AMERICANA, 2013Pedro de Toledo Piza

Avocat de l’environement

Sustainability of Pulp and Paper SectorWinnings and Challenges

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Environmental Concern

• Stockholm Conference – 1972.

• Earth Summit – 1992 (Rio de Janeiro)

• Millennium Summit for Social Development – 2000:

• World Summit for Sustainable Development – 2002.

• Rio + 20: United Nations Conference on Sustainable Development – 2012.– Forum on Science, Technology and Innovation for Sustainable Development (2012).

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International Principles of Sustainability Adopted in Brazil

• Sustainable Development (under articles 170 and 225, Brazilian Federal Constitution)

• Prevention

• Polluter Pays x User Pays– Internalization of environmental costs and charge

– Retribution for the economic use of a natural resource

• Coperation and Participation (under articles 170 and 225, Brazilian Federal Constitution)

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• Environmental Disasters

• Labels – International acknowledgment trying to guarantee quality

• FSC, CERFLOR, PEFC, Blue Engel, Eco Mark, EcoLabel, White Swan, ISO,

OSHAS...

• Brazil

– Labels (XX century) + environmental management:

• Environmental Control;

• Sustainable Management of Water Resources;

• Energy Cogeneration;

• Climate Change;

• Ecological Zonning Plans and Protection of Biodiversity;

• 100% of Planted Forests + Conservation of Native Forest;

• Social Demands (Indian, Landless Social Movement, NGO);

• Certification

Sustainability School. Learning in a reactive way...

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• Historical precedents– Institution of hard emission standards;– Environmental Zonning;– Disciplinary penalties - command & control mechanisms

• Evolution– A new era starts:

• Recycling and reuse;• Reutilization and reduction;• Renewable sources;• Environmental Accountability;• Preservation of Sensitive Areas.

• Global Tendences: Triple Bottom Line– Interfaces:

• Economic;

• Environment;• Social (spiritual, moral and ethics).

Economic

Environment

CorporativeGovernance

Sustainability School. Learning in a proactive way...

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Myths against Pulp and Paper Sector

• Formation of GREEN DESERTS

• Land competition: “I do not eat eucalyptus”

• Air Pollutants

• Competition of subterranean water

• Hydrical pollution

• Rural depopulation and unemployment

• Monoculture – fauna and flora extinction

Sustainability

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Sustainability...

“Triple Bottom Line…”

What the hell now?

Corporate EthicsWhy should apply for that?

CommitmentWhat`s the reward? How

much cost?

Sustainabli...WHAAAATTT?????

Partnership?With Whom?

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Corporate Governance - a new point of view

Paternalisticphilanthropy Charity

The quest for sustainability goes beyond management and environmental control.It exceeds environmental standards of command and control

More than economic and financial results, annihilates the old "scorched-earth policy" and inaugurates new "modus operandi". Management is routine ...

Sustainability is beyond...Sustainability is beyond...

• There’s a new paradigma for doing business based on equality between environment, social and economics

• Prevail ethics, transparency, disclosure and envelopment with stakeholders

• Sustainability is an issue that affects all of us. So, it shall prevail

SUSTAINABILITYCompetitiveness

SOCIOECONOMICISSUES

Environmental perception

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New Attitudes = new results!

Process control

Eliminate problems

Quality and Environmental Certifications

New conceptvalue & principle

Past vision:Reactive attitude

Proactive approach:Sustentainability

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Corporative Governance. The routine is over!!

• Business Consciousness Examination

– Self analisys and knowledge its own strenghts and weakness. Incorporate the

sustainability as a business strategy

• Cultural Change

– Incorporate triple bottom line;

– Understand the positive effects of its application.

• Motivation

– Stakeholders exigencies + opportunities;

– Drive forces: Communication and willingness to

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Corporative Governance

Economy

SocialEnvironment

CorporateGovernance

• Interpretation e holistic application equal and equidistant.

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Corporate Sustainability of Pulp and Paper... We’re doing

• Legal Issues: – Federal;– State;– Township Administration.

• Ecological, Economic and Environmental Zonning Plans;

• Interaction Public Plans, Programs and Policies;

• Land Use: –Regional population and communities;– Forestry Fomentation/development.

• Forestry Planing Actions integrated with permanent employments.

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- “On line” monitoring of Impacts and Natural Resources Quality;

- Fauna and flora monitoring actions on ecological corridors;

- Programs of Environmental Education;

- Salvation and Rescue of Archeological heritage found on forestry base and knowledge dissemination;

- 100% of planted forests. No pressure on native areas;

- Local communities;

- Ecological Inventory and Setting Priorities;

- partnerships and incentive with Universities and public administration

Corporate Sustainability of Pulp and Paper... We’re doing

More than 9.5 mi ton/year with environmental permits in last 3 years

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Cliente Tipo Local Capacidade Ano

Industrial Rio Grande-RS Pulp -1.600.000 ton/yPaper - 500.000 ton/y

2006

Industrial Imperatriz-MA Pulp -1.500.000 ton/y Paper - 500.000 ton/y 2010

Industrial Palmeirais-PI Pulp -1.500.000 ton/y Paper - 500.000 ton/y

2011

Industrial Três Lagoas-MS Pulp - 1.750.000 ton/y 2011

Industrial/ Florestry Lençóis Paulista-SP Pulp - 1.000.000 ton/y

Planted area- 90.000 ha 2012

Industrial Peixe-TO Pulp - 2.000.000 ton/y 2012

Industrial Ortigueira-PR Pulp -1.800.000 ton/y Paper - 500.000 ton/y

2012

Recent Pulp and Paper Projects

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Cliente Tipo Local Capacidade Ano

Florestry Mato Grosso do Sul Planted area- 295.000 ha 2007

Florestry Rio Grande do Sul Planted area- 100.000 ha 2007

Florestry Rio Grande do Sul Planted area- 22.000 ha 2008

Florestry Rio Grande do Sul Planted area- 13.000 ha 2011

Infrastructure São José do Norte-RS

Barge Terminal - 1.750.000 ton/y

2009

Infrastructure Rio Grande-RS Dredging - 10.000.000 m³ 2009

Infrastructure Imperatriz-MA Railway- 33 km 2011

Infrastructure Imperatriz-MA Roadway - 11 km 2011

Recent Pulp and Paper Projects

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Market Pulp Projects on South AmericaStudies and Basic Eng Implementation Start

2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020

ELDORADONew mill1.500.00 t/y

MONTES DEL PLATAUruguay- New mill1.300.000 t/y

SPC MARANHÃONew Mill1.500.000 t/y

CMPC GUAÍBANew Line1.300.000 t/y

KLABINNew Mill1.400.000t/y (Capac)1.000.000t/y (Prod. Prev.)

LWARCEL ????New Line750.000 t/y

HORIZONTE 2 ????New Line1.600.000. t/y

ELDORADO 2 ????New Line1.500.000 t/y

VERACEL 2 ????New Line1.500.000 t/y

CENIBRA 2 ????New Line

BRAXCEL ????New Line1.500.000 t/y

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• Corporate Environmental Inteligency Triple Bottom Line;

• Communities on Influence Area – Manpower qualification;

• Biodiesel production on BIOREFINARY;

• Climate Change– Logistic Improvement – Hydro ways and Railways;– Inventory and Neutralization of Energy Matrix;– Green energy, green fuels and chemichals

• Land competition (environ, biomass, food, new products…)

• Extractives, lignin, hemicelluloses, lubricants, fertlizers…

Pulp and Paper Industry. Trends and Opportunities

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• Master Plan aiming new lines and growth prognostic;

• Water footprint

• Embedding sustainability variables – cascading effects;

• Favorable conditions to continued improvement;

• Mill and forestry bases seen as a social and environmental benefits;

• Look for new technologies and new products

• Innovation and Technology Research Centers

Pulp and Paper Industry. Trends and Opportunities

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ProductionProduction

• Posture:– Environmentally healthy and feasible;– Economically feasible and profitable;– Socially Fair.

ConservationConservation

• Positive results in the balance sheet

• Appreciation of investors’ portfolio

• Environmental control, Social Responsability and Profit + SUSTAINABILITY

VALUE-ADDED TO INVESTORS’ PORTFOLIO

Stakeholders’ satisfaction

Positive Impacts of Corporate Sustainability of Pulp and Paper

EnvironmentalEnvironmentalconservationconservation

ProfitsProfits

Social SatisfactionSocial Satisfaction

EnvironmentEnvironmentgains and gains and

improvementimprovement

P & PP & PProductionProduction

Positive Impacts of Corporate Sustainability of Pulp and Paper

Presentation 23

ENGINEERING highlights our strong history and track record in designing and implementing technical solutions.

We are proud of our heritage and confident that we as engineers can make a difference by originating, designing, shaping, orchestrating and implementing sustainable solutions.

THANK YOU!

Pedro de Toledo PizaPhone: + 55 11 3472-6933pedro.piza@poyry.com