Climate change

Proactive performance of businesses in building a low-carbon and climate-resilient society.

Goals

KSDGs 2030

Reduce GHG emissions – scopes 1 and 2 by 25% per ton of pulp, paperboard and packaging by 2025 and by 49% per ton of pulp, paperboard and packaging by 2035.

Base year 2019, based on the proposal approved by the Science Based Targets initiative (SBTi).

Percentage of emission reduction  
20202025 Goal2035 Goal
4.3%25%49%

KSDGs 2030

Net capture of 45 million tons of CO₂eq from the atmosphere between 2020 and 2030.

Net carbon capture (million tons of CO2eq)
2020
4.5

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Direct and indirect GHG emissions

Gross and biogenic direct GHG emissions (Scope 1) – ton CO2e

  2020  2019 2018 2017 
 Gross emissionBiogenic emissionGoal for the yearGross emissionBiogenic emissionGross emissionBiogenic emissionGross emissionBiogenic emission
Direct GHG emissions (through operational and financial control)          703,830.51            5,495,936.23        667,906.50          713,885.93            5,231,190.87          668,952.44            5,011,972.26          709.560.47            5,272,902.75

(Base year 2004, the first year in which we quantified the CO2 emissions of Klabin S.A.)

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Percentage of emissions covered by regulations 

   Unit2020
Percentage of emissions covered by regulations%81.3%

The São Paulo units in Angatuba, Piracicaba, Jundiaí and all of the state of Paraná are covered by the state environmental agency’s regulatory system.

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Indirect GHG emissions resulting from the purchase of energy (Scope 2) – ton CO2e

 2020 201920182017
 ValueGoal for the yearValueValueValue
Indirect emissions from the purchase of energy30,141.9532,672.7095,674.1987,791.49105.828,68
Location method77,768.60100,536.0095,674.19 87,791.49105,828.68
Purchase choice method30,141.9532,672.7039,207.2936,448.5143,664.22
% renewable energy purchase62%61%61%61%59%

(Base year 2004, the first year in which we quantified the CO2 emissions of Klabin S.A.)

In 2020, we chose to consider the “purchase choice” approach to measure our total Scope 2 emissions, rather than the “location” approach applied in previous years.

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Other indirect GHG emissions (Scope 3) – ton CO2e

 2020 2019 2018 2017 
 Gross emissionBiogenic emissionGross emissionBiogenic emissionGross emissionBiogenic emissionGross emissionBiogenic emission
Other indirect emissions          456,879.85                  21,788.53          447,352.81                  21,830,46          170,465.99                  15,760.52          175,368.10                  12,893.64
Goods and services purchased            85,282.25 –* * – – – –
Capital goods – – – – – – – –
Energy-related activities not included in scopes 1 and 2              2,296.17                        269.35** – – – –
Transportation and distribution (upstream)          367,581.24                  21,417.89          444,112.74                  20,551.09            62,558.65 –            85,539.32 –
Waste generated in the operation                  412.30                   356.18                   435.18 –                  527.34 –
Business travel                  413.97                   938.90                   729.74 –              1,256.17 –
Employee travel (home-work)                  893.92                        101.29              1,944.99                     1,279.37              2,363.61 –              1,983.68 –
Leased assets (company as lessee) – – – – – – – –
Transportation and distribution (downstream) – – – –          104,378.81 –            86,061.59 
Processing of sold products – – – – – – – –
Use of goods and services sold – – – – – – – –
End-of-life handling of products sold – – – – – – – –
Leased assets (company as lessor) – – – – – – – –
Franchises – – – – – – – –
Investments – – – – – – – –

*Until 2019, this indicator was not measured.

(Base year 2004, the first year in which we quantified the CO2 emissions of Klabin S.A.)

In the 2020 inventory, there was a change in the classification of product transport emissions, which shifted from Category 9 to Category 4. In addition, we also started to account for maritime emissions, emissions for purchased goods and services and emissions for fuel transportation, also updating the Scope 3 values ​​for 2019.

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GHG emissions intensity

Unit2020201920182017
Total emissions (direct + indirect)ton CO2and1,238,478.961,256,912.93927,209.92990,757.25
Quantity producedton product4,454,653.874.368.164,12
Emission intensity (scope 1 + scope 2 + scope 3)kg CO2e/ton prod.278.02287,74218.93235.17
Emission intensity (scope 1 + scope 2)kg CO2e/ton prod.164.77185,33178.68193.54
Emission intensity (scope 1)kg CO2e/ton prod.158.00163.43157.95168.42
Emission intensity (scope 2)kg CO2e/ton prod.6.7721.9020.7325.12
Emission intensity (scope 3)kg CO2e/ton prod.102.56102.4140.2541.63

In the 2020 inventory, there was a change in the classification of product transport emissions, which shifted from Category 9 to Category 4. In addition, we also started to account for maritime emissions, emissions for purchased goods and services and emissions for fuel transportation, also updating the Scope 3 values ​​for 2019.

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Total of biogenic direct GHG emissions and remotions (Scope 1 and 3) – ton CO2e         
 2020  2019  2018  
Scope 1′Gross emissionBiogenic emissionBiogenic remotionGross emissionBiogenic emissionBiogenic remotionGross emissionBiogenic emissionBiogenic remotion
Stationary combustion*519.672,665.476.114,06                                  –  522.040,835.212.862,00                                  –  493.302,954.995.496,96                                  –  
Mobile combustion**172.283,9619.822,18                                  –  179.397,3718.328,87                                  –  170.751,3916.475,30                                  –  
Fugitive emissions5.369,35                                  –                                    –  7.106,00                                –                                    –  1.988,88                                –                                    –  
Industrial processes2,19                                  –                                    –  5,37                                –                                    –  6,70                                –                                    –  
Agricultural activities6.502,36                                  –  8.447.067,745.337,18                                –  8.226.543,682.902,52                                –  8.658.800,60
Scope 1 total703.830,515.495.936,238.447.067,74713.886,755.231.190,878.226.543,68668.952,445.011.972,268.658.800,60
 2020  2019  2018  
Scope 3Gross emissionBiogenic emission
*** 
Biogenic remotionGross emissionBiogenic emission
*** 
Biogenic remotionGross emissionBiogenic emission
*** 
Biogenic remotion
Transportation and distribution (upstream)367.581,2421.417,89                                  –  75.417,097.086,89                                  –  62.558,655.279,13                                  –  
Waste generated in the operation443,03                                  –                                    –  356,18                                –                                    –  435,18                                –                                    –  
Business travel413,97                                  –                                    –  938,90                                –                                    –  729,75                                –                                    –  
Employee travel (home-work)893,92101,29                                  –  1.944,99                   1.279,37                                  –  2.363,61                      231,95                                  –  
Transportation and distribution (downstream)   368.695,65                13.464,20                                  –  104.378,81                10.249,44                                  –  
Goods and services purchased85.282,25                                  –                                    –  0,00                                –                                    –  0,00                                –                                    –  
Energy-related activities not included in scopes 1 and 22.296,17                        269,35                                  –  0,00                                –                                    –  0,00                                –                                    –  
Scope 3 total456.910,5721.788,53                                  –  447.352,8121.830,46                                  –  170.466,0015.760,52                                  –  

Reductions in GHG emissions as a direct result of reduction initiatives – ton CO2e

 2020201920182017
Total emission reduction             -18,433.97
                                  0            58,645.66                                  –  
Reduction of emissions (scope 1)              -10,055.42                                  0            40,608.03                                  –  
Reduction of emissions (scope 2)            -17,905.59                                  0            18,037.63                                  –  
Reduction of emissions (scope 3)            9,527.04                                  0                           –                                    –  

(Base year 2019)

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Methodology used to calculate the indicators, including emission factors and global warming potential (GWP): Brazilian GHG Protocol Program
Information consolidation approach: operational control
GHG included in the calculation of direct (Scope 1) and indirect (Scope 2 and 3) emissions: CO2, N2O, CH4 and HCFCs
The base year chosen in 2008 was the first in which we quantified the Company’s CO2 emissions.

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GHG emission reduction targets (%)

 2020Reduction target (2025)
Absolute emission reduction target (scope 1)6.0%13.6%
Absolute emission reduction target (scope 3)
Specific emission reduction target (scope 1 + scope 2)4.1%25%

(Base year 2019, based on the proposal approved by the Science Based Targets initiative)

*Since 2020, Klabin has considered Scope 2 emissions based on the purchase choice methodology.

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Air emissions of NOx, SOx and other significant emissions

Unit2020201920182017
NOxtons 4,885.27 4,654,33 4,374.83 5,437.03
NOx (excluding N2O)tons
SOxtons 2,313.91 4,036.17 2,813.06 1,789.18
Volatile Organic Compounds (VOC)tons 50.45 31.08 18.05 87.45
Particulate Matter (MP)tons 5,485.70 5,178.12 5,243.06 5,708.38
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Emission factors, standards, methodologies, and assumptions

The source of the emission factors is the sum of the results of the air emissions monitoring campaigns for Klabin emission sources, performed via isokinetic monitoring. This information was obtained in sampling reports produced by laboratories outsourced and accredited to perform this service. For these gases, direct measurements are performed in the chimneys, obtaining gas concentrations and flow rates. The emission rate is thus calculated and extrapolated for the entire year to obtain the absolute value. Sampling was carried out according to the standards of the Brazilian Association of Technical Standards (ABNT), using the isokinetic monitoring methodology and in accordance with other CETESB references.
Persistent organic pollutants (POP) and Hazardous air pollutants (HAP) have not been determined as legal constraints to the business.

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Performance evolution

We applied federal legal requirements to all sources of emissions, except for units where specific state legislation applies and/or emission limits are stipulated in environmental licenses. The selection of emission limits complies with the legislation of the state where the unit is located. In 2020, the following relevant points stand out:

1 – Increase in NOx emissions (+11.7%) in the Pulp and Paper segment, due to an increase in burning of resisual biomass and the new haet treatment for DNCG.
2 – Reduction in SOx emissions (-17.7%) in the Paper and Pulp segment.
3 – Increase in OM emissions (+ 4.63%) in the Pulp and Paper segment. In 2020, we began operations for the new non-condensable gas incinerator (CNCG and DNCG) at the Monte Alegre unit. With this new equipment, we expanded the GNC treatment system, reducing atmospheric emissions and improving air quality in the region.

Financial implications, risks and opportunities associated to climate change

More details about climate risks identified in TCFD topic.

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Management of the Climate Change topic

Climate change management is part of Klabin’s strategy and is integrated into the risks and opportunities agenda for the businesses of the Company and its stakeholders. We have the Guidelines for Climate Change Management – Mitigation and Adaptation. Among the main drivers, we have the Business Ambition for 1.5º C, the UN’s global campaign, and the commitment to reduce emissions considering science and the neutralization of emissions by 2050.

In 2021, 50% of the executive directors have a variable compensation tied to an Environmental Index, which includes KPIs for water, residues and emissions management. Apart from them, 18 leaders (from consultants to managers) who are responsible for addressing the theme in the company also managed to develop variable compensation tied to the company’s Climate Change target.

The Company has a history of investments and the adoption of low-carbon technologies that has resulted in a 64%* drop in recent years (2003-2020) in CO2 equivalent emissions per ton of product generated. It is worth emphasizing that the Klabin Sustainable Development Goals (KSDGs) include the commitment to develop science-based carbon reduction targets. This means that Klabin’s carbon reduction goals are ambitious  and were approved by the Science Based Target initiative and in line with the global challenge of limiting average temperature increase to 1.5°C.

In 2021, the Company made a commitment to Race to Zero in order to engage the private sector and civil society in the urgency of concrete actions to combat climate change and reduce, to the greatest extent possible, its GHG emissions and neutralize the balance, completely zeroing it by 2050. To that end, the Company has a pipeline of low carbon technologies that can be implemented to meet the reduction targets. Using the Marginal Abatement Cost Curve (MACC) tool, it was possible to identify the effectiveness of the technologies, considering the emissions avoided during the life cycle and the necessary investment (NPV), employing security and assertiveness to reach the target.

MACC presents itself as the plan to reduce emissions in the medium and long term and foresees investment in low carbon technologies of BRL 472.20 million by 2030. Among these technologies are biomass gasification, tall oil, the growth in the cogeneration on a renewable basis, use of biofuels, increased reuse of hydrogen and drying of sludge.

With respect to climate risks/opportunities or adaptation, the Company follows the recommendations of the Task Force on Climate-Related Financial Disclosure. In 2020, Klabin became a TCFD Supporter, having implemented and improved actions in the pillars of governance, strategy, risk management and targets/metrics.

*Since 2020, Klabin started to consider Scope 2 emissions based on the purchase choice methodology.

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Mechanisms and actions adopted

The Company has a pipeline of low carbon technologies that can be implemented to meet the reduction targets. Using the Marginal Abatement Cost Curve (MACC) tool, it was possible to identify the effectiveness of the technologies, considering the emissions avoided during the life cycle and the necessary investment (NPV), employing security and assertiveness to reach the target.

MACC presents itself as the plan to reduce emissions in the medium and long term and foresees investment in low carbon technologies of BRL 472.20 million by 2030. Among these technologies are biomass gasification, tall oil and the growth in the cogeneration on a renewable basis, the use of biofuels, the increase in the reuse of hydrogen and the drying of sludge.

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Risks related to the targets
The amount of carbon emitted annually by the Company is linked to the volume of products generated. Therefore, when designing the carbon reduction target, strategic planning and organic growth were taken into account, in order to ensure assertiveness, synergy and control between production and the reduction target.

When considering the growth/production process planning, the risk of not meeting the reduction target is mitigated. Another relevant point is the robust study, with environmental and economic analysis of the technologies that must be adopted in order to meet the carbon reduction targets. The definition, prioritization and approval of the technology pipeline are essential to ensure compliance with the carbon reduction target.

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Climate-related risks and opportunities for forest management and wood production
Climate risks and opportunities are part of the Company’s management and decision-making processes, especially those related to forest management, due to its relevance to the business.

As such, the Company’s forest research area – Department of Efficiency and Ecophysiology – monitors possible future climate scenarios, developing data modeling related to climate parameters and assessing the impact of planted and native forests. The Department recommends the necessary measures in case of adverse effects. Potential risks mapped include, for example, the increase in temperature in the Paraná region, where Klabin’s main forest area is located.

This increase in temperature can have negative impacts, such as accelerating the growth rate of forest pests, the need for greater irrigation in the forests, among others. Thus, the Company invests in a series of actions and lines of work, such as phytosanitation, biotechnology and genetic improvement, to mitigate potential climate risks.

As an example of this work, we can point to Klabin’s research team which, in the light of forecasts of climate change in the region of the company’s forest operations, is working on the development of new species of pine, more adaptable to hot climates.

More details about climate risks identified in TCFD.

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Comments on overall performance
Scope 1: In 2020, there was a 1.4% reduction in emissions. It is possible to relate the result to the increase in the share of renewable fuels, by 8%, in stationary combustion, reduction in the consumption of mobile combustion fuels and in the use of air conditioning gases. There was a 5% increase in scope 1 biogenic emissions due to the increase in the percentage of biomass and black liquor burning in the boilers. Considering the intensity of emissions, there was an increase of 3% in the Company’s total production, causing our specific emissions to reduce from 163 to 158 kgCO2e/t.

Scope 2: in the same period, we achieved a 19% reduction in emissions related to energy purchased in the “location” approach by the Company, despite the increase in total production. There was a reduction in energy consumption in the units, in addition to a small change in the SIN emission factor, reduced compared to 2019. If we consider the “purchase choice” approach, our Scope 2 emissions total 30,141,952 tCO2e in 2020, whereas 64%* of the energy purchased came from renewable sources.

Scope 3: in the same period, there was a reduction of 6% in absolute emissions. We started to report maritime emissions from product transportation, emissions related to fuel transportation, reinforcing the commitment to transparent processes and reporting. There was a change in the categorization of emissions, in which we began considering product delivery emissions in Category 4 and no longer in Category 9.

Gross emissions increased 14% compared to 2019, reflecting the addition of categories in Scope 3 accounting. However, with the reductions observed in Scopes 1 and 2, the intensity of greenhouse gas emissions decreased by 3% in Scope 1 and by 5% in Scope 1 + 2.