KODS 2030

100% of priority municipalities with participative management encouraged

Municipalities: Telêmaco Borba, Ortigueira, Imbaú, Ventania, Tibagi, Otacílio Costa, Correia Pinto, Lages, Goiana, Angatuba and Rio Negro.
The municipalities are priorities according to the criteria listed below, the impact of Klabin's operations on local social dynamics, in addition to the volume of forestry operations in the current year:

1. Large or medium-sized Company operations;
2. High/average economic dependence on the Company;
3. Low development indexes compared to other municipalities or GDP below the Company’s EBITDA;
4. Klabin social programs were developed in the municipality.

All the other municipalities will be covered by specific programs from other lines of action established by the private social investment platform: environmental education, culture, and citizenship, through the Semeando Educação, Resíduos Solidos, and Matas Sociais programs.

Priority municipalities according to the volume of forest operations in the current year
 

Klabin’s acceptance rate in local communities

For the third consecutive year, Klabin exceeded the target indicator of the survey (80%), reaching 81.4% acceptance in the communities where it operates. The indicator encompasses the average results of operations in Paraná (12 municipalities), Santa Catarina (9 municipalities), Angatuba (5 municipalities), Rio Negro (PR), Paranaguá (PR), and Goiana (PE).

The survey indicator corresponds to the average of eight dimensions: perception of impacts, economic development, environmental preservation, job creation, commitment, image, social stimulation, and business promotion.

GRI-203-1

Social private investment (R$ million)

In 2023, a total of BRL 33.28 million was invested in private social investment, with BRL 8.28 million from incentivized resources and BRL 25 million in non-incentivized donations. The three largest Non-Incentivized Donations in 2023 were allocated to Citizenship and Culture, representing 20.8% of the total amount allocated to non-incentivized donations for the year.

Percentage of distribution of financial resources by theme (R$ million)

Environmental investments (BRL)

Priority initiatives associated with the private social investment strategy

The commitment to local development is part of Klabin's essence and is outlined in its Sustainability Policy. In practice, the work with communities is conducted based on engagement with them through an economic, environmental, and social agenda built with the participation of a wide variety of stakeholders.
Social responsibility and community relations initiatives include education and training projects for the job market, family farming, and regional solid waste management, as well as a program to support public management planning. All operational impacts of industries and forestry operations are identified, mitigated, or reduced, fostering operation under the highest standards of sustainability. The negative impacts are also mapped and can be consulted in Engagement Initiatives.
The following internal policies and documents guide the Company on this topic:
•    Klabin's Sustainability Policy,
•    Klabin's Sustainability Vision,
•    Stakeholder Engagement Policy,
•    Reputational Capital Policy,
•    Code of Conduct,
•    Anti-Corruption Manual,
•    Policy for Diversity and Promoting Employability,
•    Manual and Procedures from the area of Social Responsibility and Community Relations,
•    Forestry Goals,
•    Social and Environmental Action Plan,
•    Stakeholder Engagement Plan,
•    Regulatory policies such as environmental legislation, certifications, and investment bank standards (See more in Certifications and Environment),
•    Sustainable Development Goals and the Klabin 2030 Agenda (KODS).

Private Social Investment

Through the Private Social Investment Platform, Klabin directs investments to four lines of action, divided into two axes: Land and People
 Klabin Education; Klabin for Local Development; Klabin Environmental; Klabin Cultural. Open notices can be found on the Prosas website.

Objectives and targets 2023

Stakeholder Engagement Plan

Klabin's Stakeholder Engagement Plan establishes an internal procedure for guiding the processes of identifying, classifying, acting, and communicating with stakeholders applicable to its operations and those of critical suppliers. By 2024, the document was approved by the Executive Board.

In summary, the procedure addresses the following items:

1. Identification and classification of stakeholders:
   According to the Stakeholder Engagement Policy, Klabin's stakeholders are grouped into the following categories: investors, shareholders, and financial institutions; direct and indirect employees; customers; suppliers; government; educational and research institutions; press; unions; trade associations; industry associations; and neighboring communities (see table below).
    

2. Vulnerable groups identified from each category:
   Klabin identifies the presence of traditional communities (quilombolas, indigenous, and faxinalenses) located within a 10 km radius of the forest management areas and establishes measures to ensure the protection of their rights. This process is based on the principles of Free, Prior, and Informed Consent (FPIC), which ensures transparency in the relationship with the communities and respect for their decisions, and the company's refusal to operate in prospected areas that are adjacent to communities or that impact their ways of life. For more information, access Human Rights.
    

3. Stakeholder Matrix:
    

Local stakeholder engagement strategy

Mitigation Approach

• Operational dialogue and monitoring: This channel establishes a means of direct and continuous communication with neighboring communities. It aims to provide advanced information about planned company operations, allowing stakeholders to identify, discuss, and evaluate both the beneficial and adverse impacts of these activities. Additionally, it allows for the proposal of measures to prevent, reduce, or mitigate these adverse impacts.
• Anthropic Monitoring Committee: Composed of municipal secretaries, representatives from the social assistance, health, and education departments of the municipalities of Ortigueira, Imbaú, and Telêmaco Borba, and other representative institutions, the committee aims to monitor areas of Social Assistance, Education, Health, and Public Safety. Meeting quarterly serves as a direct and continuous communication channel between the company and local authorities. The committee enables continuous evaluation of relevant topics, identification of new leaders, and updates on project progress, among other aspects.
• Klabin in the community: Held in urban and rural environments, these events aim to expand the population's knowledge about the company's forestry and industrial operations as well as its social actions.
• Basic Indigenous Environmental Plan (PBAI): The Basic Indigenous Environmental Plan (PBAI) was developed through a participatory consultation process involving the company, the National Indian Foundation (Funai), and indigenous communities. In addition to infrastructure projects in Indigenous communities, the PBAI also includes actions related to the environment, income generation, valuing Kaingang culture, and promoting education.

Mitigating actions

Klabin works to prevent or reduce the negative impacts of its forestry and industrial operations, such as dust, unsafe driver behavior, poor road conditions, odor, and noise from factories, among others.

One of the main issues raised by communities is the dust generated by truck traffic in municipalities with forestry operations. The impact is monitored by the number of dust complaints per kilometer traveled in communities (total complaints received divided by total kilometers traveled in communities during the year).

Despite progress, the company is challenged by the growth of its operations, which also increases the number of municipalities and communities impacted by its activities. Examples of mitigation measures include:

• Humidification of roads;
• Coating with successive applications of aggregate and bituminous binder;
• Preliminary analysis for transport route optimization to avoid communities;
• Selective asphalting;
• Installation of individual sprinklers on isolated properties.
  
   

Availability of Communication Channels for local communities

Communication channels are fundamental for establishing and maintaining meaningful connections with stakeholders.
 

1. Internal Communication Channels

2. External Communication Channels:

• Press relations
• Social networks and Klabin's institutional websites
• Klabin in the Community Event: The action takes place in municipalities where the company has industrial and forestry operations, showcasing Klabin's work—from forest planting to the final product—and the social programs implemented in the city.
• Klabin in the community magazine and platform: Aims to publicize Klabin's socio-environmental programs conducted in partnership with public authorities, schools, NGOs, companies, and individuals.
• Klabin Minute: A bi-weekly radio program on major stations in Paraná and Santa Catarina territories, covering Klabin's work, news/innovations, and its Sustainability, Social Responsibility, and Environmental Responsibility actions.

Grievance Mechanisms for Communities

Klabin's Integrity and Ombudsman Channel

It is an exclusive and confidential resource for anonymously or identified reporting of conduct that violates Klabin's ethical principles and conduct standards and/or applicable laws. Access here.

Talk to Klabin - Klabin Social Demands (KDS)

Talk to Klabin provides the following communication channels for receiving external public demands such as requests, complaints, suggestions, doubts, compliments, and criticisms related to the company's operational activities:

• Email: faleklabinpr@klabin.com.br
• Telephone lines: 0800-728 0607 (Paraná and São Paulo) and 0800 721 0228 (Santa Catarina)
• Klabin website - Contact us: https://klabin.com.br/fale-conosco

Adaptation Approach

Description of aspects associated with managing the relationship with local communities

Conducting local stakeholder or community impact assessment : Following an internal procedure, the pre-operational stage includes an initial visit to the location that is to receive an operation, to survey current conditions, the need for adjustments, possible impacts involved and ways of mitigating them, including the process of dialog with the community. 

Capacity building for local stakeholders to ensure they can communicate with the company: There are pre-operational dialogues (door-to-door or community meetings) where Klabin's operational information is presented, such as the volume of wood, the period of the operation, transportation, and community safety. All the agendas include a presentation of the impacts that the operation could have on the community (dust, speed, and flow of heavy vehicles - mainly timber transport, etc.), as well as the dissemination of communication channels, information about the forestry operation, and clarification of doubts. Specifically for traditional communities, the company's procedure is to apply FPIC (Free, Prior, and Informed Consent) using and respecting the community's consultation methods in the case of operations in areas up to 10km from these communities. We reinforce the company's refusal to operate in areas that border the communities or have an impact on their way of life.    

Regular surveys/reviews of perceptions for local stakeholders on engagement strategy: The Community Acceptance Survey, carried out annually, corresponds to the average of eight dimensions: perception of impacts, economic development, environmental preservation, job creation, commitment, image, social and business stimulus. The Acceptance Index is a goal shared by all Klabin employees and executives. For more information, visit Local Development and Impact on Communities.  

For two consecutive years, Klabin has exceeded the survey's target indicator (80%), having reached 81.4% acceptance in the communities where it operates by 2023. The indicator includes the average results of the operations in Paraná (12 municipalities), Santa Catarina (9 municipalities), the Angatuba region, the interior of São Paulo (5 municipalities), Rio Negro (PR), Paranaguá (PR) and Goiana (PE).  

Meeting with local stakeholders to identify emerging concerns: In addition to the Anthropic Monitoring Committees, the Company also conducts Forestry Pre-operational Meetings: Klabin's operational information is presented, such as timber volume, period of operation, transportation and community safety. On all agendas, the impacts that the operation may have on the community are presented (dust, speed, and flow of heavy vehicles - mainly timber transportation, etc.). 

Tracking of grievances: All the complaints received through the means of communication made available by the Company are registered on the KDS (Klabin Demandas Sociais) platform and/or the Ombudsman Channel, according to the nature of the complaint, following the handling flow for each complaint.  

Stakeholder engagement programs are applied at all local operation: All operations follow the minimum protocol of mapping local impacts, providing communication channels for the community, as well as organizing records of the demands received by these channels and stakeholders. In addition, for locations with priority operations, there is a linked target for participatory management encouraged within KODS 2030.