MATERIALITY MATRIX In addition to the Materiality Matrix, the Company uses other practices that are aimed at increasing the participation of stakeholders in the development of its sustainability strategy. One of these is the inclusion of opinions about the Company made by people from local communities. A total of eight people were interviewed, ranging from community leaders to forest partners, and their summarized statements are published in the printed version of this publication, and OUTSIDE STAKEHOLDERS - GENERAL INTERESTS OF SOCIETY 4 13 13 16 16 14 14 9 12 12 7 8 10 10 11 11 15 15 22 22 28 28 33 33 29 29 31 30 31 30 27 27 25 24 25 24 26 26 23 23 21 21 19 19 18 18 20 20 3 are presented in full on the website, at: www.fibria.com.br/rs2009. Another initiative is to 1 2 6 5 include the views of independent outside readers, who are specialists within the industry or on sustainability issues, who analyze the report and provide their critical opinions and suggestions, as a contribution to the continual refinement of this publication. Their observations are presented in full at the end of this report. The report is divided into five main sections: Governance, showing the procedures and instruments for the controlling and managing operational and financial risk and internal and external conduct; Management and Strategy, which looks at the strategic planning and 32 32 34 34 17 17 administration system of the new Company; Social Performance, which addresses the Company’s practices and issues related to its stakeholders; Environmental Performance, in which the Company shares information about its forest management practices and other environmental issues; and Economic-Financial Performance, which includes information about investment, indebtedness, the allocation of resources and other matters. 35 35 INTERNAL STAKEHOLDERS - PERSPECTIVE OF THE BUSINESS 1. Impact of plantations on biodiversity 2. Certification and voluntary commitments 3. Ethics 4. Water use 5. Strategy/Commitment towards sustainability 6. Relations with local communities 7. Forest partners - wood suppliers 8. Environmental hazards 9. Emissions, effluent and waste 10. Relations with specific communities 11. Corporate governance 12. Forest technical management 13. Energy use 14. Product responsibilities 15. Workplace health and safety 16. Use of toxic products 17. Economic results 18. Climate change 19. Communication with employees 20. Compliance with laws and regulations 21. Wood use 22. Relations with outsourced workers 23. Investors 24. NGOs 25. Complaints and ombudsman 26. Customers 27. Attracting and retaining talent 28. Transport impact 29. Diversity/fair treatment 30. Antagonistic and/or anti-agribusiness groups 31. Press 32. Use of genetic modification 33. Government 34. Suppliers 35. Labor unions Finally, the content of this report has been submitted for independent verification by Bureau Veritas Certification, with a view to ensuring that the information provided meets the quality guidelines for GRI G3 sustainability reports, which are: inclusion of stakeholders, balance, accuracy, clarity, reliability, timeliness and comparability. The reader will notice that, despite our best efforts, it has not been possible to preserve the comparability of certain information, due to the fact that the companies that merged to create Fibria existed as independent entities until September 2009. Some of the matters dealt with in this publication refer exclusively to units that belonged, until 2009, to what was then VCP or Aracruz. Such cases are specified, whenever they occur. We are aware of the difficulties involved in presenting standardized data, under such circumstances, but assume the commitment to continue working to meet the standards of best practice in our future reports. The online version of this report, including the Financial Statements, can be found on the website, at: www.fibria.com.br/rs2009. Requests for additional information or suggestions regarding this report may be sent to the Corporate Communication department, at: comunicacaofibria@fibria.com.br The editors * Some of the events described herein, such as the drawing up of the Code of Conduct, relate to the 2010 financial year, but have been included because of their importance. Sustainability Fibria I Sustainability Report I 2009 Sustainability is a strategic issue at Fibria and is integrated into the business. In its mission and 9 vision, the company makes the commitment that, while generating respectable profits, it will also 8 ensure that its planted forest activities not only yield economic value, but also promote human, social and environmental development. Two committees were established to strengthen Fibria’s corporate governance regarding sustainability topics, an External Sustainability Committee ¹ to play a consultative role, coordinated by the chairman of the Board of Directors; and an Internal Sustainability Committee², comprised of the managers of the Company’s main divisions. ‘Fibria can serve as a catalyst for change in the industry, influencing modifications in the chain of production, and it also could become an example for the competition. It is a player in a particularly important industry, one that also impacts the environment. It could contribute to the revision of public policies and international rules.’ Sustainability Committee Strategic management guidelines for Sustainability Internal Sustainability Committee – CIS Social-environmental guidelines for operations Sustainability objectives 1) Governance: To establish governance that is strengthened by internal and external committees, using the Sustainability Report as the main tool for accountability of its actions and results. 2) Stakeholder Relationships: In order to try to prevent and reduce social conflicts directly linked to its business and operations, as well as to strengthen relationships with stakeholders, Fibria established a new position with regard to its relationship with the communities in its areas of influence. This new model is in step with the Company’s strategic guidelines, and strives: To build trust and reputation; To reduce social pressures on forestry activities; To assist in obtaining a social license for our operations; To obtain mutual recognition of the Company and the communities as possible partners for local development; To seek greater proximity and opportunities for coexistence and exchange of local realities, wherever the Company is inserted; To establish a bridg between the priority communities and the Company, fostering learning and group construction. 3) Forestry Partners: To align the various different programs as a way of assuring the generation of economic, social and environmental benefits for the farmers and for the Company. 4) NGOs: To strengthen relationships and partnerships with non-governmental organizations. 100-Day Plan Fibria developed a short-term action plan called the “100-Day Plan,” designed to develop actions with an impact between September-December 2009, in order to demonstrate to a wide range of stakeholders the Company’s commitment to sustainability. Many of the plan’s actions were to continue in 2010 and others served as the basis for the formulation of objectives, mainly targets for subsequent years. The majority of the actions of this plan are concentrated in the forestry base, especially maximizing the involvement with the various different neighboring communities, due to the size and importance of this production process. With regard to forestry partnerships Fibria believes that this type of relationship is of great importance for its socio-environmental performance because the farmers that are involved in the program directly influence their regional economies, participating in the Company’s chain of production at a vital stage — that is, the supply of its main raw material. In order to facilitate the plan’s management and development, the actions were grouped into 9 main areas: 1. Forestry base; 2. Forestry partnership; 3. Industrial units; 4. Certification; 5. Global topics; 6. Stakeholder relationships; 7. Employees; 8. Suppliers; 9. Governance. 5) Certification: To strive to certify all of the areas under forestry management through the Forest Stewardship Council (FSC) and through the Brazilian Forestry Certification System(CERFLOR/PEFC). Fibria I Sustainability Report I 2009 36 37 Relationship with stakeholders SOCIAL PERFORMANCE Communication with stakeholders – Fibria keeps open channels of communication with the local communities in the vicinity of its forest and industrial operations, as well as with other stakeholders, as part of its Environmental Management System (ISO 14001). Each of the Company’s units has one or more toll free telephone numbers for the reporting of environmental, forestry or industrial incidents, or those involving the transporting of wood. Fibria’s institutional website provides e-mail addresses and phone numbers for contact in relation to personnel, supply or press relations. Meanwhile, the Company’s investor relations department has its own website, for disclosing information that is of interest to the financial market and news about the Company, in compliance with the regulations governing listed companies. Ombudsman – Fibria has an ombudsman, available to people both inside and outside the Company, who deals with matters relating to the Company’s Code of Conduct. Contact with this channel may be made by telephone, e-mail (internet and intranet) or letter. Corporate Communication – Fibria has a system of communication with internal and external stakeholders by means of easily accessible tools. Atlantic Forest Restoration Pact – Fibria participates in the Atlantic Forest Restoration Pact, which plays a role in putting forward the vision of the Company in making an effective contribution in restoration areas and as a mobilizing agent in the regions where it is active. The objective of the Pact is to articulate policies together with public and private institutions, government, companies, NGOs and landowners in order to merge their efforts and resources to generate results for restoration and conservation of biodiversity. The Pact’s target is to make it possible to restore 15 million hectares of forests by 2050 in the 17 states in which the Atlantic Forest biome occurs. More information is available at www.pactomataatlantica.org.br. Forest seedlings in Bahia – Fibria will install a nursery in the district of Helvécia, in the municipality of Nova Viçosa (BA), with capacity to produce 30 million eucalyptus clonal seedlings per year. The project is designed to supply the Company’s forestry operations and at the same time promote economic activity and regional development. The investment is about R$ 23 million, and foresees the generation of 50 jobs during construction and about 250 jobs when operations begin. In 2008, the Company signed a partnership agreement with the National Industry Service (Senai) and the National Rural Apprenticeship Service (Senar), initiating a program for training local manpower for the nursery. The program currently is in the midst of the environmental licensing process. Aracruz first announced the project in 2007, but it was interrupted the following year due to financial restrictions. VEHICLE/TOOL Bulletin board NAME “Informe-se” DESCRIPTION Printed leaflets to be put up on notice boards placed in strategic locations where staff tend to circulate, in the company’s offices and mobile units (harvesting modules), containing information about regional and corporate events. E-mail distribution of more urgent news. It might later be printed and put up on the bulletin boards. E-mail distribution of information that is specific to a department. The aim is to inform staff about something important and, in some cases, to elicit a certain response, such as a change in procedure. E-mail distribution to the company leadership of important information that fosters interaction between the management and their teams. Publication directed at Fibria’s workers and their families, containing key company messages and the main news at the units. To make available and disseminate news, documents, services and systems. The aim is to facilitate access to information and keep down the flow of e-mails. FREQUENCY Weekly Computer newsletters Extra Area – – “Gestores (Management)” – Printed journal “Vital” Monthly Intranet FibriaNet – VEHICLE/TOOL NAME DESCRIPTION FREQUENCY – Communities Relationship with local communities Communication face to face “Encontro com o Presidente 42 Regular meetings between the CEO and the employeFibria I Sustainability Report I 2009 (Meet the CEO)” es 43 at the units. Internet www.fibria.com.br Fibria’s main channel of communication with the outside audience. It contains all the information that the company makes public, such as notices, publications, institutional information, placements and content of specific interest, as well as serving as a channel of communication with stakeholders. Newsletter “Fibria Notícias” Computer newsletter directed at those who are registered on the Portuguese language page of the company’s website, containing news about the main events involving Fibria. Computer newsletter directed at those who are registered on the English language page of the company’s website, containing news about the principal events involving Fibria. – Publication that gathers and reports on the company’s principal results and challenges in the environmental, social and economic-financial spheres. Publication on environmental education, directed at 5th and 6th grade students and teachers in schools of the public basic education network that serve communities in the vicinity of the company’s forestry and industrial operation¹. Publication aimed at transport company drivers who provide services for Fibria, containing information about safety, health and good practices to follow when on the road. Publication aimed at visitors to the company’s units, containing a presentation of the company and serving as a memento of the visit. – – – Consultation with the communities In this report, Fibria presents the opinions of a number of stakeholders, as part of its efforts to develop awareness of the different outside perceptions of the management of its business, so as Weekly to reinforce its engagement and incorporate these views into the development of its sustainability strategies. Statements were heard from members of the communities of Jupiá, in Três Lagoas (MS); Barra do Riacho, in Aracruz (ES); São José dos Campos (SP); Helvécia and Juerana, located, Monthly respectively, in Nova Viçosa and Caravelas (BA). We thank our contributors both for the positive responses, which provide recognition of our efforts, and the negative ones, which help us to learn and constantly keep on developing. Annual The full text of the interviews can be seen at www.fibria.com.br/rs2009 Interview with Vicente Buteri – President of the Association of Traditional Fishermen of Barra do Riacho and Barra do Sahy – Aracruz, ES Vicente was born in Cachoeiro do Itapemirim (ES). At the age of 18, he went to work in Rio de Janeiro and remained there until he was 32 years old, when he moved back to Vitória. “When I came to Barra do Riacho, I had a fishing boat and I opened a seafood store, and then I was invited Quarterly to run the association. Fishing was being totally neglected, so I ended up accepting the challenge.” Today, the association has about 200 members, who supply seafood to stores in Aracruz and – Vitória: “The fishing is on a small scale, basically to sustain their families. There are very few large boats at Barra do Riacho. The fishermen don’t wipe out the fish stocks, like the big ships do”. – – According to Vicente, the fishermen have had to overcome many difficulties and to make adjustments in order to be able to continue fishing: “When the company (Aracruz) was set up, a dam was built on this river, and sometimes they open the gates for the water to flow into the reservoir and supply the company’s needs. But without the force of the current, the tide would come in and block the mouth of the river, and sometimes it stayed like that for two months and the fishermen didn’t have access to the sea. We were forced to hold a protest at Portocel. Things Fibria News Sustainability Report Specific publications “JornalEco” Monthly “Na estrada com segurança (Road Safety)” “NaFolha” Special publications Videos Management Plan, institutional folder, and others Institutional videos, on forestry and industrial safety, for training and on specific topics or areas relating to the company – Programmed visits Program for receiving visitors and showing them Fibria’s forestry and industrial operations, as well as the company’s socio-environmental projects. – have improved a lot; since then it has only been closed once.” “With progress, more boats and ships will certainly come, and then the fish will disappear. The impact of the companies, including Fibria, is enormous. The pollution of the river and the sea caused by the company’s sewage is great too. They say they treat the water before discharging it, but there’s always some waste in it. There’s also air and noise pollution – which drives the fish away.” In 2009, the JornalEco took first place in the Press Management category at the 35th Aberje Awards, presented by the Brazilian Association for Corporate Communication. ‘In the process of engagement, the company should ask the local communities for permission to begin planting, and they have the right to say no. If the position of opponents is ideological, it needs to be understood, not rejected out of hand.’ Fibria I Sustainability Report I 2009 44 45 www.blacksunplc.com © Black Sun Plc 2011 33
