Occupational health and safety

Safe and protected work environments to promote people’s integrity, health and physical and psychological well-being in the performance of their duties and in the course of their lives.

GOALS 2030

KSDGs 2030

Lost-time incident frequency rate (own and contracted) below 1

Frequency rate of direct employee accidents (per million hours worked)

2018201920202021
Employees3.982.952.672.07
% reduction YoY26%9%22%
Coverage100%100%100%100%

*calculation: ACA x 1,000,000/hht

Progress has been made in the index result, with a 22% reduction in the lost-time accident frequency rate for own employees compared to the year 2020. Our goal is to reach a value below 1 in a sustainable way, because we understand that the reduction of lost-time safety events signals efficiency in the strengthening of our Management System and, consequently, safer operations. In 2021, we attributed this result to the work focused on the identification and management of critical activity risks, employee training, technological investments, the continuous improvement of safety tools, and the resolution of reported deviations.

Frequency rate of indirect employee accidents (per million hours worked)

2018201920202021
Employees2.731.821.591.31
% reduction YoY33%13%18%
Coverage100%100%100%100%

*calculation: ACA x 1,000,000/hht

From the same perspective, it is noted that we also had an 18% reduction in the accident frequency rate for contractors compared to the year 2020. We attribute this result to the work conducted to consolidate the efficiency of the Occupational Health and Safety Management System (SGSSO), starting with the revision of the contractor management policy, which began in 2020.

In 2021, we followed up on this action plan with the revision and implementation of the Performance Program criteria, in which contractors report and are recognized for initiatives such as: calendar of campaigns and preventive actions in risk identification and management; safety inspections; training matrix focused on the evolution of the safety culture; and report handling (resolution of unsafe situations, as well as recognition of safe behavior).

KSDGs 2030

Zero lives changed* of own and contracted employees

201920202021
Number of lives changed358

*Historical basis calculated as of 2019

On the other hand, there has been an increase in the number of lives changed¹. In total, there were six lives changed and two fatalities. Among these misfortunes, we had: 4 related to process safety² (where we declare the two fatalities), 2 related to energy blockage³, and 2 related to failures in risk analysis. We deeply regret this index because it puts us on alert and directly impacts our purpose of providing safer and more protected work environments for our employees, mobilizing our attention to topics such as Process Safety and Energy Blocking, which continue to be our focus of work for the coming years.

In addition, the continuous expansion process of the forestry business, the full operation of the packaging units acquired in October 2020, and the startup of another paper machine at the Puma Unit caused an increase in exposure hours.
As a priority topic, we addressed a diagnosis on Process Safety in 2021. From there, an exclusive area was structured to operate as part of Safety Management as of 2022. 

Following this, as planned since 2020, a corporate communication campaign was carried out for the energy blocking topic throughout the year that involved various audiences, achieving its goal of promoting awareness and significantly improving the quality of conversations among operational teams. The campaign was important to support the work to consolidate a strong culture in blocking energy, focused on the elimination and/or substitution of risks with actions that will continue in 2022 such as: mapping of blocking points, acquisition of devices and tools for energy isolation, in addition to inspections, audits, and the training of leaders and their teams.

Preventively, we identified a representative number of events with potential for lives changed in logistics operations. From this analysis, we created actions with our partner companies and invested in a coordination focused on Traffic Safety.
The goals of the Safety topic are the ones most hired by the leadership, and all the executives have variable compensation goals linked to them.

¹The lives changed concept was introduced in 2019 and refers to significant effects caused by occupational and process accidents that are considered very serious and permanent involving people.
²Process safety: a strategy for preventing accidents, especially those related to leaks, loss of containment, and uncontrolled operational processes.
³Blocking dangerous energies: every power-connected equipment (not just electrical power), must be blocked with padlocks, locks or chains and safety rules must be carefully followed during any intervention.

KSDGs 2030

Accident severity rate with own and contracted employees below 50

Severity rate of direct employees (per million hours worked)

2021202020192018
Employees44420984177
Coverage100%100%100%100%

To address the improvement in the rate, the same method is applied to the lives changed indicator: the restructuring of Safety Management, which will have a Process Safety area as of 2022, and actions that strengthen the energy blocking culture, not only with campaigns, but with the elimination and/or substitution of risks, such as mapping of blockage points, purchase of devices, inspections, audits, and training of leaders and teams. 

In addition to the lives changed events, the top injury types in 2021 were incised wound, sprain, contusion and fracture – versus contusion, abrasion, sprain and incised wound in 2020.

Severity rate of indirect employees (per million hours worked)

2021202020192018
Employees604721201.427
Coverage100%100%100%100%

The index is stable when compared to recent years and shows the result of the work done with the contracted companies.
We attribute this result to the work conducted to consolidate the efficiency of the Occupational Health and Safety Management System (SGSSO), starting with the revision of the contractor management policy, which began in 2020. 

In 2021, we followed up on this action plan with the revision and implementation of the Performance Program criteria, in which contractors report and are recognized for initiatives such as: calendar of campaigns and preventive actions in risk identification and management; safety inspections; training matrix focused on the evolution of the safety culture; and report handling (resolution of unsafe situations, as well as recognition of safe behavior).

KSDGs 2030

Achieve a more advanced level (Generative/Sustainable) in the Hearts and Minds methodology or equivalent

Percentage of units, by maturity level

Units20212020
Pathological00.00%0%
Reactive1138.00%29%
Calculating1034.00%32%
Proactive27.00%4%
Generative13.00%4%
Under assessment*517.00%32%

In 2021, the safety culture procedure was prepared and published for the entire Company. This procedure aims to guide the diagnosis, calibration, and action plans for evolution in this matter. By conducting studies based on the diagnostic reports and calibration of the units’ safety culture, we identified a differentiation in methods and criteria among the evaluating consulting firms. This differentiation impacted the result we published in 2020. Therefore, after this review based on the standardized criteria of the Hearts and Minds (H&M)³ methodology, we understood that the Company’s safety culture is on an evolutionary journey between the reactive¹ and calculative² levels. For 2022, we plan to perform the culture diagnosis on the units acquired in 2020 and follow up on the action plans focused on the safety culture drivers in the business units.

The units classified as “Under evaluation” refer to newly acquired units in October 2020. The evaluation schedule will start in April/22.

¹Reactive level in safety culture: at this stage, safety receives attention when something goes wrong. This still shows a level of dependence and co-dependence on the safety team for decision making.
² Calculative level: at this stage, safety is based on the system and numbers. There is still an emphasis on the amount of statistics collected in exchange for bonuses. The management model is well implemented and leaders talk to their teams about the importance of safety, but still focused on meeting legal compliance. The contracted companies are now chosen for their results in safety. There is greater participation of employee consultation and the results in safe behavior can already be reaped. There is an audit structure. If something goes wrong, the team is still surprised, because they consider that if the numbers are good, the system should not have failed.
³The Hearts and Minds (H&M) model consists of a culture diagnosis. It is used to identify how the Occupational Health and Safety Management System (SGSSO) is working in practice through the analysis of indicators, effectiveness of safety tools, interviews, questionnaires and focus groups with all levels of the organization. After this diagnosis, goals and strategic planning are developed to advance Safety maturity.

Undertaking goals linked to the topic by executives

20222021
Managers62.0%63.0%
Directors100.0%75.0%
Total executives463442

Occupational Health and Safety Management System

TopicAction
Identification of Hazards and Risks
Prioritization and integration of action plans
Integration of actions for response to emergency situations
Assessment of progress in risk reduction and prevention
Internal audits
External Assurance
Procedures for investigating accidents, incidents, and work-related illnesses
Employee training
Criterion for purchases and contractual requirements.

Occupational health and safety rates and figures

2021202020192018
Number of fatalities as a result of work-related injuries2.00103
Rate of fatalities as a result of work-related injuries0.030.0200.07
Number of high-consequence work-related injuries (excluding fatalities)*6.00203
Rate of high-consequence work-related injuries (excluding fatalities)0.090.0400.07
Number of recordable work-related injuries**112117132158
Rate of recordable work-related injuries***1.702.182.463.41

Occupational health and safety rates and figures – direct employee

2021202020192018
Number of fatalities as a result of work-related injuries2.00000
Rate of fatalities as a result of work-related injuries0.06000
Number of high-consequence work-related injuries (excluding fatalities)*2.00105
Rate of high-consequence work-related injuries (excluding fatalities)0.060.0300.05
Number of recordable work-related injuries**707887111
Rate of recordable work-related injuries***2.072.672.953.98

Occupational health and safety rates and figures – indirect employees

2021202020192018
Number of fatalities as a result of work-related injuries0.00103
Rate of fatalities as a result of work-related injuries0.000.0400.17
Number of high-consequence work-related injuries (excluding fatalities)*4.00103
Rate of high-consequence work-related injuries (excluding fatalities)0.120.0400.17
Number of recordable work-related injuries**42394547
Rate of recordable work-related injuries***1.311.591.822.73

*Lost-time accidents that left employees on leave for more than 6 months.
**Lost-time accidents.
***Accidents with leave x

For reportable accidents, the company standardized the historical basis and the current numbers considering only accidents with lost time, in order to standardize this report with the criteria considered in the 2030 target and other ESG frameworks. 1,000,000/hht

20222021202020192018
Employees0.05%*0.00%0.065.833.43
Coverage (% of employees)100.00%100.00%100.00%100.00%100.00%

*calculation: ACA x 1,000,000/hht

Number of cases of recordable occupational illness involving direct and indirect employees (by region)

2021202020192018
North0000
Northeast0011
Midwest00NANA
Southeast0100
South01169
Total021710

In 2021, no cases of occupational disease were reported by the National Social Security Institute (INSS), which has reduced its operations because of the COVID-19 pandemic since 2020. We maintained management of lost time and medical certificates within the units with a team of doctors and nurses focused on prevention, attending to the CIDs related to possible occupational diseases, in addition to ergonomics committees in which we act strongly in the action plans for possible risks related to occupational diseases (musculoskeletal diseases).

 In 2022, two cases were characterized as work-related diseases by the INSS, based on the resumption of their functions. We expect that even with the regularization of backlogged records by the agency, the rate will continue its downward trend.
*This number was calculated based on the manhours worked (HHT) of 2021.

SECURITY THEME MANAGEMENT

The management of Occupational Safety is foreseen in the Occupational Health and Safety Management System procedure and is structured in three pillars:

1. Facilities: Ensure equipment safety and reliability. Improve and maintain the work environment offered to our professionals;

2. Management/Method: Continuously improve the way we address security in our routine. Keep a critical eye on our accident prevention and mitigation procedures by creating and reviewing policies, guidelines and requirements; and

3. People: Value good practices and encourage our employees to care for one another. Train them on rules and procedures, in addition to bringing leaders closer to the routine.

The Corporate Life Protection Policy was launched in 2022 and aims to nurture a just culture*, which cares for the well-being of employees and the business strategy, transforming failures into lessons that drive safer processes and activities throughout the company Klabin. The Policy implementation project is guided by the PROSCI® change management methodology, which aims to lead the human side to achieve organizational results and objectives.

*Just culture: A term discussed by Sidney Dekker that aims to identify and address system problems that lead individuals to engage in unsafe behavior, while maintaining individual responsibility and establishing learning from failures.

Our Occupational Safety and Health Management System (SGSSO) is guided by ISO 45001 in all manufacturing and forestry units, with guidelines and procedures focused on preventing losses and continuously improving processes to preserve people’s lives, health and physical integrity. 

The SGSSO is supported by the dissemination of the health and safety culture and relies on the partnership with leadership as an essential factor to experience and influence through three fundamentals:

1. Visible commitment: demonstrate through attitudes, decisions and words, the involvement and commitment to OH&S as a value;

2. Line responsibility: in the deployment, maintenance and improvement of the SGSSO, to guarantee the development, consolidation and resources (human and material) and to ensure best practices and sustainable results; 

3. Operational discipline: having the attitude to perform each task safely, reporting situations that may generate risk to people or property and practicing active care.

Currently, the Corporate Workplace Safety Management is part of the People & Management and Services Board with direct reporting to the Compensation, Performance, and Workplace Safety Management. Safety Management is structured by the corporate area, with branches in regional coordinations and by each business. 

In 2021, we continued the work of strengthening and consolidating the SGSSO with actions aimed at continuous improvement guided by the PDCA methodology in the standards, models, and guidelines that are more consistent and adherent to the business. We focused on the Critical Activity Requirement (RACs) of power blocking, as we understand that this is one of our main challenges related to potentially severe and fatal occurrences, which are broken down in the KSDGs chapter.

Updated and verified on: 06/28/2022