Products and partnerships with the value chain and circularity

Percentage of products covered by Life Cycle Assessments (LCAs)

LCA Studies elaborated over last years prove its environmental impact. The ISO 14046 methodology covers the impacts: Depletion of abiotic resources, Global warming potential or carbon footprint- Acidification potential - Eutrophication potential - Human Toxicity- Photochemical ozone generation potential – Land Use – Ionizing Radiation – Water Depletion, Particulate Matter.

Percentage of products covered by LCAs, by business

In line with its strategy to expand the use of Life Cycle Assessment (LCA) studies for its products, Klabin has achieved 100% coverage of its pulp and paper product portfolio with the methodology, and is now progressively expanding to other portfolios.

The studies conducted continue to contribute to the development of a more sustainable portfolio, fostering actions to mitigate environmental impacts and supporting similar initiatives led by customers.

SASB-RT-CP-410a.3

Reducing the environmental impact of packaging throughout its life cycle
 

In addition to new investments in emissions reduction, a more renewable energy matrix, such as that observed in 2022, reflects a lower amount of CO2eq emitted per ton of product, which in 2022 was 148 kg of CO2eq, resulting in a 68% cumulative reduction since the initial measurement reported in 2004.

As manufacturers of renewable-based products, Klabin advocates for the substitution of fossil-based packaging with biodegradable alternatives made from wood pulp fibers. Your products are custom-made to meet the needs of customers, utilizing high-tech and complex combinations of virgin and recycled fibers, encouraging the efficient and maximized use of natural resources. The adoption of renewable, recyclable and biodegradable materials offers the consumer the best and most sustainable options for consumption with the lowest impact. Klabin's bioproducts are essential for the development of a low-carbon circular economy, where society's ever-evolving needs are addressed in harmony with planetary challenges and boundaries.

Benefits of resource efficiency in the use of products for your customers and consumers

An increasingly efficient utilization of natural resources remains a top priority in Klabin's operations, as it progresses toward a more renewable energy matrix.

- In 2022, Klabin's energy matrix reached 90.9% renewable origin, resulting in reduced CO2 footprints for products.

- In terms of water usage, Klabin is continuously striving to reduce specific consumption, achieving a remarkable reduction of 49.2% in cubic meters of water used to produce 1 ton of product, compared to the original base of 45.7 m3/ton measured in 2004 (in 2022, an average of 23.22 m3/ton was used).

- The same behavior is perceived in the amount of CO2 equivalent emitted per ton of product, based on the GHG Protocol methodology, which recorded 68% reduction in the period from 2004 to 2022 (in 2022 an average of 148 kg of CO2 equivalent were emitted per ton of product manufactured by Klabin).

Product Benefits

% recycled fiber used in relation to the total produced

GRI-3-3 GRI-301-2 GRI-301-3

Evolution of the results in the use of recycled materials and recovered products

Wood represents 95% of the main raw materials used in Klabin's production process. All our final products (paper and pulp) have FSC® (FSC-C022516), from the Forest Stewardship Council®, and Cerflor (recognized by PEFC) certifications. This means that the raw materials used undergo rigorous verification of compliance with forest management and chain-of-custody certification standards to ensure the reliability of the supply chain.

The company has four recycled paper production units, three located in the Southeast and one located in the Northeast of Brazil, which together have the largest processing capacity in the country, making the company the largest recycler in Brazil. Recycled fiber represents approximately 49% of the total weight of the products that use this material as raw material. In addition to chips from other plants, the Company has a partnership with waste collector cooperatives that supply this material.

Klabin is FSC® Chain of Custody certified in the aforementioned recycled paper plants. Public certifications (in Portuguese) can be consulted as proof. One hundred percent of the products use wood or paper fiber as raw material.

GRI-301-1 SASB-RT-CP-430a.1.

Materials used, broken down by weight and volume

There was an increase in pulp purchases in 2022 compared to 2021, due to the increased demand resulting from the beginning of paperboard production in Angatuba.

Sulfuric acid, on the other hand, did not show great variation in consumption when compared to 2021. It is noteworthy that in 2022, own production of this input began at the Puma Unit, yielding a total of 19,875 tons. To complement the total consumed, 18,586 tons were purchased, totaling a consumption of 38,461.47 tons in the year.

For aluminum sulfate, consumption in 2022 increased by 13% compared to 2021. The amount is justified by the increased volume of water treatment, due to the increased production in the year (MP27 operated at full capacity at the Puma Unit).

Quicklime consumption in 2022 was 29% higher compared to 2021, due to increased demand, resulting in increased market purchases of this input for replenishment.

SASB-RR-PP-430a.2 SASB-RT-CP-410a.1

Percentage of recycled fiber used

GRI-301-2

SASB-RT-CP-430a.1

Percentage of renewable raw materials consumed

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Revenue from products that are reusable, recyclable or biodegradable

GRI-301-4

Percentage of recycled materials or from sustainable sources

GRI-301-3

Collection of recovered product and packaging data

The percentage of recycled or certified material in 2022 was 8% lower compared to 2021. This fact can be attributed to the Company's expansions, which led to an increase in the consumption of third-party wood. Additionally, strategies have been developed to optimize the forest asset and encourage producers in the region, ensuring a steady supply of certified product to the factories. Currently, Klabin encourages and assists these suppliers in obtaining certification to reduce the number of controlled areas, with the goal of continually improving processes. As for the percentage of participation in the products sold in 2022, the production remained stable compared to the previous year.

Percentage of recovered products and packaging for each product category

SASB-RT-CP-430a.2

Total aluminum purchased

The Company does not purchase aluminum for its processes.

SASB-RT-CP-250a.1

Recall

There was no recall operation, that is, no Klabin product presented safety risks or non-compliance with current regulations.

Klabin’s customers are one of the stakeholder groups that have most encouraged and challenged the Company towards a low carbon economy. This is reinforced by Klabin’s Stakeholder Engagement Policy, which establishes the Company must seek to meet the needs of its customers, considering their growing demands for gains in innovation and sustainability of its products. The topic Customers and products is increasingly linked to innovation and sustainability and is considered one of Klabin Goals for Sustainable Development (KODS).

Klabin carries out annual satisfaction or perception surveys specific to each of its businesses in order to identify strengths and opportunities for improvement in products, processes and operations. Quality, safety, qualification, technical support and sustainability indicators (including life cycle analysis) are part of the consultations. One highlight is the annual Pulp survey, answered by 100% of its customers who represent around 35% of the Klabin revenues in 2022 and gave the company an excellent score (4.4 out of 5 total points, overcoming the target of achieving more than 4 points).

100% of our products are free of materials hazardous to the environment and human health in their composition. Also, none of the raw materials includes minerals and/or other chemical substances sorced from conflict regions.

Klabin is the first Brazilian company in the pulp and paper sector to obtain the Belgian OK Compost certification for its cement bags, which guarantees that the paper completely decomposes in up to 12 weeks without risk of environmental contamination. In addition, our packaging is printed with water-based ink and structured with ecological glue that does not contaminate the soil, resulting in a highly biodegradable product that is reincorporated into the ecosystem in a few months.

Furthermore, it is worth mentioning that Klabin’s food packaging is certified by ISEGA, AIB and FSSC 22000, some of the most advanced standards used to guarantee the origin of paper for food packaging. These certifications clearly specify the prerequisites for the production of packaging that guarantee the health of the final consumer, determining standards such as cleaning and organization of the production area, in addition to water, air and pest controls necessary for this type of production.