Masisa case study Cost savings and reduced environmental impact through lower energy and water consumption Masisa case study

Masisa is majority owned by GrupoNueva, a privately owned holding company, its corporate headquarters are in , , and it is a market leader in the production and marketing of wood boards for the furniture and interior design market in Latin America. The company operates from 11 production sites located in Chile, , , and ; all of which have been awarded ISO certifications 9.001 and 14.001 along with OHSAS 18.001 The forestry unit comprises 238 thousand hectares of pine tree and eucalyptus plantations spread all over Chile, Argentina, Brazil and Venezuela. Much like the rest of the forestry industry, they face some specific environmental challenges, not least of which the depletion of stock, however, associated with its primary locations, it also faces significant social problems and sustainable development issues. Masisa, GrupoNueva, case study Sustainability scorecard driving competitive advantage

One of the ways Masisa has improved its environmental, social, and forest protection standards is by measuring the effectiveness of its programmes using a sustainability scorecard. This management tool integrates the financial, social and environmental areas of the business in one dashboard, and fosters the engagement of their staff through the widespread and clear monitoring that it provides. Masisa’s success has been widely recognised, and ratified by the winning of a number of high profile awards, including WWF’s ‘Leaders for a Living Planet’ and the ‘Corporate Responsibility Standard setter award, presented by the Rainforest Alliance.

In 2008 the company reduced its water consumption by 10%, energy consumption by 9%, it had a waste increase

of 0.6% and CO2 emissions dropped by 10%. The framework that it implemented to embed sustainability in the organisation is shown below, along with an extract from their sustainability scorecard which is a key element of the third step in this framework. Sustainability framework

Create competitive advantages

Build Culture • Differentiated brand Orderly and systematic • Innovative via new customers (IB)** • Climate change opportunities management of • Integrate to strategy and • Cost efficiency and reduction of risks & impacts management via SSC* Identify social and the environmental footprint LEADERSHIP • Internal Education environmental • Attract and retain talent • ISO standards (key competencies) impacts & risks • OHSAS 18.001 • Live the corporate principles • FSC (Forest Stewardship • Environmental footprint Council) • Dialogue • Risk management system • Replies • Social licence BUILDING CREDIBILITY/REPUTATION

* SSC, sustainability scorecard, adaptation of the balanced scorecard, applied to the triple bottom line approach ** IB, inclusive business

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Sustainability scorecard: 2008 environmental result and 2009 targets

2008 2008 2009 Indicator Description Unit targets compliance targets Waste for final Waste for final disposal kg/m3 Kg/m3 18.72 94% 24.28 disposal production Energy Total energy consumption in MWh/m3 0.97 92% 1.07 consumption MWh/m3 production Water Total water consumption in m3/ m3/m3 1.18 113% 1.07 consumption m3 production

Reduction of CO2 Direct CO2 emissions of fossil Tons of CO2 eq. 4.5% 112% 5% emissions fuels Fibre of known Percentage of fibre of known Percentage 80% 90% 85% origin origin

Read CIMA’s latest report Accounting for Climate Change at www.cimaglobal.com/sustainability.

The report includes case studies from other organisations and looks at how management accountants, their skills and their tools can provide business intelligence to support strategy and influence decision making, driving their organisations to mitigate and adapt to climate change.

If you are interested in sharing your own insights and experiences in this area, we would be delighted to hear from you. Please email us at [email protected]

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December 2009

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