Relevant Themes

Fibria carries out a periodical survey of its stakeholders to identify important issues that should be addressed in its strategy and management. Click here for detailed information about the thirteen material topics that were identified in the 2017 survey.

Additionally, we present here our position on some of the topics that are of interest of our investors.

Sustainable Development Goals (SDGs)

1) Do you regard the 17 Sustainable Development Goals (SDGs) and their associated 169 targets as relevant for your company?

Fibria believes that the Sustainable Development Goals (SDGs) present significant leadership opportunities for companies and provide a guide for developing impactful sustainability strategies across the full range of environmental, social and financial issues.

2) Which of the SDGs do influence or impact the future development or the perspectives of your company respectively of the sector you are doing business in?

Though we understand that in some way or another Fibria can potentially contribute to almost all of the SDGs, given the sector of operation, the company’s business and values, as well as our country of operation there are a few SDGs that are directly aligned to Fibria and that pose significant risks and opportunities. These are: 2. No hunger, 15. Life on Land, 13. Climate Action and 17. Partnerships from the Goals.

3) Which are the specific reasons for this impact?

2. No hunger

Our social projects are focused on developing our neighboring communities to mobilize into associations and networks, to produce various crops and raise small animals. Though this initiative, we are currently contributing to increasing the income of more than 5,000 families in the states of Bahia, Espírito Santo, Mato Grosso do Sul, and São Paulo. The program has three main guidelines: technical assistance to farmers; stimulus for the use of low-cost technologies, with reduction of environmental impact; incentives and guidance for access to public policies, which increase the possibilities of marketing the products. Income growth since the beginning of the program has totaled between 4 to 5 minimum wages per family.

13. Climate Action

Fibria believes that the solution to climate must take into consideration forests. Fibria’s natural and eucalyptus forests together maintain a carbon stock of over 18 million tCO2eq. Given the level of importance that climate has to the company, it undertakes a number of carbon-related initiatives, among them a shadow carbon price, an annual greenhouse gas inventory, the identification of risks and opportunities generated by the inclusion of this aspect in CAPEX processes, and the goal of doubling net carbon sequestration by 2025 in relation to 2011. Annually, we publish our report on greenhouse gas inventory, with updated results, historical results, and clarifications on our performance. Our inventory is assured according to the standards of ISO 14064 and the Brazilian GHG Protocol Program.

15. Life on Land

As a Brazilian forestry-based company and world leader in the production of eucalyptus pulp, Fibria manages an area of 1,056,000 hectares, of which 363,000 are intended for environmental conservation of native species. Fibria manages forests sustainably taking a landscape perspective in order to understand the systemic impacts in the region. Fibria is also a signatory of the Atlantic Rainforest Pact, which is dedicated to restoration of the most threatened biome in Brazil, in order to create synergies and large scale results, in addition to being a partner of the Vale do Paraíba Ecological Corridor, which promotes the connection between Serra do Mar and Serra da Mantiqueira.

17. Partnerships

Fibria wants to be part of the solutions that build a just and sustainable society. However, the company understand that the world’s largest challenges cannot be faced alone. Whenever possible Fibria seeks partners in its suppliers, customers, governments, NGOs, employees and other stakeholders in order to engage in open dialogue and foster collective solutions to the problems at hand.

4) In response to the SDGs and their associated targets, have you set any strategic measures already or do you plan to do so in the future?

In order to better understand the interactions and connections of the SDGs and our business, we conducted an initial analysis that investigated business performance on the SDGs, including a 2015 exercise where Fibria mapped the SDGs to its strategy, long-term goals, GRI indicators and 2013 Materiality. Since then we investigated the correlation between Fibria’s 2016 Materiality and the SDGs as well as focused our efforts to communicate this correlation more clearly to our stakeholders in our Annual 2016 Report. In fact, the Report seeks to appeal to our different sets of stakeholders and continuously improve access to information through tailored and interactive content. The Indicator Center outlines all environmental social governance (ESG) categorized by SDGs, Material Themes (based on the materiality refresh of 2016), Value Chain and GRI subcategories. The user is able to download, share on social media and choose preference for visualization of graphics (e.g. bar graph, line graph, etc.). I welcome you to visit to see for yourself here.

This is just the beginning in our SDG journey and we strive to continue to engage with stakeholders and deepen the connections between our business and the SDGs. We truly believe this it he way forward. We understand that this leverages potential opportunities and mitigates risks. It’s simply good for business. It also advances our transparency and accountability practices when communicating more effectively with our stakeholders by providing clear objectives that align our business to a wider global agenda for sustainable development. But more importantly, it provokes us to continuously improve our practices.

5) Do you think that the SDGs and their associated targets will gain importance in the future, both for your company and/or the sector you are working in and for your economic activity in general?

It is evident how the SDGs and their associated targets have gained traction in these last two. Since their announcement the SDGs have been disclosed globally and have helped businesses embed their sustainability and business strategies to a global agenda. We believe it to be both logical and necessary for the SDGs to continue to gain importance as companies within and outside of our sector, as well as other agents of society evolve in their work and cross-sectoral collaboration regarding the SDGs.

To access Fibria's infographic about the Sustainable Development Goals (SDGs), click here.

Climate Change

To what extent could climate change affect Fibria's operations in the medium and long term?

In a situation where less and less reliable climate and rainfall patterns are threatening to compromise our future security, Fibria's Technology Center is carrying out intensive on-going studies within our forests, in order to be able to anticipate future climate scenarios and strengthen our ability to protect the company's natural capital. There are also experimental plantations where we are seeking enhanced efficiency in the use of water. Taking care of our planted areas is essential to our business.

With the recent water shortages, brought about by extreme climate conditions, research into forest ecophysiology has been gaining increasing importance, spurring Fibria to intensify its meteorological monitoring and expand its experimental network.

Currently, Fibria has six river basins that are being closely monitored, from the entry of water through rainfall to the outflow of the river. One of the main aims is to constantly improve our understanding of the interactions between plant and climate and the use of natural resources.

In the area of forest protection, Fibria became a forestry sector pioneer in the use of the "Big Data / Predictive Analysis" approach, with a view to a better understanding of the "physiological disorder of the eucalyptus" (PDE), which resulted in the implementation of an action plan that involved initiatives ranging from the mapping of risk zones to the planting of tolerant clones, thereby substantially reducing the risks associated with PDE.

We are founding members of the Brazil Climate, Forests and Agriculture Coalition, an initiative that brings together forestry, cosmetics and agribusiness companies, sectorial and academic associations and leading civil society organizations addressing climate and the environment, in order to promote a low carbon economy. We seek to assist the government and establish alliances for international cooperation that enable progress to be made towards a new model of economic development.

"We have exercised our corporate citizenship in supporting the most important gatherings related to climate change. We believe the paths to addressing these issues necessarily pass through forests." – José Luciano Penido, 2015 Annual Report.

GMO

Genetically Modified Organisms (GMO) represent a potential opportunity to generate value for the company and for society. Consequently, since 2015, there have been discussions about the planting of genetically modified eucalyptus, involving Fibria and representatives of universities and non-governmental organizations. Together, we are investing in studies and extensive dialogue to assess both the potential and the ensuing social and environmental impacts of GMOs.

The classical methods for the genetic improvement of the eucalyptus have been the main focus of the research carried out by Fibria, aimed at improving the productivity, climate adaptability and quality of the forests planted by the company. We believe that the genetic benefits of these methods will continue to grow and are sustainable over time, mainly due to the natural genetic variability of the eucalyptus genus, which is considerable and still under-explored.

For certain specific objectives, natural genetic variability is insufficient or has not yet been identified in those species with which the company works. To achieve those objectives, Fibria understands that GMEucalyptus could be an important factor in raising our competitiveness, broadening the parameters and accelerating the gains that would be expected using the classical methods. Furthermore, Fibria believes that society as a whole should be able to benefit from the genetic engineering of forest species.

At present, Fibria does not plant GMEucalyptus on a commercial scale, but the company has a line of research devoted to the development of GMEucalyptus. The research carried out by the company in this area takes place in both contained (laboratory and greenhouse) and open (field experiment) situations. All the company's decisions on research into GMEucalyptus are in compliance with the current legislation and scientific knowledge and seek to take into consideration the needs of the various interested parties. To see the company’s full policy, click here.

"Our research is focused on classical improvement, which helps us to achieve increased productivity per planted hectare, as well as to deal with pests, diseases and, of course, climate change. We have not yet completed our studies and can be sure of only one thing: we want to exhaust all the possible risks before taking any decision regarding the use of GMOs," says Fibria CEO Marcelo Castelli. 

Eucalyptus

Fibria's eucalyptus plantations are renewable and all units are FSC® certified (FSC-C100042, FSC-C100704 and FSC-C110130) and PEFC/Cerflor, and their management involves the creation of ecological corridors of native forest, in order to preserve the biodiversity. Generally, the previous land use left the soil in a degraded state.

Beliefs/Perceptions/Opinions Fibria’s Position

“Where eucalyptus is planted, there is a green desert. The cultivation of eucalyptus jeopardizes the underground water reserves.”

In the areas studied and managed by Fibria, the belief that eucalyptus dries out the soil is not tenable.

  • Eucalyptus water consumption is similar to that of the native forests and the roots remain far from the water table.
  • The eucalyptus is ready for harvesting in about seven years, so it requires little human work on the soil.
  • Eucalyptus can be cultivated on land with little natural fertility and does not require much in the way of nutrients and pesticides, compared to other crops.

“Where there are eucalyptus plantations there is no biodiversity.”

Managed appropriately, the eucalyptus provides protection and conservation of the biodiversity.

  • Fibria sets aside around 34% of its property as environmental conservation areas¹.
  • Managed in mosaics, the eucalyptus plantations, intertwined with the native vegetation, provide greater connectivity between the areas of natural forest, and the plantations are used by the fauna for passage, resting and feeding. The Technology Center keeps a biodiversity database that has recorded 652 birds, 122 mammals and 1,943 plant species within the company’s areas.
  • The planting of eucalyptus in areas that have already been altered not only diversifies the landscape, among other benefits, but reduces the pressure on the natural forests.
¹ Fibria 2017 Sustainability Report

“Eucalyptus monoculture contributes to environmental imbalance and climate change.”

With its rapid growth rate, the eucalyptus helps to absorb CO2 from the atmosphere, while returning pure oxygen to nature.

  • One hectare of eucalyptus absorbs 10 tons of carbon a year from the atmosphere, thereby helping to reduce pollution and global warming.
  • Planted eucalyptus forests thus play an important role in humanity’s efforts to neutralize the greenhouse gases that are responsible for global warming.

“Monoculture does not yield economic and financial benefits for the country.”

The contribution made by the eucalyptus to the sustainable development of Brazil is growing. Activities linked to the forestry sector already account for a significant proportion of the country’s GDP and generate millions of jobs through direct and indirect employment.

  • Now we have the Forest Savings Program, which accounts for 28% of the supplies to the mills. The program works as follows: Fibria subsidizes producers and provides support in organizing the planting, as well as the transfer of technology and knowledge. The company also finances its partners’ production and their debts, converted into wood, are settled when the trees are harvested.
  • This sponsorship also yields environmental gains. In addition to helping to mitigate the effect of the concentration of land ownership, the partnership involves farmers whose properties are formally endorsed as in compliance with the forest code regulations and state legislation. The producers are also encouraged to plant seedlings of native species, up to 3.5% of the total, for forest restoration.

To access the New Generation Plantations (NGP) case study of the Mosaics Initiative click here.

Local Communities – From conflict to partnership

Our relationship with local communities has been marred in the past by conflict. But through dialogue and structured engagement programs, coexistence based on cooperation has been achieved. The company now seeks to establish partnerships, so that its neighbors can become part of its business value chain. For each challenge, there is a specific strategy to deal with the appropriate form of engagement, in an effort to foster local development in a customized manner.

Social Sustainability Strategy

Main Engagement Processes – Local Development
Rural Beekeepers MST Indigenous communities Fishing communities Traditional communities Urban communities
PDRT Beehives Sustainable settlements Sustainable Amerindian territories Small community businesses Handicrafts Support for Public Administration
support processes
Instituto Votorantim Parcerias Institucionais e Governamentais
Demandas pela Terra
Fomentados Rede Responsável

To access the New Generation Plantations (NGP) case study about one of our development programmes with the neighboring communities, click here.

To learn more about Fibria’s relations with the neighboring communities, click here.

Human Rights

Fibria is fully committed to respecting and supporting universally recognized basic human rights. With this in mind, we seek to establish principles and regulations to value and protect these rights, as well as ensure the implementation of remedial measures should they be breached as a result of its direct or indirect activities, its operations, projects, joint ventures and other types of association, as well as its productive chain, in the regions where it operates.


To access our position on human rights, click here.

Diversity

One of Fibria's goals in 2016 and 2017 was to focus on diversity. We prepared a diagnostics study of all company practices: what they are, how they are communicated, and where opportunities can be found. We also conducted a diagnostics study about gender, issues on race, remuneration, sexual orientation, and disabilities, among other aspects. In possession of this map, we initiated a process to raise awareness of senior management regarding this aspect. The next step was to create an internal and multidisciplinary governance to address the subject.

Representativeness of minority groups  
Women 14%
Pardos and Blacks 35%
Employees over 50 years old 14%
People with disabilities 3%

Source: Fibria's report 2017

Last updated on
Close