Technical Board Public Summary of the Environment and Quality Department Forest Stewardship Plan Environmental Coordination 1 SUMMARY

GENERAL INFORMATION ...... 4 INTRODUCTION ...... 5 The Company ...... 5 Mission ...... 5 Vision ...... 5 Principles ...... 5 Land occupation and location ...... 6 Purpose of Forest Stewardship ...... 10 FORESTRY MANAGEMENT ...... 10 1) WOOD PRODUCTION PROCESS ...... 10 1.1) Strategic Plan ...... 11 1.1.1) Long-term Planning (21 years) ...... 12 1.1.2) Tactical Planning – Medium Term ...... 12 1.1.3) Operational Planning – Short Term (18 months) ...... 13 1.2) Technical, Economic, Environmental, and Social Planning - TEESP ...... 13 1.3) Seedling Production ...... 14 1.4) Forestry Activities ...... 15 1.5) Inventory ...... 15 1.6) Harvest / Transportation ...... 15 2) FORESTRY RESEARCH ...... 16 2.1) Selective Breeding ...... 16 2.2) Forest Pest Control and Management ...... 16 2.3) Soil, Plant nutrition, and Forest Stewardship...... 17 3) FOREST PROTECTION ...... 19 3.1) Forest Fire Prevention and Control ...... 19 3.2) Property Protection and Community Access to the Company’s Land ...... 20

Technical Board Public Summary of the Environment and Quality Department Forest Stewardship Plan Environmental Coordination 2 ENVIRONMENTAL MANAGEMENT ...... 21 4) ENVIRONMENT ...... 21 4.1) Environmental Monitoring ...... 21 4.1.1) Vegetation ...... 22 4.1.2) Wildlife ...... 26 4.1.3) Water Resources ...... 31 4.2) High Conservation Value Area – HCVA ...... 33 4.3) Environmental Education and Communication ...... 39 SOCIAL AND LABOR MANAGEMENT ...... 40 5) HUMAN RESOURCES POLICY ...... 40 5.1) Recruitment, Selection, and Compensation ...... 40 5.2) Personnel ...... 41 5.3) Occupational Health and Safety ...... 42 5.4) Benefits ...... 50 5.5) Training, Development, and Quality of Life ...... 51 5.6) Socioeconomic profile of CENIBRA’s area of influence ...... 51 6) CENIBRA INSTITUTE ...... 52 6.1) CENIBRA INSTITUTE’s Mission ...... 52 6.2) CENIBRA INSTITUTE’s Principles ...... 53 6.3) Strategy ...... 53 6.4) Areas of Interest ...... 53 7) CONTACT INFORMATION ...... 58

Technical Board Public Summary of the Environment and Quality Department Forest Stewardship Plan Environmental Coordination 3 GENERAL INFORMATION

Name: Celulose Nipo-Brasileira S.A. - CENIBRA

BR 381, km 172 – - Address: CEP: 35196-000

(31) 3829-5010 Phone/Fax: (31) 3829-5260

E-mail: [email protected]

Internet: www.cenibra.com.br

State Registration 063.141486.0136 Number:

Taxpayer’s Number: 42.278.796/0001-99

Júlio César Tôrres Ribeiro Legal Representative: Industrial and Technical Director

Version 17th of 2021, corresponding to the Version of this document: 17th year after the first certification in 2005.

Revision of this Next review to be started in May 2022. document:

Technical Board Public Summary of the Environment and Quality Department Forest Stewardship Plan Environmental Coordination 4 INTRODUCTION

The Company

CENIBRA is one of the world’s largest bleached short-fiber eucalyptus pulp manufacturers. Located in Belo Oriente, Minas Gerais, 236 km away from the state capital , its production is shipped mainly to foreign markets, particularly Japan, the United States, Europe, Latin America, and Asia. CENIBRA employs the ISO 9001 and ISO 14.001 management systems to provide its customers in the pulp & paper industry with raw material from sustainable forests from the economic, social, and environmental standpoints, while providing safe, healthy working conditions. In 2005, the Company was certified by the Forest Stewardship Council® (FSC®) and ’s Forest Certification Program (CERFLOR), two distinct certification entities with their own principles and criteria, which represent further assurance that CENIBRA pulp is produced from sustainable forests with social and environmental responsibility. CENIBRA manages an overall area of 253,644 hectares of land in 54 municipalities. Around 98% of this area is covered by the Certification Scope, i.e., 248,162 hectares of owned and leased lands, broken down as follows: 129,054 hectares of eucalyptus plantations, 103,300 hectares of native vegetation and 15,808 hectares, are allocated to infrastructure and other uses. Regardless of certification, CENIBRA’S responsible forest stewardship practices follow the same pattern in all the company’s properties.

Mission

“Generate and distribute wealth in a sustainable manner by processing planted trees”

Vision

“Be an everlasting company admired by everyone”

Principles

Ethics: be respectful and truthful in all relationships; Commitment to results: value employees’ engagement, innovation and personal skills; Excellence: strive for quality, reliability, and competitiveness; Sustainability: ensure competitiveness while meeting society’s needs and preserving the environment; Entrepreneurship: act today while aiming at the future.

Technical Board Public Summary of the Environment and Quality Department Forest Stewardship Plan Environmental Coordination 5 Land occupation and location

CENIBRA’s forest lands are located in the mid-eastern portion of the state of Minas Gerais, mostly in the Doce River drainage basin and its Piracicaba River, Santo Antônio River, Suaçuí Grande River, River, and Piranga River sub-basins, as shown in Figure 1. Figure 1: Location of CENIBRA land in the Doce River basin

Land Splitting in the Doce River Drainage Basin

Legenda CENIBRA Industrial Plant Municipalities Cenibra’s Properties Hidrography Doce River Basin Perimeter DO1, Piranga River DO2, Piracicaba River DO3, Santo Antonio River DO4, Suaçuí Grande River DO5, Caratinga River DO6, Manhuçú River

Technical Board Public Summary of the Environment and Quality Department Forest Stewardship Plan Environmental Coordination 6 Cenibra operates in 54 municipalities in the state of Minas Gerais. Table 1: Operation of Cenibra in the municipalities

Area (ha) Occupation (%) Municipality Municipality Total Effective Total Effective Açucena 81.159,00 6.477,53 3.082,89 7,98% 3,80% Alvinópolis 59.979,00 4.182,29 1.855,23 6,97% 3,09% Antônio Dias 78.707,00 16.662,32 8.754,09 21,17% 11,12% Barão de Cocais 34.056,00 3.662,42 1.968,22 10,75% 5,78% 10.852,00 1.132,08 411,17 10,43% 3,79% Belo Oriente 33.531,00 15.963,67 9.263,59 47,61% 27,63% 19.516,00 721,88 433,67 3,70% 2,22% 59.312,00 7.170,37 4.496,81 12,09% 7,58% Braúnas 37.623,00 1.673,28 724,11 4,45% 1,92% 16.162,00 3.171,74 1.462,47 19,62% 9,05% Caeté 54.224,00 1.112,53 650,86 2,05% 1,20% Cantagalo 14.188,00 232,46 184,03 1,64% 1,30% Caratinga 125.869,00 13.282,46 6.357,68 10,55% 5,05% 23.821,00 5.536,35 3.121,68 23,24% 13,10% Coluna 34.828,00 995,64 508,95 2,86% 1,46% 57.666,00 6.863,43 3.852,45 11,90% 6,68% 22.208,00 5.972,52 2.674,93 26,89% 12,04% Córrego Novo 20.645,00 4.173,00 2.616,38 20,21% 12,67% Divinolândia de Minas 13.200,00 1.777,21 941,15 13,46% 7,13% Dores de Guanhães 38.173,00 689,85 373,86 1,81% 0,98% 109.424,00 11.227,52 5.212,83 10,26% 4,76% Gonzaga 20.896,00 1.435,85 738,48 6,87% 3,53% Governador Valadares 234.890,00 164,37 79,87 0,07% 0,03% Guanhães 107.682,00 11.272,06 5.275,50 10,47% 4,90% 34.275,00 1.471,36 781,84 4,29% 2,28% 11.377,00 5.533,40 2.505,87 48,64% 22,03% 16.609,00 2.055,88 786,75 12,38% 4,74% 125.449,00 5.926,37 2.541,32 4,72% 2,03% Joanésia 23.269,00 524,48 276,11 2,25% 1,19%

Technical Board Public Summary of the Environment and Quality Department Forest Stewardship Plan Environmental Coordination 7 Area (ha) Occupation (%) Municipality Municipality Total Effective Total Effective Mariana 119.386,00 3.201,91 1.158,34 2,68% 0,97% Marliéria 54.368,00 774,18 362,92 1,42% 0,67% Materlândia 28.092,00 858,52 206,26 3,06% 0,73% Mesquita 27.499,00 1.218,45 584,54 4,43% 2,13% 12.644,00 3.044,23 1.870,41 24,08% 14,79% 36.001,00 7.993,15 3.694,74 22,20% 10,26% Paulistas 22.097,00 2.225,97 1.158,52 10,07% 5,24% Peçanha 99.605,00 14.700,72 8.958,29 14,76% 8,99% 22.766,00 6.937,69 3.581,68 30,47% 15,73% Pingo-d’Água 6.685,00 1.816,88 1.062,84 27,18% 15,90% 37.317,00 595,75 286,90 1,60% 0,77% 98.620,00 2.992,82 610,57 3,03% 0,62% Sabinópolis 91.949,00 15.165,50 7.987,67 16,49% 8,69% Santa Bárbara 68.471,00 9.445,12 5.608,80 13,79% 8,19% 59.981,00 5.727,02 2.589,17 9,55% 4,32% Santana do Paraíso 27.527,00 10.627,66 6.079,31 38,61% 22,08% Santo Antônio do Itambé 30.497,00 2.716,85 629,37 8,91% 2,06% São Domingos do Prata 74.637,00 3.682,92 2.014,63 4,93% 2,70% São Gonçalo do Rio Abaixo 36.475,00 7.894,27 3.952,00 21,64% 10,83% São João Evangelista 47.829,00 4.524,15 2.790,87 9,46% 5,84% Sardoá 14.179,00 1.277,86 697,22 9,01% 4,92% Sem Peixe 17.621,00 167,81 86,04 0,95% 0,49% 38.220,00 203,56 69,87 0,53% 0,18% Virginópolis 44.002,00 4.424,12 2.773,58 10,05% 6,30% Virgolândia 28.197,00 362,59 144,39 1,29% 0,51% Total 2.664.255,00 253.644,02 130.891,72

CENIBRA manages a total area of 253,644 hectares. Of this total, 248,162 hectares are within the Scope of Certification, of which 98% of certified land for forest stewardship. CENIBRA’S responsible forest stewardship practices follow the same pattern in all the company’s properties.

Technical Board Public Summary of the Environment and Quality Department Forest Stewardship Plan Environmental Coordination 8 Most of the properties were acquired from reforestation companies and were already used for planting eucalyptus. The company believes in the biological sustainability of eucalyptus ecosystems, evidence of which is the large proportion of land allocated to Legal Reserve and Permanent Preservation among the plantation areas, as can be seen in the Figure below. Figure 2: Percentages of land use in the areas Cenibra

Use of Soil

Eucalyptus plantation

Native forests (Legal Reserve and Permanent Preservation areas

Others (roads, firebreaks, constructions, and others.)

CENIBRA’s core business is not to purchase land for speculation. When pulp production increases, with the consequent rise in wood requirement, new land is acquired or leased for eucalyptus planting and the Forestation Incentive Program is further expanded.

Technical Board Public Summary of the Environment and Quality Department Forest Stewardship Plan Environmental Coordination 9 The acquisition of new land also implies choosing names for these new projects. For this purpose, the company has established criteria to preserve the socio-cultural and geo-referential identity of neighboring communities of the acquired land, as well as mitigate the social impact of eucalyptus plantations in terms of landscape change and monoculture. According to established criteria, the traditional name of the property should preferably be maintained. If two or more properties are merged together, the name of the property better known by the community should be kept. In cases not covered in the previous items, an internal team should evaluate the most appropriate designation, aimed at preserving of local socio-cultural and geo-referential identity.

Purpose of the Forest Management

The Forest Stewardship Plan drawn upby Celulose Nipo-Brasileira S.A. - CENIBRA S.A. is a tool whose purpose is to demonstrate and provide stakeholders with evidence of the aspects taken into consideration to ensure forestry production sustainability and short-, medium, and long-term planning interrelations, in addition to continuously supplying wood to the industrial plant. It clearly sets forth the objectives, responsibilities, available resources, and strategies for the adoption of sustainable stewardship practices. Its scope is based on the responsible use of natural resources and economic and social sustainability aspects of any forestation project. Moreover, Cenibra’s forest stewardship also: • Protects and preserves the local vegetation and wildlife; • Generates direct and indirect jobs in the region; • Develops local businesses and service providers in the municipalities in which the company operates; • Promotes relationship with the communities and stakeholders. An update of this version was provided in 2021. The database used as a reference for this publication is from 2020.

FOREST MANAGEMENT

1) WOOD PRODUCTION PROCESS

In 2020, the wood supply to the industrial plant was split as follows: 81.23% from the Company’s own land and 18.77% purchased from farmers in the marketplace. Table 01 below shows the harvest and forestry production rates in Cenibra’s own areas.

Table 01: Forestry and harvesting figures related to Cenibra’s own land

Volumes m³ Harvested wood volume (cc) 4.425.871 Remaining volume ¹ 21.388.206

Technical Board Public Summary of the Environment and Quality Department Forest Stewardship Plan Environmental Coordination 10 Areas ha % Overall area actually planted² 122.143 100% Harvested area 16.678 14% Planted area 14.669 12% Total seedlings produced³ 16.254,799

SOURCE: Base Year 2020. REMARK: (cc) – bark included 1 - Volume projected for 7 years; forest from 0 to 2 years of age excluded 2 - It disregards the areas available for planting and areas on hold. 3 - Seedlings produced by the Company’s Seedling Nursery in 2020.

The difference between harvested and planted areas during the year results mainly from the time gap between harvesting and the beginning of planting, and the significantly large size of new forested areas. Table 02 shows wood output figures concerning the plantations under the forestation incentive program for farmers in 2020.

Table 02: Output under the forestation incentive program

AREAS OUTPUT UNDER THE FORESTATION INCENTIVE PROGRAM ha % Harvested area ¹ 2.874,50 12,6% Area of growing forests 20.019,84 87,4% Total area 22.894,34 100% Volumes Harvested volume ¹ 862.127 m³ SOURCE: Base Year 2020. REMARK: 1 – Delivered up to December 31st, 2020

1.1) Strategic Plan

Strategic Planning is a process that sets objectives for the selection of projects and/or action programs and their implementation, taking into account the company’s internal and external factors and their expected development. The strategic plan’s objective consists in enhancing the favorable conditions and minimizing the unfavorable ones. For that purpose, basic corporate guidelines are defined with a view to ensure sustainability and market competitiveness.

Technical Board Public Summary of the Environment and Quality Department Forest Stewardship Plan Environmental Coordination 11 1.1.1) Long-term Planning (21 years)

Taking the Strategic Planning for pulp production as a basis, CENIBRA establishes the respective long-term premises (21-year timeframe), such as wood production, percentage of own wood supply, percentage of third parties wood supply (forestation incentive program and purchase in the marketplace), definition of minimum standing wood inventory, and land acquisition, demobilization, and replacement. The Wood Supply Plan stipulates the forest product flow and age, including the corresponding revenues and costs for a given planning timeframe. A number of factors must be taken into account when preparing this plan, such as: current and future wood demand, current land and forest status, topographic characterization of the population, productivity levels, technological gains, related costs and revenues, and stewardship alternatives.

Planning Timeframe • Timeframe is a variable of fundamental importance in planning, particularly when one takes into account the forest regulation aspects, as it deals with the conversion of an actual age class into a regulated structure. • The long-term planning period adopted by CENIBRA is 21 years. The company uses the planning tool Remsoft (RSPS), a decision-making support (DMS) system that makes use of a linear scheduling model to optimize the activity sequence in the forestry process.

Planning Restrictions • Establishment of yearly quotas – ensures regular production flow by region in every harvesting period by setting up admissible variation levels. • Wood demand level – ensures compliance with the minimum demand. • Regulated structure requirement – the most common option to obtain a regulated forest at the end of the planning horizon consists of including restrictions that impose a suitable distribution by age class. • Desirable final inventory level – imposition of a minimum inventory level at the end of the planning horizon.

1.1.2) Tactical Planning – Medium Term

The tactical planning objective consists of defining the forest projects that will be harvested within the next seven years in line with the pulp plant’s consumption needs, taking into consideration restraints related to infrastructure, harvesting, and wood transportation in the different seasons (dry or rainy season). The personnel assignment sequences are also taken into account to make it easier to retain personnel at the workplace and avoid long commute times or temporary employee transfer. To that effect, information generated by the Long-term Planning is used to select among the seven-year-old projects that were optimized through the RSPS system. The tool used in this case is the MTPS – Medium-Term Planning System.

Technical Board Public Summary of the Environment and Quality Department Forest Stewardship Plan Environmental Coordination 12 1.1.3) Operational Planning - Short Term (18 months)

The operational planning objective consists of selecting the projects to be included in the physical budget for harvesting, transportation, and forestry activities, following a cutting sequence that contemplates strategic projects for the rainy months (November through March) and, at the same time, meets the possible additional consumption demand by the plant over the period, and regulates the stock of wood ready for transportation (fields and yards). This planning is prepared by the Forest Control and Planning Department in cooperation with the Harvesting, Logistics, and Forestry Departments. In case of social or environmental impacts, or if there are unforeseen legal constraints (for instance, delays in licensing processes), the sequence of forestation projects to be harvested is changed so as to minimize such impacts. Feedback into tactical planning is generated by these changes. The selected projects must be among those included in the Medium-Term Tactical Planning. The tools used in this planning process are the STPS (Short-Term Planning Simulator), AHP (Annual Harvesting Planning), and ASP (Annual Forestry Planning).

1.2) Technical. Economical, Environmental and Social Planning - TEESP

The TEESP is worked out in a multidisciplinary approach by the operational Infrastructure, Harvesting, Logistics, and Forestry areas, as well as by the following support areas: Planning, Environment, Social, and Work Safety. The core goal is to diagnose and propose preventive, corrective, mitigation, and improvement actions during the forest stewardship planning and implementation stages. The use of this tool ensures that the quality and economic principles and the respect for the environment and neighboring communities are taken into consideration when planning the forest implementation, reformation, and harvesting activities. TEESP can happen in the following ways:

1. Preliminary TEESP: This planning aims at supporting the land purchase/lease process, and focuses on the percentages of land use and mechanization, productivity of the forest plantations (if any), and environmental liabilities.

2. TEESP for Forest Implementation/Harvesting: This planning step defines the roads and other infrastructure, determines the need for environmental licensing, identifies the social, safety, and environmental impacts and aspects, and recommends preventive, corrective, mitigation, and improvement actions to be taken during the infrastructure implementation, harvesting, transportation, and forestry activities in the forest regeneration or reformation stages.

After the corresponding scheduling and upon making the necessary maps available, a field inspection is conducted by a team made up of supervisors, an environmental analyst, an institutional relations analyst, and safety technicians. Relevant aspects with regard to road location, path rectification, load flows, interferences in the communities, and activity risks and hazards are discussed and plotted on maps. In addition, restrictions are defined in line with the company’s Forest Stewardship premises, as follows:

• Technical restrictions: rock outcrops, access constraints, road network planning, restrictive slopes, and others.;

Technical Board Public Summary of the Environment and Quality Department Forest Stewardship Plan Environmental Coordination 13 • Legal and environmental restrictions: Need for environmental licenses and permits, environmental aspects in connection with Legal Reserve and Permanent Preservation areas, areas susceptible to erosion, sites of historic, ecological, cultural, religious, or archeological interest, and others.;

• Social restrictions: Proximity to populated areas, dust generation, visual impact, risk of accidents involving road users, water easement, and others.;

• Occupational health and safety restrictions: Existence of microrelief features, steep slopes, old forest tracts, existence of beehives, and others.

The entire work is then analyzed and validated by the staff in charge of operational, social, occupational health and safety, and environment areas. Changes indicated in the TEESP are incorporated into the forestry and harvesting micro-planning and entered into the forest recording system. The TEESP records and monitors changes that have taken place in forest stewardship along the forest cycles. The use of the TEESP results in a number of social and environmental gains for CENIBRA, such as lower road density, with the consequent reduction in earthmoving, less erosion, and reduced soil entrainment into water bodies. Moreover, because the social aspect is properly included in the TEESP, the Company improves its relations with the neighboring communities by taking into account the impacts of the forestry operations on them. The outcomes of such a holistic view of the forest projects are optimized land use and an increase in the company’s production areas. On top of it all, the TEESP is deemed a continuous improvement tool for enhanced land use and planning in the company’s properties.

1.3) Clones Production

CENIBRA invested in a new Clones Nursery to centralize all seedling production activities in one single facility and ensure the supply of seedlings for the company’s future renewable eucalyptus forests. This is one of the world’s most modern nurseries in terms of eucalyptus seedling production by means of cloning techniques. With a yearly production capacity of 25 million seedlings and located just two kilometers from the Company’s Industrial Plant, this complex puts together the most innovative and sophisticated technological resources and features a complete infrastructure aimed at controlling production factors such as temperature, humidity, light, nutrients, and water. In addition to these essential factors from the production standpoint, the Company’s human capital and environment have also been taken into consideration in the project, with improved fertilizer and water use, including water treatment and reuse. Moreover, the Nursery was ergonomically designed to require the least amount of effort from the workers. Using its own genetic material, originated from the Company’s Genetic Improvement and Clone Development Program, seedlings are produced in small tubes filled with vermiculite, carbonized rice bran, and coconut fiber as a substratum. The seedlings are handled and prepared for planting in accordance with applicable internal procedures. In 2020, an overall of 16,254,799 seedlings were produced, out of which 12,559,013 were planted in CENIBRA’s own lands and 1,618,848 were provided to farmers under the Forestation Incentive Program.

Technical Board Public Summary of the Environment and Quality Department Forest Stewardship Plan Environmental Coordination 14 1.4) Forestry Activities

Prior to starting the forestry activities in each forest plantation project, a multidisciplinary team prepares the Technical, Economic, Environmental, Social, and Occupational Health and Safety Planning (TEESP). During the forestry micro-planning stage, the legal reserve and permanent preservation areas are delimited and any restrictions that could interfere with proper stewardship (Implementation, Reformation or Regeneration) of a given tract of land are defined. Such restrictions may be of a technical, operational, or environmental nature. Moreover, the areas to be mechanized are defined and suitable genetic materials are recommended in a joint work with the forestry development and research sector, taking into particular consideration the suitability of a given clone to the specific environmental conditions and the planting of different clones in continuous areas. The forestry activity sequence and intensity depend on a number of factors, such as soil type, productivity and genetic material of the previous cycle, slope, and edaphic-climatic conditions. To ensure compliance with technical recommendations during the performance of such activities, field teams apply the corresponding internal procedure and employees in charge of each operation manage the process by recording every control for subsequent decision-making, if necessary.

1.5) Inventory

Efficient use, conservation, and stewardship of forest resources require knowledge of both quantitative and qualitative forest characteristics and permanent monitoring of forest productivity (m³/ ha/year). Such knowledge is made possible by means of forest inventories, which are based on data collected from a population (samples) to generate overall population estimates.

1.6) Harvest / Transport

The entire eucalyptus wood supply is based on the shallow cutting system with an average 7-year rotation and the subsequent reformation or regeneration for one more rotation. Mechanized harvesting techniques have been adopted in 91% of the company land. Harvesters and forwarders are used in “standard harvest” areas, with slopes up to 28º. In the case of areas whose slope ranges from 28º to 36º, harvesters and forwarders are fitted with a winch system. The remaining eucalyptus trees harvested through semi-mechanized harvesting methods answer for less than 9% of the overall wood harvested by Cenibra and they come almost entirely from areas where the wind has broken the trees or areas with a steep microrelief. To be able to operate in such areas, CENIBRA employs a dedicated team that uses chain saws for the harvesting operations and TMO winch tractors or forwarders for the transshipping operations The wood harvested from own land is transshipped and hauled to the industrial plant in Belo Oriente by means of road trains. In the specific case of the Nova Era Regional Unit, transportation takes place by road and rail, i.e., the wood is shipped by truck from the field up to the railway station and thereafter by train up to the production plant. For the purposes of chain of custody certification, the origin and traceability of the harvested wood is supported by the corresponding Wood Transportation Bill (WTB) at any point from the cutting stage up to wood delivery at the Plant.

Technical Board Public Summary of the Environment and Quality Department Forest Stewardship Plan Environmental Coordination 15 2) FORESTRY RESEARCH

In addition to its own team made up of specialists from several fields of forestry science, CENIBRA’s forestry research activities strongly rely on partnerships with universities and other research institutions, coordinated by experts and counting on support by well-equipped laboratories to meet analysis requirements. The most relevant aspects of the main Forestry Research areas are described in the subsequent topics:

2.1) Selective Breeding

The basis of this important forest engineering area of CENIBRA’s research department is primarily genetics. It is, indeed, an area of knowledge that demands integration among and the application of different fields of Forestry Engineering, such as botany, taxonomy, genetics, cytology, phytopathology, entomology, molecular biology, physiology, and statistics. If the target is to select and recommend for commercial plantation trees that provide the highest cellulose contents and allow easy cellulose extraction by the industry, knowledge and experience in the field of wood technology are mandatory for conducting selective breeding programs. This area answers for the definition of the genetic material that delivers the highest yield, with significant influence on forest productivity, wood harvesting and transportation processes, and cellulose extraction at the industrial plant.

2.2) ) Forest Pest Control and Management

Insects are invertebrates with greater turnover of species, and therefore have a higher rate of diversification and dispersion worldwide. Many of them feed on plants, and for that reason eucalyptus, like any other plant, is vulnerable to attack from insects, which, depending on their population level, can lead to a scenario of pest outbreaks. In eucalyptus plantation, pests can happen at any stage of the crop, from seedling development in the nursery to adulthood, and even after harvest in the new rotation. Monocultures are more prone to attacks than insect pests. Thus, the presence of areas of native vegetation interspersed with eucalyptus stands increases plant species diversity and contributes to natural pest suppression, which is the reason why environmental heterogeneity is regarded as an important ecological principle for forest pest management. Therefore, an evidence of the important role that diversity plays in the stability of the agro- ecosystem is the lack of extensive insect outbreaks in tropical forests, as it can be seen in CENIBRA’s areas. At CENIBRA, for each hectare planted for commercial purposes, 0.81 hectares are allocated for preservation (permanent preservation areas and legal reserve), while the Brazilian average is 0.7 hectare (IBÁ, 2020). Plantation areas interspersed with areas of native vegetation have great diversity and abundance of natural enemies such as predators and parasitoids. Parasitoids are insects whose larvae develop by feeding on or in the body of other insects, eventually resulting in the death of the host. They are regarded as important biological control and regulatory agents of herbivorous insects in forest ecosystems due to their diversity and the high parasitism rate, and the areas of native forest contribute to the maintenance of their populations in reforestation. Many groups of parasitoids are the most studied control of forest pests, and can parasitize eggs, larvae, pupae and adults mainly of Coleoptera (beetles), Lepidoptera (caterpillars and moths), Hymenoptera (wasps) and Hemiptera (psyllids and aphids). Predators are natural enemies that feed on other insects, killing them by piercing and sucking the fluids of their bodies. Most predators are insects whose feeding habits is irrespective of the availability in the environment, i.e., they do not have preferences taking advantage of an infinity of different

Technical Board Public Summary of the Environment and Quality Department Forest Stewardship Plan Environmental Coordination 16 groups of prey such as ladybugs, bedbugs, beetles, chryspopids and ants. Several studies have already been carried out regarding the presence of parasitoids in the Company’s properties, and a study is in progress on the role of predatory insects in the control of a significant exotic pest, the Shell Psyllid. Integrated Pest Management actions are based on detection, monitoring and control of pest population. The detection is carried through surveys of the areas, which makes possible to identify the presence of pest insects and their natural enemies. After pest identification is performed, monitoring is primordial, which is when the pest incidence (insect population) and the severity of attack (damage to the plant) is quantified. For this, different strategies are adopted according to the distinguishing characteristics of each insect (stage of the life cycle, place of attack and form of dispersion). Pest management decision-making takes place after monitoring information is analyzed, and prior knowledge is acquired of the potential damage it can cause. Based on the pest incidence and the severity of its attack, a measure or set of measures is adopted, such as mechanical, cultural, biological or pesticide management methods, which are the most applied to eucalyptus plantations. CENIBRA conducts continuous pest detection surveys, and monitors caterpillars, leaf-cutting ants and exotic pests, which will be detailed thereafter. Pest and weed control in forest management activities not only alters plant diversity, but it also contributes to changes in the environment that may lead to a reduction in biodiversity. This modification can also lead to the exclusion of keystone species from ecosystems, affecting wildlife and plants and their ecological relationships. To assess the impact of these changes, several insects have been used as bioindicators of ecosystem changes in the environment. Ants are excellent biological indicators of environmental condition, as they have broad geographical distribution, have high local abundance and high species richness, are responsive to changing environmental conditions, are relatively easy to sample and identify when compared to other organisms. Ants act in ecosystems as predators, herbivores, saprophages, pollinators, seed dispersers, thus directly affecting the structure and composition of vegetation. Another tool is the Environmental and Social Risk Analysis (ESRA) implemented in 2021, which describes special procedures for different forms of pesticide application performed by the Company, with specific control and communication measures for each party involved in the process, from workers to neighboring communities to the company’s forestry projects.

2.3) Soil, Plant Nutrition and Forest Stewardship

At CENIBRA, the edaphic production factor represents a distinctive feature that can either improve the company’s competitive edge as a result of the eucalyptus’ remarkable potential of response to fertilizers, in association with the physical characteristics of these soils, which are highly favorable to forest cultivation, or lead to loss of competitive potential due to the high susceptibility to both chemical and physical degradation. Therefore, suitable soil handling is of fundamental importance for proper eucalyptus plantation productivity. In its endeavor to find ways to preserve this resource (with satisfactory quality), CENIBRA has developed a number of works in the soil and forest stewardship fields. The activity areas and the corresponding objectives are described below: • Soil Survey and Classification: To know the soil characteristics of interest to eucalyptus cultivation with an aim to define management units. One management unit is made up by grouping homogenous areas in terms of climate, soil, and relief;

Technical Board Public Summary of the Environment and Quality Department Forest Stewardship Plan Environmental Coordination 17 • Fertility and Nutrition: To correct and maintain soil fertility while minimizing nutritional shortcomings that could harm eucalyptus growth;

• Water and Soil Conservation: To define measures aimed at preserving the soil and increasing the amount of water available in the soil and produced in eucalyptus plantation;

• Use of Process-based Models for Forest Productivity Estimate: To understand and model all processes involved in the forestry activity, and simulate effects of climatic and edaphic variations on the eucalyptus growth rate;

• Climatology: To monitor and make available climatic information relative to the company’s areas;

• Regeneration management: To develop management techniques that enable the reestablishment of the forest by regeneration;

• Harvest residues management: To seek a balance between economic return and production sustainability while leaving sufficient residues in the field to maintain and increase the organic matter content in the soil and reduce the export of nutrients during harvesting;

Therefore, the works developed in the above areas aim at enhancing the site production capacity while retaining its quality, thus providing CENIBRA with a sustainable wood production process.

CENIBRA’s soil and water conservation guidelines

One of Cenibra’s priorities is to optimize the use of natural resources. Founded on its Mission of adding value to renewable forests in harmony with the environment and its Principles and Values of preserving the environment as a basis for development, the company recognizes that the maintenance and improvement of soil quality in its properties (forestation projects) are essential prerequisites for sustainable production of eucalyptus wood to manufacture pulp. The company stipulated land use guidelines with an aim to maintain and improve soil quality, as follows: 1 – The soil must be used in such a way so as to sustain the biological productivity of planted eucalyptus forests with minimum impact on its functions related to the maintenance of its ecosystem’s environmental quality; 2 - Activities in connection with the Forestry Process (infrastructure, forestry, harvest, and transportation) must be carried out with the least possible impact on the environmental and productive functions of soil; 3 – The company must work out a continuous monitoring system and define indicators to be used in the diagnosis of soil quality (as far as the soil’s environmental and productive functions are concerned) and water quality and quantity in the drainage basins within the company’s land.

Technical Board Public Summary of the Environment and Quality Department Forest Stewardship Plan Environmental Coordination 18 3) FOREST PROTECTION

Cenibra currently has a Remote Surveillance system. It consists of video cameras installed in fire surveillance towers and remotely operated from a round-the-clock central control room at the industrial plant in Belo Oriente. The introduction of this monitoring system resulted in greater efficiency in detecting fire outbreaks, on top of significantly improving the safety and health conditions of the system operators.

3.1) Forest Fire Prevention and Control

CENIBRA has a Forest Fire Prevention and Control system involving the use of techniques and resources to maximize efficiency. It constantly incorporates new techniques with a view to reduce the occurrence of forest fires that could damage the Company’s ecological heritage and forest assets. This system gives priority to preventive actions, and the entire work is carried out by integrating the efforts of the Company’s technical, operational, and administrative sectors. The lines of action are as follows:

Educational Campaigns and Activities

During events like Agriculture and Cattle Fairs, Forest Week, Environment Week, and the like, CENIBRA promotes educational campaigns focused on Forest Fire Prevention in the towns located within the Company’s area of influence, including advertisements, speeches, videos, and distribution of educational material among participants. The educational material distribution is intensified during drier periods (June through October), when the risk of fire is higher. Moreover, meetings are held and personal contacts are made with as many neighbors as possible during the year. On such occasions, general aspects of fire use and control are discussed, and educational material with prevention messages is distributed. In certain cases, when neighbors need to use fire as an agriculture practice, CENIBRA assigns expert teams to the area with an aim to help and train farmers and avoid incidents that could affect both commercial plantations and native vegetation areas. Furthermore, annual educational campaigns are promoted in the region’s rural schools, including distribution of leaflets on this matter.

Training and Qualification

Practical and theoretical training on forest fire prevention and control is given on a regular basis with an aim to qualify the company’s technical and operational personnel. The main objective is to prevent fires and improve the personnel mobilization speed in case of fire.

Risk Identification

On a permanent basis, the occurrences and general aspects of the Company’s areas are cataloged, in order to determine places subject to the greatest risk of forest fires.

Technical Board Public Summary of the Environment and Quality Department Forest Stewardship Plan Environmental Coordination 19 Maintenance of firebreaks

Special attention is given to the guidance that involves the construction and maintenance of fire breaks for the prevention of forest fires.

Fire Detection

CENIBRA relies on observation and watch towers located in strategic points and fitted with radio- communication for fire detection. They cover in excess of 90% of the company’s overall land area. Smaller blocks not covered by watch towers are monitored through land surveillance by means of vehicles equipped with portable radio communication.

Forest Fire Brigades

The Company has several specially-trained forest fire brigades. When activated in case of fire, they can arrive at the fire focus within the shortest possible time.

Exclusive Fire Control Equipment

In strategic and predetermined locations, known to employees, tool boxes and equipment for the exclusive use of forest fire control are maintained. This material is made up of coastal pumps, hoes, shovels, sickles, dampers, lanterns and others, to equip the brigades and employees. In larger cases, water trucks, agricultural tractors, chainsaws and other auxiliary equipment are used.

Climatologic Stations

Currently, CENIBRA operates nine climatologic stations with the main purpose of assessing the fire risk and keep the different company sectors informed accordingly. Such information is extremely important for fire prevention, since it enables the Company to plan actions and mobilization levels at different times of the year.

Radio Communication

The radio communication system is the main forest fire prevention tool for team mobilization and orientation during firefighting. Three repeaters allow VHF communication between sources up to 50 km away from each other. Fixed stations are strategically distributed so as to enable land patrols to reach them easily to report any unusual circumstances.

3.2) Property Protection and Community Access to the Company’s Land

CENIBRA monitors its assets and lands through a round-the-clock electronic monitoring system. This system is equipped with several long-range video cameras installed in external and internal areas. This is a high-tech resource for real-time monitoring of large land extents in a safe, reliable way. All images and controls are recorded and filed. Technical Board Public Summary of the Environment and Quality Department Forest Stewardship Plan Environmental Coordination 20 The use of high-resolution cameras improves security, particularly in terms of controlling invasion and wood theft, fire outbreak monitoring, and other possible troubles in the Company’s properties. In case of a fire outbreak, cameras installed in watch towers allow quick identification of fire location and determination of its intensity and extension. This is essential information when allocating the required firefighting equipment and teams to ensure a safer, more efficient fire control. Another way to monitor Company assets is through forest observers. These are employees in charge of in- situ monitoring, covering all areas of the Company.

ENVIRONMENTAL MANAGEMENT

4) ENVIRONMENT

For acknowledging in its Integrated Management System Policy that sustainable development is one of the foundations of its wood and pulp production activities, CENIBRA develops a number of actions aimed at protecting the existing natural resources in its land, as well as enhancing environmental awareness among its employees and the communities. By adopting operating practices based on procedures derived from ISO 9001 and ISO 14001 and an extensive natural resource improvement and monitoring program, the Company prevents and mitigates environmental impacts arising out of its activities, in addition to protecting the natural heritage within its permanent preservation and reserve areas, which correspond to approximately 40% of the company’s overall land area. To prepare and implement specific projects for biodiversity characterization, natural resource stewardship, monitoring, institutional relations with communities, and environmental education, the Company has set up a specific department and personnel to deal with these matters. The subsequent paragraphs describe this department’s lines of action in connection with the forestry process and respective guidelines intended to ensure the company sustainability, while interacting with all external interfaces and economic segments, incorporating environmental variables into the entire production chain, ensuring harmonious coexistence between human and the environment.

4.1) Environmental Monitoring

CENIBRA monitors the impacts of its activities on the environment and neighboring communities. This is an important source of information for the adoption of impact prevention and mitigation actions, as well as operational and stewardship improvement measures. Good examples of such improvement measures are the enrichment of native reserves and environmental recovery of degraded areas. Monitoring guidelines: • Promote studies and investigations so as to identify impact trends on wildlife, vegetation, and water as a result of forestry activities and providing information and knowledge to support both preventive and mitigating measures; • Map and classify sites of relevant environmental, historical, archeological, and cultural interest located on the Company’s land. Promote environmental liability remediation; • Promote partnerships with research institutions, universities, and NGOs to add to the knowledge base concerning the ecosystems on the Company’s land. Technical Board Public Summary of the Environment and Quality Department Forest Stewardship Plan Environmental Coordination 21 These programs have as objectives to record and evaluate the results of any natural or induced changes and phenomena by monitoring the evolution of resources in CENIBRA’s Forest Stewardship Units and their areas of influence. For that purpose, indicators are identified and used as a means to detect changes in the environmental direction and provide input for preparing and continuously improving CENIBRA’s forest stewardship system. A summary of main monitoring results is presented in the following pages.

4.1.1) Vegetation

Keeping preserved areas in good conservation condition is of paramount importance for CENIBRA. The company has implemented a program of environmental monitoring of native vegetation areas, which, on top of producing a thorough environmental change diagnosis, is also intended to provide input for the improvement of planted forest stewardship techniques. The first forest inventories were carried out in 1997 to assess the fragmentation and conservation conditions of preserved areas. Since then, such studies have been conducted by the Forest Investigation Society, an entity linked to the Federal University of Viçosa’s Forest Investigation Society/ Forest Engineering Department (CENIBRA, 2018). Continuous environmental monitoring in four regions in which the Company operates (Cocais, Ipaba, and Guanhães) was implemented in 2002 to study their biodiversity. Permanent tracts of land were selected from these areas for study; surveys were conducted in 2002, 2007, 2012, and 2017 and the following data were gathered: biomass volume, species identification, diversity rates, and others. Results from 2005 were used to evaluate the dynamics of the surveyed woods, when it was found out that all conservation indicators were positive, showing that the areas were and are going through an evolution process toward increasing richness and biodiversity. Another consequence is climate improvement through CO2 capture from the atmosphere. After the second stage of a field survey in 2007, the collected data provided input to four master’s degree theses in the post graduate programs of the Viçosa Federal University. After the 2017 sampling campaign, vegetation studies were adapted to the updated official list of vegetal species identification. The density calculation method was also adjusted to consider the number of stems instead of the number of individuals.

Richness Forests at Ipaba (Forest 1 and Forest 2) and Cocais areas showed a reduction in the number of species between the initial (2002) and final (2017) monitoring periods. Such reduction was also seen in every project in the last monitoring period (2012 - 2017). Notwithstanding the decline in the number of species, the environmental preservation areas still feature high richness in terms of forest species. Chart 2: Species richness in four monitoring projects at environmental preservation areas

Surveyed area / Year 2002 2007 2012 2017 Guanhães 206 217 215 210 Ipaba - Forest 1 141 143 145 138 Ipaba - Forest 2 113 116 112 106 Cocais 223 236 237 222

Technical Board Public Summary of the Environment and Quality Department Forest Stewardship Plan Environmental Coordination 22 Rare and threatened species

Environmental protection areas are important refuges for rare and threatened species. Taking the Minas Gerais inventory classification (Oliveira Filho and Scolforo, 2008) as a basis, 6 species were identified as rare, 20 as very rare, and 12 as extremely rare. Figure 7: Rare species found in environmental preservation areas, according to the Minas Gerais inventory classification

Very Rare Rare Extremely Rare

Regarding threatened species, seven were rated as vulnerable and three in danger of extinction in the Red Book of Brazilian Flora (Martinelli and Moraes, 2013 list. Figure 8: Threatened species found in environmental preservation areas according to the Red Book of Brazilian Flora.

Vulnerable Endangered

Technical Board Public Summary of the Environment and Quality Department Forest Stewardship Plan Environmental Coordination 23 Table 2: Classification of threatened species found in four monitoring projects at environmental preservation areas Species Classification Apuleia leiocarpa VU Byrsonima alvimii VU Dalbergia nigra VU Euplassa incana VU Euterpe edulis VU Melanoxylon brauna VU Zeyheria tuberculosa VU Ocotea odorifera EN Trattinnickia ferruginea EN Virola bicuhyba EN

VU: Vulnerable EN: Endangered. Source: Martinelli and Moraes (2013).

Diversity

The analysis of diversity showed that environmental protection areas present great species richness associated with a uniform distribution of individuals among such species.

Density

Density (stems ha-1) decreased in Ipaba (Forest 1 and Forest 2) and increased in Guanhães and Cocais in the period from 2002 to 2017. It declined in all surveyed areas in the last monitoring period (2012 – 2017). Such density reduction is associated with high mortality and a small number of stems introduced in the forest ecosystem in the subject period. Chart 3: Density (stems ha-1) at four monitoring projects in environmental preservation areas

Surveyed area/Year 2002 2007 2012 2017 Guanhães 1942,00 2045,00 2069,00 1972,00 Ipaba - Forest 1 1720,00 1823,75 1870,00 1693,75 Ipaba - Forest 2 1803,33 1866,67 1870,00 1746,67 Cocais 1538,33 1625,00 1648,33 1630,00

Dominance

Dominance (m2 ha-1) increased in every surveyed area in the period from 2002 to 2017. Such increase is explained by tree diameter growth over the years. However, it declined in Guanhães and Ipaba (Forest 1 and Forest 2). Mortality of larger trees and low diameter growth rate of remaining trees are the main factors behind dominance reduction.

Technical Board Public Summary of the Environment and Quality Department Forest Stewardship Plan Environmental Coordination 24 Chart 4: Dominance (m2 ha-1) at four monitoring projects in environmental preservation areas

Surveyed area/Year 2002 2007 2012 2017 Guanhães 16,45 18,66 20,85 20,12 Ipaba - Forest1 14,98 16,50 16,83 16,79 Ipaba - Forest2 22,94 25,48 27,00 26,08 Cocais 20,24 22,63 24,11 24,92

Volume and Annual Increment

Wood volume (m3 ha-1) rose in all projects in the period from 2002 to 2017. However, it declined in Guanhães and Ipaba (Forest 2) in the last monitoring period (2002 – 2017). Similarly to what was seen in dominance, mortality of larger trees and low diameter and height growth rate of remaining trees are the main factors behind the reduction in wood volume in environmental protection areas.

Figure 9: Volume (m3 ha-1) at four monitoring projects in environmental preservation areas.

Guanhães Ipaba - Forest1 Ipaba - Forest2 Cocais

Monitoring Year

Such volume growth dynamics reflected in the annual increment. There was a positive increment in the first two monitoring period and a negative increment in the last period in Guanhães and Ipaba (Forest 2). Ipaba (Forest 1) and Cocais, in turn, showed a positive increment in all monitoring periods.

Chart 5: Annual increment in m3 ha-1 year-1, at four monitoring projects in environmental preservation areas

Surveyed area/Year 2002 - 2007 2007 - 2012 2012 - 2017 Guanhães 2,49 3,72 -1,99 Ipaba - Forest1 1,55 2,61 0,23 Ipaba - Forest2 3,72 4,71 -1,65 Cocais 3,15 1,78 1,04

Technical Board Public Summary of the Environment and Quality Department Forest Stewardship Plan Environmental Coordination 25 Stem mortality grew in every environmental protection area during the monitoring period. Such increased mortality may be explained by a decrease in the yearly average rainfall, which leads to tree death due to competition for water.

Future Research

Cenibra invests in research and development. The different areas of the company are important sources of knowledge and studies. Research projects will be developed in partnership with Brazilian educational institutions in the coming years. A few studies have already begun, such as: Project 1: Influence of environmental variables on the dynamics of forest fragments at CENIBRA; Project 2: Evaluation of functional diversity and carbon and biomass storage; Project 3: Stem biomass modeling using artificial intelligence techniques.

4.1.2) Wildlife

Preliminary studies to provide input for wildlife monitoring on CENIBRA land began in 2003 and went on until 2004. A reconnaissance campaign was carried out on CENIBRA properties over this period aiming at defining the monitoring points. Such initial studies were followed by systematic monitoring as of 2005 to identify and characterize the wildlife in the study areas. Originally, the target was to cover all regions in which the company operates. In view of the extensive lands, certain representative areas were selected in 2010 to be monitored on the basis of long-term indicators. Chart 6 shows the regions and wildlife monitoring projects underway. Those projects selected for long-term monitoring are shown in bold letters.

Chart 6: Regions covered by wildlife monitoring and the respective reforestation projects in which the sampling points were located. Projects selected for long-term monitoring are shown in bold letters.

REGION PROJECTS Marola, Garapa, Fábrica, Cajá, Marcocem, Ipabinha, , Trevo, Baixada Belo Oriente do Cajá, Córrego do Brejo, Água Suja, Tamanduá.

Córrego Novo, Lagoa Nova, Lagoa Perdida, Lagoa , Lagoa Silvana, Beira Ipaba Rio, Macedônia, Rio Branco, São Lourenço, Ribeirão do Boi, Cordeiros, Boachá.

Ipanema, São José, Córrego dos Machados, Córrego dos Vieira, Barbosão, Cocais Ribeirão Grande, Caladão, Achado, Cocais dos Arrudas, Cocais das Estrelas, Alto da Pedra, Taquaral, Jatobá, Baratinha.

Piracicaba Pedra Furada, Piçarrão, Turvo, Serra, Tijuco Preto.

Jararaca, Valéria, Paraíso, Catas Altas I, Catas Altas II, Catas Altas III, Gabiroba, Santa Bárbara , Serra do Pinho, Carlos Hosken, Irmãos Fonseca, Cascapau, Agregado, Curral de Pedra, Chapadão, Maravilha.

Technical Board Public Summary of the Environment and Quality Department Forest Stewardship Plan Environmental Coordination 26 REGION PROJECTS Virginópolis Godinho, Córrego das Almas, Aricanga.

Cachoeira das Pombas, Três Morros, Aricanga, Quartel, , Correntinho, Sabinópolis Primavera, Corrente Canoa I, Corrente Canoa II, Babilônia I, Babilônia II, Aeroporto I, Anta, Panorama, Tucano, Sabinópolis II, Amância.

The main objectives of wildlife monitoring are: • Monitor the population of non-flying terrestrial birds and mammals species on the properties of the Company; • Identify the occurrence of bird and large mammalian species that are endemic, rare, and/or in danger of extinction; • Investigate the occurrence of migratory or seasonal species in the region; • Identify the occurrence of forest-dependent species; • Collect data on the biology and ecological interaction of the monitored species; • Identify the environmental and dietary habits of the monitored species; • Perform similarity measure between the surveyed regions; • Generate useful information to be passed on to the communities in order to encourage wildlife and natural environment protection. The indicators monitored during the performance of the Wildlife Monitoring and Conservation Program in the Company area are listed below: • Total species richness • Number of rare species • Number of endemic species • Number of species in danger of extinction (MG, Brazil and IUCN) • Number of migratory species • Number of forest dependent species • Number of cinegetic species Considering the monitoring campaigns within all CENIBRA properties until 2020, 394 bird species and 69 non-flying terrestrial mammals species were recorded. Out of this total, 28 bird and 15 mammalian species are included on official lists of species in danger of extinction. The figure below shows the richness growth curve of bird species recorded within CENIBRA properties since the beginning of the wildlife monitoring program in 2003.

Technical Board Public Summary of the Environment and Quality Department Forest Stewardship Plan Environmental Coordination 27 Figure 9: Number (richness) of bird species recorded in CENIBRA’s land.

BIRDS – Total Number of Species Species richness

Period/year

The figure below shows the richness growth curve of non-flying terrestrial mammal species recorded in CENIBRA’s land since the beginning of the wildlife monitoring program in, in 2003. Figure 10: Number (Richness) of mammalian species recorded in CENIBRA’s land.

MAMMALS – Total Number of Species Species richness

Period/year

Tables 7 and 8 list the species of endangered birds and mammals currently recorded in CENIBRA’s land.

Technical Board Public Summary of the Environment and Quality Department Forest Stewardship Plan Environmental Coordination 28 Table 7: Species of endangered birds recorded in CENIBRA’s land. CONSERVATION CONDITION SPECIES MG Brazil COPAM MMA IUCN 2010 2014 2017 Tinamus solitarius Tinamou EN NT NT Crypturellus n. noctivagus Yellow-legged tinamou EN VU NT Aburria jacutinga Black-fronted piping guan CR EN EN Crax blumenbachii Red-billed curassow CR CR EN Odontophorus capueira Spot-winged wood-quail EN CR Pseudastur polionotus Mantled hawk CR NT NT Urubitinga coronata Crowned eagle EN EN EN Spizaetus ornatus Ornate Hawk-eagle EN NT Spizaetus melanoleucus Black-and-white Hawk-Eagle EN Spizaetus tyrannus Black hawk-eagle EN NT Amadonastur lacernulatus White-necked Hawk CR Jacamaralcyon tridactyla Three-toed Jacamar NT VU Malacoptila striata Crescent-chested puffbird NT Pteroglossus bailloni Saffron toucanet VU NT Primolius maracana Blue-winged macaw NT Aratinga auricapillus Golden-capped parakeet NT Amazona farinosa Mealy Amazon CR NT Amazona vinacea Vinaceous Amazon VU VU EN Formicarius colma Rufous-capped Antthrush VU Drymophila ochropyga Ochre-rumped antbird NT Eleoscytalopus indigoticus White-breasted tapaculo NT Phibalura flavirostris Swallow-tailed cotinga VU NT NT Lipaugus lanioides Cinnamon-vented piha NT NT NT Pyroderus scutatus Red-ruffed fruitcrow NT NT Sporophila frontalis Buffy-fronted seedeater EN VU VU Sporophila angolensis Chestnut-bellied seed-finch CR Amaurospiza moesta Blackish-blue seedeater VU Cyanoloxia brisonii Ultramarine Grosbeak NT

Technical Board Public Summary of the Environment and Quality Department Forest Stewardship Plan Environmental Coordination 29 Table 8: Species of endangered mammals recorded in CENIBRA’s land.

CONSERVATION CONDITION SPECIES MG Brazil IUCN COPAM MMA 2017 2010 2014 Callithrix flaviceps Buffy-headed marmoset EN EN EN Alouatta guariba clamitans Brown howling monkey VU VU Callicebus nigrifrons Black-fronted Titi Monkey NT Chrysocyon brachyurus Maned wolf VU VU NT Lontra longicaudis Otter VU Leopardus guttulus Southern tiger cat VU VU Leopardus pardalis Ocelot VU Leopardus tigrinus Tiger cat VU EN VU Leopardus wiedii Margay EN VU NT Panthera onca Jaguar CR VU NT Puma concolor Cougar VU VU Puma yagouaroundi Jaguarundi or eyra cat VU VU Tapirus terrestris South American tapir EN VU VU Pecari tajacu Collared peccary VU Hylaeamys laticeps Atlantic Forest Rice Rat VU

LEGEND: CONSERVATION CONDITION CR = critically endangered VU = vulnerable EN = endangered NT = threatened

The following conclusions can be drawn from the wildlife monitoring carried out to date: • To date, study findings stress the important role played by wildlife corridors between existing vegetation remnants in CENIBRA’s eucalyptus plantation areas and neighboring conservation areas in supporting local biodiversity. A study by Barlow et al. (2007) on a number of taxonomic groups indicated that 47% of the species found in primary forests were also found in eucalyptus plantations, 11% of which were found solely in eucalyptus areas, attesting to the importance of these planted forests to wildlife, provided local native forests are kept intact. • The 394 bird species and 69 non-flying terrestrial mammals recorded so far translate the great wildlife potential of surveyed regions, and the environmental quality found in the areas managed by CENIBRA. • The diversity of forest, campestral, and aquatic (lacustrine and swampy) biotopes within CENIBRA properties provide important food resources for wildlife in general. The existence of places for shelter, nesting, breeding, and watering contribute to the abundance of bird and mammal species as observed in this survey. Technical Board Public Summary of the Environment and Quality Department Forest Stewardship Plan Environmental Coordination 30 • Endemic, endangered, vulnerable, and migratory species continue to be observed and monitored in the surveyed regions.

4.1.3) Water Resources

Assessing and monitoring water quality is vital for the environmental, social, and economic sustainability of any forest-based company and the human populations that rely on such water resources. Loss of soil fertility is an increasingly concerning issue and is directly linked to the water issue. Soil use approaches that ensure freshwater ecosystem conservation play a major role in the improvement of the general water supply conditions. Bearing that in mind, UNILESTE/MG (University Center East Minas Gerais) and CENIBRA entered into a partnership agreement in June 2001 to determine the water quality and quantity in the middle reaches of Doce River, by comparing the ecological conditions of the water streams and lakes in pasture lands, eucalyptus plantations, and native woods. An innovative approach in terms of duration and number of environments studied in Brazil, this long-term survey aimed at quantitatively and qualitatively characterizing water bodies under the influence of different land uses and comparing them. After the first five years, more than 33,000 pieces of physical, chemical, biological, and ecological data had been collected by undergraduate students in Environmental and Sanitation Engineering and Biological Science under the guidance of the University’s professors. Moreover, this partnership provided support for the installation of an Environmental Research Laboratory at Unileste (MG) in Coronel Fabriciano. For checking purposes, ten creeks and five lakes were selected in the region. They drain the waters from: • Native wood areas: Vai-e-Vem Creek, Environmental Preservation Areas of Jaguaraçu, Cascatinha, Pedra Lake and Carioca Lake. • Areas with eucalyptus plantations: Macedinha Project, Rubro-negro Project, Córrego Grande Project, Batinga Project, Rio Branco Project, Cristal Lake Project and Hortência Lake Project. • Pasture areas: São Mateus Creek, P1 Creek and Redonda Lake. This study made very clear one of the most significant characteristics of eucalyptus plantation practiced by CENIBRA. It demonstrated that the quality and quantity of waters drained in eucalyptus planted areas are higher than those of waters drained in pasture areas and quite similar to those of waters drained in areas entirely covered with native vegetation. Once it was understood that this question had been satisfactorily addressed, CENIBRA adopted a new maangement approach as of 2010. Studies were started to provide input to improve forest stewardship. The newly started study cycle will compare drained waters under different stewardship conditions, such as the water streams’ slope, percentage of eucalyptus plantation in the studied basins, percentage of areas allocated to conservation, road density in the studied basins, classes of basin terrain slope, basin altitude, and impact of eucalyptus-related operations on water streams, along with other aspects. The qualitative and quantitative comparison of water drained under such different conditions will indicate which operations and stewardship intensities have the greatest impact on water resources, in addition to providing input for developing actions intended to mitigate or eliminate them. This monitoring is carried out on a monthly basis and includes two hydrographic basins where quantitative parameters are already monitored, such as: rainfall, water stream flow, and groundwater level, and others. Therefore, such quantitative data will be taken into account when reviewing the bio-monitoring information gathered by UNILESTE’s Environmental Engineering Department, which will provide better input and enable more complex analysis of monitoring results. The work involves monitoring of environmental variables of lotic

Technical Board Public Summary of the Environment and Quality Department Forest Stewardship Plan Environmental Coordination 31 aquatic ecosystems at CENIBRA’s eucalyptus plantations in the Doce River basin. Chart 9 below shows the chemical variables taken into consideration and respective reference methods:

Chart 9: Physical and chemical variables analyzed in water samples. Analyzed Variable Method Reference Total alkalinity (mg.L-1) Standard Methods WEF, AWWA, APHA, 21st ed., 2005, 2320 B

Electric conductivity (μs.cm -1) YSI Professional Plus multiparameter meter

Spectrophotometer MERCK Apparent color (mg Pt.L-1) Spectroquant® system 032

Standard Methods WEF, AWWA, APHA, 21st ed., 2005, 4500- N-ammoniac (mg.L-1) NH3 F

Standard Methods WEF, AWWA, APHA, 21st ed., 2005, 4500- NO - (mg.L-1) 2 NO2 B

Standard Methods WEF, AWWA, APHA, 21st ed., 2005, 4500- NO - (mg.L-1) 3 NO3 E

Dissolved oxygen (mg.L-1 e %) YSI Professional Plus multiparameter meter

P total (mg.L-1) Standard Methods WEF, AWWA, APHA, 21st ed., 2005, 4500 E

-1 Soluble reactive P- PO4 3- (mg.L ) MERCK, 1.14848.0001

pH YSI Professional Plus multiparameter meter

Total Dissolved Solids (mg.L-1) YSI Professional Plus multiparameter meter

Total Suspended Solids (mg.L-1) Standard Methods WEF, AWWA, APHA, 21st ed., 2005, 2540 D

Temperature (°C) YSI Professional Plus multiparameter meter

Turbidity (UNT) 2100Q HACH Turbidimeter

It was not possible to systematically observe negative impacts resulting from eucalyptus stewardship activities on water courses evaluated from August 2010 through December 2020. It is understood that environmental factors such as rainfall and physical and chemical characteristics of water will play an important part in the behavior of analyzed variables, impacting the analysis results. Again, it should be emphasized that native vegetation along watercourses (riparian forest) plays a fundamental role in the conservation of such environments, being partly responsible for absorbing or even eliminating pollutants that could be carried/leached by rainwater. Monitoring campaigns in the Baratinha and Vai-e-volta projects indicated that eucalyptus plantation and stewardship activities do not seem to have a negative effect on the environment as only sporadic, punctual nonconformities with the legal limit established for freshwater class 2 (CONAMA Resolution 357/2005 and Joint

Technical Board Public Summary of the Environment and Quality Department Forest Stewardship Plan Environmental Coordination 32 Regulatory Decision COPAM/CERH-MG 01/2008) were detected. This is further reinforced by the presence and representativeness of species of pollution-sensitive benthic macro-invertebrates, such as those of Limnephilidae and Helichopsychidae families (order Trichoptera) and Leptophlebiidae family (order Ephemeroptera), which are good water quality indicators. It is noteworthy that over the years of monitoring it was recognized that the application of sound management practices are essential prerequisites to ensure the sustainable use of natural resources, the conservation of water quality and preservation of the biotic. The conservation of native vegetation along watercourses (riparian forest) is conspicuous, which, due to its buffering role, is responsible for absorbing or even eliminating pollutants that could be carried/leached by rainwater, ensuring the colonization of environments by species and groups of benthic macroinvertebrates sensitive to pollution.

4.2) High Conservation Value Area – HCVA

CENIBRA’S land is located within the Atlantic Forest domain, whose remnants both inland and at the seashore are subject to special protection policies according to Brazilian legislation. The Atlantic Forest is considered a major priority in terms of biodiversity conservation in the Americas. It is in a critical situation and its coverage area has been reduced to approximately 7.6% of its original area, which totaled 1,306,421 km2. Spread over 17 Brazilian states, this biome consists of several quite diversified phytophysiognomies determined by the proximity to the coast, relief, soil type, and rainfall regimes. Such characteristics gave rise to the development of a wealthy biotic complex of a forest nature. In spite of considerable devastation, the Atlantic Forest still preserves a significant portion of Brazil’s biological diversity, with very high levels of endemism. In this context, CENIBRA’s natural vegetation areas are deemed very important, and the Company treats them accordingly, particularly in terms of their protection and improvement. The designation of a forest or area as High Conservation Value Areas (HCVA) does not prevent its stewardship. However, it should be planned and implemented in a way that ensures the maintenance or improvement of the conservation values. All forest areas and other forms of natural vegetation are highly valuable from the social and environmental standpoints, as they protect watersheds, host endangered species, and provide local communities with a space for their customary use. Sites where such values are deemed exceptional or critically important can be defined as HCVA. In the case of Social HCVA, a comprehensive consultation with communities within the Company properties was carried out in 2019. The goal was to deepen the knowledge about the community needs and values in those areas that are important, exceptional, or critical for such communities. Such attributes confer upon these areas the status of “High Conservation Value Areas”. In these areas, in addition to the regular monitoring conducted by the company, specific monitoring activities are carried out with an aim to ensure the maintenance or improvement of the identified attributes.

Technical Board Public Summary of the Environment and Quality Department Forest Stewardship Plan Environmental Coordination 33 Chart 10 – List of High Conservation Value Attributes at CENIBRA’s land

High Monitoring / Conservation Threats and Impact on Description Conservation Measures Frequency Value Attribute Aspects HCVA

a) Mosaic forest stewardship, with tracts of different ages, to ensure lower-impact stewardship operations; b) Identification in operation maps; c) Vehicle traffic restrictions in areas adjacent to the HCVA; d) Enhanced protection against illegal hunting and fishing, and forest fires, including horse patrol;

e) Environmental education campaigns and Monitoring of PNHR Macedonia HCV 1 – Important 1. Forest fires projects involving local schools and using anthropic actions: Farm –Macedonia area for species 1. Loss of endangered species as a protection icon; continuous Project – RD conservation 2. Predatory biodiversity hunting f) Communication with neighbors Fauna and flora and environmental education to forest monitoring: yearly workers; g) Construction and maintenance of firebreaks at property boundaries; h) Specific measures stipulated in the operational procedures aiming to enhance conservation or minimize environmental impacts, such as taking care to prevent eucalyptus trees from falling over native vegetation, clearance between wood piles to allow for wildlife mobility.

HCV 6 - Area a) Property security; Monitoring of of special Fonseca Loss of access to anthropic actions: paleontological 1. Destruction of b) Operating patrols; Paleobotanic Site paleontological continuous importance for paleontological – Togó Project Values and b) Signage; the scientific attributes Scientific research – NE resources and academic c) Identification in operating maps to include monitoring: community the area in the planning. whenever required

a) Periodic road maintenance using soil conservation techniques; Qualitative water HCV 4 & 5 - Areas 1. Fires; monitoring: six and resources b) Mosaic stewardship; Mirassol monthly of fundamental 2. Riparian forests; 1. Silting of water Community c) Consider the presence of water spring in importance bodies and springs; Soil cover Water In-take - 3. Chemical the TEESP; to meet local monitoring Pompéu Project transportation; 2. Water communities’ through satellite - RD contamination. d) Identification in operating maps; needs - water 4. Municipal imagery; intake landfill of Açucena. e) Open dialogue with community, own employees and outsourced personnel about TEESP. HCV.

Technical Board Public Summary of the Environment and Quality Department Forest Stewardship Plan Environmental Coordination 34 High Monitoring / Conservation Threats and Impact on Description Conservation Measures Frequency Value Attribute Aspects HCVA

a) Property security; Deterioration of sites of b) Operating patrols; Cocais das HCV 6 - Area of cultural, religious c) Signage; Estrelas special historical Loss of access or traditional Monitoring of Community and cultural to historical and importance; d) Identification in operating maps to anthropic actions; Cemetery - importance for cultural values and include the area in the planning; Loss of cultural Jatobá I Project the community - resources TEESP. identity and value. e) Improved access to the cemetery; - NE Cemetery f) Open dialogue with community, employees and outsourced personnel about HCV.

a) Property security; Deterioration b) Operating patrols; Ilhéus do Prata HCV 6 - Area of of sites of cultural, religious Community special historical Loss of access c) Signage; Monitoring of Cemetery - and cultural to historical and or traditional d) Identification in operating maps to anthropic actions; Cachoeira de importance for cultural values and importance; include the area in the planning; TEESP Santa Maria the community - resources Loss of cultural Project - NE Cemetery identity and value. e) Open dialogue with community, employees and outsourced personnel about HCV.

Deterioration a) Property security; of sites of b) Operating patrols; HCV 6 - Area of cultural, religious Fernandes special historical or traditional c) Signage; Community Loss of access Monitoring of and cultural importance; Cemetery - to historical and anthropic actions; importance for d) Identification in operating maps to Fernandes cultural values and Loss of cultural the community - include the area in the planning; TEESP Project - NE resources identity and value. Cemetery e) Open dialogue with community, employees and outsourced personnel about HCV.

TEESP: According a) Mosaic stewardship; to Schedule Soil cover monitoring b) Property security; through satellite 1. Fires; c) Operating patrols; imagery: annual; HCV 6 - An Annual Meeting annual Gathering 2. Riparian forests; 1. Silting of water d) Implementation of preventive measures of the Friend of of Waters takes bodies and springs; to combat fire; 3. Transportation Teobaldo Lake: place at Teobaldo Teobaldo Lake of chemicals; e) Identification in operating maps; annual; Lake and has 2. Water - Teobaldo Lake contamination. and Bocaina particular historical 4. Chemical f) Prioritizing forest restoration to create Communication Projects - NE and cultural control of shrub wildlife corridors; with stakeholders importance for the competition; h) Open dialogue with community, about forest community 5. Loss of access to employees and outsourced personnel about stewardship cultural values and HCV. activities to be resources. carried out in the i) Signage. Teobaldo Lake region; Monitoring of anthropic actions.

Technical Board Public Summary of the Environment and Quality Department Forest Stewardship Plan Environmental Coordination 35 High Monitoring / Conservation Threats and Impact on Description Conservation Measures Frequency Value Attribute Aspects HCVA

Communicate 1. Fires stakeholders about HCV 6 – The 1. Deterioration forest stewardship straw of Indaiá 2. Chemical of sites of a) Property security activities to be Indaiá Project - coconut tree has control of shrub cultural, religious carried out in the Region of Cocais critical cultural competition or traditional b) Open dialogue with community, Cocais region: - NE and economic importance employees and outsourced personnel about 3. Loss of access to whenever importance for HCV; cultural values and 2. Loss of cultural local communities Continuous Support resources identity and value. for the Indaiá Social Project is provided.

HCVA PNHR MACEDONIA FARM

Presence of several native flora and fauna species in danger of extinction. A pioneering project of reintroduction of birds in danger of extinction, such as red-billed curassow, solitary tinamou, Black-fronted piping guan, and spot-winged wood-quail. This farm provides excellent conditions for fauna studies aimed at understanding the species reintroduction process, as well as flora and phytosociological surveys on Atlantic Forest remnants. A trail and other facilities are used in environmental interpretation and educational activities. According to the Minas Gerais Biodiversity Conservation Report, the area is considered as having high biological importance and priority for flora conservation and very high importance and priority for mammal conservation. The effectiveness of such measures is assessed through yearly environmental monitoring results. The corresponding results make it possible to check how effective the adopted measures have been in maintaining or enhancing the biodiversity conservation attributes of the monitored area. Wildlife inventory and monitoring have been conducted at HCVA PNHR Macedonia Farm on a seasonable basis since October 2004. Over this period, campaigns were carried out in the direct and indirect area of influence of the HCVA, covering the whole biological cycle of the avifauna, i.e., taking into consideration seasonal factors. To date, such monitoring detected 279 bird species, which account for 35% of the species already cataloged for the State of Minas Gerais. Of this total, 20 species are registered in official lists of endangered bird species. This outcome expresses the avifauna potential in the HCVA PNHR Macedonia Farm. Regarding mammalian fauna, to date 51 species have been registered in the HCVA PNHR Macedonia Farm. Eight of these species are officially listed as bird species in danger of extinction. The evolution of the richness of species of birds and mammals in the AAVC RPPN Macedonia Farm region over the years of monitoring can be observed in figures 13 and 14.

Technical Board Public Summary of the Environment and Quality Department Forest Stewardship Plan Environmental Coordination 36 Figure 13 - Growth in the number of bird species in the HCVF PNHR Macedonia Farm and surroundings over the monitoring period

BIRDS – Total Number of Species Species richness

Period/year

Figure 14 - Growth in the number of mammal species in the HCVF PNHR Macedonia Farm and surroundings over the monitoring period.

MAMMALS – Total Number of Species Species richness

Period/year

The monitoring results, including species richness and composition, and the environmental distribution and characterization of birds and mammals in the surveyed areas, have led to the conclusion that the surveyed biotopes are in proper conservation condition and favor the maintenance of bird and mammalian species in the region.

Technical Board Public Summary of the Environment and Quality Department Forest Stewardship Plan Environmental Coordination 37 Fonseca Paleobotanic Site – HCVA

Area with an important paleobotanical site containing fossils of extinct pteridophytes and angiosperms, as well as insects, pollens, and great diversity of plant species. This site is referenced in several publications in the field of paleontology, especially paleobotany. A number of research projects have been carried out at this HCVA by major Brazilian universities and it has a potential for new studies.

Indaiá Project – HCVA

The “Indaiá Project” is a multidisciplinary program developed by artisans from communities of several districts in the municipalities of Antônio Dias and Coronel Fabriciano. This Project’s main activity is the making of handicrafts from the straw (leaves) of the Indaiá coconut tree. The Association has 20 members and a steady craftsmanship, which expresses the culture and history of a people and is currently seen as a social inclusion factor and an addition to the income of several Brazilian communities. In Cocais, the straw is collected only from young leaves of the Indaiá coconut trees in the regeneration stage, but it is not limited to CENIBRA’s properties, which makes it difficult to delineate a precise area of collection.

Mirassol Community Water In-take – HCVA

Surface water is taken from the Mirassol Creek between forest tracts No. 56 and No. 60 in the Pompéu Eucalyptus Plantation Project in the Rio Doce Regional Unit to supply the Mirassol community in Açucena. Approximately 70 households and the Municipal School Padre Félix are supplied with this water. The 1.98 liters/second water flow is not enough to supply the entire community.

Cocais das Estrelas Community Cemetery - HCVA

The cemetery of the Cocais das Estrelas community, composed of 102 families, is located in the forest tract No. 395 of Jatobá I Eucalyptus Plantation Project, in Cocais. This community is located in the municipality of Antônio Dias and the cemetery occupies an area of 895 m².

Ilhéus do Prata Community Cemetery - HCVA

The community of Ilhéus do Prata is populated by approximately 90 families and belongs to the municipality of São Domingos do Prata. The community cemetery is located in the forest tract No. 1 of the Cachoeira Santa Maria project and occupies an area of 1,319 m².

Teobaldo Lake – HCVA

This HCVA hosts native forests in aquifer recharge areas that are responsible for part of the supply of the Teobaldo Lake, located between the eucalyptus plantation projects Lagoa Teobaldo and Bocaina and a third party’s property. Such forests also protect the banks of the lake, a place of great cultural, historical, religious, and environmental importance for local residents. It is a rare ecosystem (natural lake at an altitude of 1000 m) capable of supporting studies in various areas of the natural sciences. The Gathering of Waters of Teobaldo Lake is an annual event that turned 20 in 2019. According to environmentalist Cláudio Guerra, the Teobaldo Lake gained visibility because of scientific research carried out by UFMG from 1996 to 1998, which had great support from the local community. In 1999,

Technical Board Public Summary of the Environment and Quality Department Forest Stewardship Plan Environmental Coordination 38 the lake was visited by the Piracicaba Expedition 300 Years Later, on which occasion the Mass of Waters was celebrated on its banks, with the attendance of more than 500 people. Thereafter, a group of friends and people interested in the lake preservation started to organize the Annual Gathering by its banks. In 2003, the Association of Friends of Teobaldo Lake (AALT in the Portuguese acronym) was created. In 2004, CENIBRA removed all eucalyptus trees from the banks of the lake and planted around 5,000 native species of trees.

Fernandes Community Cemetery – HCVAt

Located in the municipality of Ferros, the Santana de Fernandes community, composed of 34 families, is facing the Fernandes Eucalyptus Plantation Project. The local cemetery is active and occupies an area of 764 m² in the preservation area of the Fernandes Project’s forest tract No. 121.

4.3) Environmental Education and Communication

CENIBRA has developed an environmental education process in line with the Company’s quality policy, to be implemented in a systematic way, integrated with the forestry process. The target is to shift the eucalyptus cultivation paradigms while promoting environmental awareness and supporting citizenship practices. Guidelines: • Promote environmental awareness and sensitization of the internal audience involved in the forestry operating activities; • Prepare and implement communication processes with an aim to qualify internal multipliers to demonstrate to the external audience how committed the Company is to sustainable development; • Inform and make managers, coordinators, supervisors, monitors, and outsourced service managers aware of the main subjects inherent to each regional unit concerning wildlife, vegetation, and water resources; • Establish corporate mechanisms to integrate the Company with its neighbors and participants in the Forestation Incentive Program; • Promote environmental education through formation of multipliers in the public education network as a tool for changing people’s behavior toward environmental and citizenship issues; and • Foster a closer relationship between CENIBRA and community by creating opportunities for the community to get familiar with the forestry and industrial processes, and their environmental and economic implications. Each line of action is founded on its respective guidelines and gives rise to programs and activities developed by CENIBRA’s operational and support sectors, service providers, and partnerships with non-government organizations and research entities.

Technical Board Public Summary of the Environment and Quality Department Forest Stewardship Plan Environmental Coordination 39 SOCIAL AND LABOR MANAGEMENT

5) HUMAN RESOURCES POLICY

Through its Human Resource Policy, CENIBRA pursues the best market practices in terms of salaries, benefits, training, and development, comparable to those adopted by companies of similar size and operations. In this sense, the Company’s aim is to attract and retain people that are aware of the challenges posed by professional growth, while offering equal recognition and professional development opportunities. The Human Resources Department’s main guideline is acting as a transformation agent. It deals the Company’s Human Resources as a competitive edge and turns information into shared knowledge. The Human Resources Department focuses on Policies and Practices that provide employees with improvement opportunities, integrity, and well-being. The Corporate Human Resources Planning is a dynamic process of human organization management in interaction with the Company’s business expectations. The Human Resources area contributes to the accomplishment of the organizational objectives as it offers management a tool to attract, retain, and develop employees, as well as anticipate their needs, while fostering their motivation, so as to provide the organization with the highest quality levels.

5.1) Recruitment, Selection and Remuneration

In its quest for quality personnel, CENIBRA has adopted the most modern selection methods with an aim to achieve excellent employee/company interaction. The internal recruitment policy aims to value current employees by giving them the opportunity for career progress. When internal recruitment is not feasible, the Company uses its CV database, priority being given to applicants from the region, as well as people with special needs. CENIBRA’s compensation policy is based on collective bargaining agreements and yearly market research conducted by the industry players’ Human Resources Group. In addition to fixed remuneration, the Company offers incentive programs linked to the achievement of established goals, including Earnings and Profit Sharing. CENIBRA enjoys a friendly relationship with labor unions.

Technical Board Public Summary of the Environment and Quality Department Forest Stewardship Plan Environmental Coordination 40 Table 05: Table listing the number of CENIBRA’s employees, year 2020.

Number of Own Area Gender Employees

Male 3 Directors Female 0 Male 21 Managers Female 0 Male 3 Diretoria Female 0 Male 68 Coordinators/Specialists Female 15 Male 75 Administrative Female 88 Male 340 Industrial Operation Female 13 Male 2.462 Forestry Female 131 Male 477 Wood Harvesting Female 1 Male 28 Wood Transportation Female 1 Male 223 Maintenance Female 8 Male 286 Others Female 138 Total 4.378 5.2) Personnel

The challenges posed by the economic growth in Brazil have turned the adoption of technological innovations in production processes into a mandatory strategy to ensure society’s sustainable progress. In this sense, the modernization of the planted forest industry is a natural solution, which has been gradually implemented and reaped undeniable benefits. Such modernization involves not only infrastructure investments, but also improvements in the human resources management model. The need for aligning forestry technologies to market challenges has favored the implementation of a new process by CENIBRA to obtain its raw material. The new process involved an increase in the Company’s personnel headcount, including the hiring of a significant portion of the contractors’ personnel assigned to forestry activities.

Technical Board Public Summary of the Environment and Quality Department Forest Stewardship Plan Environmental Coordination 41 In the case of activities whose personnel are employed through outsourcing arrangements, the outsourcing contracts are drawn up and managed in such a way so as to ensure compliance with labor laws and occupational health and safety requirements. Compliance with the contractual provisions is monitored by the CENIBRA team. In 2020, the company had over 3,400 personnel of outsourced companies, in the forestry, industrial and logistics areas. CENIBRA reiterates its permanent commitment to compliance with any legislation, regulation, standard, undertaking charter, and codes of good practice that are of either voluntary or mandatory application to the aspects of quality, environment, safety, human rights, ethics, and social responsibility in every activity performed by CENIBRA or its contractors, as provided for by its “Integrated Management System Policy”.

5.3) Occupational Health and Safety

CENIBRA adopts the best OH&S Occupational Health and Safety management practices. This is achieved by complying with applicable legal and technical requirements (Ministry of Economy’s Regulatory Standards, ABNT technical standards and Forest Certification, among others), and conducting preventive actions, training and qualification tools, survey and control of hazards and risks contained in all processes, seeking to protect the health and physical integrity of all employees. In order to identify and rate work-related risks in terms of their magnitude (mild, moderate, or critical) and implementation of the required actions to block and control risks, CENIBRA has written, formal procedures that are available to all employees. In addition, Company’s top management adopts the following guideline as a fundamental principle: “IF SOMETHING CAN’T BE DONE SAFELY, DON’T DO IT”. Existing hazards and risks at each organizational unit are described in specific spreadsheets as a means of following up and monitoring the required controls. Should hazardous conditions or near misses be detected in processes and workplaces or during the execution of an activity, a formal method based on written procedures and specific forms is in place to record the problem and the measures to solve it, without necessarily identifying the reporting employee. In cases in which an employee faces or is put in serious, imminent risk of accidents or diseases that could harm his or her physical integrity or health, another written, formal procedure entitles him or her to the Right to Refuse to Work. Should the manager and the subordinate employee fail to reach a common solution to the problem, technical professionals from the Occupational Health and Safety department should participate, analyze the situation, and provide guidance on proper actions to be taken. CENIBRA maintains a team of specialized occupational health professionals made up of doctors, nurses, nursing technicians, dentist, speech therapist, ergonomist, and physical education instructor. This highly qualified team systematically monitors employees’ health through the Occupational Health Medical Control Program, periodically conducting occupational medical examinations (hiring, periodically, change of job, and return to work) on all employees. Other activities include the campaign against the Aedes Aegypti mosquito, distribution of banners in working areas with guidance on precautions against bees and wasps, flu vaccination and anti-drug campaigns, spotted fever and STD/AIDS prevention campaigns, and medical consultations. The need for changing one’s behavior and adopting a healthier life style is also among the themes addressed when discussing health topics and guidance. CENIBRA carries out studies on workplace ergonomics and work environments and implements improvements as required and indicated by such studies.

Technical Board Public Summary of the Environment and Quality Department Forest Stewardship Plan Environmental Coordination 42 CENIBRA and its subcontractors adopt occupational health and safety management best practices with a view to reinforce the safety culture as an important factor to add value to business. Every year, the Company promotes several health-related campaigns addressing both general and specific topics of interest contemplating all genders, with the goal of enhancing employees’ awareness about disease prevention and quality of life. CENIBRA provides all employees with training in occupational health and safety so that every activity is carried out under suitable, safe conditions and in line with all applicable technical and legal requirements. The training & development program maps all existing positions in the company and takes into consideration hazards and risks associated with each position, as well as applicable legal and technical requirements, to plan and implement the required training courses The following actions in 2020 deserve to be highlighted: basic dental care at the regional units through a mobile dental office, implementation of the “quit smoking” program followed up by a multidisciplinary occupational health team, preliminary risk assessment of all activities, occupational health and safety campaigns to enhance employees’ and service providers’ awareness about disease and accident prevention, occupational health and safety dialogues, workplace exercises and work breaks, several actions carried out by Internal Committees for Rural Work Accident Prevention (CIPATR), promotion of the Rural Work Accident Prevention Week together with contractors, including lectures and actions to enhance the workers’ awareness of safety as a fundamental value of life, conduction of routine occupational health and safety inspections and audits, occupational health and safety patrol by process managers under guidance by professionals from the Specialized Service of Rural Work Safety and Health (SESTR), statutory and operational training on occupational health and safety adaptation of agricultural and forestry machinery and equipment to the Labor Ministry’s protection regulations (NR-12 and NR-31), continuation of training and monitoring of light and heavy vehicle operators with respect to defensive driving on paved and unpaved roads, and technical guidance on COVID-19. The employee “Safe Behavior” training program stands out when it comes to ensuring compliance with all occupational health and safety rules and procedures. This program also focuses on the dissemination of the “Active Care” concept, reinforcing the importance of an approach based on “I take care of my own safety”, “I help take care of my co-worker’s safety”, and “I allow my co-worker to help me take care of my safety”.

Technical Board Public Summary of the Environment and Quality Department Forest Stewardship Plan Environmental Coordination 43 Results

Seeking to achieve occupational health and safety results, CENIBRA and its service providers conducted a number of occupational health and safety initiatives, including training courses, lectures, campaigns, workshops, safety dialogues, risk and hazard assessment, routine inspections, audits, health month, and dental assistance, among other events and actions. It makes use of methods fitted to the employees’ understanding, with the ultimate objective of enhancing knowledge about the issues concerning the workers’ life and the physical integrity and quality of life of everyone involved in forest stewardship activities. Charts 11 and 12 show the number of Work Safety and Occupational Health training courses and actions carried out, respectively, in the company’s forestry area during 2020.

Chart 11: Occupational Health and Safety Actions

Number of training events Subject 108 1st 2020 Virtual Technical Forestry Seminar 14 1st Operational Evaluation of Forestry FW Machines 26 1st Operational Evaluation of Forestry HV Machines 20 24th SIPATR – Epidemy innovation take care of health 21 2nd Operational Evaluation of Forestry FW Machines 20 2nd Operational Evaluation of Forestry HV Machines 62 Venomous Animals 1 Beekeeping - Partnership program 4 Learning How to Practice 5S 12 Customer service 213 Equipment Checklist 11 Coaching 328 Code of Ethical Conduct 40 Selective waste collection 103 Compliance 1 Communication approach and radio communication 30 Assertive communication and sexual harassment 4 Communication and interpersonal relationships 31 Right to use image 75 Disclosure of COVID-19 Information 3 Executive coaching - Training 7 Portable Fire Extinguishers

Technical Board Public Summary of the Environment and Quality Department Forest Stewardship Plan Environmental Coordination 44 Number of training events Subject 20 Source Generates Risk to Work Integrity, Health 20 Negotiation Skills 43 Detect Diseases Caused by Plagues in the Area 24 Family-company Integration 1 Integrated Management System Integration 82 List of Environmental Impacts and Aspects 2 Live Find Calm in Chaos to Preserve Health 1 MBA in Forestry Management 20 Risk Control Measures: EPC and PPE 1 FW John Deere 1910 Operation 200 Operational Guidance 1 The 8 Steps of Professional Development 51 Environmental Emergency Plan (PEA) - 10 Environmental Sustainability and CVA Tips 60 Technical Forestry Recommendation 1 Golden Rules - Nursery Activity 32 Interpersonal Relationship 11 Information Security 2 DESIL-N and DESIL-R Forest Technical Seminar 6 Manual Machine Signaling 1712 health and safety training events in total.

Chart 12: Occupational Health and Safety Trainings

Number of training events Subject 1 147th DMSS - Monthly Health and Safety Dialogue 1 148th DMSS - Monthly Health and Safety Dialogue 20 Accident, Disease, Exposure to Risk, Machine Implement 2 Alignment Instruction - Tractor and Implement 11 FSC® and CERFLOR Chain of Custody 55 Workshop on Safe Behavior 69 Irregular Soil Displacement and Tool Transportation 1500 Occupational Health and Safety Dialogue

Technical Board Public Summary of the Environment and Quality Department Forest Stewardship Plan Environmental Coordination 45 Number of training events Subject 13 Defensive Driving 4 Portable Fire Extinguishers Training 81 FCE0013 v.09 - Forest Fire-fighting Equipment 20 Waste Safety Datasheet 6 Forest Observer Training 12 Training Tractor Operation and Implements 6 Detection of Pest and Diseases Within Nursery 2 Technical Instruction for Forestry Machinery 1 Institutional Integration / Governance 7 Integration of Interns 16 Integration of Newly-hired Personnel 20 Health and Safety at Work (OH&S) Concept on Traffic Rules 11 Occupational Hazards Risk Analysis 44 One-Point Lesson - Forest Harvesting 30 Forest Certification and Stewardship 8 Roller Table Motions 36 NR 01 - Application of Service Order 4 NR 01 PCA - Hearing Conservation Program 5 NR 01- Safety of Newly-hired Personnel 50 NR 06 – PPE - Personal Protective Equipment 10 NR 10 - Electricity Safety Workshop 6 NR 12 – Retraining on Chainsaw Operation 2 NR 12 - Brush Cutter Safe Work Operation 12 NR 17 - Ergonomics 5 NR 23 - PCI - Fire Prevention and Fighting 8 NR 26 - Safety Signals 9 NR 31 - Winch Anchoring 44 NR 31 - Safe Tractor Implement Operation 12 NR 31 - Chemical Mowing and Ant Control and Extermination 2 NR 31 - Forwarder Operation Practical Training 9 NR 31 - HV/FW Theoretical Operation Training 1 NR 31 - Herzog Harvester Winch Implement

Technical Board Public Summary of the Environment and Quality Department Forest Stewardship Plan Environmental Coordination 46 Number of training events Subject 1 NR 31 - Forwarder Winch Implement 1 NR 31 - Forwarder John Deere Operation 1 NR 31 – Operation of Subsoiler Tractor-mounted Farm Implement 2 NR 31 - Harvester JD 1270g Practice Operation 6 NR 31 – First Aids /Rescue from Heights 5 NR 31 - Safety of Practical Tractor Implement Operation 2 NR 31 - Safety of Tractor Operation - Retraining 5 NR 31 – FW Winch Implement 6 NR 31 - HV Winch Implement 10 NR 31 – First aids 9 NR 31 - Mowing to Control / Exterminate Ants 4 NR 31 - Chemical Mowing 11 NR 35 – Safety Aspects Working at Heights 2 NR 11/NR12/NR31 – Safety of Forestry Machinery Operation 7 NR 31 - Safe operation TMO Winch Tractors – Practical Training 5 NR 31 - Safe Operation of TMO Winch Tractors 1 NR 31 - HV Ponsse Winch Implement 3 NR 31 – Pesticide Application 2 NR 31 - TMO Valtra 110/125i Operation 3 Virtual Forwarder Ponsse Simulator Operation 2 Virtual Harvester Ponsse Simulator Operation 7 Forwarder John Deere 1910 Operation 25 Forwarder Ponsse Elephantkin Operation 5 Harvester John Deere 1270g Operation 25 Harvester Ponsse Operation 1 Forwarder JD 1910e Operation - Retraining 4 Harvester JD Operation Virtual Simulator 6 P01006 v.3 - Maintenance Auxiliary Winch Traction 2 P01039 - Electronic Monitoring Center 10 P01052 – Use of Electronic Equipment 19 P01064 v.0 – Cutting Material 22 P01074 - Prevention Handling Forestry Equipment Sinister

Technical Board Public Summary of the Environment and Quality Department Forest Stewardship Plan Environmental Coordination 47 Number of training events Subject 7 P01076 v1 - Survey Analysis Aspects Social Impacts 6 P0188 - Solid Waste Management 9 P0331 - Technical Planning Forestry Projects 7 P0340 – Lease Registration Legal Reserve 66 P0341 - Forest Fire Fighting Prevention 20 P0360 - Herbicide Application 5 P0371 – Implementation, Reformation, Maintenance, Regeneration 1 P0373 - Production of Clonal Eucalyptus Seedlings 23 P0395 - Risk Prevention Analysis 2 P0398 - Industrial Emergency Response Plan 1 P0418 – Dealing with Non-compliance 5 P0437 – Control of Leaf-cutting Ant 4 P0445 – Training of Regional On-duty Employee 2 P0508 - Environmental Aspects and Impacts 7 P0535 v.21 – Road Construction Reopening Maintenance 6 P0552 - Communication with Stakeholders 13 P0561 v.13 - Forest Harvesting Activity Planning 3 P0577 - Property Protection 2 P0581 – Monitoring of leaf-cutting ant 5 P0604 – Forest emergency response plan 3 P0613 - Quality Control of Forestry Operation 33 P0630 v16 - Quality Control of Forestry Harvesting and Transport 12 P0632 - Forest Harvesting 14 P0666 v.16 - Selective Transport 4 P0706 – Transportation Forestry Equipment Machinery 12 P0707 – Maintenance of Fire Suppression System 7 P0751 - Incident, near miss, danger condition 2 P0774 - CENIBRA Incoming and Outgoing Materials 2 P0795 – Monitor Domestic Animals CENIBRA 8 P0812 - Communication, Investigation, Analysis, Registration 11 P0822 v.6 - Security Operations Loading 1 P0857 – Program “How I am Driving”

Technical Board Public Summary of the Environment and Quality Department Forest Stewardship Plan Environmental Coordination 48 Number of training events Subject 1 P0866 v.5 - Washing Forestry Machinery and Equipment 6 P0900 - Management of educational / disciplinary OH&S actions 8 P0903 - Right of Refuse to Work 2 P0906 - Chemicals Safety Datasheet 3 P0923 - Continuous Abstraction Forestry Process Water 42 P0925 v.2 – Mechanized Harvesting Winch Traction 2 P0952 – Invasion and Trespass to Land 3 P0955 –Motorized Pit Digging Retraining 183 P0960 - Mechanized Forest Harvesting v.5 2 Risk Perception – Forestry Process 1 NR 31 - FW Winch Implement 1 NR 31 - HV Winch Implement 33 P0188 v18 – Solid Waste Management 13 Retraining of Internal CoC System Auditor 23 Retraining Manual Thinning 3 Retraining on P0561 Procedure 1 Retraining on NR 31 Harvester HV Winch Operation 6 Semiannual Retraining P0632 8 Golden Rules 1 FW – Ponsse Virtual Simulator Operation 30 Integrated Management System 8 Timberfleet 1 Timbernave 3,053 Health and Safety events in total.

5.4) Benefits

CENIBRA offers its employees and their dependents health assistance through a self-managed health plan, comprising a comprehensive, highly qualified assistance network, including hospitals, doctors, dentists, drugstores, optometry, funerals, psychology, physiotherapy, phono audiology, psychiatry, and alternative medicine. In addition to health assistance, the Company provides supplementary perks and benefits, such as: private pension fund, group life insurance, commuting, meals, daycare allowance, school kits up to high school for employees and their children from 6 to 18 years of age, Christmas basket, Christmas gifts for employees’ children up to 9 years of age, reimbursement of language school costs, and others.

Technical Board Public Summary of the Environment and Quality Department Forest Stewardship Plan Environmental Coordination 49 5.5) Training, Development and Quality of Life

CENIBRA develops training programs that enable career development and support the employee in overcoming challenges in a climate of cooperation, always in tune with market trends. In this sense, CENIBRA adopts far- reaching policies for the qualification of its staff. Such activities are offered to all employees in accordance with their institutional, legal, operational, and development needs, so that the acquired capabilities are applied on the job. Training is an important tool to speed up learning and improve managerial and technical qualifications and, as a result, it produces both behavioral and cultural changes in employees. To ensure that both current and new employees, either temporary or permanent, as well as trainees, become aware of the importance of quality, health, safety, and environmental protection, monthly training is given or internal meetings are held to address these matters from the standpoint of the company’s integrated management policy, guidelines, and regulations. CENIBRA Contract managers are responsible for making sure that contractors’ employees are given training to enhance their awareness about CENIBRA’s Integrated Management System. The objective is to ensure employees are fully aware of the requirements in terms of environment, quality, and prevention of significant environmental impacts, occupational health and safety while working at CENIBRA’s premises. To ensure training effectiveness, integrated audits check for contractors’ adherence to CENIBRA procedures and practices. Audits also determine the degree of employee awareness and familiarity with the Integrated Management System’s documentation and other elements.

5.6) Socioeconomic Profile of CENIBRA’s Area of Influence

CENIBRA operates in 54 municipalities located in the Doce River basin and sub-basins of Piracicaba, Santo Antônio, Suaçuí Grande, Caratinga, and Piranga Rivers. Water from the Doce and Piracicaba Rivers is used mainly for industrial applications. The region where CENIBRA’s eucalyptus forests are located has been used since the 1940s for this kind of plantation. A great expansion was seen from the 1960s onwards due to federal tax incentives granted to this activity. CENIBRA’s land is split into three regional units, namely Rio Doce, Nova Era, and Guanhães. Land use within the Company’s area of influence is as follows: 54.05% occupied with pasture, 18.46% native forests, 11.42% forestry activities, 9.68% either temporary or permanent agriculture; 6.39% not used or useless. Except for the larger cities, like Ipatinga and Governador Valadares, the urban areas, particularly the districts, do not have suitable infrastructure in terms of sanitation system, health services, education, and security. Precarious housing conditions prevail, particularly in town outskirts. Many roads, especially secondary roads in the countryside, were built and are maintained by CENIBRA. Retail business is not very active, with low turnover. Besides CENIBRA and the mining and steel companies, employment options are municipal public jobs. It is also worth mentioning charcoal production, characterized by attractive prices and guaranteed market. Charcoal is produced from wood wastes that do not meet the applicable parameters for pulp production, as well as other wood sources existing in the region. The degree of urbanization at the Company’s Regional Units is as follows: in excess of 90% in Belo Oriente region (Rio Doce Regional Unit), 87% in Nova Era Regional Unit, 75% in the region of Ipaba (Rio Doce Regional Unit), and 55% in Guanhães Regional Unit.

Technical Board Public Summary of the Environment and Quality Department Forest Stewardship Plan Environmental Coordination 50 The regional shortcomings contrast with the large inflow of resources to certain municipalities, particularly Ipatinga, Timóteo, and João Monlevade, due to the presence of mining and steelmaking industrial plants, and Belo Oriente, due to CENIBRA’s plant, which generates a high taxation level. CENIBRA’s area of influence is crossed from north to south by BR 381 highway, which is used for shipping wood to the Belo Oriente pulp plant. Part of the wood harvested from farther areas is shipped through the Vitória–Minas railroad from the Costa Lacerda train station in Santa Bárbara, and Drumond train station in Nova Era. This railroad belongs to Vale Company and conveys mainly ores to the region’s steelmakers and for export. Considering the Company’s position in the context of the Middle Doce River Basin, a mountainous region with original forest coverage, which is naturally suitable to forest plantation, CENIBRA’s enterprise involves low- impact cultivation and contributes to regional growth as it develops and transfers planted forest technology, besides fostering job and income generation and bringing revenue into the country.

6) CENIBRA INSTITUTE

CENIBRA’s Integrated Management System Policy sets forth the commitment to permanent dialogue with customers, suppliers, employees, communities, and other stakeholders. Communication with stakeholders in the forestry field is a corporate task of the Communication, Environment, and Relations with Community areas, as well as CENIBRA Institute. There is a procedure to deal with communications received (questions, complaints, and requests) that sets forth the action flow to be adopted when responding to them. Specific requests for donations of whatever nature are evaluated by CENIBRA Institute, which issues an opinion and triggers the necessary measures to be taken by the corresponding internal areas. The Company has a comprehensive community support program covering the 54 municipalities in which it operates. Such a program is founded on the pursuit of sustainable human development, and creates spaces for discussions and reflections, besides coordinating productive and institutional community organizations through: 1) Strengthening of the social fabric – promoting community qualification through representative organizations to occupy the discussion spaces and formulate public policies; 2) Institutional strengthening – Strengthening of administrations, municipal councils, and trade councils aimed at achieving a more participative democracy and improved services for the population; 3) Strengthening of the Local and Regional Economy – Definition and redefinition of the economic axes, coordination of the main players taking as a benchmark the production chain analysis and organization of networks and strategic alliances among micro and small entrepreneurs, so that they can play a part in the economy under competitive conditions. Created in 2003, CENIBRA Institute’s purpose is to encourage sustainable development as a process of social change and an enhancement opportunity for communities. It matches, in time and space, economic efficiency, growth, environmental conservation, quality of life, and social equity, in a clear commitment to the future and solidarity across generations. The Cenibra Institute’s guidelines are as follows:

6.1) CENIBRA INSTITUTE’s Mission

“Promote actions to support citizenship, collective well-being, social development, economic growth and improvement of the quality of life of those communities located within the area of influence of CENIBRA and its controlled and affiliated companies.”

Technical Board Public Summary of the Environment and Quality Department Forest Stewardship Plan Environmental Coordination 51 6.2) CENIBRA INSTITUTE’s Principles

• Develop actions whose objective is social and economic development through income and job generation, environmental protection, and educational programs; • Support authentic, legitimate initiatives by communities located within the area of influence of CENIBRA and its affiliated and controlled companies; • Prioritize initiatives by duly registered non-government organizations and enjoying real representativeness.

6.3) Strategy

• Promote permanent dialogue and keep communication channels open with communities with an aim to highlight and enhance the relations with the various segments in the towns within the company’s area of influence; • Positively interact with both governmental and non-governmental organizations, particularly within the framework of projects and actions in line with the Institute’s Mission and Principles; • Integrate service providers, goods suppliers, customers, and employees as partners and agents co-responsible for the implementation of the policies of the Institute members in their relations with community; • Identify and improve synergies, and act as a catalyzing agent in projects and actions to the benefit of the inhabitants of municipalities located within the company’s area of influence; • Set up partnerships with both governmental and non-governmental organizations to implement projects and actions with an aim to promote regional development; • Encourage employees’ voluntary participation in the Institute’s projects and actions.

6.4) Areas of Interest

Considering the characteristics, geographic dispersion, and predominance of rural communities, the Institute focuses on the following matters: • Culture • Health • Education • Sports and Leisure • Environment • Social Promotion and Wealth Generation • Emergencies/Contingencies

Technical Board Public Summary of the Environment and Quality Department Forest Stewardship Plan Environmental Coordination 52 Social Investments in 2020

The new scenario presented by the Covid-19 pandemic demanded reflections and strategic adaptations to allow CENIBRA’s social investments to continue benefiting the communities located within itd area of influence. The pandemic has brought out a new way of interacting with people, in which digital communication technologies, such as videoconferences, online courses and e-books were widely used. Social distancing has posed a challenge to the Reading Incentive Project the Family that Reads, which promotes meetings with family members and education professionals. Due to the pandemic, it was readjusted to be taught online with education professionals in the cities favored by the initiative. The online version of the book was made available by the Project, free of charge, and distributed to the students. The activities of the Environmental Education Program (EEP) were rethought to be conducted online, by means of a Virtual Learning Environment (VLE), providing participants with the opportunity to learn the education content at home by means of online resources, such as interactive video lessons, workshops projects, eco- pedagogical games, quizzes and mentoring. A “live” was held to introduce the new platform to the communities. On the other hand, projects that opted to keep face-to-face activities, such as Hand-7, adopted all the necessary measures so that sports practices are carried out in a healthy and safe way. Temperature testing, the use of masks and alcohol-based hand sanitizing were part of the routine of students, parents and teachers. Other projects suspended face-to-face activities and opted to join efforts with the communities in the fight against Covid-19. This was the case of the Cidade Olímpica project, by the NGO AJudôu. The project made video lessons available in order to fill part of the gap caused by the pandemic, and launched the “Ajudôu Vs. Coronavirus” campaign, in which around 100 food cards were distributed to students in public schools for a unit value of R$ 100.00, in addition to mask donations. The construction of the Cultural Facilities of the Multifunctional Park has been completed and opened, making three new areas available to the public: an amphitheater, an art gallery and a library. Now that the new space is opened, the Multifunctional Park will increase the possibilities of carrying out cultural and educational activities, such as theatrical performances in the arena, art exhibition by regional groups, encouraging literary analysis, and recreational workshops with local schools. During the pandemic, the Company worked closely with the Public Power and acted in favor of all communities in which it operates, forming a great partnership demonstrating resourcefulness that benefited hundreds of thousands of people in the 54 municipalities. Among the actions, we highlight the donations of alcohol-based hand sanitizers, masks, cleaning products and disinfectant sprayers for hospitals and city halls, as well as dissemination of educational campaigns on social networks. CENIBRA recognizes the significant impacts of its operations on the socioeconomic and environmental dynamics of communities located within its area of influence. In this sense, it has created a number of tools to manage the impacts of its operations and promote an effective relationship with communities. Chart 13 below shows the Investment in Social and Environmental Responsibility through social programs promoted by Cenibra Institute in line with the United Nations (UNO) Sustainable Development Goals.

Technical Board Public Summary of the Environment and Quality Department Forest Stewardship Plan Environmental Coordination 53 Chart 13: Social programs promoted by CENIBRA INSTITUTE

GOAL - ODS PROJECT TARGET AUDIENCE 2019 ACTIONS

8. DECENT WORK AND ECONOMIC Beekeepers from 13 GROWTH No face-to-face activity was conducted with beekeepers due Partnerships with associations located in to restriction measures imposed to contain the Coronavirus 2 . ZERO HUNGER beekeepers areas in which the company pandemic (COVID-19). AND SUSTAINABLE operates. AGRICULTURE.

No face-to-face activity was conducted with farmers due 8. DECENT WORK to restriction measures imposed to contain the Coronavirus AND ECONOMIC Family farmers from the pandemic (COVID-19); GROWTH municipalities of Belo Farming partnerships Occasional meetings were held with contract managers; 2 . ZERO HUNGER Oriente, Caratinga, Coluna, Soil samples from the partner areas Santa Marta and Praia da AND SUSTAINABLE Ipaba and Virginópolis. Missa were collected and analyzed. AGRICULTURE. A questionnaire was applied to survey social indicators.

Public school teachers in the 4. QUALITY No activity was conducted due to restriction measures imposed to School of Life municipalities of Alvinópolis EDUCATION contain the Coronavirus pandemic (COVID-19); and Catas Altas.

Company-Community 4. QUALITY Teachers, students, and No activity was conducted due to restriction measures imposed to Integration Units EDUCATION community. contain the Coronavirus pandemic (COVID-19); (UNIECO)

Improvements in the physical environment of the Cotta’s Bakery 8. DECENT WORK Cotta’s Bakery Women from the Association facilities, managed by the Cenibra Institute, made AND ECONOMIC Association municipality of Peçanha. it possible to win the bidding process of the Federal Institute of GROWTH Minas Gerais - IFMG, for the supply of snacks.

Celebration of an agreement with Sebrae’s Handicrafts Program to train artisans from Cachoeira Escura, based on the diagnosis of scenery design and raw materials; Other activities included 8. DECENT WORK Handicraft Group of workshops on the Culture of Cooperation and Cooperation for Men and women from the AND ECONOMIC Cachoeira Escura - Development to foster creativity municipality of Belo Oriente. GROWTH GRACE and collaboration. Several other activities were promoted such as workshops and training to promote digital transformation of the Handicraft Group - GRACE in partnership with SEBRAE throughout the year 2020. Many activities were carried out online.

8. DECENT WORK Women from the No activity was conducted due to restriction measures imposed to AND ECONOMIC Solidarity Taste municipality of Açucena. contain the Coronavirus pandemic (COVID-19); GROWTH

8. DECENT WORK Women from the No activity was conducted due to restriction measures imposed to AND ECONOMIC Weavers of Brumal municipality of Santa contain the Coronavirus pandemic (COVID-19); GROWTH Bárbara (Brumal).

3. GOOD HEALTH Youths and teenagers from AND WELL-BEING No activity was conducted due to restriction measures imposed to Health campaigns towns where CENIBRA contain the Coronavirus pandemic (COVID-19); 4. QUALITY operates. EDUCATION

Technical Board Public Summary of the Environment and Quality Department Forest Stewardship Plan Environmental Coordination 54 GOAL - ODS PROJECT TARGET AUDIENCE 2019 ACTIONS

4. QUALITY Communities where No activity was conducted due to restriction measures imposed to Environment and Arts EDUCATION CENIBRA operates. contain the Coronavirus pandemic (COVID-19);

4. QUALITY No activity was conducted due to restriction measures imposed to Cenibra Mobile Communities EDUCATION contain the Coronavirus pandemic (COVID-19);

4. QUALITY Communities where No activity was conducted due to restriction measures imposed to Open Doors EDUCATION CENIBRA operates. contain the Coronavirus pandemic (COVID-19);

4. QUALITY EDUCATION Communities where No activity was conducted due to restriction measures imposed to Action and Citizenship 3. GOOD HEALTH CENIBRA operates. contain the Coronavirus pandemic (COVID-19); AND WELL-BEING

The COVID-19 crisis has forced the Company to find alternatives to face-to-face instruction due to social distancing. As a result, the Reading Family Incentive Project, in which educators work 4. QUALITY Communities where Cultural Projects collaboratively with family members, was turned into virtual EDUCATION CENIBRA operates. events, in the cities favored by the initiative. The online version of the book was made available, free of charge, and distributed to the students.

Municipal Children and Adolescents Rights Councils, Guardianship Advisers, No face-to-face activity was conducted due to restriction measures and Social Operators Effective Council imposed to contain the Coronavirus pandemic (COVID-19); 3. GOOD HEALTH in the System for the – Childhood and In 2020, several live chats, organized by ABA- Ágape Welfare AND WELL-BEING Assurance of the Children Adolescence Association, took place with approaches to guaranteeing the and Adolescents Rights in rights of children and adolescents. 56 municipalities where CENIBRA operates.

Projects that opted to maintain face-to-face activities, such as Hand-7, adopted all the necessary measures so that sports practices are carried out in a healthy and safe way. Temperature testing, the use of masks and alcohol-based hand sanitizing were part of the routine of students, parents and teachers. Other Children and teens from projects suspended face-to-face activities and opted to join efforts 3. GOOD HEALTH Sports Municipalities where with the communities in the fight against Covid-19. This was the AND WELL-BEING CENIBRA operates. case of the project Cidade Olímpica, by the NGO AJudôu. The project made video lessons available to fill part of the gap caused by the pandemic and launched the “Ajudôu Vs. Coronavirus” campaign, in which around 100 food cards were distributed to students in public schools for a unit value of R $ 100.00, in addition to mask donations.

8. DECENT WORK AND ECONOMIC GROWTH Men and women from the Improvement of the Community Garden through the cultivation Jorges 2 . ZERO HUNGER municipality of Peçanha. of “Creole” seeds. AND SUSTAINABLE AGRICULTURE.

Technical Board Public Summary of the Environment and Quality Department Forest Stewardship Plan Environmental Coordination 55 GOAL - ODS PROJECT TARGET AUDIENCE 2019 ACTIONS

Several interventions, workshops and training courses were 8. DECENT WORK Craftswomen from the carried out to promote the digital transformation of the Indaiá AND ECONOMIC Indaiá municipality of Antônio Dias. Craft Group in partnership with SEBRAE throughout the year GROWTH 2020. Several activities were conducted online.

4. QUALITY Communities where No activity was conducted due to restriction measures imposed to Professional training EDUCATION CENIBRA operates. contain the Coronavirus pandemic (COVID-19);

The construction of the Cultural Facilities of the Multifunctional Park has been completed and inaugurated, making three new Communities from the areas available to the public: an amphitheater, an art gallery and 3. GOOD HEALTH municipality of Belo Oriente Multifunction Park a library. The new space will open up possibilities of carrying out AND WELL-BEING and other municipalities cultural and educational activities, such as theatrical performances around the industrial plant. in the arena, art exhibitions by regional groups, encouraging literary analysis and recreational workshops with local schools.

The Covid-19 pandemic required reflections and adaptation strategies to allow the Communities located within the Members of municipal company’s area of influence to continue to benefit from the social 3. GOOD HEALTH councils for the Rights of the Effective Council - investments of CENIBRA. A new method of contacting people has AND WELL-BEING Elderly, elderly and managers The Elderly emerged, in which digital communication technologies such as from 10 municipalities. videoconferences, online courses and e-books have been widely used.

8. DECENT WORK Sewing Factory AND ECONOMIC - Neighborhood Men and women from the In 2020, the association dedicated its time to making fabric masks GROWTH Association of Aviação municipality of Belo Oriente. to meet market demand. - AMA)

10. REDUCED INEQUALITIES. Men and women from the No activity was conducted due to restriction measures imposed to Uruçu 16. PEACE, JUSTICE municipality of Sardoá. contain the Coronavirus pandemic (COVID-19); AND STRONG INSTITUTIONS.

8. DECENT WORK AND ECONOMIC Quilombola families from GROWTH No activity was conducted due to restriction measures imposed to Flour of Indaiá the municipality of Antônio contain the Coronavirus pandemic (COVID-19); 2 . ZERO HUNGER Dias. AND SUSTAINABLE AGRICULTURE.

Smallholder producer 2 . ZERO HUNGER Family Farming - Cocais organizations and family No activity was conducted due to restriction measures imposed to AND SUSTAINABLE dos Arrudas farmers from the municipality contain the Coronavirus pandemic (COVID-19); AGRICULTURE. of Coronel Fabriciano.

8. DECENT WORK AND ECONOMIC GROWTH Bom Jardim de Men and women from the No activity was conducted due to restriction measures imposed to 2 . ZERO HUNGER Tronqueiras municipality of Peçanha. contain the Coronavirus pandemic (COVID-19); AND SUSTAINABLE AGRICULTURE.

Technical Board Public Summary of the Environment and Quality Department Forest Stewardship Plan Environmental Coordination 56 GOAL - ODS PROJECT TARGET AUDIENCE 2019 ACTIONS

2 . ZERO HUNGER Fruit Pulp from Pedra Family farmers from the No activity was conducted due to restriction measures imposed to AND SUSTAINABLE Redonda municipality of Coroaci. contain the Coronavirus pandemic (COVID-19); AGRICULTURE.

8. DECENT WORK Marketers from the No activity was conducted due to restriction measures imposed to AND ECONOMIC Living Market municipality of Sabinópolis. contain the Coronavirus pandemic (COVID-19); GROWTH

8. DECENT WORK AND ECONOMIC In 2020, an agreement was signed between the CENIBRA Institute and SEBRAE to implement a training program for entrepreneurs in GROWTH Arts and Fair in the Marketers from the the municipality of Mesquita with focus on innovation due to the Square - FEIRARTE municipality of Mesquita. 2 . ZERO HUNGER new market challenges as a result of the Coronavirus pandemic. AND SUSTAINABLE AGRICULTURE.

In 2020, The partnership between CENIBRA Institute and the 8. DECENT WORK Fishers and Friends of Doce River Association (APARD) was Fishermen from the AND ECONOMIC Social Fish Farms renewed, in order to conclude the adaptation works in the municipality of Periquito. GROWTH association facilities, with the aim of meeting food safety standards and improve the fishermen working conditions.

8. DECENT WORK Women from the No activity was conducted due to restriction measures imposed to AND ECONOMIC The Art of Hands municipality of Naque. contain the Coronavirus pandemic (COVID-19); GROWTH

Association of In 2020, a facility for storage and sorting of recyclable material 8. DECENT WORK Recyclable Material Waste collectors from the was inaugurated in the district of Perpétuo Socorro - Belo Oriente, AND ECONOMIC Collectors of Belo municipality of Belo Oriente. and donations of recyclable materials (papers discarded by the GROWTH Oriente (ASCABEO) central archives) were made by the CENIBRA Institute.

Association of 8. DECENT WORK Recyclable Material Waste collectors from the No activity was conducted due to restriction measures imposed to AND ECONOMIC Collectors of Açucena municipality of Açucena. contain the Coronavirus pandemic (COVID-19); GROWTH (ACMARA)

4. QUALITY Youth Entrepreneurship Youths from the municipality The project was concluded in 2019. There were no new classes, EDUCATION Center (NEJ) of Belo Oriente. and the agreement was not renewed.

For further information on each of the social programs, please visit our website: http://www.institutocenibra.org.br

Technical Board Public Summary of the Environment and Quality Department Forest Stewardship Plan Environmental Coordination 57 TALK TO CENIBRA CHANNEL

0800 283 1291 Exclusive for Forest Fire

0800 283 3829 Wood Purchase - Forestation Incentive Program Odor Perception Network – OPN How’s My Driving? Other Information

www.cenibra.com.br twitter.com/Cenibra www.facebook.com/cenibra CeluloseNipo-BrasileiraCENIBRA CeluloseNipo-BrasileiraCENIBRA

CENIBRA APP - OUR WORLD IN YOUR HANDS

CENIBRA’s communication guidelines contribute to the Company’s mission and principles of corporate governance based on the pursuit of excellence in communication through the adoption of effective channels that ensure broad, strong credibility, brand awareness, and corporate reputation among its various stakeholders. In this regard, CENIBRA makes available an application for internal and external communications, called CENIBRA APP. It enables users to follow the Company’s main actions, such as social and environmental projects, and corporate performance. It also provides access to the Accredited Network, corporate phone numbers, social networks, videos, and website. Publications and bulletins may also be read. In addition to the content made available to the public at large, employees have access to additional information such as Raw Material Bulletin, the company’s position on specific topics, Corporate Portal, campaigns, communications, notices, and more. This new communication channel is expected to improve the alignment of the corporate narrative and extend the dissemination of CENIBRA’s actions. It will also enable messages to be sent to groups such as the Odor Perception Network and Internship Program applicants.

Download the app (Android) Download the app (iOS)

Technical Board Public Summary of the Environment and Quality Department Forest Stewardship Plan Environmental Coordination 58 PEOPLE RESPONSIBLE FOR PROVIDING INFORMATION

The table below lists the professionals responsible for drawing up and revising this document and their respective roles.

PROFESSIONALS POSITION ROLE

Forestry Manager Responsible for managing Forestry, Equipment Development, Márcio de Souza Reis CREA-MG 197513 Incentive for Forestation, and Forest Protection.

Harvesting, Logistic and Equipment Responsible for managing Harvesting, Logistic and Equipment Renato Lima Coura Júnior Development Manager Development. CRA-MG 01059124/D

Forestry Planning and Research, and Responsible for managing Forestry Planning and Research, José Marcio Cardoso Real Estate Manager Seedling Production, and Real Estate. CREA-MG 40431/D

Vander José Duque Saldanha Human Resources Manager Responsible for managing the Human Resource Policy.

Environment and Quality Manager Responsible for managing the Environment, and Integrated Sandro Morais Santos CRQ 02300850 Management System Policy.

Corporate Communication and Responsible for coordinating Social Aspects, Corporate Leida Hermsdorff Horst Gomes Institutional Relations Coordinator Communication and Institutional Relations.

Forestry Research and Development Responsible for coordinating Research, Genetic Material and Fernando Palha Leite Coordinator Forest Quality Management. CREA-MG 53032/D

Environment Coordinator Responsible for carrying out yearly revision of the Forest Jacinto Moreira de Lana CREA-MG 70665/D Stewardship Plan.

Forest Engineer Responsible for carrying out yearly revision of the Forest André Fernandes Pedroso CREA-MG 149877/D Stewardship Plan.

Technical Board Public Summary of the Environment and Quality Department Forest Stewardship Plan Environmental Coordination 59