Eucalyptus Plantation 2 2020 PUBLIC SUMMARY

Dear reader,

In the pages that follow, you will learn more about ’s efforts to properly manage our forests and about social and sustainability policies.

This is a demonstration of Klabin’s commitment to generating wealth, always respecting nature, our employees and society, in addition to maintaining its commitment to long-term compliance with the principles and criteria set out by the Forest Stewardship Council ® (FSC)

3 Contents SUSTAINABILITY 11 POLICY

SOCIAL AND ENVIRONMENTAL 17 RESPONSIBILITY POLICY 7 ABOUT KLABIN

CODE OF EXTERNAL 15 CONDUCT 19 COMMITMENTS FOREST 41 STEWARDSHIP

FOREST STEWARDSHIP 67 INDICATORS DESCRIPTION OF 25 THE VENTURE

SOCIO-ENVIRONMENTAL 47 RESPONSIBILITY

GRAPHIC DESIGN EXECUTIVE PRODUCTION Be Comunica Communications, Social Responsibility KLABIN COORDINATION and Institutional Affairs Sustainability and Environment IMAGES Management - Florestal SC. Klabin Otacílio Costa Unit 6 2020 PUBLIC SUMMARY

About Klabin 7 Klabin is ’s largest paper manufacturer and exporter and the leader in manufacturing paper and cardboard for packaging, corrugated packaging and industrial bags. It is also the only company in the country to supply hardwood pulp (eucalyptus), softwood pulp (pine) and fluff pulp to Pine Logs Negri Photo: Anna Carolina the market simultaneously.

On July 22, 2000, Celucat and Igaras were merged, creating the Klabin Florestal forest complex, which today manages an area of about 140,000 ha, spread across 39 municipalities in the state, with as its Social and Economic Development hub.

Klabin strives for accreditation of all its units. When there is a need to source non-certified wood, Klabin is committed to implementing its best efforts to avoid buying wood or wood fiber from the following categories:

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Wood sourcing policy

The company’s endeavors to avoid purchasing:

• Wood from illegal logging;

• Timber whose harvesting has violated civil and traditional rights;

• Wood from forests whose high conservation value is threatened by management activities;

• Wood from forests whose land is being converted into crops or intended for uses other than forestry;

• Wood from forests where genetically modified trees are planted.

In 2004, the Santa Catarina Forestry Unit was certified by the Forest Stewardship Council® (FSC®), which ensures that its forest plantations embrace the best socio-environmental and economic practices.

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Sustainability policy 11 Klabin S/A produces packaging paper and paperboard, corrugated board packaging and bags. It operates in the domestic and international markets and all activities related to its products and services are based on the following sustainability principles:

1 Pursue competitive quality to sustainably improve its results, 3 Ensure the value of the forest by researching, developing and base by transforming it into continuously enhancing existing sustainable and competitive and new processes, products products. and services, to meet customer, employees, shareholder, community, supplier and Ensure the supply of planted stakeholder expectations. 4 timber to its industrial units, in a sustainable manner and with no harm done to the related natural ecosystems, in its own operations and in those of supported producers. 2 Promote collaboration with customers, suppliers, academia and other stakeholders in 5 Practice and encourage the pursuit of innovation in recycling of pulp fibers in its products and processes, and production chain. value chain improvement.

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6 Avoid and prevent pollution 8 Encourage the personal and by reducing environmental professional growth of its impacts related to effluent, solid employees and the pursuit waste and air emissions, always of continuous improvement 11 Practice social responsibility taking these elements into in work, health and safety focusing on the communities consideration in maintaining conditions. where it operates, according and improving production to the private social investment processes, developing and platform, based on the lines of enhancing products, in forestry action: local development and logistics operations, and 9 Champion a culture of ethical and education. monitoring critical suppliers values and develop best based on economic and corporate governance practices. socio-environmental aspects. 12 Comply with applicable product, environment, health and safety legislation 10 Comply with the United and standards. Nations’ Sustainable Development Goals (SDGs) 7 Strive to apply the most and focus actions and efficient and up-to-date investments on strengthening 13 Ensure that the company’s engineering technologies and this agenda, acting proactively operations constantly seek to solutions in the implementation to promote positive social and reduce greenhouse gas (GHG) of new projects and ventures, environmental development emissions. ensuring the protection of where it operates. human health, natural resources and the environment.

13 Photo: Anna Carolina Negri 14 2020 PUBLIC SUMMARY Code of conduct

Since its creation, Klabin has striven to provide its employees, employees, encouraging them to adopt daily conduct guided by customers, suppliers and society in general with a relationship the principles and basic values established in the code. supported by ethical conduct and socially proven principles. The high standards complied with by Klabin are key drivers of the Klabin maintains the following contact communication channels company’s growth. The assumptions in Klabin’s Code of Conduct with the Ethics Committee - Ombudsman: go beyond simple compliance with laws and policies and aim to establish equal standards among its directors, officers and

[email protected] www.klabin.com.br/ouvidoria 0800 718 7814 15 RPPNE Serra da Farofa Complex 16 Photo: Zig Koch 2020 PUBLIC SUMMARY Social and environmental responsibility policy to outsource suppliers

At Klabin, all businesses are guided by ethics, transparency The contracting model was reviewed based on sustainability and compliance with the principles of sustainability, in order to standards, such as on-time delivery, credit status, compliance ensure financial balance, social responsibility and environmental with applicable laws, tax compliance, the prohibition of child conservation. The company thus looks for suppliers that and forced labor, and adherence to environmental protection follow the criteria specified in the Social and Environmental measures. Responsibility Policy for Outsourcing Suppliers. Those interested in supplying Klabin should go to the company’s website and the Contact Us> Supplier Registration tab.

17 Tramatusa Craftswomen Society in Lages/SC 18 2020 PUBLIC SUMMARY

External Commitments

19 Klabin strives to play an active role in socio-environmental and economic issues, voluntarily engaging with renowned institutions, described in the following pages.

CORPORATE SUSTAINABILITY NATIONAL PACT FOR THE ERADICATION GLOBAL COMPACT INDEX (ISE) OF SLAVE LABOR

Aware of its influential role in engaging Created in December 2005 by the Launched in 2005, it brings together society to build a more equitable and BM&FBovespa stock exchange in Sao Brazilian and multinational companies sustainable country, Klabin has been Paulo, the index assesses the different that are committed to not engaging with a signatory to the Global Compact since aspects of sustainability in an integrated businesses that exploit slave labor. In addition 2003. Created by the United Nations manner. Its goal is to act as a driving to economically restricting employers who (UN), the initiative, which includes more force for good practices in the Brazilian commit such crimes, the pact provides support than 5,200 organizations around the business environment. Companies are for decent work, vulnerable workers’ social world, aims to engage the international selected based on criteria established integration and the fight against enticement. business community to embrace, in their by the Sao Paulo School of Business Signatories to this initiative control the pact business practices, core values regarding Administration, at the Getulio Vargas and are committed to publicly disclosing the human rights, labor relations, the Foundation (EAESP-FGV). Klabin has results of their efforts to ban slave labor. environment and the fight been part of the ISE since 2014. against corruption. Klabin has been part of this initiative since 2013.

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SUSTAINABLE DEVELOPMENT BUSINESS PACT FOR INTEGRITY GOALS - SDGS AND AGAINST CORRUPTION

The pact was launched in June 2006 by the Ethos Institute of Business Created in 2016, the Sustainable Development Goals (SDGs) are a global and Social Responsibility, UniEthos - Training and Development of Socially development agenda with 17 objectives and 169 goals established by the Responsible Management, Patri Government Relations & Public Policies, the United Nations (UN) for governments, civil society and the private sector. United Nations Development Program (UNDP), the United Nations Office on Drugs and Crime (UNODC) and the Brazilian Global Pact Committee. The (UN) initiative brings governments, civil society and the private sector together in a global agenda to benefit people, the planet, peace and The main commitments are: prosperity, setting global priorities and aspirations for 2030. • Information about legislation; Klabin has been working not only to highlight the initiatives it already • Disclosure, guidance and responses on legal embraces and contribute to this agenda, but also to identify new principles applicable to their activities; opportunities for action and encourage the SDGs to be increasingly integrated into the company’s strategic planning. • Prohibition against bribery; transparent and lawful contribution to political campaigns; The objectives are: • Disclosure of the pact’s principles to its audiences; 1. No poverty 8. Decent work and 13. Climate action economic growth 14. Life below water • Open and transparent investigations; 2. Zero hunger and 9. Industry, innovation sustainable agriculture and infrastructure 15. Life on land • Participation in the production chain. 3. Good health and well-being 10. Reduce inequalities 16. Peace and justice strong institutions 4. Quality education 11.Sustainable cities Klabin has been a signatory to this pact since 2013. and communities 17. Partnerships 5. Gender equality for the goals 12.Responsible 6. Clean water and sanitation consumption and production 7. Affordable and clean energy

21 ID LOCAL GHG PROTOCOL

The Local Development and Large Enterpriss Initiative (ID In 2013, Klabin joined this program that aims to drive the Local) aims to coordinate the business sector to reflect, corporate culture to prepare and publish greenhouse gas exchange experiences and create proposals (GHG) emission inventories, providing participants with access and business guidelines for local development. It fosters the to international instruments and quality standards. Originally dialogue, study, articulation and co-creation of proposals, developed in the USA in 1998 by the World Resources methodologies and local management tools. Institute (WRI), the GHG Protocol is a tool used to understand, quantify and manage GHG emissions. The goal is to include local development in companies’ business strategy for investments in the most vulnerable areas within their scope. In 2014, Klabin was one of the companies acknowledged by the Innovation and Local Development Cases initiative with the “Structuring local empowerment and territorial engagement” case, in Parana state. The work brought together a set of interconnected COMPANIES FOR THE CLIMATE (EPC) efforts focused on the development of the community surrounding the company in that state. Since 2013, Klabin has been part of this lasting business platform to engage, raise awareness and join business leaders for the management and reduction of greenhouse The company has been a leader since the 1980s, but with gas (GHG) emissions, the management of climate risks and the Puma Project, its actions are being extended the proposition of public policies and positive incentives on to a wider community. climate change.

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CARBON DISCLOSURE PROJECT (CDP) ABRINQ FOUNDATION

Klabin has been part of this worldwide initiative since The Abrinq Foundation program recognizes organizations 2006 to enable dialogue between investors and companies that advocate for childhood and adolescents’ rights with the seeking to minimize the environmental impacts of their Child-Friendly Company certificate, which attests that they businesses in the face of climate change. do not exploit child labor, do not allow it in their production chain and foster social efforts that encourage education and learning for children and young people in the communities where they operate.

FOREST DIALOGUE

Forest Dialogue is a pioneering, independent initiative that enables interaction between business representatives in the forestry sector, environmental organizations and social movements to create a vision and a commitment for both. It fosters effective efforts associated with forestry production, in addition to expanding efforts to preserve

and restore the environment, generating benefits for the Up Reading Project Growing participants in the Dialogue and for society in general. Klabin has been engaged in the Brazilian Forest Dialogue since 2009 as a member of the Coordinating Board, which comprises representatives of five companies and five civil society organizations.

23 Santa Rita Farm in Otacílio Costa Photo: Sumatra Inteligencia Ambiental Description of the venture

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Description of the venture

25 To practice sustainable development, Klabin Santa Catarina has been carrying out its forest stewardship activities according to the guidelines: Main goal: Wood production for the pulp industry and for the log trade. Secondary goals: 1. To use only planted forests;

Photo: Anna Carolina Negri Photo: Anna Carolina 2. To maintain biodiversity through knowledge, monitoring and protection of local fauna and flora; 3. Soil preservation through environmental concepts in land preparation and road opening / maintenance operations; 4. Protection of water resources through a program for the restoration of permanent preservation areas; 5. Economic sustainability and forestry competitiveness through strategic planning, the development of new superior genetic material technologies, and forest stewardship studies; 6. To adopt a social approach to put in place, expand and maintain forest areas and associated activities; 7. Maintain High Conservation Value Forests based on knowledge and protection of the features that establish such areas; 8. Commit to FSC® Principles and Criteria.

26 Chip stack 2020 PUBLIC SUMMARY Photo: Anna Carolina Negri The following table shows Klabin’s forest asset features in Santa Catarina. Table 1 - Land Assets of Klabin Florestal Santa Catarina Forest areas Total SC (ha) Total forest area 136,326.98 Forest area certified by FSC® 133,866.23 Total planted forests 60,596.61 Planted forests certified by FSC® 59,224.77 Total preserved native forests 68,748.20 Preserved native forests certified by FSC® 67,829.70 Total infrastructure¹ 6,982.17 FSC® certified infrastructure¹ 6,811.99

Database: 04/30/2019. ¹ Roads, divisions, ponds, improvements, etc.

Location Municipalities Socioeconomics Agrolândia, , Bela Vista Toldo, The municipalities where Klabin Region , Bom Retiro, Braço do Trombudo, operates in Santa Catarina have, Lages , CYearinhas, Capão Alto, Cerro in general, good Municipal Human Negro, , CuritibYears, , Imbuia, Development Indexes (MHDI), with Geographical location Itaiópolis, Chapadão do Lajeado, Lages, Leoberto room for economic growth in the Latitude 27º 50’ S Leal, , Monte Castelo, Otacílio Costa, more vulnerable classes. In the 39 Longitude 50º 15’ W , Palmeira, , Petrolândia, Ponte municipalities where the company Alta, do Norte, , Rio do operates, the average MHDI is 0.698, Average altitude Sul, , Santa Cecília, , São Cristóvão compared with an MHDI of 0.774 in 850 m do Sul, São José do Cerrito, Taió, Timbó Grande, Santa Catarina (IBGE, 2010). , , . 27 Geoclimatic data areas are located) consists of sediments of the carboniferous, Permian and Triassic Climate ages, tagged as Super-Group Tubarao, and The prevailing mesothermal climate in Santa Passa-Dois and Sao Bento Groups. Catarina provides pleasant temperatures, ranging from 13°C to 25°C. The temperate, Relief humid climate with rain evenly spread Lages’ plateau mostly features a throughout the Year is rated Cfb according to homogeneous division formed by hills. the Köppen classification. Frosts are common In some sections, the presence of in the region in winter, with around topographic ridges is observed, generally 27 per year. facing south-east. Most of the elevations in the unit range from 850 m to 900 m; with Annual Average Temperaturel the Morro do Tributo at 1,200 m and the 17,8 ºC highest point in Klabin’s areas is Morro das Antenas, in Urupema, at 1,785m high. Annual Average Rainfall 1.841 mm Hydrology According to the level 1 codification of Geology the Hydrographic Basins in Brazil, the The geology of the state of Santa Catarina state of Santa Catarina comprises three Photo: Zig Koch can be divided into three areas: the Atlantic Hydrographic Basins: the Parana / Paraguay Shield, the Parana Basin, and Quaternary River Basin, the Uruguay River Basin and Sediments. The sedimentary layer of the the South and Southwest Atlantic Basin. Parana Basin in the state of Santa Catarina Klabin’s plantations in Santa Catarina cover (where the company’s forest stewardship areas in these basins, in the Hydrographic Regions 4, 5 and 7.

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Image 1 - Location of Klabin Florestal SC Properties

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Biological data

Flora The prevailing vegetation in the region covered by Klabin in Sant Catarina state includes mixed ombrophilous forest, with phytophysiognomy areas and dense ombrophilous forest. As part of the Atlantic Forest, the preserved forests that Klabin maintains are some of the most important Brazilian biomes. The data currently available refer to surveys carried out in several of the company’s farms, where 959 species of native flora were identified (Table 2), as follows:

Table 2 - Number of flora species identified at Klabin’s forms in Santa Catarina Species Class / Group Identified Species with proven preservation status Pteridophytes 71 10 Arboreal /shrubs 459 74 Grass 348 39 Lianas 81 23 Subtotal 959 146 Source: Klabin S. A., 2020

RPPNE Serra da Farofa Complex Photo: Rafael Menegucci

31 The flora survey carried out in Klabin’s areas found endangered species as according to the official list produced by the International Union for Conservation of Nature (IUCN) 2019.2, the Brazilian Institute of the Environment and Renewable Natural Resources (Ibama) 2002, the Ministry of the Environment 2008, and the Sao Paulo State Environment Council (CONSEMA / SC) 2014. Table 3 - Flora with recognized conservation status in the most critical categories identified on Klabin’s farms in Santa Catarina Specific Name Common Name Growth Habit Category Aniba firmula (Nees & Mart. ex Nees) Mez Cinnamon Arboreal CR= Apuleia leiocarpa (Vogel) J.F.Macbr. Grapia Arboreal CR= Araucaria angustifolia (Bertol.) O. Kuntze Araucária Arboreal CR* VU/AE** CR#VU= Azara uruguayensis (Speg.) Sleumer Amargoso Arboreal VU= Buchenavia kleinii Exell - Arboreal LC/NT*EN= Butia eriospatha (Mart. ex Drude) Becc. Butia-da-serra Arboreal VU*AE** CR# EN= Campomanesia guaviroba (DC.) Kiaersk. Araçarana Arboreal CR= Campomanesia neriiflora (O.Berg) Nied - Arboreal VU* Campomanesia reitziana D. Legrand - Arboreal VU** Cedrela fissilis Vell. Cedro-amarelo Arboreal EN* Cedrela odorata L. Cedro-rosa Arboreal VU* Cinnamomum triplinerve (Ruiz & Pav.) Kosterm. - Arboreal EN= Clethra scabra Person Carne-de-vaca Arboreal VU= Drimys angustifolia Miers Casca-de-anta Arboreal VU= Eugenia neomyrtifolia Sobral - Arboreal EN*

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Specific Name Common Name Growth Habit Category Geonoma schottiana Mart. Guaricana Arboreal EN** = Guatteria australis A.St.-Hil. Cortiça, Embiú Arboreal VU= Heisteria silvianii Schwacke Casca-de-tatu Arboreal EN= Inga lentiscifolia Benth. Ingá-ferro Arboreal VU* NT= Jacaranda puberula Cham. Carobinha Arboreal NT= Lycianthes rantonnei (Carrière) Bitter - Arboreal CR= Margaritaria nobilis L.f. Figueirinha Arboreal EN# Maytenus evonymoides Reiss. - Arboreal EN= Mimosa taimbensis Burkart Bracatinga-mirim Arboreal EN* VU# Moquiniastrum polymorphum (Less.) G. Sancho - Arboreal EN Myrceugenia bracteosa (DC.) D.Legrand & Kausel - Arboreal VU* Myrceugenia scutellata - Arboreal VU* Myrcianthes pungens (O.Berg) D. Legrand Guabiju Arboreal EN* Myrciaria cuspidata O.Berg - Arboreal VU* Myrocarpus frondosus Cabreúva Arboreal DD*VU= Ocotea catharinensis Mez Canela-preta Arboreal VU*AE**CR#VU= Ocotea lancifolia (Schott) Mez - Arboreal EN= Ocotea nectandrifolia Mez(*) - Arboreal VU= Ocotea odorífera (Vell.) Rohwer Canela-sassafrás Arboreal AE**CR= Ocotea porosa (Nees &Mart.) Barroso Imbuia Arboreal VU*VU/AE**CR# EN= Ocotea silvestris Vattimo-Gil Canela Arboreal VU=

33 Specific Name Common Name Growth Habit Category Oreopanax fulvus Marchal Fiqueira-do-mato Arboreal VU= Ossaea amygdaloides (DC.) Triana - Arboreal EN= Pausandra morisiana (Casar.) Radlk. - Arboreal CR= Persea willdenovii Kosterm. Pau-andrade Arboreal CR= Picramnia parvifolia Engl Cedrinho, pau-amargo Arboreal VU= Piptadenia affinis Burkart - Arboreal VU# CR= Podocarpus lambertii Kl. Pinho-bravo Arboreal NT* EN # Podocarpus sellowii Klotzsch ex Endl. - Arboreal EN*CR= Psidium longipetiolatum D.Legrand - Arboreal EN= Rhamnus sphaerosperma Sw. Cangica Arboreal VU= Sessea regnellii Coreana Arboreal CR= Solanum aparadense L.A. Mentz & M. Nee - Arboreal EN= Solanum leucodendron - Arboreal LC/CR* Styrax acuminatus Pororoca Arboreal EN= Symphyopappus lymansmithii B.L. Rob. - Arboreal DD** VU# Tibouchina trichopoda (DC.) Baill. - Arboreal EN= Tibouchina urvilleana (DC.) Cogn.(*) - Arboreal EN= Weinmannia paulliniifolia Pohl ex Ser. Gramimunha Arboreal NT= Aeschynomene selloi Vogel - Herbaceous EW= Alternanthera micrantha R.E. Fries Penicilina Herbaceous NT= Apteria aphylla Barnhart ex Small - Herbaceous VU=

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Specific Name Common Name Growth Habit Category Eriocaulon magnificum Ruhland Gravatá-manso Herbaceous VU= Eriocaulon modestum Kunth - Herbaceous VU= Eryngium zosterifolium H. Wolff Caraguata Herbaceous EN= Hypochaeris catharinensis Cabr. - Herbaceous VU# Monteiroa ptarmicifolia (A. St.-Hil. & Naudin) Krapov. - Herbaceous VU= Paepalanthus catharinae Ruhland - Herbaceous VU= Perezia squarrosa (Vahl) Less. Margaridão-de-cubatão Herbaceous CR= Syngonanthus chrysanthus (Bong.) Ruhland. - Herbaceous EN= Tibouchina rupestris Cogn. - Herbaceous EN= Trichocline catharinensis Cabr. Cravo-do-campo-catarinense Herbaceous DD**VU= Xyris capensis Thumb. - Herbaceous LC*VU= Aechmea kleinii Reitz - Liana/Epiphyte/Bindweed. EN*AE**EX# Aechmea pimenti-velosii - Liana/Epiphyte/Bindweed. EX# Billbergia alfonsi-joannis Poço-de-jacó, gravatá, manjola Liana/Epiphyte/Bindweed EN/AE**VU# Dyckia hatschbachii Gravatá, bromélia Liana/Epiphyte/Bindweed EN/AE** Fuchsia regia (Vell.) Munz Brinco-de-princesa Liana/Epiphyte/Bindweed NT= Griselinia ruscifolia (Clos) Taub. - Liana/Epiphyte/Bindweed. VU= Lathyrus hasslerianus Burkart - Liana/Epiphyte/Bindweed EW= Maytenus boaria Molina Coração-de-bugre Liana/Epiphyte/Bindweed. VU= Mikania decumbens Malme - Liana/Epiphyte/Bindweed. EN= Mikania oreophila M.R. Ritter & Miotto Guaco Liana/Epiphyte/Bindweed EN=

35 Specific Name Common Name Growth Habit Category Mikania ulei Hieron. - Liana/Epiphyte/Bindweed EN= Passiflora actnia Hooker - Liana/Epiphyte/Bindweed EN= Passiflora edulis Sims Maracujá Liana/Epiphyte/Bindweed NT= Passiflora organensis Gardner - Liana/Epiphyte/Bindweed EN= Viola cerasifolia A.St. - Hil. - Liana/Epiphyte/Bindweed NT= Vriesea biguassuensis Gravatá, manjola, bromélia Liana/Epiphyte/ Bindweed. AE**EX# Blechnum mochaenum var. squamipes (Hieron.) de la Sota - Pteridophyte AE**CR= Blechnum penna-marina (Poir.) Kuhn - Pteridophyte VU= Blechnum spannagelii Rosenst. - Pteridophyte EX# Botrychium virginianum (L.) Sw. Samambaia Pteridophyte DD** VU= Cyathea corcovadensis (Raddi) Domin -de-espinho Pteridophyte EN# Dicksonia sellowiana Hook. Xaxim Pteridophyte EN/AE**CR#VU= Hymenophyllum magellanicum Willd. - Pteridophyte DD** VU= Plagiogyria fialhoi (Fée & Glaz.) Mett. Samambaia Pteridophyte DD** EN=

* Official 2019 IUCN (International Union for Conservation of Nature) version 2, ** IBAMA (Brazilian Institute of the Environment and Renewable Natural Resources) 2002, MMA (Ministry of Environment) 2008., # CONSEMA 2014 = Rio Grande List do Sul (2014). Where: AE: Endangered; EX: Presumably extinct; CR - Critically threatened; EN - In danger; EW - Extinct in Nature; VU - Vulnerable; NT - almost threatened; LC - Safe or of little concern; DD - Insufficient data ; R - Rare;

Source: Klabin S. A., 2020.

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Fauna The fauna surveys done in Klabin’s areas in Santa Catarina began in 2003, with surveys on avifauna (birds) and mastofauna (large mammals). These and the other groups have been studied over the years. The table below shows the number of species identified by group.

Table 4 – Total of fauna species identified on Klabin’s farms in Santa Catarina Species Class / Group Identified Species with proven preservation status Amphibians 28 28 Birds 313 300 Mammals 44 42 Fish 18 12 Invertebrates 11 0 Reptiles 13 4 Total 427 386 Photo: Sumatra Inteligência Ambiental

Source: Klabin S. A., 2020

Some of these species have been granted proven preservation status at critical levels by official lists such as: the Red List of the International Union for the Conservation of Nature - IUCN 2019.2, the Red Book of Brazilian Fauna Threatened with Extinction, by ICMBio (2018), and the Official List of Endangered Fauna Species in the State of Santa Catarina (CONSEMA Resolution No. 002/2011).

Boana prasina (Perereca-de-inverno) RPPNE Serra da Farofa Complex - Nascentes Farm 37 Table 5 - Fauna with proven preservation status in the most critical categories identified on Klabin’s farms in Santa Catarina

*IUCN **ICMBio ***CONSEMA Scientific name Common name Group (2019.2) (2018) (2011) Alouatta guariba Bugio Mammals LC VU VU Chironectes minimus Cuíca-d’água Mammals LC DD VU Cuniculus paca Paca Mammals LC VU Puma yagouaroundi Gato-mourisco Mammals LC VU Leopardus gutulus Gato-do-mato-pequeno Mammals VU VU Leopardus pardalis Jaguatirica Mammals LC LC EN Leopardus wiedii Gato-maracajá Mammals NT VU Mazama americana Veado-mateiro Mammals DD EN Mazama nana Veado-da-mão-curta Mammals VU VU VU Ozotoceros bezoarticus Veado-campeiro Mammals NT VU Pecari tajacu Cateto Mammals LC VU Puma concolor Puma Mammals LC VU VU Sylvilagus brasiliensis Tapeti Mammals EN Vitreorana urYearscopa Perereca-de-vidro Amphibians LC LC VU Amazona pretrei Papagaio-charão Birds VU VU EN Amazona vinacea Papagaio-de-peito-roxo Birds EN VU EN Cinclodes pabsti Pedreiro Birds NT VU Cissopis leverianus Tiétinga Birds LC EN Grallaria varia Tovacuçu Birds LC VU Hemitriccus diops Olho-falso Birds LC EN Limnoctites rectirostris Arredio-do-gravatá Birds NT VU CR 38 2020 PUBLIC SUMMARY

*IUCN **ICMBio ***CONSEMA Scientific name Common name Group (2019.2) (2018) (2011) Phacellodomus striaticollis Tio-tio Birds LC VU Phylloscartes difficilis Estalinho Birds NT EN Platyrinchus mystaceus Patinho Birds LC VU Procnias nudicollis Araponga Birds VU Sclerurus scansor Vira-folhas Birds LC VU Spizaetus ornatus Gavião-de-penacho Birds NT CR Sporophila hypoxantha Caboclinho-de-barriga-vermelha Birds LC VU Sporophila plumbea Patativa-verdadeira Birds LC CR Tachyphonus cristatus Tiê-preto Birds LC EN Tangara peruviana Saíra-de-costas-pretas Birds VU EN Xolmis dominicanus Noivinha-de-rabo-preto Birds VU VU EN

* Official 2019 IUCN (International Union for Conservation of Nature) list version 2, ** Red Book of Brazilian Fauna Threatened with Extinction by the ICMBio (2018); *** Official List of Endangered Species of Fauna in the State of Santa Catarina (CONSEMA Resolution No. 002/2011). Where: CR - Critically endangered; EN - In danger; VU - Vulnerable; NT – nearly threatened; LC - Safe or of little concern; DD – Insufficient Data.

Source: Klabin S. A., 2020

Leopardus guttulus (Gato-do-mato-pequeno) RPPNE Serra da Farofa Complex Photo: Sumatra Inteligência 39 Ambiental 40 Forest Mosaic Photo: Zig Koch 2020 PUBLIC SUMMARY

Forestry Stewardship

41 Pine and Eucalyptus Planting PROMAB collects information from several companies, with experimental micro basins located in areas of reforestation, native The company is renowned for its sustainable stewardship, forest and pasture in different edaphoclimatic conditions in the intended to make multi-use of timber forests with pine and country. This allows for the continuous collection of information eucalyptus plantations interspersed with native forests in a on the hydrological functioning of these areas, as well as the forest mosaic system. The use of environmentally friendly identification of hydrological indicators for the sustainable practices by the company in its forestry stewardship, as well management of forest plantations. as the appropriate management of the landscape, provide an excellent leverage of the forests’ yield potential and the The hydrological monitoring at Klabin in Santa Catarina is being protection of natural resources carried out in two micro basins, one spillway located in a contribution area within native forest, and Yearther in Research a contribution area with planted Pinus taeda. Both watersheds are Through studies, the company guarantees the maintenance located on the Cavaletti farm, in the municipality of Ponte Alta. and improvement of forestry yield, considering the quality of plantations and fibers for use in pulp production through the development and adaptation of new technologies and sustainable forestry stewardship. It operates in the following specialties: Forestry Improvement, Cloning and Biotechnology, Nutrition and Silviculture, Forest Plant Health and Wood Quality.

Watershed In order to monitor the hydrographic basins, Klabin has joined the experimental network for environmental monitoring (ReMAM) through the Environmental Monitoring Program (PROMAB) and the Forest Research and Studies Institute (IPEF). Klabin watershed (PROMAB) in planted pine forest and native forest. RPPN Lages Photo: Zig Koch

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Forestry Planning and Stewardship The planning area studies the different components of forestry stewardship in order to guarantee forest sustainability in an orderly manner, ensuring the industrial supply and the sale of wood to sawmills.

It has short (annual) and long-term (30 years) plans. Harvest rates and forest intervention strategies are established based on inventory data, surveys and simulations. Information on the forest resource base to monitor growth and forest dynamics is also evaluated. Forest records, geoprocessing,inventory and microplanning areas also provide support. Pine seedling nursery (bare-rooted) in Otacílio Costa Pine seedling nursery (bare-rooted) Forestry Operations Klabin is self-sufficient in seed production, relying on seed orchards for seedlings and clonal seed orchards. The surplus of pine Silviculture and eucalyptus seeds yield has been sold Key silviculture activities are carried out by our own since 1969. teams and include the preparation of the land, to guarantee the conservation of the soil and water resources; the planting of seedlings; the control of leaf-cutting ants; control of weeds and fertilization according to technical recommendations.

43 Harvest The mechanized and integrated forest harvesting system guarantees wood chopping in places that are difficult to access due to the soil (mud, slopes, etc.) and also reduces the loss of raw material in the process. In addition, forest mechanization provides better working conditions and safety for employees. This activity is carried out under strict control to protect the surrounding native forest. Biomass Plant material consisting of tips, branches, leaves and logs with a diameter and length not usable by the harvesting activity is called biomass.

It comes from the forest harvest and is processed through a chipping operation with our own equipment and team. After chopping, the material is sent to the factory to produce steam energy generated by a boiler. The objective of burning biomass in the paper and pulp production process is to generate steam as a source of clean, renewable energy, producing jobs. Biomass chopper

44 2020 PUBLIC SUMMARY

Logistics The logistics area includes building and maintaining roads, loading and transporting wood. Loading and transportation are carried out by our own and outsourced teams. The timber is transported to the yards at the plants, intermediate warehouse, sold directly at the farm or delivered to the customer. In road work, the company has outsourced and internal teams. In addition to the construction and maintenance of the company’s own roads at the farms, it keeps public roads in good condition in the communities where it operates and wets the roads that have heavy traffic to keep dust down. In addition, it has partnered with Klabin wets community roads city halls to maintain these roads with donations of gravel, timber for bridges, pipes, labor and machinery. Forest Protection Pest Monitoring and Control The company has a program in place to monitor and control pests and diseases, to identify species that may be a potential risk to forests.

Forest Asset Security The company has an outsourced structure to manage the security of forest assets. The surveillance team structure includes vehicles and motorcycles, radio communicators, GPSs and digital cameras.

It tackles fires and protects fauna and flora, curbing hunting and predatory fishing with preventive and / or corrective measures by mobile patrols and constant surveillance of Klabin’s areas.

45 46 31st Caiubi Program in SC (2019) 2020 PUBLIC SUMMARY

Social and Environmental Responsibility 47 Socio-environmental responsibility is a premise at Klabin that fosters and supports social, cultural and environmental projects in the communities it operates in.

Klabin and its employees Strength Klabin has been operating in the Brazilian market for over People are of the heart of Klabin’s operations, which is why one hundred years. It is a leader in the sector, certified and we select and insist on retaining the best professionals who recognized by the market. Even people who have not heard of are aligned with our values and committed to the daily Klabin have certainly come into contact with its products, used development of a better company. in the packaging of major brands in the country.

Better for everyone: customers, suppliers, employees, people Careers in the community, friends, family, neighbors, or any of the Klabin’s market is growing. This means that people working in millions of people who use the company’s products on a daily this area will have opportunities ahead of them. basis. For Klabin, people are more than resources within a company. This is why it has replaced the term Human Resource Courses and training with People & Management. More up-to-date and accurate, The company offers courses for different functions and career this name highlights the respect and significance that the stages. Its people are empowered to improve. This makes a big company has for human capital, a key driver of its business. difference. The company contributes to the development of the employees and the employees participate in the development We believe that each person offers skill and potential that of the company. Klabin Business School is one of the examples contributes to the construction of a culture of engagement, of this practice and supports professional development and development and results among all employees. leadership training in the company.

Klabin provides a number of benefits, Management of the internal environment which are introduced at the time Just as Klabin takes care of forests, it also cares for the workplace. The company is committed to the safety of its of the interview. processes and the management of the internal mood so that staff feels safe and motivated in their daily work.

48 2020 PUBLIC SUMMARY

High performance The leadership is interested in people’s performance, maintaining a close relationship with each person. Klabin carries out employee performance evaluations and encourages indicators and goals to make up variable remuneration in eligible positions.

49 Photo: Anna Carolina Negri 50 2020 PUBLIC SUMMARY

Quality of life Employee well-being is key for Klabin’s productivity and the company’s Quality of Life Program (PKQV) is coordinated by health and 1 True Commitment: human resources professionals who are part from all levels of leadership of the Preventive Medicine and Quality of Life through their attitudes. Committee. Based on five pillars, preventive medicine, nutritional guidance, physical activity / integration, alternative therapies and educational actions, the program puts actions aimed at the balance between professional and personal life into practice. 2 Line Accountability: Occupational Health and Safety (OHS) all levels of leadership are Klabin has since 2005 run Excellence in Safety accountable for managing and Occupational Health, their area. a corporate program to implement and share occupational health and safety management techniques and tools, using a system that enables tracking risks and treatments for effective monitoring to assure people’s health and physical safety. 3 Operational discipline: behavior and attitudes by The basics of the OHS Program are: people at all levels and areas of expertise.

51 Klabin and the Community Environmental education The Caiubi Program raises awareness of ecological concepts among teachers and students at schools in the region. There were two editions of the program in Santa Catarina in 2019 at the Caiubi Environmental Education Center, in Correia Pinto. In 2020, other editions of the program will be held in the municipalities the company operates in. The program started in 2007 and has reached 572 schools, 1,453 teachers and 187,938 students in the 32 stages held in the with information on the environment, the state of Santa Catarina. company and its social and environmental efforts. Pine (Araucaria) Trail Klabin’s Pine (Araucária) Trail is located in Correia Pinto, close to the company. It is Growing Up Reading 1,260m long and takes in native forest. It is Program used by teachers and students who join the The Growing Up Reading Project is an Pine (Araucaria) Trail Caiubi Program, as well as others. People initiative by Klabin, United Way Brasil and who have the opportunity to visit the place, Brazil’s development bank, BNDES, with coming from different locations, are provided a technical partner, the Avisa Lá Institute (Fundação Catarinense de Educadores). The project provides books for kids aged up to six, helps to put in practice the National Pact for Literacy at the Right Age, encourages creativity and imagination, offers an opportunity to exchange experiences, develops a taste for reading and also expands children’s vocabulary.

52 2020 PUBLIC SUMMARY

SUMMARY OF MUNICIPALITIES WHICH HAVE JOINED THE CAIUBI PROGRAM:

Year Edition Municipality

2007 1st Edition Bocaina do Sul 2007 2nd Edition Correia Pinto 2007 3rd Edition Otacílio Costa 2007 4th Edition Lages 2008 5th Edition Rio Rufino 2008 6th Edition Lages 2008 7th Edition Palmeira 2008 8th Edition Bom Retiro 2009 9th Edition 2009 10th Edition Ponte Alta 2010 11th Edition 27 Municipality s do Alto Vale do Itajaí 2010 12t Edition e Otacílio Costa 2010 13th Edition Correia Pinto 2010 14th Edition Rio Rufino, Urupema e Otacílio Costa 2011 15th Edition Petrolândia e Atalanta 2011 16th Edition Palmeira 2011 17th Edition Bocaina do Sul Environmental Protectors 2011 18th Edition Lages (Etapa Municipal) 2012 19th Edition Lages (Etapa Estadual) The Environmental Protectors program 2012 20th Edition Correia Pinto is a program by the Military Police of 2013 21st Edition Otacílio Costa e Palmeira Santa Catarina to empower 2013 22nd Edition Bocaina do Sul pre-adolescents to act as multipliers 2014 23rd Edition Correia Pinto e Ponte Alta 2014 24th Edition Ponte Alta do Norte in environmental education. Klabin 2015 25th Edition Lages has supported the program with the 2016 26th Edition Lages Environmental Police since 2005. 2016 27th Edition Lages e São Cristóvão do Sul A total of 402 11 to 14-year-olds 2017 28th Edition Santa Cecília, Bocaina do Sul e Otacílio Costa 2018 29th Edition Lages e Correia Pinto have completed the Environmental Protectors Program, sponsored by Protectors Environmental 2018 30th Edition Lages, Bom Retiro, Bocaina do Sul, São José do Cerrito, Urubici, Palmeira, Painel, Correia Pinto Klabin, in several municipalities in the 2019 Bocaina do Sul, Lages, Monte Carlo, Otacílio Costa, 31st Edition Painel, Rio Rufino e Urupema region the company operates in. Correia Pinto, Lages, Monte Carlo, Otacílio Costa, In 2020, two other groups will 2019 32nd Edition Urupema, Rio Rufino, Palmeira complete the program in Lages.

53 The program provides personal Forest Fostering Program and professional development, The Forest Fostering Program plays maintaining a direct communication a relevant social role, guaranteeing an Growth channel and fostering the alternative source of income for small improvement of employees’ and third farmers and making better use of areas parties’ quality of life (in forestry and not fit for agriculture. Program industrial segments). Twice-monthly meetings are held with each work team, in the field or training rooms.

54 Growth Program in Santa Catarina RESUMO PÚBLICO 2020

Forest Certification Program for Wood Suppliers Klabin’s Partner Forest Certification program is an initiative that has supported the region in the production of sustainable forests for many years.

Suppliers that agree to receive support for forest certification in their areas go through a thorough one-year’s process of document and field preparation, to have an external audit by a certifying body. The 12-month’s preparation process is paid by Klabin.

This process enables small suppliers to add value to the product with the FSC certification, help them do business and improve the competitiveness of the value chain as a whole. 1st FSC group certification for wood suppliers in Santa Catarina.

Legal Forest Program Lectures and Community Relations This program has since 2008 managed a partnership between the Association Throughout the year, groups of students and for the Preservation of the Environment and Life (Apremavi) and Klabin. It is teachers ask for lectures at seminars, academic for farmers who have joined Klabin’s Forest Fostering program, a sustainable weeks, celebratory days (Environment economic activity that generates extra income for farmers and their families. Day, Water Day, Tree Day) or visits to the Both programs combine income generation and diversification of productive company to learn about Klabin’s efforts on activities with the recovery of Permanent Preservation Areas (APPs), linked the environmental area and visits to the Pine to springs, streams and rivers. The program also develops conservation and (Araucária) Trail. environmental education efforts.

55 Community Mapping Klabin practices a good neighbor policy in the region it operates in.

Owners bordering the operating farms are visited by the heads of the company and are informed about ongoing activities and receive guidance on appropriate safety practices. Periodically, rural unions are also contacted, among other actions, so maintaining continuous dialogue with society.

Community dialogue To complement and comply with the forest stewardship guideline on the social scope, the company maintains an open channel with the external community on the website:

klabin.com.br or by phone 0800 721 0228.

Klabin has a number of communication channels with stakeholders. They are:

• Site / Intranet • Caiubi Program / Pine (Araucária) Trail / • 0800 721 0228 Crescer Program • Lectures / Visits to the company • Legal Woods and Forest Fostering Program • Press / Ads / Campaigns • Environmental Protectors Program • Visit to Unions / Mood Survey • Wood Supplier Certification Program • Participation in forums • Research projects and sectoral committees • Meetings with communities • E-mail / Telephone / Suggestion Box • Communications to neighbors

56 2020 PUBLICSUMMARY 57

Community Mapping 58

HCVAS - Ponte Alta do Norte 2020 PUBLIC SUMMARY

Klabin and the environment In the 39 municipalities where Klabin has forest areas, there are more than 5,000 Concern for the environment has guided kilometers of rivers and more than 9,000 the company’s actions since its foundation. springs protected by the company, which contribute to the region’s water supply. Protected Areas In Santa Catarina, 50.43% of the RPPNE – Serra da Farofa Complex company’s total areas are targeted to nature The Private Reserve of the State Natural preservation. Forests plantations totaling Heritage - RPPNE Serra da Farofa Complex 44.45% have made important contributions has 4,987.16 hectares of areas targeted to the preservation of the environment, exclusively to the conservation of natural biodiversity protection and maintenance of resources in the region where Klabin water sources. The forest stewardship follows operates in SC. These areas are home to the mosaic concept, with plantations of pine important springs such as those that make and eucalyptus interspersed with areas of up the Canoas e Caveiras rivers, springs native forests, protecting the biodiversity. that supply Otacílio Costa, Correia Pinto and Lages.

One important area acquired was Farm das Nascentes, popularly known as Farm da Farofa, named after a local mountain with the same name. Located in the municipality of Painel, bordering Urupema (SC), it has an area of 1,518.57 hectares of highly preserved natural vegetation. The other areas are located in the municipalities of Rio Rufino, Urubici and Bocaina do Sul.

59 The Nature Interpretation Center (CINAT) is a sustainable CINAT – project opened at the RPPNE Complex Serra da Farofa in 2019. Environmental research has been carried out since 2008 at the Conservation Unit, publishing theses, dissertations and articles. Nature With the new structure, researchers will have access to rooms for up to 40 researchers and students, a cafeteria, bathrooms Interpretation and an auditorium. Center

60 2020 PUBLIC SUMMARY

High Conservation Value Areas (HCVAS) HCVA3 - Ecosystems The conservation features established for HCVAs in Klabin’s Areas located within, or which include, rare, threatened areas are being reviewed, according to Principles 9 of the FSC® or endangered ecosystems. Criteria and the ProForest Guide for High Conservation Value Areas, being: HCVA4 - Environmental Services Areas that provide basic environmental services in critical situations HCV 1 - Species (water supply, erosion control and fire barriers). Areas that have significant concentrations of biodiversity values at the global, regional or national level. HCVA 5 - Basic needs of local people Áreas essenciais para suprir necessidades básicas de comunidades HCV2 - Landscape locais (subsistência saúde). Extensive areas, both in their landscape and global, regional or national relevance, where viable populations of most or all HCVA 6 - Cultural Relevance natural species occur in natural patterns of distribution Critical areas for the traditional cultural identity of local communities and abundance. (cultural, economic, traditional and / or religious relevance identified with and by the community).

The areas that comprise he Serra da Farofa Complex are validated through public consultations with representatives of considered HCVAs, as they are preserving features springs and the scientific community and with the population in neighboring water sources and endangered animal species. Within them, it is areas and internal technical evaluation. The areas established as possible to find major vegetation formations, such as araucaria HCVAs have different forest stewardship activities to maintain (pine) forests, altitude fields and mist forest. The rich local fauna and maximize the features. also hosts species included in official listings as endangered. The result of the evaluation in the table below is a compilation of different reviews made by skilled experts, and the HCVAs were

61 Table 6 - High Conservation Value Areas and Associated Features Farm Phytophysiognomy HCVA Class Features

HYDROGRAPHIC REGION 4 - Plateau of Lages

Presence of several endemic, threatened or endangered species of fauna and flora. 1

2 Farrapos: proximity to the São Joaquim National Park. Serra da Farofa Complex (Fazenda das Nascentes, Boa Areas representing FOM in medium or advanced stage of succession, altitude fields Vista, Cedro I e II, Farrapos, FOM 3 and cloud forests; Santo Antônio: tree fern wetlands. Morro Agudo and Santo Antônio) 4 Springs: home to 4 of the 5 springs of the Caveiras River, the main river that supplies the municipality of Lages; Santo Antônio: watersheds of the Canoas river.

5 Families collect pine nuts for consumption and sale.

6 Springs: taipas within property limits. 1 Specimens of fauna and flora threatened or in danger of extinction.

Paredão I FOM 2 Fazenda owns a vast conservation area, representing the regional landscape.

3 Remaining of FOM in high conservation stage.

1 Examples of fauna and flora (Araucaria). Ponte Alta do Norte FOM 3 Remaining of FOM in good conservation condition. 4 Marombas River. 1 Presence of very well-preserved fragments.

3 Remaining in good conservation condition. Santa Rita – I CAM 4 Protects springs and rivers.

6 Landscape features: waterfalls in canyons and rock walls with conserved vegetation.

62 2020 PUBLIC SUMMARY

Farm Phytophysiognomy HCVA Class Features

HYDROGRAPHIC REGION 4 - Plateau of Lages

1 Presence of endemic species from field and wetland areas.

Relevant in the landscape to protect field areas, so commonly anthropized in Santa 2 Catarina’s plateau. Capão da Lagoa CAM 3 Predominance of fields, with preserved araucaria isolated clumps and wetland areas.

6 Taipas within property boundaries.

HYDROGRAPHIC REGION 5 - Plateau

1 Presence of endemic species from field and wetland areas.

Palmital do Areão FOM 2 Relevant in the landscape to protect FOM areas.

3 Remaining FOM in good conservation condition.

HYDROGRAPHIC REGION 7 - Vale do Itajaí

1 Presence of endemic species.

Corote FOD 2 Relevant in the landscape to protect FOD areas.

4 Protects springs and rivers that are key to the region.

Key: FOM: Mix Ombrofila Forest.; CAM: Fields; FOD: Dense Ombrofila Forest.

Source: Klabin S. A., 2020

63 Photo: Sumatra Inteligência Ambiental (Perereca-de-vidro) – Farm Farrapos em Urubici (Perereca-de-vidro) uranoscopa Vitreorana

The monitoring that contributes to the maintenance and The fauna monitoring activities registered, at Fazenda Farrapos improvement of the High Conservation Value Features in the (HCVA ), in Urubici, within Block IV of the Private Reserve of the HCVA areas in Santa Catarina is performed from time to time State Natural Heritage (RPPNE) SERRA DA FAROFA COMPLEX, a through research projects that are carried out in partnership with rare and endangered species of amphibian: perereca-de-vidro, researchers and research institutions. To reduce threats, HCVAs common name of the Vitreorana uranoscopa. have several protection measures. 64 2020 PUBLIC SUMMARY Table 7 - HCVA Protection and Monitoring Measures MONITORING

HCVA Property Property surveillance Fencing Flora survey Mammal survey Bird survey Herpetofauna survey PPAs recovery PPAs monitoring of invasive Control alien species Control of fires Educational campaigns

Serra da Farofa Complex

Paredão I

Ponte Alta do Norte

Santa Rita I

Capão da Lagoa

Palmital do Areão

Corote

Source: Klabin S.A., 2020.

65 RPPNE Serra da Farofa Complex - Caveiras River 66 Puma concolor (Leão-baio) RPPNE Serra da Farofa Complex Photo: Sumatra Inteligência Ambiental 2020 PUBLIC SUMMARY

Limiting factors and potential

I. Cultural Practices III. Weather Factors and Technological Development Forest yield depends on the cultural practices Due to favorable weather conditions and advanced technological adopted, such as: soil preparation, spacing and development, the wood produced in Brazil in planted forests has relatively weed control. short cycles and high yield, which allow the country to play an active role II. Abiotic and biotic factors in the international forestry products market. Forest plantations can suffer from environmental IV. Technological Development and Commercial Growth elements such as: fires, frosts, winds, hail, water Combined with advanced technological development, the wood grown deficit or even the impact of pests and diseases, in Brazil in planted forests has favorable weather and edaphic conditions, among others. relatively short cycles and high yield, which allow the country to play an active role in the international forestry products market.

In general, based on the regional scenario, it can be said that the reason to select species and the economic feasibility of the stewardship are due to the following factors: favorable weather and edaphic conditions and market perspective for commercial planted forests.

67 RPPNE Serra da Farofa Complex 68 Photo: Rafael Menegucci 2020 PUBLIC SUMMARY

Environmental Safeguards

Klabin has some environmental safeguards to minimize the negative impacts of its forestry operations. Among them are:

• Property security; • Pine control in Permanent Preservation Areas;

• Monitoring of fauna and flora in the company’s areas; • Social and environmental actions in the regions where there are forestry operations; • Pest and disease monitoring and control; • Development of environmental research in • Monitoring to minimize environmental impacts partnership with universities. on operations;

69 RPPNE Serra da Farofa Complex 70 Photo: Zig Koch 2020 PUBLIC SUMMARY

Forestry Stewardship Indicators 71 TECHNICAL AND ECONOMIC DATA

TECHNICAL AND ECONOMIC MONITORING

Monitoring Indicator 2017 2018 2019 2019 target Compliance 2020 target

Pine wood for pulp 1,632,963 1,565,716 1,692,667 1,581,269 1,582,851

Pine wood for sale 331,954 447,555 387,890 415,258 393,274 Harvested products (in tons) Eucalyptus wood for pulp 253,792 263,702 248,450 253,474 273,875

Biomass for energy - - 93,475 150,000 182,500

Forest Growth Rates Eucalyptus (7 year cutting age) - FGR - Average As a result of the Forestry Stewardship and the Genetic Improvement Program carried out, the FGR of forests Annual Increase has been growing on average 1.5% per year for pine and eucalyptus Pine (16 year cutting age) (m3 / ha / year)

Pine wood delivery to the plant 1,607,222 1,626,068 1,612,554 1,572,270 1,581,414

Eucalyptus wood delivery to 274,401 245,856 253,801 259,404 252,813 Forestry Stewardship the plant efficiency (in tons) Sale of pine logs to thir parties 379,966 447,555 387,890 415,258 393,274

Biomass delivery to the plant - - 93,475 150,000 182,500

Key: Target achieved | Target not achieved

72 2020 PUBLIC SUMMARY ENVIRONMENTAL DATA

ENVIRONMENTAL MONITORING

Indicator 2017 2018 2019 2019 target Compliance 2020 target

Total of fauna species 390 392 427 = or > = or >

Total of flora species 914 927 959 = or > 1,500

Total of teacher engaged 1,242 1,348 1,453 1,400 1,550

Total of students engaged 159,120* 178,514* 187,938* 180,000 190,000

Number of Caiubi Programs 1 2 2 1 1

Environmental Protector Groups per Year 1 1 1 1 1

Total of threatened species with proven 470** 487** 532** - - - preservation status Increase of total of species identified in the fauna 8*** 5*** 17*** 2 2 Monitorin the HCVAs

* 2005-2019 year-on-year data of the Caiubi Program (number of students engaged) Key: ** The total considers the species of fauna and flora included in the IBAMA (2003 and 2008), ICMBio (2018), IUCN Target achieved | Target not achieved (2019.2) CONSEMA (2014) and SC (2011) lists with some threat category identified in the Monitoring Program of Biodiversity since 2003. *** Year-on-year data of all fauna monitoring in HCVAs areas with annual inclusion of species seen for the first time in the areas.

73 SOCIAL DATA

SOCIAL MONITORING

Monitoring Indicator 2017 2018 2019 2019 target Compliance 2020 target

Headcount (Own) 555 498 488 - - - Jobs created Headcount (Third parties) 462 499 467 - - -

Employee Health Number of work accidents 10 6 13 0 0 and Safety (Third Party + Own)

Hours of Training (Own) 12,552 19,251 15,188 17,000 15,500 Employee training % engagement on the Growth 84% 73% 68% 80% 75% Program Total of visitor in the Pine 228 320 296 280 200 (Araucária) Trail Total of atendees at lectures 557 443 796 430 300 Community |about Klabin engagement Total of wood suppliers’ 3,790,26 12,994,5*** 21,243,06*** 20,000 23,500 hectares certified Total of post-graduate projects 14** 22** 26** 1 reaserch/year 1 reaserch/year at Klabin

** year-on-year date from 2014 to date. Key: *** year-on-year data since the start of the program in 2017. Target achieved | Target not achieved

74 2020 PUBLICSUMMARY

75 RPPNE Serra da Farofa Complex Photo: Zig Koch