Sustaintability Report 2012
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SUSTAINABILITY REPORT 2012 Our Vision Our Undertakings TO BE A GLOBAL LEADER IN THE • To maximize shareholders’ returns through the efficient, responsible and high-quality management of all our processes, DEVELOPMENT OF SUSTAINABLE applying for this purpose systems and procedures that ensure FOREST PRODUCTS. maximization of the value of our business. • To promote the sustainable use of the natural resources in our surroundings, investing in research, technological Our Business innovation and training in order to prevent and progressively, To maximize the value of our forests in a sustainable way, continuously and systematically reduce the environmental integrating excellence in forestry production with efficiency impacts of our activities, products and services. in industrial transformation of value-added products, for their • To provide all our customers with high-quality products and worldwide distribution in accordance with our customers’ needs. services and to do so in a sustained way over time, encouraging our suppliers to form part of ARAUCO’s value and quality chain. Our Values • To protect the safety and occupational health of both our own and contractors’ workers by seeking to continuously • Safety and progressively reduce safety risks in our operations and Always First: The safety of people is a priority in all our services. decisions. Only in this way do we consider a job to be well done. Our target is zero accidents. • To foster conditions for the development of all the members of our company by promoting workplaces based on respect, • Commitment honesty, professionalism, training and teamwork We Work with Passion: We accept challenges and work with passion and effort to rise to them. At ARAUCO, we are • To build permanent relations of mutual collaboration with hard-working and honest people whose word is their bond. communities where we have operations, taking account of their concerns and needs in our decisions and supporting • Excellence and Innovation their development. We Want to Be the Best: We are leaders in what we do because we challenge our own capabilities. We must be • To maintain transparent and honest communication with all demanding in our targets and efficient and innovative in our stakeholders. achieving them. • To comply with all legislation in force and other • Teamwork commitments that regulate our business and, whenever Together We Are More: We respect our people, value the possible, to surpass established standards. contribution that each one makes and know that, by working • To have in place and apply systems and procedures that enable as a team, we can advance more quickly and go further. We us to manage the risks of our business, regularly evaluating recognize our limitations and ask for help. our performance in all our processes, taking the necessary • Good Citizenship corrective measures opportunely and providing transparent We Respect our Surroundings and Create Value: We and timely information about our progress. act from a long-term perspective. Through our work, we • To inform our workers, contractors and suppliers about contribute to social wellbeing and respect our neighbors and these undertakings and train and involve them in compliance, the environment. thereby ensuring that this policy is implemented with the collaboration and effort of all. GRI 3.4 4.8 For further information, please contact: María Soledad Vial We would also like to invite you to visit the You can also follow us on: Assistant Communications Manager following websites: www.twitter.com/Arauco o @arauco_cl www.arauco.cl www.twitter.com/AraucoSoluSost o Telephone: 56-2-24617406 www.araucosoluciones.com @AraucoSoluSost E-mail: [email protected] www.fundacionarauco.cl www.facebook.com/AraucoSolucionesSostenibles Av. El Golf 150, 14th Floor, Las Condes, www.foroabierto.cl Santiago, Chile www.nuevohorcones.cl www.innovarauco.cl SUSTAINABILITY REPORT 04 10 12 ARAUCO AT CHAIRMAN’S CORPORATE A GLANCE STATEMENT MANAGEMENT STATEMENT 15 21 41 CORPORATE GLOBALIZATION PEOPLE GOVERNANCE AND EFFICIENCY OF EXCELLENCE 53 59 77 OCCUPATIONAL ENVIRONMENTAL COMMUNITY, HEALTH AND SAFETY PERFORMANCE PARTICIPATION AND DIALOG 97 100 SCOPE APPENDICES GRI 2.1 2.4 2.5 2.7 2.8 ARAUCO is a Chilean forestry company cogeneration power plants and 1.7 which was established 45 years ago. million hectares of forestland. ARAUCO During this time it has become one also works with an extensive network of the largest forestry companies in of suppliers, service providers and a the world, not only in terms of forest number of different organizations to area, industrial facilities, efficiency and strengthen its practices in economic, quality production, but also in terms of social and environmental areas. innovation, environmental responsibility and social commitment. The company ARAUCO’s products are sold on five has maximized the value of its forest continents through representatives, plantations, a natural renewable sales agents and sales offices established resource, by applying global best in eleven countries. These sales are practices on long-term sustainability, backed by efficient management of while at the same time caring for its the logistics and distribution services land, native forests and biodiversity, which includes transport, shipping, for the benefit of this and future storage, country trade requirements generations. and distribution. This allows ARAUCO products to reach 204 ports on five The company maintains industrial and continents. forestry operations in Chile, Argentina, Brazil, Uruguay, the United States and ARAUCO finished the year with 13,227 Canada. At the end of 2012, ARAUCO direct employees and more than 27,000 owned six pulp mills, 14 panel mills, contract workers. In 2012, the company nine saw mills, five remanufacturing generated a total profit of US$141 facilities, one plywood mill, 12 million and sales of US$4,280 million. 6 SUSTAINABILITY REPORT 2012 US$4,280 MILLION 344,412 in sales MAN HOURS of training 70 IENCY PE COUNTRIES FFIC OPLE 40,258 D E O WORKERS AN F E N XC and contract workers IO EL 204 AT L Z EN LI C PORTS A E B O L G 12 1.7 POWER PLANTS MILLION HECTARES installed capacity of 684MW (4.1 million acres) of forestland 3,159 GWh of electricity generation C O Y M T M E F U A N S I T Y D , N P 9 6 A A SAWMILLS PULP MILLS R 1 plywood mill and 5 remanufacturing annual installed capacity T H I facilities annual installed capacity of 3.2 million ADMT T C 3 L I of 2.8 million m of wood and P 350,000 m3 of plywood A A E T H IO L N A A N N O D I T D PA 9,000 IA 14 U Key LO PANEL MILLS CC HOUSES G annual installed capacity O of 5.4 million m3 SAFETY will be built by 2016 through Rules the Workers Housing Program EN CE VIRONM RMAN ENTAL PERFO Safety 91,594 ALWAYS CONTACTS comes first with stakeholders US$19 MILLION for environmental improvements in Chile, Argentina and Brazil 387,135 HECTÁRES (956,600 acres) of native forest SUSTAINABILITY REPORT 2012 7 ARAUCO believes that operating sustainably is at and energy. This is the business model that has the core of the company’s strategy, which is why supported the company’s growth in the past it manages the impacts and performance of all its decades and will continue to do so in the future. In activities in the economic, environmental and social order to Grow Well, it is essential that this model areas. This strategy is based on the understanding that be optimized through continuous improvement to to be successful, an organization must balance the add value to each business unit and reinforce the value generated for its shareholders with the value company’s competitiveness. In 2012, ARAUCO provided for its workers, neighboring communities focused on understanding its customers’ needs and interested stakeholders. At the same time, in order to generate a better value proposition, the company has a responsibility to protect the covering the entire supply chain, from plantation to environment, establish constructive relationships with end-user. The company also focused on identifying its stakeholders and provide transparent reports of new business opportunities. progress made and difficulties faced. The development of good labor relations, greater Cost Leadership care for the environment and for people’s safety as Focused on Production well as more dialog and participation with society are In order to sustain growth in highly competitive as important to the company as generating greater markets, ARAUCO has made cost efficiency operational stability, efficiency and production. its signature, allowing the company to be more profitable and to increase market share in ARAUCO’s challenge is to Grow Well and develop businesses that are not highly differentiated. Some a plan for action for years to come, centered on its of ARAUCO’s businesses faced difficulties in corporate values and its strategic key concepts, which 2012 which affected the company’s competitive are described below: position. Therefore, to Grow Well, the company needs to continue to improve productivity, maximize the value of its plantations and maintain cost leadership. To do so, the company must People of Excellence concentrate on: improving priority setting; modifying the organizational structure; strengthening its In order to Grow Well, it is essential to have work information systems; improving productivity teams that are committed and motivated, aligned and introducing automated processes and new with the company’s culture and strategy. During technologies, among others. 2012, ARAUCO strengthened its Human Resources area, which works with the company’s businesses to empower team leaders, improve the work climate, Good Citizenship promote better practices in performance assessments, establish appropriate compensation policies, increase To Grow Well means to develop zero-fault internal communication and define and support processes in terms of labor, the environment training plans that meet the company’s needs and and regulations.