Forest Stewardship Plan

PUBLIC SUMMARY 2019 FOREST STEWARDSHIP PLAN

License number: FSC-C021201 License number: FSC-C008495 ÍNDICE GENERAL INFORMATION 3

INTRODUCTION 4

The Company 4 Mission 4 Vision 5 Principles 5 Land and Occupation and Location 6

WOOD PRODUCTION PROCESS 11

Strategic Planning 12 Long-term Planning (21 years) 12 Tatical Planning - Medium Term 13 Operational Planning - Short Term (18 months) 13 Technical, Economic, Environmental, and Social Planning - TEESP 13 Seedling Production 14 Forest Activities 15 Inventory 15 Harvest/Transportation 15

FORESTRY RESEARCH 16

Genetic Improvement 17 Forest Plague Control and Stewardship 17 Soil, Nourishment, and Forest Stewardship 17

FOREST PROTECTION 19

Forest Fire Prevention and Control 19 Property Protection and Community Access to the Company’s Land 22

ENVIRONMENT 23

Environmental Monitoring 23 Vegetation 24 Wildlife 29 Water Resources 33 High Conservation Value Areas – HCVA 36 Environmental Education and Communication 41

HUMAN RESOURCES POLICY 42

Recruitment, Selection, and Compensation 42 Personnel 43 Occupational Health and Safety 44 Benefits 48 Training, Development, and Quality of Life 48 Socioeconomic profile of CENIBRA’s area of influence 48

SOCIAL ASPECTS – CENIBRA INSTITUTE 51

CENIBRA INSTITUTE’s Mission 52 CENIBRA INSTITUTE’s Principles 52 Strategy 50 Areas of Interest 53

CONTACT 58

2 Public Summary of the Forest Stewardship Plan GENERAL INFORMATION

Name: Celulose Nipo-Brasileira S.A. - CENIBRA Address: BR-381, km 172 - Belo Oriente - Minas Gerais - CEP: 35196-972 Phone/Fax: (31) 3829 5010 / 3829 5260 E-mail: [email protected] Internet: www.cenibra.com.br State Registation: 063.141486.0136 Taxpayer´s Number (CNPJ/MF): 42.278.796/0001-99 Legal Representative: Júlio César Tôrres Ribeiro / Technical and Industrial Director This document’s version: Version 15, 2019; this is the 15th version after the initial certification in 2005. This document’s revision: Next revision by April 2020

Public Summary of the Forest Stewardship Plan 3 INTRODUCTION

THE COMPANY Mission CENIBRA is one of the world’s largest bleached “Generate and distribute wealth in a short-fiber eucalyptus pulp manufacturers. Located sustainable manner by processing planted in Belo Oriente, Minas Gerais, 236 km away from trees” the state capital Belo Horizonte, 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 Brazil’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 253,666 hectares of land in 54 municipalities. More than 98% of this area is within the certification scope, i.e., 249,288.4 hectares of owned and leased land broken down as follows: 129,171.5 hectares of eucalyptus plantations, 102,290.1 hectares of native vegetation, and 17,826.7 hectares for infrastructure and other uses. Regardless of certification, responsible forest stewardship practices follow the same pattern in all the company’s properties.

4 Public Summary of the Forest Stewardship Plan Vision Principles

“Be an everlasting company admired by • Ethics: be respectful and truthful in all everyone” 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.

Public Summary of the Forest Stewardship Plan 5 LAND OCCUPATION AND CENIBRA’s forest lands are located in the mid- eastern portion of the state of Minas Gerais, mostly LOCATION in the Doce River drainage basin and its Piracicaba River, Santo Antônio River, Suaçuí Grande River, Caratinga River, and Piranga River sub-basins, as shown in Figure 1.

Figure 1: Location of CENIBRA land in the Doce River basin

6 Public Summary of the Forest Stewardship Plan Table 1: CENIBRA’s performance in the municipalities

Areas (hectare) Occupation (%) No. MUNICIPALITY Actual Municipality Total Total Actual plantation 1 ACUCENA 81.159,00 6.476,92 3.114,04 7,98% 3,84% 2 ALVINOPOLIS 59.979,00 4.182,23 1.870,81 6,97% 3,12% 3 ANTONIO DIAS 78.707,00 16.670,02 8.789,47 21,18% 11,17% 4 BARAO DE COCAIS 34.056,00 3.660,54 1.968,64 10,75% 5,78% 5 BELA VISTA DE MINAS 10.852,00 1.131,85 430,04 10,43% 3,96% 6 BELO ORIENTE 33.531,00 15.963,69 9.250,93 47,61% 27,59% 7 BOM JESUS DO AMPARO 19.516,00 721,88 440,01 3,70% 2,25% 8 BOM JESUS DO GALHO 59.312,00 7.169,18 4.467,10 12,09% 7,53% 9 BRAUNAS 37.623,00 1.673,31 720,78 4,45% 1,92% 10 BUGRE 16.162,00 3.171,73 1.465,50 19,62% 9,07% 11 CAETE 54.224,00 1.112,53 644,79 2,05% 1,19% 12 CANTAGALO 14.188,00 232,46 188,56 1,64% 1,33% 13 CARATINGA 125.869,00 13.278,28 6.339,00 10,55% 5,04% 14 CATAS ALTAS 23.821,00 5.507,09 3.194,73 23,12% 13,41% 15 COLUNA 34.828,00 995,65 510,74 2,86% 1,47% 16 COROACI 57.666,00 6.863,45 3.859,43 11,90% 6,69% 17 CORONEL FABRICIANO 22.208,00 5.966,79 2.631,30 26,87% 11,85% 18 CORREGO NOVO 20.645,00 4.173,10 2.616,85 20,21% 12,68% 19 DIVINOLANDIA DE MINAS 13.200,00 1.777,34 929,95 13,46% 7,05% 20 DORES DE GUANHAES 38.173,00 689,86 378,35 1,81% 0,99% 21 FERROS 109.424,00 11.206,75 5.228,32 10,24% 4,81% 22 GONZAGA 20.896,00 1.435,80 730,82 6,87% 3,50% 23 GOVERNADOR VALADARES 234.890,00 164,42 82,84 0,07% 0,04% 24 GUANHAES 107.682,00 11.296,44 5.256,94 10,49% 4,88% 25 IAPU 34.275,00 1.471,37 777,53 4,29% 2,27% 26 IPABA 11.377,00 5.533,65 2.543,45 48,64% 22,36% 27 IPATINGA 16.609,00 2.059,30 736,76 12,40% 4,44% 28 ITABIRA 125.449,00 5.926,36 2.548,92 4,72% 2,03% 29 JOANESIA 23.269,00 524,28 288,54 2,25% 1,24% 30 MARIANA 119.386,00 3.201,94 1.119,67 2,68% 0,94% 31 MARLIERIA 54.368,00 774,18 358,27 1,42% 0,66% 32 MATERLANDIA 28.092,00 858,50 230,75 3,06% 0,82% 33 MESQUITA 27.499,00 1.219,75 567,39 4,44% 2,06% 34 NAQUE 12.644,00 3.044,21 1.872,88 24,08% 14,81%

Public Summary of the Forest Stewardship Plan 7 Areas (hectare) Occupation (%) No. MUNICIPALITY Actual Municipality Total Total Actual plantation 35 NOVA ERA 36.001,00 7.993,20 3.695,55 22,20% 10,27% 36 PAULISTAS 22.097,00 2.225,96 1.170,30 10,07% 5,30% 37 PEÇANHA 99.605,00 14.700,69 8.983,33 14,76% 9,02% 38 PERIQUITO 22.766,00 6.937,87 3.555,21 30,47% 15,62% 39 PINGO-D'AGUA 6.685,00 1.816,87 1.062,06 27,18% 15,89% 40 RIO PIRACICABA 37.317,00 595,75 285,37 1,60% 0,76% 41 RIO VERMELHO 98.620,00 3.003,99 608,84 3,05% 0,62% 42 SABINOPOLIS 91.949,00 15.165,40 8.067,46 16,49% 8,77% 43 SANTA BARBARA 68.471,00 9.444,90 5.552,95 13,79% 8,11% 44 SANTA MARIA DE ITABIRA 59.981,00 5.737,28 2.584,21 9,57% 4,31% 45 SANTANA DO PARAISO 27.527,00 10.627,03 6.105,36 38,61% 22,18% 46 SANTO ANTONIO DO ITAMBE 30.497,00 2.716,85 641,17 8,91% 2,10% 47 SAO DOMINGOS DO PRATA 74.637,00 3.682,98 2.014,99 4,93% 2,70% 48 SAO GONCALO DO RIO ABAIXO 36.475,00 7.919,47 3.960,34 21,71% 10,86% 49 SAO JOAO EVANGELISTA 47.829,00 4.524,16 2.781,04 9,46% 5,81% 50 SARDOA 14.179,00 1.277,90 699,35 9,01% 4,93% 51 SEM PEIXE 17.621,00 167,81 66,79 0,95% 0,38% 52 SENHORA DO PORTO 38.220,00 203,56 75,08 0,53% 0,20% 53 VIRGINOPOLIS 44.002,00 4.426,74 2.754,11 10,06% 6,26% 54 VIRGOLANDIA 28.197,00 362,59 184,26 1,29% 0,65% 2.664.255,00 253.665,84 131.032,11

CENIBRA manages 253,666 hectares of land, out Others 7% of which 249.288,4 hectares are covered by the (roads, firebreaks, constructions, etc.) certification scope, corresponding to more than 98% of land certified for forest stewardship. Re- sponsible forest stewardship practices follow the same pattern in all the company’s properties. Eucalyptus plantation 51% 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 Preserva- tion among the plantation areas, as can be seen in Native forests 42% (Legal Reserve and Permanent the following Figure. Preservation areas)

Figure 2: Cenibra land occupation breakdown

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

LAND ASSETS POLICY • Adding value to the land and applying a land CENIBRA acknowledges the management of its ru- management approach compatible with the ral and urban properties as a basis for the Company’s region in which the Company operates, with sustainable growth in line with the development of an aim to support regional development in a the regions where it operates, while maintaining a smooth, long-lasting way. focus on the legal, social, environmental, economi- • Protecting and developing the natural resour- c-financial and logistic aspects, under the following ces, while ensuring the availability of such re- main guidelines and commitments: sources for the present and future generations.

• Ensuring the ownership and possession of its real estate through the corresponding registra- EFFECTIVENESS/ CREATION DATE tion, certification, and reporting of such assets REVISION DATE July 09, 2015 in compliance with the law and other applicab- July 09, 2015 le requirements. • Promoting the management of land assets on MANAGEMENT REVISION the basis of current technological, environmen- MEETING R-0 tal, social, and economic opportunities and 1205ª- 09/07/15 demands in connection with the Company’s goals.

The acquisition of new land means choosing names for the new plantation projects. For this purpose, the company has established criteria to preserve the socio-cultural and geo-referential identity of neighboring communities and mitigate the social impact of eucalyptus plantations in terms of land- scape change and monoculture. Accordingly, the traditional name of the property should prefera- bly 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 desig- nation, aimed at preserving of local socio-cultural and geo-referential identity.

Public Summary of the Forest Stewardship Plan 9 PURPOSE OF FOREST STEW- sustainability aspects of any forestation project. Moreover, Cenibra’s forest stewardship also: ARDSHIP • Protects and preserves the local vegetation and The Forest Stewardship Plan prepared by Celulose wildlife; Nipo-Brasileira S. A. - CENIBRA S.A. is a tool whose • Generates direct and indirect jobs in the region; purpose is to demonstrate and provide stakehold- • Develops local businesses and service providers ers with evidence of the aspects taken into consid- in the municipalities in which the company operation to ensure forestry production sustainability erates; and short-, medium-, and long-term planning in- • Promotes the relationship with communities terrelations, in addition to continuously supplying and stakeholders. 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 This version was updated in 2019. The 2018 data- use of natural resources and economic and social base was taken as a reference for this publication.

10 Public Summary of the Forest Stewardship Plan FOREST MANAGEMENT

WOOD PRODUCTION PROCESS

In 2018, the wood supply to the industrial plant was split as follows: 82.72% from the Company’s own land and 17.28% purchased from farmers in the marketplace.

Table 01 below shows forestry and harvesting figures relative to Cenibra’s own land.

Table 2: Forestry and harvesting output

VOLUMES m³ Harvested wood volume 4.370.081 Remaining volume ¹ 22.777.167

AREAS ha % Overall area 123.555 100% actually planted Harvested area 16.018 13% Planted area 14.567 12% Total seedlings 13.798.371 produced ²

SOURCE: Base year 2016. REMARK: 1 - Volume projected for 7years; forest from 0 to 2 years of age excluded 2 - Seedlings shipped by the Company’s Seedling Nursery in 2018

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.

Public Summary of the Forest Stewardship Plan 11 Table 3 shows wood output figures relative to company’s internal and external factors and their plantations under the forestation incentive program expected development. The strategic plan’s objec- for farmers in 2018. tive 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 competi- Table 3: Output under forestation incentive programs tiveness.

OUTPUT UNDER FORESTATION INCENTIVE PROGRAMS Long-term Planning (21 years) AREAS Taking the Strategic Planning for pulp production ha % as a basis, CENIBRA establishes the respective long- Harvested area ¹ 2.556,07 11% term premises (21-year timeframe), such as wood Area of growing production, percentage of own wood supply, per- 20.421,98 89% forests centage of third party wood supply (forestation incentive program and purchase in the marketplace), Total area 22.978,05 100% definition of minimum standing wood inventory, and land acquisition, demobilization, and replace- VOLUMES ment. Harvested volume ¹ 808.449 m³ The Wood Supply Plan stipulates the forest product SOURCE: Base year 2018. flow and age, including the corresponding reve- REMARK: nues and costs for a given planning timeframe. 1 - Delivered up to December 31, 2018 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, STRATEGIC PLAN topographic characterization of the population, productivity levels, technological gains, related Strategic Planning is a process that sets objectives costs and revenues, and stewardship alternatives. for the selection of projects and/or action programs and their implementation, taking into account the

Planning Time Frame »» The planning horizon 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.

12 Public Summary of the Forest Stewardship Plan 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 the restraints related to infrastructure, harvesting, and wood transportation in the different seasons (dry or rainy season). The personnel assignment sequenc- es 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.

Operational Planning – Short Term (18 months)

The operational planning objective consists of se- lecting the projects to be included in the physical budget for harvesting, transportation, and forestry activities, following a cutting sequence that con- templates 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 with cooperation by the Har- TECHNICAL, ECONOMIC, ENVIRONMEN- vesting, Logistics, and Forestry Departments. In case TAL, AND SOCIAL PLANNING - TEESP of social or environmental impacts, or if there are unforeseen legal constraints (for instance, delays in The TEESP is worked out in a multidisciplinary ap- licensing processes), the sequence of forestation proach by the operational Infrastructure, Harvest- projects to be harvested is changed to minimize ing, Logistics, and Forestry areas, as well as by the such impacts. Feedback into tactical planning is following support areas: Planning, Environment, generated by such changes. Social, and Work Safety. The core goal is to diag- nose and propose preventive, corrective, mitiga- The selected projects must be among those includ- tion, and improvement actions during the forest ed in the Medium-Term Tactical Planning. The tools stewardship planning and implementation stages. used in this planning process are the STPS (Short- The use of this tool ensures that the quality and Term Planning Simulator), AHP (Annual Harvesting economic principles and the respect for the envi- Planning), and ASP (Annual Forestry Planning). ronment and neighboring communities are taken into consideration when planning the forest implementation, reformation, and harvesting activities.

Public Summary of the Forest Stewardship Plan 13 The TEESP is conducted as follows:

1. Preliminary TEESP: This planning aims at sup- Occupational health and safe- porting the land purchase process, and focuses ty restrictions: Existence of mi- on the percentages of land use and mechani- crorelief features, steep slopes, zation, productivity of the forest plantations (if old forest tracts, existence of bee- any), and environmental liabilities. hives.

2. TEESP for Forest Implementation/Harvesting: This planning step defines the roads and other The entire work is then analyzed and validated by infrastructure, determines the need for envi- the staff in charge of operational, social, occupa- ronmental licensing, identifies the social, safe- tional health and safety, and environment areas. ty, and environmental impacts and aspects, and Changes indicated in the TEESP are incorporated recommends preventive, corrective, mitigation, into the forestry and harvesting microplanning and and improvement actions to be taken during entered into the forest recording system. The TEESP the infrastructure implementation, harvesting, records and monitors changes that have taken transportation, and forestry activities in the for- place in forest stewardship along the forest cycles. est regeneration or reformation stages. The use of the TEESP results in a number of so- After the corresponding scheduling and upon mak- cial and environmental gains for CENIBRA, such as ing the necessary maps available, a field inspection lower road density, with the consequent reduction is conducted by a team made up of supervisors, in earthmoving, less erosion, and reduced soil en- an environmental analyst, an institutional relations trainment into water bodies. Moreover, because analyst, and safety technicians. Relevant aspects the social aspect is properly included in the TEESP, with regard to road location, path rectification, the company improves its relations with the neigh- load flows, interferences in the communities, and boring communities by taking into account the activity risks and hazards are discussed and plotted impacts of the forestry operations on such com- on maps. In addition, restrictions are defined in line munities. The outcomes of such a holistic view of with the company’s Forest Stewardship premises, the forest projects are optimized land use and an as follows: increase in the company’s production areas.

On top of it all, the TEESP is deemed a continu- Technical restrictions: rock ous improvement tool for enhanced land use and outcrops, access constraints, re- planning. strictive slopes, road network planning; SEEDLING PRODUCTION

CENIBRA invested in a new Seedling Nursery to Legal and environmental re- centralize all seedling production activities in one strictions: Need for environ- single facility and ensure the supply of seedlings for mental licenses and permits, the company’s future renewable eucalyptus forests. environmental aspects in con- This is one of the world’s most modern nurseries in nection with Legal Reserve and terms of eucalyptus seedling production by means Permanent Preservation areas, of cloning techniques. areas susceptible to erosion, sites of historic, ecological, cul- With a yearly production capacity of 25 million tural, religious, or archeological seedlings and located just two kilometers from the interest; Company’s Plant, this complex puts together the most innovative and sophisticated technological resources and features a complete infrastructure Social restrictions: Proximity to aimed at controlling production factors such as populated areas, dust generation, temperature, moisture, light, nutrients, and water. visual impact, risk of accidents In addition to these essential factors from the pro- involving road users, water duction standpoint, the Company’s human capital easement;

14 Public Summary of the Forest Stewardship Plan and environment have also been taken into consid- INVENTORY eration in the Nursery design, with improved fertil- izer and water use, including water treatment and Efficient use, conservation, and stewardship of for- reuse. Moreover, the Nursery was ergonomically est resources require knowledge of both quantita- designed to require the least amount of effort from tive and qualitative forest characteristics and per- the workers. manent monitoring of forest productivity (m³/ha/ year). Such knowledge is made possible by means Using its own genetic material, originated from the of forest inventories, which are based on data col- Company’s Genetic Improvement and Clone Devel- lected from a population (samples) to generate opment Program, seedlings are produced in small overall population estimates. tubes filled with vermiculite, carbonized rice bran, and coconut fiber as a substratum. The seedlings are handled and prepared for planting in accor- HARVEST / TRANSPORTATION dance with applicable internal procedures. The entire eucalyptus wood supply is based on the In 2018, 13,798,371 seedlings were produced in shallow cutting system with an average 7-year ro- total, out of which 11,901,297 were planted in tation and the subsequent reformation or regener- CENIBRA’s own lands and 663,872 were provided ation for one more rotation. to farmers under the Forestation Incentive Program. Mechanized harvesting techniques have been adopted in 91% of the company land. Harvesters and forwarders are used in “standard harvest” areas, FORESTRY ACTIVITIES with slopes up to 27º. In the case of areas whose slope ranges from 27º to 35º, harvesters and for- Prior to starting the forestry activities in each forest warders are fitted with a winch system. plantation, a multidisciplinary team prepares the Technical, Economic, Environmental, Social, and The remaining eucalyptus trees harvested through Occupational Health and Safety Planning (TEESP). semi-mechanized harvesting methods answer for During the forestry micro-planning stage, the le- less than 9% of the overall wood harvested by gal reserve and permanent preservation areas are Cenibra and they come almost entirely from areas delimited and any restrictions that could interfere where the wind has broken the trees or areas with with proper stewardship (Implementation, Refor- a steep microrelief. To be able to operate in such ar- mation or Regeneration) of a given tract of land eas, CENIBRA employs a dedicated team that uses are defined. Such restrictions may be of a technical, chain saws for the harvesting operations and TMO operational, or environmental nature. Moreover, winch tractors or forwarders for the transshipping the areas to be mechanized are defined and suit- operations. able genetic materials are recommended in a joint work with the forestry development and research The harvested and transshipped wood is hauled sector, taking into particular consideration the suit- to the industrial plant in Belo Oriente by means of ability of a given clone to the specific environmen- road trains (in the case of harvesting in CENIBRA’s tal conditions and the planting of different clones own land). In the specific case of the Nova Era Re- in continuous areas. gional Unit, transportation takes place by road and rail, i.e., the wood is shipped by truck from the field The forestry activity sequence and intensity depend up to the railway station and thereafter by train up on a number of factors, such as soil type, produc- to the industrial plant. tivity and genetic material of the previous cycle, slope, and edaphic-climatic conditions. For the purposes of chain of custody certification, the origin of the harvested wood is supported by To ensure compliance with the technical recom- the corresponding Wood Transportation Bill (WTB) mendations during the performance of such activ- at any point from the cutting stage up to wood ities, field teams apply the corresponding internal delivery at the Plant. procedure and employees in charge of each operation manage the process by recording every control A origem da madeira colhida, para efeitos de cer- for subsequent decision-making, if necessary. tificação de cadeia de custodia, é garantida em qualquer momento por meio da Nota de Trans- porte de Madeira - NTM, desde a fase de corte até a entrega da madeira na fábrica.

Public Summary of the Forest Stewardship Plan 15 FORESTRY RESEARCH

In addition to its own team made up of specialists from several fields of forestry science, CENI- BRA’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 Re- search areas are described in the subsequent items:

16 Public Summary of the Forest Stewardship Plan GENETIC IMPROVEMENT furamid ant killing agents. In the lowland areas of Belo Oriente and Ipaba, leaf-cutting ants are sys- The basis of this important forest engineering area tematically controlled up to the second year after of CENIBRA’s research department is primarily ge- planting. In the case of plantations older than 2 and netics. It is, indeed, an area of knowledge that de- 3 years, leaf-cutting ants are previously monitored mands integration among and the application of by means of statistic models, which determine different fields of Forestry Engineering, such as bot- whether it is necessary to adopt control measures. any, taxonomy, genetics, cytology, phytopatholo- gy, entomology, molecular biology, physiology, and The Company worked out an Agrochemicals Use statistics. If the target is to select and recommend Optimization Plan, which provides guidelines for for commercial plantation trees that provide the conducting and optimizing the Integrated Plague, Dis- highest cellulose contents and allow easy cellulose ease and Shrub Competition Management. This Plan extraction by the industry, knowledge and experi- is available at the Research, Control and Planning De- ence in the field of wood technology are mandato- partment’s Research and Development sector. ry for conducting a genetic improvement program. SOIL, NOURISHMENT, AND FOREST This area answers for the definition of the genetic STEWARDSHIP material that delivers the highest yield, with significant influence on forest productivity, wood har- At CENIBRA, the edaphic production factor rep- vesting and transportation processes, and cellulose resents a distinctive feature that can either improve extraction at the industrial plant. the company’s competitive edge as a result of the eucalyptus’ remarkable potential of response to fertilizers, in association with the physical charac- FOREST PLAGUE CONTROL AND STEW- teristics of these soils, which are highly favorable ARDSHIP to forest cultivation, or lead to loss of competitive potential due to the high susceptibility to both Na CENIBRA, em virtude de características ambi- chemical and physical degradation. Therefore, suit- enDue to the region’s environmental features and able soil handling is of fundamental importance for the forest stewardship model adopted by CENIBRA, proper eucalyptus plantation productivity. there has been no occurrence of forest plagues that could bring significant economic losses, except for In its endeavor to find ways to preserve this resource leaf-cutting ants and the eucalyptus bronze bug. (with satisfactory quality), CENIBRA has developed Maintaining the forest plague population below a number of works in the soil and forest steward- the economic loss level is of prime importance to ship fields. The activity areas and the corresponding ensure forest productivity. For that purpose, an In- objectives are described below: tegrated Plague Management program has been adopted with an aim to preserve the population Soil Survey and Classification control factors, while taking into account ecological, social, and economic factors. To know the soil characteristics of interest to eucalyptus cultivation with an aim to define man- Sporadic forest plagues are controlled by forest agement units. One management unit is made monitors, who help detect insect infestations, in up by grouping homogenous areas in terms of addition to protecting the Company’s properties. climate, soil, and relief; Under this approach, any insect infestation found is monitored up to its natural extinction. Alterna- Fertility and Nutrition tively, if necessary, prophylactic measures are taken when infestation starts to cause economic damage. To correct and maintain soil fertility while minimiz- In this case, prophylactic measures include biologi- ing nutritional shortcomings that could harm euca- cal products, manual collection and, as a last resort, lyptus growth; the use of chemical insecticide duly registered with the supervisory agencies. Water and Soil Conservation

Leaf-cutting ants are a permanent plague. During To define measures aimed at preserving the soil the first year after planting, the control is a system- and increasing the amount of water available in the atic activity of trained teams using granulated sul- soil and produced in eucalyptus plantation areas;

Public Summary of the Forest Stewardship Plan 17 Use of Process-based Models for Forest Productivity Estimate The soil must be used in such a way Understanding and modeling of all processes in- so as to sustain the biological pro- volved in the forestry activity, and simulation of ductivity of planted eucalyptus fo- effects of climatic and edaphic variations on the rests with minimum impact on its 1 functions related to the maintenan- eucalyptus growth rate; ce of its ecosystem’s environmental Climatology quality;

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

Regeneration management Activities in connection with the Forestry Process (infrastructure, fo- To develop management techniques that enable restry, harvest, and transportation) the reestablishment of the forest by regeneration; must be carried out with the least 2 possible impact on the environ- Harvest residues management mental and productive functions of soil; 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. The company must work out a Therefore, the works developed in the above areas continuous monitoring system and aim at enhancing the site production capacity while define indicators to be used in the retaining its quality, thus providing CENIBRA with a diagnosis of soil quality (as far as the sustainable wood production process. 3 soil’s environmental and productive functions are concerned) and water quality and quantity in the drainage CENIBRA’S SOIL AND WATER basins within the company’s land. 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:

18 Public Summary of the Forest Stewardship Plan FOREST FOREST FIRE PREVENTION PROTECTION AND CONTROL

In 2014, a Remote Surveillance system was imple- CENIBRA has a Forest Fire Prevention and Control mented on a trial basis in the region of Belo Ori- system involving the use of techniques and resourc- ente. In 2016, this system started regular operation es to maximize efficiency. It constantly incorporates in all of CENIBRAS’ regional units. It consists of vid- new techniques with a view to reduce the occur- eo cameras installed in fire surveillance towers and rence of forest fires that could damage the Compa- remotely operated from a round-the-clock central ny’s ecological heritage and forest assets. control room at the industrial plant in Belo Oriente. The introduction of this monitoring system resulted This system gives priority to preventive actions, in greater efficiency in detecting fire outbreaks, on and the entire work is carried out by integrating top of significantly improving the safety and health the efforts of the Company’s technical, operational, conditions of the system operators. and administrative sectors. The lines of action are as follows:

Public Summary of the Forest Stewardship Plan 19 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

Occurrences in and general aspects of the Company’s land are recorded on a permanent basis for determining the places subject to higher forest fire risks.

Maintenance of firebreaks

Special attention is given to guidance relative to implementation and maintenance of firebreaks to prevent 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.

20 Public Summary of the Forest Stewardship Plan Forest Fire Brigades

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

Dedicated Fire Control Equipment

Dedicated fire control equipment and tool boxes are kept in strategic, pre-established places, known by the employees. Such material includes backpack pumps, hoes, shovels, sickles, fire dampers, lights, and other items required to equip brigade members and employees. In case of larger fires, tank trucks, tractors, chainsaws, and other auxiliary equipment are also employed.

Climatologic Stations

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 Com- pany 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.

Public Summary of the Forest Stewardship Plan 21 PROPERTY PROTECTION AND COMMUNITY ACCESS TO THE COMPANY’S LAND

CENIBRA monitors its assets and lands through a tension. This is essential information when allocat- round-the-clock electronic monitoring system. This ing the required firefighting equipment and teams system is equipped with several long-range video to ensure a safer, more efficient fire control. cameras installed in external and internal areas. Another way to monitor company assets is through This is a high-tech resource for real-time monitor- forest observers. These are employees in charge of ing of large land extensions in a safe, reliable way. in-situ monitoring, covering all areas of the Com- All images and controls are recorded and filed. pany.

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 ex-

22 Public Summary of the Forest Stewardship Plan ENVIRONMENTAL MANAGEMENT

ENVIRONMENT

For acknowledging in its Integrated Management Monitoring guidelines: System Policy that sustainable development is one of the foundations of its wood and pulp produc- Promoting studies and investigations to tion activities, CENIBRA develops a number of identify impact trends on wildlife, vege- actions aimed at protecting the existing natural tation, and water as a result of forestry resources in its land, as well as enhancing environ- activities and providing information and mental awareness among its employees and the 1 knowledge to support both preventive communities. and mitigating measures;

By adopting operating practices based on procedures derived from ISO 9001 and ISO 14001 and Mapping and classifying sites of rele- an extensive natural resource improvement and vant environmental, historical, archeo- monitoring program, the Company prevents and logical, and cultural interest located on mitigates environmental impacts arising out of its 2 the Company’s land. Promoting environ- activities, in addition to protecting the natural heri- mental liability recovery; tage within its permanent preservation and reserve areas, which correspond to approximately 40% of Promoting partnerships with research the company’s overall land area. institutions, universities, and NGOs to add to the knowledge base concerning To prepare and implement specific projects for bio- 3 the ecosystems on the Company’s land. diversity characterization, natural resource stewardship, monitoring, institutional relations with These programs’ objectives are to record and eval- communities, and environmental education, the uate the results of any natural or induced changes Company has set up a specific department and and phenomena by monitoring the evolution of personnel to deal with these matters. The subse- resources in CENIBRA’s Forest Stewardship Units quent paragraphs describe this department’s lines and their areas of influence. For that purpose, of action in connection with the forestry process indicators are identified and used as a means to and respective guidelines intended to ensure the detect changes in the environmental direction and company sustainability, while interacting with all provide input for preparing and continuously im- external interfaces and economic segments, in- proving CENIBRA’s forest stewardship system. A corporating environmental variables into its entire summary of main monitoring results is presented production chain and promoting a harmonious re- in the following pages. lationship with the environment.

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.

Public Summary of the Forest Stewardship Plan 23 VEGETATION

Keeping preserved areas in good conservation tive, showing that the areas were and are going condition is of paramount importance for CENI- through an evolution process toward increasing BRA. The company has implemented a program richness and biodiversity. Another consequence is of environmental monitoring of native vegetation climate improvement through CO2 capture from areas, which, on top of producing a thorough en- the atmosphere. vironmental change diagnosis, is also intended to provide input for the improvement of planted After the second stage of a field survey in 2007, forest stewardship techniques. The first forest in- the collected data provided input to four master’s ventories were carried out in 1997 to assess the degree theses in the Federal University of Viçosa’s fragmentation and conservation conditions of pre- post graduate programs. served areas. Since then, such studies have been conducted by the Forest Investigation Society, an After the 2017 sampling campaign, vegetation entity linked to the Federal University of Viçosa’s studies were adapted to the updated official list of Forest Investigation Society/Forest Engineering De- vegetal species identification. The density calcula- partment (CENIBRA, 2018). tion method was also adjusted to consider the number of stems instead of the number of individuals. Continuous environmental monitoring in four regions in which the Company operates (Cocais, Ip- Richness aba, and Guanhães) was implemented in 2002 to study their biodiversity. Permanent tracts of land Forests at Ipaba (Forest 1 and Forest 2) and Cocais were selected from these areas for study; surveys areas showed a reduction in the number of species were conducted in 2002, 2007, 2012, and 2017 in the initial (2002) and final (2017) monitoring pe- and the following data were gathered: biomass riods. Such reduction was also seen in every project volume, species identification, diversity rates, and in the last monitoring period (2012 – 2017). Not- others. withstanding the decline in the number of species, the environmental preservation areas still feature Results from 2005 were used to evaluate the dy- high richness in terms of forest species. namics of the surveyed woods, when it was found out that all conservation indicators were posi-

Table 4: Species richness in four monitoring projects at environmental preservation areas

SURVEYED AREA / 2002 2007 2012 2017 YEAR Guanhães 206 217 215 210 Ipaba – Forest 1 141 143 145 138 Ipaba – Forest 2 113 116 112 106 Cocais 223 236 237 222 Fonte: Ano Base 2018. Observação: 1 - Entregue até 31/12/2018

24 Public Summary of the Forest Stewardship Plan Rare and threatened species Rare 6

Environmental protection areas are important refuges for rare and threatened species. Taking the Minas Gerais inventory classification (Oliveira Extremely Rare 12 Filho and Scolforo, 2008) as a basis, 6 species were identified as rare, 20 as very rare, and 12 as extremely rare. Very Rare 20

Figure 3: Rare species found in environmental preservation areas, according to the Minas Gerais inventory classification

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).

Endangered 3

Vulnerable 7

Figure 4: Threatened species found in environmental preservation areas according to the Red Book of Brazilian Flora.

Table 5: 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 EM: Endangered. Source: Martinelli and Moraes (2013).

Public Summary of the Forest Stewardship Plan 25 Diversity Density

The analysis of diversity showed that environmental Density (stems ha-1) decreased in Ipaba (Forest 1 protection areas present great species richness as- and Forest 2) and increased in Guanhães and Co- sociated with a uniform distribution of individuals cais in the period from 2002 to 2017. It declined among such species. 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.

Tabela 6: Density (stems ha-1) at four monitoring projects in environmental preservation areas

SURVEYED AREA / 2002 2007 2012 2017 YEAR Guanhães 1942,00 2045,00 2069,00 1972,00 Ipaba – Forest 1 1720,00 1823,75 1791,25 1693,75 Ipaba – Forest 2 1803,33 1866,67 1870,00 1746,67 Cocais 1538,00 1625,00 1648,33 1630,00

Dominance

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

Table 7: Dominance (m2 ha-1) at four monitoring projects in environmental preservation areas

SURVEYED AREA / 2002 2007 2012 2017 YEAR Guanhães 16,45 18,66 20,85 20,12 Ipaba – Forest 1 14,98 16,50 16,83 16,79 Ipaba – Forest 2 22,94 25,48 27,00 26,08 Cocais 20,24 22,63 24,11 24,92

26 Public Summary of the Forest Stewardship Plan Volume and Annual Increment

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

Figure 5: Volume (m3 ha-1) at four monitoring projects in environmental preservation areas

20 Guanhães

Ipaba - Forest 1

Ipaba - Forest 2

15 Cocais

2002 2007 2012 2017

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.

Table 8: Annual increment in m3 ha-1 year-1, at four monitoring projects in environmental preservation areas

SURVEYED AREA / 2002 - 2007 2007 - 2012 2012 - 2017 YEAR Guanhães 2,49 3,72 -1,99 Ipaba – Forest 1 1,55 2,61 0,23 Ipaba – Forest 2 3,72 4,71 -1,65 Cocais 3,15 1,78 1,04

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.

Public Summary of the Forest Stewardship Plan 27 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.

28 Public Summary of the Forest Stewardship Plan WILDLIFE

Preliminary studies to provide input for wildlife all regions in which the company operates. In view monitoring on CENIBRA land began in 2003 and of the extensive lands, certain representative areas continued until 2004. A reconnaissance campaign were selected in 2010 to be monitored on the basis was carried out on CENIBRA properties over this of long-term indicators. period to define the monitoring points. Such initial studies were followed by systematic monitoring as Table 9 shows the regions and wildlife monitor- of 2005 to identify and characterize the wildlife in ing projects underway. Those projects selected for the study areas. Originally, the target was to cover long-term monitoring are shown in bold letters.

Table 9: 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, Caxambu, Belo Oriente Trevo, Baixada do Cajá, Córrego do Brejo, Água Suja, Tamanduá. Córrego Novo, Lagoa Nova, Lagoa Perdida, Lagoa Piau, Lagoa Ipaba Silvana, Beira Rio, Macedônia, Rio Branco, São Lourenço, Ribeirão do Boi, Cordeiros, Boachá. Ipanema, São José, Córrego dos Machados, Córrego dos Vieira, Cocais Barbosão, 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, Brumadinho, Serra do Pinho, Carlos Hosken, Santa Bárbara Irmãos Fonseca, Cascapau, Agregado, Curral de Pedra, Chapadão, Maravilha. Virginópolis Godinho, Córrego das Almas, Aricanga Cachoeira das Pombas, Três Morros, Aricanga, Quartel, Recreio, Correntinho, Primavera, Corrente Canoa I, Corrente Canoa II, Sabinópolis Babilônia I, Babilônia II, Aeroporto I, Anta, Panorama, Tucano, Sabinópolis II, Amância.

Public Summary of the Forest Stewardship Plan 29 The main objectives of wildlife monitoring are: • Comparing bird and mammal species richness with the results of previous surveys. • Identifying the occurrence of bird and large mammalian species that are endemic, rare, and/or in Considering the monitoring campaigns within all danger of extinction; CENIBRA properties until 2017, 371 bird species and 41 medium and large mammalian species were • Investigating the occurrence of migratory or sea- recorded. Out of this total, 21 bird and 12 mamma- sonal species; lian species are included on official lists of species in danger of extinction. • Providing information about the biology and ecological relationships of monitored species; The Figure below shows the richness growth curve of bird species recorded within CENIBRA properties • Investigating the bird and mammalian communi- since the beginning of the wildlife monitoring pro- ty structures as a function of the diet classes in the gram in 2003. monitored areas;

• Generating useful information to be given to the communities to encourage wildlife and environmental protection;

Figure 6: Number (richness) of bird species recorded in CENIBRA’s lands.

BIRD - Total number of species

371 360

311 311 311 300 305 310 285 250 250 255 255 240

154

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Figure 7 shows the growth curve of medium and large mammalian species found on CENIBRA properties from 2003 through 2017.

MAMMALS - Riquea Acumulada

41 39 39 39 40 40 40 40 40 36 36 36 36 36 34

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017

Figure 7: Number (richness) of mammalian species recorded in CENIBRA’s land.

30 Public Summary of the Forest Stewardship Plan Tables 10 and 11 list the bird and medium and large mammalian species currently in danger of extinction on CENIBRA properties.

Table 10: Birds in danger of extinction recorded in CENIBRA land.

SPECIES MG MMA IUCN Tinamus solitarius Tinamou EN NT NT Crypturellus 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 tyrannus Black hawk-eagle EN NT 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 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 N VU VU Sporophila angolensis Chestnut-bellied seed-finch CR Amaurospiza moesta Blackish-blue seedeater VU Cyanoloxia brisonii Ultramarine Grosbeak NT

Public Summary of the Forest Stewardship Plan 31 Table 11: Mammals in danger of extinction recorded in CENIBRA land.

COPAM MMA IUCN ENDANGERED MAMMALS 2010 2014 2016 Callithrix flaviceps Buffy-headed marmoset EN EN EN Alouatta guariba clamitans Brown howling monkey VU VU Chrysocyon brachyurus Maned wolf VU VU VU Lontra longicaudis Otter VU Leopardus pardalis Ocelot VU Leopardus tigrinus Tiger cat VU EN VU Leopardus wiedii Margay EN VU 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

The following conclusions can be drawn from the wildlife monitoring carried out to date:

• CENIBRA properties feature great richness of birds and medium and large mammals. The 371 bird species and 41 medium and large non-flying terrestrial mammals recorded so far translate the great wildlife potential of surveyed regions.

• 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 shel- ter, nesting, breeding, and watering contribute to the abundance of bird and mammal species.

• Endemic, endangered, vulnerable, and migratory species continue to be observed and monitored in the surveyed regions.

32 Public Summary of the Forest Stewardship Plan WATER RESOURCES

Assessing and monitoring water quality is vital for eucalyptus plantations, and native woods. An inno- the environmental, social, and economic sustain- vative approach in terms of duration and number ability of any forest-based company and the human of environments studied in Brazil, this long-term populations that rely on such water resources. Loss survey aimed at quantitatively and qualitatively of soil fertility is an increasingly concerning issue characterizing water bodies under the influence of and is directly linked to the water issue. Soil use different land uses and comparing them. After the approaches that ensure freshwater ecosystem con- first five years, more than 33,000 pieces of phys- servation play a major role in the improvement of ical, chemical, biological, and ecological data had the general water supply conditions. been collected by undergraduate students in Envi- ronmental and Sanitation Engineering and Biolog- With this in mind, UNILESTE/MG (University Cen- ical Science under the guidance of the University’s ter East Minas Gerais) and CENIBRA entered into a professors. Moreover, this partnership provided partnership agreement in June 2001 to determine support for the installation of an Environmental the water quality and quantity in the middle course Research Laboratory at Unileste (MG) in Coronel of Doce River by comparing the ecological condi- Fabriciano. tions of water streams and ponds in pasture lands,

Public Summary of the Forest Stewardship Plan 33 For checking and control purposes, ten creeks and the water streams’ slope, percentage of eucalyptus five ponds were selected in the region. They drain plantation in the studied basins, percentage of ar- the waters of: eas allocated to conservation, road density in the studied basins, watershed land slope classes, basin • Areas with native woods: Vai-e-Vem creek, altitude, and impact of eucalyptus-related opera- Environmental Preservation Areas of Jaguaraçu, tions on water streams, along with other aspects. Cascatinha, Pedra Pond, and Carioca Pond. The qualitative and quantitative comparison of • Areas with eucalyptus plantations: Maced- water drained under such different conditions will inha Project, Rubro-negro Project, Córrego Grande indicate which operations and stewardship intensi- Project, Batinga Project, Rio Branco Project, Cristal ties have the greatest impact on water resources, in Pond Project, and Hortência Pond Project. addition to providing input for developing actions intended to mitigate or eliminate them. • Pasture areas: São Mateus creek, P1 creek, and Redonda Pond. This monitoring is being carried out on a monthly basis and is currently covering two drainage basins This study made very clear one of the most signifi- where other quantitative parameters are already cant characteristics of eucalyptus plantation as prac- monitored, such as: rainfall, water stream flow, and ticed by CENIBRA. It demonstrated that the quality groundwater level. Therefore, such quantitative and quantity of waters drained in eucalyptus plant- data will be taken into account when reviewing the ed areas are higher than those of waters drained in biomonitoring information gathered by UNILESTE’s pasture areas and quite similar to those of waters Environmental Engineering Department, which will drained in areas entirely covered with native vege- provide better input and enable more complex anal- tation. ysis of monitoring results. The work involves monitoring of environmental variables of lotic aquatic Once it was understood that this question had been ecosystems at CENIBRA’s eucalyptus plantations in satisfactorily addressed, CENIBRA adopted a new the Doce River basin. Table 12 below shows the monitoring approach as of 2010. Studies were start- chemical variables taken into consideration and re- ed to provide input to improve forest stewardship. spective reference methods:

The new study cycle will compare drained waters under different stewardship conditions, such as

ANALYZED VARIABLE REFERENCE METHOD Standard Methods WEF, AWWA, Total alkalinity (mg.L-1 APHA, 21st edition, 2005, 2320 B Standard Methods WEF, AWWA, Chlorophyll -a (μg.L-1) APHA, 21st edition, 2005, 10200 H Electric conductivity (μs.cm -1) Multi-parameter probe HANNA 9858 Spectrophotometer MERCK Apparent color (mg Pt.L-1) Spectroquant, method 032 N total (mg.L-1) MERCK, 1.14537.0001 N-ammoniac (mg.L-1) MERCK, 1.14752.0001 NO2- (mg.L-1) MERCK, 1.73009.0001

Table 12: Physical and chemical variables analyzed in water samples

34 Public Summary of the Forest Stewardship Plan ANALYZED VARIABLE REFERENCE METHOD NO3- (mg.L-1) MERCK, 1.14563.0001 Dissolved oxygen (mg.L-1) Multi-parameter probe HANNA 9858 MERCK 1.14848.0001 P-total (mg.L-1) Standard Methods WEF, AWWA, APHA, 21st edition, 2005, 4500 E Soluble reactive P - PO4 3- (mg.L-1) MERCK, 1.14848.0001 pH Multi-parameter probe HANNA 9858 Total Dissolved Solids (mg.L-1) Multi-parameter probe HANNA 9858 Standard Methods WEF, AWWA, Total Suspended Solids (mg.L-1) APHA, 21st edition, 2005, 2540 D Temperature (°C) Multi-parameter probe HANNA 9858 Spectrophotometer MERCK Turbidity (UNT) Spectroquant, method 077

It was not possible to systematically observe negative impacts resulting from eucalyptus stewardship activities on water courses evaluated from August 2010 through December 2017. It is understood that environmental factors such as rainfall and physical and chemical characteristics of water 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 elimi- nating pollutants that could be carried/leached by rainwater.

Monitoring campaigns in the Baratinha, Córrego Grande 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 Regu- latory Decision COPAM/CERH-MG 01/2008) were detected. This is further reinforced by the presence and representativeness of species of pollution-sen- sitive benthic macro-invertebrates, such as those of Limnephilidae and Helichopsychidae families (order Trichoptera) and Leptophlebiidae family (order Ephemeroptera), which are good water quality indicators.

Public Summary of the Forest Stewardship Plan 35 HIGH CONSERVATION VALUE AREAS – HCVA

CENIBRA land is located within the Atlantic Forest CENIBRA’s natural vegetation areas are deemed domain, whose remnants both inland and at the very important, and the Company treats them seashore are subject to special protection policies accordingly, particularly in terms of their protection according to Brazilian legislation. and improvement.

The Atlantic Forest is considered a major priority in Nevertheless, there are certain specific areas terms of biodiversity conservation in the Americas. characterized by special attributes that grant them It is in a critical situation and its coverage area has a status of especially important for the effective been reduced to approximately 7.6% of its original protection of biodiversity in the Atlantic Forest area, which totaled about 1,306,421 km2. remnants.

Spread over 17 Brazilian states, this biome consists Such attributes confer upon these areas the status of of several quite diversified phytophysiognomies “High Conservation Value Areas” (HCVA), as is the determined by the proximity to the coast, relief, case of the Private Natural Heritage Reserve (PNHR) soil type, and rainfall regimes. Such characteristics Macedonia Farm. In such areas, in addition to the gave rise to the development of a wealthy biotic regular monitoring conducted by the company, complex of a forestal nature. In spite of considerable specific monitoring activities are carried out with devastation, the Atlantic Forest still preserves a an aim to ensure the maintenance or improvement significant portion of Brazil’s biological diversity, of the identified attributes. with high levels of endemism. In this context,

36 Public Summary of the Forest Stewardship Plan HCVA PNHR MACEDONIA FARM

LOCATION: The HCVA PNHR Macedonia Farm has HYDROGRAPHY: Ipaba is located in the Doce 753.14 ha in total and is located in the municipali- River watershed, an area whose biodiversity con- ty of Ipaba, eastern Minas Gerais, on the left bank servation is top priority in the state of Minas Ge- of Doce River. Its central coordinates are UTM X= rais. The Doce River borders the PNHR Macedonia 7.857.000 and Y= 774.000. Farm, which also contains smaller watercourses and wetlands.

WILDLIFE: Faunal studies conducted at PNHR Ma- cedonia Farm have recorded 244 bird species, which account for 31% of the species already recor- VEGETATION: Macedonia Farm is located in the ded in the state of Minas Gerais, and 31 medium Atlantic Forest domain, which is represented in the and large mammal species. region by the typology named Seasonal Submon- tane Semi-Deciduous Forest. The forest vegetation in the HCVA is currently in an advanced stage of secondary regeneration, with areas in excellent conservation condition and very similar to the region’s primary vegetation.

THREATS: Main threats are hunting and forest fires.

Public Summary of the Forest Stewardship Plan 37 MAIN ATTRIBUTES THAT CHARACTERIZE CONSERVATION MEASURES: Protection mea- MACEDONIA FARM AS AN HCVA sures for High Conservation Value Areas include:

• The PNHR Macedonia Farm has developed a pi- • Mosaic forest stewardship, with tracts of dif- oneering Project for Reintroduction of Birds in ferent ages, to ensure lower-impact steward- Danger of Extinction for the past 29 years: the ship operations; Mutum Project. A number of bird species have been released under the project, including the • Vehicle traffic restrictions in areas adjacent to red-billed curassow (Crax blumembachii), soli- the HCVA Macedonia Farm; tary tinamou (Tinamus solitarius), spot-winged wood-quail (Odontophorus capueira), yellow- • Enhanced protection against illegal hunting legged tinamou (Crytpturellus n. noctivagus), and fishing, and forest fires, including horse brown tinamou (Crytpturellus obsoletus), patrol; dusky-legged guan (Penelope obscura), and • Environmental education campaigns and proj- Black-fronted piping guan (Aburria jacutinga). ects involving local schools and using endan- • Presence of nine bird species in danger of ex- gered species as a protection icon; tinction, namely: solitary tinamou (Tinamus • Communication with neighbors and environ- solitarius), yellow-legged tinamou (Crytpturel- mental education to forest workers; lus n. noctivagus), black-fronted piping guan (Aburria jacutinga), red-billed curassow (Crax • Construction and maintenance of firebreaks at blumembachii), spot-winged wood-quail property boundaries; (Odontophorus capueira), mealy Amazon (Am- azona farinosa), vinaceous Amazon (Amazona • Specific measures stipulated in the operational vinacea), buffy-fronted seedeater (Sporophila procedures aiming to enhance conservation or frontalis), and blackish-blue seedeater (Amau- minimize environmental impacts, such as tak- rospiza moesta). ing care to prevent eucalyptus trees from fall- ing over native vegetation, clearance between • Macedonia Farm is the only place in Minas wood piles to allow for wildlife mobility. Gerais where populations of red-billed curassow (Crax blumembachii) and black-fronted piping guan (Aburria jacutinga) are found in the wild.

• Presence of seven mammal species in danger of extinction, namely: buffy-headed marmoset (Callithrix flaviceps), ocelot (Leopardus pardalis), cougar (Puma concolor), margay (Leopar- dus wiedii), otter (Lontra longicaudis), eyra cat (Puma yagouaroundi) and collared peccary (Pe- cari tajacu).

38 Public Summary of the Forest Stewardship Plan MONITORED ITEM: Wildlife in danger of extinction MONITORING FREQUENCY: Yearly

The effectiveness of such measures is assessed Regarding mammalian fauna, 31 species of medi- through yearly environmental monitoring results. um and large mammals have been registered in the The corresponding results make it possible to HCVA Macedonia Farm. The figure below shows check how effective the adopted measures have the evolution of mammalian species richness for been in maintaining or enhancing the biodiversity the HCVA Macedonia Farm over the monitoring conservation attributes of the monitored area. period. Regarding endangered mammals, seven species were recorded in the HCVA area, namely: Wildlife inventory and monitoring have been con- Buffy-headed marmoset (Callithrix flaviceps), otter ducted at HCVA PNHR Macedonia Farm on a sea- (Lontra longicaudis), ocelot (Leopardus pardalis), sonable basis since October 2004. Over this peri- margay (Leopardus wiedii), eyra cat (Puma yagoua- od, campaigns were carried out in the direct and roundi), cougar (puma concolor), and collared pec- indirect area of influence of the HCVA, covering cary (Pecari tajacu). the whole biological cycle of the avifauna, i.e., taking into consideration seasonal factors related to Figures 13 and 14 show the richness of bird and weather stations. mammal species in the region of the HCVA PNHR Macedonia Farm over the monitoring period. A di- To date, such monitoring detected 244 bird spe- agnosis of existing species and a reconnaissance of cies, which account for 31% of the species already sampling areas were conducted in 2003 and 2004. recorded in the state of Minas Gerais. Out of this Systematic monitoring started in 2005. total, 15 species are included in official lists of bird in danger of extinction. These figures express the avifaunistic potential of HCVA Macedonia Farm, where 66% of bird species already recorded in CENIBRA’s lands are found. Such richness also ex- presses the avifaunistic potential of the Doce River basin.

Figura 13: Trilha em mata nativa na RPPN Macedônia

Public Summary of the Forest Stewardship Plan 39 Figure 8 - Growth in the number of bird species in the HCVF PNHR Macedonia Farm and surroundings over the monitoring period.

Number of bird species at PNHR Macedonia Farm

244 214

157 161 147 148 148 150 152 138 140 146 106

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2016 2017

Figure 9 - Growth in the number of mammal species in the HCVF PNHR Macedonia Farm and surroundings over the monitoring period.

Number of mammal species at PNHR Macedonia Farm

31 31 27 27 27 27 28 28 24 24 25 25 25

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2016 2017

The monitoring results, including species richness It was found out that the richness of medium and and composition, and the environmental distribu- large mammalian species at the PNHR Macedonia tion and characterization of birds and mammals in Farm and its vicinity (Ipaba region) has remained the surveyed areas, have led to the conclusion that stable, subject to natural seasonal variations. the surveyed biotopes are in proper conservation condition and favor the maintenance of bird and mammalian species in the region.

40 Public Summary of the Forest Stewardship Plan 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:

• Promoting environmental awareness and sen- sitization of the internal audience involved in the forestry operating activities;

• Preparing and implementing communication processes with an aim to qualify internal multipliers to demonstrate to the external audience how committed the Company is to sustainable development;

• Informing and making managers, coordinators, supervisors, monitors, and outsourced service managers aware of the main subjects inherent to each regional unit concerning wildlife, vegetation, and water resources;

• Establishing corporate mechanisms to inte- grate the Company with its neighbors and participants in the Forestation Incentive Program;

• Promoting 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

• Fostering a closer relationship between CENI- BRA 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.

Public Summary of the Forest Stewardship Plan 41 SOCIAL AND LABOR MANAGEMENT

HUMAN RESOURCES POLICY

Through its Human Resource Policy, CENIBRA pur- sues the best market practices in terms of salaries, benefits, training, and development, comparable RECRUITMENT, SELECTION, to those adopted by companies of similar size and operations. In this sense, the Company’s aim is to AND COMPENSATION attract and retain people that are aware of the challenges posed by professional growth, while of- In its quest for quality personnel, CENIBRA has fering equal recognition and professional develop- adopted the most modern selection methods with ment opportunities. an aim to achieve excellent employee/company interaction. The Human Resources Department’s main guide- line is acting as a transformation agent. It deals the The internal recruitment policy aims to value cur- Company’s Human Resources as a competitive edge rent employees by giving them the opportunity for and turns information into shared knowledge. career progress. When internal recruitment is not feasible, the Company uses its CV database, prio- The Human Resources Department focuses on Poli- rity being given to applicants from the region, as cies and Practices that provide employees with im- well as people with special needs. provement opportunities, integrity, and well-being. CENIBRA’s compensation policy is based on collec- The Corporate Human Resources Planning is a tive bargaining agreements and yearly market rese- dynamic process of human organization manage- arch conducted by the industry players’ Human Re- ment in interaction with the Company’s business sources Group. In addition to fixed remuneration, expectations. The Human Resources area contrib- the Company offers incentive programs linked to utes to the accomplishment of the organizational the achievement of established goals, including objectives as it offers management a tool to attract, Earnings and Profit Sharing. retain, and develop employees, as well as antici- pate their needs, while fostering their motivation, CENIBRA enjoys a friendly relationship with labor so as to provide the organization with the highest unions and generates 4,302 direct jobs and nu- quality levels. merous indirect jobs and services to the benefit of workers and their dependents. The subsequent paragraphs describe the main aspects of the Company’s Human Resources Policy.

42 Public Summary of the Forest Stewardship Plan Tabela 13: Number of employees at CENIBRA, 2018

NUMBER OF AREA GENDER EMPLOYEES MALE 3 DIRECTORS FEMALE 0 MALE 22 MANAGERS FEMALE 0 MALE 62 COORDINATORS/SPECIALISTS FEMALE 11 MALE 78 ADMINISTRATIVE FEMALE 71 MALE 359 INDUSTRIAL OPERATIONS FEMALE 11 MALE 2,348 FORESTRY FEMALE 148 MALE 481 WOOD HARVESTING FEMALE 2 MALE 29 WOOD TRANSPORTATION FEMALE 0 MALE 229 MAINTENANCE FEMALE 9 MALE 304 OTHERS FEMALE 135 TOTAL 4,302

PERSONNEL

The challenges posed by the economic growth in In the case of activities whose personnel are em- Brazil have turned the adoption of technological in- ployed through outsourcing arrangements, the novations in production processes into a mandatory outsourcing contracts are drawn up and managed strategy to ensure society’s sustainable progress. In in such a way so as to ensure compliance with labor this sense, the modernization of the planted forest laws and occupational health and safety require- industry is a natural solution, which has been grad- ments. Compliance with the contractual provisions ually implemented and reaped undeniable benefits. is monitored by the CENIBRA team. Such modernization involves not only infrastructure investments, but also improvements in the human CENIBRA reiterates its permanent commitment to resources management model. compliance with any legislation, regulation, standard, undertaking charter, and codes of good The need for aligning forestry technologies to mar- practice that are of either voluntary or mandatory ket challenges has favored the CENIBRA’s imple- application to the aspects of quality, environment, mentation of a new process for obtaining its raw safety, human rights, ethics, and social responsibil- material. The new process involved an increase in ity in every activity performed by CENIBRA or its the Company’s personnel headcount, including the contractors, as provided for by its “Integrated Man- hiring of a significant portion of the contractors’ agement System Policy”. personnel assigned to forestry activities.

Public Summary of the Forest Stewardship Plan 43 OCCUPATIONAL HEALTH RESULTS

AND SAFETY CENIBRA and its service providers have conducted a number of occupational health and safety initia- CENIBRA and its service contractors adopt the best tives, including training courses, speeches, cam- occupational health and safety management prac- paigns, workshops, safety dialogues, risk and haz- tices with a view to reinforce the safety culture as ard assessment, routine inspections, audits, health an important factor to add value to business. month, and dental assistance, among other events and actions. It makes use of methods fitted to the Through preemptive actions, training, and hazard employees’ understanding, with the ultimate ob- surveys, the Company seeks to protect employees’ jective of enhancing knowledge about the issues health and physical integrity. concerning the workers’ life and the physical integrity and quality of life of everyone involved in forest The following measures in 2018 deserve to be stewardship activities. highlighted: training and refreshment on traveling across steep terrain for employees in forestry activ- Tables 14 and 15 show the number of Work Safe- ities, including safety guidance on carrying manual ty and Occupational Health training courses and cutting tools, “behavioral safety” campaign for em- actions carried out in the company’s forestry area ployees in forest harvesting, basic dental care at the during 2018. 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, daily occupational health and safety dialogues, workplace exercises and work breaks, several actions carried out by Internal Committees for Rural Work Acci- dent Prevention (CIPATR), promotion of the Rural Work Accident Prevention Week in integration with contractors, including speeches 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, employees’ mental and physical health monitoring through the Occupational Health Medical Control Program (PCMSO), including occupational physicals (periodic, change of job, and return to work) and consultation with doctors on health topics and guidance on behavior change and a health- ier life style.

44 Public Summary of the Forest Stewardship Plan Table 14: Occupational Health and Safety Actions

NUMBER OF EVENTS SUBJECT 5 Venomous animals, wildlife, and first aid 69 Dental assistance FSC and CERFLOR Stewardship Audits at Guanhães and Nova Era 1,484 regional units 2 Integrated OSH Audit at service contractors 54 Forest Harvesting Campaign – Behavioral Safety 5 Health Campaigns - Conjunctivitis 9 Health Campaigns – Flu vaccine 27 Yellow May campaign 50 Quit Smoking campaign 45 Safety campaigns 2 Fighting STD/AIDS 6 Fighting Aedes Aegypti mosquito 19 Combat to alcohol, smoking and drugs 32 Signage conservation 1 PPE sheet control and filing 36 Passenger and cargo transportation vehicle information control 36 Hazardous conditions and near miss recording control 36 Blood pressure control 30 Preparation of monthly incident statistics for CIPATR 36 Yellow fever 54 Brazilian spotted fever – Ticks 3 Supply of Exposis repellent 4 Importance of workplace exercises and Blue November 2 Operational Work Safety Indicators 8 Information on RQA, Uso Corneta and Reflection about Safety 3 Traffic is us 7 Guidance on laboratory tests 5 Pink October and Blue November 6 Lecture on Safe Behavior – DEPLA-D 1 Safety Patrol with the Forestry Coordinator and Supervisors 5 Technical Seminar on Toxicology of Triclopyr Herbicide 1 Seminário Técnico Toxicologia Herbicida Triclopyr 2,083 health and safety actions in total

Public Summary of the Forest Stewardship Plan 45 Table 15: Occupational Health and Safety Training

NO. OF TRAINING SUBJECT 12 FSC and CERFLOR chain of custody 100 Corporate Compliance 15 Harassment and Assertive Communication 2 Active Care for Yourself and Others 1 Care when driving tractors near other vehicles 1 Vehicle care and maintenance 882 Daily Occupational Health and Safety Dialogue 26 Traveling across steep terrain 49 Traveling across steep terrain Carrying manual cutting tools 9 Defensive Driving – Unpaved roads 5 Monthly Occupational Health and Safety Dialogue 221 Weekly Occupational Health and Safety Dialogue 2 Enneagram – Discover your potential 11 Portable fire extinguishers 2 Training – Forest Fire Brigade 2 Importance of correct use of safety goggles 3 Beekeeper’s Kit – Use and Care 13 Detecting Occupational Risks and Hazards 5 One Point Lesson – Equipment Access Points 1 One Point Lesson – Testing Emergency Buttons 4 One Point Lesson – Use of Safety Brake 17 One Point Lesson 14 – Loading and unloading positions of Forwarders 1 One Point Lesson 15 - Correct Forwarder Positions 1 One Point Lesson 22 – Forwarder’s Cargo Height Limits 2 One Point Lesson 41 – Correct Operator Reaction 7 One Point Lesson 5 – Use of Cortina 2 One Point Lesson 6 – Use of Service Break 1 Don’t climb on trees 14 NR 01 - Application of service order 13 NR 01 PCA - Hearing conservation program 2 NR 05 - Training of Internal Accident Prevention Committee members 28 NR 05 – Risk Mapping 32 NR 06 - Personal Protection Equipment (PPE) 12 NR 10 - Electricity safety workshop 2 NR 11 - Forest machinery operation safety 1 NR 11/12 – Crane truck operation 5 NR 12 - Chain saw operation safety 12 NR 17 - Ergonomics – Manual handling of loads

46 Public Summary of the Forest Stewardship Plan NO. OF TRAINING SUBJECT 11 NR 26 - Safety signals 133 NR 31 - Herbicide application 23 NR 31 – Harvester work winch implement 1 NR 31 - Herzo Forwarder Winch – Refreshment 45 NR 31 – Practical anchoring of Work Forwarder Winch 46 NR 31 – First aid 1 NR 31 – Safe Tractor Operation - Refreshment 8 NR 31 - Safe Tractor Operation – TMO tools 2 NR 33 - Safety in confined spaces –Workers and watchmen 5 NR 35 - Safety in works at height 3 Robopower tractor operation 4 SADI system operation 2 Delfati Fire Alarm System Operation 3 Hexagon precision system operation 1 Guidance on helmet use 1 Preventive safety guidance on incident involving tractor tire 1 Guidance on Risks and Incidents – Electric Networks 6 P01052 – Use of electronic communication equipment 1,814 health and safety training events in total

Public Summary of the Forest Stewardship Plan 47 enhance their awareness about CENIBRA’s Inte- BENEFITS grated Management System. The objective is to ensure employees are fully aware of the requirements CENIBRA offers its employees and their dependents in terms of environment, quality, and prevention health assistance through a self-managed health of significant environmental impacts, occupation- plan, comprising a comprehensive, highly qualified al health and safety while working at CENIBRA’s assistance network, including hospitals, doctors, premises. dentists, drugstores, optometry, funerals, psychol- ogy, physiotherapy, phonoaudiology, psychiatry, To ensure training effectiveness, integrated audits and alternative medicine. check for contractors’ adherence to CENIBRA procedures and practices. Audits also determine the In addition to health assistance, the Company pro- degree of employee awareness and familiarity with vides supplementary benefits, such as: private pen- the Integrated Management System’s documenta- sion fund, group life insurance, commuting, meals, tion and other elements. education cost reimbursement, daycare allowance, school kits up to high school for employees and their children from 6 to 18 years of age, Christ- mas basket, Christmas gifts for employees’ children SOCIOECONOMIC PROFILE up to 9 years of age, reimbursement of language school costs, and others. OF CENIBRA’S AREA OF INFLUENCE TRAINING, DEVELOPMENT, CENIBRA operates in 54 municipalities located in the Doce River basin and sub-basins of Santo Antô- AND QUALITY OF LIFE nio, Piracicaba, Suaçuí Grande, Caratinga, and Pi- ranga Rivers. Water from the Doce and Piracicaba Rivers is used mainly for industrial applications. A CENIBRA desenvolve programas de formação CENIBRA develops training programs that enable The region where CENIBRA’s eucalyptus forests are career development and support the employee in located has been used since the 1940s for this kind overcoming challenges in a climate of cooperation, of plantation. A great expansion was seen from the always in tune with market trends. In this sense, 1960s onwards due to federal tax incentives grant- CENIBRA adopts far-reaching policies for the quali- ed to this activity. CENIBRA’s land is split into three fication of its staff. regional units, namely Rio Doce, Nova Era, and Guanhães. Land use within the Company’s area Such activities are offered to all employees in ac- of influence is as follows: 54.05% occupied with cordance with their institutional, legal, operational, pasture, 18.46% native forests, 11.42% forestry and development needs, so that the acquired capa- activities, 9.68% either temporary or permanent bilities are applied on the job. agriculture; 6.39% not used or useless. Training is an important tool to speed up learning and improve managerial and technical qualifica- Except for the larger cities, like Ipatinga and Gov- tions and, as a result, it produces both behavioral ernador Valadares, the urban areas, particularly and cultural changes in employees. the districts, do not have suitable infrastructure in terms of sanitation system, health services, educa- To ensure that both current and new employees, tion, and security. Precarious housing conditions either temporary or permanent, as well as trainees, prevail, particularly in town outskirts. Many roads, become aware of the importance of quality, health, especially secondary roads in the countryside, were safety, and environmental protection, monthly built and are maintained by CENIBRA. training is given or internal meetings are held to address these matters from the standpoint of the Retail business is not very active, with low turnover. company’s integrated management policy, guide- Besides CENIBRA and the mining and steel com- lines, and regulations. panies, employment options are municipal public jobs. It is also worth mentioning charcoal produc- Contract managers are responsible for making sure tion, characterized by attractive prices and guar- that contractors’ employees are given training to anteed market. Charcoal is produced from wood

48 Public Summary of the Forest Stewardship Plan wastes that do not meet the applicable parameters shipped through the Vitória–Minas railroad from for pulp production, as well as other wood sources the Costa Lacerda train station in Santa Bárbara, existing in the region. and Drumond train station in Nova Era. This railroad belongs to Vale and conveys mainly ores to The degree of urbanization at the Company’s Re- the region’s steelmakers and for export. gional Units is as follows: in excess of 90% in Belo Oriente region (Rio Doce Regional Unit), 87% in Considering the Company’s position in the context Nova Era Regional Unit, 75% in the region of Ipaba of the Middle Doce River Basin, a mountainous re- (Rio Doce Regional Unit), and 55% in Guanhães gion with original forest coverage, which is naturally Regional Unit. suitable to forest plantation, CENIBRA’s enterprise involves low-impact cultivation and contributes to The regional shortcomings contrast with the large regional growth as it develops and transfers plant- inflow of resources to certain municipalities, par- ed forest technology, besides fostering job and ticularly Ipatinga, Timóteo, and João Monlevade, income generation and bringing revenue into the due to the presence of mining and steelmaking in- country. dustrial 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

Public Summary of the Forest Stewardship Plan 49 50 Public Summary of the Forest Stewardship Plan CENIBRA INSTITUTE CENIBRA’s Integrated Management System Policy 1) Strengthening of the social fabric – promot- sets forth the commitment to permanent dialogue ing community qualification through representa- with customers, suppliers, employees, communi- tive organizations to occupy the discussion spaces ties, and other stakeholders. Communication with and formulate public policies; stakeholders in the forestry field is a corporate task of the Communication, Environment, and Rela- 2) Institutional strengthening – Strengthening tions with Community areas, as well as CENIBRA of administrations, municipal councils, and trade Institute. There is a procedure to deal with com- councils aimed at achieving a more participative munications received (questions, complaints, and democracy and improved services for the popula- requests,) that sets forth the action flow to be ad- tion; opted when responding to them. Specific requests for donations of whatever nature are evaluated by 3) Strengthening of the Local and Regional CENIBRA Institute, which issues an opinion and Economy – Definition and redefinition of the eco- triggers the necessary measures to be taken by the nomic axes, coordination of the main players tak- corresponding internal areas. ing as a benchmark the production chain analysis and organization of networks and strategic allianc- The Company has a comprehensive community es among micro and small entrepreneurs, so that support program covering the 54 municipalities they can play a part in the economy under compet- in which it operates. Such a program is founded itive conditions. on the pursuit of sustainable human development, and creates spaces for discussions and reflections, besides coordinating productive and institutional community organizations through:

Public Summary of the Forest Stewardship Plan 51 Created in 2003, CENIBRA Institute’s purpose is to servation, quality of life, and social equity, in a cle- encourage sustainable development as a process ar commitment to the future and solidarity across of social change and an enhancement opportuni- generations. The Cenibra Institute’s guidelines are ty for communities. It matches, in time and space, as follows: economic efficiency, growth, environmental con-

CENIBRA INSTITUTE’S MISSION

“Promoting 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.”

CENIBRA INSTITUTE’S PRINCIPLES

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

STRATEGY

• Promoting permanent dialogue and keeping 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 interacting with both governmental and non-governmental organizations, particularly within the framework of projects and actions in line with the Institute’s Mission and Principles; • Integrating service and 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; • Identifying and improving synergies, and acting as a catalyzing agent in projects and actions to the benefit of the inhabitants of municipalities located within the company’s area of influence; • Setting up partnerships with both governmental and non-governmental organizations to implement projects and actions with an aim to promote regional development; • Encouraging employees’ voluntary participation in the Institute’s projects and actions.

52 Public Summary of the Forest Stewardship Plan 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

Public Summary of the Forest Stewardship Plan 53 Table 16 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.

Table 16: Social programs promoted by CENIBRA INSTITUTE

NUMBER OF GOALS PROJECT TARGET AUDIENCE PEOPLE ASSISTED IN 2018 8. Decent Work And Beekeepers from 13 Economic Growth Partnerships with associations located in 200 2. Zero Hunger And beekeepers areas in which the company Sustainable Agriculture operates. 8. Decent Work And Family farmers from the Economic Growth Farming municipalities of Belo 320 2. Zero Hunger And partnerships Oriente, Caratinga, Coluna, Sustainable Agriculture Ipaba and Virginópolis. Public school teachers in the municipalities of 4. Quality Education School of Life 106 Senhora do Porto and Santo Antônio do Itambé. Company- Teachers, students, Community 4. Quality Education and community in the 7.735 Integration Units municipality of Peçanha. (UNIECO) Family Farmers 8. Decent Work And Association Men and women from the 24 Economic Growth of Ipatinga - municipality of Ipatinga. AAGRIFIPA 8. Decent Work And Handicrafts Home Men and women from the 35 Economic Growth - Matizes municipality of Ipatinga. Women from the district 8. Decent Work And Community of São Sebastião do Baixio, 22 Economic Growth Action municipality of Periquito. 8. Decent Work And Cotta's Bakery Women from the town of 32 Economic Growth Association Peçanha. Handicraft Group Men and women from 8. Decent Work And of Cachoeira the municipality of Belo 15 Economic Growth Escura - GRACE Oriente. 8. Decent Work And Men and women from the Solidarity Taste 12 Economic Growth municipality of Açucena. Women from the 8. Decent Work And Weavers of municipality of Santa 19 Economic Growth Brumal Bárbara (Brumal). 3. Good Health And Youths and teenagers from Well-Being Health campaigns 7 towns where CENIBRA 3.417 4. Quality Education operates. NUMBER OF PEOPLE GOALS PROJECT TARGET AUDIENCE ASSISTED IN 2018 Municipalities involved: Cantagalo, Peçanha, Antônio Environment and 4. Quality Education Dias, Ferros, Catas Altas, 4.941 Arts Guanhães, Iapu, Naque and Mesquita. Participation in the Expor Inox fair in Timóteo, Brazil X Japan fair 4. Quality Education Cenibra Mobile in Belo Horizonte, Compliance 4.285 at Nova Era, Guanhães and Rio Doce Regional Units Teachers, students, and 4. Quality Education Open Doors communities in several 1.648 municipalities. Students and communities from 3. Good Health And Action and 9 municipalities in the Nova Era, Well-Being 3.680 Citizenship Guanhães and Rio Doce Regional 4. Quality Education Units Communities in municipalities 4. Quality Education Cultural Projects within CENIBRA's area of 30.000 operation and in Minas Gerais Municipal Children and Adolescents Rights Councils, Effective Council Guardianship Advisers, and 3. Good Health And – Childhood and Social Operators in the System 3.400 Well-Being Adolescence for the Assurance of the Children and Adolescents Rights in 56 municipalities. Children and teens in 3. Good Health And municipalities at Nova Era, Sports 1.200 Well-Being Guanhães and Rio Doce Regional Units 8. Decent Work And Economic Growth Family Farming - Men and women from the 30 2. Zero Hunger And UNAIR municipality of Iapu. Sustainable Agriculture 8. Decent Work And Economic Growth Men and women from the Jorges 200 2. Zero Hunger And municipality of Peçanha. Sustainable Agriculture 8. Decent Work And Craftswomen from the Indaiá 19 Economic Growth municipality of Antônio Dias. 6. Clean Water And Families from the communities of Septic tanks 150 Sanitation Braúnas and Virgolândia Associations and small Professional businessmen from the 4. Quality Education 150 training municipalities of Belo Oriente, Joanésia, Mesquita and Periquito Communities from the 3. Good Health And municipality of Belo Oriente and Multifunction Park 14.000 Well-Being other municipalities around the industrial plant Members of municipal councils 3. Good Health And Effective Council – for the Rights of the Elderly, 100 Well-Being The Elderly elderly and managers from 10 municipalities Sewing Factory 8. Decent Work And – Neighborhood Men and women from the 15 Economic Growth Association of municipality of Belo Oriente Aviação - AMA 10. Reduced Inequalities Mothers of students Facção do Bem 16. Peace, Justice And participating in the Facção do 47 Project Strong Institutions Bem Project Regional palm heart producers from Ipatinga, Caratinga, 2. Zero Hunger And Palm Heart Project Bugre, Iapu, Coronel Fabriciano, 14 Sustainable Agriculture Marlieria, Belo Oriente and Inhapim Family Farming 2. Zero Hunger And Family farmers from the city of - Cocais dos 75 Sustainable Agriculture Coronel Fabriciano Arrudas 8. Decent Work And Economic Growth Bom Jardim de Men and women from the 92 2. Zero Hunger And Tronqueiras municipality of Peçanha Sustainable Agriculture 8. Decent Work And Living Fair Marketers of Sabinópolis 200 Economic Growth 2. Zero Hunger And Fruit Pulp from Family farmers of Coroaci 208 Sustainable Agriculture Pedra Redonda 2. Zero Hunger And Sustainable Agriculture Fishermen from the municipality Social Fish Farms 8 8. Decent Work And of Periquito Economic Growth 8. Decent Work And Women from the municipality of The Art of Hands 90 Economic Growth Naque Association of Recyclable 8. Decent Work And Waste collectors form the Material Collectors 8 Economic Growth municipality of Belo Oriente of Belo Oriente - ASCABEO 8. Decent Work And Horse-drawn cart drivers from Clean Town 10 Economic Growth the municipality of Ipaba 8. Decent Work And Women from the municipality Social Sewing 20 Economic Growth of Pingo D'Água

Young Entrepre- Youths from the municipality 4. Quality Education neurship Center 80 of Belo Oriente - NEJ

8. Decent Work And Economic Growth Quilombola families from Flour of Indaiá 22 2. Zero Hunger And Antônio Dias Sustainable Agriculture

Access http://www.institutocenibra.org.br for more information about each social program. TALK TO CENIBRA

0800 283 1291 TWITTER

For forest fires only. twitter.com/cenibra

0800 283 3829 FACEBOOK

Wood purchase – Forestation Incentive www.facebook.com/cenibra Odor Perception Network How’s My Driving? Other matters GOOGLE+ SITE CeluloseNipo-BrasileiraCENIBRA

www.cenibra.com.br YOUTUBE

CeluloseNipo-BrasileiraCENIBRA

CENIBRA APP – OUR WORLD IN YOUR HANDS

CENIBRA’s communication guidelines contribute to the Company’s mission and principles of corporate go- vernance 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

58 Public Summary of the Forest Stewardship Plan PEOPLE RESPONSIBLE FOR INFORMATION

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

PROFESSIONAL POSITION ROLE

Forestry Manager Carlos Roberto Soares Silva PALM HE CREA-MG 27242/D

Equipment Development, Preparation of texts related Alexandre Schettino de Harvesting and Logistic to logistics, maintenance Castilho Manager and development of forest CREA-MG 34858/D equipment.

Forestry Planning and Preparation of texts related to José Marcio Cardoso Control Manager forest planning, inventory and CREA-MG 40431/D geographic information system

Preparation of texts related to the Vander José Duque Saldanha Human Resources Manager human resource policy.

Preparation of texts related to Environment and Quality environmental management and Sandro Morais Santos Manager integrated management system CRQ 02300850 policy.

Preparation of texts related Corporate Communication to social aspects, corporate Leida Hermsdorff Horst Gomes and Institutional Relations communication and institutional Coordinator relations

Forestry Research and Preparation of texts related to Fernando Palha Leite Development Coordinator research and forest quality, and CREA-MG 53032/D genetic material management.

Environment Coordinator Yearly revision of the Forest Jacinto Moreira de Lana CREA-MG 70665/D Stewardship Plan.

Forest Engineer Yearly revision of the Forest André Fernandes Pedroso CREA-MG 149877/D Stewardship Plan.

Public Summary of the Forest Stewardship Plan 59 Headquarters & Plant 599 55 9 5 55 9 5

Belo Horizonte Office 9 5 55 5 55 5