Governança corporativa
Governança corporativa
Governance

Learn about the initiatives, projects and activities that strengthened our governance in 2020.

Governance
Governance
Tema

How we are structured

Learn about the initiatives, projects and activities that strengthened our governance in 2020.

Klabin’s main governance bodies, which act synergistically to achieve the company’s economic, social, and environmental objectives, are the General Shareholders’ Assembly, the Board, and the Directors.

Klabin also has Fixed Board Advisory Commissions, divided by themes, which discuss, plan, and validate business support strategies. They follow the company’s growth cycle, monitor operational efficiency, and contribute to the mapping of business opportunities.

In December 2020, the governance structure was reinforced with the creation of three Board advisory committees – the Audit and Related Parties Committee, the Sustainability Committee, and Remuneration Committee – and the election of its members.

The committees meet every two months to assess results and discuss strategies and, extraordinarily, to discuss and approve relevant themes that require rapid consideration by the Board.

Conceptual structure of risk management and internal controls

The company’s risk management practices and internal controls involve its entire regulatory structure, approval assessments, relevant risk indicators, process mapping based on financial reports, and key controls of the areas, as well as integrity assessments, security analysis of potential cyber-attacks, analysis of operational transactions in SAP, and function segregation conflict analysis.

Given its vertical business structure, operational risks in the production process and corporate risks are among those permanently on the company’s radar. Such risks are commonly associated with the following factors:

  • Use of chemicals in production
  • Storage and disposal of chemical waste
  • Explosions, fires, and wear and tear caused by time and exposure to the weather and natural disasters
  • Potential mechanical failures, time required for unscheduled maintenance or repairs, transportation hold-ups, corrections, chemical leaks, and other environmental hazards

We made progress in 2020 with Board approval of the priority operational and corporate business risks for Klabin.

In the ESG Panel, see indicators GRI 102-18, 102-19, 102-20, 102-22, 102-23, 102-24, 102-26, 102-27 and 102-28.

Board and Directors

BOARD – FULL MEMBERS (2021)

Israel Klabin, Daniel Miguel Klabin, Armando Klabin, Vera Lafer, Francisco Lafer Pati, Horacio Lafer Piva, Paulo Sergio Coutinho Galvão Filho, Roberto Klabin Martins Xavier, Celso Lafer, Roberto Luiz Leme Klabin, Sérgio Francisco Monteiro de Carvalho Guimarães, Camilo Marcantonio Junior, Mauro Rodrigues da Cunha. 

FISCAL BOARD – FULL MEMBERS (2021)

João Adamo Junior, João Alfredo Dias Lins, Raul Ricardo Paciello, Maurício Aquino Hallewicz, Louise Barsi.

MEMBERS OF THE BOARD ADVISORY COMMITTEES

Audit Committee and related parties: Amanda Klabin Tkacz, Pedro Guilherme Zan, Luis Eduardo Pereira de Carvalho.

Remuneration Committee: Horacio Lafer Piva, Francisco Amaury Olsen, Luis Fernando Giorgi.

Sustainability Committee: Israel Klabin, Roberto Luiz Leme Klabin, Reinoldo Poernbacher.

STATUTORY BOARD (2021)

Cristiano Teixeira – Director-General 

Marcos Paulo Conde Ivo – Financial and Investor Relations Director

Francisco Casar Razzolini – Director of Industrial Technology, Innovation, Sustainability and Projects 

Flavio Deganutti – Director of the Paper Business 

NON-STATUTORY BOARD (2021)

Douglas Dalmasi – Packaging Director

Gabriella Michelucci – Corrugated Cardboard Director

Jose Totti – Forestry Director 

Jose Soares – Commercial Director of Papers 

Ana Cristina Barcellos Rodrigues – Director of People and Management

Fabio Medeiros – Legal, Integrity and Risk Management Director 

Sandro Avila – Director of Operational Planning, Logistics, and Supplies

Alexandre Nicolini – Director of the Pulp Business

See the Investor Relations website for the résumés of the members of the Board and Directors.

Main practices adopted

Detailed information on the composition of governance bodies, attributions, and other corporate governance practices adopted by Klabin can be accessed on the Investor Relations website: https://ri.klabin.com.br/

*Klabin’s 2020 financial statements can be accessed at: https://api.mziq.com/mzfilemanager/v2/d/1c41fa99-efe7-4e72-81dd-5b571f5aa376/06d70c1d-68a5-32c0-af80-2d983444971c?origin=1

Financial policies

In 2020, two financial policies – financial debt and income – were approved and published, adding transparency to Klabin’s corporate governance.

An end to the payment of royalties by Klabin brands

We achieved a milestone in November 2020, with approval at the Extraordinary Shareholders’ Meeting of the incorporation of Sociedade Geral de Marcas Ltda. (Sogemar). Klabin S.A. became the owner of the Klabin brands and name, and no longer had to pay royalties.

This was another step towards improved corporate governance, ending the last transaction between the parties.

The process was aligned with the recommendation issued by a working group consisting only of independent advisors, who had no direct or indirect stake in Sogemar, with independent evaluations and information provided for shareholders to assess.

New investor relationship channel

In view of the growing number of private investors in the Sao Paulo Stock Exchange (B3), noticed in our shareholder base since 2019, we created Klabin Invest, an exclusive platform for videos and podcasts for investors, with information about the company’s performance, innovation, sustainability, and topics of interest to the financial market.

Official Investor Relations website

Klabin Invest on YouTube

Klabin Invest on Spotify

Klabin Invest*

  • 1st podcast by the company on Spotify and YouTube.
  • More than 13 million people impacted by the initiative on social media.
  • 1st podcast by the company on Spotify and YouTube.

*Measured from 11/30/2020 to 2/28/2021In the ESG Panel, see GRI indicators 102-40, 102-42, 102-43, 102-44, and others related to stakeholder engagement.

Risk management

Our value proposition for risk management – one of the objectives of the Klabin 2030 Agenda and a material theme of the company’s – is to make sure our team’s performance and operations are responsible, which requires the commitment of our team at all levels to be responsive and participatory in decision-making processes.

The Risk Management Policy, approved by the Board, is aligned with the company’s strategic objectives and its structure is aligned with the best market practices.

The Risk Management Policy guides our activities to reasonably assure fulfillment of the established objectives, since uncertainties and future events cannot be accurately forecast or measured and may impact activities and the continuation of the business. 

In 2020, the Policy was revised and approved by the Internal Risk Management Committee and Directors. In addition, we adopted a series of actions and procedures to mitigate possible risk the company is exposed to. At Klabin, we classify according to five categories: strategic; financial; operational; compliance, regulatory and legal; and socio-environmental.

Impact on the business

Our ability to implement a business strategy and maintain our operating results and growth rate depends on several factors. These include the retention and attraction of customers and the establishment and maintenance of partnerships, the hiring and retaining of skilled people, and developing operations in existing markets and expanding into new ones.

Any shortfall, even temporary, among these factors threatens our ability to address risks, uncertainties, and problems that may limit our business strategy and our ability to compete in the market, having a negative effect on our operating results.

Our high degree of dependence on our own planting areas that supply the wood essential to our production processes, for example, represents a significant risk for the company. Damage to these areas can affect results in the value chain. For more information, please go to Partners for wood supply. (link)

We have been living with a new risk in the shape of the Covod-19 pandemic since 2020. While the precise long-term impact is as yet unknown, measures to reduce the spread of the virus have affected the workforce, consumers’ finances, and global financial markets.

Learn more about our tackling of the pandemic in the chapter Covid-19.

In 2020, we developed our business continuity plans in Jundiai (Sao Paulo state) and Correia Pinto (Santa Catarina state), and reformulated Crisis Management Policy.

Evaluation and treatment criteria

Klabin evaluates risk according to critical level, which is based on impact, and vulnerability. The level of each risk depends on objective criteria, standardized and validated internally. The approaches to risk are to reduce it; transfer / share it; retain or accept / exploit it.

Risk mapping

  • Identification: identify risks and understand them.
  • Analysis: assess risk criticality based on the degree of impact and vulnerability.
  • Treatment: decide how to deal with each risk to structure action plans
  • Monitoring: monitor and review risks and action plans. Set indicators.
  • Contingency plan: prepare Contingency and Crisis Management Plans.

Cyber risks

The protection model adopted by Klabin also considers potential cyber attackers:

  • Insiders: employees, service providers and so on, whether accidentally or deliberately.
  • Unfair competition and intelligence services: parties interested in gaining an economic advantage for their companies or countries.
  • Cyber-criminals and organized crime: parties interested in making money from fraud or by selling valuable information and hijacking data (ransomware).
  • Hacktivists: people who have a cause to fight for, such as political or ideological motives.

See our information security protection tools in Information Security. (link)

In the ESG Panel, see INDICATORS GRI 102-11, 102-15, 102-19, 102-20, 102-30 and others related to the material theme of Risk Management.

Ethics and integrity

Ensuring fairness and transparency in relationships with stakeholders, protecting fundamental freedoms in accordance with Brazilian legislation and international agreements, is our value proposition for society related to Ethics and Integrity. The theme is part of the Klabin 2030 Agenda.

Our Integrity Program is the main platform for the management of ethical issues in the company. Aligned with the Klabin 2030 Agenda, it is supported by instruments such as the Code of Conduct, the Anti-Corruption Manual, Integrity training, a communications plan to strengthen the integrity culture, a risk matrix, reputational assessment of third parties, an Integrity channel, and Ombudsman.

In line with the best market practices, the Program promotes the principles and values presented in our Code of Conduct, and complies with anti-corruption and competition laws. The Program’s pillars prevention, detect, and remediate action that may violate the guidelines of the Code of Conduct and current law.

Its activities are continuously improved, considering the integrity risks identified and the demands for the company’s growth and the strengthening of this culture.

In 2020, Klabin approved its Integrity Policy, which formalizes and consolidates guidelines and responsibilities, ensuring the the implementation of its Integrity Program.

In the Panel ESG, see indicators GRI 102-16, 102-17, 205-1, 205-2, 205-3 and others related to the material theme Ethical conduct and integrity .

Code of Conduct update

In 2020, we began a review of the Code of Conduct to comply with new legislation and internal guidelines, and align it with new issues that have been discussed in the corporate environment and the sector. We updated our positioning, adjusting it to our strategic sustainability agenda.

The work – which was still underway at the time this report was finalized – is being done by an external consulting firm and involves the Board and several areas of Klabin, adding their vision and experience in relationships and various situations in the corporate sphere.

Training and awareness

We continuously train our employees to prevent violations and behavior contradictory to Klabin’s values. In 2020, anti-corruption and completion were the focus for Integrity Program training, conducted by webinars and sessions recorded on an internal portal, mainly for the company’s management.

Online Anti-corruption, Ethics, and Code of Conduct training has also been made widely available. In 2020, Klabin held its fifth Ethics Week. This is an annual event focused on awareness of and reflection on ethics and integrity.

  • 100% of commercial area employees participated in competition training in 2020. 
  • Ethics Week, held online, offered reflections on Klabin’s values, and attitudes inside and outside the company.
  • More than 3,000 people participated in the online event, which featured talks, games, and social media engagement.

Complaints channel

Managed by an independent, outsourced company, Klabin’s Integrity and Ombudsman Channel is managed by the Integrity area and the Internal Audit area investigates claims. 

2020 was the first full year of Klabin’s Integrity and Ombudsman Channel, administered by an independent, outsourced company, which improved the classification, handling and investigation of claims.

The Integrity Commission, made up of directors and employees from the Internal Audit and Integrity areas, meets when necessary to deal with claims and related topics.

Access is via  https://www.canalconfidencial.com.br/klabin/ , or on 0800-718-7814. It is confidential and free of conflicts of interest.

In the ESG Panel, see complaints channel indicators.

Commitment to value generation

Voluntary participation in external initiatives reinforce Klabin’s commitment to sustainable development-oriented action. The Global Compact, Sustainable Development Goals (SDGs), and Carbon Disclosure Project (CDP) – some of the public commitments we have engaged with for years – have recently been added to, including the globally-recognized TCFD Supporter, which is a major step in constructing a renewable future.

In the ESG Panel, see GRI indicator 102-12.

Global Compact, since 2003

International mobilization of companies in support of the United Nations (UN) in the promotion of ten principles that bring together fundamental values in the areas of the environment, human and labor rights, and the fight against corruption. The Global Compact is a voluntary contribution by companies in the pursuit of a more sustainable and inclusive global economy. For more information, please go to http://omundoquequeremos.org. Accompany our accountability in the ESG Panel.

TCFD, since August 2020

Klabin became a TCFD Supporter in August 2020. TCFD (Taskforce on Climate-Related Financial Disclosures). The Financial Stability Board (FSB) makes recommendations for companies to incorporate climate-related risks and opportunities into their strategies and financial disclosures. See our indicators in the ESG Panel.

Sustainability Accounting Standards Board (SASB), since 2020

The SASB helps identify, manage and report an organization’s sustainability issues, through environmental, social and governance issues that can influence financial performance. Its main audience is large companies and investors. See ESG Panel.

Carbon Disclosure Project (CDP), since 2006

A global initiative to facilitate dialogue between investors and companies seeking to minimize the environmental impacts of their business in the face of climate change. In 2020, we were ranked for the third consecutive time CDP Leadership Level, in the global management of forests, climate change, and water resources categories, being the only Brazilian company classified at this level in the three categories. The  list comprises 313 companies from all over the world. See our indicators in the ESG Panel.

EcoVadis, since 2019

Klabin is the first Brazilian company to implement the Ecovadis methodology to evaluate its supply chain. This platform is a global provider of enterprise sustainability ratings. In 2020, Klabin, as a supplier, was awarded the Platinum category in the EcoVadis’ Corporate Responsibility Assessment, joining a select group of 1% of companies with the best performance in the Pulp and Paper sector in the world. Topics such as labor practices and human rights, the environment, ethics, and sustainable purchasing are analyzed.

Business Pact for Integrity and Against Corruption, since 2013

We are signatories to the Business Pact for Integrity and Against Corruption, proposed by the Ethos Institute. The Pact fights corruption and promotes more ethical and honest business.

Women’s Empowerment Principle, since 2018

We are signatories to the UN’s Women’s Empowerment Principle (WEP). The WEP is a set of considerations that helps companies incorporate into their businesses values and practices focused on gender equality and women’s empowerment.

FGVces Business Initiatives

A network coordinated since 2010 by FGVces, which brings together companies interested in accessing and producing knowledge and sharing their experiences in advances and challenges in business management for sustainability. It promotes dialogue, study, and the co-creation of proposals, methodologies, and tools.

Forest Dialogue, since 2019

An unprecedented and independent initiative that facilitates interaction between representatives of companies in the forest-based sector, environmental organizations, and social movements to create a vision and commitment. It promotes forest production, and boost efforts to conserve and restore the environment, generating benefits for participants and for society in general. Klabin has participated in the Brazilian Forest Dialogue, since 2009, as a member of the Coordination Council, and the International Forest Dialogue (TFD) since 2014, in which it currently holds co-leadership of the Steering Committee.

National Pact for the Eradication of Slave Labor, since 2013

Launched in 2005, it brings together Brazilian and multinational companies that have made a commitment not to deal with those who exploit slave labor. In addition to economically restricting employers who commit this crime, the Pact promotes decent work, the social integration of workers in vulnerable situations, and the fight against grooming. The companies that are signatories to the initiative participate in the pact’s monitoring process and are committed to making the results of their efforts to ban slave labor public.

Brazil Climate, Forestry and Agriculture Coalition, since 2015

A multisectoral movement among more than 250 organizations which discuss approaches to climate change and ways to contribute to the formulation of public policies focused on the theme. Among its members are the entities that lead agribusiness in Brazil, the main civil organizations in the environment and climate, representatives of academia, representative associations, and leading companies in the areas of timber, cosmetics, steel, pulp and paper.

Conscious Capitalism, since 2020

Conscious Capitalism is a global movement created in the USA. It raises awareness among business leaders of more conscious strategic decision-making and relies on the efforts of different sectors to transform the way they make investments and do business in Brazil. Companies join up voluntarily.

Corporate Sustainability Index (CSI), since 2014

Created in December 2005 by the then BM&FBovespa, now B3, the index evaluates the different aspects of sustainability. Its aim is to induce good practices in the Brazilian business environment. Companies are selected based on criteria established by the Sao Paulo School of Business Administration at the Getúlio Vargas Foundation (EAESP-FGV). Klabin is in the index with level 2 governance.

New S&P/B3 Brazil ESG Index, since 2020

Klabin is among the top ten Brazilian companies that make up the S&P/B3 Brasil ESG portfolio. The new B3 and S&P Dow Jones indexer includes companies with best socio-environmental and governance practices that adhere to the UN Global Compact.

WWF

For the fourth consecutive time, Klabin is part of the Environmental Paper company Index (EPCI), drawn up every two years by the World Wide Fund for Nature. We achieved a score of 90.5% in the Packaging category, an increase of 8.9% in the overall index compared to the previous study, published in 2017. In all, 30 companies in the sector were analyzed, which together represent 18% of the total pulp and paper production in the world.

Recognition

One of Klabin’s main achievements in 2020 after years of pioneering and dedicated work was the invitation to join the COP26 Business Leaders group in preparation for the next UN Climate Conference, COP26, to be held in Scotland, in November 2021.

We are the only Brazilian company invited to join the COP26 Business Leaders group. Made up of ten executives from the private sector, it is responsible for promoting low-carbon economy goals in Latin America.

Another achievement that filled us with pride in 2020 was joining the Dow Jones Sustainability Index (DJSI) in the World Index, and Emerging Markets Index. The index is for the world’s leading companies in economic performance, governance practices, and socio-environmental performance.

We are the only Brazilian company in the global Dow Jones Sustainability Index, which positions us as one of the most sustainable companies in the world.

We were also listed in The 2021 Sustainability Yearbook published by S&P Global, one of the world’s largest financial analysis organizations. ESG data from more than7,000 companies were evaluated, with Klabin being among the 15% most sustainable in the paper packaging segment.

  • Ranked first in Reforestation, Pulp and Paper, and Sustainability by The Best in Agribusiness yearbook. In its fifteenth edition, the Globo Rural magazine award evaluates companies’ performance and management. The company was outstanding in renewable energy, total water consumption and total CO2 emissions.
  • The company won in two categories at the 12th PPI Awards, by Fastmarkets RISI, considered the leading global award in the pulp and paper industry. Cristiano Teixeira, the company’s director-general, was named International CEO of the Year, and Gabriella Michelucci, Director of Corrugated Cardboard, was named Industry Woman of the Year.
  • Klabin was named the most sustainable company in the pulp and paper sector by the Época Negócios 360° Yearbook. This is major recognition of our sustainability initiatives, premised on adjusting productivity to achieve least possible impact on the environment. We were also featured in the Innovation, Corporate Governance and People categories, and ranked second overall in the Pulp and Paper sector.
  • For the third time we featured at the top of the Spott Timber & Pulp ranking, which assesses sustainability management at 50 wood and pulp producers worldwide. Klabin ranked first in the pulp and paper sector globally.
  • We maintained our status in the Best Emerging Markets Performer ranking by Vigeo Eiris, a global provider of research and services in the environmental, social, and governance areas. Emerging market companies are evaluated in six areas: the environment, human rights, human resources, community engagement, business behavior, and corporate governance.
  • We were once again included in the well-established Biggest and Best awards by Exame magazine. We won in two categories – The Best in Agribusiness, and The Best in the Pulp and Paper Category. We have won six awards in the last five editions.
  • For the second year in a row, Klabin ranks among the five most innovative companies in the Chemistry, Paper and Pulp category organized by the Valor Innovation Brazil 2020 award, ranking third in the sector. We were also ranked 24th out of the 150 most innovative companies in Brazil.
  • Klabin was named Company of the Year in Communications by the 46th Aberje Awards, promoted by the Brazilian Business Communications Association, honoring the best communications practices at Brazilian companies. We also won for the best case study in the Ethics, Integrity, and Compliance Category (Ethics Week event) and the best case study in the Printed Media category (packaging folder).
  • Klabin’s Investor Relations team was named the best in Latin America in the Pulp and Paper sector by Institutional Investor magazine.

Learn more about these and other awards on Klabin’s website: https://klabin.com.br/nossa-essencia/reconhecimentos/