Forest Stewardship Plan

PUBLIC SUMMARY 2020 FOREST STEWARDSHIP PLAN

License No.: FSC-C021201 License No.: FSC-C008495

The future present in every action TABLE OF GENERAL INFORMATION 3 CONTENTS INTRODUCTION 4 The Company 4 Mission 5 Vision 5 Principles 5 Land occupation and location 6 Purpose of Forest Stewardship 10

FOREST MANAGEMENT 11 WOOD PRODUCTION PROCESS 11

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

FORESTRY RESEARCH 16

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

FOREST PROTECTIONL 19

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

ENVIRONMENTAL MANAGEMENT 23

ENVIRONMENT 23

Environmental Monitoring 23 Vegetation 24 Wildlife 29 Water Resources 33 High Conservation Value Areas – HCVA 36 Environmental Education and Communication 43

SOCIAL AND LABOR MANAGEMENT 44

HUMAN RESOURCES POLICY 44

Recruitment, Selection, and Compensation 44 Personnel 45 Occupational Health and Safety 46 Benefits 52 Training, Development, and Quality of Life 52 Socioeconomic profile of CENIBRA’s area of influence 52

CENIBRA INSTITUTE 55

CENIBRA INSTITUTE’s Mission 56 CENIBRA INSTITUTE’s Principles 56 Strategy 56 Areas of Interest 57

CONTACT INFORMATION 62

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: 35196-000

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

E-mail: [email protected]

Internet: www.cenibra.com.br

State Registration: 063.141486.0136

Taxpayer’s Number (CNPJ/MF): 42.278.796/0001-99

Legal Representative: Júlio Cézar Tôrres Ribeiro / Technical and Industrial Director

This document’s version: Version 16, 2020; this is the 16th version after the initial certification in 2005.

This document’s revision: Next revision by April 2021.

Public Summary of the Forest Stewardship Plan 3 INTRODUCTION

THE COMPANY CENIBRA is one of the world’s largest bleached (FSC®) and Brazil’s Forest Certification Program short-fiber eucalyptus pulp manufacturers. Located (CERFLOR), two distinct certification entities with in Belo Oriente, Minas Gerais, 236 km away from their own principles and criteria, which represent the state capital Belo Horizonte, its production is further assurance that CENIBRA pulp is produced shipped mainly to foreign markets, particularly Ja- from sustainable forests with social and environ- pan, the United States, Europe, Latin America, and mental responsibility. CENIBRA manages 253,669 Asia. hectares of land in 54 municipalities. Around 98% of this area is within the certification scope, CENIBRA employs the ISO 9001 and ISO 14.001 i.e., 248,194 hectares of owned and leased land management systems to provide its customers in broken down as follows: 129,134 hectares of eu- the pulp & paper industry with raw material from calyptus plantations, 103,342 hectares of native sustainable forests from the economic, social, and vegetation, and 15,718 hectares for infrastructure environmental standpoints, while providing safe, and other uses. Regardless of certification, respon- healthy working conditions. In 2005, the Company sible forest stewardship practices follow the same was certified by the Forest Stewardship Council® pattern in all the company’s properties. Mission Principles “Generate and distribute wealth • Ethics: be respectful and truthful in all relationships; in a sustainable manner by pro- • Commitment to results: value employees engagement, innovation, cessing planted trees” and personal skills; • Excellence: strive for quality, reliability, and competitiveness; Vision • Sustainability: ensure competitiveness while meeting society’s needs “Be an everlasting company ad- and preserving the environment; mired by everyone” • Entrepreneurship: act today while aiming at the future. LAND OCCUPATION AND LOCATION CENIBRA’s forest lands are located in the mid-eas- River, Santo Antônio River, Suaçuí Grande River, tern portion of the state of Minas Gerais, mostly Caratinga River, and Piranga River sub-basins, as in the Doce River drainage basin and its Piracicaba shown in Figure 1.

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

6 Public Summary of the Forest Stewardship Plan Cenibra operates in 54 municipalities in the state of Minas Gerais over 253,669.23 hectares of owned and leased land, whether inside or outside the scope of certification.

AREAS (HECTARE) OCCUPATION (%) MUNICIPALITY Municipality Total Actual Total Actual AÇUCENA 81.159,00 6.477,49 3.083,88 7,98% 3,80% ALVINÓPOLIS 59.979,00 4.182,26 1.855,94 6,97% 3,09% ANTÔNIO DIAS 78.707,00 16.662,30 8.748,79 21,17% 11,12% BARÃO DE COCAIS 34.056,00 3.662,42 1.968,21 10,75% 5,78% BELA VISTA DE MINAS 10.852,00 1.132,08 411,27 10,43% 3,79% BELO ORIENTE 33.531,00 15.963,70 9.286,22 47,61% 27,69% BOM JESUS DO AMPARO 19.516,00 721,88 433,67 3,70% 2,22% BOM JESUS DO GALHO 59.312,00 7.169,17 4.503,00 12,09% 7,59% BRAÚNAS 37.623,00 1.673,30 728,33 4,45% 1,94% BUGRE 16.162,00 3.171,73 1.459,91 19,62% 9,03% CAETÉ 54.224,00 1.112,53 650,87 2,05% 1,20% CANTAGALO 14.188,00 232,47 184,04 1,64% 1,30% CARATINGA 125.869,00 13.278,29 6.361,01 10,55% 5,05% CATAS ALTAS 23.821,00 5.500,73 3.114,13 23,09% 13,07% COLUNA 34.828,00 995,64 508,95 2,86% 1,46% COROACI 57.666,00 6.863,45 3.852,39 11,90% 6,68% CORONEL FABRICIANO 22.208,00 5.972,51 2.671,05 26,89% 12,03% CÓRREGO NOVO 20.645,00 4.173,08 2.617,16 20,21% 12,68% DIVINOLÂNDIA DE MINAS 13.200,00 1.777,25 942,51 13,46% 7,14% DORES DE GUANHÃES 38.173,00 689,85 373,87 1,81% 0,98% FERROS 109.424,00 11.227,81 5.213,69 10,26% 4,76% GONZAGA 20.896,00 1.435,80 739,69 6,87% 3,54% GOVERNADOR VALADARES 234.890,00 164,36 80,85 0,07% 0,03% GUANHÃES 107.682,00 11.296,46 5.321,51 10,49% 4,94% IAPU 34.275,00 1.471,37 781,72 4,29% 2,28% IPABA 11.377,00 5.533,65 2.512,40 48,64% 22,08% IPATINGA 16.609,00 2.055,87 734,68 12,38% 4,42% ITABIRA 125.449,00 5.926,38 2.544,89 4,72% 2,03% JOANÉSIA 23.269,00 524,51 275,67 2,25% 1,18% MARIANA 119.386,00 3.201,93 1.159,39 2,68% 0,97% MARLIÉRIA 54.368,00 774,18 358,28 1,42% 0,66% MATERLÂNDIA 28.092,00 858,50 206,25 3,06% 0,73% MESQUITA 27.499,00 1.218,49 588,11 4,43% 2,14% NAQUE 12.644,00 3.044,23 1.876,12 24,08% 14,84%

Chart 1: Municipalities in which Cenibra operates.

Public Summary of the Forest Stewardship Plan 7 AREAS (HECTARE) OCCUPATION (%) MUNICIPALITY Municipality Total Actual Total Actual NOVA ERA 36.001,00 7.993,19 3.708,13 22,20% 10,30% PAULISTAS 22.097,00 2.225,95 1.158,51 10,07% 5,24% PEÇANHA 99.605,00 14.700,67 8.973,94 14,76% 9,01% PERIQUITO 22.766,00 6.937,94 3.570,83 30,48% 15,68% PINGO-D'ÁGUA 6.685,00 1.816,85 1.062,85 27,18% 15,90% RIO PIRACICABA 37.317,00 595,75 286,90 1,60% 0,77% RIO VERMELHO 98.620,00 3.004,00 610,60 3,05% 0,62% SABINÓPOLIS 91.949,00 15.161,34 7.998,65 16,49% 8,70% SANTA BÁRBARA 68.471,00 9.445,17 5.623,22 13,79% 8,21% SANTA MARIA DE ITABIRA 59.981,00 5.730,92 2.592,08 9,55% 4,32% SANTANA DO PARAÍSO 27.527,00 10.627,71 6.076,65 38,61% 22,08% SANTO ANTÔNIO DO ITAMBÉ 30.497,00 2.720,92 636,47 8,92% 2,09% SÃO DOMINGOS DO PRATA 74.637,00 3.682,93 2.018,26 4,93% 2,70% SÃO GONÇALO DO RIO ABAIXO 36.475,00 7.919,44 3.960,95 21,71% 10,86% SÃO JOÃO EVANGELISTA 47.829,00 4.524,19 2.797,00 9,46% 5,85% SARDOÁ 14.179,00 1.277,90 697,22 9,01% 4,92% SEM PEIXE 17.621,00 167,81 86,44 0,95% 0,49% SENHORA DO PORTO 38.220,00 203,56 69,87 0,53% 0,18% VIRGINÓPOLIS 44.002,00 4.424,73 2.779,98 10,06% 6,32% VIRGOLÂNDIA 28.197,00 362,59 144,39 1,29% 0,51% 2.664.255,00 253.669,23 131.001,39

Chart 1: Municipalities in which Cenibra operates.

Others CENIBRA manages 253,669 hectares of land, (roads, firebreaks, constructions, etc.) out of which 248,194.49 hectares are cove- Eucalyptus plantation red by the certification scope, corresponding 7% to around 98% of land certified for forest stewardship. Responsible forest stewardship practices follow the same pattern in all the company’s properties. 42% 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 pro- portion of land allocated to Legal Reserve and Native forests Permanent Preservation among the plantation (Legal Reserve and Permanent areas, as can be seen in the Figure below. 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 CENIBRA acknowledges the management of • Promoting the management of land assets its rural and urban properties as a basis for on the basis of current technological, envi- the Company’s sustainable growth in line ronmental, social, and economic opportu- with the development of the regions where nities and demands in connection with the it operates, while maintaining a focus on the Company’s goals. legal, social, environmental, economic-finan- • Adding value to the land and applying a cial and logistic aspects, under the following land management approach compatible main guidelines and commitments: with the region in which the Company operates, with an aim to support regional de- • Ensuring the ownership and possession of its velopment in a smooth, long-lasting way. real estate through the corresponding registration, certification, and reporting of such • Protecting and developing the natural re- assets in compliance with the law and other sources, while ensuring the availability of applicable requirements. such resources for the present and future generations.

CREATION DATE EFFECTIVENESS/REVISION DATE MANAGEMENT MEETING REVISION July 09, 2015 July 09, 2015 1205ª- 09/07/15 R-0

The acquisition of new land means choosing na- rably be maintained. If two or more properties are mes for the new plantation projects. For this pur- merged together, the name of the property better pose, the company has established criteria to pre- known by the community should be kept. In cases serve the socio-cultural and geo-referential identity not covered in the previous items, an internal team of neighboring communities and mitigate the so- should evaluate the most appropriate designation, cial impact of eucalyptus plantations in terms of aimed at preserving of local socio-cultural and geo- landscape change and monoculture. Accordingly, -referential identity. the traditional name of the property should prefe-

Public Summary of the Forest Stewardship Plan 9 PURPOSE OF FOREST STEWARDSHIP The Forest Stewardship Plan prepared by Celulo- nability aspects of any forestation project. Mo- se Nipo-Brasileira S. A. - CENIBRA S.A. is a tool reover, Cenibra’s forest stewardship also: whose purpose is to demonstrate and provide stakeholders with evidence of the aspects taken • Protects and preserves the local vegetation into consideration to ensure forestry production and wildlife; sustainability and short-, medium-, and long- • Generates direct and indirect jobs in the region; -term planning interrelations, in addition to continuously supplying wood to the industrial plant. • Develops local businesses and service provi- It clearly sets forth the objectives, responsibili- ders in the municipalities in which the com- ties, available resources, and strategies for the pany operates; adoption of sustainable stewardship practices. • Promotes the relationship with communities Its scope is based on the responsible use of na- and stakeholders. tural resources and economic and social sustai-

10 Public Summary of the Forest Stewardship Plan FOREST MANAGEMENT WOOD PRODUCTION PROCESS In 2019, the wood supply to the industrial plant was split as follows: 80.98% from the Company’s own land and 19.02% purchased from farmers in the marketplace.

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

VOLUMES m3

Harvested wood volume (bark included) 4.312.310 Remaining volume ¹ 22.416.913 AREAS ha % Overall area actually planted 124.192 100% Harvested area 16.019 13% Planted area 16.585 13% Total seedlings produced ² 13.647.138

REMARK: 1 - Volume projected for 7 years; forest FONTE: Ano Base 2019. from 0 to 2 years of age excluded. 2 - Seedlings produced by the Company’s Seedling Nursery in 2019. Table 1: Forestry and harvesting output.

The difference between harvested and planted areas during the year results mainly from the time gap between harvesting and the beginning of planting, and the significantly large size of new forested areas.

Table 02 shows wood output figures relative to plantations under the forestation incentive program for farmers in 2019.

OUTPUT UNDER THE FORESTATION INCENTIVE PROGRAM ÁREAS ha % Harvested area ¹ 1.718,31 8% Area of growing forests 20.019,84 92% Total area 21.738,15 100% VOLUMES m3 Harvested volume ¹ 895.279

NOTE: SOURCE: Base year 2019. 1 - Delivered up to December 31, 2019 Table 02: Output under the forestation incentive program.

Public Summary of the Forest Stewardship Plan 11 STRATEGIC PLAN Strategic Planning is a process that sets objectives for the selection of projects and/or action programs and their implementation, taking into account the company’s internal and external factors and their expected development. The strategic plan’s objective consists in enhancing the favorable conditions and minimizing the unfavorable ones. For that purpose, basic corporate guidelines are defined with a view to ensure sustainability and market competitiveness.

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

Planning Timeframe

» Timeframe is a variable of fundamental importance in planning, particularly when one takes into account the forest regulation aspects, as it deals with the conversion of an actual age class into a regulated structure.

» The long-term planning period adopted by CENIBRA is 21 years. The company uses the planning tool Remsoft (RSPS), a decision-making support (DMS) system that makes use of a linear scheduling model to optimize the activity sequence in the forestry process.

Planning Restrictions

» Establishment of yearly quotas – ensures regular production flow by region in every harvesting period by setting up admissible variation levels;

» Wood demand level – ensures compliance with the minimum demand;

» Regulated structure requirement – the most common option to obtain a regulated forest at the end of the planning horizon consists of including restrictions that impose a suitable distribution by age class.

» Desirable final inventory level – imposition of a minimum inventory level at the end of the planning horizon.

12 Public Summary of the Forest Stewardship Plan To that effect, information generated by the Lon- g-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 contemplates strategic projects for the rainy months (November through March) and, at the same time, meets the possible additional consumption demand by the plant over the period and regu- lates 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 Harvesting, Logistics, and Forestry Depart- ments. In case of social or environmental impacts, or if there are unforeseen legal constraints (for instance, delays in licensing processes), the sequence of forestation projects to be harvested is changed to minimize such impacts. Feedback into tactical planning is generated by these changes.

The selected projects must be among those included in the Medium-Term Tactical Planning. The tools used in this planning process are the STPS (Short-Term Planning Simulator), AHP (Annual Harvesting Planning), and ASP (Annual Forestry Planning.

TECHNICAL, ECONOMIC, ENVIRONMENTAL, AND SOCIAL PLANNING - TEESP The TEESP is worked out in a multidisciplinary approach by the operational Infrastructure, Har- Tactical Planning – Medium Term vesting, Logistics, and Forestry areas, as well as The tactical planning objective consists of de- by the following support areas: Planning, Environ- fining the forest projects that will be harvested ment, Social, and Work Safety. The core goal is within the next seven years in line with the pulp to diagnose and propose preventive, corrective, plant’s consumption needs, taking into conside- mitigation, and improvement actions during the ration restraints related to infrastructure, harves- forest stewardship planning and implementation ting, and wood transportation in the different stages. The use of this tool ensures that the qua- seasons (dry or rainy season). The personnel assig- lity and economic principles and the respect for nment sequences are also taken into account to the environment and neighboring communities make it easier to retain personnel at the workpla- are taken into consideration when planning the ce and avoid long commute times or temporary forest implementation, reformation, and harves- employee transfer. ting activities.

Public Summary of the Forest Stewardship Plan 13 1) Preliminary TEESP: This planning aims at su- Occupational health and sa- pporting the land purchase process, and focu- fety restrictions: Existence of ses on the percentages of land use and mecha- microrelief features, steep slo- nization, productivity of the forest plantations pes, old forest tracts, existence (if any), and environmental liabilities. of beehives.

2) TEESP for Forest Implementation/Harves- The entire work is then analyzed and validated by ting: This planning step defines the roads the staff in charge of operational, social, occupa- and other infrastructure, determines the need tional health and safety, and environment areas. for environmental licensing, identifies the so- Changes indicated in the TEESP are incorporated cial, safety, and environmental impacts and into the forestry and harvesting micro-planning aspects, and recommends preventive, correc- and entered into the forest recording system. The tive, mitigation, and improvement actions to TEESP records and monitors changes that have be taken during the infrastructure implemen- taken place in forest stewardship along the forest tation, harvesting, transportation, and forestry cycles. activities in the forest regeneration or reformation stages. The use of the TEESP results in a number of social and environmental gains for CENIBRA, such as After the corresponding scheduling and upon lower road density, with the consequent reduc- making the necessary maps available, a field tion in earthmoving, less erosion, and reduced soil inspection is conducted by a team made up of entrainment into water bodies. Moreover, becau- supervisors, an environmental analyst, an insti- se the social aspect is properly included in the TE- tutional relations analyst, and safety technicians. ESP, the company improves its relations with the Relevant aspects with regard to road location, neighboring communities by taking into account path rectification, load flows, interferences in the the impacts of the forestry operations on them. communities, and activity risks and hazards are The outcomes of such a holistic view of the forest discussed and plotted on maps. In addition, res- projects are optimized land use and an increase in trictions are defined in line with the company’s the company’s production areas. Forest Stewardship premises, as follows: On top of it all, the TEESP is deemed a continuous improvement tool for enhanced land use and Technical restrictions: rock planning. outcrops, access constraints, restrictive slopes, road network planning; SEEDLING PRODUCTION

CENIBRA invested in a new Seedling Nursery to centralize all seedling production activities in one Legal and environmental res- single facility and ensure the supply of seedlings trictions: Need for environmen- for the company’s future renewable eucalyptus tal licenses and permits, envi- forests. This is one of the world’s most modern ronmental aspects in connection nurseries in terms of eucalyptus seedling produc- with Legal Reserve and Perma- tion by means of cloning techniques. nent Preservation areas, areas susceptible to erosion, sites of With a yearly production capacity of 25 million historic, ecological, cultural, re- seedlings and located just two kilometers from ligious, or archeological interest; the Company’s Industrial Plant, this complex puts together the most innovative and sophisticated technological resources and features a comple- Social restrictions: Proximity to te infrastructure aimed at controlling production populated areas, dust genera- factors such as temperature, humidity, light, nu- tion, visual impact, risk of acci- trients, and water. In addition to these essen- dents involving road users, wa- tial factors from the production standpoint, the ter easement; Company’s human capital and environment have also been taken into consideration in the Nursery

14 Public Summary of the Forest Stewardship Plan design, with improved fertilizer and water use, INVENTORY including water treatment and reuse. Moreover, the Nursery was ergonomically designed to requi- Efficient use, conservation, and stewardship of re the least amount of effort from the workers. forest resources require knowledge of both quantitative and qualitative forest characteristics and Using its own genetic material, originated from permanent monitoring of forest productivity (m³/ the Company’s Genetic Improvement and Clone ha/year). Such knowledge is made possible by Development Program, seedlings are produced in means of forest inventories, which are based on small tubes filled with vermiculite, carbonized rice data collected from a population (samples) to ge- bran, and coconut fiber as a substratum. The se- nerate overall population estimates. edlings are handled and prepared for planting in accordance with applicable internal procedures.

In 2019, 14,811,184 seedlings were produced in HARVEST / TRANSPORTATION total, out of which 13,901,968 were planted in CE- The entire eucalyptus wood supply is based on NIBRA’s own lands and 909,216 were provided to the shallow cutting system with an average 7-year farmers under the Forestation Incentive Program. rotation and the subsequent reformation or regeneration for one more rotation.

FORESTRY ACTIVITIES Mechanized harvesting techniques have been adopted in 91% of the company land. Harvesters Prior to starting the forestry activities in each fo- and forwarders are used in “standard harvest” rest plantation, a multidisciplinary team prepares areas, with slopes up to 27º. In the case of areas the Technical, Economic, Environmental, Social, whose slope ranges from 27º to 35º, harvesters and Occupational Health and Safety Planning (TE- and forwarders are fitted with a winch system. ESP). During the forestry micro-planning stage, the legal reserve and permanent preservation are- The remaining eucalyptus trees harvested throu- as are delimited and any restrictions that could in- gh semi-mechanized harvesting methods answer terfere with proper stewardship (Implementation, for less than 9% of the overall wood harvested by Reformation or Regeneration) of a given tract of Cenibra and they come almost entirely from areas land are defined. Such restrictions may be of a where the wind has broken the trees or areas with technical, operational, or environmental nature. a steep microrelief. To be able to operate in such Moreover, the areas to be mechanized are defined areas, CENIBRA employs a dedicated team that and suitable genetic materials are recommended uses chain saws for the harvesting operations and in a joint work with the forestry development and TMO winch tractors or forwarders for the trans- research sector, taking into particular considera- shipping operations. tion the suitability of a given clone to the specific environmental conditions and the planting of dif- The harvested and transshipped wood is hauled ferent clones in continuous areas. to the industrial plant in Belo Oriente by means of road trains (in the case of harvesting in CENIBRA’s The forestry activity sequence and intensity de- own land). In the specific case of the Nova Era pend on a number of factors, such as soil type, Regional Unit, transportation takes place by road productivity and genetic material of the previous and rail, i.e., the wood is shipped by truck from cycle, slope, and edaphic-climatic conditions. the field up to the railway station and thereafter by train up to the industrial. To ensure compliance with technical recommen- dations during the performance of such activities, For the purposes of chain of custody certification, field teams apply the corresponding internal pro- the origin of the harvested wood is supported cedure and employees in charge of each opera- by the corresponding Wood Transportation Bill tion manage the process by recording every con- (WTB) at any point from the cutting stage up to trol for subsequent decision-making, if necessary. wood delivery at the Plant.

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 Research areas are described in the subsequent topics:

16 Public Summary of the Forest Stewardship Plan GENETIC IMPROVEMENT matic activity of trained teams using granulated sulfuramid ant killing agents. In the lowland areas The basis of this important forest engineering of Belo Oriente and Ipaba, leaf-cutting ants are area of CENIBRA’s research department is prima- systematically controlled up to the second year af- rily genetics. It is, indeed, an area of knowledge ter planting. In the case of plantations older than that demands integration among and the appli- 2 and 3 years, leaf-cutting ants are previously mo- cation of different fields of Forestry Engineering, nitored by means of statistic models, which de- such as botany, taxonomy, genetics, cytology, termine whether it is necessary to adopt control phytopathology, entomology, molecular biology, measures. physiology, and statistics. If the target is to select and recommend for commercial plantation trees The Company worked out an Agrochemicals Use that provide the highest cellulose contents and Optimization Plan, which provides guidelines for allow easy cellulose extraction by the industry, conducting and optimizing the Integrated Plague, knowledge and experience in the field of wood Disease and Shrub Competition Management. technology are mandatory for conducting a gene- This Plan is available at the Research, Control and tic improvement program. Planning Department’s Research and Develop- ment sector. This area answers for the definition of the genetic material that delivers the highest yield, with significant influence on forest productivity, wood har- SOIL, NOURISHMENT, AND FOREST vesting and transportation processes, and cellulose extraction at the industrial plant. STEWARDSHIP At CENIBRA, the edaphic production factor repre- sents a distinctive feature that can either improve FOREST PLAGUE CONTROL AND the company’s competitive edge as a result of the MANAGEMENT eucalyptus’ remarkable potential of response to fertilizers, in association with the physical charac- Due to the region’s environmental features and teristics of these soils, which are highly favorable the forest stewardship model adopted by CENI- to forest cultivation, or lead to loss of competitive BRA, there has been no occurrence of forest pla- potential due to the high susceptibility to both gues that could bring significant economic losses, chemical and physical degradation. Therefore, except for leaf-cutting ants and the eucalyptus suitable soil handling is of fundamental importan- bronze bug. Maintaining the forest plague popu- ce for proper eucalyptus plantation productivity. lation below the economic loss level is of prime importance to ensure forest productivity. For that In its endeavor to find ways to preserve this re- purpose, an Integrated Plague Management pro- source (with satisfactory quality), CENIBRA has gram has been adopted with an aim to preserve developed a number of works in the soil and fo- the population control factors, while taking into rest stewardship fields. The activity areas and the account ecological, social, and economic factors. corresponding objectives are described below:

Sporadic forest plagues are controlled by forest • Soil Survey and Classification: To know the monitors, who help detect insect infestations, in soil characteristics of interest to eucalyptus addition to protecting the Company’s properties. cultivation with an aim to define manage- Under this approach, any insect infestation found ment units. One management unit is made is monitored up to its natural extinction. Alter- up by grouping homogenous areas in terms natively, if necessary, prophylactic measures are of climate, soil, and relief; taken when infestation starts to cause economic damage. In this case, prophylactic measures inclu- • Fertility and Nutrition: To correct and main- de biological products, manual collection and, as tain soil fertility while minimizing nutritional a last resort, the use of chemical insecticide duly shortcomings that could harm eucalyptus registered with supervisory agencies. growth;

Leaf-cutting ants are a permanent plague. During the first year after planting, the control is a syste-

Public Summary of the Forest Stewardship Plan 17 • Water and Soil Conservation: To define measures aimed at preserving the soil and The soil must be used in such a increasing the amount of water available in way so as to sustain the biological the soil and produced in eucalyptus planta- productivity of planted eucalyptus tion areas; forests with minimum impact on its functions related to the main- • Use of Process-based Models for Forest 1 tenance of its ecosystem’s environ- Productivity Estimate: To understand and mental quality. model all processes involved in the forestry activity, and simulate effects of climatic and edaphic variations on the eucalyptus growth rate; Activities in connection with the Forestry Process (infrastructure, fo- • Climatology: To monitor and make availab- restry, harvest, and transportation) le climatic information relative to the com- must be carried out with the least pany’s areas; 2 possible impact on the environmental and productive functions of soil; • Regeneration management: To develop management techniques that enable the re- establishment of the forest by regeneration; The company must work out a • Harvest residues management: To seek continuous monitoring system and a balance between economic return and define indicators to be used in the production sustainability while leaving suf- diagnosis of soil quality (as far as the ficient residues in the field to maintain and soil’s environmental and productive increase the organic matter content in the 3 functions are concerned) and water soil and reduce the export of nutrients du- quality and quantity in the drainage ring harvesting; basins within the company’s land.

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

CENIBRA’S SOIL AND WATER CONSER- VATION 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

PROTECTION FOREST FIRE PREVENTION 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 Orien- system involving the use of techniques and resour- te. In 2016, this system started regular operation ces to maximize efficiency. It constantly incorpo- in all of CENIBRAS’ regional units. It consists of rates new techniques with a view to reduce the video cameras installed in fire surveillance towers occurrence of forest fires that could damage the and remotely operated from a round-the-clock Company’s ecological heritage and forest assets. central control room at the industrial plant in Belo Oriente. The introduction of this monitoring sys- This system gives priority to preventive actions, and tem resulted in greater efficiency in detecting fire the entire work is carried out by integrating the outbreaks, on top of significantly improving the efforts of the Company’s technical, operational, safety and health conditions of the system ope- and administrative sectors. The lines of action are rators. as follows: Educational Campaigns and Activities

During events like agriculture and cattle fairs, Forest Week, Environment Week, and the like, CENIBRA promotes educational campaigns focused on Forest Fire Prevention in the towns located within the Company’s area of influence, including advertisements, speeches, videos, and distribution of educational material among participants. The educational material distribution is intensified during drier periods (June through October), when the risk of fire is higher.

Moreover, meetings are held and personal contacts are made with as many neighbors as possible during the year. On such occasions, general aspects of fire use and control are discussed, and educational material with prevention messages is distributed. In certain cases, when neighbors need to use fire as an agriculture practice, CENIBRA assigns expert teams to the area with an aim to help and train farmers and avoid incidents that could affect both commercial plantations and native vegetation areas.

Furthermore, annual educational campaigns are promoted in the region’s rural schools, including distribution of leaflets on this matter.

Training and Qualification

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

Risk Identification

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

Maintenance of firebreaks

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

Fire Detection

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

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 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.

Exclusive Fire Control Equipment

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

Climatologic Stations

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 other possible troubles in the Company’s proper- round-the-clock electronic monitoring system. This ties. In case of a fire outbreak, cameras installed system is equipped with several long-range video in watch towers allow quick identification of fire cameras installed in external and internal areas. location and determination of its intensity and ex- tension. This is essential information when alloca- This is a high-tech resource for real-time monito- ting the required firefighting equipment and te- ring of large land extents in a safe, reliable way. ams to ensure a safer, more efficient fire control. All images and controls are recorded and filed. Another way to monitor company assets is throu- The use of high-resolution cameras improves se- gh forest observers. These are employees in char- curity, particularly in terms of controlling invasion ge of in-situ monitoring, covering all areas of the and wood theft, fire outbreak monitoring, and Company. ENVIRONMENTAL MANAGEMENT

ENVIRONMENT Monitoring guidelines:

For acknowledging in its Integrated Management Promoting studies and investigations System Policy that sustainable development is one to identify impact trends on wildlife, of the foundations of its wood and pulp produc- vegetation, and water as a result of fo- tion activities, CENIBRA develops a number of 1 restry activities and providing informa- actions aimed at protecting the existing natural tion and knowledge to support both resources in its land, as well as enhancing environ- preventive and mitigating measures; mental awareness among its employees and the Mapping and classifying sites of rele- communities. vant environmental, historical, archeo- By adopting operating practices based on proce- logical, and cultural interest located on dures derived from ISO 9001 and ISO 14001 and 2 the Company’s land. Promoting envi- an extensive natural resource improvement and ronmental liability remediation; monitoring program, the Company prevents and Promoting partnerships with research mitigates environmental impacts arising out of its institutions, universities, and NGOs activities, in addition to protecting the natural heri- to add to the knowledge base con- tage within its permanent preservation and reserve cerning the ecosystems on the Com- areas, which correspond to approximately 40% of 3 pany’s land. the company’s overall land area. These programs’ objectives are to record and To prepare and implement specific projects for evaluate the results of any natural or induced biodiversity characterization, natural resource changes and phenomena by monitoring the evolu- stewardship, monitoring, institutional relations tion of resources in CENIBRA’s Forest Stewardship with communities, and environmental education, Units and their areas of influence. For that purpo- the Company has set up a specific department and se, indicators are identified and used as a means personnel to deal with these matters. The subse- to detect changes in the environmental direction quent paragraphs describe this department’s lines and provide input for preparing and continuously of action in connection with the forestry process improving CENIBRA’s forest stewardship system. A and respective guidelines intended to ensure the summary of main monitoring results is presented company sustainability, while interacting with all in the following pages. external interfaces and economic segments, incor- porating environmental variables into.

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 ve, 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 the atmosphere. environmental 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 post graduate programs. preserved areas. Since then, such studies have been conducted by the Forest Investigation So- After the 2017 sampling campaign, vegetation ciety, an entity linked to the Federal University of studies were adapted to the updated official list Viçosa’s Forest Investigation Society/Forest Engi- of vegetal species identification. The density cal- neering Department (CENIBRA, 2018). culation method was also adjusted to consider the number of stems instead of the number of Continuous environmental monitoring in four individuals. regions in which the Company operates (Cocais, Ipaba, and Guanhães) was implemented in 2002 RICHNESS to study their biodiversity. Permanent tracts of land were selected from these areas for study; Forests at Ipaba (Forest 1 and Forest 2) and Cocais surveys were conducted in 2002, 2007, 2012, areas showed a reduction in the number of species and 2017 and the following data were gathered: between the initial (2002) and final (2017) moni- biomass volume, species identification, diversity toring periods. Such reduction was also seen in rates, and others. every project in the last monitoring period (2012 – 2017). Notwithstanding the decline in the number Results from 2005 were used to evaluate the dy- of species, the environmental preservation areas namics of the surveyed woods, when it was found still feature high richness in terms of forest species. out that all conservation indicators were positi-

Surveyed Area / Year 2002 2007 2012 2017 Guanhães 206 217 215 210 Ipaba - Mata1 141 143 145 138 Ipaba - Mata2 113 116 112 106 Cocais 223 236 237 222

Chart 2: Species richness in four monitoring projects at environmental preservation areas

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

Environmental protection areas are important re- 6 fuges for rare and threatened species. Taking the Minas Gerais inventory classification (Oliveira Fi- lho and Scolforo, 2008) as a basis, 6 species were 12 identified as rare, 20 as very rare, and 12 as extremely rare.

Figure 3: Rare species found in environmental preservation 20 areas, according to the Minas Gerais inventory classification

Very rare Rare Extremely rare

Regarding threatened species, seven were rated as vulnerable and three in danger of extinction in the Red Book of Brazilian Flora (Martinelli and 3 Moraes, 2013).

Figure 4: Threatened species found in environmental preservation areas according to the Red Book of 7 Brazilian Flora.

Vulnerable Endangered

Species Classification Apuleia leiocarpa VU Byrsonima alvimii VU Dalbergia nigra VU Euplassa incana VU Euterpe edulis VU Melanoxylon brauna VU Zeyheria tuberculosa VU Ocotea odorifera EN Trattinnickia ferruginea EN Virola bicuhyba EN

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

Table 3: Classification of threatened species found in four monitoring projects at environmental preservation areas

Public Summary of the Forest Stewardship Plan 25 Diversity

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

Density

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

Surveyed Area / Year 2002 2007 2012 2017 Guanhães 1942,00 2045,00 2069,00 1972,00 Ipaba - Mata1 1720,00 1823,75 1791,25 1693,75 Ipaba - Mata2 1803,33 1866,67 1870,00 1746,67 Cocais 1538,33 1625,00 1648,33 1630,00

Chart 3: Density (stems ha-1) at four monitoring projects in environmental preservation areas

Dominance

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

Surveyed Area / Year 2002 2007 2012 2017 Guanhães 16,45 18,66 20,85 20,12 Ipaba - Mata1 14,98 16,50 16,83 16,79 Ipaba - Mata2 22,94 25,48 27,00 26,08 Cocais 20,24 22,63 24,11 24,92

Chart 4: Dominance (m2 ha-1) at four monitoring projects in environmental preservation areas

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.

Gunhães Ipaba - Mata1 Ipaba - Mata2 Cacais

0 2002 2007 2012 2017

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

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.

Surveyed Area / Year 2002 - 2007 2007 - 2012 2012 - 2017 Guanhães 2,49 3,72 -1,99 Ipaba - Mata1 1,55 2,61 0,23 Ipaba - Mata2 3,72 4,71 -1,65 Cocais 3,15 1,78 1,04

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

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. 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 ba- was carried out on CENIBRA properties over this sis of long-term indicators. period to define the monitoring points. Such initial studies were followed by systematic monitoring as Chart 6 shows the regions and wildlife monitoring of 2005 to identify and characterize the wildlife in projects underway. Those projects selected for lon- the study areas. Originally, the target was to cover g-term monitoring are shown in bold letters.

REGION PROJECTS Marola, Garapa, Fábrica, Cajá, Marcocem, Ipabinha, Belo Oriente Caxambu, Trevo, Baixada do Cajá, Córrego do Brejo, Água Suja, Tamanduá. Córrego Novo, Lagoa Nova, Lagoa Perdida, Lagoa Piau, Ipaba Lagoa Silvana, Beira Rio, Macedônia, Rio Branco, São Lourenço, Ribeirão do Boi, Cordeiros, Boachá. Ipanema, São José, Córrego dos Machados, Córrego dos Vieira, Barbosão, Ribeirão Grande, Caladão, Achado, Cocais 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 Santa Bárbara Hosken, 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 Sabinópolis Canoa II, Babilônia I, Babilônia II, Aeroporto I, Anta, Panorama, Tucano, Sabinópolis II, Amância.

Chart 6: Regions covered by wildlife monitoring and the respective reforestation projects in which the sampling points were located. Projects selected for long-term monitoring are shown in bold letters. The main objectives of wildlife monitoring are: • Generating useful information to be given to the communities to encourage wildlife and • Monitoring the population of bird and large environmental protection; mammalian species on Company properties; • Comparing bird and mammal species richness • Identifying the occurrence of bird and large with the results of previous surveys. mammalian species that are endemic, rare, and/or in danger of extinction; Considering the monitoring campaigns within all CENIBRA properties until 2019, 381 bird species • Investigating the occurrence of migratory or and 43 medium and large mammalian species seasonal species; were recorded. Out of this total, 28 bird and 12 • Providing information about the biology and mammalian species are included on official lists of ecological relationships of monitored species; species in danger of extinction. • Investigating the bird and mammalian commu- The figure below shows the richness growth curve nity structures as a function of the diet classes of bird species recorded within CENIBRA properties in the monitored areas; since the beginning of the wildlife monitoring program in 2003.

BIRDS - Total number os species 31 371 371 360

311 311 311 300 305 310 25 250 250 255 255 240

154

3 4 5 0 0 0 06 07 0 09 10 1 2 3 4 5 6 7 9 0 0 0 0 0 0 0 0 01 01 01 1 1 1 1 1 01 2 2 2 2 2 2 2 2 2 2 2 20 20 20 20 20 2

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

The figure below shows the growth curve of medium and large mammalian species found on CENIBRA properties from 2003 through 2019.

MAMMALS - Total number os species 43 41 39 39 39 40 40 40 40 40 36 36 36 36 36 34

3 4 5 6 7 9 0 1 2 3 4 5 6 7 9 00 00 00 00 00 00 00 01 1 1 1 1 1 1 1 1 2 2 2 2 2 2 2 2 20 20 20 20 20 20 20 20

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

30 Public Summary of the Forest Stewardship Plan Charts 7 and 8 list the bird and medium and large mammalian species currently in danger of extinction on CENIBRA properties.

COPAM MMA IUCN SPECIES 2010 2014 2016 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 melanoleucus Black-and-white hawk-eagle EN Spizaetus tyrannus Black hawk-eagle EN NT Amadonastur lacernulatus White-necked hawk CR Jacamaralcyon tridactyla Three-toed Jacamar NT VU Malacoptila striata Crescent-chested puffbird NT Pteroglossus bailloni Saffron toucanet VU NT Primolius maracana Blue-winged macaw NT Aratinga auricapillus Golden-capped parakeet NT Amazona farinosa Mealy Amazon CR NT Amazona vinacea Vinaceous Amazon VU VU EN Formicarius colma Rufous-capped antthrush VU Drymophila ochropyga Ochre-rumped antbird NT Eleoscytalopus indigoticus White-breasted tapaculo NT Phibalura flavirostris Swallow-tailed cotinga VU NT NT Lipaugus lanioides Cinnamon-vented piha NT NT NT Pyroderus scutatus Red-ruffed fruitcrow NT NT Sporophila frontalis Buffy-fronted seedeater EN VU VU Sporophila angolensis Chestnut-bellied seed-finch CR Amaurospiza moesta Blackish-blue seedeater VU Cyanoloxia brisonii Ultramarine Grosbeak NT

Chart 7: Birds 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 NT 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

Chart 8: Mammals in danger of extinction recorded in CENIBRA land.

The following conclusions can be drawn from the 381 bird species and 43 medium and large wildlife monitoring carried out to date: non-flying terrestrial mammals recorded so far translate the great wildlife potential of sur- • To date, study findings stress the important role veyed regions. played by wildlife corridors between existing vegetation remnants in CENIBRA’s eucalyptus • The diversity of forest, campestral, and aquatic plantation areas and neighboring conserva- (lacustrine and swampy) biotopes within CE- tion areas in supporting local biodiversity. A NIBRA properties provide important food re- study by Barlow et al. (2007) on a number of sources for wildlife in general. The existence taxonomic groups indicated that 47% of the of places for shelter, nesting, breeding, and species found in primary forests were also fou- watering contribute to the abundance of bird nd in eucalyptus plantations, 11% of which and mammal species. were found solely in eucalyptus areas, attes- ting to the importance of these planted fo- • Endemic, endangered, vulnerable, and migra- rests to wildlife, provided local native forests tory species continue to be observed and mo- are kept intact. nitored in the surveyed regions.

• CENIBRA properties feature great richness of birds and medium and large mammals. The

32 Public Summary of the Forest Stewardship Plan WATER RESOURCES

Assessing and monitoring water quality is vital for pasture lands, eucalyptus plantations, and native the environmental, social, and economic sustaina- woods. An innovative approach in terms of dura- bility of any forest-based company and the human tion and number of environments studied in Bra- populations that rely on such water resources. Loss zil, this long-term survey aimed at quantitatively of soil fertility is an increasingly concerning issue and qualitatively characterizing water bodies un- and is directly linked to the water issue. Soil use der the influence of different land uses and com- approaches that ensure freshwater ecosystem con- paring them. After the first five years, more than servation play a major role in the improvement of 33,000 pieces of physical, chemical, biological, the general water supply conditions. and ecological data had been collected by under- graduate students in Environmental and Sanita- With this in mind, UNILESTE/MG (University Cen- tion Engineering and Biological Science under the ter East Minas Gerais) and CENIBRA entered into guidance of the University’s professors. Moreover, a partnership agreement in June 2001 to deter- this partnership provided support for the installa- mine the water quality and quantity in the middle tion of an Environmental Research Laboratory at reaches of Doce River by comparing the ecolo- Unileste (MG) in Coronel Fabriciano. gical conditions of water streams and ponds in For checking and control purposes, ten creeks and The new study cycle will compare drained waters five ponds were selected in the region. They drain under different stewardship conditions, such as the waters of: the water streams’ slope, percentage of eucalyptus plantation in the studied basins, percentage of areas • Areas with native woodss: Vai-e-Vem Creek, allocated to conservation, road density in the stu- Environmental Preservation Areas of Jaguara- died basins, watershed land slope classes, basin al- çu, Cascatinha, Pedra Pond, and Carioca Pond. titude, and impact of eucalyptus-related operations on water streams, along with other aspects. • Areas with eucalyptus plantations: Mace- dinha Project, Rubro-negro Project, Córrego The qualitative and quantitative comparison of Grande Project, Batinga Project, Rio Branco water drained under such different conditions will Project, Cristal Pond Project, and Hortência indicate which operations and stewardship intensi- Pond Project. ties have the greatest impact on water resources, in addition to providing input for developing actions • Pasture areas: São Mateus creek, P1 Creek, intended to mitigate or eliminate them. and Redonda Pond. This monitoring is being carried out on a monthly This study made very clear one of the most sig- basis and is currently covering two drainage ba- nificant characteristics of eucalyptus plantation as sins where other quantitative parameters are alre- practiced by CENIBRA. It demonstrated that the ady monitored, such as: rainfall, water stream flow, quality and quantity of waters drained in eucalyp- and groundwater level. Therefore, such quantitative tus planted areas are higher than those of waters data will be taken into account when reviewing the drained in pasture areas and quite similar to those bio-monitoring information gathered by UNILES- of waters drained in areas entirely covered with na- TE’s Environmental Engineering Department, which tive vegetation. will provide better input and enable more complex analysis of monitoring results. The work involves Once it was understood that this question had monitoring of environmental variables of lotic aqua- been satisfactorily addressed, CENIBRA adopted tic ecosystems at CENIBRA’s eucalyptus plantations a new monitoring approach as of 2010. Studies in the Doce River basin. Chart 9 below shows the were started to provide input to improve forest chemical variables taken into consideration and res- stewardship. pective reference methods:

ANALYZED VARIABLE REFERENCE METHOD Total alkalinity (mg.L-1) Standard Methods WEF, AWWA, APHA, 21ª ed., 2005, 2320 B Chlorophyll -a (μg.L-1) Standard Methods WEF, AWWA, APHA, 21ª ed., 2005, 10200 H Electric conductivity Multi-parameter probe HANNA 9858 (μs.cm -1) Apparent color Spectrophotometer MERCK, Spectroquant, method 032 (mg Pt.L-1) 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 NO3- (mg.L-1) MERCK, 1.14563.0001 Dissolved oxygen Sonda Multip. HANNA 9858 (mg.L-1) MERCK 1.14848.0001 P-total (mg.L-1) Standard Methods WEF, AWWA, APHA, 21st edition, 2005, 4500 E

Chart 9: Physical and chemical variables analyzed in water samples.

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

Chart 9: Physical and chemical variables analyzed in water samples.

It was not possible to systematically obser- ve 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 absor- bing or even eliminating 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 nonconformi- ties with the legal limit established for freshwater class 2 (CONAMA Resolution 357/2005 and Joint Regulatory Decision COPAM/CERH-MG 01/2008) were detected. This is further reinforced by the presence and representativeness of species of pollution-sensitive benthic macro-invertebrates, such as those of Limnephilidae and Helichopsy- chidae families (order Trichoptera) and Leptophle- biidae 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 stewardship. However, it should be planned and domain, whose remnants both inland and at the implemented in a way that ensures the mainte- seashore are subject to special protection policies nance or improvement of the conservation values. according to Brazilian legislation. All forest areas and other forms of natural vege- The Atlantic Forest is considered a major priority tation are highly valuable from the social and en- in terms of biodiversity conservation in the Ame- vironmental standpoints, as they protect water- ricas. It is in a critical situation and its coverage sheds, host endangered species, and provide local area has been reduced to approximately 7.6% of communities with a space for their customary use. its original area, which totaled 1,306,421 km2. Sites where such values are deemed exceptional or critically important can be defined as HCVA. Spread over 17 Brazilian states, this biome consists of several quite diversified phytophysiognomies In the case of Social HCVA, a comprehensive con- determined by the proximity to the coast, relief, sultation with communities within the Company soil type, and rainfall regimes. Such characteristics properties was carried out in 2019. The goal was gave rise to the development of a wealthy biotic to deepen the knowledge about the community complex of a forest nature. In spite of considera- needs and values in those areas that are impor- ble devastation, the Atlantic Forest still preserves tant, exceptional, or critical for such communities. a significant portion of Brazil’s biological diversity, with very high levels of endemism. In this context, Such attributes confer upon these areas the sta- CENIBRA’s natural vegetation areas are deemed tus of “High Conservation Value Areas”. In these very important, and the Company treats them ac- areas, in addition to the regular monitoring con- cordingly, particularly in terms of their protection ducted by the company, specific monitoring ac- and improvement. tivities are carried out with an aim to ensure the maintenance or improvement of the identified The designation of a forest or area as High Con- attributes. servation Value Areas (HCVA) does not prevent its

36 Public Summary of the Forest Stewardship Plan High Threats and Impact on Monitoring / Description Conservation Conservation Measures Aspects HCVA Frequency Value Attribute

a) Mosaic forest stewardship, with tracts of different ages, to ensure lower-impact stewardship operations; b) Identification in operation maps; c) Vehicle traffic restrictions in areas adjacent to the HCVA; d) Enhanced protection against illegal hunting and fishing, and forest fires, including horse patrol; e) Environmental education campaigns and projects involving local schools and using endan- Monitoring of anthropic PNHR Macedonia HCV 1 - Impor- 1. Forest fires 1. Loss of biodi- gered species as a protection actions: continuous Farm – Macedonia tant area for spe- 2. Predatory hunting versity icon; Fauna and flora monito- Project – RD cies conservation f) Communication with neighbors ring: yearly and environmental education to forest workers; g) Construction and maintenance of firebreaks at property boundaries; h) Specific measures stipulated in the operational procedures aiming to enhance conservation or minimize environmental impacts, such as taking care to prevent eucalyptus trees from falling over native vegetation, clearance between wood piles to allow for wildlife mobility.

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

a) Periodic road maintenance using HCV 4 & 5 - Are- soil conservation techniques as and resources 1. Fires 1. Silting of b) Mosaic stewardship of fundamental 2. Riparian forests Qualitative water moni- Mirassol Community water bodies c) Consider the presence of water importance 3. Chemicals trans- toring: annual Soil cover Water In-take – and springs spring in the TEESP to meet local portation monitoring through Pompéu Project – RD 2. Water conta- d) Identification in operating maps communities’ 4. Municipal landfill satellite imagery: TEESP mination e) Open dialogue with communi- needs – water of Açucena ty, employees and outsourced intake personnel about HCV;

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

Chart 10: List of High Conservation Value Attributes at CENIBRA’s land.

Public Summary of the Forest Stewardship Plan 37 High Threats and Impact on Monitoring / Description Conservation Conservation Measures Aspects HCVA Frequency Value Attribute

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

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

TEESP: According to schedule a) Mosaic stewardship; Soil cover monitoring 1. Fires b) Property security; through satellite ima- HCV 6 - An 2. Riparian forests c) Operating patrols gery: annual annual Gathering 3. Chemicals trans- d) Implementation of preventive Annual Meeting of the of Waters takes 1. Silting of Teobaldo Pond – portation measures to combat fire; Friend of Teobaldo Pond: place at Teobaldo water bodies Lagoa Teobaldo and 4. Chemical control e) Identification in operating maps annual Pond and has and springs Bocaina Projects of shrub compe- f) Prioritizing forest restoration to Communication with particular histo- 2. Water conta- – NE tition create wildlife corridors; stakeholders about rical and cultural mination 5. Loss of access to h) Open dialogue with communi- forest stewardship acti- importance for cultural values ty, employees and outsourced vities to be carried out the community. and resources personnel about HCV; in the Teobaldo Pond i) Signage. region Monitoring of anthropic actions

Communication with 1. Deterioration stakeholders about HCV 6 - The 1. Fires of sites of cul- forest stewardship acti- straw of Indaiá 2. Chemical control tural, religious a) Property security vities to be carried out Indaiá Project – coconut tree has of shrub compe- or traditional b) Open dialogue with communi- in the region of Cocais: Region of Cocais critical cultural tition importance ty, employees and outsourced whenever required – NE and economic im- 5. Loss of access to 2. Loss of cul- personnel about HCV; Continued support to portance for local cultural values tural identity the Social Indaiá Project communities and resources and value. Monitoring of Indaiá coconut tree regeneration

Chart 10: List of High Conservation Value Attributes at CENIBRA’s land.

38 Public Summary of the Forest Stewardship Plan HCVA PNHR macedonia farm

Presence of several native flora and fauna species a seasonable basis since October 2004. Over this in danger of extinction. A pioneering project of period, campaigns were carried out in the direct reintroduction of birds in danger of extinction, and indirect area of influence of the HCVA, co- such as red-billed curassow, solitary tinamou, vering the whole biological cycle of the avifauna, Black-fronted piping guan, and spot-winged i.e., taking into consideration seasonal weather wood-quail. This farm provides excellent condi- factors. tions for fauna studies aimed at understanding the species reintroduction process, as well as flo- To date, such monitoring detected 272 bird spe- ra and phytosociological surveys on Atlantic Fo- cies, which account for 35% of the species alre- rest remnants. A trail and other facilities are used ady recorded in the state of Minas Gerais. Out of in environmental interpretation and educational this total, 16 species are included in official lists activities. According to the Minas Gerais Biodi- of bird in danger of extinction. These figures ex- versity Conservation Report, the area is consi- press the avifaunistic potential of HCVA Macedo- dered as having high biological importance and nia Farm. priority for flora conservation and very high importance and priority for mammal conservation. Regarding mammalian fauna, 59 species have been registered in the HCVA Macedonia Farm. The effectiveness of such measures is assessed Eight of these species are officially listed as threa- through yearly environmental monitoring results. tened bird species. The corresponding results make it possible to check how effective the adopted measures have The figures below show the richness of bird and been in maintaining or enhancing the biodiversi- mammal species in the region of the HCVA PNHR ty conservation attributes of the monitored area. Macedonia Farm over the monitoring period.

Wildlife inventory and monitoring have been conducted at HCVA PNHR Macedonia Farm on

NUMBER OF BIRD SPECIEST AT PNHR 272 MACEDONIA FARM 244 244 214

157 161 147 14 14 150 152 13 140 146 106

3 04 5 06 7 9 0 1 2 3 6 7 9 00 0 00 0 00 00 00 01 01 1 1 1 1 1 1 2 2 2 2 2 2 2 2 2 20 20 20 20 20 20

Figure 8: Growth in the number of bird species in the HCVF PNHR Macedonia Farm and surroundings over the monitoring period.

Public Summary of the Forest Stewardship Plan 39 NUMBER OS MAMMAL SPECIEST PNHR 59 MACEDONIA FARM

31 31 31 27 27 27 27 2 2 24 24 25 25 25

03 4 5 6 7 9 0 1 2 3 6 7 9 0 00 00 00 00 00 01 01 1 1 1 1 1 1 20 20 2 2 2 2 2 2 2 20 20 20 20 20 20

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

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

40 Public Summary of the Forest Stewardship Plan Fonseca Paleobotanic Site – HCVA forest tract No. 395 of Jatobá I Eucalyptus Planta- tion Project, in Cocais. This community is located Area with an important paleobotanical site con- in the municipality of Antônio Dias and the ceme- taining fossils of extinct pteridophytes and an- tery occupies an area of 895 m². giosperms, as well as insects, pollens, and great diversity of plant species. This site is referenced in several publications in the field of paleontolo- Ilhéus do Prata Community Cemetery – gy, especially paleobotany. A number of research HCVA projects have been carried out at this HCVA by major Brazilian universities and it has a potential The community of Ilhéus do Prata is populated by for new studies. approximately 90 families and belongs to the municipality of São Domingos do Prata. The community cemetery is located in the forest tract No. 1 of Indaiá Project – HCVA the Cachoeira Santa Maria project and occupies an area of 1,319 m². The “Indaiá Project” is a multidisciplinary program developed by artisans from communities of several districts in the municipalities of Antô- Teobaldo Pond – HCVA nio Dias and Coronel Fabriciano. This Project’s main activity is the making of handicrafts from This HCVA hosts native forests in aquifer rechar- the straw (leaves) of the Indaiá coconut tree. The ge areas that are responsible for part of the su- Association has 20 members and a steady crafts- pply of the Teobaldo Pond, located between the manship, which expresses the culture and history eucalyptus plantation projects Lagoa Teobaldo of a people and is currently seen as a social inclu- and Bocaina and a third party’s property. Such sion factor and an addition to the income of se- forests also protect the banks of the pond, a veral Brazilian communities. In Cocais, the straw is collected only from young leaves of the Indaiá place of great cultural, historical, religious, and coconut trees in the regeneration stage, but it is environmental importance for local residents. It not limited to CENIBRA’s properties, which makes is a rare ecosystem (natural lake at an altitude of it difficult to delineate a precise area of collection. 1000 m) capable of supporting studies in various areas of the natural sciences. The Gathering of Waters of Teobaldo Pond is an annual event that Mirassol Community Water In-take – HCVA turned 20 in 2019.

Surface water is taken from the Mirassol Cre- According to environmentalist Cláudio Guerra, ek between forest tracts No. 56 and No. 60 in the Teobaldo Pond gained visibility because of the Pompéu Eucalyptus Plantation Project in the scientific research carried out by UFMG from 1996 Rio Doce Regional Unit to supply the Mirassol community in Açucena. to 1998, which had great support from the local community. In 1999, the pond was visited by the Approximately 70 households and the Municipal Piracicaba Expedition 300 Years Later, on which School Padre Félix are supplied with this water, occasion the Mass of Waters was celebrated on but not all houses have a water filter. its banks, with the attendance of more than 500 people. Thereafter, a group of friends and people The 1.98 liters/second water flow is not enough interested in the pond preservation started to or- to supply the entire community. ganize the Annual Gathering by its banks.

In 2003, the Association of Friends of Teobaldo Cocais das Estrelas Community Cemetery – HCVA Pond (AALT in the Portuguese acronym) was created. In 2004, CENIBRA removed all eucalyptus The cemetery of the Cocais das Estrelas commu- trees from the banks of the pond and planted nity, composed of 102 families, is located in the around 5,000 native species of trees.

Public Summary of the Forest Stewardship Plan 41 PNHR Feliciano Miguel Abdala – HCVA Fernandes Community Cemetery – HCVA

The Vista Alegre farm, located in the municipality Located in the municipality of Ferros, the Santana of Ipanema, and the Paraíso farm, in the munici- de Fernandes community, composed of 34 fami- pality of Caratinga, participate in the Forestation lies, is facing the Fernandes Eucalyptus Plantation Incentive Program for Farmers. They border the Project. The local cemetery is active and occupies Private Natural Heritage Reserve (PNRH) Feliciano an area of 764 m² in the preservation area of the Miguel Abdala, the habitat of the woolly spider Fernandes Project’s forest tract No. 121. monkey (Brachyteles hypoxanthus), also known Among the HCVAs described above, the Fonseca as northern muriqui. This species is deemed “cri- Paleobotanic Site, Mirassol Community Water In- tically endangered” and is on the red lists of both -take, Cocais das Estrelas Community Cemetery, the International Union for Conservation of Na- Ilhéus do Prata Community Cemetery, Fernan- ture and IBAMA (the Brazilian Institute for the des Community Cemetery, and Lagoa Teobaldo Environment and Renewable Natural Resources). were rated as special attribute sites in 2020, af- The owners of these farms recognize the special ter a study was updated to identify, characterize, condition for biodiversity conservation of this and monitor these areas. Therefore, the monito- PNRH and are given guidance on precautions to ring campaign will already be effective next year be taken aiming at the stewardship and protec- and its results will be shown in the 2021 Forest tion of their forests. Stewardship Plan.

42 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 sensi- tization 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 integrate 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 43 SOCIAL AND LABOR MANAGEMENT

HUMAN RESOURCES POLICY

Through its Human Resource Policy, CENIBRA pursues the best market practices in terms of sa- laries, benefits, training, and development, com- parable to those adopted by companies of similar size and operations. In this sense, the Company’s aim is to attract and retain people that are aware of the challenges posed by professional growth, while offering equal recognition and professional RECRUITMENT, SELECTION, development opportunities. AND COMPENSATION

The Human Resources Department’s main guide- In its quest for quality personnel, CENIBRA has line is acting as a transformation agent. It deals adopted the most modern selection methods the Company’s Human Resources as a compe- with an aim to achieve excellent employee/com- titive edge and turns information into shared pany interaction. knowledge. The internal recruitment policy aims to value cur- The Human Resources Department focuses on rent employees by giving them the opportunity Policies and Practices that provide employees for career progress. When internal recruitment is with improvement opportunities, integrity, and not feasible, the Company uses its CV database, well-being. priority being given to applicants from the region, as well as people with special needs. The Corporate Human Resources Planning is a dynamic process of human organization manage- CENIBRA’s compensation policy is based on col- ment in interaction with the Company’s business lective bargaining agreements and yearly market expectations. The Human Resources area contri- research conducted by the industry players’ Hu- butes to the accomplishment of the organizatio- man Resources Group. In addition to fixed remu- nal objectives as it offers management a tool to neration, the Company offers incentive programs attract, retain, and develop employees, as well as linked to the achievement of established goals, anticipate their needs, while fostering their moti- including Earnings and Profit Sharing. vation, so as to provide the organization with the highest quality levels. CENIBRA enjoys a friendly relationship with labor unions and, in addition to direct jobs, generates The subsequent paragraphs describe the main as- numerous indirect jobs and services to the benefit pects of the Company’s Human Resources Policy. of workers and their dependents.

44 Public Summary of the Forest Stewardship Plan Area Gender Number of Employees Men 3 Directors Women 0 Men 20 Managers Women 0 Men 63 Coordinators/Specialists Women 15 Men 78 Administrative Women 80 Men 341 Industrial Operations Women 12 Men 2.658 Forestry Women 134 Men 484 Wood harvesting Women 1 Men 29 Wood transportation Women 0 Men 229 Maintenance Women 10 Men 306 Others Women 141 Total 4.604

Table 4: Number of employees at CENIBRA, 2019.

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 ployed through outsourcing arrangements, the innovations in production processes into a man- outsourcing contracts are drawn up and mana- datory strategy to ensure society’s sustainable pro- ged in such a way so as to ensure compliance gress. In this sense, the modernization of the plan- with labor laws and occupational health and safe- ted forest industry is a natural solution, which has ty requirements. Compliance with the contractual been gradually implemented and reaped undenia- provisions is monitored by the CENIBRA team. ble benefits. Such modernization involves not only infrastructure investments, but also improvements CENIBRA reiterates its permanent commitment in the human resources management model. to compliance with any legislation, regulation, standard, undertaking charter, and codes of good The need for aligning forestry technologies to practice that are of either voluntary or mandatory market challenges has favored the implementa- application to the aspects of quality, environment, tion of a new process by CENIBRA to obtain its safety, human rights, ethics, and social responsi- raw material. The new process involved an increa- bility in every activity performed by CENIBRA or se in the Company’s personnel headcount, inclu- its contractors, as provided for by its “Integrated ding the hiring of a significant portion of the con- Management System Policy”. tractors’ personnel assigned to forestry activities.

Public Summary of the Forest Stewardship Plan 45 OCCUPATIONAL HEALTH AND ducts occupational medical examinations (hiring, periodically, change of job, and return to work) SAFETY on all employees. Other activities include the campaign against the Aedes Aegypti mosquito, distri- CENIBRA adopts occupational health and safety bution of banners in working areas with guidance management best practices to protect employe- on precautions against bees and wasps, flu vac- es’ health and physical integrity. This is achieved cination and anti-drug campaigns, spotted fever by complying with applicable technical and legal and STD/AIDS prevention campaigns, and medi- requirements (Ministry of Economy’s Regulatory cal consultations. The need for changing one’s Standards, ABNT technical standards and Forest behavior and adopting a healthier life style is also Certification, among others) and conducting pre- among the themes addressed when discussing emptive actions, training, and hazard surveys. health topics and guidance.

In order to identify and rate work-related risks in CENIBRA carries out studies on workplace ergo- terms of their magnitude (mild, moderate, or cri- nomics and work environments and implements tical) and implementation of the required actions improvements as required and indicated by such to block and control risks, CENIBRA has written, studies. formal procedures that are available to all employees. In addition, Company’s top management CENIBRA adopts occupational health and safety adopts the following guideline as a fundamental management best practices with a view to rein- principle: “IF SOMETHING CAN’T BE DONE SA- force the safety culture as an important factor to FELY, DON’T DO IT”. add value to business.

Existing hazards and risks at each organizational Every year, the Company promotes several health- unit are described in specific spreadsheets as a -related campaigns addressing both general and means of following up and monitoring the requi- specific topics of interest with the goal of enhan- red controls. cing employees’ awareness about disease prevention and quality of life. Should hazardous conditions or near misses be detected in processes and workplaces or during CENIBRA provides all employees with training in the execution of an activity, a formal method ba- occupational health and safety so that every acti- sed on written procedures and specific forms is in vity is carried out under suitable, safe conditions place to record the problem and the measures to and in line with all applicable technical and legal solve it, without necessarily identifying the repor- requirements. ting employee. The training & development program maps all In cases in which an employee faces or is put in existing positions in the company and takes into serious, imminent risk of accidents or diseases consideration hazards and risks associated with that could harm his or her physical integrity or each position, as well as applicable legal and te- health, another written, formal procedure entitles chnical requirements, to plan and implement the him or her to the Right to Refuse to Work. Should required training courses. the manager and the subordinate employee fail to reach a common solution to the problem, tech- The following actions in 2019 deserve to be hi- nical professionals from the Occupational Health ghlighted: basic dental care at the regional units and Safety department should participate, analy- through a mobile dental office, implementation ze the situation, and provide guidance on proper of the “quit smoking” program followed up by a actions to be taken. multidisciplinary occupational health team, preliminary risk assessment of all activities, occupatio- CENIBRA maintains a team of specialized occu- nal health and safety campaigns to enhance em- pational health professionals made up of doc- ployees’ and service providers’ awareness about tors, nurses, nursing technicians, dentist, speech disease and accident prevention, occupational therapist, ergonomist, and physical education health and safety dialogues, workplace exerci- instructor. ses and work breaks, several actions carried out by Internal Committees for Rural Work Accident This highly qualified team systematically monitors Prevention (CIPATR), promotion of the Rural Work employees’ health through the Occupational He- Accident Prevention Week in integration with alth Medical Control Program, periodically con- contractors, including speeches and actions to

46 Public Summary of the Forest Stewardship Plan enhance the workers’ awareness of safety as a own safety”, “I help take care of my co-worker’s fundamental value of life, conduction of routine safety”, and “I allow my co-worker to help me occupational health and safety inspections and take care of my safety”. audits, occupational health and safety patrol by process managers under guidance by professio- Results nals from the Specialized Service of Rural Work Safety and Health (SESTR), statutory and opera- CENIBRA and its service providers have conduc- tional training on occupational health and safety, ted a number of occupational health and safety adaptation of agricultural and forestry machinery initiatives, including training courses, speeches, and equipment to the Labor Ministry’s protection campaigns, workshops, safety dialogues, risk regulations (NR-12 and NR-31), continuation of and hazard assessment, routine inspections, au- training and monitoring of light and heavy vehicle dits, health month, and dental assistance, among operators with respect to defensive driving on pa- other events and actions. It makes use of methods ved and unpaved roads. fitted to the employees’ understanding, with the ultimate objective of enhancing knowledge about The employee “Safe Behavior” training program the issues concerning the workers’ life and the stands out when it comes to ensuring compliance physical integrity and quality of life of everyone with all occupational health and safety rules and involved in forest stewardship activities. procedures. Charts 11 and 12 show the number of Work Sa- This program also focuses on the dissemination of fety and Occupational Health training courses and the “Active Care” concept, reinforcing the impor- actions carried out in the company’s forestry area tance of an approach based on “I take care of my during 2019.

Number of Subject training events 1 12th Absenteeism and Professional Rehabilitation Congress 1 17th Technical Internship Seminar 137 1st Operational Evaluation of Forestry FW Machines 162 1st Operational Evaluation of Forestry HV Machines 1 2nd Technical Forestry Seminar 5 23rd Integrated Work Accident Prevention Week, 2019 – FOOL Circus 5 23rd Integrated Work Accident Prevention Week, 2019 – Active Care 5 23rd Integrated Work Accident Prevention Week, 2019 – Opportunities 5 23rd Integrated Work Accident Prevention Week, 2019 – the Magic of Safety 91 2nd Operational Evaluation of Forestry Machines 151 2nd Operational Evaluation of Forestry FW/FG Machines 1 2nd Operational Evaluation of Forestry HV/HG Machines 1 3rd Technical Forestry Seminar 1 Lockout Actions – Incident Presentation 1 Prompt Actions During a Fire Outbreak 2 Introduction to Office 365 32 Safety During Fertilizer Application 8 Venomous Animals, Wildlife

Chart 11: Occupational Health and Safety Actions.

Public Summary of the Forest Stewardship Plan 47 Number of Subject training events 4 Learning How to Practice 5S 1 Equipment Checklist – Tractor Operator’s Duties 17 Selective Waste Collection 8 Monthly Occupational Health and Safety Dialogue 5 Disclosure of Forestry Monitoring Riding a Mule 1 Disclosure of Operational Information – Leaders 18 OJI Disclosure of Fatal Accidents 1 Basic Electricity 2 Meeting on Controlled Wood Qualification 1 Management System Functions – Legal Requirements 1 Non-conformity Management – General Analyst 1 Precision Forestry Management 1 Innovation: Concept, Attitude and Identity 4 Inspection and Control of Fire Extinguishers/Hoses 7 Family-company Integration 2 Interpretation of Electric Schemes 3 Environmental Legislation Applicable to Industrial/Forestry Activities 7 Occupational Risk and Hazard Survey and Assessment 4 Survey on Social and Environmental Aspects 32 List of Environmental Impacts and Aspects 1 Safety Measures When Applying Herbicides 1 Safety Measures Against Sun Radiation Exposure 27 NR 01 – Application of Service Order 4 NR 05 – Risk Mapping 4 Hexagon Precision System Operation 172 Miscellaneous Operational Guidance 1 OSHE Events in the eSocial system 2 Manual Irrigation Using Tank Trucks 16 Forest Fire Fighting and Prevention 28 Stork Project 1 Technical Forestry Recommendation 1 GRD – DECOL Seminar 1 GRD – DESIL Seminar 1 GRS – DT Seminar 1 2019 Seminar Results – DECOL-L 1 Technical Forestry Seminar 5 Manual Harvesting Signage 1 Workshop on Internal IMS Audit 1 Coaching Workshop

Chart 11: Occupational Health and Safety Actions.

48 Public Summary of the Forest Stewardship Plan Number of Subject training events 1 Workshop on Safe Behavior – Chain Saw 1 Workshop on Organization Context 1 Occupational Health and Safety Workshop 1 DECOL-M Workshop 1 DEMAQ-M Workshop Workshop on Safety Management for Sulfuric Acid Transportation 1 and Disposal 1 Workshop on Departmental Portal 1 Social and Environmental Workshop – FSC and CERFLOR 1 19th Brazilian Remote Sensing Symposium 1 25th LUFRO World Congress 1,009 health and safety activities in total. Chart 11: Occupational Health and Safety Actions.

Number of Subject training events 40 Venomous Animals, Wildlife, and First Aid 2 Customer Service 1 Alignment / Marking Activities 1 Wood Transshipment Using TMO Equipment 35 FSC and CERFLOR Chain of Custody 1 Coaching 29 Code of Conduct and Compliance 3 Fighting Leaf-cutting Ant 7 Forest Fire – Fire Brigade 8 Basic Training on Forest Fire Fighting 28 Corporate Compliance 1 Safe Behavior 1 Oregon cutting assembly 2 Progressive Firebreak Conservation 2 Challenging Talks 4 Traveling Across Steep Terrain – Chain Saw 45 Traveling Across Steep Terrain – Carrying Tools 20 Occupational Health and Safety Dialogue 26 Defensive Driving – Unpaved roads 8 Disclosure of Procedure P0562 1 Enneagram – Unleashing Your Potential 3 Feedback 1 Internal Audit Training – Forest Stewardship 5 Training for Forest Fire Brigade Members Chart 12: Occupational Health and Safety Training.

Public Summary of the Forest Stewardship Plan 49 Number of Subject training events 2 Forest Observer Training – General 2 Change Management 1 Time Management 1 Negotiation Skills 1 Basic Hydraulics 11 On-boarding Newly Hires 1 Emotional Intelligence 1 Interpretation of Standard ISO 45001:2018 2 One-Point Lesson – Main Prompt Actions 3 One-Point Lesson – Fuel Recording 9 One-Point Lesson – Going Downwards 1 One-Point Lesson – Proper Cabeçote Position 15 One-Point Lesson – Forestry 3 One-Point Lesson 01 – Proper Use of Lockout Device 1 One-Point Lesson 02 – Remote Control Mode 1 One-Point Lesson 03 – Switching Off Opt. Screen 3 One-Point Lesson 04 – Use of Cortinas 2 One-Point Lesson 06 – Use of Service Break 1 One-Point Lesson 08 – Break Test 1 One-Point Lesson 09 – Using Anchoring Devices 1 One-Point Lesson 10 – Applying Pre-anchoring Arrangements 1 One-Point Lesson 43 – Proper Wire Rope Position 1 One-Point Lesson 49 – Going Downwards 1 One-Point Lesson No. 3 – Polyward displacement 3 Leadership 1 Clearing of Stumps, Manual Mowing, Thinning 43 Forest Certification and Stewardship – Manual M0008 2 Preventive/Corrective Firebreak Maintenance – Loss Mitigation 1 Hydraulic Maintenance of Forestry Machinery 1 Mechanical Maintenance of Forestry Machinery 1 Riding a Mule 1 Motivation and Engagement 1 Motivation and Interpersonal Relationship 2 Roller Table Motions 18 Basic Ergonomic Concepts 5 NR 35 – Rescue from Heights 38 NR 01 – Hearing Conservation Program 31 NR 06 – Personal Protection Equipment (PPE) 39 NR 10 – Electricity safety workshop 5 NR 11 / NR 12 – Safe Machinery and Equipment Operation 21 NR 12 / NR 31 – Safe Equipment Operation 38 NR 17 – Ergonomics – Manual Handling of Loads Chart 12: Occupational Health and Safety Training. 50 Public Summary of the Forest Stewardship Plan Number of Subject training events 2 NR 20 – Health and Safety When Handling Flammable Fuels – Intermediary 38 NR 23 P – Fire Prevention and Fighting 37 NR 26 – Safety Signals 1 NR 31 – Winch Anchoring 1 NR 31 – Safe Tractor Implement Operation 39 NR 31 – Herzo HV Work Winch Implement 81 NR 31 – First aid 40 NR 31 - Mowing for Fighting Ants 18 NR 31 – Chemical Mowing 4 NR 33 – Safety in confined spaces 12 NR 35 – Safety in works at height 6 NR 31 – Field Operation Practice – Tractor 40 Manual Firebreak Operation, Mowing and Thinning 17 Forwarder Operation 34 Harvester JD and Ponsse Operation 5 Virtual V - JD and Ponsse Simulator Operation 1 Operation of Agricultural Tractors and Forest Implements 1 P01039 – Electronic Monitoring Center 19 P01052 – Use of Electronic Equipment 38 P0188 – Solid Waste Management 28 P0331 – Technical Planning of Forestation Projects 54 P0341 – Forest Fire Prevention and Fighting 5 P0360 – Herbicide Application 24 P0371 – Implementation, Reformation, Maintenance, Regeneration 39 P0395 – Risk Prevention Analysis 26 P0398 PRE – Industrial Emergency Response Plan 27 P0437 – Leaf-cutting Ant Control 3 P0508 – Environmental Aspects and Impacts 30 P0604 PRE – Forest Emergency Response Plan 34 P0632 – Semi-mechanized Forest Harvesting 30 P0751 – Incident, Near Miss, Danger Condition 31 P0903 – Right of Refuse to Work 21 P0925 – Mechanized Harvesting – HV Winch in Slopes 5 P0955 – Motorized Ditching 80 P0960 – Mechanized Forest Harvesting 22 Risk Perception – Forestry Process 2 TEAL – Outdoors Experiential Training 4 Team Work 1 Training on Stump Cleaning 25 Portable Fire Extinguishers Training 1,516 health and safety training events in total Chart 12: Occupational Health and Safety Training.

Public Summary of the Forest Stewardship Plan 51 BENEFITS Integrated Management System. The objective is to ensure employees are fully aware of the re- CENIBRA offers its employees and their depen- quirements in terms of environment, quality, and dents health assistance through a self-managed prevention of significant environmental impacts, health plan, comprising a comprehensive, highly occupational health and safety while working at qualified assistance network, including hospitals, CENIBRA’s premises. doctors, dentists, drugstores, optometry, funerals, psychology, physiotherapy, phonoaudiology, psy- To ensure training effectiveness, integrated au- chiatry, and alternative medicine. dits check for contractors’ adherence to CENIBRA procedures and practices. Audits also determine the degree of employee awareness and familiarity In addition to health assistance, the Company with the Integrated Management System’s docu- provides supplementary benefits, such as: private mentation and other elements. pension fund, group life insurance, commuting, meals, daycare allowance, school kits up to high school for employees and their children from 6 to SOCIOECONOMIC PROFILE 18 years of age, Christmas basket, Christmas gifts for employees’ children up to 9 years of age, reim- OF CENIBRA’S AREA OF bursement of language school costs, and others. INFLUENCE

CENIBRA operates in 54 municipalities located in TRAINING, DEVELOPMENT, the Doce River basin and sub-basins of Santo An- tônio, Piracicaba, Suaçuí Grande, Caratinga, and AND QUALITY OF LIFE Piranga Rivers. Water from the Doce and Piracica- CENIBRA develops training programs that enable ba Rivers is used mainly for industrial applications. career development and support the employee in The region where CENIBRA’s eucalyptus forests overcoming challenges in a climate of coopera- are located has been used since the 1940s for tion, always in tune with market trends. In this this kind of plantation. A great expansion was sense, CENIBRA adopts far-reaching policies for seen from the 1960s onwards due to federal the qualification of its staff. tax incentives granted to this activity. CENIBRA’s Such activities are offered to all employees in ac- land is split into three regional units, namely Rio cordance with their institutional, legal, operatio- Doce, Nova Era, and Guanhães. Land use within nal, and development needs, so that the acquired the Company’s area of influence is as follows: capabilities are applied on the job. 54.05% occupied with pasture, 18.46% native forests, 11.42% forestry activities, 9.68% either Training is an important tool to speed up learning temporary or permanent agriculture; 6.39% not and improve managerial and technical qualifica- used or useless. tions and, as a result, it produces both behavioral and cultural changes in employees. Except for the larger cities, like Ipatinga and Go- vernador Valadares, the urban areas, particularly To ensure that both current and new employees, the districts, do not have suitable infrastructure in either temporary or permanent, as well as trai- terms of sanitation system, health services, edu- nees, become aware of the importance of quali- cation, and security. Precarious housing condi- ty, health, safety, and environmental protection, tions prevail, particularly in town outskirts. Many monthly training is given or internal meetings are roads, especially secondary roads in the country- held to address these matters from the standpoint side, were built and are maintained by CENIBRA. of the company’s integrated management policy, guidelines, and regulations. Retail business is not very active, with low turno- ver. Besides CENIBRA and the mining and steel Contract managers are responsible for making companies, employment options are municipal sure that contractors’ employees are given trai- public jobs. It is also worth mentioning charcoal ning to enhance their awareness about CENIBRA’s production, characterized by attractive prices and

52 Public Summary of the Forest Stewardship Plan guaranteed market. Charcoal is produced from CENIBRA’s area of influence is crossed from north wood wastes that do not meet the applicable to south by BR 381 highway, which is used for shi- parameters for pulp production, as well as other pping wood to the Belo Oriente pulp plant. Part wood sources existing in the region. of the wood harvested from farther areas is shipped through the Vitória–Minas railroad from the The degree of urbanization at the Company’s Re- Costa Lacerda train station in Santa Bárbara, and gional Units is as follows: in excess of 90% in Belo Drumond train station in Nova Era. This railroad Oriente region (Rio Doce Regional Unit), 87% in belongs to Vale and conveys mainly ores to the Nova Era Regional Unit, 75% in the region of region’s steelmakers and for export. Ipaba (Rio Doce Regional Unit), and 55% in Gua- Considering the Company’s position in the con- nhães Regional Unit. text of the Middle Doce River Basin, a mountai- nous region with original forest coverage, which The regional shortcomings contrast with the large is naturally suitable to forest plantation, CENI- inflow of resources to certain municipalities, par- BRA’s enterprise involves low-impact cultivation ticularly Ipatinga, Timóteo, and João Monlevade, and contributes to regional growth as it develops due to the presence of mining and steelmaking and transfers planted forest technology, besides industrial plants, and Belo Oriente, due to CENI- fostering job and income generation and bringing BRA’s plant, which generates a high taxation level. revenue into the country.

Public Summary of the Forest Stewardship Plan 53

CENIBRA INSTITUTE

CENIBRA’s Integrated Management System Po- ded on the pursuit of sustainable human de- licy sets forth the commitment to permanent velopment, and creates spaces for discussions dialogue with customers, suppliers, employees, and reflections, besides coordinating produc- communities, and other stakeholders. Commu- tive and institutional community organizations nication with stakeholders in the forestry field through: 1) Strengthening of the social fabric is a corporate task of the Communication, Envi- – promoting community qualification through ronment, and Relations with Community areas, representative organizations to occupy the dis- as well as CENIBRA Institute. There is a procedu- cussion spaces and formulate public policies; re to deal with communications received (ques- 2) Institutional strengthening – Strengthening tions, complaints, and requests) that sets forth of administrations, municipal councils, and tra- the action flow to be adopted when responding de councils aimed at achieving a more partici- to them. Specific requests for donations of wha- pative democracy and improved services for the tever nature are evaluated by CENIBRA Institute, population; 3) Strengthening of the Local and which issues an opinion and triggers the neces- Regional Economy – Definition and redefinition sary measures to be taken by the corresponding of the economic axes, coordination of the main internal areas. players taking as a benchmark the production chain analysis and organization of networks and The Company has a comprehensive community strategic alliances among micro and small entre- support program covering the 54 municipalities preneurs, so that they can play a part in the eco- in which it operates. Such a program is foun- nomy under competitive conditions. Created in 2003, CENIBRA Institute’s purpose is tal conservation, quality of life, and social equity, to encourage sustainable development as a pro- in a clear commitment to the future and solidarity cess of social change and an enhancement oppor- across generations. The Cenibra Institute’s guide- tunity for communities. It matches, in time and lines are as follows: space, economic efficiency, growth, environmen-

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 providers, goods suppliers, customers, and employees as partners and agents co-responsible for the implementation of the policies of the Institute members in their relations with community;

• 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.

56 Public Summary of the Forest Stewardship Plan AREAS OF INTEREST

Considering the characteristics, geographic dis- • Environment persion, and predominance of rural communities, • Social Promotion and Wealth Generation the Institute focuses on the following matters: • Emergencies/Contingencies • Culture Chart 13 below shows the Investment in Social • Health and Environmental Responsibility through social programs promoted by Cenibra Institute in line • Education with the United Nations (UNO) Sustainable Deve- • Sports and Leisure lopment Goals.

Public Summary of the Forest Stewardship Plan 57 GOALS PROJECT TARGET AUDIENCE 2019 ACTIONS

8. DECENT WORK AND ECONO- Beekeepers from 13 associations MIC GROWTH Partnerships with beeke- located in areas in which the Beekeeping Seminar epers 2. ZERO HUNGER AND SUSTAI- company operates. NABLE AGRICULTURE.

Farming partnership agreements with the municipalities of Belo Oriente, Caratinga and Ipaba 8. DECENT WORK AND ECONO- Family farmers from the were renewed up to 2024. Signage in areas under MIC GROWTH municipalities of Belo Oriente, Farming partnerships partnership agreements was updated. Training in Caratinga, Coluna, Ipaba and 2. ZERO HUNGER AND SUSTAI- greens production to family farmers under a part- Virginópolis. NABLE AGRICULTURE. nership agreement with SENAR. Monitoring and evaluation of all projects.

Public school teachers in the 4. QUALITY EDUCATION School of Life municipalities of Alvinópolis and Training to 102 teachers Catas Altas

“Movies Session” Project – The word and image are similar languages, hence teachers came up with the idea of promoting movies sessions. “Storytelling” Project – Reading and the many ways of promoting interaction and imagination. It is also an opportunity to enhance contact with books and foster the habit of reading. “We Are All Educators” Project – Capacity-building activities for teachers from the municipal Teachers, students, and commu- education system. Company-Community In- nity in the municipality of 4. QUALITY EDUCATION “Caravan of Joy” Project – Storytelling at the tegration Units (UNIECO) Peçanha, totaling 9,497 people square. in 2019 Origami Production and History – This Project’s goal is to support inmate’s re-socialization by providing them with leisure and learning opportunities. IT Room – Giving children and teenagers the opportunity to use a computer as a study tool, with the aim of helping them entering the job market. Library – Encouraging reading among children, youths and adults through a number of related activities.

Capacity-building workshops on entrepreneurship, Women from the district of São 8. DECENT WORK AND ECONO- pricing, sales, women’s empowerment, and bakery. Community Action Sebastião do Baixio, municipality MIC GROWTH Guidance on and follow-up of the election of the of Periquito. Association’s new management.

The Association won a tender to supply school lunches to the Federal Institute of Minas Gerais 8. DECENT WORK AND ECONO- Cotta's Bakery Associa- Women from the town of (IFMG), which was only possible due to measures MIC GROWTH tion Peçanha. taken by CENIBRA Institute to improve Cottas Community Association’s bakery facilities.

An agreement was entered into with Sebrae’s Handicrafts Program to train artisans from Ca- choeira Escura based on the diagnosis of scenery design and raw materials. Other activities included workshops on the Culture of Cooperation and Cooperation for Development to foster creativity and collaboration. CENIBRA Institute also provided 8. DECENT WORK AND ECONO- Handicraft Group of Ca- Men and women from the mu- support to the group’s participation in local and MIC GROWTH choeira Escura - GRACE nicipality of Belo Oriente. regional fairs to exhibit and sell its handicrafts, such as Expo Usipa, 5th Vale do Aço Tourism Fair, 2nd Gastronomic Fair of Belo Oriente, Homemade Crafts in Timóteo, Family Farming Fair in Ipaba, and Handicraft Fair in Coronel Fabriciano. SEBRAE will continue its activities and capacity-building actions in 2020.

Chart 13: Social programs promoted by CENIBRA INSTITUTE.

58 Public Summary of the Forest Stewardship Plan GOALS PROJECT TARGET AUDIENCE 2019 ACTIONS An agreement was signed with the Sabor Solidário (Solidarity Taste) Cooperative to upgrade the enterprise, including the purchase of equipment, 8. DECENT WORK AND ECONO- Women from the municipality of adaptations, and expansion of the bakery pro- Solidarity Taste MIC GROWTH Açucena. duction area, aiming to meet sanitary surveillance requirements. An opening ceremony took place in the Solidarity Taste Bakery’s new convenience and living space.

In 2019, funds were approved for the Weavers of Brumal group under the Cultural Incentive Law for their training and qualification. However, the Federal Government delayed the funds release and, 8. DECENT WORK AND ECONO- Women from the municipality of Weavers of Brumal as a result, few actions were implemented under MIC GROWTH Santa Bárbara (Brumal). this Project. The group participated in local fairs and also maintains a permanent exhibition at the Association's headquarters, near the access to the Caraça Ridge, a tourism area.

3. GOOD HEALTH AND WELL- 1,404 teens and youths from two towns in which CENIBRA Theater play and workshops on day-to-day situa- -BEING Health campaigns operates took part in the 2019 tions experienced by the target audience. 4. QUALITY EDUCATION Campaign.

Theater plays in the communities of Iapu, Mes- 6,342 people from the commu- 4. QUALITY EDUCATION Environment and Arts quita, Naque, Peçanha, Cantagalo, Guanhães, nity Antônio Dias, Ferros and Catas Altas.

6,693 people from Timóteo and 4. QUALITY EDUCATION Cenibra Mobile Participation in the Brazil/Japan Fair and Expo Inox Belo Horizonte

932 people from various muni- 4. QUALITY EDUCATION Open Doors Guided visits to the PNHR Macedonia Farm. cipalities

Entertainment, leisure, cultural, environmental, and Students and communities from sports activities for all ages and other actions to 4. QUALITY EDUCATION3. SAÚ- nine municipalities in the Nova Action and Citizenship value and foster citizenship. It is also an opportu- DE E BEM-ESTAR Era, Guanhães and Rio Doce nity to provide local communities with information Regional Units. about the company and the many uses of pulp.

23 communities and municipa- Free-of-charge theater plays, shows, workshops, 4. QUALITY EDUCATION Cultural Projects lities within CENIBRA's area of and educational projects to enhance access to operation. culture.

In 2019, this Project’s activities included a meeting of the Support and Evaluation Committee, a Municipal Children and Adoles- meeting with mayors, visits to the municipalities cents Rights Councils, Guar- involved and signing of a cooperation agreement, dianship Advisers, and Social symposium on continuing education, TIX Literacy 3. GOOD HEALTH AND WELL- Effective Council – Chil- Operators in the System for the meeting, support and guidance during the May -BEING dhood and Adolescence Assurance of the Children and 18 Campaign to prevent and fight sexual abuse Adolescents Rights in 56 munici- and exploitation of children and adolescents, and palities within CENIBRA’s area of a Good Practice Seminar with the participation of influence. 250 people from the 56 municipalities covered by the Project.

Promoting sports practice as a way to encouraging social development, enhancing children’s and te- Children and teens from eight 3. GOOD HEALTH AND WELL- ens’ potential, and providing leisure in a structured Sports municipalities in which CENIBRA -BEING way, the project is important to foster the region’s operates social development. It includes the provision of all the students' sports material and training for free.

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

Chart 13: Social programs promoted by CENIBRA INSTITUTE.

Public Summary of the Forest Stewardship Plan 59 GOALS PROJECT TARGET AUDIENCE 2019 ACTIONS

Implementation of the Municipal Craft Fair after 8. DECENT WORK AND ECONO- Craftswomen from the munici- training workshops and donation of stalls by CENI- Indaiá MIC GROWTH pality of Antônio Dias. BRA Institute in partnership with the municipality of Naque.

Several training courses were provided to artisans, Associations and small busines- farmers, and their family members as an opportuni- 4. QUALITY EDUCATION Professional training smen from the municipalities of ty for technical qualification to improve production Belo Oriente and Ipaba processes and business management.

Communities from the mu- 3. GOOD HEALTH AND WELL- nicipality of Belo Oriente and Construction of a theater, art gallery, library and Multifunction Park -BEING other municipalities around the parking space. industrial plant

Thematic workshops and recreation with the elderly and councils’ Rights Operators, lectures and Members of municipal councils theatrical interventions. The event brought toge- 3. GOOD HEALTH AND WELL- Effective Council – The for the Rights of the Elderly, ther around 300 participants from 10 municipalities -BEING Elderly elderly and managers from 10 and government representatives. Training courses municipalities for setting up municipal councils, Good Practice Seminars, and the Municipal Conference for the Elderly were promoted throughout the year.

A new agreement was signed with the Residents' Association of Aviação to provide training and purchase of equipment to increase the production Sewing Factory – Nei- of knitted shirts/uniforms, which improves the 8. DECENT WORK AND ECONO- Men and women from the mu- ghborhood Association of community’s quality of life, in addition to increa- MIC GROWTH nicipality of Belo Oriente Aviação - AMA sing income and promoting local development. In 2019, the Association opened a store to market its production and provide sewing services to local businesses.

Support to the Small Farmers Association of Uruçu 8. DECENT WORK AND ECONO- Men and women from the Uruçu to build facilities on the Association’s lot for mee- MIC GROWTH municipality of Sardoá tings and packaging of products sold in the town.

8. DECENT WORK AND ECONO- The construction of a cassava flour processing unit MIC GROWTH Quilombola families from the in the community of Indaiá began in 2019. At the Flour of Indaiá 2. ZERO HUNGER AND SUSTAI- municipality of Antônio Dias same time, the cassava crop field was expanded to NABLE AGRICULTURE. meet the production demand.

Monitoring of EMATER's capacity-building actions 2. ZERO HUNGER AND SUSTAI- Family Farming - Cocais Family farmers from the city of through a technical report prepared by the com- NABLE AGRICULTURE. dos Arrudas Coronel Fabriciano pany.

8. DECENT WORK AND ECONO- MIC GROWTH Bom Jardim de Tronquei- Men and women from the Support to complete the construction of the Asso- 2. ZERO HUNGER AND SUSTAI- ras municipality of Peçanha ciation's headquarters and start coffee planting. NABLE AGRICULTURE.

2. ZERO HUNGER AND SUSTAI- Fruit Pulp from Pedra Family farmers of Coroaci Support to complete the Fruit Pulp Factory. NABLE AGRICULTURE. Redonda

Food (fruits and vegetables) reuse workshop and 8. TRABALHO DECENTE E CRES- Living Market Marketers of Sabinópolis guidance on proper product exhibition at the local CIMENTO ECONÔMICO market.

8. DECENT WORK AND ECONO- The partnership between CENIBRA Institute, the Union of Rural Workers of Mesquita, and the MIC GROWTH Arts and Fair in the Squa- Marketers of Mesquita municipal administration was renewed. Purchase re –FEIRARTE 2. ZERO HUNGER AND SUSTAI- and donation of stalls to enlarge the handicraft and NABLE AGRICULTURE. produce exhibition space.

Chart 13: Social programs promoted by CENIBRA INSTITUTE.

60 Public Summary of the Forest Stewardship Plan GOALS PROJECT TARGET AUDIENCE 2019 ACTIONS

The partnership between CENIBRA Institute and the Fishers and Friends of Doce River Association 8. DECENT WORK AND ECONO- Fishermen from the municipality (APARD) was renewed. Resources were provided Social Fish Farms MIC GROWTH of Periquito to adapt the existing facilities so as to meet food safety regulations and improve the fishermen’s working conditions.

Implementation of the Municipal Craft Fair after 8. DECENT WORK AND ECONO- Women from the municipality training workshops and donation of stalls by CENI- The Art of Hands MIC GROWTH of Naque. BRA Institute in partnership with the municipality of Naque.

In 2019, a storage and recycling shed was opened Association of Recyclable 8. DECENT WORK AND ECONO- Waste collectors form the muni- in Belo Oriente and construction of a similar shed Material Collectors of MIC GROWTH cipality of Belo Oriente in the District of Perpétuo Socorro began. CENIBRA Belo Oriente (ASCABEO) Institute donated materials for both sheds.

A press was donated to the Association of Recy- clable Material Collectors of Açucena, which will Association of Recyclable 8. DECENT WORK AND ECONO- Waste collectors form the muni- enable pressing collected material and add value Material Collectors of MIC GROWTH cipality of Açucena to recyclable items. Other expected benefits are a Açucena (ACMARA) raise in collectors’ income and reduction of waste disposal in the municipal landfill.

Having started in 2018, a technical course in administration and management was completed in August 2019 with the graduation of 68 youths Young Entrepreneurship Youths from the municipality of from the municipality of Belo Oriente. They were 4. QUALITY EDUCATION Center (NEJ) Belo Oriente given differentiated training and education in business and social entrepreneurship and many of them have already found a job in the local and regional labor market. Chart 13: Social programs promoted by CENIBRA INSTITUTE.

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

Public Summary of the Forest Stewardship Plan 61 CONTACT INFORMATION

0800 283 1291 TWITTER For forest fires only. twitter.com/cenibra

FACEBOOK 0800 283 3829 www.facebook.com/cenibra Wood purchase – Forestation Incentive Odor Perception Network How’s My Driving? GOOGLE+ Other matters CeluloseNipo-BrasileiraCENIBRA

SITE YOUTUBE www.cenibra.com.br CeluloseNipo-BrasileiraCENIBRA

CENIBRA APP - OUR WORLD IN YOUR HANDS CENIBRA’s communication guidelines contribute to the Company’s mission and principles of corporate governance based on the pursuit of excellence in communication through the adoption of effective channels that ensure broad, strong credibility, brand awareness, and corporate reputation among its various stakeholders.

In this regard, CENIBRA makes available an application for internal and external communications, called CENIBRA APP. It enables users to follow the Company’s main actions, such as social and environmental projects, and corporate performance. It also provides access to the Accredited Network, corporate phone numbers, social networks, videos, and website. Publications and bulletins may also be read.

In addition to the content made available to the public at large, employees have access to additional information such as Raw Material Bulletin, the company’s position on specific topics, Corporate Portal, campaigns, communications, notices, and more. This new communication channel is expected to improve the alignment of the corporate narrative and extend the dissemination of CENIBRA’s actions. It will also enable messages to be sent to groups such as the Odor Perception Network and Internship Program applicants.

62 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 Preparation of texts related to seedlin- Forestry Manager Carlos Roberto Soares Silva gs production, forestry, forestation CREA-MG 27242/D incentive, and forest protection.

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

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

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

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

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

Forestry Research and Development Preparation of texts related to research Fernando Palha Leite Coordinator and forest quality, and genetic material CREA-MG 53032/D 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 63 Sede Fábrica Headquarters & Plant Rodovia BR-381 - km 172 Distrito de Perpétuo Socorro Belo Oriente - Minas Gerais - Brasil CEP 35196-972 - Caixa Postal 100 Tel.: (5531) 3829 5010 Fax: (5531) 3829 5260

Escritório Belo Horizonte Belo Horizonte Office Avenida Afonso Pena, 1964 - 7º andar Bairro Funcionários - CEP 30310-005 Tel.: (5531) 3235 4041 Fax: (5531) 3235 4002