulnerable (VU) 21 16 21 49 21 17
Near threatened (NT) 52 11 2 84 54 8
Least concern (LC) 652 72 73 1,211 643 55
Total 728 108 110 1,349 723 88

The variation in the total number of species over the years is due to the updating of the IUCN list, as well as technical variations (nomenclature changes) and adjustments related to the updating methodology.