Local development and impacts on communities

Strengthened economic, social and environmental agendas in the communities where the Company operates, fostering collaborative planning capacities for the public management towards sustainable development.

Positive influence on the (environmental, socioeconomic) dynamics of the communities, safeguarding the quality, the way of life and the local social relations.

Goals 2030

KSDGs 2030

Percentage of priority municipalities supported by Klabin in initiatives to strengthen public management
2020
73%

Note: *Telêmaco Borba, Ortigueira, Imbaú, Otacílio Costa, Correia Pinto, Lages, Goiana, Angatuba e Rio Negro, Paranaguá, Tibagi, Reserva, Curiúva, Sapopema and Ventania, selected based on the following criteria: 

– have large or medium sized company operations;
– have high/average economic dependence on the company;
– have low development indices compared with other municipalities or have a GDP below the EBITDA of the company. 

All other municipalities will be included in other specific programs of other lines of operation, established by the private social investment platform: environment education, culture, and citizenship. 
– Municipalities deemed as a priority according to the volume of forestry operations in the current year.

Criteria
Municipality 1. Support in planning ( PPA – Multiannual Plan – or other) 2. IPS or other type of diagnosis 3. Network partnerships (strengthening of dialogue)
Telêmaco Borbaxxx
Ortigueiraxxx
Imbaúxxx
Otacílio Costaxx
Correia Pintoxx
Lagesxx
Goianaxxx
Angatubaxx
Paranaguáxx
Rio Negrox
Tibagixx
Reservaxx
Curiúvaxx
Sapopemaxx
Ventaniaxx

KSDGs 2030

Klabin´s acceptance rate in local communities

202020192018
83,80%64,00%79,40%

The indicator was revised and now includes 8 different dimensions instead of only one indicator related to perception of commitment to the community. Thus, the acceptance rate increased in 2020.

.Unit     
  2020201920182017Acumulado (2005-2020)
Total invested in the programR$                                             633.155,25           842.221,50           825.184,76                                       891.679,42                     7.390.440,44
ParanáR$                                             283.155,25      492.221,50      475.184,76                           551.911,04             3.856.781,34
Santa CatarinaR$                                350.000,00      350.000,00      350.000,00                           339.768,38             3.533.659,10
APPs e RL in regeneration                                           
15
                    54                    37                                         67 
APPs e RL  preserved                                                            421               2.691               2.246                                    3.159 
APPs e RL outlined – recovered                                                             519               2.803               2.463                                    3.403 
Contexto dos resultados      

Justification: Due to the Covid-19 pandemic, the program’s actions were replanned to ensure the safety of the technical team and partner farmers. Between March and May, Apremavi’s board suspended all field activities and, after this date, activities were partially resumed, following all prevention measures established by the World Health Organization. Therefore, the Permanent Preservation Areas and Legal Reserves outlined and restored in 2020 is lower compared to previous years.

Objectives and Goals

Objectives2020 GoalAnalysis of results – 2020
Identify and scale the negative impacts of Klabin’s operations in communitiesCarry out pre- and post-operational actions and diagnostics in the communities where forestry operations are planned for 2020.
Completion target of 70%
Final average: 90% execution (REVISADO POSTERIORMENTE À TRADUÇÃO)
Assist 100% of the communities within the Directly Affected Area (ADA) with regard to dust generation from transporting own wood (own and leased farms)Maintain 2.0 complaints per km covered of dust per km of land in communities1.7 dust complaints per km run
Demands Management System: Evaluate the satisfaction with the way demands and occurrences through the Speak to Klabin channel in Paraná are handled in relation to the following aspects: Quality of service; Punctuality and Satisfaction in attending demands and occurrences through the Speak to Klabin channel in  ParanáEvaluate the handling of demands and occurrences of Speak to Klabin channel in Paraná, with an average of 2 for effectiveness. The maximum score possible is 3.2.5 average effectiveness 

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Private Social Investment

Total amount invested in 2020 (in millions of Brazilian reais)

2020201920182017
Category 41.62 22.84 26.68 22.36
Incentive laws 2.75 4.96
Funcad 0.24
ANCINE Law
Rouanet Law 1.30
Sports Law 0.33
Pronon 0.32
Elderly Fund 0.24
ProAC 3.11
Klabin Projects (own resources) 8.67 4.99
Culture Projects0.66
Environmental Projects4.44
Local Development Projects2.76
Educational Projects 0.82
Donations and Sponsorships* 28.87 12.89
Donations to combat Covid-19 10.00

*Donations and own funds are allocated to assistance entities, educational institutions, cultural donations, and sponsorships.

BRL 41.62 million were invested in 2020. Klabin’s private social investment is monitored via the Prosas platform, which also helps define own and supported initiatives regarding their social impact in the areas of local development, environmental education, culture and education.
The funds were allocated to donations and sponsorships that, through their own and incentive-based resources, support third-party projects both in the communities and outside Klabin’s area of ​​operation; funds also refer to own projects, which are preferably conducted in the territories where the Company operates. Donations and sponsorships granted to social associations and other trends are in line with the Internal Sponsorship and Donations Policy and as provided for in Klabin’s Social Investment Platform, and are duly verified by the Integrity area. In compliance with the provisions of the Anti-Corruption Manual and the Federal Law, in 2020 no cases of donation involving public agents were identified.
In the same year there was also an increase in donations and sponsorships due to donations aimed at combating Covid-19. A Fund worth BRL 10 million was created to complement the funds from other donations and specific sponsorships.

As of July 2020, the Donations and Sponsorships Policy was implemented in all operations.

Private social investment: total by category (in Brazilian reais)

Category20202019
Cash contributions33,121,703.0022,176,000.00
Volunteer time during working hours0.000.00
Donation of products, services, partnerships or the like8,512,773.0098,000.00
Management of initiatives4,855,046.004,709,048.59

The increase in cash contributions was due to donations to combat Covid-19. We had a BRL 10 million fund in 2020, complementary to the funds from other donations and specific sponsorships.

Indirect Economic Impacts

ImpactsDescription of positive indirect economic impactsDescription of negative indirect economic impacts
Changes in the productivity of organizations, sectors or the whole economy (such as through greater adoption or distribution of information technology)Klabin promotes studies aimed at the adoption of alternatives to single-use plastic, increasing investments in research and development of more sustainable packaging.Research and development times do not keep up with the accelerated pace of market evolution, causing excess demand and rising supply.
Economic development in areas of high poverty (such as the total number of dependents supported through the income of a single job)Income generation in communities with few job opportunities and low quality of life.Community economically dependent on the Company, resorting to the company for requests that should be addressed to the public authority.
Economic impacts of improving or deteriorating social or environmental conditions (such as changing job market in an area converted from small farms to large plantations, or the economic impacts of pollution)Income generation in the communities by encouraging permanence in the field and organic production, driven by projects such as Matas Sociais [Social Forests], Matas Legais [Legal Forests] and the Apiculture & Meliponiculture Program.No identified impacts on this front.
Enhancement of skills and knowledge in a professional community or in a geographic location (such as the need for a supplier base attracting companies with skilled employees, which, in turn, drives the establishment of new learning institutions)In the 2018 cycle, planning and first steps were taken to implement new technical courses in Ortigueira in 2019. This provides access to formal education and the possibility of increasing income. The Escola Técnica Florestal e Agrícola de Ortigueira was also opened in 2019, with 170 students enrolled (80% local students and 20% regional students). No identified impacts on this front.
Number of jobs supported in the supply or distribution chain (such as the employment impacts on suppliers as a result of the growth of an organization?s growth or contraction)Over 30% of Klabin?s staff is made up of indirect employees (see GRI 102-8), and it is an internal practice to prioritize local recruitment. This enables the development of the regional microeconomy and attracts infrastructure investments. In the Puma II Project, up to December 2020, about 59% of workers were from Paraná; of these, 43% were from the region of Telêmaco Borba, Ortigueira and Imbaú. The training of local labor is also worth noting, offering professional qualification courses for students and workers living in cities near the operation.Possibility of increasing income inequality, due to the structural impossibility of providing jobs to a considerable portion of the population, whose job opportunities do not have benefits comparable to those at Klabin; and due to the temporary nature of the jobs for work on the Puma II Project.
Economic impacts from a change in operation or activity location (such as the impact of outsourcing jobs to an overseas location)No identified impacts on this front.Depending on the size of the operation and the municipality?s economic dependence, there may be substantial impacts. However, there may be changes after a detailed study considering the economic impact and mitigation measures.
Economic impacts from the use of products and services (such as economic growth patterns and the use of a particular product or service)Does not applyDoes not apply
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Operations with local community engagement initiatives, impact assessments and/or local development programs

Type of initiative20202019Observations
No. of operations% operationsNo. of operations% operations
i. Social impact assessments, including gender impact assessments, based on participatory processes*626%633.33%Monte Alegre, Puma, Otacílio Costa, Correia Pinto, Goiana and Angatuba units*
ii. Environmental impact assessments and continuous monitoring23100.00%18100.00%
iii. Public dissemination of the findings of environmental and social impact assessments2295.65%1794.44%All units except Pilar (Argentina)
iv. Local development programs based on the needs of the local communities*626%633.33%Monte Alegre, Puma, Otacílio Costa, Correia Pinto, Goiana and Angatuba Units
v. Stakeholder engagement plans based on mapping of these stakeholders*1148%1161.11%Monte Alegre, Puma, Otacílio Costa, Correia Pinto, Goiana, Angatuba*, Piracicaba, Rio Negro, Manaus, Jundiaí Tijuco Preto and Jundiaí Distrito Industrial Units
vi. Committees and processes for extensive consultations with the local community including vulnerable groups*626%633.33%Monte Alegre, Puma, Otacílio Costa, Correia Pinto, Goiana and Angatuba Units
vii. Work councils, occupational health and safety committees and other worker representation bodies to deal with impacts23100.00%18100.00%
viii. Processes for formal complaints by local communities23100.00%18100.00%

In addition, another example of positive economic indirect impacts refers to Klabin’s Matas Sociais Program. In 2019, 72% of farmers experienced an increase in income – of which, 45% recorded a rise of between 20% and 60% in their properties’ revenue; the poll is biannual and updated information on those indicators will be available in early 2022. Complementary data attests that in 2020, 66% of participants have reduced their pesticide usage; over half have expanded their commercial network and food production. About 80% have invested in their properties and acknowledge environmental benefits from participating in the program.

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Impact Management

The evaluation of the socio-economic situation of the region in which a major project is being implemented is an important instrument for better assessing its positive and negative impacts and for the adoption of social, economic, and environmental programs and projects. In the same way as the Puma I Project in 2013,  Klabin has now prepared a new diagnosis for Ortigueira and the municipalities in the area of influence of its expansion: the Puma II Baseline.

The main difference between the Puma I and II Baseline is the methodology used and the focus of the diagnosis. The first started from the definition of a Materiality Matrix of the Territory with the initial mapping of stakeholders and cross referencing of primary and secondary data to form the basis for the preparation of the Socioenvironmental Action Plan, integrated to the Basic Environmental Plan  and other social actions. The prime objective was to understand and mitigate the impact of the project on the territory, more especially from the environmental and anthropological  point of view.

With  respect to the second process and in partnership with technical consultancies, Klabin has expanded the scope to take into consideration statistical analysis of  official indicators and research in the field involving communities of 12 municipalities  in the area of influence using  Social Progress Index (SPI) methodology developed by the Fundación Avina.

SPI is a multidimensional tool for measuring  human development. It combines indicators which are relevant for directing Klabin’s social investment strategy and for the dynamics of the territory. It has two principal functions: to present the extent of the development of a region with an assessment of its potential for growth and related challenges; and indicating ways of measuring the impact of socio-environmental actions and public policies in three dimensions: basic human necessities, fundamentals of wellbeing and opportunities.

A total of 58 indicators were selected for tracking and evaluation of the progress of these municipalities. The perspective is that these indicators will form the basis for the preparation of Klabin’s plans for improvement and social investment and serve as the foundation for government policies to be adopted in the region. All data will be made available to the community and  government managers on an online platform launched in early 2021.


For 2021, the project’s targets are based on consolidating the analysis of the data in  the Puma II Baseline and to relate it with Klabin’s social programs, with the presentation of plans for improvements and new social investments. This will also provide the basis for the public policies to be adopted in the region. In addition, the aim is the consolidation of the online platform, the use of the indicators and the index in conjunction with the elected  managers through the medium of the Government Management Support Program.

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Traditional communities

Total forest area on indigenous lands (in acres)

2020
0
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Klabin maps all traditional communities in its areas of influence, such as quilombolas, faxinalenses (communities that inhabit small areas and live of their relationship with the forest), and indigenous groups. In its relationship with these communities, the company follows the Brazilian legislation and the recommendations of ILO 169, resolution of the International Labor Organization on Indigenous and Tribal Peoples, ensuring their right to free, prior, informed consent (FPIC).

There were no cases of violation of the rights of indigenous peoples or traditional communities in 2020.

In 2020, Phase II was completed, characterizing the traditional communities identified in the 10km buffer of Klabin’s forest management areas in Paraná, totaling 81, as follows: 12 indigenous lands identified and characterized in 10 municipalities; 27 quilombola communities, identified and characterized in 6 municipalities; and 42 faxinalense communities, identified and characterized in 10 municipalities.

Also in 2020, following the forest expansion, Klabin identified new traditional communities neighboring Klabin’s forest management areas (in the 10km buffer defined by the company), in Paraná, Santa Catarina, and São Paulo. The survey identified 80 traditional communities, namely: 2 indigenous lands (1 in São Paulo, 1 in Santa Catarina), 21 quilombola communities (13 in Paraná, 7 in São Paulo, and 1 in Santa Catarina), and 57 faxinalense communities (all in Paraná). The characterization of these communities is ongoing.

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For the units and operations of Paraná, a Manual of the Social Responsibility and Community Relations area was developed, along with other internal procedures, to record the entire stakeholder engagement process.

Klabin’s Social Responsibility and Community Relations area operates on different fronts, with the aim of preserving and improving the company’s relationship with its stakeholders and affected parties, by eliminating or mitigating impacts caused by its operation and developing initiatives that contribute to the local development of the municipalities where it operates, among others. Therefore, its main work fronts are:
– Preventive action on possible impacts related to Klabin’s forestry and manufacturing operations in Paraná;
– Identification of opportunities for engagement with the local community and regional development of the territory;
– Promotion and expansion of dialogue between Klabin and public officials, local community, and other stakeholders.

(In 2021, the scope will be expanded to other Klabin units, because of Corporate operations).

Penalties and Fines

Total non-compliances with laws and regulations in the social and economic area

2020
Total amount of significant fines (BRL)0
Total number of non-monetary sanctions (No.)0
Lawsuits brought by arbitration mechanisms (No.)0
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Local Development topic management

The commitment to Local Development is identity-based and focuses on engagement with communities 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, 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 adverse impacts are also mapped and can be consulted in Engagement Initiatives.

Based on several guiding policies, such as Klabin Sustainability Policy; Stakeholder Engagement Policy; Manual and Procedures of the Social Responsibility and Community Relations area; Stakeholder Engagement Plan; and Sustainable Development Goals and KSDGs, monitoring and management of private social investment are carried out under the principles of a specific platform, which guides investments in four lines of action: Klabin Education; Klabin for Local Development; Klabin Environmental; and Klabin Cultural.

In 2021, 8% of the executive directors currently have a variable compensation tied to Local development and impacts on communities’ performance. Apart from them, 56 leaders (from consultants to managers, which represent 8% of them) also managed to develop variable compensation tied to the company’s specific target.