Presentation – Klabin

Presentation

THIS IS KLABIN'S 20th SUSTAINABILITY REPORT, PUBLISHED ANNUALLY. THE DOCUMENT GATHERS THE MAIN INFORMATION ON THE COMPANY’S PERFORMANCE AND MANAGEMENT PRACTICES IN THE ENVIRONMENTAL, SOCIAL AND ECONOMIC AREAS FROM JANUARY 1 TO DECEMBER 31, 2018.

(GRI 102-50, 102-51, 102-52, 102-54)

Focused on business partners, customers, employees, suppliers, communities and shareholders, among other stakeholders, this report presents results, facts, important initiatives, perspective for the future, and practices adopted for the handling of issues that were relevant to Klabin and its stakeholders during the period.

This report was prepared in accordance with the GRI Standards: Essential Option.

—  How the content is organized

(GRI 102-45, 102-47, 102-48, 102-53, 102-56)

This report is comprised of nine material topics considered relevant to the management of sustainability at Klabin: Competitiveness and economic results; Business expansion; Wood supply; Certifications; Promotion of local development and relationship with communities; Health and safety of direct and indirect employees; Research, development and innovation; Customer satisfaction and product quality; and the Environment. Klabin’s management initiatives and methods for the relevant topics and related performance indicators are described throughout the report.

The financial indicators refer to all of Klabin’s operating units in Brazil (Klabin S.A.) and Argentina (Klabin Argentina S.A). Social and environmental information, however, refers only to the Brazilian operations. The financial statements, audited by Ernst & Young, abide by Brazilian standards and International Financial Reporting Standards (IFRS), as determined by Brazilian Securities and Exchange Commission (CVM) instructions 457/07 and 485/10. Any revisions of data published in other years are flagged and clarified throughout the Report.

The non-financial information contained in this report was verified by Conecta Consultores, according to standard AA1000AS: 2008, under license No. 000-234. See the Assurance Statement.

For more information on this report, contact Klabin or visit the company’s social media channels.

>> THIS REPORTS PRESENTS KLABIN’S MANAGEMENT INITIATIVES AND METHODS FOR THE RELEVANT TOPICS AND PERFORMANCE INDICATORS <<

—  Materiality

(GRI 102-46)

A materiality study conducted in 2014 with the help of an external consulting company pointed out the issues considered relevant to Klabin, according to its stakeholders, contributing to direct its operations in the short, medium and long terms. Since then, these issues have been constantly monitored and updated through several dialogue and relationship interactions promoted by the company with its stakeholders, such as community meetings, events for different stakeholders, auditing processes and customer visits. The process also considers the social and environmental contexts in the regions where Klabin operates.

Good examples are the Local Development Forums in the cities of Correia Pinto and Otacílio Costa, in the state of Santa Catarina, and Goiana, in the state of Pernambuco, implemented from specific materiality studies, which provided an even more attentive picture on the reality of these areas. Learn more in Local Development.

In addition, since it voluntarily started to support the Sustainable Development Goals – a United Nations (UN) initiative to engage society on an agenda focused on the greatest global challenges in this area –, Klabin began to include the correlation between the SDGs, its initiatives and material topics in its Sustainability Report, which demonstrates the vitality of the study.

—  Understand the process of defining materiality

(GRI 102-46)

  • 1. IDENTIFICATION OF RELEVANT TOPICS FROM THE EVALUATION OF INTERNAL AND EXTERNAL DOCUMENTS, RESEARCH AND REPORTS

  • 2. IDENTIFICATION AND PRIORITIZATION OF STRATEGIC STAKEHOLDERS BY THE SUSTAINABILITY COMMITTEE

  • 3. CONSULTATION AND PRIORITIZATION OF THE TOPICS ACCORDING TO SUGGESTIONS OF CONSULTED STAKEHOLDERS

     

  • 4. Analysis of results

     

  • 5. VALIDATION OF RESULTS BY THE SUSTAINABILITY COMMITTEE AND KLABIN’S SENIOR MANAGEMENT, TAKING INTO ACCOUNT THE ALIGNMENT BETWEEN THE COLLECTED INFORMATION AND THE COMPANY STRATEGY

     

  • 6. FINAL REPORT, DETAILING THE PROCESS OF MATERIALITY AND RELATING THE RESULTS TO THE GRI GUIDELINES

  • 7. STUDY OF CORRELATION BETWEEN MATERIAL TOPICS AND THE UNITED NATIONS (UN) SUSTAINABLE DEVELOPMENT GOALS (SDGs)

  • 8. PERMANENT UPDATING OF MATERIAL TOPICS BASED ON PERCEPTION SURVEYS (2016, 2017 AND 2018) AND FORUMS WITH THE COMMUNITY (SINCE 2016), ANNUAL AUDITS, PERIODIC VISITS TO CUSTOMERS AND COMPANY EVENTS FOR DIFFERENT STAKEHOLDERS (EMPLOYEES, SHAREHOLDERS, SUPPLIERS AND CUSTOMERS) SUCH AS THE “INOVA KLABIN” EVENT HELD IN 2018

—  Stakeholder consultation and engagement

(GRI 102-40, 102-42, 102-44, 102-49)

Consultations for the definition of materiality, in 2014, included Klabin directors and external experts, through face-to-face interviews, by email or phone; and employees, customers, suppliers, investors and other stakeholders, through online questionnaires. Community leaders, rural producers and local government representatives were also consulted during field visits to Klabin units in Paraná, Santa Catarina and Pernambuco. At the time, over 1,000 responses and/or interactions were recorded. Since then, stakeholders have been consulted by the company on several occasions to update, validate and further detail these topics.

In addition to the materiality process, Klabin constantly promotes engagement initiatives with several stakeholder groups: employees, customers, suppliers, regulating bodies, certifying bodies, public agencies, educational institutions, the press, trade unions, civil entities, social organizations and local communities. So far, however, none of these regular contacts have pointed out the need to change or exclude any current material topic, nor any consequent aspect or threshold.

These groups are mapped upon the analysis of information in internal documents, such as policies and procedures, as well as relationship reports and interviews with leaders.

Stakeholders are consulted with the support of independent consultants, resulting in a process that involves analyzing relationship criticality and understanding their needs and expectations. Data are compiled and stakeholders are arranged in groups which are given priority according to criticality, dependency and impact criteria. The process directs Klabin’s engagement actions and approaches based on dialogue, information exchange and the search for solutions and agreements.

Learn more about consultations with other stakeholders and relationship actions in the Promoting Local Development chapter.

 

Engagement approach with some priority stakeholders1

(102-43)

Stakeholder groups Employees Customers Suppliers Regulatory bodies Investors
Engagement actions Meetings or direct contact, intranet and Daily Safety Dialogues (DDS) Contact by phone and e-mail;
audits;
technical visits;
presence of the Klabin team at the customer’s facilities (occasional); customer portal
Contact by phone and e-mail;
negotiation meetings
Follow-up technical visits;
contact by phone and e-mail;
submission of online forms; Investor Report;
Financial statements;
investor portal
Meetings or direct contact, IR website, periodic information disclosed by the CVM, capital market events, visits to operating units
Main results Positive relationships, no conflicts Positive relationships, insights for innovative solutions and increased transparency Positive relationships, long-term contracts and established partnerships Positive and long-term relationships Positive, mostly long-term relationships. Insights, suggestions, recommendations and complaints are referred to Management
Frequency Daily Daily and on demand Periodic and on demand Periodic and on demand Daily
Key topics and concerns raised Assistance to labor claims;
(wages, benefits and workplace infrastructure improvements);
ensuring health and safety in the workplace;
training and development;
career plan
Product quality;
price reduction and attention to deadlines;
technical assistance;
innovation and development of new solutions;
transparency in the relationship
Revenue (within the deadline);
partnership;
compliance with the terms of the contract;
expansion of products offered and units served;
higher market value
Payment of taxes and fees;
job and income generation;
support for social projects;
compliance with legislation, standards and technical standards;
improving the relationship to a more frequent and consolidated partnership
Evolution of results and prospects, understanding Klabin’s markets, long-term strategy

¹ Except for the Investors column, the aforementioned actions are the result of a Klabin engagement mapping study with priority stakeholders carried out in the following units: Angatuba (SP), two units in Jundiaí (SP), Lages (SC), Manaus (AM) , Piracicaba (SP) and Rio Negro (PR).

—  Material Topics

(GRI 102-44, 102-47, 102-49)

The list of GRI Material Topics and the thresholds of each topic were updated in 2018, based on the aforementioned engagement actions.

Associated material topic GRI Material Topic* Material topic within the organization? Material topic outside the organization?
Competitiveness and economic results Economic Performance Yes (all operations) Yes (customers, suppliers and investors)
Promoting local development Market presence Yes (all operations) Yes (surrounding communities, suppliers and public bodies)
Promoting of local development Indirect economic impacts Yes (all operations) Yes (surrounding communities, suppliers and public bodies)
Wood supply Purchasing practices Yes (all operations) Yes (suppliers and investors)
Competitiveness and economic results Fight against corruption Yes (all operations) Yes (customers, suppliers and investors)
Business expansion Unfair competition Yes (all operations) Yes (customers and public bodies)
Environment Energy Yes (all operations) No
Environment Water and effluents Yes (all operations) Yes (surrounding communities)
Environment Biodiversity Yes (forestry operations) Yes (surrounding communities)
Environment Emissions Yes (all operations) Yes (investors)
Environment Effluents and waste Yes (all operations) Yes (surrounding communities)
Certifications Environmental assessment of suppliers Yes (all operations) Yes (customers, suppliers, investors and media)
Health and safety of direct and indirect employees Job Yes (all operations) Yes (customers and suppliers)
Health and safety of direct and indirect employees Occupational health and safety Yes (all operations) Yes (customers and suppliers)
Health and safety of direct and indirect employees Training and education Yes (all operations) Yes (customers and suppliers)
Health and safety of direct and indirect employees Diversity and Equality of Opportunities Yes (all operations) Yes (customers and suppliers)
Certifications Freedom of association and collective bargaining Yes (all operations) Yes (customers, suppliers and media)
Certifications Child labor Yes (all operations) Yes (customers, suppliers and media)
Certifications Forced or compulsory labor Yes (all operations) Yes (customers, suppliers and media)
Certifications Human rights assessment Yes (all operations) Yes (customers, suppliers and media)
Promoting of local development Local communities Yes (all operations) Yes (surrounding communities, suppliers and public bodies)
Certifications Supplier social assessment Yes (all operations) Yes (customers, suppliers, investors and media)

* The following GRI topics are reported throughout the document, but are not considered material topics for Klabin: “Materials”, “Environmental Compliance”, “Rights of Indigenous and Traditional Peoples” and “Socioeconomic Compliance”.