Local development and impact on communities

GRI-203-1

Private Social Investment (millions of R$)

Through its Private Social Investment Platform, Klabin directs investments across four areas of action: Development, Environment, Education, and Culture.

Open calls for proposals are available on the Prosas website.

In 2025, private social investment totaled R$ 22.08 million, of which R$ 20.82 million was allocated to non-incentivized donations and sponsorships. The three largest non-incentivized donations in 2025 were directed to Citizenship and Culture, accounting for 46% of the total amount allocated to non-incentivized donations during the year.

Distribution of financial resources by theme – Environmental, Social, and R&D&I (R$ million)

Note: In 2025, a modernization project was implemented at Monte Alegre, including the installation of a new recovery boiler (CDR3), which increased environmental investment spending.

Environmental investments (R$)

Note: In 2025, a modernization project was implemented at Monte Alegre, including the installation of a new recovery boiler (CDR3), which increased environmental investment spending.

Priority initiatives under the private social investment strategy

Klabin Transforma Matas Sociais (Klabin Transforms Social Forests)

The Matas Sociais (Social Forests) Program reflects Klabin’s Sustainability Policy by supporting the development of the communities where the Company operates.

Implemented in 11 municipalities in Paraná and five in Santa Catarina, the Matas Sociais (Social Forests) Program supports small- and medium-sized rural producers throughout various stages of production, from compliance with environmental regulations to assistance with food marketing. The program also fosters training, farm diversification, and the formation of associations and cooperatives.

The overall results for 2025 are:

• 480 partners served
• 1,000 tons of Ecosolo distributed
• 269 registered springs and 28 restored

In 2025, cooperatives supported by Matas Sociais (Social Forests) supplied 140,000 kg of food to the Company’s cafeterias at the Ortigueira, Monte Alegre, and Lagoa units, as well as to the Klabin Ecological Park and social initiatives such as the “Feira do Bem” in Telêmaco, which exchanges recyclable waste for food. These sales generated R$ 570,000 in revenue. 

The KPI related to this initiative is income generation and improved quality of life.

Klabin Transforma Território Circular (Klabin Transforms Circular Territory)

Since 2012, the Território Circular (Circular Territory) Program, developed in partnership with the Caminhos do Tibagi Intermunicipal Consortium, has implemented a range of initiatives to support selective waste collection in seven municipalities in the Campos Gerais region of Paraná: Telêmaco Borba, Imbaú, Ortigueira, Sapopema, Reserva, Rio Branco do Ivaí, and Tibagi.

The overall results for 2025 are:

• 2,400 tons of recyclables recovered during the cycle (8,000 tons since 2021); 
• R$6.5 million in cumulative revenue;
• 109% increase in professionals’ average income;
• Production capacity increased from 4.92% to 13.9%;
• 1,080 training sessions, 52 exchanges;
• 7,664 people reached through educational initiatives.

ReciclaTB, a cooperative based in Telêmaco Borba, became a social franchise in late 2024. By 2025, its members were earning an average of R$4,293 per month, making it the cooperative with the highest per capita income in Brazil and a national benchmark.

In 2025, the program also launched the Paper Protocol, a pioneering initiative that connects recycling cooperatives directly with Klabin’s recycling plants, bringing greater standardization, traceability, and quality to the sale of recyclable paper. The initiative combines technical training with tailored action plans and began with a pilot at Klabin’s Piracicaba Unit, involving the ReciclaTB and CoopaTB cooperatives, which were enabled to sell directly to Klabin. In March 2026, the pilot became operational, with paper scrap from the cooperatives in Telêmaco Borba delivered directly to the Piracicaba Unit. By reducing intermediaries, the model increases cooperatives’ profitability while strengthening the recycling supply chain.

The KPIs for this initiative are:

• Support for municipalities in complying with the National Solid Waste Policy;
• Facilitation of selective waste collection in the municipalities where Klabin operates; 
• Increased income for waste pickers and their transition to social entrepreneurship.

Klabin Transforma Semeando Educação  (Klabin Transforms: Sowing Education)

The Klabin Semeando Educação (Sowing Education) Program aims to contribute to improving public education by supporting teacher training across municipal school systems. In doing so, the program seeks to help contribute to higher Basic Education Development Index (IDEB) scores.

Through 2024, the program focused on training school management teams and teachers of Portuguese, Mathematics, and Natural Sciences.

In 2025, we took a strategic pause to reassess and refine the program’s purpose. We held a series of meetings with participating municipalities to redesign the program and define new training priorities that better reflect local needs, expectations, and realities. With the new scope in place, the program resumed its training activities in 2026.

The KPIs for this initiative are:

• Improved quality of education in the municipalities where Klabin operates, as measured by higher IDEB scores.
• Development of a more skilled workforce for the company.

Klabin’s commitment to local development is embedded in its Sustainability Policy. In practice, the Company works closely with communities through an economic, environmental, and social agenda shaped in collaboration with a broad range of stakeholders.

Local development efforts are implemented through initiatives that strengthen communities and support public policies aligned with the company’s strategic priorities. These initiatives include projects focused on education, family farming, environmental education, and solid waste management.

The social impacts of industrial and forestry operations are identified, mitigated, or reduced to ensure that activities are carried out in line with the highest sustainability standards.

The following internal policies and documents guide the Company’s approach to this matter:

• Klabin Sustainability Policy
• Klabin’s Sustainability Vision
• Stakeholder Engagement Policy
• Policy on Fundamental Rights in Labor Relations
• Diversity and Employability Promotion Policy 
• Supplier Social and Environmental Responsibility Guidelines
• Reputational Capital Policy
• Code of Conduct
• Anti-Corruption Policy
• Social Responsibility and Community Relations Manual and Procedures
• Stakeholder Engagement Plan
• Regulatory policies – environmental legislation, certifications, and standards of investment banks (see more under Certifications and Environment)
• Guidelines for Climate Change Management – ​​Adaptation and Mitigation
• Sustainable Development Goals and the Klabin 2030 Agenda (KODS)

Klabin has a stakeholder engagement policy that sets out guidelines for identifying and classifying stakeholders, as well as for engagement and communication with them. The policy applies to Klabin’s own operations and businesses, as well as to those of critical suppliers, and is approved by the Executive Board.

In summary, the following items are addressed:

1. Identification and classification of stakeholders: In accordance with the Stakeholder Engagement Policy, Klabin’s stakeholders are grouped into the following categories: investors, shareholders, and financial institutions; employees and contractors; customers; suppliers; government authorities; educational and research institutions; the press; labor unions; professional bodies; industry associations; and neighboring communities.
2. Identification of vulnerable groups: Klabin identifies traditional communities—including quilombola, Indigenous, and faxinalense communities—located within a 5 km radius of its forest management areas and establishes measures to safeguard their rights. Operations are continuously monitored to prevent and mitigate potential impacts on these communities’ livelihoods. Where activities may affect the territories of traditional communities, the Company applies the principle of Free, Prior and Informed Consent (FPIC), in line with applicable guidelines and best practices. The Company does not operate in areas that border traditional communities or could adversely affect their way of life. For more information, see Human Rights.
3. List of Interested Parties:

Local stakeholder engagement strategy

Mitigation approach

Dialogue and operational monitoring: This channel provides a direct and ongoing means of communication with surrounding communities. It is designed to keep them informed in advance about planned company operations, enabling them to identify, discuss, and assess both the positive and negative impacts of these activities. It also provides an opportunity to propose measures to prevent, minimize, or mitigate potential adverse impacts.

Anthropogenic Impact Monitoring Committee: Composed of municipal secretaries and representatives from the social assistance, health, and education departments of the municipalities of Ortigueira, Imbaú, and Telêmaco Borba, as well as representatives of other relevant institutions, the committee monitors issues related to social assistance, education, health, and public security. Meeting quarterly, it serves as a direct and ongoing communication channel between the Company and local authorities. The committee enables continuous assessment of key issues, identification of new community leaders, updates on project progress, and discussion of other matters relevant to local development.

Klabin in the Community: Held in both urban and rural areas, these events help strengthen the community’s understanding of the Company’s forestry and manufacturing operations, as well as its social initiatives.

Mitigation measures: Klabin takes measures to prevent or minimize the negative impacts associated with its forestry and industrial operations, including dust, unsafe driving behavior, poor road conditions, and odors and noise from its mills, among others.

One of the main concerns raised by communities is dust generated by truck traffic in municipalities where forestry operations take place. This impact is monitored through the rate of dust-related complaints per kilometer driven in the communities, calculated by dividing the total number of complaints received by the total kilometers driven within these communities during the year.

Despite the improvement in results, the Company continues to face challenges arising from the expansion of its operations, which increases the number of municipalities and communities potentially affected by its activities. Mitigation measures include:

• Road watering;
• Road surfacing with successive applications of aggregate and bituminous binder;
• Preliminary analysis to optimize transport routes and avoid passing through communities;
• Localized paving;
• Installation of individual sprinklers at isolated properties.

Adaptation Approach

Description of aspects related to managing relationships with local communities

Local stakeholder and community impact assessment: As established in internal procedures, the pre-operational stage includes an initial visit to the site where an operation is planned. The purpose of the visit is to assess existing conditions, identify any necessary adjustments, anticipate potential impacts, and define appropriate mitigation measures, including community engagement and dialogue.

Opening Dialogue Channels with Local Stakeholders to Ensure They Can Communicate with the Company: Pre-operational dialogue sessions, including door-to-door visits and community meetings, are held to provide local stakeholders with information about Klabin’s planned activities, including timber volumes, operational timelines, transportation logistics, and community safety. These sessions also address potential impacts on the community, such as dust and heavy vehicle traffic and speeds, particularly from timber transport. They provide information about the forestry operation and available communication channels, while also giving community members an opportunity to ask questions and raise concerns.

Regular surveys/reviews of local stakeholder perceptions of the engagement strategy: The annual Community Acceptance Survey measures stakeholder perceptions across eight dimensions: perceived impacts, economic development, environmental conservation, job creation, commitment, image, and social and business development. The acceptance index is a shared target for all Klabin employees and executives. For more information, see Local Development and Community Impact.

For two consecutive years, Klabin has exceeded the survey’s target of 80%, reaching an 86.3% acceptance rate in 2025 across the communities where it operates. The indicator reflects the average results from operations in Paraná (14 municipalities), Santa Catarina (9 municipalities), São Paulo (3 municipalities), and Pernambuco (1 municipality).

Meetings with local stakeholders to identify emerging concerns: In addition to the Anthropogenic Impact Monitoring Committees, the Company holds pre-operational meetings with local stakeholders. During these meetings, Klabin presents key operational details, including timber volumes, operational timelines, transportation logistics, and community safety. The meetings also address potential impacts on the community, such as dust and heavy vehicle speed and traffic flow, particularly those associated with timber transport.

Complaint Tracking and Handling: All inquiries and complaints received through the communication channels provided by the Company are recorded in the KDS (Klabin Social Demands) platform and/or the Ombudsman Channel, depending on the nature of the communication, and are handled in accordance with the procedures established for each type of case.

Stakeholder engagement programs are implemented across all local operations: All operations follow a minimum engagement protocol that includes mapping local impacts, providing communication channels for communities, and maintaining organized records of requests received through these channels and from relevant stakeholder groups. In addition, priority operations have a related target under the 2030 KODS framework to promote participatory management.

Communication Channel Availability

Communication channels are essential for building and maintaining meaningful relationships with stakeholders.

1. Internal Communication Channels:

2. External Communication Channels

• Media relations
• Klabin’s social media and corporate websites
• Klabin Community Event: This initiative takes place in municipalities where the Company operates industrial and forestry facilities. It showcases Klabin’s activities across the entire value chain—from planting and managing forests to producing the final product—as well as the social programs the Company implements in each community.
• Klabin in the Community magazine and platform: aims to showcase Klabin’s socio-environmental programs and initiatives carried out in partnership with public authorities, schools, NGOs, companies, and local communities.
• Minuto Klabin (Klabin Minute): a bi-weekly radio program broadcast on major stations across Paraná and Santa Catarina, covering the Company’s operations, news and innovations, as well as its sustainability, social and environmental responsibility initiatives.

3. Available channels for ombudsman services, complaints, and grievances

Klabin Integrity Channel and Ombudsman Office

It is an exclusive and confidential channel for reporting, either anonymously or with identification, allegations or concerns regarding conduct that violates Klabin’s ethical principles, standards of conduct, and/or applicable laws. Access it here.

Talk to Klabin – Klabin Social Demands (KDS)

Talk to Klabin provides communication channels for members of the general public to submit requests, complaints, suggestions, questions, compliments, and criticisms related to the Company’s operations.

• E-mail: faleklabinpr@klabin.com.br
• Hot lines 0800-728 0607 (Paraná e São Paulo) e 0800 721 0228 (Santa Catarina)
• Toll-free lines 0800-728 0607 (Paraná and São Paulo) and 0800 721 0228 (Santa Catarina)

Klabin Website - Contact Us - https://klabin.com.br/fale-conosco