Health and Safety of Direct and Indirect Employees – Klabin

Health and Safety of Direct and Indirect Employees

THE COMMITMENT TO A WAY OF BEING AND ACTING TO DEVELOP SKILLS AND PROMOTE AN APPRECIATION FOR LIFE IS THE MAIN DRIVER OF KLABIN’S PEOPLE MANAGEMENT PRACTICES, UNDERLYING THE EXECUTION OF THE COMPANY'S GROWTH PLAN.

Sustainable
Development
Goals

<i>3 - </i>Quality health 3 - Quality health
<i>8 - </i>Decent jobs and economic growth 8 - Decent jobs and economic growth

—  Shared purpose

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

Klabin’s people management practices focus on the purpose of engaging employees to share their values, beliefs, attitudes and behaviors towards creating a single vision of the future. This is the culture that strengthens and catalyzes the capacity to adapt to change, in an agile, innovative and competent manner in terms of leadership – fundamental factors to deliver results and build a prosperous, collaborative and innovative future.

The operational efficiency of the business model, one of the pillars of Klabin’s growth plan, can only be achieved through people-oriented management – a process that must be carried out by the leaders. Therefore, the company has been giving special attention to the development of skills that promote engagement, sustain the delivery of results and help build the future. This work is based on the Gente & Gestão [People & Management] policies, structured to attract talents, promote a culture of innovation and meritocracy, promote diversity and inclusion, in addition to ensuring a safe and healthy environment for all direct and indirect employees.

Klabin’s workforce profile

(GRI 102-7, 102-8)

2018 2017 2016
Direct employees 14,270 14,404 13,400
Indirect employees 5,341 5,171 4,681
Others (apprentices and trainees) 521 356 292
Total 20,132 19,931 18,373

 

 

Employee movement

(GRI 401-1)

Generally speaking, from 2016 to 2018, the number of hirings exceeds that of dismissals. Regarding age groups, a greater renovation of human resources is observed, reinforced by the structuring of the apprentice and trainee programs. The most significant hiring movements occurred in the Southern region, due to the expansion of the forestry base to support the businesses less exposed to the domestic market crisis, while there was a greater dismissal volume in the Southeastern region, due to the adjustment of operations according to the demand. Also noteworthy is the increase in the proportion of women hired in 2018, considering the total admissions in the year.

 

Members of senior management recruited from the local community

(GRI 103-1, 103-2, 103-3, 202-2)

Hiring for management levels generally occurs in units where Klabin has its main operations. Due to the characteristics of the business, the forestry and papermaking operations have a close relationship with the unit’s surrounding communities. In this sense, the employment term, development actions and promotion of local managers are not based on pre-established goals.

In 2018, 92% of the managers were from the state of São Paulo when they were hired. In Paraná, the rate reached 85%. All the directors and managers in Minas Gerais, Santa Catarina, Rio Grande do Sul and Rio de Janeiro had been hired in the same states of the company’s operating units. The numbers reflect the structure movement, either by the acquisition of new units (Amazonas and Paraná), reinforcement in expansion strategies or search for greater operational efficiency.

 

Click here to see the indicators related to Klabin’s employee profile, hiring and turnover rates.

Number of employees by employment contract and gender (GRI 102-8)
Employment contract 2016 2017 2018
Men Women Total Men Women Total Men Women Total
Specific term 12,048 1,352 13,400 12,991 1,413 14,404 12,804 1,466 14,270
Indefinite term
Others (apprentices and trainees) 170 122 292 181 175 356 254 267 521
Total 12,218 1,474 13,692 13,172 1,588 14,760 13,058 1,733 14,791

 

Number of employees by employment contract and region (GRI 102-8)
Region1 2016 2017 2018
Direct Indirect Others (apprentices and trainees) Direct Indirect Others (apprentices and trainees) Direct Indirect Others (apprentices and trainees)
North 209 7 200 5 242 4
Northeast 1,294 226 70 1,255 161 44 1,289 315 48
Southeast 3,163 359 92 3,117 374 113 2,919 384 122
South 8,734 4,096 123 9,832 4,636 194 9,820 4,642 347
Total 13,400 4,681 292 14,404 5,171 356 14,270 5,341 521

¹There are no employees in the Midwest region

 

Number of employees by employment type (GRI 102-8)
Employment type 2016 2017 2018
Men Women Total Men Women Total Men Women Total
Full-time employment 12,048 1,352 13,400 12,991 1,413 14,404 12,804 1,466 14,270
Part-time employment
Others (apprentices and trainees) 170 122 292 181 175 356 254 267 521
Total 12,218 1,474 13,692 13,172 1,588 14,760 13,058 1,733 14,791

 

Number of employees by employment contract and business unit (GRI 102-8)
Business unit 2016 2017 2018
Direct Indirect Others (apprentices and trainees) Direct Indirect Others (apprentices and trainees) Direct Indirect Others (apprentices and trainees)
Paper 3,990 1,286 60 3,534 1,696 81 3,553 1,454 105
Forestry 3,142 1,846 34 3,923 2,041 47 3,862 2,192 169
Packaging and Recycled Materials 3,548 464 144 4,145 422 123 3,960 553 161
Sacks 1,097 187 25 1,114 157 46 1,124 204 16
Corporate 826 82 18 875 91 43 958 107 35
Pulp for paper 797 816 11 813 764 16 813 831 35
Total 13,400 4,681 292 14,404 5,171 356 14,270 5,341 521

 

Age group (GRI 102-8) 2016 2017 2018
Men Women Men Women Men Women
Under 30 years of age 3,674 652 4,232 769 3,628 799
Between 30 and 50 years of age 7,421 736 7,690 720 8,159 834
Over 50 years old 1,123 86 1,250 99 1,271 100
Total 12,218 1,474 13,172 1,588 13,058 1,733

 

Employee category1 (GRI 102-8) 2016 2017 2018
Men Women Men Women Men Women
Executive Board 14 1 13 1 12 1
Management and coordination 417 98 417 100 434 105
Technical 646 105 652 109 687 126
Administrative 668 657 703 667 691 701
Operational 10,303 491 11,206 536 10,980 533
Apprentices 142 98 134 121 184 186
Interns 28 24 47 54 70 81
Total 12,218 1,474 13,172 1,588 13,058 1,733

¹The group of professionals identified as “Board of Directors” is contained in the “Administrative” group to consolidate the other indicators.

 

Governance bodies (GRI 102-8) 2016 2017 2018
Men Women Men Women Men Women
Board of Directors 16 5 20 5 22 5

 

Total number and rate of new employee hires, by age group (GRI 401-1) 2016 2017 2018
Total number Rate Total number Rate Total number Rate
Under 30 years of age 1,590 54% 1,431 51% 1,511 64%
Between 31 and 50 years of age 1,261 43% 1,240 45% 812 34%
Over 50 years old 107 4% 114 4% 50 2%
Total 2,958 100% 2,785 100% 2,373 100%

 

Total number and rate of employee turnover, by age group (GRI 401-1) 2016 2017 2018
Total number Rate Total number Rate Total number Rate
Under 30 years of age 877 46% 855 43% 954 41%
Between 30 and 50 years of age 871 45% 916 46% 1,133 49%
Over 50 years old 177 9% 200 10% 238 10%
Total 1,925 100% 1,971 100% 2,325 100%

 

Total number and rate of employee hires, by gender (GRI 401-1) 2016 2017 2018
Total number Rate Total number Rate Total number Rate
Men 2,475 84% 2,416 87% 1,835 77%
Women 483 16% 369 13% 538 23%
Total 2,958 100% 2,785 100% 2,373 100%

 

Total number and rate of employee turnover, by gender (GRI 401-1) 2016 2017 2018
Total number Rate Total number Rate Total number Rate
Men 1,583 82% 1,661 84% 1,946 84%
Women 342 18% 310 16% 379 16%
Total 1,925 100% 1,971 100% 2,325 100%

 

Total number and rate of employee hires, by region1 (GRI 401-1) 2016 2017 2018
Total number Rate Total number Rate Total number Rate
Northern Region 257 9% 50 2% 67 3%
Northeastern Region 183 6% 133 5% 149 6%
Southeastern Region 539 18% 328 12% 435 18%
Southern Region 1,979 67% 2,274 82% 1,722 73%
Total 2,958 100% 2,785 100% 2,373 100%

¹Klabin has no operations in the Midwestern region.

 

Total number and rate employee turnover, by region1 (GRI 401-1) 2016 2017 2018
Total number Rate Total number Rate Total number Rate
Northern Region 33 2% 63 3% 37 2%
Northeastern Region 181 9% 198 10% 147 6%
Southeastern Region 452 23% 389 20% 581 25%
Southern Region 1,259 65% 1,321 67% 1,560 67%
Total 1,925 100% 1,971 100% 2,325 100%

¹Klabin has no operations in the Midwestern region.

 

Percentage of senior management at significant operational units that are hired from the local community1

(GRI 202-2)

2016 2017 2018
Amazonas (AM) 0% 0% 0%
Bahia (BA) 100% 50% 50%
Minas Gerais (MG) 100% 100% 100%
Paraná (PR) 94% 88% 85%
Pernambuco (PE) 80% 80% 80%
Santa Catarina (SC) 85% 100% 100%
São Paulo (SP) 99% 96% 92%
Rio Grande do Sul (RS) 100% 100% 100%
Rio de Janeiro (RJ) 100% 100% 100%

¹Base started in 2016, considering managers who held or took on a top management position that year (for positions taken before 2016, even professionals coming from other locations are considered locals). As of 2016, the base is set and updated according to manager movement. For location purposes, the reference is the state.

—  Attitudes that make the difference

In 2018, an initiative led by the Gente & Gestão [People & Management] team with senior management focused on consolidating and strengthening leadership skills. The work resulted in the elaboration of Klabin’s Talent Philosophy, a driver for high-performance culture that recognizes and offers challenging opportunities for top achievers with growth potential and behaviors aligned with the company’s values and culture, making the people management processes more holistic on that front.

Meanwhile, Klabin has improved its competency model to align the behavior and attitudes the company considers fundamental to its cultural evolution, based on its 120-year success story as a technologically advanced company with proven positive results.

Thus, it launched the #AtitudeKlabin campaign, which seeks to use engagement and communication to reinforce the importance of developing eight skills – leadership, development, collaboration, results, operational management, customer focus, strategy and innovation – that are fundamental to employees of all the levels in achieving business objectives.  The application of these skills implies incorporating purpose into daily activities.

—  Leadership tools

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

Klabin’s leader profile includes professionals who efficiently understand and handle the uncertainties and volatility of complex environments, acting in their role as decision makers and in the spirit of ownership. In this sense, the company, through the People & Management area, provides content and tools for leaders to develop high-performance teams.

The Rumos Program is one of the development actions integrating the Klabin Business School (ENK), an innovative knowledge transfer model. Since it was created in 2015, over 500 managers and specialists have participated in Rumos 1.0, which represents almost 100% of the target audience. Rumos 2.0 was introduced in 2018, intended for managers and with the objective of developing skills and abilities focused on people management, innovation, chain vision and operational efficiency.

The program seeks to strengthen the holistic and strategic vision of Klabin’s business and how the parameters followed in different areas interrelate to achieve results. It also promotes the understanding of how to generate value for the company and its stakeholders, balancing resources and managing priorities, as well as showing the importance of leading teams to sustainability and improving decision-making powers. In 2018, three Rumos 2.0 groups were promoted, totaling 63 participants.

—  Training for all levels

“Liderar” [Leading] is one of the continuing education programs intended for leaders, underway at the Monte Alegre Unit in Paraná since 2015. The program focuses on the tactical level of leadership (coordinators), and involves middle management in behavioral skills training modules and management tools. In turn, the “Ser” [Being] program, also from Monte Alegre, focuses on developing behavioral skills for senior operators, analysts and engineers, establishing a reference group for management support.

Aimed at the first level of operational leadership (operational supervisors and leaders), the “Ser Líder” [Being a Leader] program is developed in all units. It includes behavioral training, management tools, and technical content, taught by multipliers in 28-hour training sessions.

—  Klabin Business School

Klabin Business School (ENK) is one of the catalysts for enhancing skills, based on a consistent process of people development. ENK is organized into knowledge tracks, including specific training on technical and management issues for each stage of the professional career, in addition to the development of skills and behaviors. Content (over 700 options) can be interactively explored online through the ENK Portal and in person, in workshops and training sessions.

The ENK Portal offers courses, videos, articles, seminars, posts and polls, delivered or mediated by experts and renowned institutions. The environment has more than 10,000 users, covering all units, and also features the Social Learning collaborative space, where employee share testimonies on various topics. There is also Leadcast for managers, a flexible, autonomous, self-directed mobile digital solution based on multimedia playlists focused on the key challenges faced by leaders.

The ENK Family

Based on the understanding that knowledge only grows when shared, Klabin offers the ENK Family Portal, available to employees and their dependents, totaling more than 45,000 users. The digital environment gathers content for all age groups, including school and college preparation support, language studies, “do-it-yourself” activities and more.

Convention

In 2018, Klabin brought together its leadership at the 2nd Managers’ Convention, with the main goal of reinforcing each leader’s role in achieving maximum performance and aligning the company’s strategic direction. #AtitudeKlabin was the motto of the event, which provided information on the market, the economic scenario and trends in the pulp and paper sector, as well as lectures and activities focused on innovation, culture and diversity. The meeting was attended by 115 managers and 15 directors.

What’s next

In 2019, the job rotation program for the company’s top leadership will begin, with the main goal of creating connection networks between professionals of different businesses and profiles.

From a mapping of potential successors and high potential professionals, Klabin should finalize the design of a development trail for the managerial and coordination levels, integrating a process of career acceleration for these stakeholders. The coordinators will also have access, as of 2019, to an updated version of the Virei gestor, e agora? [I’m a manager. Now what?] program.

—  Training and development initiatives

(GRI 404-1)

Klabin’s people development actions include combined classroom and online programs that promote various methods of learning management, technical and operational topics. The following results demonstrate that the training actions are in line with the organic growth of the company. The following training solutions are considered: technical, behavioral and leadership skills, respecting each employee’s level and career momentum.

The Klabin Business School has goals related to levels of satisfaction, applicability, effectiveness and impact in the business area, such as the goal of 85% satisfaction in the Leadership Program. There are still challenges associated with specific projects, which seek to improve the platform and its performance model. For 2019, the building of a new leadership trail is planned.

>> IN 2018, KLABIN PROVIDED OVER 718,000 TRAINING HOURS TO ITS EMPLOYEES, REPRESENTING AN AVERAGE OF 48.59 HOURS PER EMPLOYEE <<

Average hours of training that the organization’s employees have undertaken by gender

(GRI 404-1)

2018 2017 2016
Men 49.63 47.37 48.73
Women 40.82 39.85 40.47
Total 48.59 46.56 47.84

 

Average hours of training that the organization’s employees have undertaken by employee category1

(GRI 404-1)

2018 2017 2016
Executive Board 4.55 5.45 4.12
Management and Coordination 38.42 32.93 31.58
Technical 60.11 122.3 114.61
Administrative 30.09 17.53 20.62
Operational 51.4 46.31 48.21
Apprentices 23.84 36.38 19
Interns 44.28
Total 48.59 46.56 47.82

1The difference in hours of training in the Technical and Administrative categories mainly refer to a reorganization of the positions by category, used as a premise in the preparation of this report.

—  Stimulus for innovation

Innovation is part of Klabin’s culture. Therefore, the company encourages its professionals to review their behavior and observe their processes from new perspectives, always as a network and in a collaborative manner, creating the right environment for innovation to happen. In line with this strategy, the Klabin Business School (ENK) partnered with Klabin Lab, a work marathon dedicated to solving specific company problems. Through integration with ENK, ideas for improvement projects are presented in one of the knowledge sessions of Rumos 2.0 and forwarded to the Lab, aiming to provide knowledge in agile methodologies and contribute to the creation of quick solutions to problems.

Created in 2018, Klabin Lab has already promoted two editions involving multidisciplinary teams made up of employees, representatives of startups and universities. During this period, Klabin also started the pilot of a course using virtual reality for employees of its units in Paraná, in order to promote learning through interaction with a three-dimensional environment.

>> THE COMPANY ENCOURAGES ITS PROFESSIONALS TO CREATE THE RIGHT ENVIRONMENT FOR INNOVATION TO HAPPEN <<

—  Recognition for those who make the difference

Klabin cultivates the culture of meritocracy that recognizes employees through an individual assessment in their position and salary placement. Under this model, compensation is a direct reflection of performance, recognition and the need for engagement of employees who really make the difference in the business, who have significantly higher performance compared to what is expected for the position, and who contribute to the company’s results and growth.

The Long-Term Incentive (ILP) is an example of acknowledgment and commitment to the retention and alignment of the business strategy. The program, intended for directors and managers, allows the use of a portion of the Manager’s Profit Sharing Program (PPRG) for the purchase of Klabin Units, matched by the company.

Establishing goals is another initiative that ensures appreciation and performance recognition. It involves directors, corporate and unit managers, coordinators, and specialists coming together to set goals and break them down for the team, always seeking to ensure Klabin’s sustainable growth. The results achieved at the end of each cycle affect the leaders’ variable compensation.

Click here to see indicators related to remuneration

Ratio of lowest entry level wage compared to local minimum wage (GRI 103-1, 103-2, 103-3, 202-1)

Klabin does not have internal policies and regulations on the ratio between the regional minimum wage and lower wages paid by the company, as well as on the hiring of managers in the community. Remuneration is based on collective bargaining agreements and refers to the represented categories, regardless of the importance of the business unit. In these cases, the specified minimum wage is generally higher than the minimum wage currently in force for the location. Gender is not a factor when establishing these values. In 2018, the lowest salary paid by the company was 1.03 times higher than the national minimum wage. See the table for information broken down by operating unit.

 

Ratio of lowest entry level wage compared to local minimum wage
Operating unit 2016 2017 2018
Men Women Men Women Men Women
Angatuba 1.51 1.85 1.80 1.80 1.84 1.84
Betim 1.11 1.11 1.09 1.09 1.09 1.09
Correia Pinto 1.24 1.24 1.21 1.21 1.24 1.24
São Paulo 1.85 2.02 1.67 1.97 1.84 1.84
Feira de Santana 1.45 2.13 1.43 2.40 1.43 2.41
Forestry 1.15 1.31 1.15 1.31 1.16 1.28
Goiana 1.22 1.38 1.17 1.31 1.19 1.40
Itajaí 1.44 1.44 1.38 1.33 1.44 1.44
Jundiaí 1.60 1.94 1.57 1.70 1.52 1.74
Lages 1.53 1.70 1.49 1.49 1.52 1.69
Manaus 1.02 1.02 1.61 1.71 1.03 1.03
Monte Alegre 1.76 1.76 1.61 1.71 1.75 1.75
Ortigueira 1.76 1.76 1.71 1.71 1.75 1.75
Otacilio Costa 1.24 1.24 1.21 1.21 1.69 1.24
Piracicaba 1.75 1.80 1.70 1.75 1.74 1.74
Rio Negro 1.12 1.12 1.38 1.24 1.41 1.41
São Leopoldo 1.24 1.24 1.24 1.24 1.24 1.24
Klabin OVERALL 1.02 1.02 1.02 1.02 1.03 1.03

 

—  Internship programs

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

Klabin’s people management is also focused on attracting and developing new talents to train professionals, seeking to ensure the company’s growth. The company employs interns in various locations and 146 students participated in the internship program in 2018.

In the Headquarters in São Paulo, program participants are systematically supervised by tutors and receive behavioral training in several fields of knowledge, participate in job rotation, and develop a project at the conclusion of the internship program. The company is considering converting the initiative into a corporate program in the future, extended to all units.

In Monte Alegre (PR), the Practice Internship Program specifically tries to recruit engineering students enrolled in the last semesters of graduate courses. The third cycle of the program was held in 2018.

—  Diversity and inclusion

(GRI 102-47, 103-1, 103-2, 103-3, 405-1)

Klabin believes that the best decisions are made when the work environment is free of discrimination and characterized by several different points of view, experiences, cultures and ways of life. Therefore, the company seeks to provide job opportunities compatible to people with different aptitudes, skills and life stories.

Men represent 88% of Klabin’s workforce. The percentage of women rose 1% in relation to 2017, reaching 12% of the total direct and indirect employees. The symbolic increase in the number of employees in the 31-50 age group is noteworthy: 61% of the workforce, compared to 57% in the previous period. In general terms, this shows a maturity in the technical, operational and managerial staff, in which the group over 50 years of age has constantly grown over the last three years, the result of a natural workforce evolution process. In the Executive Board, the 31 to 50 age group recorded an increase in the index in recent years.

Regarding the ratio of blacks (including blacks and mixed ethnicity) in the company’s workforce, the result has remained constant over the last three years, stable at 4%. An analysis of the ratio of People with Disabilities (PCDs) shows a constant increase in the time series, both in the proportion of women and in the technical, administrative and operational staff. The evolution of this indicator is the result of Klabin’s efforts to meet the quota established by Law 8213/91 (5% of the workforce, for companies with over 1,000 employees), through partnerships for hiring, promoting accessibility in jobs, as well as raising management’s awareness of the subject. There are goals for hiring PCDs for managers of the People & Management areas in specific units.

Campaign

In 2019, during the month of International Women’s Day, Klabin launched an internal campaign that mobilized the units to promote change, day-to-day diversity and innovation. External speakers and employees told inspiring stories to raise awareness and inspire the internal public on the importance of empowering women.

Wage movement

(GRI 405-2)

The wage mechanisms used by Klabin (promotion, merit-based raises and variable remuneration) are based on recognized performance and career opportunities. Any distinction between remuneration is the natural result of changes in the company’s workforce and structure, regardless of gender, race or age.

Click here to see the indicators related to diversity and inclusion

 

Percentage of employees per employee category, by gender (GRI 405-1)

2016 2017 2018
Men Women Men Women Men Women
Executive Board 93.33% 6.67% 92.86% 7.14% 92.31% 7.69%
Management and coordination 80.97% 19.03% 80.66% 19.34% 80.52% 19.48%
Technical 86.02% 13.98% 85.68% 14.32% 84.50% 15.50%
Administrative 50.42% 49.58% 51.31% 48.69% 49.64% 50.36%
Operational 95.45% 4.55% 95.44% 4.56% 95.37% 4.63%
Apprentices 59.17% 40.83% 52.55% 47.45% 49.73% 50.27%
Interns 53.85% 46.15% 46.53% 53.47% 46.36% 53.64%
Total 89.23% 10.77% 89.24% 10.76% 88.28% 11.72%

 

Percentage of employees per employee category, by age group (GRI 405-1)

2016 2017 2018
Under 30 years of age Between 30 and 50 years of age Over 50 years of age Under 30 years of age Between 30 and 50 years of age Over 50 years of age Under 30 years of age Between 30 and 50 years of age Over 50 years of age
Executive Board 0.00% 26.67% 73.33% 0.00% 35.71% 64.29% 0.00% 46.15% 53.85%
Management and coordination 3.50% 74.17% 22.33% 3.48% 73.50% 23.02% 1.30% 74.03% 24.68%
Technical 23.44% 67.64% 8.92% 26.28% 64.26% 9.46% 20.91% 69.37% 9.72%
Administrative 34.64% 53.28% 12.08% 38.25% 49.78% 11.97% 34.12% 54.67% 11.21%
Operational 31.38% 60.70% 7.92% 33.26% 58.35% 8.39% 28.36% 62.99% 8.65%
Apprentices 99.58% 0.42% 0.00% 99.22% 0.78% 0.00% 100.00% 0.00% 0.00%
Interns 90.38% 7.69% 1.92% 100.00% 0.00% 0.00% 92.72% 7.28% 0.00%
Total 31.60% 59.57% 8.83% 33.88% 56.98% 9.14% 29.93% 60.80% 9.27%

 

Percentage of black employees per employee category1 (GRI 405-1)

2016 2017 2018
Men Women Men Women Men Women
Executive Board 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
Management and coordination 0.24% 0.00% 0.24% 0.00% 0.00% 0.00%
Technical 1.39% 1.90% 1.99% 0.00% 1.89% 0.00%
Administrative 2.10% 1.67% 2.28% 1.35% 2.75% 1.71%
Operational 5.00% 4.68% 4.43% 3.36% 4.35% 2.25%
Apprentices 4.93% 3.06% 2.99% 3.31% 3.80% 2.69%
Interns 0.00% 0.00% 0.00% 0.00% 1.43% 0.00%
Total 4.47% 2.65% 4.02% 1.95% 3.97% 1.67%

¹For the direct analysis of the ratio of the black population in relation to the company’s workforce, only those who declared themselves as such were considered in the baseline, including black and mixed ethnicity.

 

Percentage of people with disabilities (PCDs) among the employees, per employee category (GRI 405-1)

2016 2017 2018
Men Women Men Women Men Women
Executive Board 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
Management and coordination 1.44% 0.00% 1.68% 0.00% 2.07% 0.00%
Technical 2.32% 0.00% 2.15% 0.00% 2.62% 0.00%
Administrative 2.99% 1.67% 2.70% 1.65% 3.33% 2.14%
Operational 2.39% 0.61% 2.44% 1.31% 2.76% 2.81%
Apprentices 0.00% 1.02% 4.48% 0.83% 1.63% 0.00%
Interns 0.00% 0.00% 0.00% 0.00% 0.00% 0.00%
Total 2.35% 1.02% 2.42% 1.20% 2.73% 1.73%

 

Percentage of individuals within the governance bodies of the organization, by gender1 (GRI 405-1)

2016 2017 2018
Men 76.19% 80.00% 81.48%
Women 23.81% 20.00% 18.52%

¹The members of Klabin’s Board of Directors do not declare themselves as black (including blacks and mixed ethnicity) and there are no PCDs

 

Percentage of individuals within the governance bodies of the organization, by age group1 (GRI 405-1)

2016 2017 2018
Under 30 years of age 0.00% 0.00% 0.00%
Between 30 and 50 years of age 19.05% 24.00% 25.93%
Over 50 years of age 80.95% 76.00% 74.07%

¹The members of Klabin’s Board of Directors do not declare themselves as black (including blacks and mixed ethnicity) and there are no PCDs

 

Ratio of the basic salary and remuneration of women to men for each employee category in significant operating units, in BRL1 (GRI 405-2)

The Puma (Ortigueira/PR) and Monte Alegre (Telêmaco Borba/PR) units were considered important for the indicator because they significantly contribute to the company’s EBITDA composition. The information is also presented for Klabin as a whole.

2016 2017 2018
Klabin Monte Alegre Puma Klabin Monte Alegre Puma Klabin Monte Alegre Puma
Executive Board basic salary 0.78 N/A N/A 0.83 N/A N/A 0.78 N/A N/A
remuneration 0.68 N/A N/A 0.67 N/A N/A 0.63 N/A N/A
Management and coordination basic salary 0.84 0.77 1.16 0.85 0.83 1.17 0.86 0.89 1.16
remuneration 0.78 0.73 1.37 0.77 0.81 1.49 0.77 0.85 1.50
Technical basic salary 0.85 0.82 0.70 0.86 0.79 0.79 0.86 0.77 0.69
remuneration 0.83 0.81 0.70 0.86 0.78 0.79 0.85 0.77 0.69
Administrative basic salary 0.85 0.73 0.83 0.86 0.76 0.73 0.83 0.75 0.82
remuneration 0.84 0.74 0.83 0.86 0.76 0.75 0.83 0.75 0.82
Operational basic salary 0.84 0.76 0.62 0.90 0.80 0.68 0.90 0.79 0.69
remuneration 0.84 0.76 0.62 0.90 0.79 0.68 0.90 0.79 0.69
Apprentices basic salary 1.09 0.94 1.00 1.13 1.14 NA 1.10 0.97 1.00
remuneration 1.24 0.94 0.99 1.31 1.14 NA 1.11 0.96 1.00
Interns basic salary 1.06 0.95 0.00 0.94 1.27 1.11 0.91 0.93 1.07
remuneration 1.06 0.95 0.00 0.93 1.27 1.11 0.91 0.93 1.07
Total basic salary 1.24 0.97 0.61 1.26 0.96 0.61 1.20 0.90 0.61
remuneration 1.15 0.99 0.58 1.17 0.94 0.59 1.13 0.86 0.58

¹Remuneration includes nominal salary + short-term incentives (ICP) + long-term incentives (ILP). There were no directors at the Puma and Monte Alegre units during the period considered.

—  Appreciation for life is the main purpose

(GRI 103-1, 103-2, 103-3, 403-1)

To be more critical than the procedures themselves and always act as protagonist to ensure people’s safety. This is the attitude that Klabin encourages among its employees and is summarized in the purpose that guides everyone’s operation to achieve operational efficiency and deliver extraordinary results – “Appreciating Life: a caring gesture”. The purpose reinforces people’s autonomy for management that will result in safe production for all.

To that end, the company has its own Health and Safety Management system guided by three fundamentals: visible commitment, line responsibility and operational discipline. The system, which applies to all of Klabin’s operations and covers both its own employees and service providers, establishes guidelines and management tools that meet the requirements in line with the certification standard.

A review of the management system is planned for 2019, intended to strengthen the essential tools according to the degree of maturity and necessity of each operational unit, reducing bureaucracy and lending greater autonomy to operations in order to ensure greater adherence to the reality of each location.

In May 2019, Klabin performed a Safety Culture diagnosis using the Hearts & Minds – H&M methodology, in the Klabin Packaging Business, including the Corrugated Board, Recycled and Bag Businesses. With strong adherence, the survey takes a look at cultural evolution in safety and helps create strategies on this issue. This aspect has also been the focus of work by the Paper and Forestry Businesses since 2016, in the elaboration of a strategic plan to guarantee safe production.

 

—  Stimulating the preventive attitude

Klabin has a safety reporting routine (behavioral deviations, risk conditions and incidents of low potential) that can be performed by any employee, whether own or third-party, either electronically or physically, and can be anonymous, if necessary. Reports are encouraged by leadership, including proactive goals and indicators for the areas. The occurrences (accidents and incidents of serious and fatal potential) are evaluated as high potential and investigated, generating action plans that foresee solutions and prevention of new occurrences.

Safe Decision is also available for employees, which is a tool that guarantees the right of any professional to stop or not start activities whenever they encounter a condition that could represent a risk to people or assets. Some Klabin operations have a clear and explicit consequence policy that promotes ​​recognition for such preventive attitudes and also establishes sanctions for inappropriate behavior regarding safety.

Good practices shared

The Contractor Security Committee, one of the Contractor Management tools used by the company, allows the sharing of good practices between own and contracted employees and among outsourced companies themselves. All companies are monitored by means of proactivity and reaction criteria, which place them in a safety performance ranking.

—  Leadership commitment and active care

(GRI 403-2)

In addition to identifying and handling unsafe conditions in facilities and equipment in its operations, to ensure a culture of safe production and the practice of active care among its direct and indirect employees, Klabin requires leader engagement and commitment in this process.

As such, representatives from senior leadership, the Occupational Health and Safety (OHS) team, and key managers and members of the Internal Accident Prevention Committee (CIPA) participate in the Occupational Health and Safety Committees, both at a corporate level and in the units. Corrugated Board operations have a systemic evaluation routine using some of the Health and Safety Management System tools linked to the variable remuneration of the managers. Klabin intends to extend this assessment to all businesses by 2020.

—  Focus on safe behavior

Several actions are implemented in the teams’ routine with an emphasis on the behavioral aspects of safety, those that make up Klabin’s culture and values. By taking the topic to the personal level, active care becomes the main protagonist of these actions. Throughout the year, the company invests in training, campaigns, awareness actions and programs, such as the Atitude 5 Estrelas [5-Star Attitude], Destaques em SSO [OHS Highlights], Caminho Certo [The Right Path], Florestal em Família [Forestry and the Family] and the Gerenciamento Matricial de Segurança [Matrix Model of Safety Management], among others, in order to reinforce the appreciation for life and caring for oneself and others. Activities are also performed by the CIPAs in the units. Learn more about each of them:

5-Star Attitude

Developed at the Monte Alegre (PR) unit, the program focuses on safe behavior, acting in the awareness of employees and expanding their ability to identify and act preventively with respect to the risks of each activity.

As a form of recognition, employees with strong safety performance advance to the “level” of 5 Stars. To be eligible for this honor, they need to complete the following steps: knowledge of standards, perception of developing risks, development of knowledge in OHS, commitment in the recognition phase, and commitment to consolidated OHS.

Destaque em SSO [OHS Highlights]

Developed at the Otacílio Costa (SC) unit, the program’s challenge is to motivate teams and recognize employees’ commitment to using OHS tools and other safety actions in their areas, enhancing active care and teamwork.

Caminho Certo [The Right Path]

Targeting truck drivers transporting wood, this initiative involves quarterly talks on road safety and forums to share stories and experiences, which are published in the comic Boleia [Ride], edited by Klabin and distributed to this audience and their families.

• Florestal em Família [Forestry and the Family]

Programmed visits from spouses or partners of Klabin employees to see their workplace and daily routine, learning about the technology and innovation applied in the processes, as well as all daily safety procedures. Visitors receive guidance on safe behavior during their visit.

• Gerenciamento Matricial de Segurança [Matrix Model of Safety Management]

A management tool used to control safety reports and events, based on three pillars: cross-checking, breakdown and systematic follow-up of information.

—  Prevention and care regarding health and welfare

(GRI 403-3, 403-6)

With respect to managing occupational health at Klabin, appreciating life encompasses prevention initiatives and caring for employee health. To eliminate or minimize risks of this nature, the company has the Service Specialized in Health and Occupational Medicine (SESMT), composed of doctors, nurses and nursing technicians in all units, in accordance with current regulations and legislation. Clinical examinations are performed within the units, facilitating employee access to occupational health professionals.

The Health area monitors all leave and absence indicators (through doctors’ notes) and social security with the National Social Security Institute (INSS), working with the Occupational Safety area to analyze work-related accidents. Goals for managing work-related accidents will be incorporated into occupational health management in 2019.

Also in 2019, leave data provided by healthcare plans, related to ergonomic risks, should be cross-checked and measures taken by the company’s ergonomic committees. (GRI 403-6)

Compliance ensures confidentiality

To ensure the confidentiality of personal information related to workers’ health, Klabin’s medical staff signs a confidentiality agreement on the systems provided by the Healthcare Operator to track employee use, as well as to store medical charts in the outpatient clinics. Access to the company’s healthcare systems is still controlled by the Risk and Compliance Governance system. Klabin’s code of ethics also provides guidelines to this end, to prevent information of this nature from being used for any treatment privilege or differentiation.

—  Initiatives and support programs

Klabin relies on a medical specialty center in the region of Paraná, which provides exclusive service for employees and their dependents, covering about 18,000 people. The company offers subsidies for medication purchases, as well as the Chronic Disease Program (focused on those suffering from high blood pressure, obesity and diabetes) in some units, and the Gympass Program, a benefit to practice physical activities for all employees and dependents who want to join. Other initiatives to promote health and well-being offered by Klabin:

Programa Viver Bem [Live Well Program]

A 24-hour telephone service, 7 days a week, managed by an independent company, which provides guidance to employees in any area, in a first approach, to solve personal problems. It has a team trained to identify the nature of the problem and make referrals to a psychologist, social worker, lawyer or financial adviser. When it comes to Klabin, the matter is referred to the company’s Ombudsman.

Programa Viver Bem Sempre [Live Well Always Program]

This extension of Viver Bem Program focuses on helping employees plan for the future. It includes meetings to discuss issues related to professional maturity, clarification of doubts and guidelines on retirement.

Alcohol and drug abuse prevention program

The main objective of the program, which covers the Monte Alegre, Otacílio Costa and Correia Pinto units, in addition to the Forestry Unit in Paraná, is to contribute to the quality of life, safety and well-being of employees and third parties. Based on random and authorized testing, the company seeks to identify situations involving chemical dependency. From there, it offers help and covers the cost of the treatment. In the case of third parties, the outsourced company receives instructions from Klabin on how to handle the matter. The initiative has received support from family members, local unions and the employees themselves, including spontaneous requests for help treating the addiction.

Benefits plan

(GRI 201-3)

Klabin employees have a pension plan managed by a private and independent entity, in which there is no obligation for the company to hold reserves to ensure pensions. All professionals, regardless of position, can participate by making voluntary contributions. The company’s contribution includes the following modalities:

  • For positions whose salary is less than BRL 4,736 and the employee is over the age of 55, the payment is up to six times the employee’s salary, made when there is a need, and the benefit is cost-free for the employee.
  • For positions with a salary higher than BRL 4,736, employees can contribute between 1% and 9% of their contribution salary. Klabin’s match varies from 100% to 200% of employee contribution, according to their employment term.

Every two years, Klabin promotes the Benefits Fair, allowing employees to keep up to date on the benefits to which they are entitled. The initiative is carried out in all units and gathers suppliers in the fields of healthcare, dental, insurance and private pension plans, as well as company representatives. The event is held on an on-call basis, to cover all work shifts. The team provides information and answers questions about benefits offered to employees and their dependents.

Maternity and paternity leave

(GRI 401-3)

With the increasingly higher ratio of women in the workforce, there is also greater retention in the ratio of women who return from maternity leave and who remain on the workforce 12 months after returning, showing greater stability. In 2018, 94 women and 150 men took advantage of the benefit and 100% returned to work once the leave expired. The retention rate was 83% among women and 96% among men.

Klabin does not directly deliberate specific decisions to retain those who take advantage of maternity or paternity leave. The company does not control the number of people who have the right to the benefit.

See the history of the indicator over the last three years in the following table:

 

2018 2017 2016
Total number of employees who took maternity/paternity leave Men 150 392 409
women 94 64 45
Total number of employees who returned to work, during the reporting period, after maternity/paternity leave Men 150 392 409
women 94 64 45
Total number of employees who returned to work after maternity/paternity leave and who were still employed 12 months after returning to work Men 144 345 409
women 78 50 31
Rate of return Men 100% 100% 100%
women 100% 100% 100%
Retention rate Men 96% 88% 100%
women 83% 78% 69%

 

—  Safety numbers

(GRI 403-2, 403-9)

The methodology for investigating occurrences of high-potential accidents and incidents at Klabin identifies root causes and establishes systemic actions. For information management, specific software is used for all records, which allows filing, monitoring of actions and evaluation of effectiveness.

In 2018, Klabin regrettably reported three fatalities among its indirect employees – one at the Rio Negro (PR) unit during equipment assembly and two other vehicle accidents involving service providers at the Forest Unit in Paraná: one involving a truck and a train during a railroad crossing and the other involving vehicles in repair work on a highway. Klabin provided full support to the families and investigated the causes to generate internal lessons learned from the occurrences, aiming at prevention.

Initiatives that integrated action plans following the investigations included Security Dialogues, the possibility of installing gates and signs at railroad crossings, awareness campaigns involving the CIPA, forest clearing near the railroad and conducting an organizational climate survey focused on safety. Following the fatality, the Forestry Unit plans to expand monitoring through embedded technologies to control driver fatigue – already the case in forest transport trucks – to the other areas that transport inputs for this unit.

Click here to see the indicators related to Klabin’s health and safety performance.

 

Direct and indirect employee health and safety rates and figures for 20181

Direct employees Indirect employees
Number of fatalities as a result of work-related injuries 0 3
Rate of fatalities as a result of work-related injuries 0.0 0.2
Number of high-consequence work-related injuries (excluding fatalities) 5 3
Rate of high-consequence work-related injuries (excluding fatalities) 0.2 0.2
Number of recordable work-related injuries 298 102
Rate of recordable work-related injuries 10.2 5.9

1The main types of direct employee injuries include contusions, incised wounds, excoriation and distension, while indirect employees contemplate incised wound, abrasions, contusions and dislocations. In 2018, there were 29,123,893.83 hours worked by direct and 17,210,526.43 hours worked by indirect employees. The calculation was made based on 1,000,000 hours worked. For own employees, the SAP system database, number of occurrences, and manhours worked were used. For workers who are not employees, but whose work and/or workplace is controlled by Klabin, the database of the senior system and reports made by the business units were used.

 

Direct employee health and safety rates by gender in 2018

Men Women
Number of fatalities as a result of work-related injuries 3 0
Rate of fatalities as a result of work-related injuries 0.2 0.0
Number of high-consequence work-related injuries (excluding fatalities) 8 0
Rate of high-consequence work-related injuries (excluding fatalities) 0.2 0.0
Number of recordable work-related injuries 390 10
Rate of recordable work-related injuries 11.2 6.3

 

Employee health and safety rates by region in 2018

North Northeast Southeast South
Direct employees Indirect employees Total Direct employees Indirect employees Total Direct employees Indirect employees Total Direct employees Indirect employees Total
Number of fatalities as a result of work-related injuries 0 0 0 0 0 0 0 0 0 0 1 1
Rate of fatalities as a result of work-related injuries 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.2 0.1
Number of high-consequence work-related injuries (excluding fatalities) 1 0 1 1 0 1 1 0 1 2 3 5
Rate of high-consequence work-related injuries (excluding fatalities) 1.9 0.0 1.6 0.4 0.0 0.3 0.2 0.0 0.2 0.1 0.2 0.1
Number of recordable work-related injuries 1 0 1 26 9 35 57 0 57 214 93 307
Rate of recordable work-related injuries 1.8 0 1.6 9.3 13.8 10.1 10.8 0.0 9.4 11.0 6.0 8.7

 

Employee health and safety rates by business unit in 2018

Paper
Direct employees Indirect employees Total
Number of fatalities as a result of work-related injuries 0 0 0
Rate of fatalities as a result of work-related injuries 0.0 0.0 0.0
Number of high-consequence work-related injuries (excluding fatalities) 0 3 3
Rate of high-consequence work-related injuries (excluding fatalities) 0.0 0.6 0.3
Number of recordable work-related injuries 43 38 81
Rate of recordable work-related injuries 7.7 7.4 7.6

 

Pulp
Direct employees Indirect employees Total
Number of fatalities as a result of work-related injuries 0 0 0
Rate of fatalities as a result of work-related injuries 0.0 0.0 0.0
Number of high-consequence work-related injuries (excluding fatalities) 0 1 1
Rate of high-consequence work-related injuries (excluding fatalities) 0.0 0.5 0.3
Number of recordable work-related injuries 14 21 35
Rate of recordable work-related injuries 9.7 10.2 10.0

 

Forestry
Direct employees Indirect employees Total
Number of fatalities as a result of work-related injuries 0 2 2
Rate of fatalities as a result of work-related injuries 0.0 0.3 0.1
Number of high-consequence work-related injuries (excluding fatalities) 0 0 0
Rate of high-consequence work-related injuries (excluding fatalities) 0.0 0.0 0.0
Number of recordable work-related injuries 121 31 152
Rate of recordable work-related injuries 14.1 4.1 9.4

 

Packaging and Recycled Materials
Direct employees Indirect employees Total
Number of fatalities as a result of work-related injuries 0 1 1
Rate of fatalities as a result of work-related injuries 0.0 0.7 0.1
Number of high-consequence work-related injuries (excluding fatalities) 3 0 3
Rate of high-consequence work-related injuries (excluding fatalities) 0.3 0.0 0.3
Number of recordable work-related injuries 103 8 111
Rate of recordable work-related injuries 11.4 5.8 10.7

 

Sacks
Direct employees Indirect employees Total
Number of fatalities as a result of work-related injuries 0 0 0
Rate of fatalities as a result of work-related injuries 0.0 0.0 0.0
Number of high-consequence work-related injuries (excluding fatalities) 2 0 2
Rate of high-consequence work-related injuries (excluding fatalities) 1.0 0.0 0.7
Number of recordable work-related injuries 17 4 21
Rate of recordable work-related injuries 5.6 3.7 5.1

 

Corporate
Direct employees Indirect employees Total
Number of fatalities as a result of work-related injuries 0 0 0
Rate of fatalities as a result of work-related injuries 0.0 0.0 0.0
Number of high-consequence work-related injuries (excluding fatalities) 0 0 0
Rate of high-consequence work-related injuries (excluding fatalities) 0.0 0.0 0.0
Number of recordable work-related injuries 0 0 0
Rate of recordable work-related injuries 0.0 0.0 0.0

 

Klabin does not control the number of recordable work-related accidents by incident type on a corporate level, nor the number of potential adverse events (“near misses”) identified. Occurrences recorded that resulted in over six months of leave were considered in order to account for high-consequence work-related injuries.