Sustainability Report 2011

( sustainability report 2011 )

BA – Bahia state ES – Espírito Santo state MG – Minas Gerais state MS – Mato Grosso do Sul state RJ – Rio de Janeiro state RS – Rio Grande do Sul state SP – São Paulo state

Fibria Sustainability Report 2011 – This Report is published Reporters: Anna Costa, Letícia Tavares and Luiz Maciel by Fibria Celulose S.A. (Quintal 22) General Coordination: Sustainability and Corporate Proofreaders: Ana Neiva, Isis Stelmokas and Rachel Reis Relations Area Graphic design: Sarau Coordinators: Cristiano Resende de Oliveira, Mara Pinheiro Online graphic design and online report: Tau Virtual and Tiago Nogueira de Noronha Graphic design and print version: Textual Editor: Luiz Fernando Brandão iPad App: Tau Virtual Reporting Areas: Fibria’s Board of Directors, CEO, Materiality Matrix: Atitude Sustentável Human and Organizational Development, Commercial and International Logistics, Industrial Operations, Interviews with members of neighboring communities: Engineering and Procurement, Forestry, Finance and Adriana M. Imperador, Giselle P. Sancinetti and Gunther Brucha Investor Relations, and Internal Audit Reporting English translation: Bruce Lister Rodger, Cristiano Resende Departments: Corporate Communications, Development de Oliveira, João Roberto Moris, Marcos Barboza, Steve Yolen and Funding, Corporate Human and Organizational and Wayne Santos Development, Occupational Health, Safety and Medicine English revision: Maya Forstater and Peter Raynard (HSMT), Forest Environment, Governance, Risks and Compliance, Budget and Performance, Compensation Photos: Fibria archives, Flávio Guarnieri, Ricardo Teles, and Benefits, Corporate Safety, Commercial and Global Roberta Dabdab, Vitor Nogueira Logistics, Controllership, Legal, Industrial Environment, Circulation: 100 copies Operational Human and Organizational Development, Strategic Planning, Investor Relations, Supplies, Additional information, suggestions or comments about this Sustainability and Corporate Relations, Technology, Report can be sent to Fibria Corporate Communications: Fibria Forestry Units in Espirito Santo, Bahia, Minas Gerais, Alameda Santos, 1357 – 10º andar – CEP 01419-908 Mato Grosso do Sul, São Paulo and Rio Grande do Sul States, – São Paulo – SP – Brazil – Phone: (+5511) 2138-4000 Ombudsman Office, Board Compensation and Benefits, E-mail: [email protected] FUNSEJEM, and Votorantim Participações (VPAR) March 2012 6 48 4 Strategic planning 48 Management systems 48 Integrated management policy 50 Certifications 50 Fibria’s certifications 50 Introduction SmartStep 51 Forthcoming challenges 52 Sustainability 52 Sustainability context 52 Opening: The value of the forests 6 Sustainability strategy 53 Message from the management 9 Long-term commitment 53 Management and strategies About this report 13 Short-term goals and targets 55 External views 18 Main commitments 61 Main results 21 Intangible assets 62 About Fibria 29 Image assessment 63 Media exposure 63 Advertising 64 Innovation 65 i9 Program – stimulus to and recognition for innovation 65 Technological innovation 66 Pulp sales 68 2011 Pulp logistics 68 Product 68 Expansion of the Três Lagoas Unit 70 | Sustainability Report | Fibria

1 2 3 4

Introduction 71 Communication with stakeholders 71 Communities 74 Relationship with communities 74 Relationship model 76

Governance Impacts on communities 78

  Management 35 Relationship with specific communities 80 Code of Conduct 40 Relationship with indigenous communities 81 Ombudsman services 40 Relationship with landless movements 82 Social performance Internal Audit 41 Relationship with black communities 83 Anti-corruption practices 41 Relationship with fishing communities 85 Risk management 42 Theft of wood 86 Governance, Risks and Compliance 42 Consultation with communities 88 Risk management 42 Socioenvironmental education 99 Internal controls 42 Dialogue with NGOs and participation in forums 101 Enterprise Risk Management (ERM) 43 Suppliers 102 Fines and legal claims 44 Government 106 Lawsuits regarding Aracruz Celulose losses 46 Contributions to political campaigns 106 Lawsuits in São Paulo state 47 Public policies 106 Personnel management 108 Workforce 108 Recruitment and development 112 Health and safety 117 Quality of life 120 Relationship with labor unions 121 35 71 123 169 5 Introduction 123 Forest management 123 Wood production and supply 124 Wood supplies by third parties 125 Conduct Adjustment Agreement in the South of Bahia 127 Wood logistics 127 Water resource management 131 Forest protection 133 Soil management 134 Agroforestry 135 Environmental performance Biodiversity 137 Portocel 169 Ecosystem services 144 Independent assurance 170 Energy 145 Awards and recognitions in 2011 173 Waste 146 Content Index 175 Investments 147 GRI Application Level 186 Industrial operations 147 Creation, development and management Pulp production 148 Fibria's Sustainability Report 187 Maintenance shutdowns 148 Glossary 188 Internal benchmarking 148 Recovery and Utilities 149 Energy 150 2011 Water 151 Emissions 153 Effluents 156 Waste 156 Investments 158 Climate governance 159 | Sustainability Report | Fibria

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Market context 164 Performance analysis 164 CAPEX 166 Debt management 166 Topics related to Sustainability Dividends 167 Goals and Targets Capital market 167

Synergies 167 Financial-economic performance Relationship with independent auditors 168 Topics related to Materiality Matrix Public financing 168

164 6

The value of forests

As a contribution to the initiative of the United Nations International Year of Forests, we invited two experts from organizations that are involved with the forestry sector to present their views on forests and their value

2011 Forests – too precious to lose

WWF aspires to a future where humanity’s global foot- Achieving ZNDD by 2020 would halt the depletion of print stays within the Earth’s ecological limits and the forest-based biodiversity and ecosystem services, includ- planet’s natural resources are shared more equitably. ing critical habitats for iconic species such as tigers and gorillas. In advocating this target, WWF stresses the | Sustainability Report | Forests are vital to this vision.2 They pulse with life, har- need to urgently reduce loss of natural forests to near

Fibria bouring an enormous wealth of biological diversity. zero. Thus in the net accounting for the target, planta-

They sequester carbon from the atmosphere. Forests tions do not offset natural forest losses, as many values provide subsistence foods, medicine and materials for are diminished when plantations replace natural forests. an estimated 1.6 billion people who live in and around them. They are intrinsic to the cultural identity of many ZNDD by 2020 would also see the world’s forests con- indigenous peoples. Forests protect us from floods and tributing to an early peak and decline in greenhouse gas soil erosion. They also provide us with natural resources, emissions, transforming them from a net source of emis- such as timber for furniture and construction, fuelwood sions to a net carbon sink. If we do not move quickly to   for heating and cooking and paper fibre for packag- eliminate emissions from forests, and cap industrial emis- ing, learning and hygiene. Forest products are renew- sions, we face the prospect of runaway climate change. able and, when sourced from well-managed forests and In that scenario, many forests will not survive and the plantations, tend to have a smaller footprint than fossil carbon they store will be released into the atmosphere, fuel-intensive alternatives like steel, concrete, and plastic. further accelerating climate change in a disastrous downward spiral. Halting forest loss to maintain forest values Can we stop forest loss and meet global demand According to the United3 Nations Food and Agriculture for food, fuel and fibre? Organisation’s most recent statistics, every minute an area of forest is lost equal to the size of 36 football fields. WWF’s Living Forests Report1 explores opportunities to WWF advocates “Zero Net Deforestation and Forest shift to a new model of sustainable forestry, farming, Degradation (ZNDD) by 2020” as a target that reflects and consumption that will enable the human population the scale and urgency with which threats to the world’s to live within the earth’s carrying capacity. The report forests and climate need to be tackled. concludes that, with better governance, the world would 7 have enough productive forest and land available for ag- natural capital. Commercial plantation forestry can riculture to meet current demand for food, fuel and fibre also support conservation and restoration of natural without further conversion of forests. forests within multi-functional land-use mosaics. In Brazil, for example, several plantation companies are However, as we get closer to 2050, maintaining a near supporting natural forest restoration and the creation zero deforestation rate will require forestry and farm- of ecological corridors in highly fragmented remnants ing practices that produce more with less land, water of the Atlantic Rainforest. and pollution, and new consumption patterns that meet the needs of the poor while eliminating waste The premise that plantations can contribute positively to and over-consumption. sustainable development is the cornerstone of the New Generation Plantations Project, a platform for WWF, A role for plantations companies and government agencies to work together to define pathways to better plantations. The term “new The forest sector has two broad avenues for meeting generation plantation” describes an ideal form of plan- projected higher future demand for forest products - tation that maintains ecosystem integrity, protects high expanded logging in natural forests or intensified wood conservation values and is developed through effective production in plantations. Plantations generally have stakeholder participation, while contributing to econom- 2011 higher timber yields per hectare, than natural forests, ic growth and employment. The Project aims to identify and can, at least in theory, make more room on the and promote practices that are aligned with this concept. planet for conservation of natural forests. Saving forests – a major 21st century challenge However, plantations are often criticised for their environmental and social impact. Without significant chang- Forest loss must be halted before it is too late for for- Sustainability Report | es in policies and practices, the expansion of plantations est peoples, the climate and endangered species and Fibria

in many regions will continue to cause controversy by ecosystems. This requires urgent action on many fronts: threatening forest dependant peoples and high conser- stronger financial incentives to keep forests standing; vation value areas. better stewardship and governance of forests; better land-management and more efficient farming outside By contrast, plantations that do not replace natural forests; and strategies to change consumption patterns habitats and help to recover over-grazed and degrad- that are wasteful, excessive or have a heavy ecological ed land could help build a greener future economy. footprint. The planet will be healthier if build up valuable

Such plantations can potentially help supply the wood forest capital, not run it down.   needed to meet future demand for timber, fibre and 1.See www.panda.org/livingforests bioenergy without further depletion of the world’s 2. www.newgenerationplantations.com

Rod Taylor Director, Forests, WWF International 8 Forests and their value

At a time of rapid climate change, the importance of and native areas. The goal must be to achieve sustain- forests and associated ecosystems is increasingly urgent. ability. Without prompt action, clear alignment and proj- The link between forests and climate can be measured, ects that seek environmental balance as a goal, we will but it can also be felt; their existence is refreshing, while be wasting our best and perhaps last opportunity to set their absence is sweltering. Where riparian forests cease Brazil on a sustainable path. to exist, rivers dry up and their waters become polluted. If we do not protect river sources, we can very easily end It seems strange that these words have to be repeated up without water. If forests no longer cover slopes, rain again on the occasion of the International Year of For- will wash away all that stands in its path, including hous- ests and on the eve of the Rio+20 summit in June 2012. es built on vulnerable sites. If we lose our forests, we However, the fact is there is still no plausible explana- will no longer benefit from their environmental services, tion why at a time when almost everyone is declaring such as carbon capture and storage, water conservation, that they understand the importance of nature and its biodiversity, or the beautiful landscapes and trees that conservation, actions are still so scarce to reverse the shelter the fauna. scenario of environmental degradation that is now in 2011 place worldwide. Brazil houses some of the largest and richest forests in the world. This is both a great privilege as well as an Several industries, especially forestry, have already enormous responsibility. What we do with our forests adapted to the circumstances, and sustainable prac- will have consequences not only for Brazil but for the tices have been adopted. It is hoped that others will

| Sustainability Report | entire planet. The two major Brazilian tropical forest follow suit and improve their awareness towards the biomes illustrate the complexity of the ecosystem chal- environment. It is essential that good practices are Fibria

lenges we face. In the Amazon Rainforest, we still have publicized, built upon and expanded. Forest planta- significant areas of primary forest which are often sub- tions have learned from past mistakes and now play an ject to deforestation. In the Atlantic Rainforest there is important role in conserving indigenous forests, either little remaining primary forest. Most of the forest here is through conservation practices and monitoring of large secondary growth at various stages of regeneration, re- native areas, or through exploitation of tree plantations quiring care and support in restoration. More than 85% as a source of raw material for manufacturing products of Brazilians live in the area where these two biomes for which only native trees were previously used. Fur-

  exist. This fact by itself should be sufficient to show the thermore, improved management techniques for tree importance of our forests and the need to protect them. plantations will greatly improve that contribution to preserving native forests. We need to be more attentive and exercise greater care in planning our homes and landscapes. In planted Last but not least, let us recall a basic general fact forests, as well as other crop areas, it is important to about forest conservation. There is no point in accumu- plant species in mosaic landscapes, ensuring a balance lating information and knowledge about forests and between areas of intense use for economic production their value, if they hold no value in our hearts.

Miriam Prochnow Public Policy coordinator for the Environment and Life Preservation Association (APREMAVI) and executive secretary of the Brazilian environmental group Diálogo Florestal (Forest Dialogue) 9 Message from the management

In 2011 the global economic downturn started in the We believe that some of Fibria’s key advances in 2011 last half of the year affected demand and prices of regard our relations with stakeholders. We developed a key commodities abroad and mainly exchange rates closer relationship with the social players of all the re- in Brazil, strongly undermining Fibria’s financial per- gions we are active, either with commitment programs, formance as it is mostly an exporter. Fortunately, this community meetings, dialogues or regular visits to neigh- negative impact could be partially downplayed by our boring communities. In association with INCRA, the gov- initiatives early in the year, seeking to cut costs and ernment of Bahia and the Landless Workers’ Movement secure operating excellence. (MST), we developed a Sustainable Settlement project expected to be implemented soon in areas occupied As one of these initiatives, we completed the sale of by MST, benefiting more than one thousand families of CONPACEL, KSR and the Piracicaba Unit, thus consoli- farms. A similar project developed in association with dating the focus on pulp business and nurturing adjust- public entities of Bahia and Espírito Santo, the Territorial ments to our capital structure. We also decided to invest Rural Development Program (PDRT) has benefited 760 2011 in production processes and in modernization of the in- families of 24 communities self identified as members stalled structure, as in the case of the new bleaching line of quilombola communities in both states. We will also of Plant A, implemented in the Aracruz Unit in Espírito hold an important meeting in Vitória (ES), Constructive Santo. We also deepened the exchange of experiences Dialogues, when we will listen to representatives from and knowledge of different operating Units, with con- various sectors of the society which keep relationship | Sustainability Report | siderable productivity gains both in forest and in plants. with the company.

In the second year of Fibria’s activities, we had new and Fibria

important wins, despite the unfavorable scenario. Still at the relationship level, Fibria played its role as a citizen at various forums over the year. We actively par- We were granted the license to install project Três La- ticipated in all the important debates and decisions in- goas II, at the Unit located in Mato Grosso do Sul and volving the entities we are a member of, and national moved on to develop our forest areas so that we are and international corporate and industrial associations. poised to expand the production as soon as favorable An example was our participation in the Brazilian Forest market conditions return. Dialogue, which designed and presented to congress-   men a bill including 16 points on the Forest Code, in the As it comes to technology highlights, our researchers name of companies of the industry and environmental developed new and more productive genetic materi- NGOs. At the international level, a highlight was the als for cultivation of eucalyptus to be introduced in all World Business Council for Sustainable Development company plantations beginning 2012. We also devel- (WBCSD), which gathered more than 100 leading global oped an unprecedented biotechnological tool for the companies in their related industries. We also took part forest sector targeting the early identification of supe- in The Forests Dialogue (TFD) – a global forum on sensi- rior eucalyptus clones, whereby we anticipate projected tive matters on forest, which brought together represen- productivity gains and quality of wood. We were also tatives from companies, NGOs, indigenous communities granted a license to start experiences with not-for-prof- and multilateral entities. it genetically modified trees out of our forest areas. In the upcoming years, we will continue to invest in this We continued to seek new certifications for our forest knowledge realm, in line with our mission as a com- and industrial operations, as in the case of the efforts pany – develop the forest business as a renewable and made at the Aracruz Unit to obtain the certification by sustainable source of life. the Forest Stewardship Council® (FSC®). In May, we com- 10 pleted the first stage of the SmartStep program, super- keep and develop this asset: in the last year, we inten- vised by the Forest and Agricultural Management and sified therefore the Performance Management process, Certification Institute (Imaflora). seeking to recognize talented professionals and prepare new leaders. We announced the Management Beliefs A highlight of the initiatives seeking environmental which should guide the attitudes of all our employees conservation was our participation in the Agreement and which will certainly help build a company worthy of for Restoration of the Atlantic Forest and in the proj- people’s admiration. ect Ecologic Corridor of the Paraíba Valley, whereby the company invests in restoration of native areas in the Having a sustainable strategy in place, as it turned out states it is active, namely SP, ES, BA and MG. In 2011, Fi- evident in 2011, is especially important at a moment of bria started restoring 3,500 hectares of Atlantic Forest. market downturn. Our profit margins fell in the year as Up to 2025, we have the challenge to start restoring a result of the unfavorable scenario in Europe and in the 40 thousand hectares in own areas with the assistance United States, still riddled with uncertainties, and reper- of local communities, responsible for collecting seeds, cussion in other economies. All this reaffirms the need keeping community nurseries and monitoring areas be- for us to widen our competitive edge to keep our leader- ing restored, which allows generating income and im- ship in the industry. proving quality of life. 2011 We are aware that the upcoming years will be very chal- During 2011, following a recommendation by our Sus- lenging in the global scenario of business in connection tainability Committee and delivering on our long-term with the weakening of traditional pulp markets, crisis in commitment, we worked on setting goals for the next 13 global leadership and climate changes, among other fac- years. As a result of successive rounds of discussion over tors. In this scenario, we present the main challenges of

| Sustainability Report | three months, involving 40 professionals of all areas of the each area, as viewed by officers on the following pages. organization with the support of specialists from Unisi- Despite an unfavorable scenario, we believe that Fibria Fibria

nos, in Rio Grande do Sul, we elected six targets for our is well set to face these transformations and move on in sustainable strategy up to 2025 . its way towards sustained growth, sharing richness and being admired for its value. Worth noting is that all these achievements stemmed from the dedication and talent of our professionals and Finally, we would like to say thank you for the confidence of all people who closely contributed to meet our objec- of our employees, shareholders, customers, suppliers, tives. We well know the value of our team and want to society and other stakeholders.  

José Luciano Penido Marcelo Castelli Chairman of the Board CEO of Directors 11 Our commitment to sustainability

João Felipe Carsalade, Director of Commercial and fact that we are the only forestry company in the Dow International Logistics Jones Sustainability World Index aided in this process, "The global pulp market is going through a challeng- as investors increasingly look for best practice in gov- ing time , with falling consumption in Europe and the ernance and sustainability. Our strategy to consolidate United States, since the second quarter of 2011. Due the financial health of Fibria, sustain our competitive ad- to our solid client base, however, we are prepared to vantages, and resume our growth when conditions are face this unfavorable situationwith continued invest- favorable will be maintained. These opportunities often ment. During the year we strengthened our logistical arise after a moment of crisis." advantage by signing a contract to build twenty ships 1. João Elek left the company in January 2012. that will be used exclusively in shipping our products. It is a new concept, with a twenty-five year lease for ves- Francisco Fernandes Campos Valério, Director of In- sels that are specially designed to meet our needs. With dustrial Operations, Engineering and Procurement

this fleet, which will be delivered in September 2012, "We had a positive year in the industrial area in 2011, 2011 our products will reach our clients in a more competi- with production growth and stability in all operating tive manner, strengthening the attributes that are es- units. I have no doubt that part of the reason for this sential to loyalty in our industry: high quality products, was the result of the intense sharing of experiences delivered strictly in the volumes and deadlines agreed. and knowledge stimulated by the company. The annual Another distinguishing feature of Fibria is the concern maintenance shutdowns, which are essential for clean- | Sustainability Report | with sustainability, which is already part of our corpo- ing the equipment, carrying out repairs and adjust- rate culture. This attitude will be crucial in the coming Fibria ments were accompanied by representatives of all the years in the pulp industry, given the growing interest factories, who collaborated with their experience and of consumers for certified products. In this sense, our reinforced this synergy. We are seeking to reduce spe- challenge for 2012 is to adapt operations in Espírito cific water consumption and our carbon footprint, with Santo and Bahia to the requirements of certification, the modernization of the pulp bleaching plant of the a work that is underway with the SmartStep program." Aracruz Unit and the progressive replacement of fossil fuels by biomass for energy generation. To continue im- João Adalberto Elek Jr, CFO and Investor Rela- proving our productivity, it is essential to invest in eco-   tions Officer1 efficiency and staff motivation. We cannot influence the "Among the many challenges faced and overcome in exchange or the fluctuation of commodity prices, but 2011, emphasis must be given to the improved debt pro- we can work to improve our product quality, reduce file, obtained with the issuance of international bonds emissions, save energy and increase production in all worth US$5 billion, confirming that the market sees us Units. We must also ensure that each of our technologi- with a good credit rating. Like everyone, we suffer the ef- cal plants, whatever their age, deliver the same quality fects of exchange rate fluctuations and global economic of our final product. This is our focus and continues to crises, but we maintain our trajectory of debt reduction. be the biggest challenge for 2012." Today the average maturity of our commitments is a little over six years, a comfortable period, since it is equivalent Aires Galhardo, Director of Forestry to the growth cycle of our forests. Another important "The past year was marked by the consolidation of good achievement was the attraction of new investors thanks practices in Fibria’s forest areas.through advancing the to the company’s high potential of return on bonds in a exchange of experiences in a more efficient production backdrop of overall decline in world stock markets. We process and in dialogue with communities, organizations attract considerable resources from global funds and and government agencies. We also intensified our activi- pension funds in Brazil, Peru, and especially Chile. The ties in the Carbon Disclosure Project (CDP), making our 12 inventory and monitoring our greenhouse gases emis- No cultural change is simple. It is always a delicate pro- sions. Our greatest challenge today is to find ways to cess that requires some years to finalize. Therefore, we increase productivity, improve forest management and have worked hard to prepare leaders. In 2011, all our eliminate waste. In addition, we have a double challenge general managers and managers underwent a training in logistics: reducing environmental impacts by decreas- program to serve as multipliers in the dissemination of

ing CO2 emissions, and social impacts by avoiding acci- our management beliefs. We believe there is no more dents and excess cargo. It is also crucial to shift towards effective method for deploying a new culture than to greater use of rail and sea transportation. In 2012, we lead by example. In 2012, the process of leadership will work to improve our relationship with communities, development will be extended to coordinators, consul- seeking to include them in our supply chain. We know, tants and experts, to strengthen, the company's culture however, that much remains to be done, in particular and support the process of retaining talent. Investment to ensure alternative employment options for families in skills will help us meet the challenge of maintaining who give up the production of charcoal. It is necessary a high performance team. Nearly 200 professionals will to promote formal education and create self-sustaining go through this process, which helps us to assess talent projects. Another important issue is the company’s re- and identify and prepare potential substitutions and lationship with forest partners. We will seek to adopt a successions. Our role is to consolidate the foundation single model, using the Forest Savings program as a ref- of human capital, by helping our current professionals 2011 erence. We must conduct an awareness campaign and and by seeking out new employees in the labor mar- disseminate the benefits that many are unaware of be- ket who both meet the technical requirements and are cause their contracts were originally developed with the aligned with our values. If we want to perpetuate our former Aracruz Celulose. We must also go further and culture not only among our 4,000 direct employees but look at our forests in search of innovative solutions. Our also among the other 14,000 indirect workers, we need

| Sustainability Report | greatest asset, after our clients and employees are our to know how to develop leaders and partners that are lands, which may have diverse uses in the future. We are aligned to our culture. It is worth mentioning that in Fibria

well aware of future opportunities." 2011, 700 employees left the company; around 400 of these were through the sale of assets whilst the others Luiz Fernando Torres Pinto, Director of Human and were related to the process of adapting the business to Organizational Development a scenario of economic restrictions. Just as the success In the merging of two traditional companies into a of an organization is achieved by people working in it, young company such as Fibria, the greatest challenge in a company can only be sustainable if our professionals human resources is the consolidation of a new culture. have sustainable attitudes, in work and life."   13 About this Report 1

Fibria Celulose S.A.'s Sustainability Report 2011 presents veloped through a systematic thinking process, which the company's performance in the areas of governance, involved professionals from across the company. The economic and financial, social and environmental re- publication continues to disclose our progress towards sponsibility. The economic and financial data are dis- achieving short-term goals, covering a period of one year, closed pursuant to the rules of the Brazilian Securities and furthermore sets out its forthcoming challenges. Exchange Commission (CVM), based on international accounting principles. The reporting of non-financial The independent external assurance of this Report has data follows the Global Reporting Initiative Guidelines also evolved. This year the assurance team from Bureau (GRI G3.1), with emphasis on the principles of materi- Veritas Certification delved deeper into the subjects ality, relevance, balance, comprehensiveness, accuracy, covered and how they match up to our long-term com- clarity, context of sustainability, transparency, inclusion mitments in the ten themes identified as most material of stakeholders and comparability. topics both by the company and its stakeholders in the

Materiality Matrix. The process resulted in important rec- 2011 The information covers the Aracruz (ES), Jacareí (SP) ommendations to improve the balance, accountability and Três Lagoas (MS) Industrial Units; the Forestry Units and transparency of this publication. and Offices in Bahia (Posto da Mata), in Espírito Santo (Conceição da Barra and Aracruz), in Mato Grosso do Bureau Veritas Certification issued its evaluation re- Sul (Três Lagoas), in Rio Grande do Sul (Capão do Leão) garding the company's compliance to the GRI G3.1 | Sustainability Report | and in São Paulo (Capão Bonito and Vale do Paraíba), Sustainability Reporting Guidelines. We reached GRI and the pulp loading operation at the Port of Santos (SP). Fibria Application Level A, with the disclosure of all core per-

The Piracicaba Industrial Unit (SP) and the graphics prod- formance indicators. ucts distributor, KSR, which were sold in 2011, are not included in the Report. The major themes in Fibria's sustainable strategy and accountability to its various stakeholders were established The performance of Veracel, a Fibria joint venture with through our materiality analysis and, in order of impor- Stora Enso of Finland in Bahia, is also not addressed, tance, are the following: since this company releases its own sustainability report   (www.veracel.com.br). For its part, the private port ter-  Impact of the eucalyptus plantations on biodiversity; minal Portocel (ES), in which Fibria owns a 51% interest,  Certification and voluntary commitments; is briefly mentioned. In addition to operations conducted  Ethics; throughout 2011, the Report mentions, in some cases,  Use of water; important decisions made in early 2012, shortly before  Strategy / Commitment towards sustainability; this edition went to print.  Relationship with neighboring communities;  Forest partners (wood suppliers); To better satisfy the commitment to accountability and  Environmental hazards; the expectations of stakeholders, the Report presents  Emissions, effluents and waste; Fibria's long-term sustainability goal. These were de-  Relationship with specific communities. 14 Materiality Matrix y et

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Internal stakeholders – Perspective of the business | Sustainability Report |

1. Impact of the eucalyptus plantations on bio- 12. Forest technical management 24. NGOs Fibria

diversity 13. Energy use 25. Complaints and Ombudsman 2. Certification and voluntary commitments 14. Product responsibilities 26. Customers 3. Ethics 15. Workplace health and safety 27. Attracting and retaining talent 4. Use of water 16. Use of toxic products 28. Transport impact 5. Strategy/Commitment towards sustainability 17. Economic results 29. Diversity/fair treatment 6. Relationship with neighboring communities 18. Climate change 30. Antagonistic and/or anti-agribusiness groups 7. Forest partners 19. Communication with employees 31. Press 8. Environmental hazards 20. Compliance with laws and regulations 32. Use of genetic modification 9. Emissions, effluents and waste 21. Wood use 33. Government 10. Relationship with specific communities 22. Relations with outsourced workers 34. Suppliers   11. Corporate governance 23. Investors 35. Labor unions

The Materiality Matrix was developed at the beginning Digital versions of Fibria's activities – and remains valid and current –  full HTML version, with additional content, such as vid- from the perspective of 85 representatives of the com- eos, audio interviews (in Portuguese) and more detailed pany's stakeholders in Brazil and abroad, including 45 text (available at www.fibria.com.br/rs2011); direct and indirect workers and 40 representatives of  full version in PDF; suppliers, customers, investors and NGOs.  executive summary version in PDF;  a PDF download centre, where stakeholders can de- To facilitate access to information by all stakeholders, this fine which chapters interest them and create their own Report has been produced in Portuguese and English, in report; different versions:  a rich content version which includes videos and photographs accessible through a free iPad application [http://itunes.apple.com/br/ browse]. 15 Printed versions Finally, the Report makes references to the International  a limited edition of the complete version, for a special- Year of Forests of the United Nations (UN): its layout fol- ist audience; lows the visual identity of Fibria's activities, reinforcing  an executive summary version printed for distribution support for the UN's initiatives. The context for the year to a wider audience; is framed by the chapter The Value of Forests, in which  a pocket version, for Fibria’s employees and outsourced we have invited two experts to give a broad perspective workers, distributed in the notice boards. on the challenges faced in shifting to a path of sustainable development for forests, in Brazil and globally. In order to facilitate understanding of the key issues that run through the Report, we have used a system of icons Comments, suggestions and requests for additional for the 10 priority issues of the Materiality Matrix, the information regarding this document should be sent company's sustainability goals and targets, the links be- to [email protected] or Comunicação tween the chapters and content available on the Internet. Corporativa – Alameda Santos, 1357 – 10º andar – CEP 01419-908 – São Paulo – SP – Brazil. The Report also contains a glossary of technical and forestry industry-specific terms, to make it more accessible to different audiences. 2011 | Sustainability Report | Understanding the Materiality Matrix and support continuous improvement of management and

operational processes. Fibria has quality management, envi- Fibria

Impact of the eucalyptus plantations on biodiversity – ronmental, occupational health and safety, and forest certifi- Fibria’s forestry activities are licensed by the relevant authori- cations. Among other benefits, certifications ensure the avail- ties and the subject of social and environmental planning. Sig- ability of forest resources and business longevity, differentiate nificant portions of native forests are maintained interspersed the company in the market, improve the relationship with so- with eucalyptus plantations. The existing biodiversity in Fibria’s ciety and the image of Fibria as a socially and environmentally forest areas is researched, in order to understand, protect and responsible company. enhance the species and populations of native flora and fauna   as well as monitoring to track the environmental quality of Certifications (p. 50), Main commitments (p. 61), Government areas held by the company. In this context, Fibria retains its (p. 106) and Dialogue with NGOs and participation in forums protected areas in the form of legal reserves (LRs), Permanent (p. 101) Preservation Areas (APPs) and Private Natural Heritage Re- GRI indicators: 4.12 and 4.13 serves (RPPNs), through protection, restoration, management and integration with the planted forests, also seeking to mini- Ethics – Fibria’s Code of Conduct establishes the standards mize the external pressures and degradation factors that may of behavior expected from its employees in their personal be acting on these fragments. relations and at work, inside or outside the company. The document applies to all employees, either direct or indirect, Related sections: Biodiversity (p. 137), Forest protection irrespective of the hierarchical level. The company maintains (p. 133), Agroforestry (p. 135) and Ecosystem services (p. 144) an Ombudsman with three external communication chan- GRI indicators: EN11, EN12, EN13, EN14 and EN15 nels (telephone, P.O. box and internet) and an internal channel (intranet) to receive grievances in relation to violations to Certifications and voluntary commitments – Fibria’s the Code of Conduct, maintaining anonymity. To reaffirm the Units and offices are periodically subject to audit in order to application of the Code of Conduct, an Ethics and Conduct verify compliance with quality standards and certification, Commission made up of executive directors and managers ex- 16

amines possible violations, checks whether reported concerns Internal Sustainability Commission (CIS), consisting of manag- are valid, ensures the that all cases are assessed according to ers from different areas that monitor and ensure the imple- uniform criteria, and indicates steps to be taken concerning mentation of commitments. Sustainability strategies are guid- matters not addressed by the Code. The Ethics and Conduct ed by a set of long-term targets, which were defined using a Commission oversees the Ombudsman services, taking the systems thinking methodology, which resulted in a set of vari- necessary steps in each case. Cases involving fraud, embezzle- ables that directly or indirectly affect forestry and production ment or property damage are acted upon by the Internal Au- and sale of pulp and demonstrate the company’s sustainability dit function, maintaining the anonymity of individuals raising commitments to sustainability until 2025. Fibria also annually concerns at all times. renews and accounts for its sustainability goals and targets.

Related sections: Management (p. 35), Fines and legal claims Related sections: Sustainability (p. 52), Main commitments (p. (p. 44), Code of Conduct (p. 40), Internal audit (p. 41), Commu- 61), Dialogue with NGOs and participation in forums (p. 101) nication with stakeholders (p. 71), Government (p. 106), Rela- and Government (p. 106) tionship with labor unions (p. 121) and Public financing (p. 168) GRI indicators: – GRI indicators: 4.1, SO5, SO6, EN28, LA4, LA5 and EC4 Relationship with neighbouring communities – Given

2011 Use of water – Fibria continuously monitors watersheds its extensive area, Fibria maintains contact with communi- within its operational areas to prevent or minimize potential ties of different economic, social and cultural realities which impacts on forest management, as regards the quantity and are affected positively or negatively and to different degrees quality of water. The latest monitoring results indicate that by eucalyptus plantations. The relationship with neighboring the company’s forestry operations have not caused signifi- communities follows a model with four types of approach: En- cant impacts on water resources in the regions where it op- gagement, Community Meetings, Operational Dialogue and | Sustainability Report | erates. Reducing water consumption in the pulp production Face-to-Face Agenda. These contacts are designed according Fibria process is one of our most important environmental chal- to the forest operations and the intensity of the company's

lenges. The water capture for the mills is carried out through presence in these settlements. The company has a Prioritiza- grants and comply with environmental legislation of each tion Matrix that considers the socioeconomic vulnerability, the location and the operating licenses of the Units. Each of the impact generated by the company’s activities and the impor- three Industrial Units consume less volume of water than in- tance of the municipality to the company's operations. ternational references of best available techniques. The company is part of the Water Footprint Network (WFN) and is Related sections: Communication with stakeholders (p. 71), developing its water footprint in all of its production phases, Communities (p. 74), Relationship with communities (p. 74),   in order to optimize the consumption control and identify Theft of wood (p. 86) and Wood logistics (p. 127) opportunities for improvement. GRI indicators: 4.14, 4.15, 4.16, 4.17, SO1, SO9, SO10, EC1, EC8, EC9 and EN29 Related sections: Water resource management (p. 131) and In- dustrial operations (p. 147) Forest partners (wood suppliers) – The wood supply by GRI indicators: EN8, EN9 and EN10 independent producers, or forest partners, corresponded in 2011 to 10% of the volume of raw material consumed for Fi- Strategy/commitment towards sustainability – Fibria’s bria’s production of pulp. This additional supply of wood was sustainability strategy is based on the responsible use of natural secured with 3,422 contracts with rural producers in seven resources, promoting the development and well-being of local states, corresponding to a total area of 106,891 hectares. Be- communities and the restoration and conservation of native sides reducing the need for land acquisition, the forest part- ecosystems. The governance for sustainability is enhanced by nership is a way to include the rural producers neighboring the Sustainability Committee, composed of company execu- the pulp mills into the value chain, creating income and diver- tives and professionals from different areas of knowledge that sifying agriculture and labor. The Forestry Program (in Espírito are not part of the company’s management, and also by the Santo, Bahia, Minas Gerais and Rio de Janeiro) holds 85.74% 17 of Fibria’s forest partnership. In other states where it operates forestry operations, production and logistics and sequestra- (Rio Grande do Sul, Mato Grosso do Sul and São Paulo), the tion of atmospheric carbon in its planted and native forests. company's program to ensure the supply of timber by third Besides seeking to reduce and control the sources (equip- parties is called Forest Savings, by which landowners are en- ment and processes) that generate odor, the company couraged to produce wood for Fibria with long-term contracts maintains an Odor Perception Network (RPO), formed by with guarantees of funding, supply of seedlings and purchase volunteers from neighboring communities who are trained agreement at the end of the harvest cycle, which on average to identify the odor and inform the company when odor is lasts seven years. The good results of this program, which pro- detected. Fibria has been making efforts to use waste from motes the generation of income and employment in areas of pulp that are coprocessed and transformed into products the company, led Fibria to adopt it as a parameter in its new for use in correcting the soil acidity of eucalyptus planta- contracts for the purchase of wood. tions. This practice provides environmental and economic gains by reducing the disposal of waste to landfills and with Related sections: Supply of wood by third parties (p. 125) the substitution of raw materials purchased by the waste GRI indicators: – reused in forestry operations.

Environmental risks – Fibria has a Risk Management Policy Related sections: Risk management (p. 42), Forest manage- that provides guidelines to the company, and Risk Manage- ment (p. 123) and Recovery and Utilities (p. 149) 2011 ment area, which helps the company map and analyze the sig- GRI indicators: EN16, EN17, EN18, EN19, EN20, EN21, EN22, nificant risks and recommend proper treatment. Various types EN23, EN24 and EN25 of risks are considered (factors that impact on corporate results and require constant monitoring because of growth targets Relationship with specific communities – Fibria maintains and profitability expectations that the company is exposed to): good relations with most of the communities neighbouring | Sustainability Report | market, operational, credit, reputational, social and environ- its operations. However, there are some unresolved conflicts Fibria mental, of natural events, and regulatory. Climate change can with certain communities in the poorest regions of the north impact on the company’s economic and financial results by the of Espírito Santo and the south of Bahia, stemming from very nature of the business of the company, which is based problems that are often unrelated to the company and be- on the use of natural resources. There is a risk exposure due yond the management’s capacity to resolve, regardless of its to climate change, which can affect the equilibrium of ecosys- good intentions. Despite the complexity of the challenge, set- tems, the productivity of the plantations and the availability of tling these conflicts is a priority for the Fibria, which is work- water and energy for the mills. Fibria adopts the precautionary ing directly with the communities and engaging with other principle in the management and operation of industrial and parties that might help to develop satisfactory solutions, such   forestry activities, through the use of control measures and as the government, at all levels, NGOs and other companies. monitoring of production, such as agronomic studies, genetic Some communities merit special attention from the com- improvement in the production of eucalyptus which includes pany, which has been developing specific projects for social the adaptation of species in different weather conditions, inclusion, often with the participation of government bodies monitoring of water consumption in forest areas, among oth- and independent socio-environmental entities. This includes ers. The development of a greenhouse gas (GHG) inventory is black communities, several of which have been recognized among Fibria’s management activities. as quilombolas (descendents of runaway slaves who formed their own communities) or are in the process of claiming Related sections: Risk management (p. 42), Forest manage- this status; Indian people of Tupiniquim or Guarani ethnic- ment (p. 123), Recovery and Utilities (p. 149) and Climate ity; members of the Landless Workers’ Movement (MST); and governance (p. 159) traditional fishing communities. GRI indicators: 4.11 and EC2 Related sections: Relationship with specific communities Emissions, effluents, and waste – Fibria has a positive (p. 80) and Theft of wood (p. 86) balance when considering carbon equivalent emissions in GRI indicators: SO1, SO9, SO10 and HR9 18 External views

We invited two experts to make a critical reading of Among the positive aspects to be emphasized as I begin Fibria’s Sustainability Report 2011 my analysis, following the sequence of the report, one should highlight the refinements to the organizational structure and management model. The establishment of Comments: Fibria Celulose’s 2011 the office of Forestry director and an area specializing in Sustainability Report Corporate Governance, Risks and Compliance, and the distribution of the advisors in specific purpose committees Upon reading Fibria’s 2011 Sustainability Report, I am – notably the internal Sustainability Commission – are all reminded of the popular aphorism that it is in adversity indications of the company’s corporate development, not that the values governing the behavior of individuals, only in terms of the rational organization of areas, but also communities and organizations reveal their fragility or through the clear and intelligent allocation of duties, re- their strength. That is because the first thing that comes sponsibilities and authority which, by decentralizing pow- to mind when reading this document is the fact that 2011 er, will make a significant contribution towards perfor- the company has kept its commitment to sustainability mance efficiency and effectiveness. Similar results can be in spite of adverse circumstances, both internally and expected from the enhanced socialization of information, externally. Internally, Fibria is still overcoming the chal- through initiatives such as the Corporate Governance Por- lenges presented by its creation, given that the merger tal and dissemination of the company’s Code of Conduct. of Aracruz with VCP was no commonplace operation, | Sustainability Report | especially in regard to the changes in corporate culture In the environmental field, FSC® recertification has con-

Fibria that, as we all know, take time to be assimilated and solidated all the efforts that had been made in the past,

rarely coincide with the technical and procedural adapta- while insertion in the SmartStep program, supported by tions, which are far less dependent on the human factor. IMAFLORA, suggests that these practices have become a As for the external context, the new company had to part of Fibria’s “way of being”. Prominence should also assume all the legal obligations of its forerunners, which be given to the guidance provided by the company for were not insignificant and extended into the social and its forest partners to also obtain certification, which will environmental spheres, in the midst of a world economic establish coherent standards throughout the production crisis that had been affecting the markets since 2008 chain, as well as contributing to the technical and mana-   and was reflected in the financial performance data pre- gerial development of these undertakings. sented at the beginning of the report. It is important to emphasize that the increased maturity However, living up to the aforementioned aphorism, Fi- of Fibria’s policies and activities with regard to its rela- bria kept its organizational policies true to the values of tions with the communities located within the vicinity of sustainability, while implementing socioenvironmental its operations, and the social investment in educational programs and activities, maintained the social invest- programs, the nurturing of local producers, the manage- ments that had already been initiated, and sought to ment of water resources and forest protection, have all continue the management refinements, through moni- helped the company to consolidate, in practice, a con- toring, research and the hiring of specialists. The very cept of socioenvironmental sustainability that is still all issuing of this report, the preparation of which requires too rare in the agribusiness sphere. both considerable operational effort and, particularly, a commitment to the transparency and integrity of the Analysis of the text also draws attention to certain as- information provided, is itself ample evidence of the pects of the management and of the Report itself that strength of these values. could be improved: 19  The membership of the Board of Directors does not in- ment does not reflect adherence to the sustainability clude a single female, while just 11% of the committee values, although it is known that the policies and proce- members are women. This same tendency is evident dures adopted for managing a company’s human capi- in the lack of women in executive positions and the al- tal are the most effective instruments for legitimizing ways inferior numbers of females at other levels of the and strengthening the corporate beliefs. The sub-item organization. Corporate Culture and Climate does not illustrate the  Along similar lines, it can be seen that a significant num- efforts exerted, which should be a priority, in action ber of workers are outsourced, particularly in the opera- to strengthen the cultural patterns and power relation- tional areas, yet the Report does not clearly state what ships that stimulate the internalizing of these values. guidance Fibria provides and control it exerts to ensure  With regard to private social investment, it is not clear that the companies supplying this human capital follow whether the amounts spent by the Votorantim Insti- the principles of social responsibility and sustainability. tute refer to the set of programs, projects and activi-  The Impact and Risk Matrix does not adequately explain ties for the entire group of companies or just those what the negative externalities are, what the degree of on behalf of Fibria, the communities it deals with and impact and risk is on a scale running from low to critical respective stakeholders. and, above all, how they are monitored and what ac-  One of the most laudable activities of the company, tion the company has taken to mitigate them. contributing to the sustainable development of the 2011  Although the encouragement provided by Fibria for areas around its operations, is the Constructive Dia- the employees to devote their efforts to innovation is logues. However, it is hard to assess their results, since praiseworthy, it is not clear just how much they stand the timing, scope, methodologies, monitoring and to gain from this and, principally, what the gains have evaluation are not made clear in the report. been, in terms of sustainability, from the introduction

of these changes. The aforementioned observations are intended, exclusive- Sustainability Report | On the Balanced Scorecard, only one of the strategic ly, to assist Fibria as it continues on its path to becoming

 Fibria

objectives under Sustainable Value is clearly aimed at a benchmark for sustainability management, in spite of all sustainability, when it would be preferable to have a the difficulties faced within a sociopolitical and economic greater number of related objectives at this level of system that is full of inequalities, a turbulent market and planning. in the light of its own organizational complexity. I fully be-  Although the targets set by the Sustainability Com- lieve that these challenges will be faced with serenity and mittee for 2025 are very important, the Report is not intrepidness when I see the commitment and faith of the clear about the results for 2011. The extensive tables management in the introduction to this Report. I thank

are difficult to understand, when the goals haven’t you for the learning opportunity that you have given me   been met there is no explanation as to why, nor are through this work and for the confidence placed in me. they reformulated, and the indicators are insufficient for monitoring and evaluation. Prof. Rosa Maria Fischer Full professor at FEA/USP, director of CEATS – Center for Social Entrepreneur-  The information under the item Personnel Manage- ship and Third Sector Administration.

Prof. Rosa Maria Fischer [email protected] 20 Fibria Celulose Sustainability Report Fibria’s successful long-term strategy must factor in such sustainability drivers, actively shaping the disruptive pathway towards a sustainable future, and so its place Fibria’s current business involves harvesting a local fragile within it. Its Sustainability Report must be judged by ecology on which many communities depend, to ser- whether it provides a window onto the transformational vice the demands of global consumers. Its Sustainability aspects of the company’s vision, strategy and practice. Report describes the commitments, policies, oversight From this perspective, the current Report is lacking, de- mechanisms, programmes and partnerships enacted spite its comprehensive coverage of the here and now. by the company to effectively manage a value chain so fraught with challenges, alongside relevant data that Unclear is whether this omission is because the com- sets out progress in practice. The Report amply demon- pany’s leadership believes that today’s business model, strates Fibria’s success in optimising its current business further optimized, will work indefinitely. Or perhaps model to sustainability parameters. there is indeed a transformational vision that cannot be shared because of its commercial sensitivity. Whilst Sustainability provokes companies to go beyond ‘doing the Report does therefore stands as a robust statement less harm’. Three billion middle class consumers are ex- of contemporary operational excellence, it does not set pected by 2030, with six billion more aspiring to compara- out the future basis for the company’s own sustainabil-

2011 ble consumption patterns. Fibria’s current business model ity, or its contribution to our common future. It is to cannot be scaled linearly to meet this demand, even with be hoped and expected that Fibria’s considerable vision a lightened environmental footprint and sensitized social and ambition will ensure that this shortfall is overcome benefits. Meeting vastly increased consumer demands will in future reporting. require disruptive technologies and co-beneficial productive arrangements that transform the fundamentals of | Sustainability Report | land, water and energy use. A sustainable future will bring

Fibria innovations in consumer products, services and behaviour, Simon Zadek has provided this commentary in his personal capacity (email: [email protected], blog: www.zadek.net/blog, Twitter: @SimonZadek_

driven by policy developments and market competition, He is senior visiting fellow of the Global Green Growth Institute and the Centre for International Governance Innovation, is an advisor on sustainability issues that are likely to devalue Fibria’s current value chain. to the World Economic Forum as well as major global corporations.

  Simon Zadek [email protected] 1 21 Main results

Financial-economic performance

Statement of value added Years ended December 31 Consolidated (in R$) In thousands of reais 2009 2010 2011

Revenues Gross sales of products and services (less sales returns) 6,540,879 8,625,441 6,183,939 Allowance for doubtful accounts -19,863 -27,047 -22,237 Revenues from construction of own assets and other 3,965,167 1,497,968 1,549,160 10,486,183 10,096,362 7,710,862

Inputs purchased from third parties Cost of products and services sold (including raw materials) -3,381,006 -4,430,347 -2,756,456 2011 Materials, electric power, third party services and other -2,554,597 -1,871,116 -1,222,791 -5,935,603 -6,301,463 -3,979,247

Gross value added 4,550,580 3,794,899 3,731,615

Withholding | Sustainability Report | Depreciation, amortization and depletion -1,330,266 -1,533,593 -1,838,827

Amortization of asset appreciation -320,554 -49,686 -45,368 Fibria

Company value added, net 2,899,760 2,211,620 1,847,420

Value added received on transfer Equity pickup -1,133 -7,328 -414 Financial income 4,937,684 2,626,664 2,780,761 4,936,551 2,619,336 2,780,347

Total distributable value added 7,836,311 4,830,956 4,627,767  

Distribution of value added Personnel and social charges 655,896 601,497 571,419 Direct compensation 442,996 446,205 441,752 Fringe benefits 183,169 125,683 104,888 Government Severance Indemnity Fund for Employees (FGTS) 29,731 29,609 24,779

Taxes, charges and contributions 1,158,587 634,897 135,201 Federal 961,594 369,598 -40,076 State 189,066 246,103 148,748 Local 7,927 19,196 26,529

Accrued interest and rent 3,432,358 2,991,407 4,789,261 Retained income 1,929,225 598,647 -872,622 Non-controlling interest 660,245 4,508 4,508

Distributed value added 7,836,311 4,830,956 4,627,767 22

20091 2 20101 20111

Net sales (R$ million) 5,293 6,283 5,854

Net income (R$ million) 2,589 603 (868)

Assets (R$ million) 32,239 30,163 27,854

Net equity (R$ million) 15,075 15,404 14,540

EBITDA (R$ million) 1,697 2,749 1,964

Pulp production (in thousands of tonnes) 5,188 5,231 5,184

Pulp sales (in thousands of tonnes) 5,248 5,061 5,141

Market value (R$ billion) 18.3 12.4 6.5

Average list price of pulp (US$/tonne) 565 848 822

Production cash cost (R$/tonne) 444 452 471 Share value – FIBR3 (R$) 39.1 26.5 13.9

1. In order to better understand the results, Fibria’s performance analyses for the years ended 2009, 2010 and 2011 draw on consolidated financial information before the reclassification of CONPACEL’s and KSR’s results. In the financial statements and notes there to, the results of these operations are presented in “Net income for the year from discontinued operations”, after net income for the year. The individual results of these operations are presented in Note 37 to the financial statements. 2. The results for EBITDA, pulp production, pulp sales and cash cost consider the results of CONPACEL and KSR for the year ended 2009. 2011 Note: Includes 50% of Veracel.

Social performance

Direct employment (GRI LA1) 2009 2010 2011 | Sustainability Report | Employees 4,749 5,037 4,006

Fibria Outsourced workers 9,518 11,919 14,523

Total 14,267 16,956 18,529

2011 Company staff Men Women Total Aracruz Unit (ES/BA/MG) 1,515 164 1,679 Três Lagoas Unit (MS) 807 90 897

  Jacareí Unit (SP)1 1,021 128 1,149

Piracicaba Unit (SP)2 0 0 0 Central Administration 117 95 212 KSR2 0 0 0 Capão do Leão Forestry Unit (RS) 17 10 27

Total – Brazil 3,477 487 3,964 International offices 19 23 42 Total 3,496 510 4,006 Percentage 87.3% 12.7% –

1. Capão Bonito and Vale do Paraíba. 2. Units sold in 2011. 23 Employees 2009 2010 2011

Age Men Women Total Men Women Total Men Women Total

Average age – – 36.40 37.79 34.31 37.29 38.25 34.42 37.76

Up to 30 years 997 271 1,268 1,047 279 1,326 797 195 992 From 30 2,644 369 3,013 2,726 397 3,123 2,218 278 2,496 to 50 years Over 50 years 436 35 471 538 50 588 481 37 518

Diversity of employees (GRI LA 13) Average hours of training per employee % 29.71 hours 66 24.97 61 24 54

14.4

13.02 2011 12.73 Men 26 Women

3.29 4.1 4.12 | Sustainability Report | 2009 2010 2011 2009 2010 2011

 Women  Disabled  Black and mixed ethnicity Fibria

Health and safety (GRI LA7) 2009 2010 2011

Injury rate (IR) 0.89 0.47 0.23

Occupational diseases rate (ODR) 0.012 0.034 0.004

Number of fatalities 2 3 1  

Ethics Grievances received by the Ombudsman (GRI HR11) 2011

Total number of grievances received 309

Grievances related to human rights1 105

Grievances related to human rights considered improper and were filed 44

Grievances related to human rights considered founded and were treated 55

Grievances related to human rights that were still pending at the end of the year 6

Grievances related to human rights received before 2011 that were considered founded and were treated 4

1. Of which 72 were cases of moral or sexual harassment and abuse of power, 16 were disciplinary measures, 11 were related to discrimination, 5 retaliations of managers towards subordinates and one related to a labor union. 24 Investment in neighboring communities (GRI EC1)1

2009 2010 2011 Fibria R$13,922,901.55 R$13,506,816.42 R$20,615,000.003 Incentivized projects R$347,310.00 R$587,910.00 R$1,993,138.00 Votorantim Institute R$2,182,000 R$3,200,000.002 R$3,098,000.00 Total R$16,104,901.55 R$16,941,274.42 R$25,706,138.00

1. Refers to donations to and investments in the community in benefit of people outside the company. These include contributions to charity organizations, NGOs and research institutes (unconnected with the company’s own technology area), funding support for community infrastructure projects and the direct cost of social programs. It also includes the cost of managing the projects. 2. Updated value. 3. Including the project Sustainable Settlements, in partnership with the Landless Workers’ Movement (MST), the Constructive Dialogues event, investment from BNDES, among others.

Total value of financial and in-kind contributions to political parties, politicians, and related institutions (GRI SO6) 20091 2010 20111

0 R$7.125 million 0

1. Because there were no election campaigns in 2009 and 2011, Fibria did not make any political donations during those years. 2011

Partnership forests Unit Hired area (hectares) Aracruz 78,982 Jacareí1 11,762

| Sustainability Report | Três Lagoas 1,431

Fibria Capão do Leão 14,716

Total 106,891

1. Vale do Paraíba and Capão Bonito.

 Municipalities reached: 214, 69 in Espírito Santo, 15 in Bahia, 44 in Minas Gerais, 13 in Rio de Janeiro, 43 in São Paulo, 27 in Rio Grande do Sul and 3 in Mato Grosso do Sul.  Number of contracts: 3.422  Average area per contract: 31 hectares    10% of the wood consumed in Fibria’s Industrial Units in 2011 is from partnership programs (Forest Savings and Forest Producer)

Environmental performance

Total water withdrawl, by source (GRI EN8) Forest operations Number of points Unit Type of withdrawl 2010 2011 of withdrawl Jacareí1 Surface water (m³) 201,312 77,541 14 Ground water (m³) 204,660 144,470 17 Aracruz2 Surface water (m³) 307,487 386,252 136 Ground water (m³) – – – Três Lagoas Surface water (m³) 198,558 482,566 185 Ground water (m³) 125,940 31,535 2

1. Vale do Paraíba and Capão Bonito. 2. License to capture surface water is only granted in the nursery of Aracruz (ES). We do not have licenses for groundwater capture, which is not required by law. 25 IIndustrialndustrial operationsoperations1 AracruzAracruz UUnitnit JacareíJacareí UUnitnit TrêsTrês LagoasLagoas UUnitnit TotalTotal FFiibriabria 20092009 20102010 20112011 20092009 20102010 20112011 20092009 20102010 20112011 (2011)(2011) TotalTotal (m3))1108,394,56008,394,560 110,395,296110,395,2961107,325,57607,325,576 26,654,81426,654,814 25,535,66525,535,665 28,591,03028,591,030 NA 47,553,02347,553,023 45,740,07045,740,070 181,656,676181,656,676 VolumeVolume consumed 217,965217,9652219,70519,705 217,116217,116773,0273,027669,9619,961778,3328,332NNAA1129,92629,926 125,315125,3154420,76320,763 (m³/day)(m³/day) 1. All waterwater consumed by Fibria’sFibria’s Industrial Units is from surfacewatersurfacewater sources.sources

Speciﬁ c consumption of water Volume of efﬂ uents 3 m3/adt m /adt 50 50 40

45 35 40 37.6 30.9 35.9 34.1 30 35 30.4 29.3 36.1 35.6 34.1 29.3 30 30 27.7 25.2 11 25 20 rt 25 po 21.2 22.5 20 Re 19.8 18.5 18.1 19.9 20 ty

15 15 ainabili

2009 2010 2011 2009 2010 2011 st

1 1

I Aracruz Unit I Jacareí Unit I Três Lagoas Unit BAT I Aracruz Unit I Jacareí Unit I Três Lagoas Unit | Su

1. Includes the speciﬁ c consumption of water of the paper mill located in the same site.1. Includes the efﬂ uent of the paper mill located in the same site. Fibria

COD BOD

Kg/adt Kg/adt 2.84 25 3 23 23 2.5 21 1.94 19 2 16.4 17 1.65 1.5 1.5 15 13.7 14.6 1.28 1.13 13 11.82 1 11 0.815 0.767 8.99 0.73 9 7.54 8.11 8 0.5 0.565 0.3 7 7.39 6.91 5 0 2009 2010 2011 2009 2010 2011

I Aracruz Unit I Jacareí Unit I Três Lagoas Unit BAT I Aracruz Unit I Jacareí Unit I Três Lagoas Unit BAT

SpecificSpeciﬁ consumption c consumption – volume – volume consumed consumed per tonne per tonne of pulp ofproduced pulp produced adt – airadt dried – air tonne dried tonne COD – CODchemical – chemical oxygen oxygendemand demand BOD – BODbiochemical – biochemical oxygen oxygendemand demand

SO2 – sulpherSO2 – sulpher dioxide dioxide NOx – nitrousNOx – nitrousoxides oxides TRS – totalTRS –reduced total reduced sulpher sulpher

CO2 – carbonCO2 – carbondioxide dioxide BAT – ValuesBAT – Vaccordingalues according to the publicationto the publication Best Available Best Av ailable TechniquesTechniques (BAT) by (BA theT) Integratedby the Integr Pollutionated Pollution Prevention Prevention and Controland Control (IPPC) (2001),(IPPC) (2001), used by used the industryby the industry as a as referencereference for bleached for bleached hardwood hardwood Kraft pulp. Kraft pulp. 2626 SuspendeSuspendedd paparticulatesrticulates PaParticulaterticulate ma mattertter kgkg/adt/adt kgkg/adt/adt

44 1.1.44 1.1.256256 1.1.247247 3.3.55 3.3.44 1.1.22

33 11 2.2.6565 2.2.5656 0.820.8222 2.2.6363 2.2.55 0.0.88 2.2.5555 2.2.2323 2.2.0606 22 1.1.8585 0.0.66 0.0.55 1.1.5959 43.643.688 1.1.55 1.1.55 0.0.44 0.0.23262326 0.430.43 0.0.2222 0.0.22 11 0.0.22 0.0.2323 0.0.18871887 0.0.66 0.0.55 00 20200909 20201010 20201111 20200909 20201010 20201111 I Ar Aracruzacruz Unit Unit I Ja Jacareícareí Unit Unit I Tr Trêsês La Lagoasgoas Unit Unit BA BATT I Ar Aracruzacruz Unit Unit I Ja Jacareícareí Unit Unit I Tr Trêsês La Lagoasgoas Unit Unit BA BATT

11 SulfSulfurur didioxideoxide NONOxx kgkg/adt/adt kgkg/adt/adt 20 2011

rt 0.0.44 0.0.44 33 po 2.2.66 Re 0.0.3535 ty 2.2.55 0.0.33

ainabili 22

st 0.250.25 1.1.66 1.1.55 | Su | Sustainability Report | 0.0.22 1.1.55 0.0.22 1.1.5252 0.0.155155 Fibria Fibria 0.0.1515 0.0.1313 11 11

0.0.085085 0.0.095095 0.0.77 0.0.11 0.810.81 0.670.67 0.050.051717 0.050.055656 0.0.55 0.050.05 0.020.024141 0.0.19651965 0.030.0355 0.0.30093009 0.0.29452945 0.020.02 00 00 20200909 20201010 20201111 20200909 20201010 20201111 I Ar Aracruzacruz Unit Unit I Ja Jacareícareí Unit Unit I Tr Trêsês La Lagoasgoas Unit Unit BA BATT I Ar Aracruzacruz Unit Unit I Ja Jacareícareí Unit Unit I Tr Trêsês La Lagoasgoas Unit Unit BA BATT   TRTRSS COCO22 kgkg/adt/adt kgkg/adt/adt 0.0.22 0.0.1212 505000 474700 464600 0.0.11 0.0.11 454500 454500

0.0.0808 404000

0.0.0606 363600 0.050.05 363600 353500 363600 333300 0.0.0404 333300 0.030.03 0.020.0255 303000 0.0.0202 313100 0.010.0133 0.0.006006 0.0.008008 0.010.010202 252500 00 0.0.00280028 0.0.00270027 20200909 20201010 20201111 20200909 20201010 20201111 I Ar Aracruzacruz Unit Unit I Ja Jacareícareí Unit Unit I Tr Trêsês La Lagoasgoas Unit Unit BA BATT I Ar Aracruzacruz Unit Unit I Ja Jacareícareí Unit Unit I Tr Trêsês La Lagoasgoas Unit Unit 27 Waste (in t) (GRI EN22) 20092 2010 2011 Total waste generation 721,492.10 981,402.48 940,380.37 Hazardous waste 741.10 1,022.36 390.38 Non-hazardous waste 720,751.00 980,380.12 939,989.99

Waste reutilized (reuse, recycled, 546,380.00 717,179.75 639,610.72 reprocessed and compost) (75.7%) (73.1%) (68.0%)

Disposal of hazardous and non-hazardous 174,371.00 261,848.68 280,287.45 waste in landfills (internal and external) (24.2%) (26.7%) (29.8%)

1. Data refer to industrial operations. The generation of waste from forest operations do not impact significantly, representing about 0.6% of total waste generated by Fibria in 2011. Data regarding waste from forest operations are available on page 146. 2. Does not include the Três Lagoas Unit, that began operations in 2009.

Certifications

Certified forest area (2011)1 2011 Total area Area certified Area certified Unit (ha) by the FSC® by CERFLOR (PEFC)

Três Lagoas2 350,201 226,659.24 238,373.90

Jacareí 161,086 158,512.71 –

Aracruz 355,288 – 364,885.80 Sustainability Report |

Capão do Leão 107,841 – – Fibria

Total 974,417 385,171.95 603,259.70

1. In hectares. Does not include 50% of Veracel. 2. The certified area includes new land bought and leased for the formation of forests that will supply wood to the new factory to be built in Três Lagoas.

Environmental risks

Conservation areas restored (in hectares)   2010 2011 2012 target Target 2012-2025

3,374 2,800 2,000 40,000 28

Restored and protected habitats (GRI EN13)

(in hectares) Aracruz Jacareí1 Três Lagoas Capão do Leão

Atlantic Rainforest 2010 123,570.0 55,767.2 6,282.0 – 2011 124,060.0 55,620.0 10,980.0 – Savanna 2010 – 7,420.0 65,576.0 – 2011 – 7,690.0 88,620.0 – Mangrove 2010 – – – – 2011 – – – – Restinga biome

Size of protected habitats protected of Size 2010 4,785.6 – – – 2011 5,270.0 – – – Pampa biome

2011 2010 – – – 59,725.2 2011 – – – 60,210.0

1. Vale do Paraíba and Capão Bonito.

Number of species (GRI EN15)

1 2 Capão | Sustainability Report | Jacareí Três Lagoas Aracruz Total Fibria do Leão

Fibria Plants 490 283 864 517 1,786

Birds 387 307 519 256 742 Mammals 50 67 79 51 155 Total species Amphibians 0 33 48 26 95 Reptiles 0 36 52 38 108 Fish 0 0 85 57 134 Crustaceans 0 0 25 0 25

1. Vale do Paraíba and Capão Bonito.   2. Forest partnership areas have been included in the Aracruz Unit.

Carbon balance 2008 2009 2010

Emissions (CO2eq) Forest operations 318,348 298,265 340,611 Industrial operations 1,074,606 1,205,170 758,952 Logistics 409,293 627,147 525,138 Total 1 1,802,247 2,130,582 1,624,701

Burning of biomass (CO2eq) Total 2 7,388,444 9,060,139 11,072,468

Capture (CO2eq) Planted forest 15,867,205 24,985,243 20,261,632 Native forest – 1,049,946 1,049,946 Total 3 15,867,205 26,035,189 21,311,578 Balance [total 3 – (total 1 + total 2)] 6,676,514 14,844,468 8,614,409 1 29 About Fibria

Mission – To develop the renewable forest business as a of the pulp produced at Veracel flows through roads to sustainable source of life. Belmonte maritime terminal, nearly 60 km away, and Vision – Consolidate the planted forests as a producer carried by barges with a capacity for 7,000 tonnes of of economic value. To generate admired profits, togeth- pulp to Portocel. er with environmental conservation, social inclusion and improved quality of life. Traded on the São Paulo BM&FBovespa and the New Values – Strength, ethics, respect, entrepreneurship York Stock Exchange (NYSE), Fibria’s shares1 are held and harmony. by BNDESPar2 (30.42%) and by Votorantim Industrial (29.34%), with 0.07% treasury stock and 40.17% out- Fibria Celulose S.A. is the global leader in short fi- standing stock. In 2011, the company completed the sale ber pulp, operating three plants and a forest base of of operations involving the production and sale of pa- 974,400 hectares, of which 352,000 is intended for per – paper distributor KSR, holding a 50% interest in

environmental conservation. The company also draws Consórcio Paulista de Papel e Celulose (CONPACEL), in 2011 on independent wood suppliers, with 3,422 active con- São Paulo, and Piracicaba (SP) Unit –, concentrating their tracts in 2011 accounting for 107,000 hectares of ad- activities on the pulp segment. ditional eucalyptus production. Fibria serves customers in 42 countries through seven The company has approximately 18,900 workers, includ- distribution centers and six commercial and representa- | Sustainability Report | ing direct employees and outsourced workers, and is action offices in cities in Europe, Asia and South and North Fibria tive in 254 municipalities of seven states in Brazil. Its op- Americas. The offices are located in São Paulo (seven), erations include forest areas and plants in Espírito Santo, Nyon (Switzerland), Csomád (Hungary), Miami (USA), Mato Grosso do Sul and São Paulo, as well as plantations Hong Kong and Beijing (both in China). In 2011, 89.9% in Bahia, Minas Gerais, Rio de Janeiro and Rio Grande of Fibria’s pulp was exported, and used to produce tis- do Sul, Caravelas (BA) maritime terminal and Barra do sue paper (54%), printing and writing paper (22%) and Riacho specialized terminal, Portocel, in Aracruz (ES), in specialty papers (24%). which it holds 51% of shares in a partnership with Ceni- bra. The company also has a joint venture Veracel, in the

1 Data as of 12/31/2011.   municipality of Eunápolis in Bahia. This is operated to- 2 BNDES Participações S.A. (BNDESPAR) holds a 21% interest in connection with a shareholders agreement with VID during the first 3 years, and 11% in gether with Swedish and Finnish group Stora Enso. Most the following years.

Shareholder structure

 BNDESPar2 30.42%  Votorantim Industrial 29.34%  Treasury stock 0.07%  Outstanding stock 40.17% 30 Global presence

Northern Europe

Nyon, Switzerland

Mediterranean Northeastern USA

Gulf of Mexico Southeastern USA Miami - USA 2011 | Sustainability Report |

Fibria São Paulo - Brazil

 

2011 Sales distribution by region 2011 End use

 Europe - 42%  Tissues - 54%  North America - 25%  Printing and writing - 22%  Asia - 23%  Specialities - 24%  Others - 10% 31

Northern Europe

Csomád - Hungary

Beijing - China

Chinese coast

Hong Kong - China 2011 Southeast Asia | Sustainability Report | Fibria

 

VeracelVeracel Belmonte Posto da Mata Caravelas Conceição da Barra Portocel Aracruz Três Lagoas Três Lagoas

São Paulo Vale do Paraíba Capão Bonito Santos Forest

Industrial Unit (pulp)

Port Capão do Leão

Office

Distribution center 32 Fibria has mapped its main stakeholders, as shown in the table below.

Stakeholder engagement (GRI 4.14) Most material issues Stakeholders Tools and engagement processes (taken from the ten most material issues from Fibria’s Materiality Matrix) Employees Code of Conduct, publications (Vital newspaper, Ethics Informe-se, EcoCiente), online communication Strategy/commitment to Sustainability (Fibria Net, eletronic bulletins), Meet the CEO, organizational climate survey Suppliers Code of Conduct, participation in the CDP Ethics Supply Chain, programs for development of Strategy/commitment to Sustainability local suppliers (PRODFOR and PQF-Avançado), evaluation questionnaires, Na estrada com segurança magazine (for truck drivers) Clients Contact with commercial and technical assistance Certifications and voluntary commitments offices, partnership for technology development, satisfaction survey Investors Quarterly results, investor relations website, Ethics calls with Investor Relations area Strategy/commitment to Sustainability Shareholders Quarterly results, investor relations website, Ethics 2011 Governance Portal Strategy/commitment to Sustainability Government / public Representations in forums and associations Ethics authorities (eg. ABRAF, ABAF), development in projects with other organizations (eg. Costa das Baleias Development Plan) NGOs and discussions Participation in forums and associations Ethics

| Sustainability Report | forums (eg. The Forest Dialogue, the Brazilian Forest Certifications and voluntary commitments Dialogue and the WBCSD), development of Strategy/commitment to Sustainability

Fibria projects in partnerships with other organizations

(eg. New Generation Plantations) Neighboring communities Engagement, Operational Dialogue, Relationship with negihboring communities Face-to-Face agenda, Community Meetings, Impact of the eucalyptus plantations on social and development projects, Constructive biodiversity Dialogue, publications Certifications and voluntary commitments Programs for socioeconomic education, Ethics Speak with Fibria, and Fibria and You. Use of water Strategy/commitment to Sustainability Environmental risks

  Emissions, effluents, and waste Specific communities Engagement, Operational Dialogue, Relationship with specific communities Face-to-Face agenda, Community Meetings, Impact of the eucalyptus plantations on social and development projects, Constructive biodiversity Dialogue, publications Certifications and voluntary commitments Programs for socioeconomic education, Ethics Speak with Fibria, and Fibria and You. Use of water Strategy/commitment to Sustainability Environmental risks Emissions, effluents, and waste Forest partners Forest Producer and Forestry Savings programs Impact of the eucalyptus plantations on (Wood suppliers) biodiversity Forest partners (Wood suppliers) Industry associations Involvement in boards and committees Certifications and voluntary commitments (eg. BRACELPA, ABRAF, ABAF) Ethics Strategy/commitment to Sustainability Press Press Relations Certifications and voluntary commitments Ethics Strategy/commitment to Sustainability

1. The Ombudsman, the Fibria Notícias and Fibria News newsletters, the institutional website and the Sustainability Report are intended for all stakeholders, in Brazil and abroad. 33 Fibria’s industrial and forest operations1

Municipali- Workers Production3 Forest base4 ties where Pro- Unit Em- Planta- Other Fibria is Outsourced2 Total Capacity duction Reserves6 Total ployees tions5 uses7 present 2011 Aracruz 134 1,679 9,050 10,729 2.3 2.32 201,228 129,332 23,461 355,288

Jacareí 87 1,149 2,726 3,875 1.1 1.10 84,942 63,304 10,465 161,086

Três Lagoas 6 897 2,590 3,487 1.3 1.23 167,909 99,602 19,194 350,202 Capão 27 27 101 128 – – 40,761 60,210 4,513 107,841 do Leão Offices abroad – 42 0 42 – – – – – – Central management – 212 56 268 – – – – – – office Fibria 254 4,006 14,523 18,529 4.7 4.66 496,840 352,447 57,614 974,414

1. Data as of December 31, 2011. To identify its plants, Fibria took the name after the municipalities where they are located. Thus, the former Barra do Riacho Unit was renamed Aracruz Unit. 2. Exclusive outsourced workers: outsourced workers who serve Fibria only.

3. In millions of tonnes. Not including Veracel’s 50% interest. 2011 4. In hectares. Own, leased and partnered areas. Not including Veracel’s 50% interest. Not including forest fostering areas. Rounded figures. 5. Renewable plantations of eucalyptus. 6. Areas intended for environmental conservation. 7. Roads, firebreaks, buildings etc.

Timeline | Sustainability Report |

Carlos Aguiar leaves the Fibria signs up to Fibria presidency of Fibria  Start up of operation support the Interna- and executive of the new pulp tional Year of Forests, Marcelo Castelli bleaching operation declared by the General is named to at Fiberline A at the Assembly of the United the position Aracruz Unit (ES) Nations (UN)

February January 2011

Completion of the Completion of the   sale of graphic pro- sale of the Consórcio Creation of the Forestry ducts distributor KSR Paulista de Papel e Department under the Celulose (CONPACEL) responsibility of Aires Gallardo and which is linked to General June Management for Forestry Planning and Development, the ES/BA and SP/MS/RS Forestry areas, the Forest Merger of Corporate Environment area and Communications Corporate Safety Management with the Sustainability Sale of Fibria’s Paper and Corporate Unit in Piracicaba (SP) Relations area

August September October

Incorporation of the The first in Creation of the Hiring of a new General Management a series of Governance, Risks and director of Human and for Procurement by the Constructive Compliance (GRC) area Organizational Develop- Industrial Management Dialogue events is encompassing Risk ment, Luiz Fernando area, now called held in Vitoria (ES) Management, Internal Torres Pinto Industrial Operations, Controls, Audit and Engineering and the Ombudsman Procurement area 34 Business model – To facilitate the understanding of the externalities affecting the company, as well as resources connection between our financial and nonfinancial per- and relationships used and affected, and how the busi- formance, we present a simplified diagram of the Fibria’s ness model interacts with externalities and the resources business model, following the proposal of the Internation- and relationships to create and maintain value over time. al Integrated Reporting Committee (IIRC)1. According to 1. Towards Integrated Reporting – communicating value in the 21st century – the IIRC, integrated disclosure must address the relevant Discussion Paper, available at www.theiirc.org.

INPUTS ACTIVITIES outcomes

Supply chain

1. Eucalyptus leaves, twigs and bark Research left in the field following mechanized harvesting.

Development and planning • Forest residues1

2011 • Investment • Solid waste • Land Production of seedlings • Impact on water • Water resources • Fertilizers • Impact on the soil Silviculture • Equipment • Impact on • Fuel biodiversity | Sustainability Report |

• Labor MANAGEMENT FOREST Forest harvesting • Impact on communities Fibria

Wood logistics

Production of chips

• Investment • Solid waste Cooking • Water • Effluents • Chemical products • Emissions   • Energy Bleaching • Impact on water • Equipment resources • Fuel • Impact on

PRODUCTION OF PULP OF PRODUCTION Drying and baling • Labor communities

Recovery and Utilities

• Impact on water • Investment resources • Equipment • Emissions Storage and logistics of pulp • Fuel • Impact on SALE OF PULP • Labor communities • Financial returns

Clients every three months, at the end of each quarter. of each end at the months, three every once at least 162 meet article of Brazilian under Corporate members Law. The assigned toduties the in addition ment, Manage of the action the is to supervise function prime Its legislation. according to pertinent the Shareholders, of the Meeting at aGeneral chosen of substitutes, number equal an and titular members of up three CouncilFiscal –made Titular Directors of Board the of Members 31-enu.html?idioma=enu. at http:// are available Board, Council Fiscal ofExecutive the and those and meetings, Board of minutes the The serve. they which on committees of the all meetings as well as all occasions, on present be should members and ayear four times take at least place meetings These meetings. at all Board full complement to ensure a of substitutes, number equal an and prevailing legislation), in compliance with agreement, shareholders’ Management Governance Board of Directors of Board Osvaldo Ayres Filho – Secretary – Filho Ayres Osvaldo Farias de Lopes Ricardo Sérgio Hopp Carlos João –Chairman Écio Júnior Pereira Costa da José Wang Wei Chang by Votorantim –nominated Industrial CalfatRaul by Votorantim –nominated Industrial –Chairman Penido Duarte Luciano José member –independent Campos Figueiredo de Armando José by Votorantim –nominated Miranda de Carvalho Industrial João by BNDESPar –nominated Ramundo Cesar Maciel Julio by BNDESPar –nominated Fingerl Eduardo Rath D’Ambrosio Silva Alexandre by Votorantim –nominated Industrial member –independent Silva Gonçalves Alexandre

–

1 made up of nine members, two of whom are independent (with no links to signatories to the to the to signatories links no (with are independent of whom two of up members, nine made 1 2 3 Substitute Samuel de Paula Matos de Samuel Manso Luiz Pizarro Antonio Bertoncini Antonio Mario Mattos de Rego Bedeschi Laura Filho Andrade de Eduardo Borges Gilberto Lara Nogueira Lara Gilberto Santos Oliveira de Paulo Henrique Suarez Pompeo José Sergio Halewicz Aquino Maurício .infoinvest.com.br/enu/s- fibria -

  Fibria | Sustainability Report 2011 35 36

  Fibria | Sustainability Report 2011 Personnel & Remuneration Committee which is the chairman of the Board. chairman of the is the which of one shareholders, majority from two representatives to addition – in officers executive of them –two executives three and members independent has five Committee Sustainability The company’s the or reputation. stakeholders, with relations results, long-term operations, the on potentialimpact or arisk that represent handlingand matters identifying, relatingas to well as sustainability, all aspects on Board the –advises Committee Sustainability benefits. and salaries the taking into consideration members, Board and officers executive for the policy remuneration the proposes it addition In company is exposed. the to which risks and opportunities the as well as nies, by Brazilian foreign compa and adopted practices light inbest the of the Board, Executive by the forward put practices should be adopted. be should strategies policy financial which determining and risks, and opportunities assessing trends, and scenarios possible out as working in well as company’s for the position, financial potentialrepercussions the and situation economic Finance Committee of the internalactivities andauditors. independent the supervising and processes management risk of the appropriateness the norms, regulatory and statutory legal, the of observance financial ofreports, the integrity and for quality ensuring the –responsible Committee &Risk Audit Samuel Saldanha Teixeira Saldanha Samuel – Secretary Wang Wei Chang Suarez Pompeo José Sergio Miranda de Carvalho João Carlos Alberto de Oliveira Roxo Oliveira –Secretary de Alberto Carlos Eduardo WeguelinSergio Vieira Vianna Besserman Sérgio YoungRicardo Silva Sachs Ignacy Valério Campos Francisco Fernandes Cláudio Valladares Benedito Pádua Galhardo Aires Krenak Lacerda Alves Ailton –Coordinator Penido Duarte Luciano José TorresLuiz Fernando Pinto –Secretary ChristinaVictoria Bloch Penido Luciano Duarte José Campos Figueiredo de Armando José Alexandre Gonçalves Silva –Coordinator Nogueira Lara Gilberto João Adalberto Elek Júnior Elek Adalberto João Adrianne Soave – Secretary Adrianne Soave Halewicz Aquino Maurício Manso Pizarro Luiz Antonio Paula –Coordinator Matos de Financial and Specialist Samuel – assists the Board of Directors and the Executive Board in analyzing the Brazilian and world Brazilian the world and in analyzing Board Executive the and of Directors Board the –assists 3 – Coordinator – has the task of analyzing the human resources policies, structures and and structures policies, human resources the of analyzing task –has the - SEC Form 20-F and CVM Reference Form). CVM and 20-F SEC Form (see status of in ethnicity, terms be gender, it religion, social or whether physical discrimination, and behavior unethical of assets, use abuse, inappropriate fraud, bribery, environmental of corruption, accusations with tois available deal This office involved. people the of manner,identity the yetconfidential and open protecting while in impartial, an them with dealing Code of Conduct), relating toCode the (see of Conduct issues –handles Ombudsman the of Office Auditors). Independent (see to management risk allocated resources of the appropriateness the and management by the determined tolerance maximum the policies, management resource and risk the parameters, management risk assesses also It procedures. and rules policies, lation, Auditing Internal munities and other stakeholders. com local for with tocompany, relating to engaging the and critical processes the are most themes environmental socio- which assesses also committee This into operations. and company’s the guidelines management and policies (CIS) Commission Sustainability Internal made on a collective basis. acollective on made are decisions its and necessary, whenever month,or once a least at meets Board Executive The designation. specific CEO, ishave the no others member the while One of re-election. possibility the term, with for aone-year Directors, Executive Board Luiz Fernando Torres Development Luiz Fernando Pinto &Organizational –Human –Commercial Logistics &International Carsalade Felipe João João Adalberto Elek Júnior Elek Adalberto João Francisco Campos Valério Fernandes Engineering –Operations, Industrial & Procurement Operations Forestry – Galhardo Aires StrufaldiMarcelo Castelli –CEO – comprises a minimum of three and a maximum of ten executive officers chosen by the Board of of Board the by chosen officers of ten executive aminimum amaximum and of three –comprises – oversees the company’s controls and risk management, and compliance with the applicable legis applicable the with compliance and company’s the management, risk controls and –oversees 3 – Finance & Investor Relations –Finance &Investor – supports the Executive Board in integrating strategic sustainability sustainability in integrating Board strategic Executive the – supports - -

  Fibria | Sustainability Report 2011 37 38

  Fibria | Sustainability Report 2011 Remuneration Committee Over 50: 19 50: (73.1%)Over 6(23.1%) 50: and 30 Between 1(3.8%) 30: Under groups: Age 2(7.7%) mixed): and black indigenous, Asian, (handicapped, Minorities (11.5%) 3women (88.5%); 23 men /female): (male Gender 26 Members: committees advisory Board 10 (55.5%) 50: Over 7(39%) 50: and 30 Between 1(5.5%) 30: Under groups: Age 1=(5.5%) mixed): and black indigenous, Asian, (handicapped, Minorities /female):17 (5.5%) 1woman and (male (94.5%) Gender men 18 members: Substitute and Titular Directors of Board Composition of governance LA13) (GRI bodies Personnel and and Personnel Internal Auditing Internal

Audit & Risks Committee &Risks Audit General Meeting of Shareholders Board of Directors Board Executive Board Sustainability Committee Sustainability Ombudsman Finance Committee Finance Fiscal Council the information necessary to carry out their legal and statutory duties in the best possible manner. possible best in the duties statutory and legal their out to carry necessary information the of executives and members by Board to Fibria, facilitate consultation outside or within any from location, accessed be GovernanceCorporate Portal 4.5). (GRI at http:// company’s policy the remuneration about more Learn in 2011 officers executive of the neration R$27,312,213.87. amounted to remu total The strategies. company’s the annualin an accordance business on basis, with are reviewed indicators The individual. (iii) and area; or department (ii) company; (i) categories: the for indicators strategic financialand weighted of in terms are determined targets The target. 300 level performance the thanmeeting higher reward that is 50% a ‘stretch’ or offers and toexceptional the target corresponds 500 level philosophy. performance remuneration The company’s the with aligned multiples using and salary targets predetermined with associated 300), level (performance target is a there reward where sharing profit concept, the on is based remuneration Board’s variable Executive The ‘stretch level,or target’. performance exceptional maximum and ‘target’ of the average is the which 400, level at performance plan company’s in the business set gets tar to meeting is subject tomarket’s the aligned third quartile amounts variable term long and short of the Payment market. in the –75% obtained results third –of quartile the the in linewith are adjusted incentives term long and remuneration variable market in the paid .Fees, remuneration average in linewith executives its paid to benefits and remuneration of fixed amount appropriate,the if to adjust, results survey the uses and sultants, con external by specialized conducted remuneration, ofexecutive total in surveys participates company regularly The events. certain or projects to major or in relation targets specific of aresult meeting as to rewards grant executives, may also exceptional of Directors Board The incentives. long-term (iv) and remuneration; variable (iii) benefits; (ii) remuneration; fixed (i) comprises: at www. in Portuguese Standard available Technicalthe for Accounting Committee Standard Parties, CPC of (R1) Related 05 –Disclosure in accordance with (INSS), system security social of the contribution employer comprises: members Board of the remuneration total The Committees. Sustainability and &Remuneration, Finance, &Risk, Auditing of the Personnel in 2011 company’s of members the remuneration total Board The to R$2,136,633.90, came not including members of shareholders. Meeting at aGeneral approved and determined were tomember each signed as amount and policy remuneration individual the amount, parameter. the as global the abroad, and defining After in Brazil size operating Fibria, as same company,the organizations used external which by independent an out carried on a market survey based was Directors of Board the of members the for remuneration fixed of the amount The paid. financial year the 2011, In 2009. the on company’s share was price based or remuneration remuneration no variable 29, October on signed Agreement Shareholders’ of the terms the in accordance with thisfunction, for performing remuneration rightto receive their renounce Participações by Votorantim nominated were BNDES and who Industrial of Directors Board to Fibria the elected members The committees. in statutory participation (ii) and amount; monthly Remuneration policy Cavalcanti forthepositionofdirector, withoutspecificdesignation, toactasthecompany’s Financial andInvestorRelationsOfficerasof February 1, 2012. 3. LeftFibriaonJanuary 31, 2012. According totheMaterialFact publishedbyFibriaonJanuary 30, 2012, theBoardofDirectorselectedGuilhermePerboyre aforementioned agreement, available athttp://fibria.infoinvest.com.br/static/enu/acordo-de-acionistas.asp?idioma=enu (GRI4.4). meetings before: (i)eachgeneral meeting; and(ii)themeetingsofFibria’s BoardofDirectorswhoseagendainvolves discussinganymatterlistedinclause4.3ofthe Participações S.A. (BNDESPar) and Votorantim IndustrialS.A. (VID)onOctober29, 2009, thecontrollingshareholdersshould, undercertain circumstances, hold its committeeshasbeenconductedonanannual basis, since2010(GRI4.10). PursuanttotheFibriaCeluloseS.A. Shareholders’ Agreement, signedbyBNDES 2. Sustainabilityisaregulartopicofthebi-monthly BoardofDirectorsmeetings(GRI4.9). Self-assessmentoftheperformanceBoardDirectorsand 1. As ofDecember31, 2011. – the members of Fibria’s Board of Directors receive fixed remuneration based on: (i) a fixed fixed a (i) on: based remuneration fixed receive of Fibria’s of Directors Board members –the cpc .org.br/pdf/CPC05R1_final.pdf. The total remuneration of the Executive Board members members Board Executive the of remuneration The total .org.br/pdf/CPC05R1_final.pdf. – this is an interactive tool that presents good corporate governance practices and can can and practices governance corporate good that presents tool –thisisinteractive an .infoinvest.com.br/ptb/s-14-ptb.html?idioma=ptb .infoinvest.com.br/ptb/s-14-ptb.html?idioma=ptb fibria - - - -

  Fibria | Sustainability Report 2011 39 40

  Fibria | Sustainability Report 2011 munities, 11.4% concerned violation of policies, 8.4% concerned irregularities involving environment, health and and health environment, involving 11.4% irregularities munities, concerned 8.4% of policies, violation concerned com and partners 13.3% business of management, with relationships inappropriate conduct and concerned power 33.7% recorded, 21 and of all cases abuse Of closed (7%) concerned have analysis. been total) are pending of the services Ombudsman raising at all concerns times. of individuals anonymity maintaining the Audit function, Internal by the upon are acted damage property or fraud,involving embezzlement Cases case. in each steps necessary the taking services, Ombudsman the Commission oversees Conduct and Ethics The Code. by the addressed not taken matters to concerning be steps according indicates to and criteria, uniform assessed are are valid,that concerns all cases ensuresthe reported whether checks violations, possible examines managers and directors executive up of made and an the of Commission of Ethics Conduct Code Toapplication Conduct, the reaffirm channel to enable confidential reporting of any violation of the the of of anyof violation Code Conduct. reporting confidential tochannel enable intranet an and Internet) and service voicemail (phone, channels communication external company maintains three The HR8). (GRI human on rights (35% trained sionals were of total) 116 and (2% area) professional of total the permanent area, one profes Corporate the Security Within outsourced discussed. are matters when of Code meetings Conduct debriefing and employees of integration new the during HR3) (GRI human rights 2011,In 412 on organization of the procedures and (10.3% policies the on employees trained formally were of total) SO3). Code the (GRI of Conduct signed had employees In 2011Units. Industrial and Forest the of allof 98% meetings results the at monthly are affirmed to all employees delivered of this document, contents The records. to employment their date ofthe hire,on is later attached which of receipt signs a proof who employee, to new each is delivered A document copy oflevel. the hierarchical of the tive irrespec indirect, or direct either to all employees, company. applies the document The outside or inside at work, and relations personal in their employees its from expected of behavior standards the Fibria’s Code establishes of Conduct Conduct of Code Intranet http://www.fibria.com.br/web/en/institucional/ouvidoria.htm Internet Brazil Letter Phone Whistleblowing channels:

Fibria Net > International Offices > of Code Conduct Offices >International Net Fibria for employees) (exclusive www. 72696 Nº Postal Caixa Celulose S.A. Fibria Ouvidoria other https://secure.ethicspoint.com/domain/media/en/gui/27629/phone.html For countries: 891 17300800 (Brazil) .com.br > Institutional >Ombudsman .com.brfibria >Institutional – In 2011, –In to Fibria’s raised were (93% complianceconcerns 288 of which 309 Ombudsman, - - - correct the deficiency (GRI HR4). (GRI deficiency the correct to third in case the in procedure a change with warning) verbal one and written takenwere (one actions disciplinary of which in two misconduct, involved 3remaining cases The system. Ombudsman the through whistleblowers the to given was to feedback and have grounds, no deemed and analyzed were year. same in the Eightclosed reports Discrimination HR11). (GRI suppliers 2regarded and professionals outsourced or permanent regarded cases 53 on of these to haveacted were and grounds deemed were remaining 55 The reports professionals). outsourced or permanent (all involved to filed haveand grounds no deemed were 44 105 the Of reports, of managers). attitude the to (related retaliation on 5reports and actions disciplinary on 16 union; alabor reports with to related relations report 1 of power; abuse and harassment sexual of bullying, 11 72 reports follows: as prejudice; and of discrimination cases Human rights HR4). (GRI involved of parties contract of the totermination up warnings the verbal from ate circumstances, in the appropri considered steps disciplinary company took the cases, other 60 forof internal improvement In tions controls. sugges or procedures and of policies for revision recommendations to in have 46 resulted grounds deemed cases The forrequests information. or of clarification remaining 26.2% questions were The ofraised concerns matters. miscellaneous other concerned 2.5% and environment, work of the out conduct and company reputation involving safety, matters 4.5% concerned end, 4 cases were still being evaluated (GRI SO2 SO4). and evaluated (GRI being still were end, 4cases not 4 and to have grounds. At year decision) final pending currently one and inhave resulting dismissals (2 grounds 11 the Of in Audit 2011, Internal by the investigated of fraud corruption and suspicions to 3considered closed, 7were Code in the of Conduct. addressed and Units Anticorruption practices implementation. aiming at ensureeffective basis, their amonthly planson of action status the team Audit monitors Internal The Committee. toCEO the Risks and toAudit and the reported plansare action and analyses of the by 11 Fibria’s results required The conducting as Ombudsman. services special well as 2011In processes, industrial and corporate, forest involving 14 out team Audit carried Internal services the tobusiness. value the add and of operations ness to effective improve the fashion, seeking disciplined and in a systematic procedures and standards policies, ance with compli their way checking and in independent an forFibria’s evaluating processes team Audit is responsible Internal Audit Internal –105 reports received by the Ombudsman in 2011 regarded human rights (34% of total), classified in 2011 Ombudsman by the –105 received classified of total), (34% reports human rights regarded – Eleven reports of discrimination were made to the Ombudsman in 2011, toOmbudsman the made were of discrimination –Elevenreports and on all acted were and –Corruption risks are evaluated on a regular basis by Fibria’s basis all aregular are evaluated on team Audit across Internal risks –Corruption - - - -

  Fibria | Sustainability Report 2011 41 42

  Fibria | Sustainability Report 2011 Internal controls risks). (regulatory markets and in countries in force regulations the with in disagreement from actions problems also and risks) (events phenomena natural physical by caused tobusiness or the to production impacts risks), environmental and (social operations from impacts mental environ risks), (reputation company of trademark the exposure negative risks), (credit third parties with undertaken obligations from risks the manages company also The risks). (operating process production the from arising to those (marketrisks) business financial the inmarketof the view in traded variables from gamut runsthe to –which exposed is the company profitability expected and goals in light growth of monitoring the require ongoing and results porate cor on impact which –factors in Fibria’s ofare considered strategy risk management risk types of different A number treatment. appropriate the recommending and analyzing tax), and legal cial, operating, finan reputation, strategic, (suchas risks significant the in mapping Management area assists Management Risk The activities. related the on details and guidance Risk management score. possible highest year,tive Compliance. and suchCode as Management in Risk criteria 2011 of Conduct, In the attained processes these consecu second the industry, the for of the companies among first companyplaced was The of thistype. index global important most the World, (DJSI) Index Sustainability year,Jones Dow consecutive the in is Fibria listed fifth the For structures. these and alignment between effectiveness the monitoring and measuring control activities, the and governance to link the between applies same The directors. Fibria’s of assisting board Committee, abody Risks toand Audit the areais linked GRC toCEOThe the reports and pany’s governance. com the strengthening and alignment to business contributing the areas, the among synergy to secure sought Fibria Controls Internal Accordingly, Audit, Internal Ombudsman. and Management, Risk concerning integrating activities Governance, and Risks Compliance risks Management prior years. years. prior as in auditors, independent the opinion, by unqualified an with were certified, financial reports consolidated The of PricewaterhouseCoopers. evaluation independent the under 480/09, No. Rule CVM –and 404 Section – Internal Act the on (SOX) Controls for 2011 recertification obtained Fibria Sarbanes-Oxley with in compliance Fibria’s levels. strengthens Governance which of Directors, Board the assisting directly Committee, toFinance and Committee, the bodies Risks and toAudit the are reported services The regulations. and requirements SOX/CVM the “significant” fallingaccordance with the in category, under offshore, and onshore both considering Fibria’s Compliance and address areaand main Governance, processes, by Risks the operational rendered and planned are certifications company’s of the internal These end. year controls at each toeffectiveness the attest BM&FBOVESPA trading at shares of companies officers the requires SOX, with as which, 480, No. Rule CVM published Commission (CVM) Exchange and Brazilian the Securities from 2009, as Commission (SEC); Exchange and Securities – The company has been SOX certified since 2006 – applicable to the organizations regulated by the the by regulated organizations the to applicable – since 2006 SOX certified company has been – The – Fibria’s Risk Management Policy has been approved by the Board of Directors, which provides provides which of Directors, Board by the approved has been –Fibria’s Policy Management Risk – In 2011, –In Compliance area, and (GRC) Governance, Risks the created Fibria - - - - - In 2011, of the 306 strategic risks found, 80 were considered to be priority and grouped into 13 types of primary risks. 2011, intoIn 13 of primary grouped and priority types to be considered were found, 80 risks strategic 306 of the materialize. risks if consequences, the with is to it deal prepared how and level Fibria’s show and business current exposure the culture across prevention risk the is to embed goals ERM of the One areas. functional the among cooperation and ing communication encourag levels, at all hierarchical organization the to encompass in order integratednated and for management, risk in 2010. found analyzed and is coordi risks the treating and process ERM at prioritizing The aimed project, ERM the 2011, – In through (ERM) management risk strategic its continued to Fibria develop Management Risk Enterprise plans and key risk indicators (KRIs). keyplans and indicators risk of action design in areas the business the towards involving made have been efforts Since then of Directors. Board the and Committee Risks and Audit the Board, Executive the with validated then was risks of Fibria’s matrix The priority levels: impact following at the is analyzed risk levels. every Fibria, At different at generate risk consequences may given a evaluating impact, the when Specifically probability. and impact their accordancewith in are classified Risks R Low Medium H Critical Levels isk Probability igh Probability Highly probable Highly probable I Highly probable Highly probable mpacts Probable Possible Remote Probable Possible F Remote inancial N u Low o mber Low H ealth and and ealth security security f act Medium 71 Medium i o n Impact s pla Impact Environ mental n High High 112 s a 17 nd treatme nd High High - Critical 34 62 22 I mpact Levelsmpact cultural Social / Social Critical n t

Probability Highly probable Highly probable reputation I mage/ prioritized prioritized Probable Possible Remote in 2011 in Risks Risks Organizational Organizational Low climate climate N u mber Medium 14 o f indi Impact Legal cators High High 26 9 - - / Kr i Critical s 15 11 9

  Fibria | Sustainability Report 2011 43 44

  Fibria | Sustainability Report 2011 Secret Assessment todeterminethe allegedantitrustconduct. ducts producersanddistributors. Status: OnDecember15, 2008, DecisionNo909was handeddownbytheNationalEconomicLawOfficesupportingaPreliminary ment areas, supported by the GRC area. GRC by the supported areas, ment Environ Environment Forestry and by Industrial ofmonitored risk indicators with mapped been have already actions whose of subjects consist d) climateThese change. and waste and of water, use b) effluents biodiversity, c) emissions, on of plantations impacts a) including: four materialissues, relating to Risk at least Environmental the example, For viewpoint. management risk the from actions in its prioritizes Fibria similar to those very are also stakeholders key to be for internal external and deemed thatmany finds one topics project, the by ERM identified of risks Matrix the with Matrix Materiality the checking By matrix Materiality versus matrix Risks threats. such of to prevention approach of acomprehensive are evidence risks environmental and plansto social treat various The responses. and actions up speed Commissions to Relationship of Local creation for Fibria’s 3) and operations, 32 for priority the programs communities of engagement creation 2) communities, the with dialogue 1) face-to-face are highlights: initiatives following The status. deployment its including project, ERM of the register risk in the recorded at Fibria, in progress ofare currently thisrisk for mitigation actions Nine communities”.as Matrix specific with Materiality “relationship the in identified issues of the is one risk of Bahia. This far in Santo and the south of Espírito ismaterializing ahighchance risk there of north the in the where communities, traditional with to dialogue of risk disruption is the sustainability, regarding highlightedmatrix in the issues of the One case A real involvedstandards as welland asinternational complianceparties stringent certification with agreements. the with relationship ongoing the on depend which risks environmental and social such as consequences, intangible to with areas given attention special with risks and of Fibria’s view actions in-depth and asystemic enables process This nor were there any non-monetary sanctions in 2011. sanctions any there were non-monetary nor paid, were fines No years. financial figuresdifferent for the in be included may fine to come, years suchsame that the in initiated 2011. the in to may assessment an discussed be continue to assessments pending in mentioned fines The in afine relation represents to amounting R$641,654,195.45, years, previous from pending R$50,000,000 of which Tax assessments SO8) (GRI regulations and valueMonetary of arisingsanctions fines withandfrom number lawsnon-compliance of non-monetary 1 laws of antitrust Legal claims for unfair competition, trust and monopoly claims legal and Fines Preliminary Assessment No. 08012.002921/2007-64 (Respondent: Aracruz Celulose). Matter: Determination ofestablishmentpricefixingbychlorineandby-pro- 1 (GRI SO7). (GRI : Fibria was a party to five tax assessments with significant fines during fines significant with assessments tax 2011, to five were which four of a party was : Fibria – In 2011 – In claim violation on to a legal a party was Fibria - remote, and in relation to the second (December 2010) is possible. As a result, no provisions have been made. have been provisions no aresult, 2010) As is possible. (December remote, to second the in and relation is 2007) (December assessment tax tofirst the in relation losses of incurring possibility the advisors, legal external and R$71 the of company’sopinions internal to the on amounts notices million.Based tax two the under imposed fines of value the current inadjusted Brazil. The by taxed aBrazilian company, been distribution has already amount the so adividend However, subsidiary, in by was fact the adjustment. earned to be thisincome, considered equity as by Fibria recognized and Newark subsidiary by the earned income on contribution social and tax income of corporate payment company, the 2007 2010, and against –Two issued were in December notices –Newark tax demanding IRPJ/CSLL of as 2011. possible, to be considered now and as remote classified previously losses, of incurring topossibility in regard the stance conservative amore to adopt cided de advisors legal company’s the internal external and session, judgment aforementioned of the outcome the Given has yetto case. vote the who on STF, Barbosa, of the head of the Joaquim Minister decision the 74 2,158 No. ofMeasure article of Provisional to await tutionality suspended, was session The four and votes against. 17, August On in favorcast the of consti votes five 2011, with in question, ADI the to judge session anew held STF the company in Brazil. associated to parent or is available the income that whether of affiliate, independent or subsidiary by aforeign-based earned income on contribution social and tax 74 2,158, No. ofMeasure article of income Provisional of corporate constitutionality the levying the introduced which in 2001. Court) Supreme is to question procedure aim of thislegal The (Federal toSTF the submitted was Industry) Confederation of (National CNI brought by the 2,588, No. (ADI) of Unconstitutionality for aDeclaration A Procedure in Hungary. established by subsidiaries earned in Brazil any profits taxation from exempts which taxation, to double avoid Hungary and Brazil between treaty the procedure, judicial of notably national rules contravention of certain is in direct RFB by the adopted up, set was it consequently, that, and where position the country in the operations its on to full taxation is subject subsidiary Hungarian that the advisors, legal of independent our opinion the and understanding, is our It market. world in pulp forthe selling in Hungary, is responsible operates and founded was which in question, subsidiary relating to2007 financial the year. adjustment, The in Brazil equity recognized as and by asubsidiary abroad earned on income contribution social and tax failure million, income payalleged to for corporate R$50 of afine involving RFB, 2011,the from notice tax September another In Ltda. received eParticipações Empreendimentos Normus subsidiary the in the administrative sphere. still is case the while appeal enterto a agreement suitable the of formal notification isthe awaiting management The notice. tax the to uphold members, six the amongst vote, decision asplit following casting the on based opted, which 2011, published, was October In Council Administrative by the for Tax down (CARF) handed Appeals decision the million. R$470 was notice this under applied fine the amount of adjusted The to relating2002 tofinancial 2006. years the payout, dividend in Brazil apresumed recognized as and by asubsidiary abroad earned income on (CSLL) contribution social and (IRPJ) tax income failedto paycorporate for having supposedly 2007,cember Service), Revenue Internal (Brazilian RFB by the in notice De a tax Ltda. served was e Participações Empreendimentos Normus subsidiary – the – Normus IRPJ/CSLL underway: are currently assessments tax following The - - -

  Fibria | Sustainability Report 2011 45 46

  Fibria | Sustainability Report 2011 prentices, people with special needs and professionals requalified by the National Institute of Social Security (INSS). Security Social of Institute National the by requalified professionals and needs special with people prentices, ap of minor required number legally the with compliance verify to offices regional its at filed law suits administrative professionals Minor with apprentices, people and special needs re-qualified of wood. transportation and felling handling, forest dressing, plantation, for required manpower the hiring on actions corrective claiming Gerais Ousourcing follows: are as main matters The professionals. outsourced and re-qualified or needs special with people and apprentices of minor number required legally the with compliance meal, and for rest in lawgrant and of break established of work of hours status regular Equipment (PPE), Protective of Personal provision and environment work procedures, safety labor and of health adoption and of with, compliance of investigation an at R$1,137,484.67. ofestimated Justice, Department Labor by and the Employment and mainly consists matter The Labor of Ministry the by filed in claims progress, currently administrative to 54 company is aparty –The claims Labor risk. fraud minimize and against business companies aims to protect which (SOX), Act Sarbanes-Oxley the with compliance that verifies auditing to external subject company’sareais also the legal system, intothat is put GR-5 the information legal to regard With auditors. outside by are verified report of the for.provided accounting aspects The be that should amounts the and involved amounts the case, in of each success company, probability the indicating the claims against environmental and all labor civil, on accounting the areaareport quarter, areasends legal the Every sphere. administrative in the a decision are awaiting and contested have they all been legislation, tax of the interpretations of result different are the Since they statements. thecompany’s in financial disclosed always they are and be significant to are considered fines these All for losses. provision no company has made the advisors, legal internal outside and of its opinion the on and,million based R$50 noticethis is under imposed fine of value the adjusted The losses. of said years over six program,following BEFIEX of the validity the during calculated losses, tax for notice having offset served company has been –The –BEFIEX IRPJ Lawsuits regarding Aracruz Celulose losses Aracruz Celulose regarding Lawsuits shareholders on those losses. those on shareholders and auditors Fiscal the of Council, independent members officers, of directors, ultimate responsibility the to determine in progress, presently proceedings, administrative initiated Commission (CVM) Exchange and Brazilian Securities The Aracruz of Celulose. policy financial in the set limits the observing without allegedly in 2008, operations derivative on for losses responsible CFO company, of the former Zagury, Roffé party the as Isac against 11/24/2008, on held Meeting Special General the by made resolution the of view in formulated ClaimAracruz shareholders, 2) the by Celulose filed stage. of evidence search of the completion the awaits and defense its tendered has already Fibria Company’s operations. alleged an derivative failure to disclose on expenses, of and reimbursement compensation claiming non-specified 2, 2008, October 7and April between Aracruz shares of Celulose purchasers by America United of the in States acourt with federal filed 1) Class action namely: in 2008, occurred which Fibria) formed which companies of the Celulose (one : Fibria is a defendant party to three administrative law suits filed in Mato Grosso do Sul, Bahia and Minas do Sul,Minas Bahia and Mato Grosso in filed law suits administrative to three party is adefendant : Fibria – Fibria is a party to two legal claims on derivative losses by Aracruz by Aracruz losses claimsderivative on legal to two is aparty –Fibria : Fibria is a defendant party to to party is adefendant : Fibria - Fibria, the company filed an appeal by way of case stated on stated 07/22/2011. case by way of appeal an company filed the Fibria, by filed appeal by the upheld was thisdecision and of Guaratinguetá, municipality in the of eucalyptus plantation the granted was to suspend injunction apreliminary after Current status: 01/86. No. of Resolution application the removes which hectares, than1,000 is larger farms in Guaratinguetá of its that none fact by the also 16/1993),and Ruling No. (Administrative DEPRN the and former No. 03/2009) Procedure (Regulatory of Environment Ministry the both by fied as paragraph certi pursuant article225, toFederal Constitution, IV the of degradation item 1, environmental significant study, of aEIA potential is no since there topreparation the activities plantation isrightto not it the submit alleges Fibria towater, the assets. damages and environmental other and soil Reserve Forest Legal no with Area, Preservation in aPermanent out carried are being activities that these considering study, besides (EIA) Assessment Impact mental Environ the on depend activities that these understanding the on bybased Fibria, felling and of eucalyptus plantation the claimThe questions Paulo. the São of of State Finance Office Public the and of Guaratinguetá Municipality of the Office Finance Public the S.A., are Fibria defendants Celulose Paulo,whose the São of of State Office Defender’s Public by the (SP) of Guaratinguetá District Judicial at the 02/03/2011 on initiated Claim 0000950-48.2011.8.26.0220, 3) No. minimum required ofsize of bytotal 20% the property. of the abide areadoes Reserve Legal tered thatregis the reaffirmed and bank; river protected covered the allegedly which plantations on actions taken corrective has already it for which reason banks, at river Area Protection of aPermanent of 3.57 hectares recovery the regarding Commitment 109/2007, No. Liability Recovery Environmental with to have complied alleged 148/2010/L; No. Decision Directors’ CETESB and 303/2002 No. Resolution of CONAMA unconstitutionality indicated also it areas; aforesaid the in plantations in its is required action corrective that no understands it of top ahill, at the Area whereupon Protection Permanent a define which regulations, the of MPF interpretation Office Prosecution Federal the against appeal an filed on status: 10/13/2011 sizeof Current property. total the of 20% least not sinceit is at Fibria is insufficient, Reserve Legal Calipso Farm’s that the and banks, of top hills at the river and located Areas Preservation plantedin Permanent has been that eucalyptus alleges petitioner The S.A. Fibria against Celulose Office StateProsecution by the Public Paraitinga (SP) Luiz do of São District Judicial at the Claim2) 07/29/2010 on initiated 0000519-38.2010.8.26.0579 No. Farm), (Calipso justice’s conclusion. reporting the awaiting (STF) Court Supreme Federal the with and (STJ) of Court Justice Higher the any. are if with records damages, case determine The to made is to be Paraitinga, Luiz an inspection do of São Municipality in the of eucalyptus plantations new suspending courts, granted was at lower injunction apreliminary 16/1993). Rulingafter Current No. (Administrative status: DEPRN the and former No. 03/2009) Procedure (Regulatory of Environment Ministry the both by Constitution, certified as 225, paragraph pursuant toarticle Federal IV the degradation of item1, potential significant sinceis no there of EIA, topreparation the activities plantation thatisrightto not it the submit alleging damages, and risks of environmental existence the questions Fibria issued. be report arelated and out carried be study (EIA) Assessment Impact mental that Environ an in consideration companies forest aforesaid by the felling and of eucalyptus plantation the questions eCelulose,claim Paulo. State Papel the The and of Suzano São Paraitinga; Luiz do of São Municipality Fibria); formed against which Paulo the São (a of Votorantimcompany of State e Papel Office Celulose Defender’s Public by the (SP) 1) Claim 0001195-88.2007.8.26.0579, No. Paraitinga Luiz do 11/13/2007 on initiated of São District Judicial at the at 12/31/2011 follows: as was claims these of status The Paulo. the São of of State two municipalities areas of in specific out carried activities forest its with claims in connection legal to three is aparty –Fibria Paulo São of - - - -

  Fibria | Sustainability Report 2011 47 48   Fibria | Sustainability Report 2011 in EBITDA (earnings before interest, taxes, depreciation and amortization). and depreciation taxes, interest, before (earnings in EBITDA million R$50 additional an that provided 69 projects program,conducting Sigma Six to Lean the themselves dedicated 2011, In business. for the results in high-impact failures, and improvements promote and waste 100 professionals is to goal reduce The processes. and industrial administrative of simplification and review for the methodology ment manage aproject on is based model The program. Sigma Six Lean the uses Fibria of projects, implementation the In in 2012. published be will which objectives, to related strategic indicators of validatingmanagement process is in the in 2011 BSC principles the adopted Fibria growth. and potentialfor learning the and and processes lio, internal business portfo capacity, client financial for results: optimum search in the takesintowhich account perspectives four different methodology, (BSC) Scorecard Balanced by the is guided company's management The tools. evaluation performance by supported of results, achievement the prioritizes which concept, by Guidelines Management the adopts Fibria systems Management planningStrategic strategies and Management 1 2 3 - - Fibria’s management indicators are derived from two goals presented in the company’s strategic map. company’s in the strategic presented goals two from are derived Fibria’s indicators management should transmit the information in a clear and reliable way. reliable and in aclear information transmit the should indicators systemic These disclosed. and on agreed targets respective their with are implemented indicators strategic that is in goal 2012The targets. their defining all as the well of as BSC indicators, validatingthe is currently Fibria chosen. methodology the was Scorecard Balanced The away from or approaching that destination. moving is company the if objectives) strategic to linked indicators systemic (by path the along progress the measure will BSC the strategy, the is path the defines What aspirations). and mission (vision, destination the but path, the indicate not does BSC The stakeholders’ aspirations. its and vision mission, goals, strategic its to relation in strategy, company’s the implementing in performance measuring for System (BSC) Scorecard Balanced MANAGEMENT AND STRATEGIES DIMENSION Goals BS Mission/Vision Sustainable Sustainable C C Processes Internal Internal Market People

Value

   

Improve the strategic learning process Improve the strategic initiatives strategic aligned with Plan andtargets establish Communicate goals measures and associate strategic company the to strategy and vision the translate and Clarify

To attract and retain qualified and committed committed and qualified retain and To attract To ensure the growth the To ensure and development of and development of service according to each each to according service of To level guarantee a better the businesses coupled with environmental conservation, social inclusion, and improvement in the quality of life of quality the in improvement and inclusion, social conservation, environmental with coupled innovation, as a way of maintaining the the maintaining of away as innovation, To in guarantee investment continuous market segment To consolidate planted forests as producers of economic value. To generate admired profit, profit, admired To value. generate economic of producers as forests planted To consolidate implementation of the Company’s competitiveness ofcompetitiveness the businesses To develop alliances that lead to to lead that alliances To develop human resources human Develop the renewable forest business as a sustainable source of life of source asustainable as business forest renewable the Develop strategy STRATEGIC OBJECTIVES through and constructive long-lasting To be accepted by our stakeholders our by To accepted be environmentally responsible responsible environmentally products and services products To offer socially and and socially To offer     relationships To develop leaders capable of meeting the needs of of needs the meeting of capable leaders To develop To develop an effective business intelligence business To an develop effective in order to anticipate and opportunities the organization’s level of complexity To ensure operational excellence minimize business risks minimize business of processes To new, offer competitive applications for the the for applications To maximize the returns returns the To maximize of the organization’s forestry base assets

  Fibria | Sustainability Report 2011 49 50   Fibria | Sustainability Report 2011 reputation as a socially and environmentally responsible company. responsible environmentally and asocially as reputation Fibria’s consolidates and strengthens and society with relations its company market, in the the boosts distinguishes business, the of perpetuity the and resources offorest the availability guarantees certification benefits, other Among process. the of ensure and met the continual being areimprovement standards that the to verify bodies, certification by the audited Fibria’s are periodically Units pulp production. in its practices of responsible adoption its and efforts conservation the company’senvironmental endorse which institutions, by independent are certified Fibria’s systems management Certification       to: acommitment with services and products of its quality the and sionals profes safety and health society, environment, the on impacts their and risks business manages and identifies Fibria Policy Management Integrated   certifications: following the awarded has been Fibria Fibria's Certifications (2006). In 2011, all these Units were recertified and the Três Lagoas Industrial Unit initiated its certification process. 2011, certification In its Unit initiated Industrial the and Lagoas (2006). Três recertified were Units all these Paulo Central the and in São Administration Units (2008) Três Forestry and Lagoas (2006), Forestry Vale Paraíba do (2006), Forestry Bonito Capão (2000), Industrial since Jacareí 1993), activities, (all Aracruz the for Valid certification Units, offices, and in Fibria corporate headquarters. Fibria and in corporate offices, Units, Forestry and in Industrial results the that review meetings in monthly is monitored guidelines Compliance these with tion of these Units was renewed and the process of certification of the Três Lagoas Industrial Unit was begun. Unit was Industrial the of Lagoas Três of certification process the and renewed was Units of these tion 2011, In Terminal Port Santos (2004). the and Units, certifica the (2006) Forestry Vale and Paraíba do (2008), Forestry Três Lagoas (2006), Forestry Bonito Capão (2004), Industrial Jacareí since 1996), activities, Valid (all Aracruz for the

Act in an entrepreneurial and innovative manner (to promote continuous improvement of the management model and and model management continuous (toof promote the manner improvement innovative and in entrepreneurial an Act Ensure the solidity and sustainability of the business (through the dominion and control of processes, acting in the pre in the acting control and of processes, dominion the (through business of the sustainability and Ensure solidity the Quality Management System – ISO 9001 –ISO System Management Quality

Ensure the excellence of its practices and outcomes (through the constant qualification and valuation professionals of of professionals and valuation qualification constant the (through outcomes and practices Ensure of its excellence the Deploy the strategic guidelines (in order to meet the needs and expectations of clients, suppliers, professionals, com professionals, suppliers, of clients, expectations and needs the to meet order (in guidelines strategic the Deploy Build lasting relationships (particularly with suppliers and clients involving demand and supply of differentiated prod of differentiated supply and demand involving clients and suppliers with (particularly relationships Build lasting Act ethically and with respect for people (striving to always be open to dialogue and in accordance with applicable applicable in and accordance with to dialogue open be to always (striving for people respect with and ethically Act laws, rules and commitments); and rules laws, the joining of internal and external efforts and the responsible exercise of leadership). exercise responsible the and efforts of internal joining external and the processes, products and services); products processes, vention and reduction of operating risks and environmental and social impacts, with emphasis on health and safety); and health on emphasis with impacts, social and environmental and risks of operating reduction and vention value); perceived skills,with business and services ucts, munities, governments, shareholders andmunities, other shareholders governments, stakeholders); Environmental Management System – ISO 14001 –ISO System Management Environmental

- - - - - information Fibria’s about FSC For go to http://register.pefc.cz/search1.asp. To certificates, Fibria’s Units. see CERFLOR (PEFC) (2009) Forestry Lagoas Três and Santo since 2005) in and Espírito since 2004 Gerais Minas and Bahia (in Aracruz at the management forest the certifies Schemes), Certification of Forest Endorsement for the (Program PEFC by the CERFLOR approved seal, The 7.3.2) item (see program SmartStep in 2011. the joined Unit in out 2011.carried Aracruz the audits by independent confirmed was certification, tion same this obtain to order In and awarded the FSC the awarded and certified have all been Units Forestry Três and (2009) Lagoas Vale(2006) Paraíba do 2005), (since Bonito Capão The trial Units, Fibria Trading International Kft (2006), and Fibria Celulose USA, Inc (2006). Inc Celulose USA, Fibria and Trading Fibria (2006), Units, Kft trial International Indus (2009) and Lagoas Três (2006) Aracruz the to awarded been has Chain of CustodyCERFLOR certification (PEFC) FSC. the Centralby the and (2010) Administration are all certified (2008), Celulose Inc. USA Fibria (2008), Kft International out in carried 2011.audits byindependent was confirmed Brazil, Fibria continuingOutside and certification years, Trading 2011,FSC seek to timetable the of confirmation and out carried actions of all the approval with in place October took program SmartStep Aracruz of recentaudit the toletter. out the most The carried is being RA, of IMAFLO scrutiny the under measures, of these Implementation to rights. workers’ respect with and spheres tional opera and social, environmental, for in alignment the steps 500 around that involves Unit Aracruz for plan the action and upan drew Fibria Principles Criteria the to in gaps relation that identified assessment, own IMAFLORA’s on Based IMAFLORA. by Brazil in represented is which Alliance, Rainforest organization international the by developed was CriteriaSmartStep, and FSC. of the program, called Principles This the with of that Unit processes production the align to Certification) and Management for Forest Agricultural and (Institute IMAFLORA with contract Chain and To management Unit. of forest Custody2011, Aracruz at the its thisend, in January a company signed the     Under its strategy of obtaining certification for all its Units and activities, Fibria is working to obtain the FSC the obtain to working is Fibria activities, and Units all its for certification of obtaining strategy its Under Program SmartStep  ministration (2010) the FSC under are all certified Terminal Port Santos (2010) the Central Units, and Industrial Ad Três(2009) and Lagoas 2006) (since Brazil, Jacareí In the Brazil: in schemes certification forest are two There viable. economically and equitable socially sound, environmentally is management that the forest the to fact to attest seeks certification This of quarter 2011.the in fourth was recertified The terminal Santos(sincePort the Terminal 2006). for Valid certification

Brazilian Forest Certification Program (CERFLOR) that is recognized internationally by the Programme for the the Endorse for Programme the by thatinternationally is recognized (CERFLOR) Program Certification Brazilian Forest Chain of Custody Custody of Chain Stewardship CouncilForest Forest Management 18001 –OHSAS System Management &Safety Health Occupational ment of Forest Certification Schemes (PEFC) Schemes Certification of Forest ment ® seal. All three were also recertified in 2010,andcontinuing certifica fiveyears, recertified of also were three period All a seal. for ® (FSC ® certifications, go to http:// certifications, ® ) ® seal. All these Units were recertified in 2010, five recertified were of period valid Units a for these All seal. info .fsc.org. ® certification in 2013.certification ® seal for for seal ------

  Fibria | Sustainability Report 2011 51 52   Fibria | Sustainability Report 2011 ciples and Criteria and pursuing their future Criteria and certification. their pursuing and ciples producers supplying wood to the company), so that they too can obtain FSC obtain can too that they so to company), the wood supplying producers (independent partners forest by its adopted management is to towardsforest contribute enhancingchallenge the Another thecompany’s of all Units. ISO and Unit certification 18001 Industrial the of Lagoas 14001 Três certification Sustainability are FSC coming foryears the Fibria’sAmong targets challengesForthcoming toFSC the anyin relation gaps to identifying aview with areas, partnership forest of the analysis an completed 2011, In any irregularities. for hotline reporting awhistleblowing up setting and company the wood to illegal purchase not commitment apublic making sources, wood listing training such as followed, requirements, to be procedures and of responsibilities aset company’s partners the on Controversial from placing forest Controlled /Wood Sources, Wood of Program the up set Fibria Verification by suppliers, provided wood uncertified of the to origin trace the order In man, José Luciano Penido. Fibria publishes the results of the Sustainability Goals and Targets, which are revised on an an on Targets, and are revised Goals which Sustainability of the results the publishes Fibria Penido. Luciano man, José of Fibria’s coordination the under chair of staff, are members not who of areas expertise different from professionals and Committee, company representatives comprising aSustainability established We also undertaken. commitments to the in relation company, of areas the different from performance the Commission, to managers monitor comprising and InternalGoals Sustainability an created and Targets set of ToSustainability a defined we in 2009, that end, back Earth. planet of of equilibrium the state delicate aware of the increasingly expectations societal meeting while profits respectable us to earn of source life –enables sustainable and arenewable as forests cultivate –to company’s in the tofuture, out the mission commitment Our spelt of allstakeholders. our values sharing the and making proud employees of their company, enhancing andneighbors, the confidence ofpartners investors, suppliers, in suchloyalty, away, of business customer our management the are we developing by that, directing We understand open. permanently society with for channels communication keeping the and counts investment in training and motivating the company’s professionals, administrative transparency, a rendering of ac continual involves also It ofecosystems. native conservation and restoration the and communities of local well-being and development the of promoting natural use resources, responsible the on is based strategy Fibria’s sustainability Sustainability context Capão do Leão do Capão Aracruz Jacareí 2. The certifiedareaincludesnewlandboughtandleasedfortheformationofforeststhatwillsupply woodtothenewfactorybebuiltin Três Lagoas. 1. Inhectares. Doesnotinclude50%of Veracel. U C Total Três Lagoas (2011) area ertified forest nit 2

1 355,288 355,288 Total area area Total 974,417 974,417 350,201 161,086 107,841 107,841 ® certification of the Aracruz Unit’s forest areas, ISO 9001 and ISO ISO 9001and ISO areas, Unit’s Aracruz forest the of certification (ha)

Area certified Area by the F the by 385,171.95 ® 226,659.24 158,512.71 and CERFLOR certification. SC – – ®

Area certified certified Area by CER 603,259.70 364,885.80 238,373.90 ® F Prin LOR – – - - -

How: atmosphere the from Target: absorption carbon the double effect greenhouse the of mitigation the to contribute Goal: Benefits: per year in year 2025,per through: How: of pulp production the for Target: amount the of required land by one-third reduce resources natural of use the optimize Goal: 2025The Long-Term Targets following: are the Term. Long the with aligned be will which ditionally, Long-Term the including Short-Term Targets of management, conventional the tools not replace do Targets, Ad it. demand market, the society as company or commitments, new include or evolve can and static or exhaustive Long-Term company to the establish are not Targets led for issues 2025. targets of these These intersection The culture. organizational and personnel of management legitimacy; and acceptance social stakeholders; with communication and relationship model; management forest cy; towards 2025: ecoefficien market Fibria’s returnto and guide that shareholder; will key six form and activities themes grouped have been variables of pulp. These sale and production the and of forests management the affect indirectly or that directly 90variables set of a identified and tool, (ERM) Management Risk the in Enterprise identified risks tal environmen and social and in Fibria’sMatrix outlined issues Materiality intopriority took consideration discussions, The (UNISINOS). Vale ofSinos the dos University the from 12 of experts coordination the company with of areas the different from executives 40 involving months overthree of workshops aseries through out carried thinking methodology, systems a on of Long-Termbased aset was troducing Targetstargets company’s that the signal to path 2025.these of definition The 2011,IIn by in to thisissue commitment Committee, reinforced Fibria its Sustainability of the recommendation the upon commitmentLong-term Sustainability strategy www. company website, at: year. fiscal of each end annual at the The basis, 2011 the on or pages 55 on to seen 59 thisof be report, can results         restoration with native species of degraded pasture areas pasture of degraded species native with restoration reserves) native and plantations (eucalyptus areas forest in increase and greaterincreased competitiveness return to shareholders purposes other for land of availability greater lower concentration of land increase in industrial productivity improvement in forest management traditional improvement genetic increasing net capture from 5.5 million tCO 5.5 million from capture net increasing increasing productivity from 10 tonnes of pulp per hectare per year, per 10 from in 2011, hectare of per pulp tonnes productivity increasing to 15 hectare of per pulp tonnes

.com.br. .com.br. fibria

2 eq, in 2011,eq, to 11.1 tCO million 2 eq, in 2025, in eq, through: - - - -

  Fibria | Sustainability Report 2011 53 54   Fibria | Sustainability Report 2011 original features have been altered due to due human activity altered featuresoriginal have been Benefits: How: communities rate of inneighboring approval Target: 80% reach strengthen the interaction business andGoal: between society Benefits: Benefits:     How: Target: by 91% reduce at landfills disposed waste amount the solid of industrial increase ecoefficiency Goal: Note: targetdoesnotconsiderFibria’s supportinrestorationprojectsthirdpartyland,developedpartnershipswithotherorganizations.     How: 2012 between ofland, own hectares 2025 and thousand Target: in40 restoration environmental promote biodiversity protect Goal: bon emissionsfromforestry, tothecustomer. industrialandlogisticsoperationsthroughoutthecycleofproductionpulp,fromnursery Note: netannualcaptureisdefinedbythedifferencebetweentotalplantedandnativeforestsdirectindirectcar Benefit: Note: approvalratemeasuredthroughresearch      

expansion of environmental services – carbon capture and water availability and quality, among others – areas whose whose –areas quality, and others among water availability and capture –carbon services of environmental expansion enabling environment for local development local for environment enabling communities neighboring the with coexistence harmonious company’s in the chain value community of the inclusion projects development for local support communities the with of relationship quality in the improvement of supplies substitution and of waste disposal for the in costs reduction of the company’s processes increase production in ecoefficiency landfills by industrial caused risks and impacts of the reduction soil in the of waste reuse mills by the of waste generation in the reduction the biomes and the in Rainforest Atlantic Cerrado species, of faunaenrichment endangered flora, including and species of native natural regeneration the stimulate species of native plantation elevating the approval rate in neighboring communities from 50%, in 2011, 50%, from communities rate approval in the neighboring elevating in 2025, through: to 80%, decrease from 60 kg 60 from tonneof in pulp 2011 per decrease to 5kg tonneof in pulp 2025 per reducing concentrations atmospheric gases of greenhouseeffect - Benefits: Short-term goals and targets Short-term goals and targets          How: by Fibria supported projects Target: make of generation income community self-sustaining70% the help strengthen the interaction business andGoal: between society          are: goals The commitments. long-term to support and are complementary and Matrix company’s Materiality the on based created also were These goals. term short established Fibria commitments, term long to its addition In not achieved, as described in the table below. table in the described as achieved, not achieved, 2011,were 9 which fully In of goals, 3 and partially the sustainability 11 on based defined were 23 targets

Goal 9 – Consolidate sustainability in Fibria’s 9–Consolidate governance. sustainability Goal society. civil with 8–Strengthen ties Goal Fibria’s areas. forest 7–Certify Goal 6 eco-efficiency. – Increase Goal engagement. and awareness Fibria’s 5–Promote chain development, Goal supply natural areas. forest 4–Restore Goal guidelines. to new them by adapting models development forest 3–Review Goal to climate related process. the change activities 2–Develop Goal reduction of conflicts and maintenance of good relations with neighboring communities neighboring with relations maintenanceand good of of conflicts reduction capital of social construction of the stimulation sectors public and to private the in relation communities of the autonomy members skills of community technical and managerial increased development in its community of the protagonism vulnerability socioeconomic their reducing of communities, inclusion social of other partners attraction of consultants support and training, partnerships through management and of technical promotion (PDRT) Program Rural of the Territory Development expansion Goal 1 – Improve community relations through engagement and measures that promote their economic and social social and economic their that promote measures and engagement through relations community 1–Improve Goal development. Luis Henrique Rodrigues, UNISINOS professor and technical coordinator for Fibria’s coordinatorfor technical and Long-Term professor Targets UNISINOS Rodrigues, Luis Henrique parties." the between convergence the to synthesis, the came end, we the In reasoning. the understand not do they when resistant are more including to minimize to change. natural People resistance is important, methodology This beginning. the from in buildingthisvision are involved who to people meaning thinking gives Systems ees. thecompany’s with employ defined were targets the addition, In targets. sustainability tangible thinking to define planning. has innovated by Fibria using systems to strategic for example, make and of ideas adjustments, vergence to acon reach thinking is possible it systems Through situations. to complex applied has been and of steps a set that involves methodology is a scientific It thinking model. systems built were using the "Fibria’s targets long-term increasing self-sustaining projects from 5% from in 2011 projects self-sustaining increasing to 70% in 2025, through:

- -

  Fibria | Sustainability Report 2011 55 56   Fibria | Sustainability Report 2011 development. and economic social their that promote and measures engagement through communities neighboring with relationship 1 -I Goals mprove the the mprove differentiated sales. differentiated agricultural and certification partnership, cooperative assistance, technical production, in at improvements aimed partners, local with conjunction agricultural in production groups basedon integrated Espírito Santo State) and priority 4from (12 and State Bahia from in 16 communities traditional (PDRT) Program Development Implement the Rural Territory families. 800 benefiting biodiversity with model in production agroforestry project benchmark settlement andDevise implement a communities. remaining the with agenda a face-to-face communities and development of 75 other with dialogue 2011, operational to addition in in expected is communities engagementDirect with 10 on those communities. and industrialoperations forestry company’s the of impact the discuss to levels, different at States Brazilian five in mills communities around Fibria’s a neighboring dialogue with establishing by Plan Relationship 2011 the out Community Carry Government). State Santo Espírito the of leadership the under Plan, Development Coast North and Government, State Bahia the of leadership the under Plan, das(Costa Baleias Development Coasts State Bahia southern and Santo Espírito northern in Plan Development Sustainable the implement and finalize Help 2011 targets Grande do Sul states. Rio 2in and Sul, do Grosso Mato 2in Paulo, São 4in Bahia, 3in Santo, Espírito in which of 2 13 7to from municipalities, Education for Project Partnership the Votorantim Expand

F p. 82. movements, Landless with Relationship Chapter the in more Learn Bahia. Southern in families over thousand a benefiting was implemented in August 2011, F p. 76. model, Relationship Chapter the in more Learn RS). and BA (SP, ES, MS, 87 communities another dialogue operational in The Bahia). 16 and in Santo Espírito 9in Sul, do Grosso Mato 1in State, Paulo São in engagement of 28 communities (2 with the achieved, fully Target state. Santo Espírito the depends on government decisions by still Plan Development Coast North 2012. early for the But – planned Bahia of government the by launched officially and Coast Whale the of Plan Development Sustainable The achieved target: Partially Results communities, p. 53. p. communities, black with Relationship Chapter the in more 712 Learn families. benefiting directly 16and Bahia), in Santo Espírito in (9 25 communities with the Program implemented in Relationship with communities, p. 74. communities, with Relationship Chapter the in more Learn distribution. planned the with not although in 14 municipalities, participation Partially achieved target ully achieved target, achieved target, ully Project The target. achieved ully

, with

specific communities specific with 10 –Relationship communities specific with 10 –Relationship communities with neighboring 6 –Relationship sustainability commitment to / 5 –Strategy communities specific with 10 –Relationship communities with neighboring 6 –Relationship sustainability commitment to / 5 –Strategy Matrix theme Related Materiality specific communities specific with 10 –Relationship specific communities specific with 10 –Relationship communities with neighboring 6 –Relationship supported by Fibria by supported projects generation income of 70% make self-sustaining community the Help communities. in neighboring approval of 80% Reach Fibria by supported projects generation income of 70% make self-sustaining community the Help communities. in neighboring approval of 80% Reach Fibria by supported projects generation income of 70% make self-sustaining community the Help communities. in neighboring approval of 80% Reach target Related long term supported by Fibria by supported projects generation income of 70% make self-sustaining community the Help communities. in neighboring approval of 80% Reach communities in neighboring approval of 80% Reach chain. F engagement of and awareness development, the 5 –Promote resources. enhance natural and 4 –Protect new guidelines. adapting them to models by development the forest 3 –Review change process. climate the to related activities 2 –D Goals ibria’s supply evelop evelop Compact principles and criteria established by the Global sustainability to the according suppliers 50 in audit conduct and questionnaire model for approval Implement a new sustainability Fibria’s properties. in for natural ecosystems services environmental andIdentify assess the Gerais states. Minas and Bahia Santo, Espírito Paulo, São in areas degraded of hectares 4,000 in biodiversity habitats through restoration of of natural Improve the quality forest model. andDevelop implement a family originated from these systems. agricultural products certify Establish and a methodology (Carbon Footprint). ofto destination the ports process, from seedling nurseries across the entire production inventory carbon the Update Chain. Supply (CDP) Project through the Carbon Disclosure the footprint carbon inventory in chain Fibria’s supply Engage 2011 targets Principles and Criteria. regard to the the to regard with partners incentivized Raise of awareness and educate actions. and projects to Fibria’s environment priority applied be to suppliers for fund investment a socioenvironmental develop and implement Assess, diagnostic tests. and criteria, basedon 2010 FSC ® standards standards

FSC

® Ecosystem Services, p. 144. Services, Ecosystem Chapter the in more Learn operations. Fibria’s to related services afew for experimentally, capturing value only were valued services ecosystem The achieved. partially Target p. 137.Biodiversity, Chapter the in more Learn restored. were areas degraded of hectares 2,800 achieved: not Target but has not yetimplemented. been developed, was model forest family The achieved. partially Target 135. p. Agroforestry, Chapter the in more Learn ofmethodology IMAFLORA. agricultural certification product an of creation the in collaborated F governance, p. 159. Climate Chapter the in more Learn updated its carbon inventory. F p. 102. in Suppliers, Chapter the in more Learn emissions. GHG reduce to measures adopt to committed and aworkshop in participated suppliers Critical achieved. fully Target Results Suppliers, p. 102. Suppliers, Chapter the in more Learn Unit. Jacareí the supply that companies 15 in 2011 trialled being is and suppliers was in approved September for questionnaire sustainability new The achieved. partially Target transferred to 2012. to transferred and achieved not Target process has not yet started. yet not has process The groups wereawareness identified. test was made and critical certification A diagnostic achieved. not Target ully achieved target. Fibria target. achieved ully Fibria target. achieved ully on biodiversity plantations eucalyptus of 1 –Impact on biodiversity plantations eucalyptus of 1 –Impact communities specific with 10 –Relationship communities with neighboring 6 –Relationship communities specific with 10 –Relationship communities with neighboring 6 –Relationship and waste effluents 9 –Emissions, and waste effluents 9 –Emissions, Matrix theme Related Materiality sustainability commitment to / 5 –Strategy specific communities specific with 10 –Relationship communities with neighboring 6 –Relationship voluntary commitments voluntary and 2 –Certification 2012 2025 and between land, own of hectares thousand restoration in 40 environmental Promote 2012 2025 and between land, own of hectares thousand restoration in 40 environmental Promote Fibria by supported projects generation income of 70% make self-sustaining community the Help Fibria by supported projects generation income of 70% make self-sustaining community the Help atmosphere from absorption the Double the carbon atmosphere from absorption the Double the carbon target Related long term – supported by Fibria by supported projects generation income of 70% make self-sustaining community the Help –

  Fibria | Sustainability Report 2011 57 58   Fibria | Sustainability Report 2011 Goals F F 7 –Certify eco-efficiency. 6 –I orest areas. ncrease ncrease ibria’s ibria’s

service providers. service and producers forest small of for for Brazil a national standard WWF the with conjunction in Develop 2011 targets of destination. seedling nursery to the ports the from pulp, of (LCA) Cycle Analysis aLife Prepare 30%. by landfills Units’ those in disposal forests thus reducing waste amendments in the company’s soil as applied be can they so Units, Três and Lagoas Jacareí at lime grits, (dregs, mud and ash) Implement solid waste facilities wood pulp. theIdentify water footprint for Plan at the Aracruz Unit. Aracruz the at Plan Action Program the SmartStep 2011 for in planned contained Implement 100% of the actions FSC ® certification of groups certification

and and WWF achieved. partially Target Results quarter of 2012. of quarter first the in finalized be will study This finalized. been not has analysis this but America, North and Asia Europe, in ports the to up process production the in impacts environmental all the LCA study, demonstrating began Fibria Eco, Espaço Fundação NGO the and (USP) Paulo São of University the with a partnership In achieved. partially Target p. 134. Management, Soil Chapter the in more Learn Unit. each in year per waste of tonnes thousand 30 processing of expectation the with Três and Lagoas, Jacareí in 2012of semester first the in start will operation The amendments. acidity soil in waste inorganic transform to implemented. Fibria hired Proactiva been yet not have but licenses, environmental havefacilities received The achieved. partially Target p. 61. commitments, Main Chapter the in more Learn project. this implement to Brazil in company forestry first the was and footprint, that measure voluntarily their water companies of composed a group Network, Footprint Water the of part is Fibria clients. to delivery to nurseries the from cycle, production entire its in water of usage the measuring chain; waterits footprint throughout value its evaluate to aProject developed Fibria 2011 In achieved. partially Target Chapter Certifications, p. 50. p. Certifications, Chapter the in more Learn plan. the following is company the showed which Plan a monitoring process of the Action conducted IMAFLORA October in and planned wereactions implemented, the All achieved. fully Target process. the of start the formalizing await approval of the new new the of approval await to need the to related is delay The was sent to to sent was thisdocument that process kickstarts Principles and Criteria. The official validation with with validation hearing sessions, fieldtrials and are finalizingthe timeline for public and adocument of development the FSC ® Brazil hired a service for for aservice hired Brazil FSC FSC ® in November ® International. International. FSC ® Matrix theme Related Materiality effluents and waste effluents 9 –Emissions, use 4 –Water voluntary commitments voluntary and 2 –Certification voluntary commitments voluntary and 2 –Certification target Related long term – at landfills amount of solid waste 91% by the Reduce – – –     Targets promote their social and economic development. that measures and engagement through communities neighboring with relationship the 1–Improve Goal for 2012. have we 22 targets targets, sustainability and goals Considering same the 2012 Targets

governance. in F sustainability 9 – Consolidate civil society. with relationship the 8 –Strengthen Goals Expand in 30% (from 22 to 29) the number of rural communities involved in the Rural Territory Development Program Program Rural in the Territory involved Development of rural communities number the 22 to (from 29) in 30% Expand Implement the Sustainable Settlements Project with Agroforestry and Biodiversity in the extreme south of south Bahia, in ben the extreme and Biodiversity Agroforestry with Project the Sustainable Settlements Implement efiting approximately 1,000 families distributed in five farms with aofwith fivetotal in farms distributed families fromapproximately target of efiting (continuation 2011).1,000 11,000 (PDRT) (continuity from 2011). from (continuity (PDRT) term targets). term Reach 55% favorability in communities neighboring Fibria’s operations (related to the long term targets). term tolong the Fibria’s (related 55%Reach neighboring operations in communities favorability Ensure that 70% of the local development projects supported by Fibria are self-sustaining (related to the long to long the (related are self-sustaining by Fibria supported projects development Ensure thatlocal 70% of the ibria’s Fibria’s stakeholders. with panel adiscussion Conduct other areas of Fibria. as well as levels, company all at actions sustainability promote to and disseminate concepts outsourced personnel, in order andemployees permanent Program with Fibria’s "Educating for Sustainability" andDevelop implement the Global Compact. the and (WBCSD) Development Business Council for Sustainable World the of Group Working Industry Products Forest Sustainable the Dialogue, Forest Brazilian the (TFD), Dialogue Forests The in particularly management and sustainability, forums for best practice in forest international and in national participate to actively Continue (NGPP). Project Plantations Generation New WWF’s in practices management groupsstudy of best forest in to participate Continue 2011 targets with communities, p. 74. communities, with Relationship Chapter the in more Learn members. of community participation 2011 August in the with happened event Dialogues Constructive The achieved. fully Target 2012. in begin will and Board Executive the by and approved developed Program The achieved. partially Target p. 101.forums, and NGOs with Dialogue Chapter organizations. more in Learn the these in functions executive to Fibria representatives nominated with achieved, fully Target p. 101.forums, and NGOs with Dialogue Chapter the 2012. in March in more group Learn the of aconference host will Fibria 2011”. Report Carbon and Bioenergy “NGP apaper of publication the and visits site with continued Project NGP The achieved. fully Target Results sustainability commitment with and 5 –Strategy sustainability commitment with and 5 –Strategy sustainability commitment with and 5 –Strategy sustainability commitment with and 5 –Strategy Matrix theme Related Materiality – – – target Related long term -

  Fibria | Sustainability Report 2011 59 60   Fibria | Sustainability Report 2011 Targets areas. forest Fibria’s 7–Certify Goal Targets resources. natural enhance and 4–Protect Goal         Targets process. change climate the to related activities 2–Develop Goal      Targets eco-efficiency. 6–Increase Goal Targets chain. supply Fibria’s of engagement and awareness development, the 5–Promote Goal Targets guidelines. new to them by adapting models development Forest the 3–Review Goal

Develop a pilot-project for the application of valuation of ecosystem services to the company's management practices. tocompany's the management services of ofecosystem valuation application for the apilot-project Develop Develop a Life Cycle Assessment from the plant nursery to the ports of destination (target not achieved in 2011). achieved not (target of destination to ports the plant nursery the from Cycle aLife Develop Assessment in achieved not 2011). (target Units Forest and Industrial pulp the in for Finalize water identification footprint the concepts. Create including sustainability launch and aCode for of suppliers, Conduct . areas in Fibria’s conservation products forest of non-wood exploitation for the study acase Develop Chain Supply 71% from (CDP) Project to 90%. Disclosure Carbon in the rate the of respondents Increase Start the process of environmental restoration in 2 thousand hectares of conservation areas in the company's in areas the proper of conservation hectares in 2thousand restoration of environmental process the Start Develop and implement a family forest model, aimed at the inclusion of small landowners in the supply of wood for for of wood supply in the of small inclusion landowners at the aimed model, afamily forest implement and Develop Assess, develop and implement a socioenvironmental investment fund for suppliers to be applied to Fibria’s priority to Fibria’s applied to be priority fund for suppliers investment a socioenvironmental implement and develop Assess, Reduce in 6.5% the generation of solid waste, from the Industrial Units to industrial landfills, with the start of the the of start the with landfills, to industrial Units Industrial waste, from the of solid in 6.5%Reduce generation the Determine and consolidate quarterly results of the carbon footprint, supporting the operational management with with management operational the supporting footprint, carbon of the results quarterly consolidate and Determine Begin implementation of the Forest Management Plan of the Private Natural Heritage Reserves (RPPN) Restinga Restinga (RPPN) Reserves NaturalHeritage Private of the Plan Management Forest of the implementation Begin Ensure FSC Ensure ties (related to the long-term goals). tolong-term the (related ties socioenvironmental projects and actions (target not achieved in 2011). achieved not (target actions and projects socioenvironmental operations of treatment units in the Jacareí and Três Lagoas mills (target not achieved in 2011). achieved not Trêsmills and (target Jacareí in the units Lagoas of treatment operations Fibria’s forest operations in São Paulo, Mato Grosso do Sul, Espírito Santo and Bahia (target not achieved in 2011). achieved not Sul,(target Bahia Santo and do Espírito Paulo, inMato Grosso São Fibria’s operations forest of Aracruz. of immediate actions, as well as internal and external disclosure. internal as external well and as actions, immediate Aracruz Unit. Aracruz ® certification of Fibria’s forest management areas in Espírito Santo, Bahia,Espírito Gerais and the Fibria’sof Minasof areas in management forest certification - Targets Goal 9 – Consolidate sustainability in Fibria’s governance.      Targets society. civil with relationship the 8–Strengthen Goal Main commitments undertaken (GRI 4.12 and 4.13) their climate governance. Learn more about Investor CDP at https://www. Investor about climate more their governance. Learn about information provide to voluntarily companies listed than 6,000 more year invites every and investors stitutional 551 together brings climate organization change. with The in associated opportunities and risks the understanding in interested investors guide and information that aims to CDP provide organization isinternational an The in 2009. CDP Investors www. at: seen be can Compact (p.Global the about Index ContentMore information thisReport's in 175). are identified Compact, Global of the in 2011,Fibria’s fighting and environment corruption. foractivities the respect principles the ten with are which aligned relations, labor equitable of human values rights, basic of the community,reinforce, adoption the business the within Global Compact www. Chain CDP the Supply about at https:// more Learn business. pulp its within main suppliers by its practiced portunities op and actions of risk, intends assessment Fibria to the embrace climate practices, governance its disseminating sides rate 71%, was to climate in relation response to 2010. change. compared of The 29% improvement an practices Be management to best the themselves committing thereby emissions, gas greenhouse of restricting strategy its with 2011, In Suppliers]. [see: to themselves align company91 invited the main suppliers Project of Disclosure its Carbon the Supply join Chain the to of program world the in company sector forestry first the was –Fibria Chain Supply CDP CDP-Investors.aspx.

Continue to actively participate in national and international forums for best practice in forest management and sus and management in forest practice forums international for and inbest national participate Continue to actively Continue to participate in study groups of Best Forest management practices in WWF’s New Generation Plantations Plantations Generation New in WWF’s practices management Forest of Best groups inContinue study to participate Conduct public consultations and disseminate strategic plans for conservation of biodiversity and water resources and and water resources and of biodiversity plansfor conservation strategic disseminate and consultations public Conduct of Fibria (target not achieved in 2011). achieved not (target of Fibria areas other as well as at all company levels, actions sustainability promote and concepts to disseminate nel, in order pact (continuity from 2011). from (continuity pact Com Global the and (WBCSD) Council Development World Business of Working the Group for Sustainable Industry Products Forest Sustainable the Dialogue, Brazilian the Forest (TFD), Dialogue Forests in The tainability, particularly (continuity from 2011). from (continuity to plan for environmental education using the internet. using the education to for plan environmental (NGP) (continuity from 2011). from (continuity (NGP) Develop and implement the “Educating for Sustainability” Program with Fibria’s employees and outsourced person outsourced Fibria’s and with Program employees “Educating the for Sustainability” implement and Develop Conduct the second discussion panel with Fibria’s stakeholders (Constructive Dialogues), in a regionalized manner manner in aregionalized Dialogues), (Constructive Fibria’s with panel stakeholders discussion second the Conduct cdproject – Fibria has participated, in the Investor program of the Carbon Disclosure Project since its inception inception since its Project Disclosure Carbon of the program Investor in the has participated, –Fibria .net/en-US/Programmes/Pages/CDP-Supply-Chain.aspx. – In 2011, Fibria reaffirmed its commitment to the Global Compact, a UN initiative that seeks to to 2011, –In seeks that UN initiative a Global the Compact, to commitment its reaffirmed Fibria unglobalcompact .org . .org cdproject .net/en-US/Programmes/Pages/ ------

  Fibria | Sustainability Report 2011 61 62   Fibria | Sustainability Report 2011 Learn more about the WFN at www. WFN the about more Learn customer.the to finalproduct of the todelivery the plant nursery the from cycle, entire the production throughout chain, value water use measuring water of footprint its the to assess aproject to develop sector Brazilianthe forestry of water. use rational and management strategic the 2011, through In development in first the company became the in 2010, March to sustainable WFN commitment the its joined Fibria demonstrating process. production rectly, in their "water their footprint", assess that voluntarily indi or companies of waterdirectly consumed, volume is the which Network Water Footprint Other commitments can be seen on the website: www. website: the on seen be can commitments Other www. at Footprint Carbon the about more Protocol.Learn GHG and 14064 ISO methodologies international the with is aligned inventory the ensures that certification Footprint Carbon Group). NORD TÜV the of (part BRTÜV by inventory,emissions certified 2011,gas August In greenhouse its Climate Governance]. endorse audit the to on [see: final the report received Fibria tonneof pulp, in 2010 per which (GHGs) gases 0.35 was tCO2/tonne of pulp, of greenhouse by 25% emission the to reduce helped Unit Guaíba of the sale The tonne of produced. pulp 1.8 for every company absorbs of carbon tonnes that the 11 shows therefore Fibria’s balance generation. forcarbon power of burning biomass the from tonnes million plus another process, 1.6 production pulp approximately in the of emitted carbon tonnes million Units Sul) do Grosso Três (Mato and Santo) Lagoas (Espírito Aracruz Paulo), (São Jacareí of the operations logistics and industrial forestry, that the estimated study same The of 2010, forests. native plantedand in its of atotal 20 of carbon tonnes million Carbon Footprint was published. Learn more about the NGP at www. NGP the about more Learn published. was carbon, and 2011, of bioenergy toissues the in relation companies participating of the practices of the acompilation 2011, In plantations. forest new its through Report Carbon creation and job and Bioenergy growth NGP document the economic of stakeholders, participation the effective pledgingto of promote the ecosystems, project, the conservation to up the signed Fibria human needs. meeting and biodiversity to conserving aview in silviculture, with techniques and concepts management forest best evaluating the introducing and agencies government and companies involves New Generation Plantations (NGP) The main goal of this process was to strengthen the organizational culture guidelines. organizational the to was strengthen of thisprocess main goal The concepts. of the discussion and presentation for the to workshops in addition communication, internal other and posters year, of the banners, quarter last the during using videos, to all employees campaign nication 2011, in ofSeptember Fibria managers to general the by acommu Presented supported was of values embedding the linked of all companies toVotorantimlevels the Group. from various professionals and directors presidents, involving process through a collective defined were values These company. the throughout Dialogue) Talent,ership, Growing Open and Pragmatism,Alliance Meritocracy, Excellence, of Own Values Fibria the (Sense 2011 to embed acampaign after identity corporate of the marked consolidation the assets Intangible carbonfootprint – The Fibria Carbon Footprint 2011 Footprint Carbon Fibria –The course overthe company captured, that the revealed report – The Water Footprint Network (WFN) is an international foundation that brings together together that brings foundation isinternational an (WFN) Network Water –The Footprint .com. waterfootprint – This project, created in 2007 by the World Wide Fund for Nature (WWF), Fund for (WWF), Nature in created 2007 World Wide by the project, –This .org. newgenerationplantations .com.br. fibria .com. - - - in March (column 2010/1) 2010in (column March December and (2010/2): column in 2011,the below are presented of this research results Some conducted of research to results the compared of 95%. interval confidence a with points, of has2.4 amargin of error research percentage The region). Sul (Três do Lagoas Mato Grosso and Vale the and Paraíba) Bonito do Paulo(Capão São South), Santo, extreme in Espírito (the Bahia company operates the thissurvey, In 1,718 population. local of the where areas tion the of 16) consulted age were across the (above people percep the 2011, to understand in order image December In institutional of its survey third assessment its held Fibria assessment Image printed media was 8.6 compared to 7.2 compared 8.6 was printed media in 2010 scale). aten-point (on in exposure qualitative and annual average quantitative that counter other)The negative. each 6% as and aspects negative and positive (with negative or positive neutral,neither asas 4% classified could be news of 23% the while 67% company represented total, the of concerning the favorable aspects that reported News positive. were reports Print media Exposure Media   In terms of overall image, the percentages of “excellent” of overall terms image,percentages In Sul the do “good” and Mato Grosso Pauloand in São improved 2011: research conducted in December 2011. December in 2011: conducted research 2010. December in conducted research 2010/2: 2010. March in conducted 2010/1: research 2011: research conducted in December 2011. December in 2011: conducted research 2010. December in conducted research 2010/2: 2010. March in conducted 2010/1: research good or Excellent Options H Fibria Options W and decreased in Espírito Santo and Bahia. Santo and in Espírito decreased and lyptus plantinglyptus company. In all states surveyed, there is a tendency to increase the level of knowledge about Fibria as a pulp production / euca production a pulp as Fibria about of knowledge level the to increase is a tendency there surveyed, all states In you do ow evaluate F eucalyptus your in /produces company pulp state the of thathat plants name respondents is (% of the – Fibria was quoted in 6,134 quoted was – Fibria in 2011; articles and Brazilian foreign newspaper and articles of those most 62.4 8.8 2010/1 2010/1 10.3 67.4 company the of image to respondents respect the (% of with ibria BA BA 2010/2 2010/2 62.3 19.5 2011 2011 67.8 13.7 2010/1 2010/1 73.4 19.9 ES ES 2010/2 2010/2 29.7 68.1 2011 2011 79.5 15.0 2010/1 2010/1 81.7 37.1 MS MS 2010/2 2010/2 64.4 85.5 2011 2011 81.3 2.5 2010/1 2010/1 73.7 21.9 SP SP 2010/2 2010/2 78.5 35.3

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  Fibria | Sustainability Report 2011 63 64   Fibria | Sustainability Report 2011 performance” (22.7%). “Financial market” (29.5%) topics: references relate of the to economic “Economic and operational and 50% Over 89.1% mentions the Of neutral. 8.3% and Twitter, on were 7.1% 1.2% and 2.6% blogs Facebook, on on YouTube. on Social media plantations. eucalyptus into animal and breeding crops of integration food the for promoting mentioned was it year Guide. This Sustainability Magazine Exame company in in year the arow, second amodel as the quoted was Fibria For media. national in the – 413 1,898 were there articles print media, the In 1,078 publications. in national appeared of which appeared articles evaluated, 4,194 articles 3,166 the Internet, the Among via published were and vehicles online in regional appeared the e-mail address: [email protected], or posted in the comment fields of the blog. the of fields thecomment in posted or [email protected], address: e-mail the to sent be can which subject, the on sharing views of – and is the information to all audiences of this – channel open purpose The issues. of forestry discussion and dissemination the aim of the fostering with com.br, only), in Portuguese 2011 September –In Blog (www. Value blog Forest of the the launched Forest Fibria the Value of at www. more Learn highlighted in thisReport. is also theme The media. social and publications campaigns, advertising in events, issues forest company addressed 2011 Throughout materials. communication in its seal campaign to the display UN by the the authorized company was Fibria’s –the underpinning principle –afoundational philosophy conservation of forest importance of the awareness to raising society’s aview With (UN). Nations United by Yearcreated the International for the campaign of Forests, 2010 December late and 2011 –Between Year Forests of in a International participated Fibria the for Support Advertising in 2011.5,266 times 32.3% with views. of the seen most the was video company’s institutional The Fibria’s on available YouTube vídeos The YouTube no Fibria page (www. 9.37% Period: 1/1/2011a31/12/2011 T op 10op issues 22.67% 7.72% – In 2011 –In 27.7% positive, were of these 64% media. 3,459 in social times mentioned was Fibria negative 5.44% 5.17% 4.57% 4.05% .com.br. fibria 4.02% 2.14% 29.52% 5.35%           

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. valordafloresta 3,459 1,021 784 188 158 139 324 155 74 ation the benefits to be derived and the technical and economic viability of each proposal. each of viability economic and the technical and derived be to benefits the ation into taking consider aremanagement, evaluated by the suggestions ateam. as The or individually either ideas, their any from company forward may areaof the put Professionals entrepreneurial. and stimulating more ing environment work the making and culture the of innovation, creating value forbusiness the to strengthen “i9”The seeks Program R$879,949. annual gains totaled The losses. dryer, the productivity as well within as by shifting caused breaks avoiding while process the for restarting suitable that was obtained was section cross sheet apulp settings, new the adopting time. By restart dryer to the reducing aview with valves, of the of one opening and outlet pump the of point set changing the suggested Três Unit, at the Area Lagoas Drying in the operator Silva,an Santos dos Josimar annual an gain of R$297,914.67.generated Edson’s has idea losses. prevent pulpand productivity the align time, prevent flaws, restart dryer the reduce would that of creating a device idea had the Area, Vander Edson Drying in Deambrozi,the Unit, At an operator Aracruz the to 54m³. increase the from to in 52m³ volume increase the from R$4,383,208.38 and nual gains of R$2,983,304.64 an trip, representing per to 54m³ 50m³ from increased transported chip volume wood average the aresult, safely. As and quickly adjusted to be cargo the enabling thereby aplatform, upon set be control weight structure existing the that suggested Luciano chips. wood of transportation financialthe gains in an from improvement important yielded Venancio Aparecido Luciano technician by logistics forward put idea the for example, Unit, Forestry At Jacareí the R$50.97. to approximately returnamounted the R$1 invested every For to R$455,000. R$150. reward of afixed earn terms, in out paid 2011 rewards The total in monetary measured be cannot amounted 5% 7.5% and which between originators the company earn proposals, the return. Qualitative calculated net of the lead to thatfinancialgains for proposals Quantifiable prizes. awarded were 283 and individuals viable to be sidered 199 these, Of con were process. work in of the kind improvement some making or procedures operating plifying 2011,During sim revenue, increasing raising productivity, forcosts, reducing made were suggestions of atotal 543 program. in the may participate posts executive “i9” the in 2010. under company’s at allapproved of the introduced was Units program,which non- holding those All are proposals whose financial those rewards to offering ideas, innovative to develop employees its encourages Fibria “i9 (Innovate*)” Program –stimulus to and recognition for innovation Innovation that comprise the elements them. theand interaction between underscore forests the with relationship the to sought strengthen initiative the versions, regional several and nationwide one With in 2011 isit present, where regions in the Life."opment More "More Forest, campaign the company embraced the devel company'sfor sustainable the and initiatives business forestry of the toimportance the audiences external and of internal awareness that raise activities to communication promote –Seeking Campaign Life" More Forest, "More ------

  Fibria | Sustainability Report 2011 65 66   Fibria | Sustainability Report 2011 (NPK) in the plantations along with increased use of an automated fertilizer management system. management of fertilizer automated an use increased with along plantations in the (NPK) potassium and phosphorus of nitrogen, formulations in the areduction with of fertilizers application of the safety and costs gainslogistics, in the company showed The fertilizers. of controlled-release studies and fertilization ommending for rec tools with along water losses and soil and compacting to quantify year. developed were past the models New over expanded also were residues forest involving soil materialin of the all organic level critical the Studies to determe crops. found in eucalyptus agents sp of Ralstonia diagnosis molecular the was advance important Another updated. were weeds and diseases pests, of management for recommendations the technical and identified were herbicides New to main diseases. clones of eucalyptus resistance genetic evaluated the researchers front, our work another tralia. On Aus from imported could be of which one of thispest, of potentialnatural enemies effectiveness Center the analyzes Technology The pests. main eucalyptus of the one become has already which into introduced country recently the insect an Bronze control of beetle, the tobiological the gave priority activities research Protection, Forest Regarding Santo, ofGerais. Espírito Minas and Bahia of Fibria’s states in areas the that is representative forest a model-landscape in interactions ecological and impacts environmental the in detail, water cycle the to study seeks Project The tations. plan for and eucalyptus of for land pasturing use the between studies comparative to conduct possible it making shed, water micro experimental of a second year, construction the through previous the expanded was reactivated been 2011. during Units of all of its had which methodologies Project, Watershed study Micro Unit’s resources Aracruz The water and monitoring its merged Fibria areas, plantation in its water conditions the To analyze to comparatively able be regions. dry adapted to more that are clones of identification the in advances significant were there Furthermore, jections. pro improvement genetic to classic compared wood of the quality and sector, gainsproductivity in anticipates the Fibria forestry in the used previously never method, selection this new With markers). molecular (or traces DNA through clones eucalyptus of superior identification early the permits which Selection, Genomic Wide as known tool, biotechnological new of a creation the through year the during strengthened also was 67) page on box (see improvements intoResearch genetic in 1hectare. of produced pulp volume by the measured (Imacel), in Pulp AverageIncrease Annual the fortial boosting poten good demonstrated clones new These diseases. maineucalyptus the to and resistance safety, quality, efficiency performance, of combination best the for in 2012.selected tations five with years, overthree tested were clones 30 plan company in by all the of its introduced be will which of eucalyptus, growing for the glossary) materials (see netic ge to new led projects important most of the One Products. and of Processes Development the and Biotechnology Management, and 2011,In Improvements in Forestry of projects innovative aseries Technology our Center developed Technological innovation * i9ispronounced/inove/inPortuguese, thesameasimperative meaning “innovate”     “i9” the aims underlying are four Program: strategic There

to increase revenue. to increase and customer; for value to the generate ofequipment; the and the efficiency to increase productivity costs; and variable to fixed reduce , one of the main pathological main of pathological the , one ------ships between the company and its customers, suppliers and research institutes in Brazil abroad. and institutes research and suppliers customers, its company and the between ships partner of raw energy, use materials and has strengthened better and more on has focused area, which Development Product The glossary). (see process that circulates kraft in the biomass the also but of in natura biomass only not forest make are quiteand promising use partners, strategic with conducts in thissector,Fibria which projects The ducted. con also was technologies, using different biomass, through bioproducts and of biofuels generation of the study The chemicals. of consumption reduced in resulting technologies, bleaching new of understanding in the advances were There yields. greater product seeking controls, cooking including advanced of production, pulp stages different for the established were Models processes. bleaching and cooking the about edge knowl to and deepen liquor of cooking to production optimizing the contributed projects area, some industrial the In there. bird community the recompose to Unit help intoreintroduced Aracruz areaof an the ( antbird Fire-eye White-shouldered Two the fragments. species, plantation between vegetation native and corridors eucalyptus of the functionality the of birdlifeusing bio-indicator as a were conducted Moreover,experiments field established. was Unit forAracruz the Plan” Monitoring “Biodiversity a new and were standardized of data storage and forcollection the Methodologies in Bank 2011 Data Units. of fauna its in flora and studies the aBiodiversity created Fibria to systematise designed in accordance with Brazilian linkin accordance law.the www. with visit information more For (CTNBio) National the Biosafety by on approved and Technical Commission reviewed in thisareais first research All biosafety. of on issues focus special with results, in confirming laboratory step isimportant an experiment of type This certification. or undergoing that areas are certified outside located 5 hectares, of approximately greenhouse, and 2011 in laboratory eucalyptus trials field modified beginningfirst the of marked the genetically made been have advances significant in which tion, transforma are genetic highlights bythe Fibria, developed in biotechnology of research main lines the Among of eucalyptus. pulp ment develop the in frontier new a which represents Fibria, by modified genetically trees eucalyptus with experiment planting of afield the in notably research, 2011 techniques, biotechnological through obtained were results new thisline of Within processes. industrial and to forestry adapted more of trees generation of a new characteristics desired of the selection in the for greater precision has allowed up. This opened have been opportunities logical new techno development, of forestry field in the biotechnology in applied advances with decade, past the In andquality. uniformity productivity, and gainscontinuous wood in to have significant led forests clonal the aresult, As thismethod. through scale alarge on propagated and selected were program improvement the thatfrom result trees many superior view), of point genetic the from plants of identical multiplication the that permits technique (a of cloning adoption the of pulp. With production industrial the and management for forest that are desired characteristics that present hybrids their and of species selection and crossing –the technique improvement conventional genetic ing the us developed trees, eucalyptus resistant and productive ofFibria’s up highly are made plantations commercial improvementsForestry and biotechnology Pyriglena leucoptera Pyriglena ) and Plain-winged Woodcreeper ( Woodcreeper Plain-winged ) and in recent years. After more than a decade of research with with of research thanadecade more After in recentyears. ctnbio .gov.br Portuguese). (in Dendrocincla turdina Dendrocincla ) were were ) ------

  Fibria | Sustainability Report 2011 67 68   Fibria | Sustainability Report 2011 low levels of emission, compatible with the most stringent criteria. stringent most the with compatible of emission, levels low ensure which minimumservices, with non-compliance for penalties maintenanceand equipment, validation of fleet, of age such maximum as in light of requirements process management a suppliers’ chain. uses Fibria pulp distribution the from impact main environmental is the engines by internal combustion of gases emission The by Fibria. monitored constantly points chain are management distribution pulp at the work who of people health and security the Also, chain. distribution pulp the throughout of jobs creation is the logistics pulp of the impacts main social of the One customer. plant toend the from the exports, of these care for taking areais responsible Logistics Fibria’s International Asian customers. (China)serves team Hong Kong the and office, (Switzerland) Nyon by the served while is Europe office, (USA) Miami by the U.S. market The is served plants. customers’ at the or centers distribution the at is delivered until product the means various through it carrying then storing load, the isof in receiving charge Fibria of destination, of to pulp country the arrival until Upon shipping. ports at domestic is stored Plants the leaving pulp The world. in the operators logistics shipping largest Ocean, the of one Pan STX South Korean company with signed was fleet a dedicated with contract transportation new 2012, The in September platforms. as operating Portocel and of Santos to start Port using the areships expected thecompany. by first solely The used be will fleet new the needs, Fibria’s to meet specific Projected competitiveness. company’s the increase and to customers service better ofeven an pulp, allow will which cializing transportation in the of spe 20 ships future,afleet on the rely In will Fibria companies. isof in shipping charge Currently, transportation sea America. 10.04% to Latin of Fibria’s41.44% was sales pulp distribution to Europe,geographic 25.17% 23.35% and to America, Asia to North 2011, In States of Europeto United and America. the to Asia, by sea then and terminal of Portocel, shipping the to the by trucks 4.5 kilometers is carried Unit (ES) Aracruz the from pulp The to Asia. Europe and shipped then and (SP) of Santos by trains toPort the is carried Unit (SP) Jacareí and Unit Três(MS) of the Lagoas production The reaching1.3 orders each. tonnes with million Asia, and market Europe, is still accounting of 2.1 purchase for the America by North –followed year of last pulp tonnes million 5.1 the Of in by 2011, Fibria of pulp produced tonnes million main Our 4.7 92% exported. was (or million of total) logistics Pulp sales Pulp and/or separation by the client, is formally registered in the Complaints System applicable to each Unit. According toUnit. to each applicable Complaints in System the registered is formally client, by the separation and/or segregation that causes or etc.), packaging, logistics, (technical, customer the with established those with consistent not is specification whose damage, or product to due use, customer complications that pulp causes with problem Any of marketing exception promotion. and the with stages, life evaluated in cycle various having been client, of the safety and to hazard health no poses and handling storage and normal under product is a stable Pulp PR1) (GRI procedures such to subject are categories services and products significant of percentage and ment, improve for assessed are services and products of impacts safety and health which in stages cycle Life Product - - marketing activity in 2011.marketing activity in Code 2011. launched of Code Conduct, its and vertising or advertising arising from of fines records are no There Ad Brazilian the Self-Regulation follows Fibria marketing activities, institutional and communication its out To carry including PR6) advertising, promotion and sponsorship (GRI Programs for adherence to laws, and standards, voluntary codes related to marketing communications, years. two every conducted be will survey A satisfaction of plan 2012 for quarter 2012.action first an the during available be developing will the willin company aid and results company. of 2011, survey,external The run quarter an by second the satisfaction In customer first its conducted Fibria is immediate. time response and is constant customers from feedback Thus, customers. to these development product and delivery of sales, tracking daily perform Account The Managers process. of the toend the beginning the from customer the serve therefore Account Managers of sales. account80% for about 20 customers about of hasconcentration ahigh sales: Fibria (GRI PR5) Practices related to customer satisfaction, including results of surveys measuring customer satisfaction all thisinformation. that stores barcode the as well as unit number), (year,date, baling and line,data tracking lot the number and production certification) and of product type the unit, production (the description product the that indicate characters three with logo Fibria the carries produced pulp All PR3) (GRI requirements information such to subject services and products significant of percentage and by procedures, required information service and Type product of though in concentrationstion), lower than limits. the exposure and inhala(eyes causing harm to health human factor sole the as pulp stored on dust the identifies latter the MSDS), – Sheet Data Safety (Material safety of product for handlingassessment an and pulp hasinternal an Fibria policy (FDA). Administration Drug and US Food by the established norms with accordance in ISEGA, institute German the by certified as products, food of various packaging as for use standards international is in with compliance Três and Jacareí Lagoas) (Aracruz, in Fibria’s Units produced pulp The Industrial Unit. area the of the commercial with is filed and materialis documented This report. in atechnical result complaint will that the so are analyzed markets, –internal external and complaints customer internal procedures, Fibria's Code of Conduct of Fibria's Code Self-regulation Code Advertisement Brazilian communication marketing to related standards Codes and voluntary Launched in 2010 in Launched filed with CONAR were complaints No is assessed compliance wich F requency with with requency about the product responds to these concerns describe how the organization I markets? certain in thatproducts are banned Does the organization sell No No f yes, f yes, responded describe how the organization I debate? public or of questions from stakeholders subject the are that products Does the organization sell No No f yes, f yes, - -

  Fibria | Sustainability Report 2011 69 70   Fibria | Sustainability Report 2011 impacts that cannot be mitigated due to the sheer size undertaking. of the to sheer due the mitigated be that cannot impacts of R$18 amount in environmental the the Measure to million aCompensatory offset established and operation the for License hasInstallation grantedan Fibria IMASUL At thisstage, people. by 600 attended was and (SEMAC) nology Tech and Environment, for Planning, Science the and State the and Secretariats Sul State do (IMASUL) Mato Grosso forEnvironment the in Institute by the coordinated was hearing The details. project other and (EIA-RIMA) study ment 2011Assess June In Impact of Environmental Trêsan topopulation tothe present Lagoas Hearing aPublic held Fibria land. company-owned on remainder the tocompany and the in leased areas 70% of which plantations, of eucalyptus acres 100,000 nearly comprises formed, being is already which production, thisadditional to support base forest The period. construction in the people 3,000 around employ will and billion by 2014. at R$3.6 is estimated investment to The 3.05 tonnes/year million today'sfrom 1.3 of pulp/year tonnes million capacity production boosting late 2012In plant in Três(MS), adate launch for of asecond the set will Fibria Lagoas Expansion of Três Lagoas Unit     Conduct and Brazilian Self-Regulation, which amongother Advertising things, consider: Code, Code of its Advertising Brazilian the Self-Regulation marketing, follows Fibria institutional and communication in of 2010.or marketing activities activities the out advertising arising from of fines records carry are no To There references. international and of local law, standards and ethics current for the respect for its marketing is and known and initiatives advertising deceptive condemns Fibria portantly, marketing.im More and/or of communication actions the concerning of non-compliance acase had has never Fibria communications, including advertising, promotion and sponsorship, by of PR7) type outcomes (GRI Total number of incidents with of regulations non-compliance and voluntary codes concerning marketing

Sustainability Ethical Norms of CONAR: http://www. of CONAR: Norms Ethical Sustainability in 1976; Aires in Buenos World Congress held XXV of the mendations Self-Regulation”, Advertising “Effective in 1974, in published his study those especially congresses, recom the and world its and Association) Advertising –International (IAA Association Advertising International of the guidelines The 1, 57690 No. 1966; of February Decree 18, of June 1965, 4680 No. and in Law chapters country, of the especially legislation advertising of the guidelines The from 40 countries; 40 from than250 by Brazil more and entities adopted have terms been whose and January in Rio Congress held the during in 1937 originally published Practice, in 1949,Code ofrevised Advertising and 1955 1966 and finally and in 1973 Chamber International of the of Commerce International of the guidelines the (ICC)and recommendations The conar .org.br/html/noticias/070611.html. - - - - daily, with breaks for the announcement of community activities. of community announcement fordaily, the breaks with broadcast be will month, which each produced editions three be will There Santo state). Teixeiraand (Espírito Freitas de state) (Bahia Mateus in 2012 launched in São be will which Action, by broadcasters In Community such as carried and programs, means of boxes,and by radio the suggestion to next municipalities, in different four incommunities five company, the from installed Talk boards notice through for aconduit messages is also to Fibria projects. Program) ment Territory Develop (Rural in PDRT participating communities of the disposal at the that are placed boxes suggestions the to how use for explaining responsible team is also The brought to unit’s to attention. the be issues enables which log, in incident an events record They residents. local with contact company in direct the to represent trained has been in the participates also communities, local the team, hired from within monitoring forest The in 2012. March ready to be is expected and program the to introduced manage is being software new Moreover, case. single to every respond which areas, toappropriate on the them pass and complaints and suggestions concerns, to trained receive were of Bahia. Call south handlers Santothe and in Espírito communities with tionship 2011,In Talk the introduced Program Santo to state) Fibria (Espírito Unit Aracruz the numbers. telephone toll-free dedicated through Units Industrial and to related Forest our irregularities transportation wood or incidents industrial or forestry ronmental, envi to register are able communities Neighboring company’s in the interest business. have adirect who parties other with channels for communicating specific as well as suggestions, and toconcerns handle hasOmbudsman an Fibria stakeholders Communication with Fibria. by coordinated initiatives environmental and social our on and by operations our caused impacts the on comment They Fibria. neighboring in live regions who of people views the on areport includes chapter also The unions. labor and government NGOs, suppliers, employees, with and – movements workers’ andlandless fisher black, as – indigenous, such communities specific with relationship covered in thischapter, are also to them company's mitigate ways the and about information operations brings which forestry and by industrial our generated impacts The communities. in neighboring projects in social investment as well Fibria’s as in 2011 main initiatives report we stakeholders, with pages, following to the engagement In respect with Introduction Social performance 5 6 4 , aimed at building a closer rela at buildingacloser , aimed Talk and Program to Fibria - - -

  Fibria | Sustainability Report 2011 71 72   Fibria | Sustainability Report 2011 communication Face-to-face Intranet Printed journal notifications Digital Report Sustainability Internet Newsletter Notice board V ehicle/Tool and external stakeholders, Fibria has put in place various communication vehicles as outlined in the table below. table in the outlined as vehicles communication invarious place has put Fibria stakeholders, external and general in workforce the areas, the company, specific in employees between of flow information the to speed order In sustainability. to exclusively devoted to easier. make information access and has asection page browsing site also home The the on content links and segmented while results, quarterly and for areas disclosure special and spreadsheets interactive such as of tools, 2011, In companies. listed governing legislation in the determined introduction the with renewed, site was IR the site (www. own its has department Relations Investor the addition, In media. the and supplies management, to personnel in relation (www. website its on available contact, telephone and exclusivee-mail provides company also The Meet the CEO the Meet – – www. Institutional website Fibria Notícias Fibria Net Fibria Vital Gestores Área Extra Informe-se Fibria News Fibria Name fibria .com.br .com.br/ir) for the disclosure of information that is of interest tofinancial that of ismarket, of information the interest as disclosure for the .com.br/ir) fibria events involving the company. the involving events important most the on news providing website, on the language Portuguese page of the Fibria registered audience the at aimed bulletin online An flow. e-mail the reducing and information to access facilitating to aview with available, publicly systems and services documents, news, Making Units. the at events main the and company their families, containing key messages from the and workforce Fibria the at aimed Publication teams. their and management the between information promotingof interaction pertinent company the within leaders to disclosure E-mail promoting changes in or attitude behavior. cases, certain in and, importance of anything about personnel the informing areas, determinate to specific information of disclosure E-mail boards. notice the on put and out printed be can that news, urgent of disclosure E-mail events. regional and corporate about information containingand mobile modules), Units (harvesting offices company’s the in locations, busy in placed strategically boards notice on up putting for Flyers involving the company. the involving events important most the on news providing website, Fibria the of page language English the on registered audience the at aimed bulletin online An Units. company’s the at employees with meetings face-to-face Regular economic-financial spheres. and social environmental, the in the company’s principal results and challenges Publication that compiles and discusses as resources for communication withstakeholders. well as interest, specific of content and issues, on position its information, institutional publications, news, as such public, makes company the that outside audiences. It contains all the information with communication of channel Fibria’s main D escription

Weekly – Monthly – – – Weekly Monthly – Annually – F requency government, media government, NGOs, students, employees, suppliers, clients, Various: Employees Employees positions Employees in leadership Employees Employees Employees government, media government, NGOs, students, employees, suppliers, clients, Various: Employees government, media government, NGOs, students, employees, suppliers, clients, Various: government, media government, NGOs, students, employees, suppliers, clients, Various: Target public .com.br), .com.br), fibria Social Media Dialogue Constructive Visits Programmed Portal Governance Corporate with investors Communication Videos publications Special publications publications Specific V ehicle/Tool segurança fibriacelulose www.youtube.com/ YouTube – page valordafloresta –www. blog Forests” of “Importance – – – Brazilian investors Public meetings with Fibria Day results quarterly of Disclosure www. – investors for Site company the of areas or topics specific on and purposes, training for safety, and industrial forest Institutional videos on and others folder, institutional Plan, Stewardship the of summary Public EcoCiente NaFolha com estrada Na JornalEco Name fibria .com.br/ri .com.br and industrialoperations. forestry company’s the of vicinity the in located network, school state the in education elementary management, trends, markets, and other matters. other and markets, trends, management, to relating topics on sector the in leaders and content, interviews with company executives aYouTube has institutional Fibria showing page forests. to relating issues on debate and disclosure to devoted Page Web operates. company the where states academic institutions and other stakeholders in the as neighboring communities, churches, NGOs, such with, deals company the that groups of Initiative promoting dialogue withrepresentatives projects. well as Fibria’s socio-environmental as and industrialoperations, company’s forestry the showing and visitors receiving for Program relating to Fibria’s governance. corporate news, institutional information and documents to access restricted with channel Communication and questions. company answer and investors, to present information about the FibriaFace-to-face executives meetings between theabout company and answer questions. and external audiences, to present information FibriaFace-to-face executives meetings between questions them. about answer and results operational and financial present the company’s quarterly economic, to calls conference or meetings Face-to-face andinformation features aimed at this audience. Communication providing channel for investors, – – area. forestry the in workers the company’s and employees own outsourced at aimed publication education Environmental visit. the of a memento theand company providing presenting Units, the to visitors at aimed Publication practices. driving good and Fibria, containing information safety, about health to that companies are services providing transport for working drivers the at aimed Publication 5 the of teachers and students at aimed publication education Environmental D escription th and 6 and th

years of of years Monthly – – – – – – – – – – – Monthly – Quarterly F requency the 5 the Students and of teachers government, media government, NGOs, students, employees, suppliers, clients, Various: media government, NGOs, students, employees, suppliers, clients, Various: media government, NGOs, students, employees, suppliers, clients, Various: of Fibria’s operations communities in the vicinity Visitors from the committees and the various advisory of the Board Members Investors in Brazil media and investors Foreign employees abroad, the media and and Brazil in Investors abroad and Brazil in Investors media government, NGOs, students, employees, suppliers, clients, Various: – Unit Aracruz workersForestry at the Units the to Visitors Fibria to services providing companies of transport Drivers education school state elementary Target public th and 6 and th years of of years

  Fibria | Sustainability Report 2011 73 74   Fibria | Sustainability Report 2011 shed in 2002, and are mainly directed at the following strategic areas: strategic following at the in 2002,shed aredirected mainly and     Votorantim the Institute of guidelines the with aligned are investments Fibria’s socioenvironmental business. of its is legitimacy reinforcing Fibria social the activities, of its to eliminate impact the mitigate or seeking time same at the while business, forestry the with communities to integrate working By these mutual solutions. at seeking aimed all, and, above dialogue members for community education environmental consultants), by specialized (backed planning ,land-use generation income and creation employment the residents, training of local professional courage to are programs en There communities. of life in these quality improved and inclusion social at supporting aimed jects pro socioenvironmental and in engagement has invested it in 2009, founded, Since was it company’s performance. to the of Fibria’s is critical operations vicinity in the located of communities residents the with relationship A good activities. forest by its affected are which situations, of different in a variety rural and communities, urban several with company maintains relations are all supply Consequently, contracts, located. ofon long-term producers, timber independent the properties the and areas preservation plantations, mills, eucalyptus its where SantoBahia), and Espírito Janeiro, Gerais, de Minas Rio Sul, do Paulo, Sul, do Mato Grosso São Grande (Rio Brazilian states in seven in 254municipalities has operations Fibria Relationship communities with Communities talent thatstandsoutinthevarious socio-cultural projectsthataresupported. parameters fortheitinerary thatisofferedtoyoungpeopleintheareasofeducation, work, cultureandsport, aswellreinforcingrightsandencouraging young Industrial, whichisoneofFibria’s shareholders. The institute’s programs areaimedatyoungpeopleanddefinedas ‘routes’. Eachrouteintegrates andsetsthe 1. The Votorantim Institutewas foundedfor thepurposeofaccreditingsocialinvestments Votorantim Group, thecontrollingshareholder of Votorantim  Environment: conservation of natural resources, such as biodiversity, water and soil, in all the biomes where the com the where biomes in soil, all water the and ofbiodiversity, such naturalas resources, conservation Environment: forests of the use the by diversifying opportunities, income and creatingwork income: and employment Generating of people; young development reinforcing educational the activities, of allsporting kinds promotion Sport: backed by federal (Rouanet Law, Lawand Sport Fund for Children and Teenagers) and state (ICMS) laws. (ICMS) state and Teenagers) and Children for Fund Sport Industrial, Lawand Law, Votorantim the by (Rouanet controlled federal by backed companies from funds with sponsored are Institute, Votorantim the by coordinated are projects Incentivized Note: event, Dialogues Constructive the (MST), investment from BNDES, Movement among others. Workers’ Landless the with partnership in Settlements, Sustainable project the Including 3. value. Updated 2. projects. the managing of cost the includes also It programs. social of cost direct the and projects charity to infrastructure for community funding support the with company’s area), contributions organizations, NGOs own and technology research (unconnected institutes include These company. the outside people of benefit in community the in investments and to donations to 1. Refers projects Incentivized Investment Total Fibria Votorantim Institute Education: labor training labor Education: and formal qualifications, environmentaleducation, building skills social entrepreneurism;for conscientious consumption practices. of adoption the and sources energy renewable to incentives use emissions, of carbon reduction to conservation, lead that services for environmental of payment programs others), and cerrado, pampa (Atlantic Forest, pany operates and rural properties, promoting local enterprise, and new business opportunities linked tocompany’s the activities; opportunities business new and enterprise, local promoting rural properties, and or archaeological value; archaeological or Culture: appreciation and restoring of the local culture and traditional knowledge, conservation of sites of historical of of historical sites conservation knowledge, culture traditional and local of the restoring and Culture: appreciation in neighboring communities R$ 16,104,901.55 R$ R$13,922,901.55 (GRI EC1) (GRI R$347,310.00 R$ 2,182,000R$ 2009 1 R$ 16,941,274.42 R$ R$ 3,200,000.00 R$13,506,816.42 R$587,910.00 2010 2 1 , which was establi was , which R$25,706,138.00 R$20,615,000.00 R$3,098,000.00 R$1,993,138.00 2011 - - - - 3 Três Lagoas Unit (MS) Unit Três Lagoas Aracruz Unit (ES, BA and MG) and BA (ES, Unit Aracruz 3. The full amount accounts for investments in road networks. road in investments for accounts amount full The 3. roads. city in invested were 846,987.32 R$ 2. networks. road in invested were 1,500,000.00 1. R$ Total (RS) Unit Forestry Leão do Capão (SP) Unit Jacareí Investments Capão Bonito Forestry Unit (SP) Unit Forestry Bonito Capão  2011 target development social and economic their promote that measures and engagement through relations community – Improve Goal Result: Sul state. do Grande 2in and Rio Sul state do 2in Mato Grosso Paulostate, 4in 3inSão state, Bahia Santo state, Expand the Votorantim Partnership Project for Education from 7to from 13 for Education in Espírito 2of which Project municipalities, Votorantim the Partnership Expand Jacareí Jacareí Jacareí Aracruz Aracruz Aracruz Aracruz Aracruz Aracruz Três Lagoas Leão do Capão Leão do Capão Piracicaba Capão Bonito U nit with participation of 14 in 2011 municipalities participation achievedPartially with target below: table in the shown as in infrastructure Jacareí/SP Branca/SP Santa Jambeiro/SP Valério/ES Vila Conceição da Barra/ES Nova Viçosa/BA Alcobaça/BA Caravelas/BA Aracruz/ES Água Clara/MS Leão/RS do Capão Grande/RS Arroio Piracicaba/SP Capão Bonito/SP involved Municipality (GRI EC8) (GRI R$ 44,118,252.65R$ R$ 42,432,232.85 R$ R$ 1,452,919.80 R$ R$ 233,100.00R$ R$ 0.00 R$ R$ 0.00 R$ 2009 R$ 10,476,838.65R$ R$ 8,639,000.00 R$ 1,474,705.24R$ R$ 352,133.41 R$ R$ 11,000.00 R$ 0.00 R$ 2010 R$3,276,804.04 R$ 1,609,488.38 R$ 868,579.09 R$ R$ 755,782.75 R$ R$ 42,953.82 R$ R$ 0.00 0.00 R$ 2011 3 2 1

  Fibria | Sustainability Report 2011 75 76   Fibria | Sustainability Report 2011  meetings. in the to participate encouraged and are invited members 2011 during stage either community All undergo not did Unit applied. not was Leão do Capão Model The thus and the stages. harvesting and plantation the during operations of Fibria’s to 100% is applied forestry Model Relationship The company. the with history relationship its by areaand assessing in the plantations eucalyptus of Fibria's percentage by the is measured tocompany’s the operations community of the importance the and Fibria; by area occupied municipality’s of the percentage by the is measured impact the priority); the higher the index, the lower (the indices economic eight by and social key is defined vulnerability The company’s for the operations. munity com of the importance the and by Fibria’s generated activities vulnerability, impacts economic and social priority: low or high, as medium communities the listing when dimensions three considers Matrix company.the Prioritization The are rankedwith relationship of their annually, according populations tointensity the is reviewed these which whereby Plan, a up Community Relationship has drawn Fibria communities, neighboring To its with relationship ensure a good plantations. company’s by the eucalyptus degrees in and varying negatively or positively ckgrounds, are affected which cultural and ba social economic, of different communities with is in contact Fibria scope, business extensive its Given presence communities. in those company's of the intensity the and activities annually, are planned forestry Unit’s the meetings per as These Agenda. Face-to-face and Dialogue Operational Meetings, Community Engagement, by all of Fibria’s adopted proach Units: afour-step ap with Model aRelationship follows operations its neighboring Fibria's communities with relationship Relationship modelwith neighboring communities    municipalities involved: 31. involved: municipalities of below. Number table see of Fibria’s operations, forest vicinity in the located municipalities all of the in almost out carried were Dialogues Operational to them. mitigate ways and impacts of operational population to inform local the serve meetings are to take place. operations These planned the areawhere the surrounding communities in the tions 11. involved: of municipalities Number interest. of common toinformation exchange serve also meetings munity. The com the with in partnership locally developed projects of the accounts of rendering purpose the with pany operates, process as they are less impacted by the company’s forestry activities. Number of municipalities: 64. of municipalities: Number activities. company’s by the forestry impacted are less they as process Engagement covered not by the in all communities are conducted visits reality. These local the to understand in order 26 involved: of municipalities Number operations. by Fibria’s impacted most communities in takesplace those model Engagement The processes. decision-making and company’s in the them activities engaging while communities, the to understand seeks and partner development local of role the assumes Fibria (PDRT). Program Rural the through Territory Development is done this Engagement nities,

Face-to-Face Agenda: These are meetings with leaders and opinion makers in the municipalities where the com the where municipalities makers in the opinion and leaders with are meetings These Community Meetings: Operational Dialogue: Engagement: Refers to the relationship based on the Votorantim rural commu the Manual. on In Engagement based torelationship Institute the Refers Is done through regular visits paid by company representatives to neighboring communities communities to neighboring by company representatives paid visits regular through done Is Consists of dialogues conducted before commencement of the company’s forestry opera company’s of the forestry commencement before conducted of dialogues Consists ------thousand people. thousand 150 approximately reached development, socio-cultural and economic issues, training, and environmental cation 2011,In edu byincluding Fibria, healthcare, undertaken actions and programs responsibility environmental several Total Jacareí (MS) Lagoas Três Aracruz communities in2011were: 3. The CapãodoLeãoUnitdidnotundergoplantationsorharvestoperations during2011andthustheOperational Dialoguewas notapplied. The maindemandsfromthose 2. Vale doParaíba andCapãoBonito. and atthe Três LagoasUnit55%. 1. SatisfactionsurveysareheldduringOperational Dialoguemeetings. At the Aracruz Unit89%oftherespondentsgaveDialoguearating of “Good”, attheJacareí Unit95% U the dialogue with the company. the with dialogue the improve increasingly and actively more process toof the take hold is expected community Atned. meeting, each that happe everything to discuss locals the with meet Fibria’s operation, At forest representatives of each end the At the end of operations in the community necessary. if agreement of the any change aspect or review and munity com the with made agreement the with compliance to monitor operations during are held meetings two At least During operations in the community in minutes. is recorded in thisrespect meetings the during communities the with agreed was What trucks. moving and dust noise, such as to to impacts reduce what do in advance company establishes The Before the company commences operations in the community nit • Supportfortheproductionofnativeplantsandeucalyptus. Fibriadonatedgreenhousetrays, tubesandsubstrate fortheproductionof10,000seedlings. • The communityasked forclosercontactwiththecompany, somewoodandtheuseofspaceinsurroundingfarmstoplacementcattle. 2 51 municipalities Três Lagoas, Selvíria and Brasilândia. and Selvíria Três Lagoas, 3 municipalities (SP), Taubaté (SP), Tremembé (SP) Tremembé Taubaté (SP), (SP), Paraitinga do Luiz São (SP), Campos dos José São (SP), Branca Santa (SP), Pindamonhangaba (SP), Lorena (SP), Jambeiro (SP), Jacareí (SP), Itu (SP), Itapetininga (SP), Igaratá (SP), Guaratinguetá Guararema (SP), Cunha (SP), (MG), Carrancas (SP), Caçapava (SP), Angatuba (18Jacareí municipalities) Serra (ES), Teixeira de Freitas (BA) (BA) TeixeiraFreitas de (ES), Serra (ES), Pinheiros (ES), Prado (BA), São Mateus Canário Pedro (BA), Viçosa (ES), Nova (ES), Venécia Nova Nanuque (MG), (ES), Mucurici (BA), Mucuri (BA), Neto Medeiros (ES), Linhares (BA), Lajedão Jaguaré Ibiriapuã (ES), (BA), Ecoporanga (ES), (ES), Barra da Conceição (MG), Chagas Carlos (BA), Caravelas (ES), Aracruz (BA), Alocabaça 22 municipalities Votorantim (SP) (SP), Pirapora de Alto Salto (SP), Branco Ribeirão (SP), Sul do Pilar (SP), Itapetininga (SP), Bonito Capão (SP), Avaré (SP), Anhembi municipalities) Bonito (8 Capão were conducted in 2011 in conducted were Municipalities where harvest operations

31 municipalities and Água Clara Selvíria Brasilândia, Três Lagoas, 4 municipalities: Cunha.Lorena, Guaratinguetá, Jambeiro,Caçapava, Carrancas, Pindamonhangaba, Taubaté, Paraitinga, do Luiz São Igaratá, Guararema, Branca, Jacareí, Santa (13Jacareí municipalities): Mucuri andMucuri Nova Viçosa Two municipalities in Bahia: Canário and Mateus São ConceiçãoAracruz, da Barra, Pedro in Espírito Santo: Four municipalities Branco, Votorantim, Pilar do Sul Itapetininga, Guapiara, Ribeirão Avaré, Anhembi, Capão Bonito, municipalities): (8 Bonito Capão Dialogue in 2011 Operational with Municipalities

called Brasileira called farm neighboring the to road rural of km 50 of recovery the made company The condition. good in not was • Road sprays water by wetting of project a in invested company The transport. wood by caused dust the by impacted • Neighbors maintenance of roads of maintenance and improvement the in invested company –the condition poor in • Roads company the for materials raw carrying trucks the of speed of reduction and control the on worked –Fibria vehicles of speed • High transport, if necessary transport, of flow the decreases even and rotograma in included is logistics – sites leisure and fishing near weekends on flow traffic • Increased – the company intensifies wetting roads access of wetting for /request • Dust utility the from patterns. Logistics requests solution wiring –faulty lines power of • Height or redouble attention transport to avoid for school peakhours told are drivers rotograma, Logistics the in –noted access of routes transport • School Dialogues initiatives taken Operational from demands Main - - -

  Fibria | Sustainability Report 2011 77 78   Fibria | Sustainability Report 2011     operations: Forestry were: members community local by reported impacts negative significant most The meetings. Dialogue Operational at the brought about complaints for measuring implemented was Amethodology ones. ce positive enhan and impacts to negative reduce since Fibria’s seeks adopted and inception has been Model Relationship The operates. Fibria where regions in the projects environmental and social on in decisions used and are concerns collected and needs communities’ other and impacts the operations, the on Data doubts. up to clear nities tocommu the payvisits or meetings hearings, may and hold impacts the investigate then CRLs The software. System) SISPART in the (Stakeholder is stored information the demands, communities’ the on Based Board. Fibria’s Executive by approved and Commission (CIS) Sustainability Internal by the provided guidelines the in accordance with (CRLs) Relationship Commissions Local the who compose by company representatives is made of impacts identification The operations. by its affected are directly of eucalyptus for production leased areas or ties proper radiusa 3 km of its within living that communities company believes The activities. from its effects positive the time, maximize same and, the at identified to impacts eliminate the mitigate or company hopes the diagnosed, Once communities. neighboring on operations by its caused impacts the systematically assess and to identify seeks Fibria on communitiesImpacts               Industrial operations: job redundancies job smoke generation generation noise generation odor of roads obstruction generation noise customs and habits local for disregard non-predatory livelihoods communities’ local of disruption compromised safety food quality and in water availability change of prices land appreciation production in local /changes of municipalities productivity in the change animals) and (people of risk accidents increased of reference points loss and landscape in the change generation dust deteriorated roads of existing quality and capacity the isolated became communities and many properties structure agrarian local in the change - - - and professional training, and on-street safety and security. and safety training, on-street and professional and education of lack structure treatment, are sewage water and needs immediate more the and dozens of communities with consulting firm. work We by aspecialist conducted needs its and community of the situation of the diagnosis by afull is preceded which process, Engagement the from arise and programs development relate to local projects All       operations: Forestry were: impacts main positive The Industrial operations: conservation of water sources conservation areas degraded of rehabilitation of services provision opportunities employment provision of services provision opportunities employment          are: main results whose project, (PDRT) Plan Development Rural in the Territory states Bahia Santo and in Espírito families rural from communities of 687 participation the is highlight Sul. Sul, of do Santo, this process do The Grande Paulo, Espírito Rio Bahia and of MatoSão Grosso states in the 87State, communities with Santo State 9in 16 Espírito Dialogue and Operational and in State) Bahia Result: communities. remaining the in implemented to be going was Agenda Face-to-Face the while meetings, Dialogue Operational the to attend expected were 2011, For operates. it in which 75 communities Model, Engagement the to join 10 expected were communities states Brazilian five in the operations industrial and of Fibria’s according to impact levels, forestry the at different  2011 target development social and economic their mote pro to measures and engagement through communities local with relationship the –Improve Goal production in agroforestry systems agroforestry in production food and of eucalyptus production joint for production agricultural designed plantations ofin retreatareas forest use better interaction amongcommunities better to facilitate and transportation production timber program) aVida (Irrigando to water quality access with improvement infrastructure policies to government access market local the on and vocation on focused production agricultural networks of rural utilities expansion and strengthening NGOs and universities with partnerships 2011 the communities Implement neighboring with of dialogue process the through Plan Community Relations Target fully

met with Engagement of 28 communities (2 in São Paulo State, 1 in Mato Grosso do Sul Sul PauloState, do of in 28 São (2 Engagement 1in communities Mato Grosso with -

  Fibria | Sustainability Report 2011 79 80   Fibria | Sustainability Report 2011 traditional fishing communities. traditional and (MST); Workers’ Movement Landless of the of Tupiniquim members people Indian Guarani or ethnicity; status; of claiming this process are in or the communities) own their formed of runaway slaveswho (descendents quilombolas as recognized have of been which several communities, black includes This entities. socio-environmental independent and bodies government of participation the with inclusion, often social for projects specific developing has been which company, the from attention special merit communities Some companies. other and NGOs at all levels, government, the such as solutions, satisfactory to that might develop help parties other with engaging and communities the with directly which working is Fibria, the for priority is a conflicts these challenge, ofsettling the complexity the Despite intentions. good its of regardless resolve, to capacity management’s the unrelated beyond to company and the that are often problems from Bahia, stemming of south Santo the and Espírito of north the of regions poorest the in communities with certain conflicts unresolved However, are operations. some there its neighbouring communities of the most with relations maintains good Fibria Relationship communities specific with Learn moreabouttheimpactsof Wood logisticsonpage129.           Goal – Consolidate sustainability in Fibria’s governance. Fibria operates. Some of the topics included: topics of the Some operates. Fibria in all from which Brazilian regions institutions and communities by 150 local from event attended was people the and discussed, were suppliers and company, for customers ofthe interest communities, topics neighboring Result: The discussions were conducted with the following structure: following the with conducted were discussions The by all participants. experiences and opinions of ideas, discussion free for the space create and a issues related of sustainability to understanding information the important disseminate audiences, internal external and with event to was improve communication of Fibria’s Dialogues purpose Constructive The 2011 target voting of the proposed resolutions discussed in plenary sessions through electronic means electronic through sessions plenary in discussed resolutions proposed the of voting through audience questions oral participation or written Com Sustainability of the amember and director executive of aFibria participation with discussions round-table discussed totopic the of Fibria's pertaining initiatives presentation opportunities and actions challenges, related with topic of the presentation Conduct a discussion panel with Fibria’s with panel stakeholders adiscussion Conduct climate change: water and biodiversity water and climate change: development of local communities through family farming and forest enhancement programs programs enhancement family through farming forest and communities of local development community engagement as the driver socialof and environmental forest certification improvements mittee, as well as representatives from other companies and from communities involved in the topic in the involved communities from and companies other from representatives as well as mittee, through the Constructive Dialogues event held on August 11 August on event held Dialogues Constructive 12, the and through met Target fully 2011. Several

- ves was achieved in 2007, achieved was ves (TAC) Agreement Adjustment signing of aConduct the with reser indigenous local of the expansion regarding todispute land the Asolution Santo state). (Espírito of Aracruz pality Fibria has made progress in its relations with the seven indian villages seven the with relations in its progress has made Fibria Relationship with indian communities 20%. by at least communities priority with projects engagement of its reach in 2011 2012, In company from property 86). page on theft more ratethe intends of Fibria wood to (read increase in reduction than 50% a more and residents community 600 formal hiring are of the about activities inclusion social of these results notable most the Fibria’s Among in neighboring 57 operations. introduced programs communities development the from benefiting are already people, 10,000 approximately numbering households, 2,500 Around institutions. third-sector and private government, and company the between of partnerships establishing the and processes, engagement the to observe interlocutors local respected Commissions, with Relations of Local creation the activities, for Fibria’s Matrix socioenvironmental Priorities 2010, from as introduced and of 2011, planned course overthe proceeded projects, These of a establishment the with expansion ofthereservewhilegivingcompany allthelegalassurances it needed. leaders andthePublicProsecutionService, whichculminated inthesigning, onDecember3, 2007, oftheConduct Adjustment Agreement (TAC), providingforthe understanding thataformalguarantee wouldbegivenprohibitinganyfurther expansionofthereserve. This was acceptedbythegovernment, theindigenous by afurther11,000hectares, approximately. Although itwas entitledtoappealagainstthedecision, Aracruz Celuloseadoptedastrategy ofnegotiation, onthe by FUNAIin1998. The disputewas endedin2007, whentheMinisterofJusticeattime, Tarso Genro, issuedan Administrative Ruling expanding thereserve (including invading thecompany’s landsandmillscampaignsagainstitscustomers), whilecallingfortheexpansion ofthereservetototalrecommended pass onfinancialresourcesforinvestmentin community projects. In2005, theindigenouscommunitiesbroke theagreementandreturnedtousing pressuretactics the reserveby2,571hectares. This was followedbyincursionsintocompany-ownedareas, whichwereonlyendedbyanagreement whereby Aracruz Celulosewould of theoriginalreserve, setupin1981, byafurther13,000hectares, approximately. The MinisterofJusticeonlypartiallyfollowedthatrecommendation, expanding portion ofthe4,500hectareslandusedtosetupvillages. In1998, inresponsetopressurefromtheindigenouspeoples, FUNAIrecommendedtheexpansion 2. Formal relationsbetweenwhatwas then Aracruz CeluloseandtheindigenouscommunitiesofEspírito Santogotunderway in1981, whenthecompanydonateda recognized theexistenceofindigenouspeoplesinstateEspíritoSanto. The indigenousreserveswereestablishedin1983andexpanded19982007. Brasil, Irajá andComboios)threeareGuarani (BoaEsperança, Três Palmeiras andPiraquê-Açu). In1975, FUNAI(NationalFoundation forIndian Affairs) officially 1. The municipalityof Aracruz ishometoapproximately 3,000indigenousinhabitants, livinginsevenvillages, fourofwhich are Tupiniquim (Caieiras Velhas, Pau- the first project developed by an indigenous community, while other are being put together for approval approval in for 2012. put together being are community, while other an by indigenous developed project first the at http://www. blog Days School [see: competition essay Days winningaprize School in the astudent and program for Education Partnership in 2011, to appear begun have already approach Votorantim in the communities in Indian of schools inclusion the with of this results Fibria’s The near communities in black installations. applied successfully that has been (PDRT) Program that is similar toRural the Territory Development reserves in the model of agricultural an viability the on working is presently Marina ISA). or Institute (Socioenvironmental Socioambiental Instituto NGO the through working causes, to indigenous dedication for her is well-known Kahn, who Marina anthropologist of the services the engaged Fibria in 2011, leaders, indigenous with facilitate and contact to empower order In populations. Indian of the development sustainable aim for of supporting the begun, was relations of indigenous phase issue, land anew the resolved Having the with in compliance financial resources, TAC. outstanding the on passed Fibria (ANAÍ), Action for Indigenous Association by National study ethnoenvironmental 2010, In amount. equal an contributing of the completion the that from study,upon FUNAI with deriving to projects million R$3 contribute would and communities, of the development and land of the use for the options best the tify thatan would ethnoenvironmental iden study, and by FUNAI, by chosen the indigenous conducted an leaders entity in 2010 ratified and Aracruz to finance Meanwhile, Fibria’s Celulose, decree. predecessor, presidential undertook by a in 2008 done dispute. was of the This 11,000 the to demarcate object the areathat was undertook hectare FUNAI and faith in good been had land of the occupation company’s that the recognized previous parties all the agreement, the In Service. Prosecution Public Federal by the intervention following (FUNAI), Foundation Brazilian as well as Indian gation, blogeducacao .org.br/concurso-tempos-de-escola/]. Moreover, the Votorantim Institute approved .org.br/concurso-tempos-de-escola/]. 2 1 neighbouring its forest plantations in the munici in the plantations forest its neighbouring 2 between the parties toliti the parties the between - - - -

  Fibria | Sustainability Report 2011 81 82   Fibria | Sustainability Report 2011 be built in the region. builtin the be training center to is also production agroforestry an At MST’s request, the practices. environmental and agricultural good for awarded being taken into certification be will account with criteria cultivation, in all the Sustainability ted. predic originally 800 thanthe more program,significantly in the farming participate than1,000 families will More by INCRA. paid compensation against to expropriated is to Fibria, be belonging MST, byarea the aof total and occupied five land covers farms that includes The of plots. hectares 11,000 allocation the and families 2011,gust of beneficiary selection the movement, from the hiring of specialists the agricultural with in Au implementation began project Settlements Sustainable the members, of MST at ameeting approval Following (ESALQ/USP). College Agricultural Paulo’s of São Queiroz Luiz de University at the by up researchers for drawn thiswas model business Bahia. The of government state the and (INCRA) Agrarian Reform and for Settlement MST, the Fibria, Institute National the between in apartnership developed aproposal box), the (see Project Biodiversity and Agroforestry with tlements Set Rural the Sustainable born From thiswas (MST). Workers’ Movement Landless of the by members state Bahia of south of invasion in company byareas the the caused adispute to resolve in dialogue investing has been Fibria Relationship with landless movements  2011 target development. social and economic their promote that measures and engagement through relations community – Improve Goal     following phases: following the completed has already and (MST) Workers’ Movement Landless of the at a meeting approved was project the Sorrentino, Marcos and Paulo Kageyama by USP professors Developed of Bahia state. south families from the Result: Result: families. 800 sity, benefiting training of the selected families in sustainable production. sustainable in families selected the of training financial necessary of the on passing the and settlement of the for recognition formal by INCRA, inspections families. of the selection and plots of the division hiring agricultural ofthereby local generating as predicted. employment, specialists, the biodiver that preserves production agroforestry with project, settlement and implement Develop a model resources. target fully achieved fully target , with implementation of the project in August 2011, in August project of the implementation , with than more benefiting 1,000 - - - - investments and revenues under the PDRT in a number of communities in 2011. of communities in anumber PDRT the under revenues and investments of table is a Below program. the by inbenefited areas theft of wood level the to down bring helping time same the at while families, of other in 2011 part the PDRT on scheme, in the in participating interest growing have attracted the under achieved results good The actions. account an of its renders and community,each work the coordinates in producer, each for which a has representative defined Management havethe Committee, been planting schemes and crops the Bahia, once In keep of and track them. see can communities the where places in public placed boards on are disclosed and associations, residents’ of the at meetings openly and are taken collectively decisions PDRT All for 2012.are planned in 2011 14 where completed were Rural courses Training 60 (National Service), afurther SENAR and through courses training professional and Program), Food School (National PNAE the and Purchasing Program) (Food PAA the such as to family programs stimulate farming, federal through of products sale the on guidance hiredby Fibria), tural specialists 15 (from residents agricul to community assistance technical expert provides PDRT the sharing network, resource and information own communities’ the usingaplatform and as bodies of public avariety with in partnership out Carried Santo. Espírito of and Bahia states in 2010implemented in 2011, progressed and about to in families the 760 in black 24 communities benefits bringing to be started which (PDRT), Program Rural is the Territority Development in thisrespect initiative important most The situation. the to solution enduring and satisfactory to a find ways parties interested other and them with discussing time same at the while incomes, and employment for generating programs with development, in their assist and communities these with dialogue its to has sought intensify Fibria course, due its is following issue legal the While company. the that affect any proceedings rightto the question retains but decisions, legal the matter. the on respect will Fibria adecision down hasyethanded not which (STF), Court Supreme Federal is unfair to have the thatto have issue them taken decree 1988 feltthe the the Constitution, those under Quilombolas to guaranteed the rights the extrapolates unduly of much of society, view in the 4,887/2003, No. that Decree Given to landowners. other belong hectares 9,606 another to while Fibria, of belonging land hectares relate to 15,732 alone two last The completed. has yetbeen not Domingos) (São one and appeal, is under (Angelim) one Jorge), São and (Linharinho courts by annulled the have Two been proceedings of these landowners. of other se tho as well as lands, Fibria that include of quilombos four Santo, of Espírito identification for the state of the north the in hasproceedings, initiated Agrarian Reform) and for Settlement Institute (National INCRA quilombos. as registered 15 communities, been those forhave all overBrazil. or already are eligible Of claimshave for such recognition made communities 1,408 lived, they which on land of the restrictions the beyond in Portuguese) way slaves (Quilombolas, of runa descendants of 4,887,the No. rights the Decree issued extending government federal the Since 2003, when Relationship with black communities - - -

  Fibria | Sustainability Report 2011 83 84   Fibria | Sustainability Report 2011 return return F planted hectare per cost unit Average hectares planted planted hectares of Total number Total 4. Harvesting per familyper ratio investment on Return D I to equipment and family technicalSupport assistance) farming. infrastructure. through inputs. 2011. in out *carried 2.3. Inputs care Crop 2.2. D P per year year per family per income Average Return 2. year per family per Investment The communities are giving priority to the 2012 investments (community/family), through the Management Committee. Management the through (community/family), 2012 the to investments Ribeirão). in 45,000 priority R$ giving are yielded annatto of communities The sale (eg: scheme planting the with accordance in communities, the for income generating already is program The family). per cost investment (low communities the from funds matching have investments All 3. Transport 2.1. Planting preparation 2. Crop 1.1. Soil preparation 1. Third-party services served families of Number Fibria by Total investment 1. I from the association funds Total matching of ( per community nvestment orecast average schemes lanting escription escription escription nvestment * ( 157,972.72 R$) in 30,535.88 18,382.60 11,332.60 17,425.00 13,110.88 4,600.00 2,450.00 3,053.28 3,053.28 3,214.30 9,100.00 6,318.91 1,105% Espora Espora 524.44 Gato Gato 9.50 25 – R$) in

171,434.80 R$ 9,100.00R$ 27,370.88 15,092.60 17,096.40 23,997.96 10,714.68 H H 3,600.00 2,568.40 2,450.00 9,042.60 3,178.28 3,178.28 2,881.15 elvécia elvécia 317% 9.50 16 – 105,396.50 64,809.00 25,384.00 25,384.00 10,650.00 45,659.00 39,425.00 11,550.00 Itaitinga Itaitinga 2,400.33 9,625.00 7,600.00 7,600.00 3,513.22 846.13 315% 27.00 30 – 100,346.03 197,225.07 23,800.00 73,234.75 14,562.50 50,555.35 11,925.00 46,747.25 62,017.40 3,311. 28 3,311. 28 2,220.04 1,486.92 5,800.74 Destino Destino 290% N 45.20 N ovo ovo ovo ovo 34 – 106,440.00 191,880.00 30,000.00 78,690.00 29,265.00 29,265.00 19,425.00 27,750.00 77,175.00 1,804.07 2,661.00 4,797.00 Alegre Alegre Pouso Pouso Pouso 59.00 80% 40 – – –

446,238.36 82,095.88 73,599.50 74,875.00 43,637.00 21,562.50 31,874.17 8,400.00 Ribeirão Ribeirão 1,375.00 4,671.03 1,987.79 7,121.38 7,121.38 7,121.38 582% 41.30 14 – 275,563.95 51,389.84 34,252.60 18,052.60 11,600.00 18,370.93 33,337.24 4,894.27 6,250.00 9,950.00 3,425.99 5,537.24 5,537.24 Juerana 5,537.24 Juerana 436% 10.50 15 – 354,562.30 Rio do Sul do Rio 88,217.78 Rio do Sul do Rio 16,225.00 62,020.90 41,658.40 19,425.00 39,787.50 2,485.01 6,771.88 6,771.88 6,637.50 1,052.83 6,771.88 7,707.88 632% 35.50 46 – through Caravelas, loaded on sea-going barges, to supply the three fiberlines at the Aracruz Unit, which is just 4.3 4.3 which is just Unit, Aracruz the at fiberlines three the to supply barges, sea-going on Caravelas,through loaded production eucalyptus of its part channels Fibria 169). page on Portocel has a51%Fibria about more (see stake equity pulp, in which handling in of the export terminalspecializing amaritime of Portocel, location is the te. Riacho do Barra of sta Bahia Caravelas, and south in the Santo state), (Espírito of Aracruz municipality of the Riacho, a district do Barra in terminals: shipping operates it where areas two the in fishing communities local the with maintains relations Fibria Relationship with fishing communities Espírito Santo), as shown below: shown as Santo), Espírito  2011 Target development. social and economic their promote that measures and engagement through relations community – Improve Goal Results: Results: and differentiatedturalsales. certification aimedat improvements technical in assistance, agricul production, cooperative partnership, partners, local with in conjunction integrated production the agricultural on based groups priority and Santo state) 4inand Espírito Implement the Rural Territory Development Program (PDRT) in 16 (12 communities traditional (PDRT) state Bahia from Program Rural the Territory Development Implement The plans are already being implemented in the communities highlighted. With respect to the others, the analysis has been finalized and the action action the and initiated. finalized being been are has plans analysis the others, the to respect With highlighted. communities the in implemented being already are plans The Community In Community In Dilô Barbosa 1e2 Vista Nova das Araras Morro São Domingos Córrego do Coxi 1e2 Angelim d’ÁguaRoda /Sede-Viveiro Portela Vila Sul do Rio Helvécia Colônia Nova Deus Valha-me Juerana Volta Miúda Gato Espora Ribeirão Itaitinga Alegre Pouso Novo Destino Taquari Aparaju Canabrava B Esp ahia Fully achieved target achieved Fully í rito : 4 municipalities , 15 communities S anto : 2 municipalities, 7 communities , with implementation of the program in 22 communities (15 in 22 program communities of the implementation , with 7in in and Bahia N N umber of households umber of households and 397 families 44 06 60 50 50 50 50 34 30 20 20 28 33 70 27 35 35 18 14 15 12 11 and 315 families Conceição da Barra Municipality Municipality Nova Viçosa São Mateus São Caravelas Alcobaça Ibirapuã - -

  Fibria | Sustainability Report 2011 85 86   Fibria | Sustainability Report 2011 town and the refurbishing of a 3-tonne capacity ice factory. capacity of refurbishing a3-tonne the and town center in the buildingof adistribution the to support of life. decided company also quality The collective the improving the Fishing and in Colony of teamwork Association Gatherers), Pesca”Shellfish “A Z-35, importance the on focused of Caravelas and Areia Association de for 16 of AMPAC cooperativism on administrators (Ponta acourse sponsored also It restaurant. Fisherman)” “O for plan the (The to draw abusiness up Pesqueiro consulting services engaging and fisherman’sassociation local of a headquarters to the maintaining financial resources Caravelas, allocated In Fibria guidelines. investment company’s the socioenvironmental failed to meet which request, asponsorship tocompany turning down due the fishing community, Riacho do Barra of the part the on Fibria, with of dissatisfaction ademonstration was There electronics. and electrics of areas maintenance in the program industrial and apprenticeship an undergo will School Bernardo Caboclo the from people young 40 Another installers. instrument 22 and industrial workers cians, 22 boiler electri 22 welders, 22 mechanics, 2012,for 22 qualifications way in January willunder provide groups two first the getting classes With Santo State). of Espírito Institute (Federal IFES and Training Industrial Service) (National by SENAI supervised training courses, of professional holding the and use), for exclusivelocal avehicle (with Unit Police munity of up aCom setting the tests), Treatment laboratory and X-rays treatment, gency Center, medical general performing UPA(Emer a become which is to – Post Aid first Riacho do Barra of the upgrading the is supporting bodies, public and in 2012, early station, water treatment new of the companies other with to construction together Fibria, addition In anatural thisto be phenomenon. showing studies technical Riacho, by presenting River ofsilting up the for Barrier, the make as Moveable responsible not well companyChannel was as the that the clear it operating and Fibria’s Bernardo about inCaboclo maintaining the work representatives to inform local the opportunity the provided convening also area. The in the operating companies other nine and by Fibria supported Service), Water Sewerage and (Independent Saae Aracruz by the out carried for.is being calling been had project of water, The residents local which treatment and collection the for improving project the was of conversation topic leading The practices. environmental and company’s the activities about dialogue in open to and participate Unit Aracruz the to invited were visit Riacho in 2011do Barra made was at progress leaders Local fishing Important communities. these in Fibria’s with coexistence fishing. of traditional in support measures and action social of dialogue, by means areas, in these communities the with ties closer company seeks The Portocel. from kilometers actions to clamp down on this crime have strengthened, as the following chart shows. chart following the as have strengthened, thiscrime on to down clamp actions of half police last 2011, the in coordinated as significantly first, the to compared quarter the in fourth 40% nearly by has i.e.fallen company’s the from plantations, wood aR$13 stolen was of stolen volume of wood The loss. million thanthat R$12 in smaller was ofmeters nearly 2010,loss this cubic significant, million.about While 320,000 when in 2011 properties Fibria from stolen of wood volume 297,000 was of Bahia. The farin the aloss south meters, cubic Santo and of Espírito north in for the Fibria remainsissue abig arson, with associated often very of wood, theft The of woodTheft - - - The Government of Espírito Santo is planning to launch the North Coast Development Plan, under the same principles. same the Plan, under Coast Development Santo is planning to of North Espírito launch the Government The discussion. under currently is of which deployment the Jucuruçu, and Neto, Prado,Vereda,Itamaraju Teixeira Itanhém, baça, Medeiros Freitas, de Alco Caravelas, Lajedão, Ibirapuã, Viçosa, of Nova Mucuri, districts and municipalities the covers plan identity. The community of the development and culture; infrastructure; leisure; and tourism, sport employability; enhanced and training professional education, life and quality; policies social development; sustainable and environment areas: 2011,November in launched of officially Bahia Government of the tiative that until strategic 2023willon six focus isini an This companies. other with Plan, together Development Sustainable Baleias das Costa the supports Fibria taken. be can steps necessary that the company so the to cases these report monitors The forest environment. the to aggression fire and thefts, company detect the help to communities of these inhabitants the among recruited monitors, hiring forest Fibria was action Another 83). page from communities, black with refer tochapter Relationship the information, please 24from further (for communities. families 760 benefit to directly began PDRT farms, the small-scale to support of initiatives anumber With operates. company the towhere areas the close in communities authorities of public a number with inby tandem Fibria out carried (PDRT), Program Rural is the Territory Development regions in inclusion those for initiative social important An through and creation, job simultaneous enforcement concrete with results. efforts 2011, In of wood agencies. theft on taken were to down clamp non-government and nments efforts unprecedented gover local areas, these in interested companies development, for agencies official governments, of state action joint through of jobs, creation and generation income enforcement with by combining legal settled be only will situation that thisillegal understands Fibria legal. appear iron using of afalse pig trail of to invoices makeproducers product the to front on companies sold is then charcoal which producing and into communities collecting rates by enslaving poor ope which areas, in some endemic criminal network, of alarge-scale is part of wood theft that the noted be should It children in). only allow doors narrow (whose at furnaces of child labor use is the charcoal activity illegal of the facets conclusively. cruelest of the problem the One to solve is needed areas in these players social and Santo in 2010.of Espírito thisfigure has in fallen While 2011, economic by action persistent and coordinated further north in of and the Bahia charcoal south ofin illegal the production and of wood theft on aliving made people 3,000 some estimates, police accordance with In of wood. linked theft furnaces encourages tocriminal chain the which charcoal illegal 1,000 of 2011 of about quarter last in the Enhanced policing destruction and to dozens led of arrests Volume (million of m3) wood stolen of Volume 100 120 40 60 80 20 0 1 st 2 nd 3 Quarter in 2011 in Quarter rd 4 th - - - -

  Fibria | Sustainability Report 2011 87 88   Fibria | Sustainability Report 2011 specialized consultants specialized hired Fibria population, local by the company is regarded the how to monitor Sul. order do In Grande Rio and Bahia Sul, Santo, do Espírito Paulo, inMato Grosso São leaders community and residents local from cism suggestions and to criti attention and by dialogue increasing communities, local with relations its to broaden seeking has been Fibria Consultation communities with any decision. 2011, in January defenses their tendered companies Both down compensation. hasyethanded not court the but seeking Garra and Fibria Pereiraagainst Souza de TwoHenrique wife of and the by father claims filed were civil 2011. Report nability Sustai of Fibria refer version toonline the please case, the about information further Pereira. For Souza de Henrique of todeath the led region, companyin hiredbythe Fibria Garra,asecurity involving Bahia, incident an in southern 17, March –On state Bahia of South the in 2010, of Mucuri municipality of the Incident region Brasília Nova in the farming andfamily farms, involving 250 families. apiculture, such as fish development community for the projects social and jobs 200 of charcoal ovens,generating hundreds destruction the theft, in wood than50% of more charcoal, in areduction has resulted Working Group the of production in the are involved for for families who income create and alternatives activity to illegal halt the Aiming group. of the participants the are among itself Ministry Public local the and in thislocation that operate companies pulp government, local authorities, mental Environ region. Picadão Group the the of created Working office Ministry Public labor. local this situation, the Given of charcoal child that involves production illegal and of wood theft including the are known, region of the problems social The are located. (BA) Mucuri and (ES) Canário ConceiçãoBarra da and of Pedro municipalities the Bahia, where WorkingPicadão Group thereby helping to maintain the local biodiversity. local to the maintain helping thereby areas, degraded of recovery the programs in for the invests company now but past, the in impact significant was there that mentioned Some biodiversity. local on Fibria by impact cite not any do significant interviewees the general, In ofImpact the eucalyptus plantations on biodiversity Critical analysis of the responses 1. Prof. Adriana M. Imperador, Prof. GiselleP. SancinettiandProf. GuntherBrucha. views and audio excerpts are available on the website: www. website: the on are available excerpts audio and views full below. inter are The shown researchers by the responses of the analysis critical and interviews of the Summaries 2012, by February and telephone. five and face-to-face being of them seven 2011September between place took Matrix, Materiality the in identified ten main issues the addressing interviews, The 1 to interview a selection of people in different parts of the country. of the parts in different of people aselection to interview – The region called Picadão is located between the north of Espirito Santo and southern southern Santo and of Espirito north the between is located Picadão called region –The .com.br/rs2011. fibria - - - - the states of Espírito Santo and Bahia. Santo and of Espírito states the in communities by the made criticisms chief of the is one to outsourcing employment direct from in company policy change the as a of result benefits and of income level in the of a decline issue that the out pointed be should It nities. commu in their labor, employment of generate not charcoal, hiring for of local the call claiming company does that the production illegal the with involved until were recently who of state, Bahia south in the of communities Representatives residents. local with relations good its and company of the credibility the compromising thereby frustrated, subsequently were there, which installations of Fibria “little” of her possibility by the tells excited she were municipality, residents the who amongst created expectations the tells of who Sul), do Grande Grande, Rio in Arroio Council of Children Rights for Adolescents and the (Municipal CA Ribeiro, emphasizing Nazine Bittencourt with president is It worth of the interview COMDI providers. through service indirectly or by Fibria directly either of employment, generation the about point apositive made interviewees Most community. in the generation to income contribution the as well as commerce, suchindustrialization, as and infrastructure, respects, inTrês grew several Lagoas that says one since Fibria’s example, For municipality of their arrival. development the mentioned Many interviewees Fibria. from investment without sustainable to become them enable that would nomy of auto adegree achieve not did of time, projects the period for acertain nurtured being after that even mentioned interviewees of the some and projects of social company developing to in the the collaborate expect communities The to sustainability Strategy / commitment past. in the flooding to cause used which Santo state), (Espírito of Aracruz municipality in the village farnot Amerindian an from relating to afloodgate problems mentioned in particular interviewee One of eucalyptus. of cultivation water in the use the from impact significant is no that there and it discharging before wateruses it the treats that Fibria believe general,they In relating to water resources. issues about talking in difficulty had interviewees that the noted was It water of Use communities. towards local commitments of its fulfilling the and communities local from criticism and suggestions opinions, of the consideration its in general, lations re Fibria’s community regarding notably ratings, and posture approval highest the with of those one was aspect This Ethics for forest certification. criteria the regarding for clarification need the about talk also They policies. environmental to in regard its particularly Santo Bahia, and Espírito in communities in certain Fibria’s regarding activities aof clarity lack reflect interviews The Fibria’s activities. of aspects environmental and social,economic the in level of confidence acertain which reflects certification, about knowledge demonstrated whole, the on 2010), and interviewees, the (2009 years of previous toreports contrast the In and Certification voluntary commitments - - - -

  Fibria | Sustainability Report 2011 89 90   Fibria | Sustainability Report 2011 communities, but that nowadays it is dialogue that prevails. is dialogue it that nowadays but communities, by traditional inoccupied areas cultivation eucalyptus and to in regard ownership land particularly past, in the problems had had that they said interviewees Several region. in the to company’srelated the activities indirectly or are directly that rural workers of landless those and settlements fishing traditional communities, black and to Indian refers This Relationship with communities specific to related were Fibria’sopinion emissions. in that person’s which Santo state), in Espírito (Aracruz, of Comboios community Indian in the problems respiratory mentioned year. of the times interviewee One at certain relating to odor of problems mention item, despite last the to regard with noted was interviewees of the part the on of alack knowledge general, In ratings. poor mills earned by the generated control of and odors areas recovery forest of the expansion pollution, hand, other control of soil the Fibria’sby On discharged pollution. mills air and to effluents regard controls overthe with are positive statements The waste and effluents Emissions, hazards. potentialenvironmental regarding of alack information up bring statements some although municipality, in their company’s of the presence arebecause at risk they feel not do interviewees the sense, ageneral In Environmental risks at risk. factors environmental putting thereby plantedforests, company regarding the as posture same the adopt not do partners that the says who in state), Bahia –Alcobaça, Association Residents’ (Ribeirão Osmar with to interview note the is important It Fibria. and community the between in meetings priority given were cation certifi thisand such as and, according totopics some, partnerships forest regarding well-informed to be themselves 2010. showed and for 2009 interviewees The toreports the in relation interviews in the seen was again, achange Here (wood suppliers) Forest partners that have occurred. changes positive At any rate, future consistent to for action. plan time more the recognize they that thisis agood recognized and nities commu local with communicating and in towards Fibria’s working changes saw attitude interviewees the general, In programs. education in environmental participation community for and suppliers hiring for alatentof local the desire revealed interviews The satisfactory. to be considered were lists specia by technical tocommunities the visits The operations. forestry of the effects topositive the comes it when gap information an indicate clear, to of information on be passing the interviewees consider the communities the Although year. previous in as the are positive, communities neighboring company’s of the with accounts relations of the Most Relationship with neighboring communities - - - that Fibria plays an important social role in his region, since it provides assistance to several cooperatives, thereby stimu thereby tocooperatives, several assistance in since his provides it region, role social an important plays that Fibria us told Paulostate, in São (COOPEMADE), Cooperative Wood Bonito Capão of the Lohn,president Evaldo Alexandre state (14/10/2011) Paulo São in (COOPEMADE), Cooperative Wood Bonito Capão the of /President Lohn Evaldo Alexandre community, sense." in ageneral to improve sought our team and same the on played we time We It's environment. for worry. the care preventive the About this. about alot worry we So productive. future, in so the time up, be not will areland, we afraid thatsome the dry will We arerivers afraid that the of nature, well-being. general for the good sake forenvironment, ofthe the informed... for together, of it, come thingswill community the company many and the Ithink good bring we that if are they once it, that defends have company will the apartner neighbors, company are good the and community the if problems, environmental in the Ithink in that even biodiversity, So preserved. has to what be and preserved, be can what destroyed, mustn’t be what is, areserve what community teaching the lectures, holding better. includes That even made be can it but bad, that it’s so not improve further; "I can it believe effective: more even be can conservation at environmental aimed actions the believes he that, and, with partner inaproject as community has to the Fibria bring for this." paid areyou being shareyou. equally; things Let's opportunity Erik the environment, recognizes for the As of because "We are having problems demands: make and its contractors its has tose. is to Fibria call Fibria blame. So expen people’s can, the at they as muchprofit as want to extract contractors the Because to survive. need and beings are we all human Because go! let’s errors, the correct let’s to work, go let's company forto the playteam; time for the the company: to "It's provided services of outsourcing the againcriticizes once and mutual benefits, yield can Fibria and community the between of transparent communication that apolicy believes He employment. forplan generating a propose and businesses local charcoal, other want we jobs."with but together get should that Fibria Eric believes community. companythe is small and to the community, It resolve... easy We alliance won’t between make is agood there if is possible, it and is necessary It jobs. needs community Our down. knocked have ovens,all of been which 300 "Charcoal job: in community, our returning avoid to had and that unpleasant income which to generate has stopped work, alternative need workers the terminated, but has been activities, Fibria’s forestry community, affecting as well as the on impacts environmental companies."and ced social cause charcoal ovens,which with work us Ericthat told the outsour involving process of a contractual because perhaps employment, generated not Fibria has post. vate a first-aid to reno help not did Fibria of aschool, renovation in the help not did Fibria companies. the on mainly but government, the on in region, our authorities public the on directly We provide. depend companies local the what on 90% almost to community, the tomore lives listen which needs more. It to "So, participate needs Fibria education: and in health community, collaboration such as local of the that couldtodevelopment contribute the actions other and generation employment about collaborate, Erik is also scathing that’s if possible." can we factors, knowledge, social for the As to having the in that, addition so matter. of the truth thistransparency the don’t we know We need activities, in the is harmful, since and don’t we participate eucalyptus that the and up see... is drying river that the We comments hear to community for transparent, the more thishas to and be environment, for the is done are planted, little trees fruit up, few dry to, many rivers used still but farmers thanthe reserves more leaves company actually The reserves. as left are many there plantedareas, environment, of the "Regarding Erikthat, commented question the matters, ronmental envi about community. Asked local the and Fibria between relations neighborly to contribute that will good situations and information to disclose that an opportunity recognizing this was requested, to in - - - - -

  Fibria | Sustainability Report 2011 91 92   Fibria | Sustainability Report 2011 system”. Juan shows concern over issues relating to water, but believes that Fibria adopts an ethical attitude in relation in relation system”. attitude ethical an relating to water, overissues concern adopts that Fibria shows Juan believes but low.whole greater. is Yet profit is very the the with is eucalyptus the problem isn’tthe Fibria with this; blame for to of alot time, of alot money, spend profit make and the but investment, abig off go you nowadays, cattle dairy or beef many. so not but plantations, isn’t other This Fibria’s cattle, see fault. thinking about Iwas Ialso If eucalyptus. more and eucalyptus, and farms today, tofields the Igo eucalyptus, if anymore, but see I don’t exist they if it’s as not Nowadays, cattle. maize,plantations, see cane, and small,intosugar coffee Iwas isn’t. it go fields other Iwould the the on When but good, it is hand one On incentives. and offer owner go the to they else or and farms, of fields our number large a have leased [Fibria] “They partnerships: forest about points negative and positive both mentions he but business, serious and a being correct about cares that Fibria shows and is important certification that forest believes Juan Fibria. of coming in because also suppliers with jobs, indirect and tellscompany brought us thatmany the abuse. He direct alcohol relating toand drug for problems are in custody parents whose of adolescents children and a band with Since 2001, activities developing Paulostate). has been he (São Branca of Santa municipality in the Institute, lopment Deve Branca Asa of the arepresentative and Jr. Jurado Project Jimenez Juan is Batucando amusician, of the founder (12/10/2011) state Paulo Juan Jimenez Jurado Jr. / Batucando –Branca Project Asa Development Institute, Santa Branca, in São right”. something that it’s doing fact by the is offset slowly, more this comes slowly. too money Well,the comes although in money my think opinion, the they but to work, able to be people other for up these drawn have been projects money, it’sit’s anice not easy Some way but to work. in charcoal, deal and some example, For aren’t members. others community, in the the whereas ten members about are There association. of the is a member “Here in community,our ofnot everybody charcoal region: in her production illegal the about opinion to her give in midst”. our interview of the settled and here advantage took Ivamara came since alot Fibria have changed Before, didn’t we for association, havemes. us in Ithinkthe thatlives, any our So of this. to have we at eat mealti food homes, have we own our Now changed. here, everything for then and us, plant nursery builtthis now, not But creatures. They into lives. our venomous came since Fibria all these of snake nests, wasps bites, facing risk the vines, to into collect out to forest go We the used brooms. making from came sustenance our by; got Before, we just production. our in confident take that debt, on can we way off, to it’s paythem different, now but no had we as didn’t we have ago “Untilany income, any guaranteed couldn’t 6years we debts, assume community: her in Fibria’s from resulting changes social activities positive the Ivamara emphasizes benefits. environmental yields also and community in the income to generate has helped activity This association. by the produced of species native seedlings municipality in her hillsides to reforesting has made Fibria contribution important the highlights Santo state, in Conceição Barra, da Espírito Producers, Seedling of Native Association II Angelim of the Oliveira, Santos Ivamara (29/9/2011) pírito state Santo Es in Barra, da Conceição Producers, Seedling Native of Association II /Angelim Oliveira Santos Ivamara Ithink that’s great”.springs; and streams rivers, from distance for correct planting, required at the standards the in accordance with all done was it that demanded planting, they the do who people the with together do they part in the when, “I remember program: in the to participants the company’s in the support believes but them, much about know doesn’t he said Alexandre requirements”. the is in accordance with Fibria’s asked that everything and about partnerships, origin When forest the of be certain can thatone so certified, to areas for be are asking the they that in business our see Ican because good, think“I it is very standards: manner, in asustainable certification that thisis done the - - - - singly fought over”. Julio also mentioned that Fibria could invest more in the preservation of the Atlantic Rainforest and Atlantic of and the foughtsingly Rainforest over”. preservation in the more could that invest Fibria mentioned also Julio increa be will land the growth population the of alot for land planting, with and is acompany it that needs because of alot Fibria, demand will population the general, well. In out is working isatit not all bad, Ithink thisaspect lands. Fibria’s could use they so something them giving and eucalyptus the amongst in planting cassava experience some had that they Iknow them... settlement, with for the As of kind partnership in some plantcontrol this, eucalyptus, that bodies the or government federal by the permitted was it if wanted and could even, they if they at thisand look another company took the if idea agood be Ithink would and it lands, of their demarcation the to obtain managed have Ithink that they now hard... fullyresolved. not is still issue very was Indian The that video Ithought Indians. the against protesting in Aracruz, demonstrated employees The them. against turned was population local the and lands their of demarcation fighting were the Celulose. Indians for of that Aracruz wasn’tBut The time in was the it Fibria, harsh. very was peoples indigenous of the “I case think the communities: toIndian the in were relation comments king like would company. the to stri visit tells and of us alot people most His to regard processes with community the and company the between things”. communication these to achieve able been effective of alack more feels he says Julio have not Iwould else, perhaps somewhere to gone Ihad in. live If Icame to place the to contributesomething able here. Ihave been Imoved Today, houses, when three truck, in adump Iown Ihave toarrived studied, God, be thanks example, I, for outside. from people brought in power “Economic Fibria: by generated benefits to social illustrate the example apersonal uses He greater comfort. and owners company,by the of home number increased the such as of brothels have arisen. Julio emphasizes were manyalso brought that, benefits although there are negative aspects, anumber for while Fibria, directly work nowadays that not many and people labor all the didn’t town absorb the but of jobs, in migrated search population [rural] of the 60% around when Riacho to do Barra tells came us that he Julio made”. could be progress where are things] community. in the Ithink [these collection garbage selective is no there and sidewalks; the on trees the even nor forest, riparian replanting about concern is no there into river; the is released level.” it’s all at atolerable but waste the “Of us that, told water that he is used, the to regard water resources, With ... isn’t odor, the Riacho that strong boats...iseven also do in of there Barra their here noise, But which matter the and of to movement facilitate the tried has even Portocel out. get At to out can sea. tide, high they boats their in getting taken forplantingup of the eucalyptus... been there’s and too... water issue the encounter difficulties fishermen the has in his space municipality, “practically all that, the commented pany”. he sees he impacts to regard negative With to any com Ihave commitments no residents; tolocal the is only commitment My achieved. are things being positive whenever praise giving and necessary whenever things–fighting two the doing to make looking progress, always has to, one but when out speaking improvements, seek to always in order possible, as muchinformation as to obtain as so possible, as inmany as meetings participate and entities other and companies all the with possible muchas as involved is to get association According of the to Júlio, “the Terminal, purpose Waterway reserves. maritime the and Riacho do Barra the shipyard, Jurong Portocel, the such as of boards, anumber on sits Júlio Association, Residents’ Riacho do Barra of the president licensing. As environmental the monitors he and of Aracruz, municipality in the servants public of local union of the director is also He schools. in the conditions and education transportation, about Service Prosecution toPublic that complain the movements of life. population’s supports to the improving quality He aview with authorities and businesses local with dialogue in his involved municipality, seeking is actively - - -

  Fibria | Sustainability Report 2011 93 94   Fibria | Sustainability Report 2011 Her biggest concern relates to the planting of eucalyptus in areas belonging to the village: “We are concerned about about “Weare concerned tovillage: the inbelonging areas toplanting relates of eucalyptus the concern biggest Her so. do it to obliges legislation the opinion, her in because, of waste,treatment the regarding obligations panyits fulfills another”. one com that understand the we now and Luzia mentioned conversation, to have aserious necessary was water like So, tap? is the ofit what the out polluted, towater. that comes regard the is being river the if example, For with here moments tense the water.very of some the surface on been floating There fish have of alot dead with ruiningeverything, everything, flooding was it because floodgate, this opening them to had stop fight to community The floodgate. the to close battle aheated was there 2006, In impact. have we felt village. So acertain in the here of alot flooding has been there years that have in we some noticed And Comboios. Regência, near is acanal there “A but when, Luzia says, water resources, on here, created was exactly to impact regard Idon’t the canal know With is ours”. here around is preserved that village compare, and only the atregion our to were we if look because it, havewe to here. lose Weafford cannot what more area, appreciating of the recovery the to implement in order partners to seek is aware thatis necessary it itself community the and discussed, is being of recovery issue the is developing; view adifferent by“Now, little, little discussion: are under that proposals says and community in her conservation for forest of lack proposals the regrets itan impact”.had couldn’t fishing; who had to way ofreturn to old life, the those Luzia planting harvesting, and while left, elsewhere job a arrange to able were who those agreement, existing an finished, under projects the When up fishing. given already and had fields in the working stopped they payments, daily receiving and working were and there, originated which up, growing were projects, the had children who their and farmers, were who grandparents, Since our crops. planting easier,enough money, with it could that buy getting things were stopped that they they improving, was situation food that the to see good... families started the Once very that has been in education, also in agriculture, just not sense...They but in ageneral areas; in various ensure sustainability our support have provided food, better, to buy able to be to organize able ourselves were we projects and, the through community the helping organizations non-governmental positive. had Wealready been have “They brought the by company: benefits social other”. each to understand the confirmed trying Luzia also sides friendly, both is always with dialogue the contrary; the On hurt. a response... getting up end anywould Wehad intention never of arguing in sides such away that both without are left we not aresponse; with back there, come it then take situation,discuss to they the listening, are open really relationship”. “They community: indigenous the with Fibria’s dialogue regarding to Luzia went on discuss posture adifficult was really It Tupiniquimthe for my ancestors. speaking for many years, is here. We to had identity our deny can find you the region only the because particularly Tupiniquim, peoples, indigenous the of survival fight very the for individuals... as is the lives our on cause Our impact strong Socially, struggle. avery our thishad didn’t understand who those prejudicefrom and muchdiscrimination suffered We Indians process. long avery was other each understood dy everybo and completed were studies all the where topoint the to? Getting belong really it did who so ours, was it said we theirs, it was said The company fightownership. over land abig even was there and sides, different the understand in forthat way... asking help were Indians the why to seeking studied, was to understand situation really The didn’t try and negative thisas company saw the representing people of the “Some weren’t understood: community indigenous the of demands the at first, that, says She expected. that was success the achieve not did matters environmental some that and location, in the to develop projects best the be would what about muchdiscussion not was that there admits the community,to but company have the brought benefits with in partn - - - or 6 years. It is a different town. Everything has modernized and improved a lot, to serve the large population that mo population large the to alot, serve improved and has modernized Everything town. is adifferent It 6years. or 5 last in the considerably have which changed façades, store in it the see can you commerce; active town, with a busy is that todaythisis fact to things The us. company has brought these the and to and work, to study in order town the to have to used leave “People others: among of areas technology, in apiculture, the handicrafts, and projects social fightrights”. our also for town, can of the that we, residents in the Fibria’sto drew attention Nilva investments major so done, future. in is being the it on, how damage is going Ithink have we what environmental tothe keep with up or have would been, consequences environmental the Fibria’s what Idon’t know region, in the of this process, work hadn’t kept community track the population, the if also, because at thisissue to look Ithink is necessary it is correct. community, hearings”, inthink“I public certification certification: forest to about access had including she information thisto the have they explained And have environment. overthe taken of alot care They resolved. be should they how is which according to standards, everything to resolve has tried and region for and the municipality for the best its do to “I company has sought the think in that, truth, generation: employment and development to involving Três Lagoas, benefits company thathas broughtthe enormous believes in She a painting studio. works and than 20for more years Cultura da Sul Casa state) of do the president Barroso, Grosso (CulturalNilva Center), in Três(Mato has lived Lagoas (14/10/2011) state Sul do Grosso Mato in –Três Lagoas, Center Cultural the of –President Barroso Nilva of in taken thisarea”. well care is being Ithink everything So treated. and after our water, with looked well which is whatsoever problem no is There find drinking. for can you best of the water is one our and water for collection, team responsible dedicated and qualified community.view, is ahighly the her In “There from resistance acertain despite company’s the from arising activities, issues relating to environmental any problems they’re now all unemployed”. plantations; worked in those hadn’t that she municipality, in her noticed, said Nazine who people for aren’t the there jobs even labor, hiring of specialized the now, but afterwards, with, tolong begin so was there trees, planting of the the with slightly,shed because according to people, to other Ihave talking what heard dimini actually work the fact, In in thisrespect. of frustration adegree was There industrialization. havewould been since didn’t it And occur, phase, employment. which of generating second no was there possibility company the and coming of surrounding the the community in the a smallmill. ismunicipality, only all was this It expectation there and of aresult the as of employment, togeneration regard the with municipality in the expectations certain were “There company’sAccording tothe municipality, to fruition. in up intention her toNazine, since came set that intention never their too”.families of thisbenefits impact social And rightpath. the related the to factor negative a emphasized She on placed are being company, of the adolescents children and Ithink these so support the with locations, inand other here takesplace development thisone. such as The in includingplaces environmental, of alleducation, kinds providing week, for the during cared being hours... 100 We adolescents children and school have their about for outside cared children being the in, with believe Istrongly which work, thissocial out to carry me given that was opportunity the place, we grateful be havelotpossibility, a to the the first company “In to for.for citizenship: part, own for my speak I encourage and the community benefit by Fibria supported that projects said Sul state), do Grande (Rio Grande Arroio Council of Children Municipal of the Rights Ribeiro,forTeenagers president and the in Bitencourt Moura de Nazine (24/10/2011) state Sul do Grande Rio in Grande, –Arroio lescents) Ado and Children of Rights the for Council (Municipal COMDICA of –President Ribeiro Bittencourt Nazine community. indigenous the and company the of both development favorable tosustainable be the can dialogue - - -

  Fibria | Sustainability Report 2011 95 96   Fibria | Sustainability Report 2011 understands the local needs and problems. He considers himself to be very active in the community. Carlito believes community. in the Carlito believes active very to be himself considers He problems. and needs local the understands council, he town of the so amember as served and than 20 for more years Sul state) do Grosso in Brasilândia (Mato has lived He areas. in bythose Fibria developed philosophy, and work the eye an on keeps and eology, anthropology Carlito, in or Dutra, his community, Santos is known dos he has as abackground archa in sociology, Alberto Carlos (11/1/2012) state Sul do Grosso Mato in Brasilândia, Dutra, Santos dos Alberto Carlos it”. against that goes is agroup there so supportive, is always Fibria are we different, Because isolated. to related charcoal. alittle feel Ithink they devastation weird some is there right here Because plantations. [Fibria’s] their to damage try and superior charcoal. alittle feel Ithinkwith they work and go farming, of alot people but some to do association, the to join people to get try we and in agriculture work we community, in because the there is arisk, there "Nowadays, association: in the toinvite participate them to to make tries he contact when at risk himself is putting he feels he says Osmar region, in the practice a common Ithink But there’s of alack dialogue." quilombos. and lands of Amerindian charcoal the workers, cation regards As demar the about this, about Bahia, we're having discussions in southern Here always problems. of the one It's slaves]. of runaway [descendents toquilombolas regard the "With out: points and communities, relating to traditional matters in conferences on thissubject.” up Ibring participates meetings Osmar in the to company. the Iparticipate Whenever this eucalyptus plantingsupplying and the doing ones that of or the company’s it'sthe if Idon’tdecision, know point. the keep pressing always will thisand about Ihave opinion my plant own springs. around network, electrical the along plant road, the there. are producing Plant along who tofarmers the shown is being disrespect project, this partnership conference where, atwith the in Vitória, spokenabout even Ihad which areas, are some There thissponsorship. about "I alittle know producers: sponsored of some attitude the criticizes Osmar ment.” partnerships, to regard forest With the care environ of good taking they are know we is there certification if and certification, is no there environment of take the they care that unless see we because great, It's it. tells he us about and is amonitor Ihave who it. uncle an on working are always who specialists are there technical because this, about knew this"I initiative: and supports fied company is certi that the acknowledges He areas. in these out carried that is being action about informed population to keep the seeking always questions, social and environmental about is concerned that Fibria believes Osmar state). (Bahia in Alcobaça Association Ribeirão of the president and farmer (family) is asmall-scale Santos dos Bernardo Osmar Bahia state (28/9/2011) in –Alcobaça, Association Ribeirão the of President and farmer –Small-scale Santos dos Bernardo Osmar takeoverthisin town”. our of alot care region in this environment for the are responsible who those And environment. the on have any thatdoesn’t it impact believe Inow to so us, explained been has already toriver the returned then and mill] the [by river the from water is removed thatisn’t it towe’re like think see like Iused Ican in way adesert’. the that at toliving all. up that. Now end The going of 20future water adayin and the consumes liters tolike things aeucalyptus hear used ‘goodness, Ialways things. these water. about tocommunity, up know the that they about to so open idea wrong Ithink why is good the it That’s havewe got example,] “[For issues: of environmental to take view a mistaken many residents of has led information standards”. ethical high shows that lack transparency believes with Nilza on. Ithink that working is going what know always we newspapers, the media, in the or in hearings information, either the company. at the is done disclose They that is agreatthing. We to have alone everything access work of their transparency Ithink maytever it that be.the So on, wha that is going everything tocommunity on the passing open, in thisway. are very they responding be Because to for me motive ago - - - - - imbalance in society and in the economy, even the family, because of the decline. For me it was truly adisaster." truly was it economy, in and the me family, For the decline. even of the inimbalance society because Pedro take myfor word it... desired, to be something this was There left side social the and outsourcing company started there, The things have changed. Ileft well, time since me the since that time, serves 1990 from to now, my if memory to Today, make But home. has house, managed has hisadecent thispopulation. worked own there led who everyone in time, point bankrol to up acertain that Aracruz, was happened What good. really was it worries, no everything, had covered you, care, yourchild, which health yourfamily grade. good Ihad to up fourth studied only who for someone today salary plan, abad that wouldn’t be company medical the on was and minimum the wage 5times about earned I eucalyptus. of the cutting in the for Iworked eightyears, there company gave us jobs; The marvelous. was side social the Iworked at Aracruz when Iworked there; because experience, thisfrom Isay and at Aracruz, pany. side social The in com change the with place that took change social the regarding thisto to someone, say dying "I’ve been provide: to used whatthey to compared benefits, and in according income which, to to him, adecline companies, led to local provided services of the outsourcing the regrets and of employability changing pattern at the looks Pedro issues, social make will bigger." even they if Idon’tthem know harvest, bigger. every to regard are Ithink getting that with With all areas springs; from the amount a certain withdrawn have already They are doing. they what about are worried they thisimbalance, now but us greatharm.So, caused it havecaused also manufacturers alcohol-ethanol the plantations; eucalyptus from producing water, companies the drink and the there to only go Not Iused here; swim. thisriver from water. are without communities to is ugly; Previously, water drink situation the Iused see can they because are worried ... environment. in imbalance the a major "The company caused residents) today (the issues: environmental regarding residents, local of other those us ofand told his and concerns, of companies, arrival the following landscape, of the physiognomy in the changes has seen Pedro thananyone. thisperiod, During areabetter the knows and Santo state) Icommunity, is 51 Silvares (Espírito in Angelim ConceiçãoBarra da in the lived Batista has always old, Pedro years state (11/2/2012) Santo Espírito in Barra, da –Conceição Itaúnas Icommunity, Angelim the of resident Silvares, Batista Pedro horizons." own its in keeping with more contribution, adistinctive making forward, leap takesaqualitative that Fibria demands, moment thishistorical requires, community the with Ithink thisrelationship So culture, literature, need research. art, need "People greater importance: given could be culture traditions and for local process."is a mutual learning to community, in the relation Carlito support Also and relationship that the emphasizes it suffer; also will it suffers, community the if too. So community acompany of the became it here. Then people of the identity the labor, adopted local also it here, so used it settled it when "Because challenges: the shares and community of the crisis." part this economic has become that Fibria community, the believes he with relationship the Regarding in light of community the with relationship havedistinctive amore bit, ... alittle things further bit modify alittle go Ithink could it but entitlements, all their pays It drivers. planting isunemployed over, the Once forty have you thirty, for planting. particular aservice company outsources the example, For is aproblem. crisis, of economic issue, at atime "I of crisis: think this in times insecurity creates which of services, tooutsourcing the in relation company's position the criticizes sociologist The management. towards forest company's the attitude acknowledges and isit done how knows thatso the community disseminated, better be could certification in the applied indicators and criteria the companycredibility. enhanced the However,bring auditing and validation that the thinks he that perform bodies the since it is important, believes Alberto Carlos services." certification, to company and forest improvethe its Regarding with partnership its from to benefit - -

  Fibria | Sustainability Report 2011 97 98   Fibria | Sustainability Report 2011 certain extent, was not expecting. These are the impacts that occur, company is aware the of all thisand Ibelieve impacts but are the These expecting. not was extent, certain town, to thingsthat the a for all those hospital, at the for schools, properties, for rental demand the increasing thereby of areas work, to municipality, our these regions brought were in other to from supply that manyconsider people also We can in region. farming our predominant livestock with activity, another was theirs rural properties; on living to accustomed already for people people, local for the of custom achange was This production. planting forest and day to work, travel every into come They town. and the countryside the leave "The people are taken: right steps the to make sure efforts for orchestrating tool important an as Fibria recognizes but authorities, public the with lies services for these responsibility that the believes He services. education and health for public demand toincreased in regard the especially region, in ofthe Fibria deployment the about Welfare for the is worried Elderly. of the José Clara Association Agua over the Chamber presiding such Club,the as of Commerce, Lately, has been he Freemasons. the Rotary and the in organizations participates he and 20 years for at least Sul state) do in Grosso Agua Clara has lived Horácio (Mato José (4/1/2012) state Sul do Grosso Mato in ra, Cla Água Elderly. the of Wellfare the for Association the of Chairman Nenartavis, Alexandre Horácio José fruitful." be that thiswill see Ican bit. we're at least alittle but ends, talking many are loose still there because friends, being not – to enemies being on from talking,we moved havestep. areWe already first the taking better. it'sfor the we're what That's I hope say thatare we the to company can fighting here. I thisnow areain for So level... abetter reach and talking. is now Fibria ahead to go have we everything tunnel. of And the end light at the there Today alittle going. to get see Ican are we starting by little little And sawn. already came it and wood, gave us the They another. tocommunity. the one thisshed that donated them was It to understand starting having adialogue, already are we nowadays arelationship, And to talk. have we started now So, in thisrespect, for me, for just not everyone. but thatis it is my it desire And too, us. to just not community. our for me, forothers all but the Not improvements bring that will association in the for in... us to work well. We out left have they work thatwill many it which projects Ibelieve areaan of hectares, 35 defined They things. to to certain up them, bring close to get able were we Then are talking. they to communities, out the reached they and talking ayear, ofIthink Fibria, that after entry started in we late 2009, of alack water... experiencing also were we alid–because the cover this excellentwaterIthink with that with then, to need for awell usjust dug –we company has already The rightfor everybody. are just criteria the if to agreement, later, extended subject be can which for to. us to work contract, adeadline There’s with a10-year right, just everything environment, the beginning... at the with only dealing are we still are rules There because yet, are atWe not 100% still part. company is fulfillingits The we’re But started. getting project. thissustainability Program], Territory Development [Rural this PDRT with up came they And this assistance. this support, that we needed forwere us; problems the what needs, people’s the talked we about and quiteof alot people, with ameeting project; the them showed we and tors, 2011] [early then direc Fibria some with here down here, sat came till now, community] [the It have things changed. "From have taken in changes place thiscontext: positive admits and tothissituation Fibria change and community the [2011]." year last until went on early he’d one, thisstruggle and another of buy and go efforts the acknowledges Pedro chainsaw, the take and up away, it drop it pick would we would they and ofA lot confusion; guy the ask would we fled. people the and them, on police for, the go put they would responded, eucalyptus they company’s. the So whose to make – went off they charcoalhave and went toplantations income,into an sell they and company’s the eucalyptus wanted to leave; longer no countryside in the lived who people The communities - - - looking for a better path to path follow." for abetter looking forWe improvement. are is room there but yes, "It is good, improve: still can situation that the Even so, believes he municipality. in the invested and government local by the that are levied taxes the such as lives, he where community the to with." company that has the brought benefits couldit form a believes partnership is who,who and who José to say. early is too it toout but find done, now, Right be still areof alot that things can company there is trying and the activities, has some It act. will it where to see looking itself, nothing'. thatis positioning it that. Iunderstand say Icannot 'it to did say early is too It in this. to participate thatwants it impression the here, is giving it and diagnoses participatory to conduct hard to indicators, "The discover company has tried says, José problems, social of local to eradication the believe." we that is what all together, is best; forests, eucalyptus company's the the contribution with Regarding allied natural areas, toprotected that the wildlife, I believe but are not attractive forests planted eucalyptus that the is said (...) was. thanit is more, it environmentally, What that, Isay So, company’s is in it the is better it where areas reserves. the and APPs the both are isolated, unlike that they today, situation see Wedisturbed, the can are isolated. they where fauna the so is them, in with go cattlemen and reserve in the cattle the put farming, people the livestock before. With wasn’t It like isolated. and this off that are closed natural reserves Areas, Preservation Permanent conserved see you into water. the almost now today; Not extended pastureland The Areas. Preservation Permanent or forests riparian had is operating it where areas few of these Very is now, pastureland. to be used it [Fibria] requirements... it Where the company,of the certification also and the conscientiousness thisreflects Ibelieve erosion. see not do you care; takesevery It operates. Fibria to where areas apply not that does ruins,but that forest degrade, tell that forests which are myths for thanbefore. There cared is better it better, speaking; thatis now it say environmentally Ican forest, Fibria became it and ranching was pastureland and there where arrived, Fibria that where say I can and region, in the perties of alot pro know arealtorand as work -Ialso by Fibria of forests establishing here. The is happening what with case We are aware that thisisthe not myths. are all these there soil; ruining the erosion, causing areas, degrading forests the about is muchtalk there environment, the issue, for about us to talk environmental the "Even address you when by ranching and farming: degraded ofareas brought the by company, the recovery with benefits the acknowledges done." is being something But things. other do José can environment, one the away; Regarding be I think would it have you requirements. now our want; to we what want to meet showing at least investment, agood be think would it in training Fibria? to I supply to wantus, toparticipate supply who them, ask and businesses Agua Clara, local the call "Let's to go business: training for the Fibria of local with apartnership suggests He for products. demand the meet to notare qualified thatthe suppliers believes sincehe benefited, not has still business claims he that local but Fibria, in municipality." our of infrastructure arrival since the municipality in have the that many notes occurred changes José of the expansion the improvements, for –to infrastructural call region in the power – acompany like that has political power, power its use thatwill political it even but of infrastructure, burden the bear thatwill it Not solutions. seek will the scope of its activity. of its scope the by expanding initiatives education of socioenvironmental logistics the facilitates which NEA has a mobile Paulo state in São Unit Jacareí The programs. monthly to their communities neighboring from members welcome –and (NEAs) the Education Centers – Environmental have fixed facilities Units of Fibria Some activities. and contests environmental and social of organization and youths, and children for lectures environmental projects, interpretation environment involve stakeholders primarilyInitiatives external teacher with training on environmental in education public schools, Responsibility. Global and Societies for Sustainable Education Environmental on Treaty the and (PRONEA), Program Education Environmental National the 9.795/99), No. (Law Policy Education mental Environ National the compliant and with Brazilian of each region reality the with aligned programs diverse through initiativesvariousFibria education socioenvironmental undertakes internal aimedat both its audiences and external education Socioenvironmental - -

  Fibria | Sustainability Report 2011 99 100

  Fibria | Sustainability Report 2011 from a survey with educators, the the educators, with from a survey Sul,Santo. do According Sul, Espírito and obtained Bahia Grande do to Rio data Paulo, Mato Grosso Gerais, Minas São 2011, In Brazilian Syllabus requirements. monthly,of copies states covering the aprint had of run 70,000 JornalEco the to the adapted and year commemorative Nations United the on are based themes content newsletter, whose of the the to support version aspecial receive teachers version, thisstudent’s as well Brazil. As Fibria’s around across ted Units and conscious consumption distributed free of charge to of charge 5 free distributed consumption conscious and JornalEco www. on by Fibria undertaken activities education environmental and social the about more Learn Fibria’sFibria’s neighbouring Units. communities Training Environmental in local is conducted Program faunaspecies. (“Animal flora and local (“Tree on information bring which Day”), Árvore da Day”) Dia and Bicho do Consciente –Dia of consumption (“Conscious Consumption”) impacts the on information and tips –with Consumo bulletins: news online three Sul receive State, do Grande Rio employees Unit, Forestry At Leão do Capão training. or induction through area environmental the from information received 2011, Paulostate, In underway. in São are already also Unit, ployees Forestry Vale the from Paraíba do employees 3,646 in 2012. Paulostate, São Unit, Jacareí at the fullyimplemented be will training to programs em model Monthly This region. the of specificities according to the selected were EcoCiente of the topics newsletter, while distribution and training system same the PFA the in 2010, program joined Sul state do in Três Mato Grosso Unit the using achievements, Lagoas Unit Aracruz the by Inspired into practice. principles conservation environmental putting are actions and program the in addressed 2011 of result the issues The the about attitudes. nable are knowledgeable 69.5%, that was workers showing index sustai and environment the on containing questions aquestionnaire through year every is calculated index awareness An Unit. at Aracruz workers forest to 8,300 around course in the learned knowledge the disseminated employees 2011,In These second. and the in semester employees 171158 PFA first the in the program attended employees sessions. training the –EcoCiente newsletter amonthly distributes Fibria meetings, in these employees support (DDMAs).To Environment Dialogues Direct called meetings monthly teams through work their among learned they what is to disseminate task their and multipliers as act workers These since 2004. employees for forest courses training half-yearly has provided (PFA) Program Education Environmental the Santo state, in Espírito Unit At Aracruz the multipliers. as to work to training Unit train atemployees each education environmental and lectures of is aprogram There management. impact environmental and conservation to biodiversity raisingawareness on their are focused initiatives workers, contract and employees of up forest made are largely which internal stakeholders, For and features were considered interesting and were frequently used by students and teachers alike. teachers and students by used frequently were and interesting considered were features and – Is a monthly Fibria publication to raise awareness to the environment, conservation of natural resources of natural resources conservation toenvironment, the to awareness raise publication Fibria amonthly –Is JornalEco is used in the classroom as much as teaching materials, and all the stories stories all teachingmuch and the as materials, as classroom in the is used th and 6 and th grade students of city and rural public schools loca schools rural public and of city students grade – containing the issues discussed in in discussed issues –containing the .com.br/rs2011. fibria - - -

national events in 2011. events national FSC in the September, In company participated the inter important two other attended Fibria systems, certification of forestry development the to assisting aview With countries. several from NGOs and tants Stewardship Council Forest the by certified of companies representatives 90 some convening, brought together which Solutions and ds In April, Fibria hosted part of the FSC of the part hosted Fibria April, In including Fibria. companies, and NGOs Sul,do together bringing of Mato Grosso tostate the – Brazil came Dialogue Forest October, Paulo. The In ofSão and Bahia far and south south Santo, –Brazil, in Espírito the held Dialogue Forest forums of The regional in the company to continued participate The and forests). fibers fuels, (foods, 4Fs the in producing forests of the role the and trees; modified genetically them; affect that will to measures peoples by consent indigenous free,prior and informed in aclimate agreement; mechanisms change REDD+ landowners; or communities by local that are controlled forests 2011, TFD.During of the in investing areas: five addressing co-leaders sessions of dialogue anumber held TFD the Roxo, two of the is one Alberto Carlos Corporate and Relations, Fibria’s for Sustainability manager institutions. general multilateral and communities indigenous NGOs, companies, forestry involves and key on issues forest discussion motes that pro entity an (TFD), Dialogue Forest in The company’s is the participation level international at the notable Also group. working the of co-chairmen 16 from to membership 26. two of the Fibria’s Penido, is one its Luciano raised and chairman, agenda José new an ambitious has developed which (WBCSD), Council Development World ofBusiness group the for Sustainable working (SFPI) Industry Products Forest Sustainable is in the involvements important company’s of the most One www. at: full in seen community, be can business the and society civil between cooperation of result unprecedented the document, (www. –Brazil Dialogue Forest to Congress by The presented was which policies], public Code [see: Forest new country’s the in 24 2011, In of position them. executive to in regard proposal a16-point up in drawing company participated the aconsulting or holds and in 125 similar and bodies, groups working participates currently Fibria associations, forums, Dialogue with NGOs and participation in forums (GRI 4.13) representatives of the company, local communities, clients and socioenvironmental institutions. socioenvironmental and clients communities, company, the of local representatives comprising 245 involved company operates the participants, where regions the within relations sustainable veloping 2011In at de event aimed Santo. The Espírito in Vitória, Dialogues event organized ofConstructive the also Fibria Fund for (WWF). Nature World Wide the with in partnership dertaken], un main commitments [see: (NGP) project Plantations Generation New in the participation its continued also Fibria https://www. at: recording video the [see internet overthe live transmitted company was in thisforum, the which Fibria’s Penido, represented Luciano chairman, José emissions. carbon in reducing experience their described, international corporations of leading representatives in which 2011, Forum Global (CDP) Project Disclosure Carbon event in the highlight Fibria’s was avirtual Another participation Switzerland. Montreux, in held (PEFC), Certification of Forest ment Endorse for the Programme of the Dialogue to Stakeholders’ the arepresentative sent it in and November Malaysia, dialogoflorestal dialogoflorestal ® (FSC .org.br), acting on behalf of local forest-based companies and socio-environmental entities. This This entities. socio-environmental and companies forest-based of local behalf on .org.br), acting ® ) [see: http://www. ) [see: .org.br/legislacao/codigo-florestal. ® Certified Plantations Certified andLocal Communities: Standar Challenges, Activities, fsc cdproject .org/?id=1182], along with environmentalists, academics, consul environmentalists,academics, along with .org/?id=1182], .net/en-US/Pages/cdp-global-forum-webcast.aspx]. ® general assembly, which took place in in place took assembly, which general ------

  Fibria | Sustainability Report 2011 101 102

  Fibria | Sustainability Report 2011 social responsibility social of their assessment 410 following 10 and suppliers, rejected were 105 restrictions approved, were with approved were increased the percentage of suppliers evaluated for human rights criteria, as shown in the following figure. following in the shown as criteria, evaluated for human rights of suppliers percentage the increased has gradually Fibria evaluation. next of the plan, in advance action according to agreed an adaptations or changes tion Committee, whichdecideswhetherthatsuppliercanbeacceptedforsub-contracting. 2. Suppliersthatarerejectedmayreapplyforapproval atalaterstage, butiftheyarenoteligibleasecondtimemustsubmittoanevaluation bytheHarmonisa - • Suppliersofservices. • Suppliers(clients)ofnon-operational items(waste, scrap andsimilar)waste processing(internalorexternaltoFibria); • Suppliersofexclusivetransportation; • Suppliersoflong-terminternalservices(industrialandforestrysectors); • Suppliersofraw materials, inputsandpackaging(industrialforestrysectors); 1. To beaccreditedasaFibriasupplier, acompany mustberegisteredinatleastoneofthefollowingcategories: key hasaccredited 647 Fibria suppliers 9001, ISO such as 14001, ISO standards 18001,quality Conventions. ILO and OHSAS NOSA in international contained principles the and requirements legal to local are aligned assessments accreditation Supplier company's the damaging or reputation. creating liabilities product, end to its compromising avoid in order services) legal, labor, (financial, safety, and commercial environmental quality, workplace healthcare, services materials and audits and Accreditation below. are described initiatives These possible. muchas as activities of their impacts environmental and social negative the of reducing importance aware of the are made suppliers Furthermore, for workers' rights. of ensure natural and respect use improve the resources emissions, carbon reduce responsibly and practices environmental and social share and good to chain identify in order supply its with to engage seeks Fibria Suppliers documentation and records submitted by the company being audited. company being by the submitted records and documentation through are confirmed results All HR7). and HR6 Fibria's throughout forced chainand labor (GRI childsupply labor for children’s eliminate and to ensure rights respect seek evaluations These practices. social and health occupational as regards and theirsafety relations, labor environmental partners of practices, fiscal these performance practices, to take in into order account in 2010, process evaluation the supplier anew project apilot After established Fibria stringent measures in evaluating documentation. of more because restrictions with approved or rejected of companies percentage in the increase an has been There C or an evaluation human concerning rights criteria include that suppliers major and sub-contractors with contracts of Percentage Number of contracts sub-contractors or suppliers evaluated or suppliers human concerning rights sub-contractors with contracts of number total the of out rights human concerning evaluation an of result the as actions other to subject were that or restrictions with accepted or rejected either were that suppliers major and sub-contractors with contracts of Percentage (GRI HR2) evaluations (GRI and obligations rights concerning human ontractual 2 practices. Under this supplier program, suppliers approved with restrictions are requested to make are requested restrictions with approved program,suppliers thissupplier Under practices. – By accrediting its suppliers, Fibria seeks to identify risks stemming from the supply of of supply the from stemming risks to identify seeks Fibria suppliers, its accrediting –By 1 , of which 525 were evaluated for social responsibility in 2011. 525, of which responsibility evaluated were for social of those Out 78.24% 2.62% 2009 797 10.34% 78.47% 1.218 2010 21.90% 81.14% 1.044 2011 any discriminatory practices or practices that conflict with existing laws. existing with that conflict practices or practices any discriminatory of prohibition the strengthen which HR2), (GRI by Fibria adopted Fibria’s standards the Code mention or of Conduct include suppliers with signed in Fibria's manual. contracts contained Program All criteria Road Safe safety portation trans and policies environmental with compliance are suppliers contracting for requirements Two mandatory other BM&FBOVESPA. of the Index Corporate the and Sustainability World) (DJSI Index Sustainability Jones Dow the Compact, Global Nations United of the principles and parameters and legislation on take evaluations into guidelines account these BrazUK the guidelines, toState. Fibria's addition In sustainability Caravelas and Terminal of areas Fibria’s in Portocel forested Bahia in the Aracruz, units operating to suppliers giving was 2011,During of atotal 6,740 involving Priority employees. of 27 sites the on sub-contractors, made were evaluations HR7) and HR6 (GRI is 16 years and 14 years for apprentices. This is strictly complied with by Fibria. by with complied strictly is This apprentices. for 14 years and age 16is years minimum the work, regular For age. of 18 is years work unhealthy or dangerous nighttime, for Brazil in employment for age minimum 1. The M for sub-contractors measures corrective and Preventive contractors and suppliers and contractors sub- for measures and corrective Preventive adolescents andadolescents youths children, of rights the promote to Measures labor child of taken abolition to tothe contribute easures

Conventions and Brazilian laws Brazilian and Conventions Organization (ILO) International Labor the by governed are conditions These bargaining. to collective right the and discrimination social integration of handicapped persons, and labor,protection forced relations, labor and occupational forrespect the environment, legislation, covering suppliers Fibria's of responsibility social of responsibility: Form for the evaluation social evaluating for • Form responsibility of social evaluation accrediting suppliers, including established and for contracting procedures Company suppliers: of • Standard operational accreditation responsibility of social Fibria's including evaluation suppliers, for requirements accreditation and contract covers that policy Company policy: accreditation supplier • Fibria form contract • Fibria All the measures mentioned above All the measures mentioned above 2009 labor child using not are suppliers that ensure to order in audits • In-situ plus the following: 2009, in taken measures the All All the measures mentioned above All the measures mentioned above 1 labor slave or forced labor and 2010 labor forced or labor child using not were toorder guarantee that suppliers 2010 in begun in had what place 2011,• In in audit to continued we 2011November in out carried was application A trial Fibria's criteria. adopt can companies that so plans action create to Fibria allows approach new This Compact. Global the including sustainability, of indicators current identify to is goal the social responsibility form, whose replaces that sustainability evaluating for form anew of • Preparation plus the following: 2009, in taken measures the All All the measures mentioned above All the measures mentioned above 2011

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  Fibria | Sustainability Report 2011 L 2009 2011 2010 (in R$) (in by purchases S ocal Total amount 2,758,656,803 2,950,364,527 purchases by 2,171,822,507 F ibria U of local of local sustainability strategies. The following main considerations guide the CCS the guide main considerations following The work: strategies. sustainability and company's the in growth accordance with of services for provision contracts selecting by carefully minimize risks The form. evaluation to goal is CCS activity an through identified as risks R$1.9 specific that pose million R$4.9 and annual an between amount with those and company's the internal operations that impact million, services than R$5 annual more totals amount whose more, or those years for for two Fibria exclusively performed services includes That critical. to be deemed services for permanent evaluating and contracts guidelines of establishing purpose the with Services ContractingServices Commission (CCS) R$9,366,515 of R$55,686,279, which was Avançado PQF the (16.8%) by Fibria’s for were purchases offices. regional in 2011 Três region in the made purchases Lagoas of amount local total in The tries. participating companies by the indus of large needs the in meeting interested manufacturers) machinery and parts automobile maintenance services, business, construction, resources, (human sectors industry several from businesspeople of local participation the with evaluation and 2012. services training, consultancy to vocational teaching given were of classroom hours of Atotal 838 January in Program Avançado PQF through in awarding 17to suppliers SEBRAE certificates and evaluation (IEL/MS) Lodi Evaldo Instituto the government, local the with up has partnered Fibria Sul state), do Grosso Três(Mato In Lagoas suppliers. among conditions working and status tax safety, finances, work and health environment, for the respect management, quality environmental promote programs Sul Both state. do in Mato Grosso Avançado) (PQF for Evaluationof Suppliers Program the and Santo state in Espírito (PRODFOR) Evaluationof and Suppliers for Development Program Integrated in the participants of the is one Fibria Avançado. PQF and PRODFOR as such suppliers, local promoting programs in obtained certificates and deadlines payment prices, to innovate, timeframe, capacity delivery suppliers), of local (promotion economy local the on impact provided, services of level arethe location, geographical their to addition in of suppliers, selection the that influence Factors by 8.7% suppliers to 2010. compared local from procurement increased Fibria Sul,states). Bahia Santo and do Espírito Paulo, Mato Grosso (São activities forestry and industrial its as states same in the located suppliers local with expenditures) total R$2.95 of its company (73% spent the billion suppliers Local of 2012, quarter first received. company the during the comments of review after by the implemented form,be will responsibility current social the replaces form, which evaluation sustainability new The it. for improving suggestions submit of and thisform version pilot an to complete businesses) large and medium 2011, November In process. accreditation supplier for form the tion 15 invited Fibria sizes (small, of various suppliers evalua sustainability a new is preparing Fibria suppliers, among of sustainability to reinforce order importance In the nit tate EC6) (GRI purchases from local suppliers local 1,543,963,643 1,254,774,470 1,492,353,578 Amount of Amount – Fibria gives preference to local suppliers when it buys supplies or contracts for services. In 2011, In for services. contracts or supplies buys it when suppliers preference to gives local – Fibria São Paulo state purchases from local suppliers local Percentage of of Percentage 85.22% 77.59% 81.31% – In January 2011, January –In Contracting Commission (CCS) aServices created Fibria purchases from local suppliers local 350,274,092 223,633,914 363,787,475 Amount of Amount Mato Grosso do Sul state Sul do Grosso Mato purchases from local suppliers local Percentage of of Percentage 16.63% 41.39% 37.15% purchases from local suppliers local Espírito Santo and Bahia states Bahia and Santo Espírito 1,331,802,582 864,419,068 455,835,016 Amount of Amount purchases from local suppliers local Percentage of of Percentage 64.92% 16.34% 79.81% - - suppliers interested in buying or receiving waste from industrial pulp production. pulp industrial from waste receiving or in buying interested suppliers site of the on audits conducts periodically Fibria criteria. company’s the environmental that meet suppliers to those waste donate or sell and equipment to To market taskforce non-operational activity. asales trial created thisend, Fibria                      Waste disposal discussions. the of the were focus topics The following activities. plansfor specific draft and goals into to groups fix divided were rate. Participants in English, asatisfactory sustainability on questionnaire detailed and along completed 71% companies, workshop, the attending 65 of the participating companies of the Representatives companies. three Chain CDP of the Supply results for the 2010, of about climateon change, cases learned the from sharing lessons presentations attended Participants processes. production in their emissions measure, carbon publicize reduce and 2010 thanat the to more in 2011, March Held for all participants meeting. importance the stressed workshop the Chain, Supply 91 –15 together bringing company's of the (CDP) main suppliers Project Disclosure Carbon the on Chain Supply (CDP) Project Disclosure Carbon negotiated. being are still for tenders calls of these Several all Fibria'sensure with compliance standards. to in order improvements suggesting and opportunities identifying of 26 for areview tenders, calls Commission began 2011, In make and recommendations. process CCS of the contracting the to discuss monthly members meet The the to: Tax and Commission seeks planning the Sustainability and Development, Organizational and ring, Human Corporate areas, Enginee Legal and Supply Fibria’s from Forestry, CCSThe Industrial, of representatives is composed strategic awareness: the priority given by suppliers' management. by suppliers' given priority the awareness: strategic initiatives. these are communicating suppliers how performance: reporting emissions. to their reduce of suppliers commitment the targets: reduction emissions emissions. their to decrease in order are doing suppliers what practices: implementation institute term longer contracts. adjustments; contract in stability greater promote bids; reduce the number of non-competitive liabilities; of risk labor the reduce the number of decrease broken contracts; functions. delegating alliances; andlong-term partnerships local strengthening functions; in contracting for synergies search promotion of alternatives; new promotion of improvement projects; penalties; and of bonuses creation proposals; commercial and of alignment technical for tenders; request the with together contract of amodel use transparency; cost tenders; for calls new prioritizing services; for recurring contracts of long-term termination result; end on focus – Fibria has strived to identify suppliers interested in using waste produced by the company’s by the indus produced in using waste interested suppliers to identify has strived –Fibria – For the second consecutive year, Fibria has held a workshop year, consecutive aworkshop second has held Fibria the –For - -

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  Fibria | Sustainability Report 2011 (www. of ABRAF websites consulted at ofthe Agriculture, be can Ministry by the in created 2008 was which this organization, of resolutions of the history The Producers). Plantation of Forest Association (Brazilian by ABRAF is represented Fibria chain of production, entire of the forestry Chamber, representatives Sector together Silviculture brings the which In Front. Parliamentary Silviculture the and (PDI) Plan Development Industrial the Chamber, Sector Silviculture are the sector forestry the about to debate sphere, main federal forums the open the In law. into enacted as text new the Code continue with will and to comply government”. Forest by the abided company has always The of at all levels authorities the and legislation the that“respects it states Fibria 40], page Code [see of Conduct its In -emendas-ao-codigo-florestal. of proposals can be accessed at www. accessed be can of proposals full set The document. the supported also sectors mining energy Companies and the from (PCdoB-SP). Rebelo Aldo Code, representative federal Forest new proposed of the topresenter the 16 delivered with ment concrete proposals, adocu produced group the for eightmonths, lasted which debates, and of meetings series extensive an After tions. organiza non-governmental 28 and socioenvironmental industry paper pulp and 32in the companies together brings that agroup in forums], participation and NGOs with Dialogue [see Dialogue Code, Forest organized by The Forest Brazilian new of the 2011, discussion the In was affairs company in by public the participation important most the participates. it in which bodies representative sector forestry of different a number through levels state and federal the on policies of public to preparation contributes the Fibria policies Public       Policy: Donations /Political Electoral are taken intotocompany’s pursuant the consideration, requirements following the such support, merit who didates of can choice the In administration. of public improvement and development to sustainable committed to be considers it candidates of campaigns electoral makes the but to financial contributions parties, political with links has no Fibria campaigns political to Contributions Government Because there were no election campaigns in 2011, campaigns election no were there Because year. the during donations make not did Fibria any political SO6). www.tse.gov.br Court, (GRI Electoral Superior of the website the on found listed be can they Policy; Donations company’s the Electoral/Political under Board, Executive by the are approved campaigns for election donations The commitment to the strengthening of citizenship and democracy (GRI SO5). (GRI of citizenship democracy and to strengthening the commitment development; of sustainable to fostering the commitment levels; municipal and federal, state at the administration to of public improvement commitment processes; donation in traceability and transparency total benefited; parties and/or candidates the of financial by the committees Courts Electoral the with registration legislation; existing with compliance strict abraflor .org.br) and the ministry (www. .org.br) ministry the and dialogoflorestal agricultura .org.br/noticias/106/dialogo-florestal-entrega-propostas-de .gov.br). - - - - tor Chambers can be followed through the website of the Bahia State Agricultural Department (www. State Bahia of the Agricultural website Department the through followed be can tor Chambers Sec of the actions The activities. agricultural other from results to how boost and region in the of wood uses multiple the 2011, In Plan. for tostate’s the Chambers, Strategic alternatives Agricultural/Livestock Chamber the Sector discussed other 2010, In region. in the the with together contributed, chamber the activity of the development for the of policies ration to toprepa contribute in the order state, in the chain of production entire of the forestry representatives together brings Chamber of Agriculture, State Bahia Sector the Silviculture Chamber Ministry of the Federal toSilviculture the Connected of ABAF. that are members state in the companies of areas the forestry the on data cartographic to them donated exchanging for and of information the body of thisgovernment disposal at the itself placed ABAF state. plansfor Zoning the Ecological-Economic of preparing process for the responsible Working Group SEPLAN the with in meetings 2011,In (SEPLAN), Planning Bahia Department of the invitation at the participated, ABAF state. the within of thisactivity development Chamber, is the latter of the Trade of Industry, Industry purpose linked Mining. and The to Bahia State the Department Chamber, of Agriculture, &Paper Sectorial Pulp Silviculture the and the through linked State toBahia the Department policies of public preparation in the participates company’sthe manager, Corporate Genofre. Affairs ABAF Leonardo overby is presided which of Bahia), Association Producers Plantation (Forest of ABAF is part level,Fibria At state the www. found at be front can of thisparliamentary coordination and constituents website. The ABRAF found the on be can positions sector’s Front the and Parliamentary Silviculture of the activities sector. The Brazilian the forestry regarding studies and information updated by providing parliamentarians the supports which in thisforum by ABRAF, presented as of sinceand formally 2011.2003 practice in of silviculture,existed defense has the with are identified is Fibria re who parties of different from a number Deputies of up Federal is made Front, which Parliamentary Silviculture The Association). Paper & Pulp by BRACELPA (Brazilian in thisbody is represented Fibria industry. &paper pulp for the policies of public posing Trade pro the and Foreign and debate that promotes Industry of Development, Ministry is aforum of the PDI The members that are dedicated to activities relating to the sustainable management of planted forests (GRI 4.13 (GRI of plantedforests management relating tosustainable SO5). the and to activities that are dedicated members of interests the Paulo defends São Florestar preservation. environmental and of forestry development in the interested that are institutions and associations organizations, as well as state, in the activities with companies forestry presents that re an organization Paulo), São (Florestar Association Producers Plantation Paulo Statechair Forest São of the the Environment manager, occupies Augusti, Carlos Forest João by its Paulo, represented ofFibria, São state the In Sul. do in Mato Grosso chain of production forestry in the companies important represents which Consumers and Association, Producers Sul Forests Planted do Mato Grosso of the amember as participates also Fibria relating tosubject. the cases court on in decisions judges the could help that outsourcing regarding information social and economic technical, to gather in Court order Labor Superior the organized by hearing in apublic observer an as participated SINDPACEL/BA of outsourcing, issue the regarding Also to sector. of interest the subjects on tolegislator the positions their presented union of the that are members companies the of this opportunity, advantage Taking such from contracts. deriving relations labor the and services for hiring outsourced conditions the establishes which of Bill no. 4,330/2004, sponsor (PMDB/BA), Maia by Rep. Arthur organized a presentation (SINDPACEL/BA) in 2011,Also of Bahia Companies state in the of Paper, Union the Goods Paper and Pulp, Paste Wood Cardboard, camara .gov.br/internet/deputado/frentes.asp. seagri .ba.gov.br). - - - - -

  Fibria | Sustainability Report 2011 107 108

  Fibria | Sustainability Report 2011 Workforce company’s andprocedures. the standardizing on policies ting efforts which included of the implementation Management the Cycle Performance and the Corporate and concentra Beliefs place in that 2011took the initiatives and Among health hygiene. occupational as well as benefits; and remuneration development; and recruiting involving processes the areaembraces Fibria’s Development Organizational and Human Management Personnel about 50% because of restructuring. of because 50% about 3. macroeconomicunstable scenario. force to due labor the in the adjustments were there area. Furthermore, forestry in mainly the Units, (SP) Jacareí and 2. organizations. buyers’ into the 1. tofollowing: is due the of employees number in the change The Percentage Total Jacareí Unit (SP) Unit Jacareí Capão do Leão Forestry Unit (RS) Unit Forestry Leão do Capão Piracicaba Unit Piracicaba (MS) Unit Três Lagoas Jacareí Unit (SP) Unit Jacareí (MS) Unit Três Lagoas Unit (ES/BA/MG) Aracruz Central Administration International Offices Total (RS) Unit Forestry Leão do Capão KSR International Offices –Brazil Total Piracicaba Unit (SP) Unit Piracicaba Aracruz Unit (ES/BA/MG) Aracruz Central Administration staff Company Direct E 2. Units sold in 2011. in sold Units 2. Paraíba. do Vale and Bonito 1. Capão 2. Units sold in 2011. in sold Units 2. Paraíba do Vale and Bonito 1. Capão Permanent outsourced staff KSR Sale of the KSR paper Unit and that of the Piracicaba Unit – employees were dismissed, resigned or incorporated incorporated or resigned dismissed, were – employees Unit that Piracicaba and of Unit the paper KSR of the Sale At the Central Administration, about 50% of the dismissals came about as a result of disinvestment of assets and and of assets a of result as disinvestment about came dismissals of the At Central 50% the about Administration, Since July 2011, about 200 employees were dismissed due to the review of the structure of the Três Lagoas (MS) 2011,Since July Três(MS) of the structure Lagoas of the to review due the dismissed were employees 200 about 2 2 mployees LA1) (GRI 2 1 1 2 4,749 4,718 Total 1,603 2009 1,148 229 558 246 879 55 31 – 9,518 4,929 2009 1,872 2,189 282 142 77 27 0 4,992 5,037 Total 1,647 1,214 2010 566 982 236 313 34 45 – 87.3% 3,496 3,477 1,021 1,515 Men 11,919 807 117 3,003 2,633 19 17 5,619 2010 0 0 353 182 82 47 0 2011 Women 12.7% 487 510 164 128 90 23 95 10 0 0 14,523 4,006 3,964 9,050 2,590 Total 2,726 1,679 1,149 2011 897 101 212 56 42 27 – 0 0 0 0 0 - 3. 2. area. forestry Unit’s 1. tofollowing: is due the workers of outsourced number in the change The By Unit By Over 20 years 20 Over 11From years 20 to Up to 3years to Up (in years) (in service of time Average 10 4to From years Basic education Specializations (post-graduate, master’sSpecializations (post-graduate, and doctorate) 2011 By age bracket E using calculated was rate absentee another formula. the years previous In rate. absentee the control not do offices international the and Administration Central The 2. (RS). Unit Leão do Capão the 1. Includes Aracruz U A 2011. in sold 1. Units 2011 14.83% is 2011, turnover in sold total the Units the excluding 2010 base, the 1. Readjusting gender By 2011 x100 total} /effective /2] terminations) +total ={[(admissions 1. Turnover T T Jacareí Total Três Lagoas Total turnover rate turnover Total Higher education education Secondary A reduction of about 300 outsourced workers at the Jacareí Unit due to a slowdown in plant activities. to due aslowdown Unit Jacareí at the workers outsourced 300 of about Areduction Standardization of the registration of outsourced workers in the SAP system, including suppliers from the Aracruz Aracruz the from including suppliers system, SAP in the workers of outsourced registration of the Standardization “Natural” change involving approximately 400 workers. 400 approximately involving “Natural” change (GRI LA13) (GRI ducation LA2) (GRI rate urnover service of ime nit bsentee 2 1 rate Administration (2011) 1 Central Central 26.65 Total 2009 8.6 NA NA NA NA K SR 0 1 U p to 30 years 30 p to 10.53 1,760 Men Piracicaba 905 733 913 Women 14.52% 13.18 13.18 28.83 22.50 22.50 2009 21.87 28.74 28.74 Men 1.03 1.03 2010 Women 0 1 Total 2009 1,426 2,710 6.65 169 675 231 419 68 70 Aracruz U F 8.52 rom 30 to 50 years 50 to 30 rom nit Total 2,775 Total 1,082 1,631 2010 2,179 9.97 238 631 801 975 Leão U Capão do do Capão Women 11.71% 50.21 50.21 34.22 98.49 98.49 22.64 26.53 26.53 18.52 2010 Men 3.81 3.81 nit 2,075 10.65 1,194 Men Men 763 521 137 830 536 936 Jacareí Jacareí Women 2011 2011 Women U 8.83 nit 308 7.02 100 203 188 66 36

60 59 Over 50 years 50 Over Três Lagoas Três Lagoas 36.30% 36.30% 16.99 Total 45.66 45.66 21.35 2011 Total Total Total 1,382 26.76 26.76 91.07 91.07 1,071 10.18 U 2,175 1,139 3.49 3.49 890 203 595 557 nit 1

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  Fibria | Sustainability Report 2011 Coordinators and Consultants Undeclared Undeclared Black Mixed race Indian White Executive Board Managers Operational Administrative (example: CLT; legislation of the country the of CLT; legislation (example: rules salary minimum by governed is contract labor/compensation whose employees the of Percentage Asian (2011) category job by Ethnicity Workforce D C Operational Administrative and Coordinators Consultants Managers Executive Board category job By E Lowest salary practiced by the company for Women (Capão do Leão Unit) Leão do (Capão Women for company the by practiced salary Lowest Unit) Leão do (Capão Men for company the by practiced salary Lowest Unit) Lagoas (Três Women for company the by practiced salary Lowest Unit) Lagoas (Três Men for company the by practiced salary Lowest Units) Bonito Capão and Paraíba Vale do (Jacareí, Women for company the by practiced salary Lowest Units) Bonito Capão and Paraíba Vale do (Jacareí, Men for company the by practiced salary Lowest Unit) (Aracruz Women for company the by practiced salary Lowest Unit) (Aracruz Men for company the by practiced salary Lowest (Women) wage minimum the to regard with company the by practiced salary lowest the of Proportion (Men) wage minimum the to regard with company the by practiced salary lowest the of Proportion Women for company the by practiced salary Lowest Men for company the by practiced salary Lowest wage) minimum 31 (national December on government the by currency local in established wage Minimum apprentices. young to 1. Refers operatingI important units.(GR in wage minimum local the to compared wage lowest the of proportion the in Change (2011)mployees disabilities with ompensation iversity Ethnicity Asian 8 0 1 9 4 EC5) 1 ). White 1,591 643 322 72.92% 19.75% 83 0.58% 4.25% 1.31% 1.19% 6 2010 113 48 3 1 0 I ndigenous 50 2,645 1 0 0 8 991 199 90 22 59 2011 Mixed Mixed 66.03% 24.74% 2.25% 4.97% 0.55% 1.47% race 829 138 21 3 0

Black 165 28 2 0 4 U ndeclared 44 27 13 0 6 R$1,170.50 R$1,181.00 R$1,181.00 R$640.50 R$640.50 R$949.00 R$949.00 R$545.00 R$857.00 R$857.00 R$917.00 157.25% 117.52% 1.15% 2,688 Total 2011 848 362 102 6 The company has no temporary or part-time employees. part-time or temporary no has workers. company The part-time or employees temporary to offered not are which employees, full-time to offered benefits the to refers indicator LA3 1. GRI The fund, Christmassion hamper, life Christmas insurance toy, funeralassistance, kit, school pen private for officers), (except hamper basic meals, transportation, child assistance, special centercare assistance, day BA Units), and (ES assistance dental assistance, –Medical LA3) (GRI employees full-time to offered Benefits Employee benefits professionals. community, hired36 Fibria of which 120 trained local the course from The people functions. for industrial skillsknowledge and basic to develop designed for market professionals course improvement atechnical SENAI, with in partnership conducted, Três Unit the Lagoas 2012. in initiated January SENAI, with 2010 From August in partnership equipment, 2011, until June harvest forest of mechanics and to of Taubaté, train operators cities in the designed for aprogram Tremembé and Caçapava (SP), residents were who and 17 high school public having completed old, between 22 and years 28 young people selected 2011, November In SENAI. with Unit in partnership Jacareí manpower the to train local is company practice also It in such regions. sities univer and schools websites, on opportunities the disclosing company has operations, the where regions from candidates is to however,recruit manpower; practice hiring for of local the its have not policy aformal does Fibria Consultants and Coordinators Consultants Operational Administrative and Coordinators Consultants 1. Women have the right to 120 consecutive days. Men have the right to five consecutive days. 100% of the employees who had the right to the leave of leaves. leave the to of tookabsence advantage maternity/paternity right the had who employees the of 100% days. consecutive five to right the have Men days. 120 to consecutive right the have 1. Women leaves of absence, broken by down gender. maternity/paternity taking after work to return who employees the of rates retention and work to Return (GR gender by down broken absence, of leaves maternity/paternity after rates retention and work to Return 2010 2011in in and 10.926.42 2009, in officers 6.83 considered 1. Were R$) (in (monthly) salary basic Average 2010 2011.in in and 10.926.42 2009, in officers 6.83 considered 1. Were R$) (in (monthly) women and men for category job by salary Basic LA14 GRI Operational Administrative Managers Managers Executive Board Executive Board 1 1 3,383,076.27 2,194,803.23 6,874,928.58 2,851,349.06 560,468.01 163,178.15 19,952.76 9,243.38 2,267.46 3,577.60 I LA15) Men Men 2010 2010 1,511,783.17 257,814.44 781,730.59 219,717.00 17,187.63 8,059.08 2,288.72 2,918.50 Women Women 0.00 0.00 2,780,078.93 6,727,486.50 2,027,025.71 2,126,677.24 553,725.30 55,722.46 22,522.51 9,823.60 2,595.48 4,050.81 1 . Men Men 2011 2011 94.44% Men 2011 1,151,017.77 255,580.00 242,886.61 682,151.15 20,240.55 8,634.82 2,662.29 2,662.29 3,563.52 Women Women Women 78.13% 0.00 0.00 - -

  Fibria | Sustainability Report 2011 111 112

  Fibria | Sustainability Report 2011    follows: as 2011,In main objectives, their restructuring areaworked on Development and Recruiting Personnel the recruiting andPersonnel development development and Recruiting plan. the for noteligible are Offices International of the pant. Employees of 15 higher, partici or by the made salaries 1.5% wage.contribution For matchesthe URFs Fibria participants’ of the to up alimit of be will company’s the contribution salary), contribution the determines which assessment, actuarial the by –annually defined Reference Units of 15 (FUNSEJEM equivalent the URFs month), 4,522.80 (per R$ under salaries 0.5% wage. For base 6% of her and his or VotorantimPrev, joining to between contribute Upon chooses employee an in surplus. been has always plan since the occurred has never has never this until current up moment, the contributions; sponsorship the to increase is permitted organization the liabilities, the to cover runningdeficit that fund is the at a is identified it plan’s of coverage the the case in and the liabilities, verify to is conducted Annually, assessment to 106% liabilities. of value the of the actuarial an correspond plan’sThe assets organizations. sponsoring of the fundsof each the from separately fund that is maintained aspecific through to employees is offered It system. Security Social mandatory toBrazilian the government’s plemental and, therefore, sup is voluntary (VotorantimPrev)participation and type contribution defined is the plan pension The that are Votorantim linked the companies of with the group. employees plansfor the pension of the management the for that fund is responsible pension for not and profit fund, aprivate, closed pension (FUNSEJEM) Moraes de Ermírio José 91% Senador –Approximately dFundação in the of Fibria’s participate EC3) employees (GRI funds pension Private   strengthening the attractiveness of the company, its engagement with the personnel and its ability to retain talent. to retain ability its and personnel the with company, of the engagement its attractiveness the strengthening climate thereby and organizational the on impact apositive culture aim strategy,of and generating the with beliefs, corporate the in accordance with performance employees’ managing the involves diagrambelow. strategy in the This as shown department, Development Organizational Humanand the for year, defined was strategy Last operational an work with the company leadership to develop a cause that will inspire and engage individuals and teams. and individuals inspire engage that will and acause to develop company leadership the with work and influenceorganizational opportunities changes identify aimed at increasing Fibria’s competitiveness; personnel; the among self-development facilitate stimulate and Corporate the on culture, Beliefs; of acorporate based development in the management the encourage and support personnel; its through create continuously organization, for value the Corporate Culture Corporate Corporate beliefs Corporate Aspirations Strategy Mission Values Vision Professional technical development technical Professional Performance assessment assessment Performance Developing leaders Succession process Meritocracy Career Managing the Performance of Individuals and Teams and Individuals of Performance the Managing Attractiveness Organizational climate Organizational Engagement Retention - -     follows: as monitored, and developed ghted that are being highli were initiatives one.certain thisevent, During desired the with cultureit prevailing compare and the corporate in 2011, development human organizational and the with together got to analyze managers designed in aworkshop general and culture, corporate Fibria directors of the the consolidation in the participate and to understand order In Culture      total number of employees, received a formal analysis of their performance and career development (GRI LA12). (GRI development career and performance of their analysis aformal received of employees, number total 2.6% 2.6% 2.4% and females of representing the males, of of the Fibria’s managers, and managers general the All are to: process Management Performance of the main objectives The covered. have will been organization of the levels different all the years, two Within specialists. and advisors 2012, plan. In tocoordinators, create the and asuccession groups of these extended be will cycle the overview to create career. in a general their steps is more, possible was it What next the and development professional their taken to be further should action what learned who involved, for those feedback provided process The managers. general evaluated the officers executive the and managers evaluated their managers general the in held, which were meetings Four groups. of those prospects development career and performance the to assess together got committees November, In the managers. and managers general company’s all the that involves directors, development dership 2011, September In lea and Cycle. Management of assessment Performance is aprocess This its introduced Fibria management Performance 62. page on Corporate the ting Beliefs of dissemina process the strategy. about company’s more the Read culture, and business with is aligned but identity corporate the to consolidating connected isonly not concept of the dissemination and implementation The results. of desired attainment the and making,key processes decision behavior, on interaction, guidelines roles, clear provide and values corporate the represent They organization. the within people of the behavior the governing of principles 2011. company in September the throughout disseminated were which Beliefs, porate are aset Corporate Beliefs The culture, corporate Fibria the toCor relates the at strengthening area, aimed by the effort ongoing important Another ensure the succession process at the different levels of the organization. of the levels different at the process ensure succession the performance. high and aculture of feedback develop development. collective and at individual aimed actions guide and monitor potentialto the and current performance on based results measure and resources allocate personnel, the manage beliefs. and values corporate the with of alignment behavior and of results achieving the on based performance, assess productivity. focuson the with systems, the and structure organizational the simplify management; performance focuson the with personnel, of the appreciation show procedures; our from any tape remove red and bureaucratic of afeeling ownership develop clients; with relations focuson the with business, the invigorate contribute toorganization. contribute the - - - -

  Fibria | Sustainability Report 2011 113 114

  Fibria | Sustainability Report 2011       Recruiting and development: procedures. training new in the underwent Units Forest and company’s at the Industrial working professionals Development Organizational and Human the All training development. and personnel that comprise of fronts variety 2011, During broad a across policies of standardization areafinalized the Development Organizational and Human the Policy review administrative and financial concepts; and develop teamwork skills and abilities. skills and teamwork develop and financial and concepts; administrative deepen issues; of forest knowledge the standardize and broaden companies; forestry in the start professional better a to them give Stewards, aims students, to graduated train which recently of Forest Development for the Program and, since 2010, Institute) Research and the Science has sponsored (Forestry IPEF with has apartnership also Fibria professionals. new hired36 Fibria and, these, from community local the 120 trained course from The people functions. job for industrial required skillsknowledge and basic the at developing aimed region, in the for professionals course development atechnical provided Training Industrial Service), (National 2010 August between 2011, June and Sul state), do Grosso SENAI Três (Mato In with Lagoas in Fibria, partnership technical development for andSENAI partners: industrial functions modules. to Fibria’s visits harvesting technical and activities practical with are interspersed 2012. in January to begin scheduled mechanics, and Classes operators machinery harvesting toprogram train forest for the selected were network, school public the within preferably education, basic complete with Paulostate), (São bé 2011, November In 17 aged of Taubaté, 28 municipalities of the people young to 22, residents Tremem and Caçapava training of machineSENAI: operators and mechanics stakeholders. all the with relations and business forestry of the overall an on understanding interface, and focused activities; of daily toperforming the that areareas important in fine-tuning on working technical, for processes; managing teams and skillsabilities and at developing aimed vioral, halfof 2012, second in the beha completed to be pillars: basic is scheduled three which course, upon The is based training. have undergone specialists 73 and technical supervisors far, So performance. high on focused 51 attitudes fresh that stimulates area,action through forestry for the cialists half of 2011, second in the spe Launched technical and supervisors at training developing and is aimed thisprogram Program for the development of technical and specialists supervisors in 2011 launched training ofor thatcontinued Fibria were programs A list below. is shown programs Training rescission interviews. rescission apprentices and the handicapped; (interns/trainees); programs induction andselection); (recruitment recruiting climate organizational training (functional, obligatory, development); - - -     cover: numbers The Viçosa, were granted to 55 employees, 58% more than the number in the previous group (2008/2009). group previous in the number thanthe more granted were 58% to 55Viçosa, employees, of University Federal the with Technology, Paper and in Pulp in partnership such post-graduation as Opportunities, 10% granted, were company’s representing of the larships staff. 2011, In functions. of job scho performance toimproved language and the lead that will study learning 400 around language and for study scholarships provides Fibria training development, and in employee aim of investing the With Development programs participation in specific training functions. job in in specific participation activities. professional of performing the in training obligatory through building skill aims to which train retrain and Mechanics, and Technical the Operators Center Machinery forTraining the of Forestry management participation in the Votorantim Academy of Excellence, the aim of which is to promote individual Votorantim in is the to individual aim promote of which ofthe Excellence, Academy participation management Av T of employees per gender number /total gender by training, of hours of number Average Total Operational Administrative Consultants and coordinators Consultants Managers Executive officers Executive Executive directors Executive Managers Consultants and coordinators Consultants Administrative Total Operational participants so far; so participants 847 have been group. for value the There generate and business of the to ensure perpetuity the development meet the quality, safety and socio-environmental responsibility standards. There were 2,327 participants in 2,3272011; were There standards. participants responsibility socio-environmental and quality, the safety meet that qualifications technical excellentprofessional main focuson the with mechanics, and operators machinery forest ra nu erage inin g b y fun o mber ct i f h o n o le al u o rs v (h el f tra o inin u rs 258,358 149,626 52,207 51,657 4,868 Total 2009 ) (GR y g per 54 0 I LA10) ear emplo , per 133,188 18,066 25,530 87,072 Total Total 2009 2010 2,517 NA NA NA NA NA 26 54 3 y ee , b 213,802 131,343 34,844 36,455 Males 11,136 Total y fun 2010 0.5 26 61 20 28 25 55 14 ct i o n le al F 33,563 Males 16,657 emales 2,130 7,674 2011 7,103 405 124 61 66 66 51 4 0 v el 2011 F 247,365 138,445 emales 13,266 44,129 51,500 Total 640 178 66 52 62 74 25 0 -

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  Fibria | Sustainability Report 2011 package offered in the event inof the layoffs. offered package gratuity of the part forms initiative This staff. for administrative provided were 16 and of lectures to executives hours company. granted were programs Individual apartner through process, placement in the company support the ving lea professionals offered Fibria the company’sof procedures, simplification and restructuring for plan the the Under employees. Among the executives, the figure was 89%. was figure the executives, the Among employees. to 2011, in relation Also the amongst through internal recruitment rate a43% success was invacancies there fillingjob ofcompany’s business. lines various the in issues challenging resolving in participation through development their maximizing and processes mational organization’s the to sustain transfor able be will mainis to who aim program of trainthe young professionals The continue 2012. will until program July development 2011, January In their and financialareas, and taken were on, company’s for the industrial 6trainees forestry, afurther 2011July Trainee of the conclusion the saw in initiated 2010, Program company’s the joining staff. 4trainees the with of to future that may Fibria. interest be talent identifying time same at the market job forwhile the them preparing students, education higher and at training technical is aimed program latter inclusion.The towards social contributing thereby cultural and values, citizenship social and addresses also program the content, the technical to addition In areas. Fibria’sin operational and qualifications administrative professional basic to obtain 14 aged to 24 opportunity people young the with provides former The Program. Intern the and Program tice Appren the has developed Fibria company’s beliefs, the and values with are aligned who people select and To attract Recruitment (GRI HR3) (GRI employeesof trained thus Total number of employees training of hours of Number Resources invested in training (R$) organization to relevant the rights human of T issues and their relevance to the employees’ work employees’ the to relevance their and issues organization’s regarding human and policies procedures rights the on training formal received that employees of Total number of that human are rights relevant operations to its this on the report, organization’s policies concerning aspects by covered period the during trained, employees of Proportion to its operations its to of that human are rights relevant aspects concerning procedures and policies the on training to dedicated report, this by covered period the during hours, of Total number procedures concerning and aspects policies on otal employee of hours training ’ s operations 258,358.00 258,358.00 16.17% 2009 2009 1,756 4,749 768 percentage, including the NA

3,342,853.43 133,187.58 133,187.58 22.67% 5,037 2010 2010 1,199 1,142

4,767,850.80

247,365.40 58.81% 4,006 3,877 2,356 2011 2011

- - - employees are represented by these commissions in all Units of the company (GRI LA6). company (GRI of the in all Units commissions by these are represented employees by CIPAs CIPATRs. and also –and 99.9% of process) or Unit of the manager general by the (led Management of Life Quality / cells, Ergonomics, Committees – Area at work safety and of health management the with associated sions internal by Committee. commisvarious Workers are represented in Rural Safety Accident Work)the Prevention and (CIPA CIPATR Commissionand forfor –Internal AccidentPrevention, AccidentPrevention Commission for –Internal Commissions Internal the supports and inspections security makes random and regular practices, or dard conditions of below-stan communication company encourages the at work, safety and of health to improve standards Seeking safety Health and in 2012, held be will made. survey progress the aim of verifying the with Organizational Climate the of edition new A employees. of the information to flow the improving and practices; ment manage personnel developing skills; of management development the results; the teams to the discuss with meetings regular holding planscovering, for example, own their up Drew also departments and company’s Units The process. Management up, drawn planswere Performance for such as the action macro discussions, of these results the lidating Afterconso field. the in that consultingspecializes firm by apartner coordinated survey. was by the This yielded Units company’s and areas the various about knowledge the of deepening purpose for the focusgroups, through rounds, Climate in 2010, Organizational survey, last of the conducted results the on of discussion anumber held Based Fibria survey opinion Internal Total number of fatalities (women) (women) fatalities of Total number (men) fatalities of Number Total numberof fatalities ** (LDR) rate days Lost Number of days lost rate diseases (ODR) Occupational diseases ofNumber occupational rate (IR) Injury Number of injuries R work of ates injury of - fatalitiesrelated , occupational diseases by LA7) , by and gender region (GRI , lost days absenteeism , and 58,73 2009 9.475 9.475 0,012 0,89 total, and number 143 0 2 2 2 100,25 21.725 21.725 0,034 2010 0,47 101 3 0 3 6

8.883 8.883 0,004 35,49 2011 0,23 59 0 1 1 1 - - - -

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  Fibria | Sustainability Report 2011 Occupational Safety and Health Administration (OSHA). Therefore the data for Simple Ambulatory Care or First Aid are are Aid Care First or Ambulatory for Simple data the Therefore (OSHA). Administration Health and Safety Occupational of the reference guidelines for and the comparative follow accidents to classify used methodology The (PEFC). FLOR requirements of OHSAS 18001 (Santos Port Terminal) and for forest management certification such as FSC as such Terminal) certification management for and forest Port 18001 (Santos of OHSAS requirements Fibriaareas in to the meeting the support prevention practices of and incidents accidents, occupational These diseases. operational that guide practices and of tools consists Safety and Health forFibria’s Occupational System Management hospital. the reached he before died of bybut worker view. ambulance recovered was The field not have did an adequate driver The chest. and head of the side hit him the on tractor the of shipment seedlings anew tractor. of the returning path with in was the When resting was employee the where place The of vegetation. shade the anapunder taking team was of the members of the one Meanwhile, seedlings. more to place get taking plantingwhere was field the of out pulled trailer to a coupled tractor agricultural an field, in the planting of eucalyptus 17 On the During 2011 August worker in Três (MS). forestry Lagoas acontracted involving afatalaccident was there office administration Central operations Bahia Forestry Espírito Santo and Forestry operations Forestry Sul do Grande Rio / Sul do Grosso /Mato Paulo São Unit Industrial (SP) Jacareí Unit Industrial (MS) Três Lagoas Total Unit Industrial Aracruz engineering Corporate logístics and sales Pulp Total I 1. The number of days lost is calculated as calendar days and count from the day following the accident. the following day the from count and days calendar as calculated is lost days of number 1. The D (L rate day Lost (O diseases rate Occupational Technology centre and development planningForestry Total International Offices njury rate ( rate njury DR) R) 1 I R) 0.010 56.32 Men 0.88 0.00 0.00 2.04 0.00 0.23 0.09 0.00 0.27 0.31 1.49 Men Men Women Women Women 0.023 2009 0.01 2009 2009 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.02 2.41 General General General 0.012 58.73 0.89 0.00 0.00 2.04 0.23 0.09 0.00 0.00 0.27 0.31 1.51 0.034 97.25 Men 0.46 0.00 0.83 0.00 0.34 0.00 0.00 0.22 0.28 0.45 0.51 Men Men Not monitored Women Women Women 0.000 2010 0.01 2010 2010 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.01 3.00 General General General 100.25 0.034 0.47 0.84 0.00 0.00 0.34 0.00 0.22 0.00 0.28 0.45 0.51 0.004 35.28 Men 0.21 0.00 0.00 0.00 0.09 0.00 0.94 0.25 0.24 0.35 0.17 Men Men Women Women Women 0.000 2011 0.02 0.00 0.00 0.00 0.00 0.00 0.00 0.00 2011 2011 0.05 0.53 0.02 0.21 ® and CER and General General General 0.004 35.49 0.23 0.00 0.29 0.09 0.00 0.00 0.94 0.25 0.53 0.35 0.19 - There are activities with risk of specific occupational diseases: occupational of risk specific with are activities There executives. involving latter the Programs, neration company’s inSharingand the Remu Profit Variable system remuneration of the are integral an part indicators Safety Units. Forestry and at Industrial meetings results of monthly asystem through to year for month,and date for the are each reported statistics, safety and health The health and safety. for the FSC 2011,In to prepare in order requirements, program SmartStep reached Bahia Santo and in Espírito operations forest rate the 0.89, was in 2010 2009 In rate less. of 0.20 or for 0.47 injury an was it in and 2011 0.23). was it is target (the targets ourand in rates as reflected and incidents, occurrenceaccidents of the in reduction a significant has been there 2009, in September Fibria that originated companies of integration the the from Considering period the observed. 14280 areaalso ISO guidelines welfare and legislation Accident(CAT), of Occupational Notice of the issuance the and legislation national of with compliance purposes the For criteria. OSHA the following Report, in the included not     capture sick or abandoned animals (GRI LA8). animals (GRI abandoned or sick capture to avehicle donated company also The surveillance. health municipal by the conducted survey canine inhealthy the Leishmaniasis: other municipalities. with fever in Três compared of dengue cases Lagoas in reported toreduction gine, the has contributed which Dengue: fever yellow 10 vaccinated to against be relocation. prior days that everyone mends recom to Fibria’s department Três moving medical locations Lagoas, other from of employees case the In authorities. fever: Yellow leishmaniasis. mucocutaneous areaforfever, yellow an endemic as fever and dengue Três (MS) recognizes of Health Lagoas Brazilian Ministry The filed. was Unit, Industrial in Jacareí loss hearing 2011 In ness. of noise-induced adiagnosis from resulting disease, of occupational case one only aware and prevention focuson tocontinued due the low has been However, diseases of occupational incidence the chemical and biological hazards (activities in the laboratories of quality control and technological development as well well as development technological control and of quality laboratories in the (activities hazards biological and chemical plant Unit); (chemical in plants our used or stored to chemicals exposure accidental hazards: chemical disc sun), the under (activity /dehydration sunstroke /heatstroke noise); (occupational of hearing loss risks: physical nurseries forest in the Disorders) /Work-Related Musculoskeletal Strain Injury (Repetitive /WMSD RSI risks: ergonomic as in medical clinics). medical in as inputs); tank of the level the to and measure sheet pulp of the thickness the for measuring that are used sources radioactive Units: Industrial the of processes to specific exposure (inadvertent contamination radioactive /handling (maintenance charge); herniation handling) activities; equipment (joystick operation and forestry since 2007 Fibria subsidizes Três Lagoas with a monitoring tool for the dengue vector geocoding en geocoding vector dengue for the tool amonitoring since Trêswith 2007 subsidizes Fibria Lagoas ® certification. There were no instances of non-compliance found in the management of occupational occupational of management the in found non-compliance of no instances were There certification. all persons born in the municipality of Três Lagoas are vaccinated against yellow fever by public health fever health of Trêsareyellow by vaccinated public against municipality in the Lagoas born all persons In 2006 Fibria donated 10,000 Scalibor ® collars that are still in use to protect the dogs diagnosed as as diagnosed dogs the to in protect use that are still ®collars Scalibor 10,000 donated Fibria 2006 In - - - -

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  Fibria | Sustainability Report 2011 Course for expectant mothers Course for expectant is organized for children and teens who do not attend the live event. live the attend not do who teens and children for organized is awareness-raising about healthy habits. A Cultural Drawing and Writing Contest and meals healthy activities, physical with Units, major at event Life Action: lifestyle. ahealthy for practices best of awareness raise to Goal: 17 age. 7to of from years employees of children with activities Educational educational booklet. an receive women pregnant All hospitals. maternity in held courses for areimbursement request can woman apregnant Units, other In internally. course the teach professionals health our Units, Industrial and Forestry the In training. and babycare mother-infant Company provide nurses interaction. breastfeeding, postpartum, birth, anesthesia, and delivery of labor,mode of symptoms and signs pregnancy, as such topics covering modules, in taught Course Action: Professional guidance for and pregnant women their spouses. Goal: gym. or classes exercise for 100 R$ to limited payment monthly the of 50% of Grant Action: encourageGoal: physical activity. Gym yourself! Move workplace. the in sessions Exercise Action: hours. work during activity physical encourage to Goal: Workplace yourself! Move professionals. Plus Life train by taught advanced, and intermediate basic, modules: three into divided training behavioral Action: life. financial of planning in Assist Goal: management. financial family in money of use conscientious the on Lectures F K family members. and respective inpatient for whether all ordependency, outpatient, is employees chemical of treatment for clinic aspecialized with agreement an has Fibria Chemical Dependency monitoring. any discrimination and all providing the necessary and psychological conditions compatible with their professional without activities, The company also guarantees the work of those professionals that present clinical (SIPATsAccidents and industrialoperations. forestry and among SIPATRs), both of Prevention for Weeks Internal the during discussed also is topic 1) The (December Day AIDS World on program awareness annual an holds company The /A HIV + M inancial Life – Conscientious use of money of use –Conscientious Life inancial ids eTeens ids V 2011 in actions ain LA8) (GRI id a (Lif ID S 2 e P 2 paigns and actions promoting health. promoting actions and paigns cam through professionals, of the attitude aproactive stimulates also It dependents. their and to all employees port financial and sup legal social, provides and counseling, psychological offers to pregnant women, assistance provides Program Plus) includes preventive and healthy (Life health +Vida eating, initiatives,The encourages physical activity life of Quality

l u s ) –F i 5 br i a ’ s Healt 2 h a nd Qu nd 2 al i t y o f Lif

e P romot

i o n P 1.023 participants internal training internal the in participated 15 women program the in active 453 employees workers of 79% – made admission One workers outsourced All and employees of persons N umber umber rogram 7 to 177 to old years from employees of Children outsourced workers outsourced of wives and employees outsourced employees, of daughters of employees, Employees, wives Employees workers outsourced Employees and members family and workers outsourced Employees, family members Employees and workers outsourced All and employees Target audience in Brazil in Fibria’s Units in Brazil in Fibria’s Units offices international and Units Fibria’s Brazilian Brazil in Fibria’s Units Brazil in Fibria’s Units Brazil in Fibria’s Units Brazil in Fibria’s Units Region applied Region 1 1 1 1 1 1 - - (i.e. with union rate discounted monthly from their salaries) (GRI LA4). (GRI salaries) their from rate union monthly (i.e. discounted with Additionally, instead. is followed legislation (31.9%) local 1,279where employees unions of labor offices members are international in the 99.11%sented are those agreements covered not by these employees only The employees). of the 2010 (in agreements union are covered figure byrepre trade the total) Currently, of the (98.95% employees 3,964 company's bulletin boards. the for on this to take place. to Equally,of employees interest information to unions disseminate trade allows it times and spaces suitable companynegotiates and the within activities union of labor exercise the respects Fibria behalf of their members. on organizations these by raised questions and collective plan profit sharing any other the shifts, work of definition the base-date, adjustment salary such as issues on unions trade with directly company deals The agreements. tive collec or bargaining agreements are covered and by collective unions by labor Fibria's are represented employees Relationship labor unions with Ergonomics Process 5. Treatment. 4. Risk prevention/control. 3. Counselling. /training. Education 2. Mothers. Expectant for Assistance Course the of Employees refund Gym, Teens, and Kids Move for Yourself! Contest actions: Cultural the of part (PAE), Program significant a implement offices These reasons. Maritime Caravelas logistical to the due (ex. partial is employees program the fewer of with Units At implementation Units. Terminal) Industrial and Forestry the at and Office Administration Central the at implemented fully is program Plus Life 1. The are can vaccination immunized. campaigns public by covered not employees that ensure to health, of Secretaries the with A influenza H1N1partnership in against campaign vaccination A flu Immunization in working conditions. CreationAction: of ergonomics committees to improvements study and work processes. improveGoal: working conditions, following technological, organizational, Ri care. clinical personalized Action: guidance. nutritional Goal: guidance –nutricional Life Light social or legal. financial, emotional, they be employees, of welfare and health the compromise could that problem personal of kind any for confidential and professional Action: problems. personal resolving in families their and employees help to counseling brief and referral service, assessment professional To provide Goal: Employee Program Assistance (PAE) sk pre v e n t 4 i o n 4 4 3

vaccinated 3,450 employees All employees 1,976 consultations assisted generating 521 employees assisted members and family 326 professional of persons N umber umber Employees workers outsourced Employees and Employees university) at 24 years (or age of 21to years up children and Employees, spouses Target audience in Brazil in Fibria’s Units Brazil in Fibria’s Units Brazil in Fibria’s Units Brazil in Fibria’s Units Region applied Region - - 1 1 1 1

  Fibria | Sustainability Report 2011 121 122

  Fibria | Sustainability Report 2011       and includes: thispurpose for specifically elected representatives union and employees of by acommittee is discussed indicator This health. and worker safety with that deals indicator containsan (PPR) Plan Sharing Profit employee safety. and relating The to health cover unions issues trade with agreements formal The LA5). (GRI representatives employee and employees toaffected the cated –are communi layout changes and exchanging –such as equipment processes in work changes all major addition, In 29. September on was sale of the closing the 7and July on to employees communicated was Unit Piracicaba of the sale The 28(CONPACEL) (KSR). February and December on 21, filed was sales January 31 for 2010 these regarding scheduled was fact sale the of closing the and of material The sales the of Piracicaba. CONPACEL, and KSR cases the by evidenced as of branch offices, closing the or of Units sale such the as changes, for major is four weeks changes for notice minimum operational advance The HR5). bargaining (GRI collective 2011, In union. and right toassociation of the free of any violation denunciation no Fibria's received Ombudsman in atrade position amanagement hold they period law the during under to them assured rights the guaranteed are employees to. These belong they unions trade in the positions leadership exercise who employees way against in retaliate any or dismiss not does to Fibria unions join. of these which to choose employee the enabling sion, profes and category their that represent unions labor of the outset at the companyemployees informs new The   Commitments relating to performance standards or desired level of practice to be applied, which include health and and health include which applied, to be of practice level desired or standards relating to performance Commitments surveys; Periodical work; tounsafe Right refuse complaints; of System Training andeducation; (CIPA investigations accident and audits inspections, safety and in health of workers of representatives Participation employees; and (CIPA CIPATR)of and executives committees composed safety and health Joint Equipment Protective Personal (PPE); safety clauses negotiated in the PPR (equivalent to 10% of the annual bonus) (GRI LA9). to (GRI 10% annual of the bonus) (equivalent PPR in the negotiated clauses safety CIPATR); and - - operations on the environment, as well as program monitoring and conserving biodiversity. biodiversity. conserving and monitoring program as well as environment, the on operations its of impacts negative the the company’s to reduce initiatives discuss also we pages, the In following are unified. data is for climate exception governance, in which The nature of the activities. of their because separately are treated tions 2011. opera industrial and management forest environmental the of operations, our To understanding facilitate the in operations industrial and management forest of the Fibria’s challenges environmental major chapter explores This Introduction performance Environmental         processes: production and management of forest elements describes IDSA The of Fibria. performance environmental and social of the improvement constant the to promote actions develop and environment, the and communities the with concerns planning operational and forest and social the medium-term environmental to of the identify company performance, incorporating seeks the activities IDSA, the company’s in Through the areas. system social and ecosystem forest of the characteristics evaluates the Fibria Socioenvironmental Performance Index (IDSA) management Forest

relationship with neighbouring communities. neighbouring with relationship program; education environmental and monitoring certification; forest and environmental of audits of results of pesticides; packaging and management waste areas; in conservation fire the demands meeting of stakeholders; socialin and environmentalplanning; and effectiveness efficiency or warnings; fines environmental 5 6 4 – The Socionvironmental Performance Index (IDSA) developed by by developed (IDSA) Index Performance Socionvironmental –The -

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  Fibria | Sustainability Report 2011 tonne of pulp produced) had a positive impact on forest management, reducing the need for new plantations. for new need the reducing management, forest on impact apositive had tonne of produced) pulp (per consumption wood in specific translated into which adecrease plants, of the performance operating good The supplies. for 71% wood of third party Bahia, Santoaccounting and of Espírito concentrated mainly states were byin Fibria the with partnered areas The ers. produc partner by small, large or supplied medium being remainder the volume, with of this wood counted for 90% in 2011 in Fibria’s Units consumption Wood Industrial Fibria’s ac 16.8plantations meters. own reached cubic million Wood production and supply      2011,In innovations: following the has made IDSA the The workplace accident rate resulting in employee and outsourced workers’ absence from the Unit was below 1. below was Unit the from absence workers’ outsourced and rate accident in resulting employee workplace The Unit. Industrial of the stability tooperational contributing the and stable more operations rendering thereby plant the and in courtyard, wood) (stacked field in the stocks wood increasing enabled volumes Production supplies, respectively. 23.7% accounted for 73.8%, modes 2.5% and of rail and transportation sea road, The of wood. meters cubic lion 2010 the surpassing benchmark, anew mil 8.5 was volume, which sets also which of 24.5volume meters, cubic to daily average an equivalent of wood, meters of 8.9 cubic volume million transportation atotal achieved Logistics day. per meters 23 was cubic output daily average of 7.9 record 2006 the The surpassing of wood, meters. cubic meters million cubic million 8.4 reached Crop production Program. Producer Forest the of part were thousand Fibria’s on were 8.2 and land own hectares thousand were, 40.8 of which plantations forest new of hectares 49 and thousand available made were seedlings eucalyptus million Forty-eight production. of forest levels returnto the normal for consolidating important were operations nursery and of Fibria’s forestry performance The of wood. 2011,In meters 8.9 cubic million mill pulp with the supplied (ES) Unit Aracruz areaof the Forest the

prevention checklist. prevention (PRV); Program the Remuneration and Variable (PPR) linkedProgram Sharing indicator toProfit the performance; to company’s improve the socioenvironmental actions for proactive bonuses events; the of cross-validation are areas the from information cross-validation: managing performance; and for reporting are responsible themselves areas the self-assessment: Donations ofDonations native seedlings Seedlings 1. In own and third-party nurseries third-party and 1. own In Planting of eucalyptus seedlings Planting of eucalyptus Production of native seedlings Production seedlings ofDonations eucalyptus Production of eucalyptus seedlings of eucalyptus Production 1 1 30,000,000 33,000,000 4,000,000 400,000 193,000 2009 89,017,808 63,137,817 1,426,630 956,762 50,007 2010 102,756,751 87,802,255 15,316,875 1,922,460 77,500 2011 - - - business use in Rio Grande do Sul. do Grande in Rio use business tofuture as the company’s the decision awaits and base forest its maintained (RS) Unit Forest Leão do Capão The purposes. to preservation dedicated be will 30% other the and plantations eucalyptus be will 113 around leased Fibria TrêsUnit, plansat the 70% of which expansion the Lagoas linewith In hectares, thousand current levels. at the mill and production supply wood maintainingthe mill), the and in field in the (both operations in the of wood stock guarantee astable results These Unit. Jacareí at the demonstrated levels benchmark safety towards the moving program,and Safety Road the million per accidents a 24% kilometers, in relation decrease to the previous year. of Demonstrating the effectiveness reachingin 2011 performance, safety its isimproving continuously TrêsUnit the that supplies 1.69 Lagoas logistics The 14.03 availability. equipment day, per of 7% increase in 12%. the increase in an harvest in was linewith increase This a13% of wood, 5.07 to 2010. in produced meters relation cubic million increase reached harvest hours machine The 4.15 mill pulp with the supplied the and of wood, (MS) TrêsUnit areaof the meters cubic million Forest Lagoas The current levels. at the mill and production supply wood maintainingthe mill), the and in field in the (both operations in the of wood stock guarantee astable results These program. Safety Road of the effectiveness the demonstrates and benchmark safety year. aglobal toprevious the in relation represents This a59% decrease meters, kilo million per accidents 0.29 with in safety performance arecord achieved Unit Jacareí the that supplies logistics The availability. equipment day, to per 2010. in relation in 8% chine hours of in increase an 4% harvest increase the in was linewith increase This reaching13.66 ma in productivity aperformance with of wood, meters 3.58 cubic million reached Crop production partners. forest from which 2011,In 3.74 mill pulp with the supplied 6% of of wood, (SP) Unit meters cubic million Jacareí areaof the Forest the recorded. were nonconformities two Only sions. dimen safety and social environmental, operational, the in monitoring company’s of the field effectiveness and ment aims to prepare the Unit for FSC Unit aims the to prepare plan, which action SmartStep of audit the tomonitoring the subjected was Unit Aracruz at the management Forest job creation and diversifying agriculture. diversifying and creation job and Fibria’s near a way to into integrate generation chain, value our plants ruralpulp income producers promoting is for purchasing partnership land, forest need the reducing Besides Paulo, areaof a total 106,891 providing hectares. Sul São and do Sul, do Mato Grande Grosso Janeiro, Rio de Santo, States Rio in of the Espírito Gerais, Bahia, Minas ers rural produc with by 3,422 contracts secured was of wood supply 127). page chapter on supplementary This Logistics 2011 during of at pulp Fibria’s Units tion Industrial matter, the refer toWood the about information please further (for accounted for 10% of raw produc for volume of materials consumed the the partners by forest of wood supply The Wood supply by third parties ® certification. The audit results were positive, particularly in terms of social manage social of in terms particularly positive, were results audit The certification. ------

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  Fibria | Sustainability Report 2011     to: driver, seeks Fibria development whereby regional isimportant an It of hectares. 78,982 a area total Janeiro,provided de Santo, of Rio and Espírito Bahia,Gerais Minas states in the producers forest with tracts 2,934 The crops. other and con to plant eucalyptus in aconsortium working farmers small scale of enterprise: type for 85.74% accounts anew which Program, to address began Forest Unit’s Aracruz The of Fibria’s partnerships, forest (SGF). System Management toForest the (SIF) System Information Forest the program, from the supporting the in change the System by reaffirmed also was producers contracted the and Unit the between flow information The requirements. social and legal on results positive initiated, was with process audit (CW) wood A controlled principles. law, with comply and Fibria’s thus aligning with certification properties their plan better them to allowing producers, to benefits provides model company’s partnership The wood. of standing metres cubic i.e. of 2,582,238 metres, volume total cubic 1,429,762 1,152,476 and at warehouses delivered of wood metres cube 2011, a In with plants, three of its supply accounted for wood Program 28%of the Producer Forest Unit’s Aracruz the hectares of eucalyptus (in these cases, Fibria allows the farmer to sell wood in the market is higher). in price the the if wood to farmer sell the allows Fibria cases, these (in of eucalyptus hectares than5 are larger not properties whose by PRONAF), set condition (a employees manpower, thantwo more no with own their using families benefits purpose social The by and Fibria. of Agrarian Development) Enterprise, Ministry of the Farm for Strengthening Small-scale of Program the (National by PRONAF are set guidelines These states. Bahia and Santo in Espírito adopted to Pauloand be in place São already purpose, has asocial also Program Savings Forest The Pedrito. Dom and ofPelotas Bagé,Candiota, maize and regions pumpkin in the termelon, 135). 2011, In wa far so have crops been successful most The covered areaof an 13.5 project the hectares. thousand page on chapter inAgriforests, the provided information (further manner ecologically-friendly in acorrect cultivated that are crops of in certifying charge Institute, Assessment Quality Chain Agrifood of audit the and Product (Emater) Company Rural and Extension since 2010, Technical the forest from Assistance in eucalyptus support technical with produced seal to food acertification toTable” offering the Sul, do “Fromhas been Forest the Grande the Rio project In crop. early second space to have a is there sufficient when areas, eucalyptus in first-year production for food port sup technical of the provision is partners grantedthe forest to benefits the of One Fibria. by expanded and intensified been has sinceand then in 2006, do starting Sul, Grande Rio in implemented firstly was Program Savings Forest The company’s principles. certification 2012, SantoBahia beginning and in areas Espírito to contracted the extended be so the will aligning with Program Savings Forest The third from parties. to wood purchase contracts new in it its to adopt has decided Fibria generation income and creation of in job terms program of the results average. togood on the Due years seven last cyclewhich cultivation of the end at the commitment purchase and of seedlings supply with agreements, loan secured long-term for in Fibria, to wood produce are encouraged rural owners whereby Program, Savings Forest is the by third parties company’s (SP, the to of wood program ensure supply company is active the where RS), and MS states other the In

Promote environmental by development encouraging conservation. crops; other and toforest value the add which systems agroforestry culture encourage and local Respect of rural areas; occupation well-planned Encourage the business. forest the with development rural and conservation environmental enterprise, to as integrate so local producers with Consolidate partnerships - - - of the restoration progress. restoration the of for assessment years three every updated be will which in areas question, of all the images by satellite accompanied be will data This registration. of environmental proof and process) registration of the of progress proof (or Reserve Legal of the of Registration number Area, Preservation area, Permanent Reserve area, Legal plantation area, actual 2012, in areas byBahia August leased and partners’ forest of owner, the of the total list name including the location, complete the (INEMA) Resources of Environment Hydric State and the Institute taken company is byto the provide under commitments of the One partners. forest to farms contributing regularizingof the its thus directly principles, the sustainability with alignment suppliers’ its reaffirmed Fibria to action, commitments formal signingthese By seedlings). necessary the with provided be will areas to 50 100 hectare whilst seedlings, free with provided be will areas hectare (50 areas of smaller toowners the seedlings to providing itself committing Plan, besides of aRevegetation creation and tus) and plantation the of remainders of areas, eucalyp the Atlantic reserve legal fying permanent preservation Forest, plans(identi of planimetric preparation studies, restoration for funding forest responsible be will Suzano and Fibria SYSFLOR. and IMAFLORA entities certification environmental by monitored be closely willalso work The program. the of financial management of take the will care Silveira Foundation José the while actions, recovery to forest the support technical provide will (ESALQ/USP), PauloUniversity São of the Queiroz of Agriculture Luiz de linked School toHigher the (LERF), Laboratory Restoration Forest and Ecology The take will ten years. which Diversity, of Environmental Restoration and Conservation of Program Arboreum the of and financing Suzano the Fibria by forecasts Baleias, das Costa Office –Regional (NUMA) of Justice the Forest Central and Environmental Atlantic Regional de Freitas the of Teixeira Office Prosecution Public the State of the of Bahia, Service Prosecution Public the with signed document in Bahia. The companies, of both suppliers by wood owned to rural properties belong which Atlantic of the remainder Forest and Areas Preservation Permanent Reserves, of Legal (TAC) restoration Agreement forest the on Adjustment aConduct signed eCelulose S.A. Papel 2011, December –In State Bahia in Suzano and reforesting Fibria on (TAC) Agreement Adjustment Conduct have not that do certification. suppliers from wood of origin the to confirm audits field conducts and requirements to legal attendance asserting documents analyses program Controlled (CW) Wood The Unit. Aracruz the to Bahia Santo and supply in Espírito producers from – came Controlled wood tween the Caravelas Maritime Terminal in Bahia and the Portocel barge terminal in Espírito Santo. terminalin Espírito barge Terminal Caravelas the Maritime Portocel the in and Bahia tween route be the on impact, have alower with and economical are more which makes of barges, company also use Our Communities the chapter, on 78). Impact in the page on thistopic about more (learn involved communities local the with dialogues to operational control through and mitigate strives that Fibria impacts social and environmental causes periods, duringharvest which intensifies equipment, and trucks of traffic in Brazil. haulage The for cargo transport of main mode is the which by trucks, is transported part most for the Fibria’s Units that supplies Industrial wood The Wood logistics – Approximately 85% of wood purchased from third parties in 2011 third from parties purchased 85% of wood –Approximately partners –including forest - - - -

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  Fibria | Sustainability Report 2011 In 2011,In 3.74FSC the by received Unit 75% Jacareí of which the of wood, certified were meters cubic million also intends to reactivate a wood storage location in Conselheiro Pena. location storage awood intends toalso reactivate in 2011,Santo thatreactivated were 2012, In in Colatina, Itapemirim. do Cachoeiro and located Araguaia company the in Espírito sites storage some and Gerais inof areas Minas partners forestry from of wood transportation for the used Unit, Aracruz for the moment, for viable, the is only mode transportation This deliveries. wood for its system tation of using thistranspor Fibria’s reduces possibility country in the offered of railroad services small number relatively The Rail transportation population. local the that benefit seedlings tree offruit native production for Caravelasand the the coast along mangrove the of regions linkedecology the to projects research in scientific CenterManagement (CEPENE/IBAMA) Resources Fishery and Coast Research Northeast of the Base Advanced the rate of 18% year. per supports also Fibria ataverage an occurring has been which Brazilian the coast, along of thisspecies population the to increase project Institute’s Jubarte Baleia the Communities the chapter, with Relationship in the more 74),supports and page on (learn ES) (Aracruz, Riacho do Barra and of Caravelas regions (BA) port in the employment and income for generating actions forefront of is in the Fibria of anumber communities, local on transportation of maritime impacts to the mitigate order tion, as well as causing significantly lower social and environmental impacts, including lower levels levels of lower including CO impacts, environmental and social lower significantly causing as well as tion, transporta thantruck safer and economical are more which barges, to use possible whenever company has sought into taking account The Unit, highway, toAracruz sent the modes. shipping of wood volume maritime railroad and 2011,In 25% about total of the 2.15 represents which by barges, transported were of wood meters cubic million Maritime transportation efficiency. operational improving and sessions weighing during precision hauling to the reduce of water, seeking wood, increasing transported of the density for apparent changing the project is a highlight at Aracruz Another organizations. of stakeholder representatives and users road communities, boring 101 BR of the of users of neigh highway, greater participation residents to seek volunteers, in order involving (RMT) Network 101 Monitoring BR of the Transportation stretches its problematic highway.most is restructuring Unit The on focused Highway Safe Program, the and Committees by Safety our out carried suppliers transportation tracted to 7.55 at con compared aimed campaigns to educational thanks year, previous the possible made achievement an 1.13, only was employees) outsourced and (own time lost rate accident with in 2010, The obtained 44%. was which that double 86% rate,safety,an practically in improvement registering significant for the notable was department Logistics Forestry Unit’s of raw thispulp material. movement for The the record 2010 anew establishing by 4.4%, in 2011 transported in of wood 8.92 the registered meters volume Unit, the cubic At million Aracruz the surpassed year. per traveled totaling 10 kilometers million kilometers, dayradius in average of an 66 per trips 200 average Lagoas out of work The that population. trucks 105 the Três for benefits as well as fleet for the productivity and ofdards safety stan higher providing communities, by used 35 kilometers including roads, of kilometers 85 improving in R$5million 4.15 approximately invested At Fibria some Três Unit the transported. were Lagoas of wood meters cubic million year. per traveled kilometers million 34 day, per represents trips which make 200 Unit averaging 225 about Jacareí by 150 the kilometers, used The trucks basis. amonthly on processes in transportation improvements to discuss committees of regional establishment the and fleet trucking the of renewal involving in SafeHighway program,2005, the of implemented the consolidation reflects result This motorways. on traveled kilometers million per of 1accident average world thanthe is lower This this Unit. to services in transportation traveled kilometers 1million per rate accident accidents notethe of was 0.29 particular 2 emissions. In In emissions. ® . Of . Of - - - - - machinery) and (wood and handling transportation rail and Road Activity Forestr S used organization the in materials and other goods and products of transportation impacts environmental the of ignificant y L og i st effluents liquid of Emission Power Generation materials of recycling and/or Reuse waste solid other (6) glass (5) metal scrap (4) cardboard paper and(3) scrap plastic (2) PPE (1) uncontaminated of: disposal Generation/ of contaminated PPE Generation/disposal grease or oil with contaminated waste of disposal Generation/ Generation Dust sources) (mobile emissions Particulate Noise generation traffic in /changes Detours aspect Environmental i cs : tra n a sport ’ s operations nd s nd effluents are sent for treatment for sent are effluents Terminal. These Barge Portocel the at wood transporting barges from waste oily and sewage of suction the from generated Effluents yard mill's wood the at density wood of determination the in generated Effluents disposal awaiting and batteries in stored materials similar of and bark organic from yard matter originated decomposition from mill's wood the and yards wood intermediate the in generated Leachate disposal awaiting and batteries in stored materials similar of and bark organic from yard matter originated decomposition from mill's wood the and yards wood intermediate the in generated Leachate rain by solids of dragging through yard mill's wood the in generated Wastewater rain by solids of dragging through yard mill's wood the in generated Wastewater ofdragging solids and other residues by rain through yards wood intermediate the in generated Wastewater companies outsourced by wash to sent and operation the during generated grease or oil with contaminated Towels rags and boiler biomass its in burned and yard wood mill the in generated branches and bark and waste Wood that given be alternativedisposal can batteries and cardboard clean and paper glass, metals, electronics, scrap, plastic as such teams, operations various by generated Materials landfills II class in disposed is waste Terminal, this Caravelas the In trains. and trucks of cleaning and unloading the in generated branches, and bark as such residue wood (6) items miscellaneous and general in packaging from glass (5) items miscellaneous and general in packaging from metals (4) items miscellaneous and general in packaging from cardboard and paper (3) items miscellaneous and glassware general, in packaging from plastics (2) (1) and Used uncontaminated PPE operations: of execution the during Disposal of during contaminated PPEoperations Disposal used incineration or Ilandfill Class to sent and collected Contaminated soils and contaminated miscellaneous materials ofGeneration by dust roadand rail transportation transportation rail and road in smoke) (black particulates of Emission by generated Noise roadand rail transport roads Fibria's internal and stretches urban roads, municipal and state federal, on vehicles of Flow Detailing of aspect environmental u ppl employees of EN29) transportation the (GRI as well , as y o f t h e m i ll

water quality water of • Contamination/change microbiological soil changes • Chemical/physical/ microbiological soil changes • Chemical/physical/ quality water of • Contamination/change quality water of • Contamination/change microbiological soil changes • Chemical/physical/ quality water of • Contamination/change quality water of • Contamination/change resources natural of • Economics resources natural of • Economics microbiological soil changes • Chemical/physical/ air quality in • Contamination/change microbiological soil changes • Chemical/physical/ air quality in • Contamination/change microbiological soil changes • Chemical/physical/ neighbors to • Nuisance air quality in • Contamination/change neighbors to • Nuisance property to • Damage network road the of • Use Environmental impact

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  Fibria | Sustainability Report 2011 and handling transportation Wood Activity M ar i t ime Shi pp supply Optimization of wood Collision/overturning Leakage/spilling Noise generation sources) (mobile emissions Particulate renewable resources of non- Consumption aspect Environmental Water consumption consumption power Electric renewable resources of non- Consumption animals wild of over Running Leakage/spilling Fire Collision/overturning of batteries Generation/Disposal in g travel on BR-101 on travel longer no that "tritrem" type the of 100 trucks approximately of loading the represents which wood, of tonnes 5,200 to up with barges of loading the Terminal allows Caravelas of operation full The operations, including interference in the development of these species maritime in wood transporting when cetaceans with collision of Risk shipwreck of case in or operation normal in wood of transport maritime during barges pushing tugboats from fluids other and fuel of spills and/or Leaks and disrupt their behavior Terminal) (Caravelas areas mangrove the in breed that species aquatic the away drive can terminals maritime in maneuvers docking their and barges of unloading and loading of operations the by generated Noise of wood during maritime transportation barges pushing tugboats by smoke) (black particulates of Emission purposes transportation wood maritime for barges pushing tugboats by diesel of Consumption Detailing of aspect environmental wood yard wood mill's the and courtyards yards wood intermediate the in Used operations yard's wood mill the by power electric of Consumption transportation rail and road in oil diesel of Consumption Risk of running over wild animals during roadtransportation and rail transportation road in fluids other and fuel of overflow and leakage of Risk transportation rail and road in fire of Risk lines rail and roads on overturning and collision of Risk landfills II class for destined be can that batteries alkaline or or normal of up made is waste This yard in radios and communication flashlights, otherinstruments. mill's wood the and yards intermediate in used batteries of Disposal resources natural of • Economics flora aquatic wildlife/ in • Change and flora fauna aquatic in • Change flora and fauna the to • Changes quality water of • Contamination/change flora aquatic wildlife/ in • Change fauna/flora wild in • Change air quality in • Contamination/change naturalrenewable resources non- of • Depletion Environmental impact renewable naturalrenewable resources non- of • Depletion resources demand of renewable natural and supply in • Imbalance naturalrenewable resources non- of • Depletion fauna/flora wild in • Change microbiological soil changes • Chemical/physical/ quality water of • Contamination/change air quality in • Contamination/change microbiological soil changes • Chemical/physical/ quality water of • Contamination/change microbiological soil changes • Chemical/physical/ impacts and ecological interactions of the plantations on surface water groundwater, and surface on ex and plantations compare of the then and interactions ecological and impacts environmental area, to assess in this experimental is it possible, Thus, in detail. analyzed and is studied plantations eucalyptus with watershed of experimental an water cycle the where is linked and Project, toWatershed the tersheds 12 on is conducted of water resources monitoring wa Santo, Gerais), Minas and Bahia (Espírito Unit Aracruz the In operates. it where regions the in the company'sin water reserves operations of forestry impacts significant that indicates evidence is no there of water. results quality and monitoring latest the quantity In the regards as management, forest on potential impacts to areas prevent minimize or operational its within glossary) in the more (learn watersheds monitors continuously Fibria management Water resource Terminal) Maritime (Caravelas channel the of Dredging maritime the of modification Geometric communities bentonic of Suppression landslides Slope column fluid the in materials of Provision Leakage/spilling Noise generation sources) (mobile emissions Particulate renewable resources of non- Consumption species exotic of Introduction local area and biota in these areas these in biota and area local of sedimentation and erosion of patterns in changes consequent and currents of patterns circulation the modify can and geometry channel the alters channel the in sediment of removal and excavation The balance previous the of abreakdown to leads and original of composition different have may but naturally, occurs Restocking seabed. the on communities bentonic the displaces channel the in sediment of removal and excavation The ofdispersion the liquid column material consequent and areas of burying and collapse prevent to and slopes of angles certain for stability the maintain to order in performed be must channel the in sediment of removal and excavation The causes the dragging to due formed be also can plume A visible diluting. subsequent or them silting biota, aquatic the with interact will that chemicals and nutrients matter, particulate of dispersion promotes operation dredging The vessels. Includes any vessels support dredging from fluids other and fuel of spills and leakage of Risk vessels support any Includes vessels. dredging from fluids other and Fuel vessels dredging the from fluids other and Fuel avifauna local the of behavior the disrupt and Terminal) (Caravelas areas mangrove the in breed that species aquatic the away drive can vessels support other any and vessels dredging the by generated Noise other vessels support any and vessels dredging by smoke) (black particulates of Emission vessels support other any and vessels dredging by oil diesel of Consumption of vessels fouling hull or water ballast through region the into species exotic of atransmitter be eventually may regions other from vessels of use The and flora fauna aquatic in • Change biodiversity of • Reduction and flora fauna aquatic in • Change and flora fauna aquatic in • Change and fauna flora aquatic to • Changes flora and fauna the to • Changes quality water of • Contamination/change and flora fauna aquatic in • Change flora and fauna wild in • Changes air quality in • Contamination/change naturalrenewable resources non- of • Depletion and flora fauna aquatic in • Change - -

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  Fibria | Sustainability Report 2011 4.13) 61. page on 4.12 (GRI Chapter in the commitments Main Youthissubject about more and learn can (WFN). Network Footprint for planting. Since of 2010, water used volume the Water includes of the which amember company has been the processes, production its throughout of water amount used the water to footprint identify its tracks also Fibria TrêsUnits. and Jacareí Lagoas Aracruz, the in such that, 2012, purchased between equipment and adjusted was be installed will stations new five in 2011,Also waterof balance plantations, the for monitoring essential network, stations Fibria’s the meteorological climate and change. cities in growth for population waterfrom arising demand increased may be there ofwhere areas mapping area is the in initiated 2011 project Another management. of forest Environment by Fibria’s aspect Forestry of thisimportant Center. Accordingly, have and integral an vision of as 2012, analyses data comparative to perform possible be will it 2011,In in Fibria’s Technology integrated were into its Units methodologies study and monitoring water resource year.the during management as a of result forest changes of significant evidence no was there watersheds, in bythree Fibria are made assessments quality and water quantity where (MS), TrêsUnit the In Lagoas of water available. quantity or quality the not alter did influence in 2011, in this area Unit’s of operations forestry by REMAM/PROMAB, issued According to a report ESALQ-USP). (IPEF/ Studies and Institute Research Forestry of the is part which (REMAM), Network Monitoring Environmental sheds Water by the watersheds in two conducted Paulois being in São Unit Jacareí in the of water resources Monitoring plantations. eucalyptus and pastures in thisregion: main uses land two the between analysis acomparative to Fibria conduct enable will here studies Santo. The Espírito in Aracruz, located areas in pasture thistime watershed, in anew equipment monitoring 2011,installed In (PROMAB) Project Watershed the others. among NGO; an (TNC), vancy Nature The and Conser anorganization; Australian research (CSIRO), Organisation Research Industrial and Scientific Commonwealth the (UFLA); of Lavras University Federal Santo (UFES); of Espírito University Federal (UFV); of Viçosa University –Federal institutions research international and are national studies for Technology. in these Participating Center our from by staff are conducted studies The to12 the network. results monitoring of the trapolate watersheds Aracruz Três Lagoas 2. License to capture surface water is only granted in the nursery of Aracruz (ES). We do not have licenses for groundwater capture, which is not required by law. by required not is which capture, groundwater for licenses have not do We (ES). Aracruz of nursery the in granted only is water surface capture to License 2. Bonito. Capão and Paraíba 1. do Vale Jacareí U T otal water withdrawl nit 1 2 Ground water (m³) Surface water (m³) Surface Type of withdrawl of Type Surface water (m³) Surface Ground water (m³) water (m³) Surface Ground water (m³) , by EN8) source (GRI 204,660 125,940 198,558 307,487 201,312 2010 – 482,566 386,252 144,470 31,535 77,541 2011 – N umber of points of withdrawl 185 136 14 17 – 2 - - in 2010. recommended was as reports, of for such tracking information monthly, control the ofform forestry quality to per began and 2011,activities In protection torelevant forest most issues on indicators performance adopted we have validatedthese been through audits. conducted or planned in order to satisfy conditions of pesticide use and other FSC other and use of pesticide conditions to satisfy in order planned or conducted were studies protection Other forest reviewed. been have field the and nursery in the weeds and diseases pests, of management the for identified. recommendations Technical havebeen also to of forestry interest herbicides post-emergent and pre- material. New genetic resistant to obtain strategy breeding anew to as well develop as diseases, to major clones of eucalyptus resistance genetic the to out assess carried Studies have been diseases. and to pests resistance evaluating clones’ the and for natural introducing predators astrategy developing diagnoses, aim the of improving with up – set been lab has protection natural A from predator Australia. forestry a significant of introduction for the support technical as well as potentialnatural predators, its and of thispest cycle breeding to related the developed have been procedures thisproject, In into pest. introduced cently amajor Brazil is now and re was bronzecontrol of which the bug, At Technology biological Center,the have prioritized activities research (PPAs). Areas Preservation Permanent and (LRs) Reserves Legal Fibria-owned as well as forests, of take these help care to been hired andflora Altogether, fauna. have monitors 89 identify and diseases pests, fires, to monitor trained been have who communities neighboring from –people Monitors by Forest is completed Bahia, Santothiswork and Espirito In fires. training and to forest resources combat equipment, for monitoring have teams also responsibility The jectives. ob compliance and environmental technical, meets premises weeds and diseases thisplanning control of and pests, All of thisstrategy. toadoption due the 25%damage significant from safe were areas of the (MS), TrêsUnit the In of infestation. Lagoas limits acceptable determining and information monitoring on based maintenance inof areas forest by 60%, to control ants need in 2011 aresult, the reduced As of operations. costs and (ES), Unit use Aracruz the to pesticide reduce measures ofcontrol efficiency the to increase essential is Santoapproach Bahiathis and Espírito In fires. to forest response first performing situations, and, in emergency levels infestation weed determining as well as stage, at early an diseases and pests of detecting main objective, the in integrated an out fashion with is carried monitoring Forest forand the continuous generation of knowledge improvement of forest protection. balance ecological the preserving clones, eucalyptus resistant planting and of more selection the include sures adopted control. and Mea of prevention,monitoring cycles of successive astrategy follows of plantations our protection The protection Forest 1% factories. from approximately discharged –being volume of the operations in manufacturing used to quantities comparison bear not 2012. does in July operations operation in forestry of water discharged volume The into to go is planned station atreatment nursery At Aracruz the of agravelsolids. through retention for box the passes water runoff, waste the becoming before Unit, into At back soil. Aracruz the the is passed box, aseparation through passing after water from irrigation, waste and tanks septic is to routed effluent domestic TrêsUnit, the In Lagoas trench. in a filtration occurs discharge Unit, Forestry Bonito the in Capão pond; into afiltration water is discharged Unit, Forestry the Paraíba In Valley effluent. domestic and irrigation sources: two from comes Waste water from nurseries EN21) (GRI destination and by quality Total discharge water ® certification requirements, and certification - - - -

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  Fibria | Sustainability Report 2011 tion of this practice, generated savings were approximately R$6.1 approximately million. were savings generated of thispractice, tion and other fertilizers, and contributing2011, In to overall efforts. recycling we estimate that through the implementa purchase of lime the in economies area, producing the in deposited be to amount of waste the reducing of landfills, life useful increasingthe such as advantages, environmental and economic brings operation This (ES). Unit Aracruz the of in plantations for soils corrective as are reused process thisrecycling after and into co-products is transformed waste This process. pulp industrialization the during generated waste are solid grits and ash, dregs sludge, biomass Lime plantations. eucalyptus of the techniques of and preparation, describe soil and fertilization maintenance com.br/web/pt/midia/publicacoes.htm] [www. online are available abstracts whose Plans, Management Forest in the is described application herbicide The processes. these simplifying application, herbicide and fertilization preparation, of soil operations joint for the allows which system, Rotree using areas the of sloped mechanization is the results good that has shown technology A time, conservationists. same and, at the technologies of specialized use the requires increasingly and environments in intensive management is agreatchallenge tocompany’s crucial the competitiveness, productivity, forest Increasing fertilizers. controlled-release using application and Fibria for strategy application aunified aim of establishing the with tools, fertilization recommended newly- water and and of soil managing losses harvesting, from compaction of soil effects inthe soil, matter of organic in 2011, Also costs. and level critical the on security conducted were application studies more gains in logistics, with control system, and management of fertilization automated expansion as well as plantations, on (K) potassium and (P) phosphorus (N), of ofnitrogen formulations number in the reduction resulting the and of fertilization management automated of the toexpansion areview, the led which undergone has recently process fertilization Fibria’s forestry standards. performance set of a and soils of classification technical for the of asingle-source establishment for the allowing in adatabase, 20 last years in the obtained mation infor together is bringing and areas of its mapping in the company invests The planting during cycles. monitoring and strains of operational andregions,different ofthe the results characteristics genetict research differences between into taking account the company’s in operations, the routine are included maintenance. residues These forest harvest post- and strategies fertilization balanced takeFibria’s intosystems, techniques account preparation management soil practices. –are common bark and twigs –leaves, maintenance and residues of crop fertilization balanced conservation, Soil plant growth. that may impact constraints thatenvironmental intakesinto land amanner of the consideration preparation and surveys soil on based areaselection plantation includes practice This sustainability. for is aprerequisite plantation management soil Proper management Soil tonnes/year. to 156,000 reach of mid-2012, is expected plantations the on recycled be that will annual total waste the fertilizer. and As corrective soil –as of waste/year tonnes of –atotal over86,000 plants two by the produced dregs and of ash, sludge 100% recycle will TrêsUnits and Jacareí in the Lagoas construction under units processing two that the is anticipated It of materialrecycled. tonnes to 70,000 around thisamounts Overall 25% and sludge grits. and of dregs of lime 100% with along is ash recycled, boiler of biomass 100% approximately plants, Unit Currently Aracruz the within . fibria - - launched in partnership with the Brazilian Service for the Support of Micro and Small Enterprises (SEBRAE) and the the and (SEBRAE) Small and Enterprises of Micro forSupport the Brazilian the Service with in partnership launched to Table Forest was the Program (RS), Leão do Capão In forests. eucalyptus the planting of within annualthe crops for of seeds donations provides thisprogram participants, Savings Table to for Forest –Created in 2006 Forest Program. Savings Forest the in participating to farmers benefits giving are also Sul, do which Grande Sul Rio and do Paulo, Santo, in Espírito Bahia, Mato São Grosso projects of agroforestry variety a company encourages family farming The in Fibria’s strengthening and economy of areas activity. the diversifying and to boosting has contributed crops other with cultivation integrates of eucalyptus agroforesty, which system The Agroforestry distribution. and of storage logistics the and practices management waste parallel, haveimproved we In also tract. plantation each for are well-defined applied to be type waste timing and application of application, modes formulas, application now and 2000s the throughout continued Research composition. chemical waste, of in its terms plete in com 1992; is amore it as ash began waste biomass solid prioritizing of industrial use Fibria’s the on research early     includes: is planted. This seedling the before long begins care forest Eucalyptus Step ground as little as possible. as little as ground the intention is to disturb The soil. ofthe water on impact direct the cover against aprotective as to act surface soil the on is left branches) and bark material(leaves, organic All small or furrows. holes preparing means This quality. soil of measures and cycle planting tonew the in accordance in response is performed Thereafter, fertilization for analysis. are collected samples soil years, how.six occurand should Every interventions which land, to of and the determine needs the toished, identify plant nour is well the if to determine are analyzed leaves tree in the nutrients cycle, growth eucalyptus the During fertilizer potential. forthe productive best theand soil its to indicate site. is essential on information This performed to be operations and management the to and orient tion aplanta of establishing areais capable the whether that indicate are made maps soil From thisdata, others. among characteristics, chemical and physical morphological, to diagnose are performed tests laboratory and studies Field occur. not will exhaustion such that soil planting cycle, a“stock” next for the of becomes nutrients applied fertilizers of amount pulp. to produce The is ready years, six and, after thistreatment receives eucalyptus planting, the after twoyears Up to field. of life the in moments first in healthy their and to growstrong plants to the allow fertilization of phase first Thisthe is soil.into water infiltration and the to growth facilitate root is prepared soil the At thisstage, Soil mapping Soil preparation for planting

Minimum tillage Minimum Annual tests - by - step soil

monitoring - - -

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  Fibria | Sustainability Report 2011 manner. sustainable a in chain apiculture Valley, Paraíba local of the the to develop ogal the Project with Apiculture Sustainable in the participated ties mainly the to market.U.S. from export, beekeepers for 12215 municipali product the certified which (IBD), Institute Biodynamic the by certified that was level purity and quality of organic was an It produced. were of honey kilos 46,560 Approximately benefited. associations three from 39beekeepers Unit, Jacareí the near Itapetininga, and nito, Itapeva      include: to Leão Forest Capão Some numbers Table are quite significant. results the growth, year ofeucalyptus first in the possible are only combinations of honey.crop Although production and process entire the which oversees - Institute CERTIFICA, Assessment Quality Products Food-Chain Agro the by issued tificate, consultingthe advances: cer environmentally firm, friendly production twoAgroflorestal,important incorporating   in 2011: program’s the about performance more Learn beekeepers. 2011, August In by local used being Bahia, Santoinalready and areas in Espírito implemented to be began initiative the Fibria on farms. eucalyptus of flowering use including the of beekeeping, development to the stimulate Sul,do seeks it (CEDAGRO). Center the Development with for Agribusiness in partnership assistance, fertilizer, training technical seeds, and equipment, provides also It region. in each of aproducer’s association creation the supports Fibria acreage, to offering addition In eventuallythat was implemented. model of the viability the assure to company’s the in lands PIMA, tested College of Queiroz Agriculture (ESALQ/USP), Luiz de the with in partnership Technology Fibria Center, the fertilization, and of forms management appropriate most the as well as To crops, identify to family. each company grants the which plots, half-hectare on year per of cassava kilos 150 to up of 100beans, kilos of maize kilos 4,000 and harvest individually farmers participating The ES. Mateus, in São Geraldo of São Gimuhuna Juara and community in do –and the Lagoa Rosa, Santa rança, Espe Nova Assentamento Riacho,do – Cachoeirinha (ES) Aracruz of municipality the in families in communities five 60 approximately of participation the includes program The growth. tree year of first the during rows eucalyptus the between maize planting cassava ofand the beans, entails –This (PIMA) Food and Wood of Production Integrated Grande, Caçapava, Canguçu,Arroio Cerrito, andAceguá. Candiota, Herval ConceiçãoBarra. da and Mateus São Aracruz, Teixeira Alcobaça. and Freitas de Hives Program houses. processing and extraction of honey construction for the (BNDES) pastureland. and sunflowers beans, cantaloupe, squash, watermelon, In Rio Grande do Sul, 300 beekeepers participated from Capão do Leão, Pelotas, Bagé, Rio Grande, Pedro Osório, Osório, Grande, Pedro Rio Bagé, Pelotas, Leão, do Capão from participated beekeepers Sul, do 300 Grande Rio In of municipalities the from families participated 91 and professionals Santo, beekeeper Espírito eightbeekeeping In of Mucuri, municipalities the from families participated 32 and beekeeper beekeepers professional Bahia, three In ofBo Capão municipalities the In nuclei. into two divided was forests in Fibria Paulo,production honey São In Bank Brazilian Development financingthe from is seeking which network, Creation cooperation of apiculture an Approximately beekeepers involved. 300 of maize, sorghum, hectares than10,000 of areas more cultivated 11 With participating, cooperatives regional – Present in regions where the company operates in Sao Paulo, Mato Grosso do Sul and Rio Grande Grande Sul Rio and do Paulo, inMato Grosso Sao company operates the where in regions –Present - - - - other companies, NGOs and clients. and NGOs companies, other with in partnership restoration biodiversity and monitoring of program synergy seeking Mosaics, Initiative Forestry Sustainable in the participated also Fibria MG). BA and Atlantic Central of the Rainforest region in the (ES, Corridor 2011 corridors. hectares of 3,500 of ecological favor creation process the restoration of the marked beginning the that reserves legal and (APPs) banks sourcesand river are There years. five next Paulooverthe São and Gerais Minas 2011,In Santo, of Atlantic in Espírito Bahia, Rainforest hectares 20,000 of restoring challenge the assumed we plantations. array of forest the with integration and management restoration, initiatives, protection receive areas these (RPPNs), Reserves NaturalHeritage Private and (PPAs) Areas Preservation Permanent (LRs), reserves legal as by Fibria protected legally Being vegetation. native with are interspersed plantations eucalyptus where landscape ing a mosaic form blocks, in and large rivers along are distributed and ecosystems different represented areas conservation These processes. ecological and of Fibria’s biodiversity In 37% land, about areaisconservation earmarked for total ofthe the territory. Brazilian the of tion of occupa process tohistorical due the fragmented, are highly ofvegetation native remnants the although of species, of in number terms biomes world’s richest the are among two first the Cerrado Pampa, the the and Atlanticthe Forest, Brazilian in three biomes: company strategy. operates for Fibria’s The sustainability is apriority conservation Biodiversity Biodiversity cultivation. eucalyptus raising with integrates cattle which producers, for ofsmall-scale income sources to alternative promote area, in in order the rural producers with Project Silvopastoral the is developing Sul, Fibria do where of Mato Grosso raising Cattle     Target 2011 guidelines new to them by adapting models development forest the –Review Goal odology with IMAFLORA (from the Rainforest Alliance system), with the following activities: following the with system), Alliance Rainforest the (from IMAFLORA with odology Result: certified by IBD. by certified as (SP), Bonito ofregion Capão the – in honey eucalyptus organic – product non-wood first its certified Fibria Establish a methodology and certify agricultural products originated from these systems. these from originated products agricultural certify and amethodology Establish Revision of the norm. of the Revision system of the creation Pauloto in the aid Sul, São Santo and do Espírito Grande in Rio days Fiel Sul for do the in Mato Grosso raising) cattle with plantations forest (combining system silvopasture of the Use creation of the Brazilian certification model of sustainable cattle of sustainable model Brazilian of the certification creation Target fully achieved Target fully – Livestock production in the company’s forested areas is being carried out in the Três Lagoas region Trêsregion in the out carried Lagoas is being areas company’s in the forested production –Livestock

. Fibria collaborated in the creation of an agriculture products certification meth certification products of agriculture an creation in the collaborated . Fibria

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  Fibria | Sustainability Report 2011 us to perform variousus forest tomanagement initiatives, perform such as: fauna native and allow flora and plantations eucalyptus between relationship the about accumulated knowledge The EN15. GRI see information more For (IBAMA). list national the on endangered or vulnerable considered 132 of birds, are 25 of species 1,355 mammals and about species these, of 680 species Of presence plant species. the recorded has Fibria Database. thecompany’s in Biodiversity stored are field the in Fauna collected data flora and (ES). in Marilândia partnership in areaof an forest discovered recently Forest, dorhnii Glaucis of the ditionally, conducted was evaluation an  in Fibria’s programs monitoring farms in continued 2011: biodiversity All others. among management, of forest impacts and of biodiversity use sustainable species, endangered of fauna are relevant the inventories, conservation flora and most the Among versity. biodi related to and research 2011,studies In of development the for importance greatest of issues the identified we Atlantic Foundation. the and Rainforest Ethos Institute with in association founders, of its one as Corridor, Ecological in the is involved Fibria Since billion. 2006, of R$3 investment 10an with years, next overthe ares hect 150,000 on trees million of planting 200 estimates with Atlantic of the Rainforest, restoration and preservation to Valley the Paraíba of Corridor the initiative, dedicated Ecological the supported and Paulo, participated we São In      fauna creating a Fast Ecological Assessment Index (IAEF) in managed farms. in managed (IAEF) Index Assessment fauna creatingaFast Ecological between patches offorest native patches between Sul. do of farms in Mato Grosso biodiversity of the of conservation degree high ( Ajaguar fragments. in representative monitored with severalwith institutions to dedicated the conservation: in partnership work we ofin Fibria, which lineof action important an is also species of endangered conservation The for all of Fibria’s level areas. landscape in the of biodiversity indicators us to generate ware that allows –soft BioIndex tool support the with landscape, of the analysis technical on is based initiatives planning of these The of water, regulation flows, others). (wildlife among stability ofregion animals the from movement the At the Jacareí Unit (SP), the Conserv-Ação project carried out the systematic monitoring and diagnostics of flora and and of flora diagnostics and monitoring systematic the out carried project Conserv-Ação the (SP), Unit At Jacareí the Ad areas. partnership in forest also and fragments in birdliferepresentative monitored was (ES), Unit At Aracruz the were vegetation and insects amphibians, reptiles, bats, mammals, terrestrial of birds, groups At (MS) TrêsUnit Lagoas Ecological corridors: Harvest mosaic: maintenance of standing trees in the areas of eucalyptus harvesting to facilitate movement of birds of to birds facilitate movement harvesting of areas eucalyptus in the trees maintenance of standing trees: Bridge maintenance of eucalyptus standing trees harvesting regions in order to maintain environmental environmental to maintain order in regions harvesting trees standing eucalyptus of maintenance strips of eucalyptus plantations connecting patches of native forest in order to to contribute in order offorest native patches connecting plantations of eucalyptus strips Panthera onca Panthera , one of the rarest hummingbirds and threatened Atlantic threatened hummingbirds and rarest of the , one ) was recorded in company areas, which indicates the the indicates in which company areas, recorded ) was - - - - (COP-10) Nagoya. in Conference by the of Parties proposed targets the with to comply necessary actions the to implement ernment gov the with in talks involved company is also the (MEB), for Corporate Biodiversity the Movement under Also, to ensuresurvival. in their order species of thisendangered study the to encourage of Muriquis Conservation for the Plan Action National the promotes Institute The (ICMBio). Conservation for Biodiversity Institute in Brazil monkeys Chico muriqui by the Mendes southern in 2011 considered was by Fibria and conservation-the- areas research for owned important most five of the one farm, This (SP). in Pindamonhangaba Grande Ribeirão do FazendaSebastião at the São Pro-Muriqui Association by the     ing resources from Fibria’s suppliers and other companies in the region. See more in www. more See region. in the companies other Fibria’s from and ing resources suppliers receiv Fibria, and IBAMA in 2011 Interest) of Public between Organization apartnership as maintained is and currently Society (Civil OSCIP an as recognized was recently association The nurseries. has 56 currently and by Fibria donated since 1993. CEREIAS through 11.5 animals have occupies been CEREIAS into 80,000 nature.for release Nearly hectares them rehabilitating takenpopulation, or the by the surveillance by trafficking from rescued wildlife receives CEREIAS tute of Education, Research and Conservation Marcos Daniel (IMD), Pró-Tapir monitors tapirs ( Pró-Tapir tapirs monitors (IMD), Daniel Marcos Conservation and Research tute of Education, the looting of nests for the purposes of trafficking the young. the of trafficking purposes for the of nests looting the to and reduce region in the species of the in population toincrease contributing the (SP), in Itapeva sinceby 2006 Fibria protected areas in the north of Espírito Santo: the Biological Reserve Deer Creek Antas. Fibria’s das and Retreat Deer RPPN Reserve Biological the Santo: of Espírito north in areas the protected

2011 Total value biodiversity high of those and/or areas protected to adjacent land managed or leased own, of Size EN11) (GRI areas value protected outside biodiversity high of areas and L and/or those of high biodiversity value biodiversity high of those and/or areas protected in land managed or leased own, of Size 2010 Adjacent Within Adjacent Within Conservation and Monitoring of the Espírito Santo Tapir (Pró-Tapir) Project ManagementProject and Conservation of the blue-fronted parrot ( Monitoring Project of the Southern Muriqui ( Muriqui Southern the of Project Monitoring – A project created in created 1993 –Aproject Santo, in byEspírito Fibria (CEREIAS) Animals Wild of Reintegration for Centre owned land size of and ocation Own, leased of of leased Own, Own, leased of of leased Own, partnerships partnerships partnerships partnerships 155,346.5 161,801.2 20,964.8 24,725.2 (ha) (ha) Partnerships Partnerships Partnerships Partnerships 15,852.2 16,735.7 7,949.5 7,524.4 , leased (ha) (ha) in , managed Brachyteles arachnoides Brachyteles 172,082.2 177,653.4 28,489.2 32,674.7 Total Total (ha) (ha) adjacent, or to partnerships (km partnerships partnerships (km partnerships Own, leased of of leased Own, Own, leased of of leased Own, – conducted in partnership with the Insti the with in partnership –conducted Amazona aestiva Amazona 1.553,5 1,618.0 ) 209.6 247,3 – Monitoring conducted since 2006 since 2006 conducted – Monitoring 1,828 km 1,618 km 1,618 2 2 ) ) 210 km 210 areas , protected 2010 Partnerships Partnerships Partnerships Partnerships cereias 2 2 2 Tapirus terrestris (km (km 158.5 167,4 ) 75.2 79,5 – Project supported supported Project – .com.br. 2 2 ) )

1,775 km 1,553 km 1,553 ) in two ) in two 1,776.5 222 km 1720,9 (km (km 346,8 284.9 Total Total 2011 2 2 ) ) - - - 2 2 2

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  Fibria | Sustainability Report 2011 of plagues and diseases, avoid the introduction of invasive species, as well as protect rare, endemic and threatened threatened rare, and endemic protect as well as of invasive species, introduction the avoid diseases, and of plagues are taken to measures prevent minimize and occurrences Sul states), do Santo, Mato Grosso and Gerais Bahia, Minas below lists and describes the most common impacts of the company’s operations. of the forest impacts common most the describes and lists below table The operations. forestry nature the on of its primarily is based biodiversity on impact Fibria's of its management environmentalISO under management is certified 14001. Fibria's of model impacts. relevant most the treating for are defined mechanisms and reviewed, is periodically Matrix Impacts and Aspects Environmental of the status The impacts. reinforce and positive impacts environmental negative minimizeto order in aspects environmental monitoring and identifying for procedures and policies has defined Fibria EN12) (GRI areas protected outside value biodiversity high of areas and Description of onand significantbiodiversity services of inimpacts products, activities, areas protected Since Fibria’s forest plantations are certified FSC by Since Fibria’s are certified plantations forest biodiversity. on impacts negative any significant detect not did program diagnostic 2011, In used. measures of the by evaluatingeffectiveness out the are carried monitoring and Fibria's and monitoring ensureto maintenancethe are implemented of natural resources. Conservation activities specific Pro-forest, NGO the by proposed usingcriteria international identified be can which Value (HCVAs), Areas Conservation of areas High In Decrease of biodiversity Decrease soil the of changes microbiological and physical Chemical, climate changes of Intensification air the in changes physical and Chemical fauna and flora aquatic in Changes landscape the in Changes fauna and flora wild in Changes Impact composition from the original and break the former balance. former the break and original the from composition adifferent have can but naturally, occurs Re-population bed. sea the from organisms benthic disturbs State, Bahia Caravelas, at Tomba channel the from sediment of removal and excavation The soil. the in changes microbiological and physical chemical, cause can dumps licensed in waste non-toxic and toxic of discharge chemicals, various as well as activities, forest in used equipment and machines from liquids other and fuel oil, lubricating diesel, of spills fires, Possible biodiversity. affect adversely could which table, water the and vegetation currents, air in changes to lead could changes climate long-term and Medium gases. greenhouse emit that lime and fertilizers nitrogen-based equipment, diesel uses company The forest management, including forest fires. for used machines and vehicles by gasoline and ethanol fuel, diesel burning by produced gases and particles solid of emission to due primarily occur can air the of changes physical and Chemical during shipping and of leakingduring transfer fueland otherliquids ships. from cetaceans with collision as such risks several also are There areas. these of biota the in changes cause consequently and currents of circulation of patterns the change can sediment of removal and the aquatic with and biota that are interact likelysubstances to aquatic disturb fauna. Excavation chemical and nutrients particles, of dispersal to lead can operations Dredging life. bird local of behavior the disturb and environment marine Terminal or Maritime Caravelas the around mangroves the in reproduce that species aquatic away chase can dredgers or barges by created Noise landscape. the in changes constant causing cycle, growth the of end the at harvesting to strata forest intermediary and undergrowth through passing forest, the of strata upper the to ground, the to close strata, herbaceous the from ranging plantations reach various levels of stratification, eucalyptus planting and harvesting, Between management. forest for equipment and machines of transit for or bridges and drains roads, of construction for Areas) Preservation (Permanent APPs in interventions small areas, conservation or plantations in fires forest by caused vegetation of suppression of result the as or over run off, scared being animals by occur can flora and fauna wild in Changes Examples ® (Mato Grosso do Sul and São Paul states) and by CERFLOR (Espírito by and CERFLOR (Espírito Paul states) Sul São and do Grosso (Mato this initiative are available at www. at available are initiative this on details More hectares. than6million areaof overan more distributed stations of monitoring integrated network usingan two years, over biodiversity in of changes detection will allow program monitoring unified new This impacts. those that prevent mitigate or activities and for decision-making abasis as area’s in the fragments forest biodiversity are affecting in use land changes how and is ofto State. Bahia evaluate main goal whether The part southernmost the in biodiversity for monitoring in 2011 methodology importance mosaics special forest Of sustainable of the use the was plantation. of anew establishment after number returnto original the species that several shows monitoring operations, harvesting Even after of vegetation. native fragments between atransitconnection as areaand functioning from apart by many species, habitat as are used tions planta eucalyptus that 15% the found Atlantic –indicate in –approximately the areas Rainforest species of existing management in forest of bird species of number ahigh presence The areas. management in live its or that frequent bird species now, monitoring has been Fibria thanadecade more For biodiversity. on activities by forestry produced effects of the indicators reliable are birds considered environment, in the to disturbances greatsensitivity to their Due biodiversity. on operations of its to evaluate impact in byorder the Fibria monitored mainBird lifeobjects of the is one company's the from resulting operations. processes in ecological change no showed 2011, In practices. company's management of the forest part are already measures these All monitoring our species. 2. Vale do Paraíba and Capão Bonito. Capão and Paraíba do Vale 2. capacity. Três Lagoas production the mill's at the of primarily expansion land, of the for Unit purchase the and next the to year one from vary can which changes of programs, result the development and primarily are areas in partnerships Variations areas, units. leased in conservation protecting for governments State with Paulo Sao of partnerships has company The University the of Restoration (LERF/USP). Forest and Environment the for Laboratory the and Pact accordance Restoration in areas Rainforest restores Atlantic Fibria the of protocols the Reserves). with Legal and Areas Preservation (Permanent Brazil in conservation for used areas include mentioned areas 1. The H abitats restored or protected Size of protected habitats 2010 Savanna 2011 2010 Atlantic Rainforest hectares) (in 2010 Restinga biome 2011 2010 Mangrove 2011 2011 2011 2010 Pampa biome dialogoflorestal 124,060.0 123,570.0 Aracruz 4,785.6 5,270.0 1 (GRI EN13) (GRI – – – – – – .org.br/publicacoes. 55,620.0 Jacareí 55,767.2 7,690.0 7,420.0 – – – – – – 1 Três Lagoas 88,620.0 10,980.0 65,576.0 6,282.0 – – – – – – Capão do Leão do Capão 60,210.0 59,725.2 – – – – – – – – -

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  Fibria | Sustainability Report 2011 ares were restored by Fibria. by restored were ares 2011, In ofhabitats. native restoration is the hect Currently, to biodiversity 2,800 atotal connected main goal the logistics. operational of optimization and cattle) and (fires pressure anthropic less with areas etation, veg native of fragments to connect opportunities obligations, other and licenses operating of conditions the fulfilling and obligations legal takesinto areas parameters: account to following restoration the priority of giving criterion The amongothercies, initiatives. nation of restoration and, exotic of in endangered species, management species several of cases, endangered spe elimi the such as areas, in protected of biodiversity conservation promotes program restoration Fibria’s biodiversity taken into issues account. of the are some of biodiversity conservation and streams, and springs of water protection issues, guidance, social cutting corridors, ecological in mosaics, Harvesting recommendations. long-term and from stakeholders requests petitions, licensing legal and monitoring, environmental and from studies results photographs, aerial and analysis cartography such as preparation, for their tools by using various begin tions opera before harvest are made and recommendations studied Therefore,are areas the benefits. increase and impacts adverse reduce and is to identify goal whose sustainability), and cartography environment, forestry, harvesting, (roads, management of areas forest for various scale alocal on activities as proposed (RSAs) Recommendations ronmental Socioenvi thisby applying is doing Fibria aspects. environmental and into social issues ing by integrating economic monitor environmental of its results of the use is forthe Fibria management of forest challenges biggest of the One by Fibria. managed areas in the that (plantphysiognomy) of characterize the vegetation found the various ecosystems aspects erations, identifying company has op the where units of environmental in 10fragments monitored be will groups representative These (flora). vegetation woody mammals land and large-sized and medium life), (bird birds indicators: of bio groups using three made be will level, monitoring community At local Planning Units. ofin areas Landscape grouping the into taking account operates, Fibria where areas in all the software by BioIndex produced data uses biodiversity of level,monitoring At landscape communities. local and landscape levels: at two evaluate will biodiversity Fibria 2012, For biodiversity. on toment Units. plan other that monitoring is to extend goal the manage of forest 2011, toIn evaluate effect in order the Plan Monitoring Biodiversity its prepared Unit Aracruz the biodiversity. to conserve initiatives joint and Units of Conservation management programs, education environmental restoration of for of management, endangered native practices species, biodiversity,landscape conservation areas, of fauna monitoring and flora, and studies include projects The projects. 52 out biodiversity carrying is currently Fibria EN14) (GRI biodiversity on impacts managing for plans future and actions, current Strategies, ------Endangered) Critically – (CR by affected operations areas in 2011 Category IU N 2. Forest partnership areas have been included in the Aracruz Unit. Aracruz the in included been have areas partnership Forest 2. Bonito. Capão and Paraíba 1. do Vale processes monitoring flora and fauna Fibria’s from available made Data OBS: the IUCN the by evaluation no or data, sufficient of lack or concern, Minimum species Total Endangered) – (EN Vulnerable) – (VU Risk) –Low + LR Threatened –Near (NT IUCN speciesumber R of the on C N Plants Group Birds Fish Mammals Crustaceans Mammals Amphibians Plants Birds Amphibians Reptiles Reptiles Fish Fish Crustaceans Crustaceans Birds Plants Reptiles Amphibians Mammals Plants Crustaceans Fish Birds Mammals Amphibians Reptiles Fish Crustaceans Plants Birds Mammals Amphibians Reptiles Fish Crustaceans Plants Birds Mammals Amphibians Reptiles C IU 362 470 39 10 19 – – – – – – – – – – – – – – – – – – – – – – 1 2 2 1 7 4 4 6 Jacareí (SP, MG) Jacareí N I bama 486 382 490 387 40 50 – – – – – – – – – – – – – – – – – – – – – – – 4 1 – 5 9 – – – – 0 0 0 0 ed L e risk of , by level IBAMA C IBAMA and ist State State (SP) List 481 355 30 16 12 – – – – – – – – – – – – – – – – – – – – – 2 1 3 2 3 6 9

7 1 C IU 302 Três Lagoas Três Lagoas 271 58 34 33 – – – – – – – – – – – – – – – – – – – – – 1 1 – 7 5 2 4 4 4 N (MS) 283 307 36 67 33 0 0 I bama 306 281 onservation L 59 36 33 – – – – – – – – – – – – – – – – – – – – – – – 1 1 8 – – – – x (GRI EN15) (GRI tinction C IU 486 841 72 85 47 25 51 13 12 17 – – – – – – – – – – – 2 1

5 4 1 – – 3 – 1 – 3 3 N (ES, MG, BA) MG, (ES, Aracruz I bama 854 503 864 519 48 habitats species of with ists 85 25 74 51 48 79 85 52 25 11 – – – – – – – – – – – – – – – – 1 5 4 – 5 5 – – 1 – – State State (ES) 2 List 470 814 48 66 84 50 20 18 25 20 12 19 – – – – – – – – – – – 5 1 4 1 – 8 – – 2 – 5 – C IU 245 515 26 47 57 37 – – – – – – – – – – – – – 1 – 2 – – – – 3 – – 1 – 1 6 4 Capão do Leão Leão do Capão N I bama (RS) 249 516 256 517 26 47 57 37 38 26 57 51 – – – – – – – 1 – – – – – – – 2 – – – 4 1 – 2 – – – 1 – – 2 State State (RS) 483 246 list 56 36 26 41 10 21 – – – – – 3 – 1 – – – – 2 – 2 – 1 – 7 8 – – – 1 1 – –

C IU 1745 683 104 136 134 94 25 16 18 35 10 13 – – – – – – – – 3 1 – 7 – 8 – 2 – – 7 – 1 3 – N Fibria Total 1786 108 134 742 155 95 25 I bama 1773 140 106 134 716 95 25 18 12 – – – – – – – – – 2 – 7 – 6 – 1 – – 6 – – – 2 – – 2

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  Fibria | Sustainability Report 2011 to grasp the systemic dynamics of the ecosystem. This is due to the limitations of existing models. of existing tolimitations is due the This ecosystem. of the dynamics systemic to the grasp able being without negative, and positive both analyses, qualitative and quantitative today isto limited isolated analysis study. impact in bythe Fibria The prioritized initially services ecosystem of the summarizes some table following The amongothers. ment services, treat waste and bioenergy fertility, of soil regulation the addressed also study the techniques, valuation Through services. of value ecosystem the appreciating from obtained be can that of information type the exemplifies study This concluded. study the species, forest of the 94% to rise would for 25, US$ traded were preservation by 2100; atonneof if carbon and extinct become would species 36,000 payments, these Without biodiversity. of preventloss policies credit carbon thatthe Climate affirmed Change Nature journal in the Arecentarticle 159). such tosequestration. on avalue place page However, sought also study the the on Climate Governance chapter(see several years for quantified has been –already atmosphere the from dioxide carbon to absorb greatcapacity evaluated –the services of the One ecosystems. the with relationship interdependent has astrong tocompany –which the applicability its and methodology the to was learn goal The model. agement man forestry its from derived 2011, services In of value ecosystem atthe increasing aimed aproject started Fibria before. years 50 existing to those compared are degraded services ecosystem world's of the that 60% revealed in 2005 Assessment Ecosystem Millennium international The them. thus protecting form, and in atangible of ecosystems importance away as of the emphasizing proposed has been services these from benefit economic establishing and and Identifying of flora fauna climateand regulation. conservation pollination, sis, photosynthe – as such vital equally but obvious less the to water asand fresh such food benefits, basic most from the humanlife. They range in benefit naturethatproduced benefits of all the consist services environmental, or Ecosystem, services Ecosystem *Adapted from The value of the world's ecosystem services and natural capital, capital, natural and services ecosystem world's the of value The from *Adapted Photosynthesis Dependency Bioenergy Bioenergy Regulation of Soil Fertility Fertility Soil of Regulation Climate Regulation Regulation Climate Disease regulation regulation Disease Waste treatment Water Nature Magazine Nature I Regulation of Erosion of Regulation fauna) and flora for (habitats Refuge mpact (positive or negative) or (positive mpact . - - - Energy tion, such as training drivers and the maintaining equipment. the and training such as tion, drivers consump that reduce for solutions search the stimulates of diesel, use supplier’s toeconomical revenue of the the part supplier.links by the paid which be model, must This difference the is missed, target consumption diesel hand, the if other the On difference. for the is paid consumption alower that achieves supplier the and is established, kilometer per ofdiesel consumption A fixed companies. by external conducted transportation for wood is adopted A similar strategy thereforetors, stimulating in consumption. the reduction opera of the remuneration variable of the monthly, is apart and is analysed equipment of the consumption energy The transport. for wood trucks and equipment are agricultural operations forestry in the of energy main consumers The EN6) (GRI initiatives these of aresult as requirements energy in Initiatives toorrenewable provide and andreductions energy services, energy-efficient products based MWh The energy consumption of the Forestry Units varies according to the average radius of the operation. the of radius average the to according varies Units Forestry the of consumption energy The D included inthecalculation. Obs: The 2011values aregreaterastherewas animprovementintheconsumptioncontrolelectricenergy, andthereforeagreaternumberofsourceswere fuel Marine Diesel N fuel Marine Diesel N energy indirect consumption and irect on-renewable on-renewable litres litres GJ GJ 2009 215 22,279,904 795,954 2009 2009 – – Jacareí U Jacareí 2010 980 Jacareí U Jacareí Jacareí U Jacareí 26,682,442 953,236 nit 2010 2010 – – 2.078 2011 nit nit 26,860,974 959,614 , by energy primary EN4) EN3 and source (GRI 2011 2011 – – 2009 648 40,606,708 1,450,683 6,242,750 223,023 Aracruz U 2009 2009 F orestry 4.382 2010 nit Aracruz U Aracruz U 38,951,267 9,732,900 1,391,542 F F 347,710 orestry orestry 2010 2010 2.609 2011 nit nit 10,687,000 59,021,226 2,108,545 381,795 2011 2011 2009 144 Três Lagoas U Três Lagoas 9,336,209 333,538 2010 1,025 2009 2009 – – Três Lagoas U Três Lagoas Três Lagoas U Três Lagoas nit 14,219,598 1,569 2011 507,998 2010 2010 – – - - nit nit 18,258,044 652,272 2011 2011 – –

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  Fibria | Sustainability Report 2011 Waste Reutilized Coprocessed Landfill Incinerated Others The dataisprovidedbyspecializedcompaniesresponsible forwaste disposal. The disposalismade T Others Unit the at Stored Re-refined(used oil) Hazardous waste Recycled Recycled Landfill Recycled Reutilized Composted N (GRI EN22) (GRI method disposal and , byotal waste type of weight on-hazardous wasteon-hazardous

pieces pieces pieces pieces tonne tonne tonne tonne tonne tonne tonne tonne tonne tonne tonne tonne tonne U U litres m³ nit nit Year Year 2010 2010 2010 2010 2010 2010 2010 2010 2010 2010 2010 2010 2010 2010 2010 2010 2010 2010 2010 2011 2011 2011 2011 2011 2011 2011 2011 2011 2011 2011 2011 2011 2011 2011 2011 2011 2011 2011 Aracruz Aracruz 340.61 375.19 3.262 5.953 0.00 0.00 0.00 1.65 3.18 640 252 332 129 NA NA 79 95 in accordancewiththetypeofwaste. 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 and Capão Bonito) and Capão and Capão Bonito) and Capão ( ( V V ale do Paraíba Paraíba do ale ale do Paraíba Paraíba do ale Jacareí Jacareí 122.82 65.016 114.43 34.94 80,98 19,88 14.49 4,592 20.31 13,58 74.92 7.93 684 293 422 475 6.2 39 75 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Três Lagoas Três Lagoas 48,070 15,860 28,020 18,538 130,54 119.42 14.04 1,587 38,17 67,14 929 178 178 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 0 Investments   main areas: into two of is pulp divided process production The operations Industrial remuneration Fibria and is measured monthly at the Industrial Units of Aracruz (ES), Jacareí (SP) and Três(MS). and (SP) Lagoas Jacareí (ES), of Aracruz Units Industrial at the monthly is measured and Fibria remuneration Fibria’sof variable part employees’ which is below), IDA shown (as final the ofvalue of the composition for the weights pollution control,elements: preventionpollution and environmental management. three itemsThe have different important three that analyzes tool amanagement (IDA), Index Performance Environmental has the Fibria process, Environmental Performance Index (IDA) the industrial wastewater treatment. T (fauna, flora and flora water (fauna, resources) Environmental studies and monitoring Emissions Waste Costs Others cost) (fixed management Environmental (APP and RL)² and (APP areas protected and degraded of Revegetation Total

Recovery and Utilities Production of pulp, which in turn is divided into: divided is turn in which pulp, of Production otal e protection environmental   into bales suitable for transportation. suitable into bales Pulping of cellulose (line of fibre) – to chemically extract the cellulose fiber from the wood, bleach it and turn it and it turn bleach wood, the from fiber the cellulose extract – to chemically of fibre) (line of cellulose Pulping fibers; pulp the removing for mechanically wood the in preparing –consists chips of wood Production – the area responsible for supplying water, steam and energy by recycling materials and for for materials and water, for supplying by recycling energy arearesponsible and –the steam x (GRI EN30) (GRI by type investments and penditures – To check the environmental quality of activities related to the industrial to industrial related the of activities –To quality environmental the check U R$ R$ R$ R$ R$ R$ R$ nit 2010 2011 2010 2011 Year 2011 2010 2011 2010 2011 2010 2011 2010 2010 2011 18,808,410.10 9,715,965.88 12,769,300.04 4,414,584.27 1,364,837.28 6,813,029.54 1,057,005.75 769,890.44 768,208.62 567,520.04 Aracruz 0 0 0 0 do Paraíba and and Paraíba do Capão Bonito) Capão 4,786,461.22 Jacareí ( Jacareí 4,055,637.19 1,934,654.50 2,029,180.80 1,316,829.81 1,512,487.14 1,117,079.68 103,222.49 319,662.82 216,525.15 132,713.61 119,017.41 40,725.00 V ale ale 0 2,256,176.43 Três Lagoas 957,890.36 334,472.78 120,978.22 478,357.54 832,118.94 836,912.14 611,227.17 0 0 0 0 0 0 Capão do Leão do Capão 299,876.80 331,518.56 299,876.80 331,518.56 0 0 0 0 0 0 0 0 0 0

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  Fibria | Sustainability Report 2011 of energy, productivity. increasing and use labor, rational and the equipment enables costs reducing This are reduced. supplies when pace same the maintain can that they so of processing, stages intermediate inpulp the of raw materialor stockpiles are large there when thanfull capacity at less to operate able be mills should the words, In other productivity. low and high between oscillations controls flow to and avoid pace production implies which TrêsUnits, and Jacareí millsAracruz, of at the Lagoas stability focusis to operational improve the project’s The in production. pulp involved all from levels of professionals participation the with Units, Industrial in program,initiated among 2010, This performance. of experience exchange the on based was maximum for achieving standard operational acommon unit to of each establish practices best the to incorporate benchmarking Internal schedule. righton were Jacareí and while Lagoas Três expected, operations than earlier resumed hours 12 fiberlines Aracruz’s three successful: were According all of toFibria’s thiscriterion, possible. as 2011 soon as quantity and quality duction maintenance shutdowns pro to and normal plant returning GS to Succesful the operation means restart. is the stoppage the as important As 24heater. July from GS PauloUnit’s 3. occurred to August São The super boiler’s including 21 of equipment, recovery for the tubingpanels avariety replacing and renovations planned performing facilities, the in to inspect called were workers 1,800 and companies Paulo, 44 São Jacareí, In productivity. plant affecting were area, which drying and woodyard in the to eliminate used was bottlenecks 27 It June 6. July and between 1,600 and Sul, professionals, do GS 72 the involved companies At in Mato Grosso TrêsUnit, the Lagoas professionals. 1,400 approximately and companies 89 were in thiswork Participating control equipment. remotely to operators allows which Control (SDCD), System Distributed changing Digital ofthe the enabled also interruption May alternately, June stopped, between and 15 Unit annual The Aracruz 10. C–the and A, Bof – fiberlines three The occurred, in which maintenance 2011,Fibria shutdowns, these on work to specifically May and August. between are hired of professionals hundreds and Dozens of companies projects. of modernization priate, implementation the appro and, when by law, required ensure productivity (GS), Stoppages General maintenance. and These inspection Maintenance shutdowns production Pulp T measures and groups IDAhe is composed several of Management (25%)Management Prevention (25%)Prevention Control (50%) – During the year, Fibria made advances in its industrial benchmarking project, which aims aims which project, benchmarking industrial year, the –During in its advances made Fibria – Fibria’s Industrial Units interrupt their activities for a few days each year for equipment for year equipment for each afew days activities interrupt their –Fibria’s Units Industrial          Solid waste (30%) (35%) Effluents Atmospheric emissions (35%) Sustainability (30%) Sustainability liabilities Environmental (40%) (30%) permits Environmental (40%) program management Risk (35%) Ecoefficiency (25%) change Climate : - - - Recovery and Utilities and Recovery over20 thisvalue to was achieve years). which target, original the (surpassing in synergies billion in gains 2011, oftonnes R$4.5 Value Present (NPV) Net company with the provided also thousand by 90 production increased which Unit, Aracruz at the especially performance, in industrial improvement The in 2010,produced CONPACEL when company. of the part was 2011. in January sold amount same the pulp, almost of hardwood 5.26 tonnes million mills produced three Hence, our in 2010 produced entire the volume to almost of is pulp.equivalent tonnes This byadditional CONPACEL, was which 131 yielded 2011, In Units at Fibria’s thousand Industrial three stability operational gains improved from productivity Diesel oxygen, peroxide, etc.) peroxide, oxygen, hydrochloric acid, chlorate, sulfuric acid, (soda, Chemicals Wood M D materials N Natural gas etc.) sand, methanol, limestone, coil, bunker oxide, (calcium Chemicals oils hydraulic and Lubricant solventes and Inks Total 7A oil Fuel 3A oil Fuel Grease irect materials on-renewable on-renewable (GRI EN1)aterial used volume by (GRI or weight 262,366.70 64,225.60 47,376.60 (tonne) (tonne) weight weight weight weight 16,849 Total Total Aracruz U Aracruz U

101,525,830 101,329,716 8,480,694 volume volume volume volume 161,891 25,691 nit nit 8,532 Total Total (m (m 3 3 ) )

81,387.20 (tonne) (tonne) weight weight weight weight 38,669 36,332 2,337 Total Total Jacareí U Jacareí Jacareí U Jacareí

85,292,765 85,292,765 3,736,893 volume volume volume volume nit nit Total Total (m (m 3 3 ) )

77,808.06 9,778.71 (tonne) (tonne) weight weight weight weight 14,603 4,824 Total Total 0.31 Três Lagoas U Três Lagoas Três Lagoas U Três Lagoas

54,895,210 54,895,210 4,042,480 volume volume volume volume Total Total (m (m nit nit 3 3 ) )

421,561.96 117,497 (tonne) (tonne) weight weight weight weight 16,849 36,332 57,155 Total Total 7,161 0.31

Total Total 241,713,805 16,260,067 241,517,691 volume volume volume volume 161,891 25,691 Total Total 8,532 (m (m 3 3 ) )

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  Fibria | Sustainability Report 2011 consideration. into taken been have sources other therefore, and, consumption electricity of control better was there 2011 for because Figures higher are Note: Matrix Sustainability production of pulp of production the in used Energy MWh Natural Gas Fossil fuels Methanol Electrical energy bought energy Electrical Diesel 7A Oil – Liquid Biomass fuels Renewable CNG – Solid Biomass D 2. adt = air dried tonne dried =air adt 2. energy electrical for only is consumption 1. Specific energy Electrical by the Units the by Total generated energy Oil 1A Oil Oil 3A Oil Marine Fuel energy indirect consumption and irect Energy operational conditions and can lead directly to reductions in fuel consumption and increased productivity. increased and consumption in fuel to reductions directly lead can and conditions operational to improve developed are Projects stability. equipment and according to varies availability consumption energy Specific GJ GJ GJ GJ GJ GJ GJ GJ GJ GJ 1 19,862,220 1,294,427 2,465,071 626,562 573,027 101,784 2009 160,466 83% 2009 – – – – MWh/ MWh/ MWh/ U adt adt adt nit 2 2 2 Jacareí U Jacareí 20,559,821 2,845,940 1,304,850 Jacareí U Jacareí 202,878 216,258 69,627 0.6999 2010 83% 225,442 Min 2010 – – – – benchmark benchmark BRACELPA – – report nit nit 0.7355 Max 20,507,369 1,398,884 2,944,767 642,653 – – 93,545 66,148 2011 83% 149,529 by energy primary EN4) down EN3, broken and source (GRI 2011 – – – – 0.6333 0.0152 0.6585 2009 44,334,713 3,338,750 7,494,995 464,469 208,423 Aracruz U 119,923 2009 93% 498 35,537 2009 0.6333 0.0132 0.6614 – – – 2010 nit Aracruz U 44,894,750 0.6056 0.0105 I 0.6342 3,347,069 Aracruz U 7,215,916 2011 ndustrial I 218,250 318,425 133,917 ndustrial 2010 1,147 93% 32,722 2010 – – – nit 0.6619 0.1499 0.6613 2009 nit 45,861,049 5,965,161 3,512,753 164,894 301,296 187,822 2011 93% Jacareí U Jacareí 918 24,380 2011 – – – 0.6464 0.2093 0.5817 2010 nit 16,250,916 1,294,518 1,132,954 109,286 654,219 15,530 11,451 0.6336 0.6328 0.1356 2009 90% 2011 2009 6,458 – – – Três Lagoas U Três Lagoas Três Lagoas U Três Lagoas 0.0080 0.5056 0.6916 2009 22,961,334 1,999,686 1,192,739 284,094 184,538 34,171 9,004 Três Lagoas U Três Lagoas 2010 91% 7,446 2010 – – – 0.0063 0.5694 0.8207 2010 nit nit 23,103,864 1,198,494 1,937,934 361,331 161,416 28,584 14,944 2011 91% 8,320 2011 0.0068 0.5361 0.7795 nit 2011 – – – Water tional processes. Três Unit: Lagoas       Aracruz Unit: Energy savedEN5) (GRI through conservation and efficiency     Três Unit: Lagoas to in consumption, relation 2010.energy specific and gross in both that ensuredreductions tools Sigma Six Aracruz Unit: Aracruz Unit: EN6) (GRI initiatives these of aresult as requirements energy reducing sources, renewable Initiatives to provide andwith services low products power consumption or that use energy generated by Jacareí Unit: Jacareí Unit: air, of steam, in waste, leakages such as water, and reductions things. other among to group seek by formingamultidisciplinary work conservation energy our We began of 22 tonnes/h. adecrease tered regis consumption steam average and 3MWh was consumption in energy since 1978.operation reduction mean The Jacareí Unit: Jacareí Unit: tices and technology benchmarks. technology and tices prac available best thanthe lower are already units company’s of the production pulp levels three consumption The process. of is to Fibria’smanufacturing pulp in optimize the water consumption One challenges main environmental

1. Values according to the publication Best Available Techniques (BAT) by the Integrated Pollution Prevention and Control (IPPC) (2001) bleached hardwood Kraft pulp. Kraft hardwood bleached (2001) tonne. dried air 2. (IPPC) Control and Prevention Pollution Integrated the by (BAT) Techniques Available Best publication the to according 1. Values - Specific consumption of water of consumption - Specific I due to internal efforts todue to improve internal efficiency. energy efforts self-generation to date; toself-generation date; in search of new opportunities for savings. opportunities of new in search in 2011; in consumption; ndicator Showed no reduction in gross energy consumption in 2011.There consumption energy in gross reduction no Showed consumption fuel in specific asmall was oscillation Continually seeking improvements in operational performance. Energy balances are examined monthly by specialists by specialists monthly are examined balances Energy performance. in operational Continually improvements seeking Work is also ongoing to reduce steam loss and improve processes with the aim of improving energy efficiency energy aim of improving the with improve and processes loss to steam reduce ongoing Work is also matrix; energy in the fuels share continueof the renewable to increase Efforts Continues to develop initiatives aimed at reducing energy consumption. These initiatives are supported by P+L and and by P+L are supported initiatives These consumption. energy at reducing aimed Continues initiatives to develop Steady reduction in fuel oil consumption, 11,597 from oil in fuel Steady reduction to 7,950 in 2009 tonnes in 2010 tonnes 7,523 and tonnes There has been steady reduction in the consumption of electricity from the grid, which indicates our best level of of level best our indicates which grid, the from of electricity consumption in the reduction steady has been There In May 2011, May In in plant of aging an that been had in replacement A, plant in Fiberline of bleaching our deployment Seeks to enhance its operations through the maximum use of biomass or renewable energy sources in its opera in its sources energy renewable or of biomass use maximum the through operations to enhance its Seeks In May 2011, May In electricity and energy thermal in resulting reduced into plantoperation came bleaching anew

m U 3 /adt nit 2 Reference 30 -50 30 1 2009 36.1 Aracruz U 2010 35.6 nit 2011 34.1 2009 21.2 Jacareí U Jacareí 2010 19.8 nit 2011 22.5 2009 43.68 Três Lagoas U Três Lagoas - - - 2010 40.11 nit 2011 37.18

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  Fibria | Sustainability Report 2011 Total (m Total 1. All water consumed by Fibria’s Industrial Units is from surfacewater sources. surfacewater from is Units Industrial Fibria’s by consumed water 1. All T (m³/day) consumed Volume otal water withdrawl 3 ) 108,394,560 Três Lagoas Unit Três Lagoas parameters. and microbiological biological chemical, physical, of the analysis quantitative and are taken for qualitative Water changes. samples possible for control, and of prevention checking purpose of for water, the monitoring environmental body the on conduct we erage withdrawl of the Unit is 0.7m Unit of the withdrawl erage analysis of the physical and chemical, biological and microbiological parameters. parameters. andmicrobiological biological and chemical, of physical the analysis quantitative and are taken for qualitative Water changes. samples for control, possible and of prevention checking purpose of water, monitoring, the for body environmental the on we conduct no impact is there flow. river Although 0.01% represents withdrawal our words, other of the In m³/s. is 9,500 of source waterTrêsUnit, foris the the Lagoas   Aracruz Unit EN9) (GRI withdrawl by water affected significantly have been that sources Water in 2011,tonne of produced pulp to m 50 30 reference the (of value below consuming of 22.5 average an benchmark, Paulo, of water of ism³ for a global São every state in the Unit, Jacareí The panies and processes make use of the effluent after treatment, for example in drip irrigation. Before the Beforethe irrigation. drip in example Treatment for treatment, after make effluent of the use processes and panies incom after treatment Some Wastewater Plants. of Fibria’s makesfinal effluent Treatment of the use None Units EN10) (GRI reused and recycle water of volume total and Percentage damage capableofjustifyingtherequirementforanEIA/RIMAproject. The appealiscurrentlypendingdecision. because thatdeadlineisexiguousgiventhecomplexityofstudy. Inparallel, Fibriapresentedanappealwhich questions, amongotherthings, theexistenceof of theappealbroughtbyFibria, theFederal Courtofthe2ndRegionissuedadecisionsuspendingobligationtosubmit EIA/RIMAwithinsixmonths, Environmental Impact Assessment andanEnvironmentalImpactReport(EIA/RIMA)fortheproject totranspose theDoceRivertoRiachoRiver. Injudgment 1. Fibria andthemunicipalityof Aracruz werejointlysentencedinthePublicCivil Action caseproposed byFederal PublicProsecutor, toconduct withinsixmonths, an  governing each location and the Units’ operating licenses. operating Units’ the and location each governing legislation environmental the in accordance with grant schemes, under out Water mills is the carried to capture supply today. that used muchas as twice almost was atonneof to today pulp produce of water. consumption water necessary the its ago reducing 20 years Approximately State, company has been 34.1 mills, consumes has three The which tonneof manufactured. pulp of water for m³ every Sul, ofdo an average 37.18 consumes Santo in Espírito Unit, tonne of Aracruz pulp. of the waterm³ per Meanwhile, Jacareí Unit company’s by the water withdrawl. affected significantly are presently water resources No River). (Doce channel Bernardo Caboclo the and Gimuhunabasin river 217,965 2009 The average flow rate of the River Paraíba do Sul, the source of water of the Jacareí Unit, is Unit, do source75m Sul,Jacareí of waterthe of Paraíba River rate flow the average of The Our surface water is taken from the Gimuhuna river (Mãe Boa point of capture), that is affected by adduction of the of the by adduction that is affected of capture), point Boa (Mãe waterGimuhuna is taken the from river surface Our The average water capture rate is between 1.3 rate flow Paraná the average River,of the while 1.5 rateand water capture average is between which The m³/s, Aracruz U 110,395,296 219,705 2010 1 , by source nit 107,325,576 217,116 2011 1 (GRI EN8) (GRI 26,654,814 3 per second, or 0.93% of the river flow. Although there are no significant impacts impacts 0.93% or no significant are second, there flow. river per ofAlthough the 73,027 2009 Jacareí U Jacareí 25,535,665 69,961 2010 nit 28,591,030 78,332 2011 2009 NA NA 3 ). The Três Lagoas Unit, in Mato Grosso in Mato Grosso TrêsUnit, The ). Lagoas Três Lagoas U Três Lagoas 47,553,023 129,926 2010 nit 45,740,070 125,315 3 2011 per second. The av The second. per 181,656,676 420,763 (2011) F Total ibria ibria - - liquor and biomass. that complementing process, ments allowed black demand for the with in energy the production greater stability to identify odors and advise the company when such detection is made in the vicinity of the mill. of the vicinity in the is made such detection company when the advise and odors to identify are trained who communities neighboring in the volunteers comprising (RPO), Network Perception maintains Odor an company the odors, that generate processes) and (equipment sources to the reduce control and to seeking addition In Climate chapter inentitled the thistopic Governance. about more Learn areas. 3.17 sequesters Fibria tricity. Consequently, forest tonne of thatproduces, pulp it its within for every of carbon tonnes elec to generate of burning biomass by the emitted tonnes 9million roughly of top the on tonnes, 2million around to came Units 2009) in December (sold Guaíba and Jacareí Três Aracruz, of the operations Lagoas, the from Emissions reserves, forest native and plantations eucalyptus its through of 25 around of carbon equivalent tonnes million the company sequestered the for 2010 inventory emissions 2009), year According (base to Fibria’s (GHG) gas greenhouse from the atmosphere. sequestered carbon the and emissions its between balance has a positive Fibria areas, conservation and restoration vegetation native with in association plantations forest commercial on based business, nature of the of its Because Emissions fiber. in-line filtered the for circuit counter-current towers, such in as cooling it, reuses and that make recycles processes various water undergoes the  Aracruz Unit EN18) (GRI achieved reductions and emissions (GHG) gas greenhouse reduce to Initiatives Particulate matter Particulate - Sulfur dioxide reused water reused and recycled Percentage of -NOx -TRS 1. Values according to the publication Best Available Techniques (BAT) by the Integrated Pollution Prevention and Control (IPPC) (2001) bleached hardwood Kraft pulp. Kraft hardwood bleached (2001) tonne. dried Air 2. (IPPC) Control and Prevention Pollution Integrated the by (BAT) Techniques Available Best publication the to according 1. Values - CO - reused water (m water reused and recycled of Volume I -AO withdrawal (m withdrawal Total water ndicators The Aracruz Unit reduced its consumption of fuel from 7,951t from of fuel consumption its reduced Unit Aracruz The in 2010 to 7,523t in 2011 adjust operation through X 2 3 3 ) ) 2009 76% NA NA kg/adt kg/adt kg/adt kg/adt kg/adt kg/adt Aracruz U U nit 2010 76% NA NA 2 2 2 2 2 2 nit 0.2 -0.4 0.2 0.2 -0.50.2 0.1 -0.2 1.0 - 1.5 - 1.0 107,325,576 < 0.25 263,949,399 BAT ND 2011 77% 1 0.3009 0.0028 0.3205 0.0517 2009 360 0.10 163,987,200 2009 84% Aracruz U NA 0.2945 0.2326 0.0027 0.0241 2010 0.08 330 Jacareí U Jacareí nit 163,987,200 0.0556 0.0102 0.1887 0.1965 2011 0.09 360 2010 84% NA nit 0.008 0.822 2009 0.042 0.155 470 0.7 28,591,030 136,717,534 2011 79% Jacareí U Jacareí 0.006 1.256 0.048 2010 0.81 0.13 460 nit 2009 0.095 0.048 1.247 0.013 2011 0.67 450 NA NA NA Três Lagoas U Três Lagoas 0.085 2009 0.43 2.58 0.05 0.06 360 2010 Três Lagoas U Três Lagoas NA NA NA - - 0.025 2010 0.23 1.60 0.02 0.09 310 302,400,000 45,740,070 nit 2011 87% 0.035 nit 2011 0.22 0.03 0.08 1.52 330

  Fibria | Sustainability Report 2011 153 154

  Fibria | Sustainability Report 2011   Jacareí Unit 90.77% from increased in 2010 stability operational Unit’s to The 93.4% in 2011.improvements. operational and kilns and adjustments through boilers recovery in its emissions NOx Additionally, its reduced Unit the production. of level same the to maintain required energy electric and thermal the reduced ing linethat significantly in2011 May implemented we tofactory, the ofstability bringing bleach anew strategy the as well implemented we 32,722 from (2010) (2011). MWh to of electricity 26,246 consumption in the MWh observed also was As A reduction Três Unit Lagoas boilers. recovery the in mization opti due the is tomainly SO2the reduction the to In relation emissions, this influencing reduction. stability operating greater a promoted and (biomass), sources energy of renewable use the intensified also Unit The boilers. auxiliary Total 407C e410A SUVA 404A, R-22 (FREON) 134 A(SUVA) Total 141 B(SUVA) layer that deplete the ozone substances of Emissions layer ozone the deplete that substances of Emissions SUVA 404A, 407C and 410A 407C and SUVA 404A, R-22 (FREON) 134 A(SUVA) 141 B(SUVA) Substances kg) (in J Substances kg) (in A E í U acare The Unit reduced its CO its reduced Unit The NA ozone of missions racr uz U uz t ni ni t - substances depleting 2 2009 2010 and NOx emissions in 2011 fuels emissions NOx and of non-renewable of consumption reduction the through 2011 2009 2010 2011 1,599.7 1,607.4 1,532.0 1176.4 340.0 2009 2009 38.8 44.5 69.4 6.0 – (GRI EN19), by (GRI weight Tonnes of N of Tonnes Tonnes of N of Tonnes ( ( N N O and N O and 1,073,522 O and N O and 663,000 663,509 456,582 2,857.6 1,793.0 846,712 882,129 1,863.4 1,629.0 926.2 2010 153.0 2010 60.0 11.0 8.0 – O O Ox Ox Ox Ox 2 2 ) ) Tonnes of SOx SOx of Tonnes Tonnes of SOx SOx of Tonnes (SO (SO 2,592.5 113,990 129,188 338,046 388,596 2,139.2 242,492 1,564.0 2,089.0 2 54,302 2 698.0 and SO and 270.5 2011 and SO and 2011 60.0 45.0 5.2 – 3 3 ) ) - - Others (TRS) Others layer ozone the deplete that substances of Emissions emissions (kg) atmospheric Significant T emissions. fugitive and chimney (HAP), pollutants air hazardous (VOC), compounds organic organic volatile persistent (POP), SOx), and (NOx pollutants emissions indirect for data generate not does Unit The legislation. /or and court the of resolution on based determination license the with issuing complies that license environmental with accordance in control requiring emissions atmospheric for generated are 1. Data emissions (kg) atmospheric Significant J emissions. fugitive and chimney (HAP), pollutants air hazardous (VOC), compounds organic organic volatile persistent (POP), SOx), and (NOx pollutants emissions indirect for data generate not does Unit The legislation. /or and court the of resolution on based determination license the with issuing complies that license environmental with accordance in control requiring emissions atmospheric for generated are 1. Data emissions (kg) atmospheric Significant A NO 141 B(SUVA) Substances kg) (in T pollutants (POP), volatile organic compounds (VOC), hazardous air pollutants (HAP), chimney and fugitive emissions. fugitive and chimney (HAP), pollutants air hazardous (VOC), compounds organic organic volatile persistent (POP), SOx), and (NOx pollutants emissions indirect for data generate not does Unit The legislation. /or and court the of resolution on based determination license the with issuing complies that license environmental with accordance in control requiring emissions atmospheric for generated are 1. Data (TRS) Others (PM) matter Particulate emissions) (direct SOx emissions) (direct NOx (PM) matter Particulate emissions) (direct SOx emissions) (direct NOx (TRS) Others (PM) matter Particulate emissions) (direct SOx emissions) (direct NOx R-22 (FREON) 134 A(SUVA) SUVA 404A, 407C e410A SUVA 404A, Total í U acare r r racr ê ê x s s L , SO L agoas U agoas uz U uz x emissions air other significant , and t ni ni 1

t U 1 t ni ni t 1 2009 2010 2011 10,140,750 2009 706,000 663,000 388,596 882,129 113,990 NA NA NA NA NA 20,893 6,220 2009 2009 2009 NA NA NA NA (GRI EN20) (GRI weight and , by type Tonnes of N of Tonnes ( N 1,866,585 2,176,567 O and N O and 2010 1,073,522 1,376,321 2,176,567 NA NA NA NA NA NA 268,048 663,409 338,046 523,909 168,850 66,760 14,736 57,154 6,064 2010 2010 2010 O Ox Ox 2 ) Tonnes of SOx SOx of Tonnes (SO 1,866,585 1,580,313 2 66,760 83,376 456,582 438,375 273,358 846,712 242,492 129,188 and SO and 2011 23,687 83,376 31,559 68,119 884 272 2011 2011 2011 612 NA 0 0 3 )

  Fibria | Sustainability Report 2011 155 156

  Fibria | Sustainability Report 2011 - Total Phosphorus - COD - - Suspended particulates - Suspended 4. Biochemical demand. oxygen 3. Chemical demand. oxygen pulp. Kraft hardwood bleached (2001) tonne. dried air 2. (IPPC) Control and Prevention Pollution Integrated the by (BAT) Techniques Available Best publication the to according 1. Values -Total Nitrogen - Volume of effluents of -Volume -BOD I ndicators 3 5 4 raw materials with reutilized waste in the forestry operations. forestry in the reutilized waste raw materials with purchased of the substitution and in landfills disposal waste reduced gains, with economic and environmental both yields practice This plantations. company’s in the eucalyptus soil of the acidity the to correct are used Unit Aracruz at the produced ashes boiler and sludge lime grits, of ayear dregs, tonnes 40,000 area. Approximately forestry the in used be that can into products is transformed waste, which to utilize endeavoring pulp production has been Fibria Waste Effluents Três Lagoas Jacareí U T Aracruz (GRI EN21)otal (GRI water destination and , by discharge quality nit

Effluent discharged in the the in discharged Effluent Kg/adt Kg/adt Kg/adt Kg/adt Kg/adt m U Paraíba do Sul River Sul do Paraíba 3 /adt nit Atlantic Ocean Atlantic Destination Paraná River 2 2 2 2 2 2 NA 0.01 -0.03 0.1 -0.25 0.3 -1.50.3 0.6 -1.50.6 8-23 BAT ND 1 0.038 0.232 2009 16.4 1.85 1.65 30.9 Activated sludge subjected subjected sludge Activated to prolonged aeration Treatment method Two-stage activated activated Two-stage Aracruz U 0.049 0.198 2010 Biological 1.94 30.4 1.59 13.7 sludge NA nit 0.301 0.071 2011 2.84 2.06 14.6 29.3 0.0018 0.028 2009 0.815 2.56 7.54 18.5 2009 2009 2009 Year 2010 2010 2010 2011 2011 2011 Jacareí U Jacareí 0.00159 0.024 0.767 2010 8.99 2.65 18.1 Was it utilized utilized it Was organization? nit by another another by Not Directly Not 0.00075 0.565 0.013 2011 19.9 8.11 3.4 NA No No 2009 29.29 0.89 0.08 2.55 7.39 1.13 Três Lagoas U Três Lagoas Total volume discharged 11.82 2010 27.67 27.67 23,509,630 68,003,010 35,859,938 25,421,226 29,213,243 47,553,023 67,955,571 0.09 2.23 1.28 0.13 67,911,745 (m³/year) NA nit 2011 25.16 0.09 2.63 0.07 6.91 0.73 Total 2. Others: Scrap in general (metal scrap ferrous and non-ferrous, various plastic and wooden packaging) wooden and plastic various non-ferrous, and ferrous scrap (metal general in Scrap Others: 2. Fibria by determined directly was disposal of method 1. The generated waste Hazardous method final waste generated, by waste Hazardous (in t) (in generated waste hazardous Non- recycled Reprocessed / Re-refined Reutilized method final waste generated, by waste hazardous Non- landfill External landfill industrial Internal Incinerated Co-processed Composted recycled Reprocessed / Others landfill industrial Internal landfill External T (GRI EN22) (GRI method disposal and , byotal waste type of weight 1 2 392,960.00 625,633.00 625,633.00 124,897.00 626,237.10 88,800.00 18,976.00 189.50 604.10 604.10 414.60 2009 0 0 0 0 0 0

Aracruz U 688,844.08 688,095.66 688,095.66 469,269.00 114,139.00 76,946.86 26,267.80 1,473.00 748.42 748.42 183.05 370.05 195.32 2010 0 0 0 0

nit 120,540.05 410,524.64 687,011.91 687,011.91 687,151.31 76,063.64 77,663.36 2,220.22 139.40 139.40 116.40 23.00 2011 0 0 0 0 0

45,644.00 29,566.00 19,908.00 95,255.00 95,118.00 95,118.00 137.00 137.00 44.00 54.00 39.00 2009 0 0 0 0 0 0

Jacareí U Jacareí 140,808.00 140,808.00 140,989.00 84,205.00 23,282.00 33,321.00 181.00 181.00 38.00 69.00 74.00 2010 0 0 0 0 0 0

nit 112,549.40 112,549.40 112,639.19 37,825.00 62,156.98 20,241.63 45.20 89.79 89.79 15.45 29.14 2011 0 0 0 0 0 0

2009 NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA NA

Três Lagoas U Três Lagoas 151,476.47 151,476.47 151,569.41 60,491.09 90,736.63 248.74 50.84 92.94 92.94 2010 42.10 0 0 0 0 0 0 0

nit 140,428.68 161,276.38 161,437.57 78,656.00 61,772.68 161.19 161.19 69.80 76.08 15.00 2011 0.31 0 0 0 0 0 0

940,380.37 939,989.99 939,989.99 280,156.05 410,524.64 151,422.72 18,003.00 77,663.36 2,220.22 390.38 390.38 128.22 131.40 115.00 (2011) F 15.45 Total 0.31 ibria ibria 0

  Fibria | Sustainability Report 2011 157 158

  Fibria | Sustainability Report 2011 and personal lifestyle choices. lifestyle personal and activities professional to in regard both practices, environmental of sound is to inform,adoption the stimulate and programs of the goal The communities). local and workers contract (employees, for internal stakeholders education socioenvironmental is Fibria’sfor fieldactivities important Another operations. industrial its of eco-efficiency the of atotal R$117 invested Fibria year the During of improving purpose for the equipment and in million processes Investments Total Costs R$) (in Investments A EN25) (GRI byreported water of significantly affected discharges by runoff organization and the I T dentity Effluent 23,509,630 Effluent m Effluent 35,859,938 m 35,859,938 Effluent watershed) river Paraná entire (the billion 29 75 m flow (average River Sul do Paraíba V J V T Effluent 68.003.010 m Effluent Ocean Atlantic V otal e protection environmental racr í U acare r olume of water body (m³) body water of olume olume of water body (m³) body water of olume olume of water body (m³) body water of olume ê s L uz U uz U agoas value water of status, size, protected habitats related and biodiversity bodies and t ni ni t ni t 3 3 3 /year /year /year (0.745 m /year 20,953,869.00 Aracruz U 11,304,201.00 9,649,668.00 3 /s) 3 nit /s) x (GRI EN30) (GRI by type investments and penditures 70,994,795.43 29,820,596.82 41,174,198.61 Jacareí U Jacareí Protected area? Protected area? Protected area? nit NA NA No

Três Lagoas U Três Lagoas 25,459,098.00 19,415,242.00 6,043,856.00 nit V V V alue of biodiversity alue of biodiversity alue of biodiversity Not measured NA NA

117,407,762.43 58,885,506.82 58,522,255.61

Fibria opment (BNDES). The second edition of the index in 2011 IBr-X on index of listed the 50, companies edition of 36 second The aportfolio comprised (BNDES). opment Devel Brazil’s Social by and and the for Bank Economic National in 2010 launched (ICO2), Index BM&FBovespa by the the Efficient of Carbon member a become company to forest first the was –Fibria (ICO2) Index Efficient Carbon planet: to the on climate may lead changes which control ofoverhuman and climate actions changes impacts and of risks reduction the targeting management of toenvironmental international initiatives a party company is also The soil. in the matter of accumulation organic and of forests expansion the with of balance carbon tive posi a reaching allow scale at industrial plantations forest whose Fibria, market credit benefit would carbon A global to 2°C. planet the on in temperatures increase the to restrict corporations and by governments actions necessary the out laying document ties in Durban (COP-17), in Durban ties Communiqué the (www. signed of and Durban Africa, South Conference in the 2011,In Par of the observer an as participated Fibria companies, 184 other global with together Convention Framework Climate on Nations United the Change under internationally (UNFCCC). debated being sues is the monitor the company to prompted scenario This feasible. to makeprojects difficult has rendered of markets financial current inmarket,the uncertainty the but credits carbon to generate opportunities the assesses also Fibria Fibria’s main actions to prevent physical risks are as follows: are as risks toFibria’s prevent physical main actions activities. forest and trial 4.11) (GRI of precaution principle the chain value indus adopts and in lightits whole of the operate and to manage to climate changes vulnerability its company has assessed Therefore, the customers. and suppliers its on occasionally and company activities the on impacts water availability, and climate direct regulation regional such as with vices, ser environmental affect may negatively water availability and climate changes with associated risks physical The Paulostate. of São Climate on State Changes the and Policy (PEMC), Climate on Changes Policy National the includes This levels. federal and state local, at the designed being actions tory Kyoto the such as company isregula aware Protocol, of the the agreements, international involving issues the Besides planet. the on of climate changes financial implications the quantify not does still it although climate changes, with associated risks image and regulatory physical, addresses strategy company’s business The of natural use reliant the resources. on of Fibria’s is it strongly as results the business Climate may affect change EC2) (GRI Climate governance         

reduction and reuse of wastes reuse and reduction types of different transportation exploitation and improvement stability of forindustrial process efficiency energy projects Company’s of the of monitoring water footprint start water involving potentialconflicts ofwith areas mapping areas in of forest water consumption monitoring production of monitoring and control preparation of a survey on greenhouse gas (GHG) emissions from company activities, focused on carbon foofprint of foofprint of carbon on focused company from activities, emissions (GHG) gas greenhouse on of asurvey preparation studies for genetic improvement in the production of eucalyptus, seeking to identify the species more adaptable to to more for adaptable studies improvement genetic the species of to eucalyptus, seeking in identify the production different climate conditions climate different pulp and CDP Supply Chain CDP and pulp Supply

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  Fibria | Sustainability Report 2011 159 160

  Fibria | Sustainability Report 2011 The inventory found a positive balance of emissions with 1.8 with of CO of balance emissions tonnes found apositive inventory The Units. three for the operations logistic export pulp as well as Units, (SP) Jacareí and Três (MS) Lagoas (ES), of Aracruz operations forest and industrial the consideration 2011,In 2010 to into December took inventory January on This data. based inventory third GHG its completed Fibria Carbon Footprint undertaken”.commitments Forest Footprint Disclosure undertaken”.commitments Network Water Footprint undertaken”.ments >“Main commit refer >“Sustainability” strategies” toand chapter “Management –Please Chain Supply CDP undertaken”. CDP Investors economy.market carbon for alow the prepare and climate changes targeting practices management to environmental commitment companies’ the ICO2 Paulo Stock The São Exchange. the on trades aims leading to strengthen companies 50 the together brings which     Fibria considered the capture of carbon equivalent provided by eucalyptus plantations and native reserves. native and plantations by eucalyptus provided equivalent of carbon capture the considered Fibria travel. business and of products export for the used organization), by the controlled or that are owned not sources emissions 3 – (Scope the company by controlled operationally not or itself fleet the within vehicles transport such as to company, the attributable sources other and company ), of the operations industrial and forestry in the consumed of electricity production by the generated 2–emissions (Scope of energy import the organization), by the controlled or owned sources 1–emission (Scope operations forestry and industrial from emissions direct the reports Fibria This inventory was carried out in view of the following documents prepared by the WRI, together with the WBCSD: the with together WRI, by the prepared documents following of the in view out carried was inventory This industry. paper and pulp for the (ICFPA) Associations Paper and Council International by the of adapted Forest SD), (WBC Council Development World Business the for and Sustainable (WRI) Institute World Resources of the Protocol GHG including protocols, the in 2010 calculation inventory Fibria’s of various in emissions view out GHG carried was Nord. company TÜV of German Brazilianthe subsidiary BRTÜV, by certificate Footprint a Carbon inventory. from the company awarded Unit was The (RS) Guaíba the moving survey, of aresult re as mainly toprevious the in relation gas carbon on a25% Also reported was pulp produced. drop

Calculation Tools for Estimating Greenhouse Gas Emissions from Pulp and Paper Plants of the ICFPA of the Plants Climate Paper and Pulp from Emissions Gas Changes ToolsCalculation Greenhouse for Estimating CO 1.2; Combustion, version Mobile from Emissions Gas ToolsCalculation Greenhouse for Estimating edition; Standard –revised –ACorporate Protocol Gas Accounting Reporting and Greenhouse The Working Group, version 1.3;Working Group, version 2 Emissions from Business Travel, Business from Emissions 2.0. version – Please refer to chapter “Management and strategies” > “Sustainability” > “Main commitments >“Main commitments refer >“Sustainability” strategies” and to chapter “Management –Please – Please refer to chapter “Management and strategies” > “Sustainability” >“Main refer >“Sustainability” strategies” and to chapter “Management –Please – Please refer to chapter “Management and strategies” > “Sustainability” > “Main refer tostrategies” > “Sustainability” and chapter “Management – Please 2 equivalent, captured for every tonne of tonne of for every captured equivalent, - - - tion) Transporta + (Operations Forestry Emissions Production (BEKP) Industrial Emissions Biomass areas) conservation including CAI (Base Sequestration Balance U Business 2011 FOOTPRINT TABLESUMMARY –CARBON Operations Emissions (BEKP) Logistics Emissions Forestry COForestry nits nits - 2

Fossil Fuel Fossil Specific Emission Specific Share Waste Management Total Forestry Fertilizers Imported Electricity Specific Emission (2009) Emission Specific Total Reduction (2009) Total Reduction Emission / Ratio Sequestration – Emissions) Balance (Sequestration Internal Transportation Shipments Combustion*Stationary Specific Emissions Specific Share Emission Specific (2009) Emission Specific Electricity Biomass Emissions Biomass Eucalyptus Forest (2009) Specific Sequestration Share Areas** Conservation – Emissions) (2009) – Emissions) Balance (Sequestration Emission / Ratio Sequestration Total Reduction Emission Specific Total Industrial Total Emissions Share Total Logistics Road Transportation Emission Specific Rail Transportation Specific Sequestration Specific Emission (2009) Emission Specific Share Share Specific Emission (2009) Emission Specific (2009) Emission Specific

tCO A tCO % tCO tCO tCO tCO tCO tCO n tCO tCO tCO tCO tCO % tCO tCO tCO tCO tCO tCO % tCO tCO n tCO tCO tCO tCO % tCO tCO tCO tCO tCO tCO % % tCO tCO T/y DT/y 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 2 eq/ADT eq eq/ADT eq/ADT eq eq eq eq eq/ADT eq/ADT eq eq eq eq eq eq/ADT eq/ADT eq eq eq eq eq/ADT eq/ADT eq eq eq/ADT eq eq/ADT eq/ADT eq eq eq/ADT eq/ADT 1.076.888 2,294,649 1,509,203 1,942,502 4,107,649 302,253 503,760 399,927 Jacareí 317,492 92,589 93,679 79,453 87,014 14,175 8,050 2,034 24.49 5,037 3,541 29.13 2,152 28% 18% 42% 21% 21% 31% 0.06 4.30 0.09 0.09 0.29 0.29 1.40 0.47 0.47 1.82 4.19 0.12 4:1 5:1 50 2.252.758 3,298,441 2,847,056 9,369,476 6,014,198 Aracruz 234,227 285,656 744,027 285,245 186,212 272,159 179,155 471,611 32,323 6,833 35.34 32.30 3,933 1,675 54% 54% 46% 46% 36% 55% 0.08 0.36 4.27 0.33 4.37 0.07 1.26 1.50 0.16 0.14 0.13 0.12 224 411 5:1 5:1 0 1.181.840 6,784,508 4,620,933 2,763,621 3,733,177 146,892 178,408 169,301 Lagoas 376,914 106,165 167,136 26,586 46,595 14,073 60,721 14,141 38.23 1,784 45.51 28% 33% 22% 18% 25% 24% Três Três 5.89 0.36 0.05 0.05 0.32 5.73 8.10 17:1 0.16 0.16 3.16 0.14 11:1 0.12 381 53 0 11,072,468 20,261,632 4.511.486 1,600,856 1,049,946 8,113,282 305,204 758,952 478,424 340,611 703,616 525,138 35,080 29,031 37,360 17,682 10,106 F 100% 100% 100% 100% 7,870 32.51 2010 ibria ibria 78% 82% 0.08 1.80 0.35 4.72 0.12 0.17 327 6:1 – – – – – – – – –

24,985,243 14,319,495 4.518.820 1,049,946 9,060,139 2,130,582 1,116,606 1,205,170 584,533 298,265 253,160 627,147 29,675 45,076 74,671 11,564 F 100% 100% 100% 100% 100% 100% 30.38 2009 6,701 7,192 ibria ibria 0.27 0.47 0.07 5.76 0.14 3.17 8:1 28 – – – – – – – – – 14,064,958 3.638.545 15,867,205 7,388,444 1,802,248 1,074,606 409,293 402,057 318,348 224,075 110,433 947,137 94,234 10,547 F 100% 100% 100% 3,329 2008 3,730 2,133 ibria ibria 4.36 4.36 0.09 0.30 3.87 0.50 0.11 9:1 39 – – – – – – – – – 1 1 0 1

  Fibria | Sustainability Report 2011 161 162

  Fibria | Sustainability Report 2011 O Figure 1 rigin of direct emissions of GHG of emissions direct of rigin the total forest emissions. forest total the of 90% for approximately are responsible of fuel consumption by the generated emissions that the 2shows Figure than 65% total. of the account for more management, including waste sources, industrial from emissions direct that the 1shows Figure    for 2011 inventory GHG of the main results The 2010 on based are summarized below: Figure 3 shows that maritime transport is responsible for over 90% of total logistics emissions. oflogistics total for over90% is responsible transport that maritime 3shows Figure ndirect emissionsIndirect of GHG from transport Figure 3

The forest plantations and native reserves captured 21,311,578 captured reserves native and plantations forest The t/CO Forest and industrial operations and logistics issued 1,600,856 tonnes of carbon equivalent (t/CO equivalent of carbon 1,600,856tonnes issued logistics and operations industrial and Forest The balance between CO between balance The t/CO capturing of 50% of conservation areas, was 19,185,750 was areas, of conservation of 50% capturing t/CO in eucalyptus plantations and 1,049,946 and plantations t/CO in eucalyptus (11,072,468 t/CO (11,072,468 2 eq were captured. were eq 2 eq), the net reduction was 8,113,282 was reduction net the eq), t/CO

Internal management Waste Silviculture Industrial 2 emissions and sequestration, discounting emissions from combustion of biomass and the the and of biomass combustion from discountingemissions sequestration, and emissions

transportation

Maritime transport Rail transport Road transport

64.7% 31.3% 3.4% 0.5% 2

eq in conservation areas; conservation in eq

E Figure 2 missions of GHG from forest activities 91,1% 3,4% 5,5% 2 eq, showing that for every tonne of pulp produced 1.8 tonneof produced pulp that for every showing eq, 2 eq. Also considering emissions from biomass burning burning biomass from emissions considering Also eq. 2 eq, of which 20,261,632 of which eq, t/CO nitrogen and urea urea and nitrogen

-lime Fertilizers - Fertilizers Fuel Fertilizers -Fertilizers energy 2 eq); 2

eq were captured captured were eq

5.42% 4.87% 89.6% 0.1%

emissions greenhouse gas 2. The Guaíba Unit was sold in 2009. in sold was Unit Guaíba The 2. equivalent carbon of capture the considered Fibria plantations by andprovided eucalyptus native reserves. travel. business and products of export the for used sources organization), emissions the 3– by (Scope controlled or company the by owned not are that controlled operationally not or itself fleet the within sources vehicles other and ), transport as such company the of company, the to operations industrial attributable and forestry the in consumed of electricity of import the production the by organization), generated the by 2–emissions controlled or (Scope owned energy sources 1–emission (Scope operations forestry and industrial from emissions direct the reports 1. Fibria FIBR T Indirect emissions EIndirect emissions Direct emissions emissions by ( greenhouse weight gas indirect otal and direct Total Biomass 1 1 1 I

– scope 3 – scope 2 – scope 1 A PER U Fibria Guaíba Jacareí Guaíba Fibria F Fibria Fibria Guaíba Três Lagoas Guaíba Jacareí Aracruz Aracruz Três Lagoas Jacareí Aracruz Aracruz Três Lagoas Jacareí Aracruz Guaíba Três Lagoas Fibria Três Lagoas Jacareí ibria*(A nit F ORMA 2 2 2 2 2 D N J) CE ) (GRI EN16) (GRI EN17) and 7,388,444 1,335,225 1,237,845 1,755,105 4,581,464 2,039,263 409,293 200,063 532,050 503,706 425,821 734,139 377,355 123,167 517,260 767,717 10,587 86,063 2008 5,376 2,027 3,184 0 0 0 0 0 1,496,215 2,130,582 1,597,399 9,060,139 1,529,531 5,077,183 1,959,126 627,147 800,867 306,649 494,299 166,369 463,961 502,378 125,869 493,328 372,557 294,153 533,183 127,622 67,007 7,220 3,953 2009 2,215 890 162 11,072,468 1,600,856 1,600,856 1,065,285 2,294,649 2,763,621 6,014,198 525,138 394,869 146,892 285,656 744,027 456,471 495,559 213,945 361,271 10,434 92,589 1,900 8,100 2010 434 indirect significant and 0 0 0 0 0 % 2008/2009 100% 100% 100% 100% 100% -32% -59% -56% -36% -22% 29% 23% 53% 21% 12% 53% 24% 11% -4% -7% -1% 9% 0% 9% 3% 2% % 2009/2010

0.22% -100% -100% -100% -100% -100% 105% 167% -29% -25% 113% -16% -26% 22% 45% 29% 23% 18% 81% 15% 17% -7% -7% -7% -1% 6%

  Fibria | Sustainability Report 2011 163 164

   Fibria | Sustainability Report 2011 1. FOEXIndexesLtd. isaprivate companylocatedinHelsinki, Finland, thatprovidesweeklypriceindexesforthemaintypesofpulpandpaper. pulp (FOEX of hardwood price list European The tonnes. million China, from 6.3 arecord demand reached todue strong which year, the of half by demand marketfor first pulp increased the During global the phases. 7.7%, distinct mostly two had market2011 pulp industry The demand. commodity global in Europereduced and by high volatility characterized was Market context performance Financial-economic focus exclusively on the pulp business. pulp the on focus exclusively to Fibria’s thatUnit repositioning strategic concluded Piracicaba the of sale the reflects production in paper decline The Units. 19% Jacareí and Aracruz, the at Lagoas Três annual us production record to reach allowed efficiency This plants. at stability operating increased and gains to productivity of 2011. in September sold in 2010 by 3% increased mill (Piracicaba), paper production former Pulp due its from paper 2011,In of tonnes 93 and thousand 5.184 Units totaled Fibria’s 4production production pulp its from tonnes million IFRS. Operations" under Income per "Discontinued Statement as the in reclassified was operations KSR 2010 in the full. included were For Unit Piracicaba the 2011 and the regarding information years, CONPACEL fiscal and Co., to Paper of that year,Oji in sold was ended 2010, year September this asset fiscal Ltd. the when For of the results 2011 of Unit the until Piracicaba Analysis the of Performance results operating following the The year considers fiscal analysis Performance producers announced reduced production schedules in 4Q11, schedules production reduced announced decreases. price for producers afloor thus establishing this scenario, several In US$648/t. reached – by December, FOEX European the reductions price inresulting successive average), 33-day the (above days inventoriesto for38 pulp, demand producers’ on the increasing impact negative 1998 (from 2011). and a had economy global the on effects in July, Beginning its US$600/t and crisis European the 1 ) showed an upward trend, rising from US$849/t in January to US$874/t in June, above the average of of average in the June, above to US$874/t in January an upward trend, rising from US$849/t ) showed 5 6 4 2011 S the highest growth projections according to Pulp and Paper Products Council (PPPC). Products according Paper to and Pulp projections growth highest the have and crisis to resilient economic most are the markets two These 76% sold. representing volume pulp total of the half of 2011. second in the papers, specialty and paper for Fibria’s use tissue end The for is pulp mainly quality high mostly Asia, year, the half of from demand first in the strong and America North Europe from and demand higher in 2011 of sales pulp volume The 5.141 reached year, 5% previous thanin tonnes, the million higher to due mainly previous year.previous the in profit million in 2011 registered accounting toR$603 the million,the aresult, loss compared As R$868 was into Company’s is 92%of the debt which reais, total. of dollar-denominated the dollar’s the of the conversion on year accounting the real in the the due to effect against 12.6%chiefly appreciation in 2010. expense million is difference This toR$364 R$1,869 the compared totaled Financial income expense, million (2011: rate period exchange inaverage the R$1.6746 year. in |2010: the volume sales R$1.7608) higher the that offset lower in the reais and price pulp to9.6% net due the average lower mostly in 2010 registered million margin), (40% 22% was R$2,526 thanthe lower period in the EBITDA R$1,964 was margin at 34%. with EBITDA million Pro-forma (5%). period the in volume sales year, million, 5% up toincreased previous R$295 due the overthe totaled mostly expenses Sales half.second the in indemnifications with expenses and payraise collective the that year offset the out at R$310through implemented control initiatives tostable isresult due cost held million. This expenses Administrative year. for the cost cash production increased the (iii) and volume sales higher the (ii) exhaustion, and amortization R$5,124 totaled sold of goods cost depreciation, The increased over2010, million, 9% up (i) by the affected mainly in September. concluded was of this Unit sale the as year of the quarter last –in the Unit Piracicaba –the operation paper the from of income absence the also and price pulp net average in the 9.6% decrease in million 2011, R$5,854 Fibria’s totaled revenue operating net 7% down over2010. to the in part due was result This of 2011. in September Unit 17% down tonnes, 100,000 to 2010 compared totaled sales Piracicaba of the of paper volume tosale due the The ales distribution by region Others -10%  Others -23%  Asia -25% America  North -42%  Europe 2011 use End   -54%  Tissues

Specialities -24% Specialities Printing and writing -22% writing and Printing -

   Fibria | Sustainability Report 2011 165 166

   Fibria | Sustainability Report 2011 2011,In R$1,240 follows: reached as allocated were and million Fibria’sexpenditures capital CAPE consumers. and clients demanding increasingly of needs the that meet products quality, with sustainable industry, pulp in the leader aglobal as itself consolidates Fibria moment. opportune the at thisUnit to expand ready to areas be forestry our continueddeveloping we while Project TrêsII for the Lagoas license installation the company received the year, goals, same the In expansion our in linewith structure. capital improve Fibria’s helped and pulp business in the itself of repositioning strategy its company to the execute lowed event in 2011: CONPACEL,important an was Unit, ofPiracicaba Fibria's the and assets, sale paper KSR The thisal Strategy R$856 million and R$626 million in January and July, and respectively. January in million R$626 and million R$856 of finalpayments the making shareholders, Aracruz former with debt the company settled the addition, In months. of 73 maturity debt an average with year the to close able was and of profile 6.75% debt its p.a., extended Fibria coupon asemiannual 2021 paying Fibria the bonds issued 10-year of US$750 amount in the these Bond million. With reinforcing and company debt liquidity. The gross for reducing used were operations these from proceeds million. The CONPACEL the at R$1.5 with concluded at US$313 Unit, sales Piracicaba the assets, and billion KSR and strategic 2011,during Thus, of Fibria’s one is still priorities. management top Debt of non- sale the company completed the management Debt maintenance.operation to 2012, allocated For R$1 atbillion, approximately mostly budget acapital approved company’s the management Total C Veracel50% Subtotal Maintenance /Modernization /R&D /IT Maintenance Renewal Forest / Environment Safety Subtotal Expansion Expansion Forest Expansion Industrial CAPE (R$ million X (R$ ape X x ) 1,240 996 154 624 128 310 90 26 62 - Dividends assets. non-strategic other and assets forest Losango of the sale the with events, has worked toward Fibria liquidity increasing target, Continuing reduction debt the with to up 3.6x in 2010 in 2011. to 4.8x debt/EBITDA net brought period, for the EBITDA reduced the and debt dollar-denominated on dollar’s of appreciation the impact The fee. awaiver without and 2012. of30, in reciprocity environment an satisfactorily concluded was renegotiation The 31, December ending forperiods the 2011 limits leverage maximum the to increase creditors March 31 and June and its with covenants its renegotiated company preventively scenario, the macroeconomic global of the deterioration the in 2011 Given to reais. dollars all from – 92%almost conversion upon –the company’sdebt of increased significantly over2010. 3% R$9,478 million, down totaled dollar’s that12.6% the noted be should real It the against appreciation to R$1,846million, 1.6x equal totaled maturing in 2012. debt instruments, the hedge marked-to-market debt Net 2011 to Fibria close allowed net of initiatives position, The cash company’s These position. financial asolid with ing value through synergies, as some initiatives have not yet matured, especially in the operating and research areas. research and operating in the have yetmatured, not initiatives especially some as synergies, ing through value 2012, forFor generat companies. former two of opportunities the are more there companypractices believes the best of the implementation that with the management new and consolidates reduced model costs the production creased in as such gains important generated This performance operating improving and procedures simplifying structures, by adapting achieved was result This of schedule. ahead years value, present two at net billion R$4.5 approximately in Fibria’s disseminated culture. of 2011, end the widely By are already practices Best gains totaled accumulated synergy Synergies (ICO Index Efficient Carbon BM&FBOVESPA’s for in the inclusion selected also was Fibria World). (DJSI Index Sustainability Jones Dow in the included to be business pulp company in the only is the and year third for consecutive the (ISE) Index Corporate Sustainability BM&FBOVESPA’s for the selected also was Fibria addition, In a0.82% share index. in with the Index, Bovespa of the portfolio theoretical ofFibria’s the are shares part US$36.7 million. of volume US$7.77. afinancial million, with 3.2 was NYSE the and BM&FBOVESPA the on volume trade daily average The at quoted were FBR ticker the symbol under traded ADRs III Level the York New the On (NYSE), Stock Exchange at year R$13.87. the closed FIBR3 ticker code under Mercado Novo BM&FBovespa’s the Fibria’s on listed stock market Capital year. for the to losses December 31, ended year fiscal for the 2011 proposed were by Brazilian law. corporate dividends provided No due as reserves, of legal of 25%constitution guarantee company’s aminimum after dividend income bylaws ofThe net Market value on December 31, 2011 December on value Market (ADRs) Receipts Depositary American Free float 2 ). 467.934.646 common shares 1 ADR = 1 common share =1common 1 ADR R$ 6.5 billion R$ - -

   Fibria | Sustainability Report 2011 167 168

   Fibria | Sustainability Report 2011 R$68 million on December 31, December on million 2011.R$68 in 2017, final maturity With Sul state). do was the contract Grosso on balance (Mato Unit outstanding the Lagoas Três at the equipment bleaching and causticizing kiln and lime for the parts spare and chasing of components The outstanding balance on December 31, December on balance 2011 outstanding The 2019.September in final maturity million, with R$2 was    of 2011 follows: as was end the at profile the and countries of other linked those and institutions to Brazilian the government with signed were Contracts projects. expansion its of some financing public for has obtained Fibria years, two last the During (GRI PublicEC4) financing client. of their interests the promote not auditorshould the (c) and client; for their functions management exercise not auditorshould the (b) work; own their audit not should auditor the (a) that state principles recognized internationally These auditor’s the independence. of preserving principles the on based is auditors independent our with auditing unrelated to external services contracting regarding company’s policy The Relationship independent auditors with   means of on-lending. of means by Exim), 10 269 (BNDES R$ to and R$ million Finame through abasket million of currencies Term Rate), Interest R$1,51 R$1.78 was of which since 2005 interest), +short-term (principal billion (Long toTJLP the is indexed billion 2012 period the to 2015. 31, of December As 2011, in force BNDES the with contracts on balance outstanding the to 2011, 2008 period during investments and forother to up other R$1.7 the and projects billion, to finance forestry outstanding balance on this facility was R$260 million. R$260 was thisfacility on balance outstanding in Decemberfinalwith maturity As of 2018. state), 31,do Sul Grosso (Mato 2011,Unit the at Lagoas fiberline Três the ate materials, packaging and the respective shipping charges, as well as on fixed asset acquisitions. asset fixed on as well as charges, shipping respective the and ate packaging materials, intermedi of inputs, (9.25%) acquisition the on taxes PIS/COFINS of the suspension the involved which IRS), (Brazilian in 2011 benefit atax to obtain able company was the Federal exporter, an isReceita essentially Since Fibria the from in 2012. 31, of December As 2011, R$800,000. was balance outstanding the

– a loan to cover the partial financing of the first financingfirst the of to partial cover the –aloan 2009) (September Agency) Credit Export (Finnish FINNVERA European (2001) Investment Bank (EIB) FINEP (Funding Agency for Studies and Projects) (April 2011) "Tailor-made for the –asubsidy (April pulp" project. Projects) and Studies for Agency (Funding FINEP FCO (Constitutional Fund for Financing the2009) Brazilian (December Mid-West) – two credit contracts: one with a limit of R$303 million, to finance forestry projects during the the during projects million, to finance alimit of R$303 forestry with one contracts: credit (2011) –two BNDES – a loan for the partial financing of the Veracel mill, with final maturity financing the of mill, finalVeracel with maturity partial for the –aloan –aGrant pur for the - - favorable market conditions to define the implementation of the project. the of implementation the favorable market to define conditions await CENIBRA) and in 2010, work (Fibria to start shareholders the scheduled Originally impacts. optimizeand the – compensatory and –preventative, corrective mitigate that both initiatives and impacts social and environmental (www. website agency’s at the available Hearing Public of the Minutes and Study (RIMA) Assessment according Impact to Environmental the of Environment Water State (IEMA-ES), and the from Institute Resources Permit aPreliminary received project The 7,940 approximately project. and end at the workers operation, during 863 and indirect construction during jobs direct 850 generating R$243,879,000.00, of approximately an investment with of construction, is years for three forecast the licensing, After including containers. cargoes, other forof and pulp shipment demand the to meet of berths number and current draft of the increase an II), terminal(Portocel to anew build has aproject Expansion –Portocel Project Since its operational start-up, in 1978, Portocel has exported nearly 66 million tonnes of pulp. tonnes million 66 nearly in 1978, has exported start-up, operational Portocel Since its 2010. in than more tonnes 15,000 1.99 tonnes, million during 2011 to Portocel by barge transported of eucalyptus volume rail. or byit to road The amounted transporting than impact environmental has less and is cheaper which by sea, to Portocel is Bahia delivery Santo and in Espírito Units from Fibria’s of 11.2 wood a draft of the Forestr Some tonnes. of toships up to it 70,000 receive allowing meters, with berths, has three industry, in the companies by other but CENIBRA, and by Fibria only not is used which Portocel, onto vessel. asingle of cargo tonnes 14th 52,000 by September handling loading on record anew which set port, the through for export channeled where to (51%) Fibria longing Cenibra and terminalbe private specialized Portocel the (ES), Riacho mill Unit’s do in Barra Aracruz the from kilometers 4.3 Just Portocel the increased cargo volume is good for the workforce, providing them with more work opportunities. work more with them workforce, for providing the is good volume cargo increased the conditions”. to working improved leading to make investments that possible it “Ithas made us added that, also He telling port, for revenue the extra in generating important been had handling cargoes aluminum. ofeven other The and salt logs, rod), (wire products steel notably handling cargoes, of other its has increased Portocel is because This occurrence. common isincreasingly an areas storage in the of cargo types of other appearance But shipments. pulp in specializing all, aport after is, area. It storage Portocel the around landscape the dominate of always pulp Bales Diversification meioambiente handles roughly 70% of Brazil’s pulp exports. In 2011, In 70% of Brazil’s roughly handles exports. pulp of pulp tonnes million 5.8 7 7 .es.gov.br). The Environmental Impact Assessment Study describes potential .es.gov.br). Study describes Assessment Impact Environmental The -

  Fibria | Sustainability Report 2011 169 170   Fibria | Sustainability Report 2011 based on current best practices current best on based Reports, of Sustainability Assessment Bureau Veritas the Independent protocol forin accordance the out with carried was work Our Methodology by auditors. independent externally the GRI G3.1; GRI the pursuant to report, the of thatensure quality the principles relating the to data performance and of information 3. verification (2011); period toreporting the in byrelation Fibria provided evidence 2. of documentary analysis Report; of the preparation in the involved process) for the (responsible people with 1. interviews for SustainabilityReports. 1. The Bureau Veritas independent assessmentprotocolisbasedontheISAE3000InternationalStandard on Assurance Engagements andtheGRIG3.1guidelines assurance Independent       assessment: its of scope the within the following to include askedFibria Bureau Veritas Certification work the of Scope below. defined work the of scope the accordancewith in verification, to limited independent was the responsibility 2011. toyear regard the with of Fibria’sof same, Our management. responsibility sole is the report in the published information The limitations and content, of the quality assessment encompassing Report), to referred the as (hereinafter Report Sustainability of its assessment an independent to conduct (Fibria) S.A. Fibria hired was by (Bureau Celulose Veritas) Brazil Bureau Veritas Certification Introduction CERTIFICATION VERITAS STATEMENT –BUREAU ASSURANCE INDEPENDENT Excluded from the scope of this work was any assessment of information relating ofto: information any was assessment of thiswork scope the from Excluded (2011) reports. guidelines sustainability for InitiativeTM G3.1 GRI Reporting Global the in reliability, and defined as balance, clarity comparability, accuracy,pleteness, timeliness, future commitments; future

adequacy and reliability of the systems and underlying processes used to collect, review and compile the reported information; reported the compile and review to collect, used processes underlying and systems of the reliability and adequacy 2011 in the included information and data Report; activities outside the defined assessment period; assessment the defined outside activities economic and financial information contained in this report that has been taken from financial statements that have been verified verified been that have statements taken financial from been that has thisin report financial and contained information economic statements of position (expressions of opinion, beliefs, goals or future intentions) on the part of Fibria, as well as statements of of statements as well ofas Fibria, part the on future or intentions) goals beliefs, of opinion, (expressions of position statements assessment of the Report in accordance with the principles of materiality, stakeholder inclusiveness, sustainability context, com context, sustainability inclusiveness, of materiality, stakeholder principles the in accordance with Report of the assessment 1 1 and covering the following activities: following covering and the - sions as to the true impact of the forests planted by Fibria on local water resources. We found information in the publication about about We publication found in the information water resources. local on planted by Fibria forests of the impact totrue as the sions enabled Fibria to meet in full all the core GRI G3.1 in full core GRI all the to Fibria meet enabled indicators. that have collection data in made been have improvements reliable. Significant considered be can traceability their and documents clarity, five relating to the rendering of accounts, five relating to the principle of balance, and six relating to the principle of reliability; of balance, principle of relating sixthe principle fiverelating and to the to accounts, of clarity, relating rendering the five to newness of the company. Hence, the Report complies with the principle of comparability. principle the with complies company. of the Report Hence, the newness (core – Life cycles stages in which health and safety impacts of products and services). and of products impacts safety and health in which stages cycles –Life (core PR1 and training, risk-control prevention,and counseling, –Education programs) (core LA8 of work-related number and fatalities), absenteeism, and days, lost of injury, diseases, –Rates occupational (core LA7 communities), local on impacts negative actual or potential significant with –Operations (core SO9 packaging), and products EN27 –Reclaimed –Total (core (core of weight waste), EN22 emissions), atmospheric significant Other (core – EN20 biodiversity), on EN12water), impacts of significant –Description (core Recommendations for the next Report level. application company A+ an the earning this report.  Technical report relating tocompany’s the management. matters addressed also report our guidelines, toGRI faithfulness the Report’s relating topublished the to issues in addition targets, term long and short and company, by the goals demonstrated to its in relation performance the and Context Sustainability of the Considering principle the for conclusions. our basis acceptable an as assessment, absolute thanan rather assessment, areasonable to providing aview with out carried and planned were activities The published. information of the completeness the and context sustainability the into taking consideration Report, in the included materialissues the to determine used method of the evaluation 6. activities; ofengagement Fibria’s5. analysis stakeholder state); Paulo (São Paulo São in office Administration Central the and Units Sul state) do Grosso Três (Mato Lagoas Paulostate), (São Jacareí Santo state), (Espírito to Aracruz the visits 4.            vital to the mapping of risks carried out in 2010. out carried of risks tomapping the vital the risk management since process, were during manystakeholders, identified withequallyconsidered engagement topics, of these ing Fibria’s sustainability strategy. Fibria’sing sustainability regard information quality higher with reader the provides This targets. long-term of and the Matrix Materiality of the to topics the understands that the topics identified at that time continue to be the most significant. most the be that time continueat to identified topics that the understands able to the various stakeholder groups. understand and accessible statements, or false errors of significant free precise, to be considered were Report in the presented data

The information regarding water availability, in quantitative and qualitative terms, still does not allow the reader to draw any reader conclu the allow not does still terms, water availability, regarding qualitative information and inThe quantitative Fibria’s self-assessment, pursuant to the GRI G3.1 guidelines, as demonstrated in the Report’s Content Index, was confirmed by us, by us, confirmed was Content G3.1 Index, toGRI Report’s in pursuant the Fibria’s demonstrated as self-assessment, guidelines, The Report has evolved compared to that of the previous cycle, with regard to the presentation of the goals and targets in relation in relation targets and goals of the to presentation regard the with cycle, to that previous ofcompared the has evolved Report The The six long term sustainability targets were published, thereby clearly demonstrating the strategic focus up to focusup 2025. strategic the demonstrating clearly thereby published, were targets sustainability term long six The Fibria has demonstrated that significant topics identified by means of the Materiality Matrix are internalized and handled through through are internalized andMatrix handled Materiality the means of by identified topics that significant has demonstrated Fibria All the inconsistencies that were found were corrected over the course of the assessment process, such that the information and and information such that the process, assessment of the course overthe thatfound were corrected were inconsistencies the All The internal mechanisms for collecting, analyzing and compiling the information to be published and the control over important control overimportant the and published to information be compiling the and analyzing for internal collecting, mechanisms The Most of the published indicators were presented for a period of three years, which had not been possible previously, to due the possible been not had which years, of three for aperiod presented were indicators published of the Most The Materiality Matrix used in 2009 to guide the topics developed in the Report was used as a basis for the 2011 for the abasis as used was Fibria Report in the developed Report. topics the to guide in 2009 used Matrix Materiality The During the course of our verification, certain inconsistencies were found and classified as follows: six relating to the principle of principle relating sixthe to asfollows: were classified and found inconsistencies certain of verification, our course the During The inconsistencies relate to nine indicators, as follows: EN9 (additional – Water sources significantly affected by withdrawal of withdrawal of by affected –Water significantly sources (additional EN9 follows: as relate to indicators, nine inconsistencies The The assessment process identified six opportunities for improvements, and details of the these are shown further ahead inahead further are shown these the of details and improvements, for opportunities six identified process assessment The - - -

  Fibria | Sustainability Report 2011 171 172   Fibria | Sustainability Report 2011 learning the contributions of each body of water to the total water volume drawn off by the Aracruz Industrial Unit. Industrial Aracruz by the off drawn of water tototal volume the body of each contributions the learning for basis technical areliable provide will which Santo state), in Espírito of Aracruz, Canal (municipality Bernardo Caboclo the and basin proximately 50% of the defined targets and total and total failuremeet to targets them. of 13% defined of the 50% proximately Bureau Veritas Certification – Brazil – Bureau Veritas Certification (ASR) Reports Sustainability Auditor;Assurance Lead Vervuurt Alexander Paulo, 2012. March São (55 11) by telephone or faleconosco.asp 5070-9800. www. website the means of by clarification, is further available for Bureau Veritas Certification Contact record. management system is kept and aBureau as Veritas process of the traceability ensuresthe report This for improvements. taken opportunities and action found, corrective any irregularities verified, topics up, all the drawn was showing report adetailed At assessment, of the end the activities. of their performing in the staff its among standards ethical high to preserve in order business, its aCode throughout of Ethics Bureau Veritas has implemented of interest. conflict no was that there stand under and independently thisassessment We Fibria. performed with team has any links commercial assessment of the member No 180management, almost with in assessment. independent years’ experience specializing in safety,quality,and social environmental health, firm services professional an is independent Bureau Veritas Certification Declaration of independence and impartiality opportunities. inthat arejob lacking Recommendations regarding the sustainability context publication. next in the of clarity principle the to meeting fundamental be will processes new for these of accounts Arendering stakeholders. local with of thisengagement results practical the regarding interest siderable      issue. the on evidence conclusive to provide in order presented, results the and continued be should which studies, technical to the local socioeconomic scenario. socioeconomic to local the contribution its to understanding essential is supplier local of the concept of definition asuitable perspective, socioeconomic the from characteristics, distinct with in regions is active ofwhich Fibria, economy, context the In hiring aconsistent local through policy. the in boosting organization reporting of the participation EC6 is to ofthe the show indicator purpose economic The suppliers. by local

In regard to the policy of giving priority in spending to local suppliers, Fibria should adopt a clear definition as to what is understood whatas is understood to definition aclear adopt should Fibria suppliers, to local in spending priority of giving topolicy regard the In Fibria could make an effort to develop a policy on the hiring of local labor, since many of its operational Units are located in areas in areas are located labor, Units hiring of local the operational on since many of its apolicy to develop could makeFibria effort an The publication of information about new channels of communication with stakeholders, set up by Fibria in by2011, up Fibria set stakeholders, with of channels communication new about of information publication con The generates Greater emphasis should be given to meeting the short-term sustainability goals and targets, given the partial failure ap to meet partial the given targets, and goals sustainability short-term the to meeting given be should Greater emphasis With regard to the local water resources, the company should give priority to ascertaining the water balance of the Riacho river river Riacho waterof balance the the to ascertaining priority give company should the water resources, tolocal regard the With bureauveritascertification .com.br/ - - -

    Awards Recognitions and 2011 in          

Carlos Aguiar, former CEO of Fibria – Chosen Latin American CEO of the Year by RISI, the international agency for information about Aguiar,Carlos for about CEO information Year of the CEO American agency international former the – Chosen Latin of Fibria by RISI, Ergílio Cláudio-da-Silva Jr., general manager of Technology Fibria – appointed TAPPI Fellow for his technical contributions to the pulp topulp Jr., the contributions for his technical TAPPI Fellow Cláudio-da-Silva Ergílio of Technology –appointed Fibria manager general IR Maga by IR conducted in a Sustainability, survey and Environmental Social of in terms companies best –Voted Fibria five of the one Fibria – Honoree in the 96 in the –Honoree Fibria José Luciano Penido, Chairman of the Board of Fibria – Honored by the conservation organization The Nature Conservancy (TNC), (TNC), Conservancy Nature The organization conservation by the Penido, Chairman –Honored Luciano of Fibria Board of the José Fibria's Center for Environmental Education (NEA) in Santa Branca (SP) – Honored by the city of Paraibuna (SP) for participation in in for participation of Paraibuna (SP) city by the –Honored (SP) Branca in Santa Fibria's Center (NEA) Education for Environmental Lícia Cantarella, Fibria Community Relations Consultant – Awarded Social Leader Prize 2010 Prize Leader Consultant Cantarella, Relations Community Social Lícia Fibria –Awarded by Votorantim for Caravelas Institute, Fibria – Highlight of the Pulp and Paper Industry 2011 by the Brazilian Pulp and Pape Technical Association (ABTCP), in the Forest 2011 Forest in the Industry (ABTCP), Paper and Pulp –Highlight of the Fibria Technical Brazilian Pape byand the Pulp Association Fibria's Center for Environmental Education (NEA) in Jacareí (SP) – Honored by the City Council City by the (Young Mirins Ecoagentes for the –Honored (SP) in Jacareí Fibria's Center (NEA) Education for Environmental Fibria – Selected for the third consecutive time as part of the Dow Jones Sustainability Index (DJSI World) of the New York New of the World) Stock (DJSI Index Sustainability Jones Dow of the part as time third for consecutive the –Selected Fibria Fibria – Distinguished with the Resocialization at Work seal of recognition, awarded by the Department of Justice of the state of of state of the of Justice Department by the awarded of recognition, at Work seal Resocialization the with –Distinguished Fibria Carlos Aguiar,Carlos Award 2011,Year, of the Leader Leader CEO forin the Business former –Nominated of Fibria (ES), Vitória by TV Fibria – Chosen as one of the five favorite companies by Espírito Santo students, according to the survey SantoDream according "Espírito the survey to students, Santo Espírito by five offavorite the companies one –Chosen as Fibria Fibria Posto da Mata Forestry Office (BA) – QualiAR Prize 2011,QualiAR – (BA) Office Santoof Espírito of Federation the Companies Transport Forestry Mata da Posto Fibria the ECODia project Ecoagents) project Ecoagents) Lourdes Lopes municipal schools, with the theme of industrialization theme the with schools, municipal Lopes Lourdes Development and Market Pulp Manufacturer categories Market Manufacturer and Pulp Development Espírito Santo, awarded to companies that offer job opportunities to prison inmates or former prisoners inmatesformer or to prison opportunities job that offer Santo, to companies Espírito awarded for discussion about the revision of the Forest Code Forest of the revision the about for discussion agenda toBrazilian the environmental for his contribution (IPE), Research for Ecological Institute by and the Ethos Institute by the Leader Largest Company and Sustainable Leader categories Leader Company Sustainable and Largest Leader Exchange, now as the only representative of the forest industry forest of the representative only the as now Exchange, ( industry the forestry industry, by TAPPI, the international organization that brings together industry professionals industry together that brings organization international by the TAPPI, industry, Entrepreneurial project Companies", College, (ES) Cariacica by XII Pius selected zine Transportation Program Program Transportation Fetransportes and the Brazilian Institute of Investor Relations (IBRI) among 500 stock market in Brazil professionals stock 500 among (IBRI) Relations of Investor Brazilian the and Institute ), for the performance of its fleet in the measurement of pollutants as part of the the of Up Environmental Clean part as pollutants of measurement the in fleet of its performance for the ), th anniversary parade of the city of Três Lagoas (MS) by the Flausina de Assunção Marinho and Maria de de Maria and Marinho FlausinaAssunção by the de of Três(MS) city of the parade Lagoas anniversary

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  Fibria | Sustainability Report 2011 173 174   Fibria | Sustainability Report 2011

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Marcelo Castelli, CEO of Fibria – Elected a New Leader in the Business Leaders Forum, nominated by businessmen from around Brazil around from by businessmen nominated Forum, Leaders Business in the Leader aNew Castelli,Marcelo CEO –Elected of Fibria Fibria 2010 Sustainability Report –6 2010Fibria Report Sustainability Fibria – Featured at the 44 at the –Featured Fibria Carlos Aguiar, former CEO of Fibria – Honored by the business organization Espírito Santo in Action with the Americo Buaiz Medal, Buaiz Medal, Americo the with Santo in Action Espírito Aguiar,Carlos organization business by the CEO former –Honored of Fibria Exame's Sustainability Guide 2011 by Exame's Sustainability –VotedFibria in sustainability of 21 one companies model Fibria – selected for the third consecutive year to be listed on BM&FBOVESPA’s Corporate Sustainability Index (ISE) Index Corporate Sustainability BM&FBOVESPA’s on listed to year be third for consecutive the –selected Fibria Fibria –1 Fibria Fibria – Among three companies in the pulp and paper industry that best relate to the press, according to the list of according "Companies tolist the relate topress, the that best industry paper and pulp in the companies three –Among Fibria Fibria – Received the Corporate the Citizen 8 for –Received the Fibria Seal Fibria's Investor Relations (IR) Program – Featured among the best in the pulp and paper industry in Latin America in a survey by by in a survey America in Latin industry paper pulp and in the best the among – Featured Program Fibria's (IR) Relations Investor Fibria –2 Fibria Fibria – Subject of a congratulatory motion from the City Councilmen of Jacareí (SP), for installing an air quality monitoring monitoring air an quality for installing Councilmen City (SP), the from of Jacareí motion of acongratulatory –Subject Fibria Fibria – voted among the five Latin American companies with the best financial disclosure practices, according to practices, financial disclosure 2011best the with companies IR American Latin five the –voted among Fibria of wood in eucalyptus kraft mill", kraft Biorefinery and Pulp in on eucalyptus Technical in the of wood presented Session paper best the as that communicate best with journalists", Comunicação with da best that communicate by Negócios awarded ranking "The most sustainable companies according tomedia", the companies sustainable ranking "The most by Imprensa conducted asurvey Santo, for the project "Program for Ecological Conservation and Restoration of Forest Remnants of Espírito Santo" of Espírito Remnants of Forest Restoration and Conservation "Program for Ecological Santo, project for the Magazine Investor Institutional Global Rankings Global which recognizes the most outstanding entrepreneurs contributing to the development of the state of the todevelopment contributing the entrepreneurs outstanding most the recognizes which practice good social and environmental actions environmental and social good practice station in the city in the station best sustainability report. Category: publicly traded company with annual net revenues equal to or over R$2 billion to overR$2 or equal annual revenues net company with traded publicly Category: report. sustainability best st nd place in the Natural Resources Conservation Ecology Award 2011, Ecology Conservation NaturalResources in place the of Espírito state of the Government by the sponsored place in Communities category and among the hundred most prestigious companies in terms of sustainability in the in the of in sustainability terms companies prestigious most hundred the among and in place Communities category th International Pulp and Paper Congress and Exhibition (ABTCP 2011) Congress Exhibition and Paper and Pulp International impact the "Predicting study for its , for the second consecutive year consecutive second , for the th place in the Brazilian Association of Public Companies’ (ABRASCA) 13 Companies’ (ABRASCA) of Public Brazilian in place the Association th consecutive year, granted by the Municipality of Jacareí to companies that that year, to companies of Jacareí consecutive granted Municipality by the magazine magazine th Annual Ranking of the the of Ranking Annual Content Index 3.8 3.7 3.6 3.5 Report scope and boundary 3.4 3.3 3.2 3.1 profile Report parameters Report 3. 2.10 2.9 2.8 2.7 2.6 2.5 2.4 2.3 2.2 2.1 profile Organizational 2. 1.2 1.1 analysis and 1. Strategy Profile G3.1GRI C Global and and/or between organizations between and/or period to period from comparability affect significantly can that entities other and operations, outsourced facilities, leased subsidiaries, ventures, joint on reporting for Basis report the of boundary or scope the on limitations specific any State ofBoundary the report Process for defining content report contents its or report the regarding questions for point Contact cycle Reporting report previous recent most of Date period Reporting 2011 in received Awards 2011in changes Significant organization reporting the of Scale served Markets form legal and ownership of Nature names of countries and operates organization the where countries of Number of organization’sLocation headquarters of the organization structure Operational services and/or products, brands, Primary Name of the organization opportunities and risks, key impacts, of Description strategy the organization and its to sustainability of relevance the about organization the of decisionmaker senior most the from Statement ompact P

rinciples

Location within Report Location within Report Location within Report About this Report p. 13-17 Report this About social and environmental impacts economic, relevant company's the of range whole the Covers p. 13-17 Report this About p. 187 management and development Creation, p. 9-12 management the from Message –CEP 01419-908 – Brazil –SP andar Paulo –São 1.357 Santos, –10º –Alameda Corporativa – Comunicação [email protected] or Fibria CeluloseS.A. Annual www. at (available 2011 April in launched Report, 2010 Sustainability 31, 2011 December 1to January 2011 in recognition p. 173-174 and Awards p. 29-34 Fibria About p. 9-12 management the from Message p. 29-34 Fibria About p. 21-28 results Main p. 29-34 Fibria About p. 29-34 Fibria About p. 29-34 Fibria About p. 29-34 Fibria About p. 48 systems Management p. 29-34 Fibria About p. 29-34 Fibria About S.A. Celulose Fibria Climate p. governance 159-163 p.78 communities on Impact p. 52-61 Sustainability p. 42-43 management Risk p. 13-17 Report this About p. 9-12 management the from Message p. 9-12 management the from Message fibria .com.br/rs2011) 1

  Fibria | Sustainability Report 2011 175 176   Fibria | Sustainability Report 2011 4.10 4.9 4.8 4.7 4.6 4.5 4.4 4.3 4.2 4.1 Governance 4. Governance, commitments and engagement 3.13 Assurance 3.12 I GR 3.11 3.10 3.9 Content index and performance social environmental, economic, to respect with particularly performance, own body’s governance highest the evaluating for Processes agreed standards, and codes of principles conduct, internationally with compliance or adherence and opportunities, including and relevant risks environmental, and performance, social organization’s and managementeconomic, of identification the overseeing for body governance highest the of Procedures implementation. their of status the and performance social and environmental, economic, to relevant principles and conduct, of codes values, or mission of statements developed Internally ofdiversity. indicators committees,includingits any consideration of gender and other and body governance highest the of members the of expertise Process for determining the composition, qualifications, and avoided are interest of conflicts ensure to body governance highest the for place in Processes performance). and social environmental (including and the organization’s performance arrangements), departure (including executives and managers, senior body, governance highest the of members for compensation between Linkage body governance highest the to direction or recommendations provide to employees and shareholders for Mechanisms members non-executive and/or independent are that body governance highest the of members of Number officer executive an also is body governance highest the of Chair the whether Indicate or organizational oversight strategy such as setting tasks, specific for responsible body governance highest the under of the organization, including committees Governance structure forassurance the report external seeking to regard with practice current and Policy report the in Disclosures Standard the of location the Table identifying report the in applied methods measurement or boundary, scope, the in periods reporting previous from changes Significant re-statement such for reasons the and reports, earlier in provided information of re-statements any of effect the of Explanation calculations of bases the and techniques measurement Data

Location within Report Management p. 35-39 p. Management p. 42-43 management Risk 35-39 p. Management p. 112-116 training and Recruitment p. practices Anticorruption 41 p. 40 Ombudsman p. 40 Conduct of Code p. 29-34 Fibria About Management p. 13-14 body. each in experience and knowledge of diversity a for striving qualifications, their on based chosen are committees its and Directors of Board the of members The p. practices Anticorruption 41 p. 40 Ombudsman p. 40 Conduct of Code 35-39 p. Management 35-39 p. Management 35-39 p. Management independent. are Directors of Board the of Two members NA 35-39 p. Management p. assurance 170-172Independent p. 175 Index Content changes significant no were There p. 13-17 Report this About p. 13-17 Report this About

DMA DMA Economic Economic performance 4.17 4.16 4.15 4.14 Stakeholder engagement 4.13 4.12 4.11 initiatives external to Commitments C C EC1 EC2 Agroforestry p. 135-136Agroforestry p. 164-168 performance and Financial-economic p. 48-49, planning p. 42-43, Strategic management Risk p. 29-34, p. 9-12, Fibria management About the from Message chapters the in as well as table, following the in mentioned chapters the in available is topics specific on approach management the about Information Asia. and Europe America, North in based are centers distribution pulp seven Fibria’s (China). Kong Hong and office) (representative Beijing (Hungary), Csomád (Switzerland), Nyon States), (United Miami Paulo, São in offices have departments Logistics and Sales The Logistics. Global and Sales, Supplies, Planning, Strategic Audit, Performance, and Budget Controllership, Relations, Investor Treasury, areas: following the of officers among shared is management Fibria’s economic approach: Management reporting its through including concerns, and topics key those to responded has organization the how and engagement, stakeholder through raised been have that concerns and topics Key group stakeholder by and type by engagement of frequency including engagement, stakeholder to Approaches engage to whom with stakeholders of selection and identification for Basis organization the by engaged groups stakeholder of List organizations advocacy national/international and/or associations) industry as (such associations in Memberships subscribes or endorses organization the which to initiatives other or principles, charters, social and environmental, economic, developed Externally or principle is addressed by the organization approach precautionary the how and whether of Explanation capital providers and governments providers capital to payments and earnings, retained investments, community other donations compensation, employee and revenues, operating costs, including distributed, and generated value economic Direct organization’s due to climate change activities the for opportunities and risks other and implications Financial

Location within Report Personnel management p. 108-122 management Personnel p. 106-107Government 102-105 p. Suppliers p. 78-79 communities on Impacts p. 76-77 model Relationship p. 74-100Communities p. 52-61 Sustainability p. 13-17 Report this About p. 9-12 management the from Message p. 108-122 management Personnel p. 106-107Government 102-105 p. Suppliers p. 78-79 communities on Impacts p. 76-77 model Relationship p. 74-100Communities p. 52-61 Sustainability p. 13-17 Report this About p. 9-12 management the from Message p. 125-127 parties third from supplies Wood p. 108-122 management Personnel p. 106-107Government 102-105 p. Suppliers p. 74-100Communities p. 68-69 sales Pulp p. 52-61 Sustainability p. 29-34 Fibria About p. 13-17 Report this About p. 9-12 management the from Message p. 29-34 Fibria About p. 106-107 policies Public p. 61 commitments Main p. 61 commitments Main Climate p. governance 159 Main results p. 21-28 results Main Climate p. governance 159-163

Compliance   7 2 Compact Principle Global Global

  Fibria | Sustainability Report 2011 177 178   Fibria | Sustainability Report 2011 Materials Environmental performance DMA Energy Environmental I Market presence A A A C C C C C C C C C ndirect economic impacts EN5 EN4 EN3 EN2 EN1 EC9 EC8 EC7 EC6 EC5 EC4 EC3 55-60, Relationship model p. 76-77 and Socioenvironmental education p. 99-100 education p. 76-77 Socioenvironmental and model Relationship 55-60, p. targets and goals Short-term p. 52-54, commitments Long-term 50-52, p. Certifications p. 48-49, planning Strategic chapters the in as well as table, following the in mentioned chapters the in available is topics specific on approach management the about Information laws. environmental with compliance for responsible also are They transport. and production waste solid and emissions, air and water biodiversity, energy, and water materials, of disposal and consumption monitoring for responsible are departments These Relations. Corporate and Sustainability, Technology, Environment, Industrial Environment, Forest of areas the by conducted is management Environmental approach: Management Energy saved due to conservation and efficiency improvements efficiency and conservation to due saved Energy energy consumptionIndirect source by primary source energy primary by consumption energy Direct materials input recycled are that used materials of Percentage volume or weight by used Materials including of impacts the extent impacts, Understanding and describing significanteconomic indirect pro engagement bono or inkind, commercial, through benefit public for primarily provided and services investments of infrastructure andDevelopment impact operation significant of locations at community local the from hired management senior of proportion and hiring local for Procedures of operation locations atsuppliers significant locally-based on spending of proportion and practices, Policy, operation of locations significant at wage minimum local to compared gender by wage level entry standard of ratios of Range government from financial received Significant assistance obligations plan benefit defined organization’s the of Coverage

Location within Report Industrial operations: Energy p. 151 Energy operations: Industrial NA operations: Forestry 150 p. Energy operations: Industrial p. 145 Energy operations: Forestry p.150 Energy operations: Industrial p. 145 Energy operations: Forestry materials not userecycled process, of pulp production does andgrits The industrial lime mud). dregs, as (such corrective soil and fertilizer for used operations industrial from waste of exception the with materials recycle use not Fibria's operations forestry do p. 149 utilities and Recovery operations: Industrial www. operations: Forestry 102-105 p. Suppliers p. 74-87 Communities p.75Communities Online p. 104 Suppliers Online p. 110Workforce p. 168 financing Public p. 112Workforce fibria .com.br/rs2011

Compliance             Principle Compact Global 8 and 9 8 and 8 8 9 8 and 8

waste and effluents Emissions, Biodiversity Water A A A A A A A A C C C C C C C EN20 EN19 EN18 EN17 EN16 EN15 EN14 EN13 EN12 EN11 EN10 EN9 EN8 EN7 EN6 NO, SO, and other significant air emissions by type and weight and type by emissions air significant other and SO, NO, weight by substances ozone-depleting of Emissions achieved reductions and emissions gas greenhouse reduce to Initiatives weight by emissions gas greenhouse indirect relevant Other weight by emissions gas greenhouse indirect and Total direct risk extinction of level by operations, by affected areas in habitats with species list conservation national and species List Red IUCN of Number on biodiversity impacts managing for plans future and actions, current Strategies, Habitats protected or restored areas protected value outside biodiversity high of areas and areas protected in biodiversity on services and products, activities, of impacts significant of Description areas protected outside value biodiversity high of areas and areas protected to, adjacent or in, managed leased, owned, land of size and Location reused and recycled water of volume total and Percentage water of withdrawal by affected significantly sources Water source by withdrawal Total water achieved reductions Initiatives to reduce energy consumption indirect and result of these initiatives a as requirements energy in reductions and services, and products based energy renewable or energy-efficient provide to Initiatives of the smoke the of theidentify monochromatic color to scale, Ringelmann the using smoke, black to relation in the with conducted is control monthly A sources. mobile by emissions equipment to monitor these have not do operations Forestry p. 154-155Emissions for deployment scheduled been yet not have these but GHGs, of reduction the allow may that projects evaluating are currently We target. efficiency energy the reduce greenhouse gases, beyond to 2011In initiatives no there Climate p. governance 161-163 Climate p. governance 161-163 p. 143 Biodiversity p. 142 Biodiversity p. 141 Biodiversity 140-141 p. Biodiversity Online p. 139 Biodiversity 152-153 p. Water operations: Industrial water re-use or recycle not do operations Forestry Water p. operations: Industrial 152 p. 131-132 resources water of operations: ManagementForestry Water p. operations: Industrial 152 p. 132 resources water of operations: ManagementForestry 2011 in operations industrial or forestry either in consumption energy indirect reduce to initiatives no were There p. 151 Energy operations: Industrial p. 145 Energy operations: Forestry                8 8 9 8 and 8 8 9 8 and 9 8 and 8 8 7, 9 8and 8 8 8 8 8

  Fibria | Sustainability Report 2011 179 180   Fibria | Sustainability Report 2011 Overall Transport Compliance services and Products A A A A C C C C C C EN27 EN26 EN25 EN24 EN23 EN22 EN21 EN30 EN29 EN28 are reclaimed by category by reclaimed are that materials packaging their and sold products of Percentage mitigation impact of extent and services, and products of impacts environmental mitigate to Initiatives organization’s of discharges water and runoff reporting the by affected significantly habitats related and bodies water of value biodiversity and status, protected size, Identity, internationally shipped I, II, III, and VIII, and percentage of waste transported Annex Convention Basel the of terms the under hazardous deemed waste treated or exported, imported, transported, of Weight Total numberand volume spills of significant method disposal and type by waste of Total weight Total water and destination discharge by quality by type by investments and expenditures protection Total environmental of the workforce members and transporting operations, organization’s the for used materials and goods other and products transporting of impacts environmental Significant regulations and laws sanctions for noncompliancenon-monetary with environmental of number total and fines significant of value Monetary

have the percentage of reuse of percentage the have not does company The clients. Fibria’s by made are scrap as wires the of reuse and separation The bale. pulp the tie to used are Wires process. the in used is that pulp, of made is itself packaging the as bales, pulp of packages reclaim not We do and industrialoperations forestry the in impacts environmental mitigate to initiatives reported we Report 2010 our In Sustainability waste. into turn not does and products dangerous no has and products, other for material raw the is pulp, Fibria's product, chapter p. Effluents 158 the in reported is indicator The protocol. the in definitions the to according the industrialoperations, for significant not is indicator This discharge water into water bodies. not do operations Fibria's forestry of the Basel Convention terms the under hazardous deemed waste transport not does Fibria 2011 in spills significant no were There p. 157 Waste operations: Industrial p. 146 Waste operations: Forestry 156 p. Effluents operations: Industrial p. 133 resources water of operations: ManagementForestry p. 158 p. Investments operations: Industrial 147 p. operations: InvestmentsForestry p. 169 Portocel Wood logistics p. 129-131 p. 68 logistics Pulp final decision the awaits Fibria as paid been have fines No (R$540,000). Unit Três the Lagoas at one and R$136,500) (total: Unit Aracruz the at 2 3fines, received Fibria 2011, In operations: Industrial p. 127 parties third from supplies Wood operations: Forestry

          7, 9 8and 8 8 8 8 8 7, 9 8and 8 9 8 and 9 8 and Employment DMA D education and Training Occupational health and safety Equal remuneration for women and men Labor/management relations practicesLabor and decent work A A A A A C C C C C C C C C C opportunity equal and iversity LA14 LA13 LA12 LA11 LA10 LA9 LA8 LA7 LA6 LA5 LA4 LA15 LA3 LA2 LA1 model p. 76-77 and Socioenvironmental education p. 99-100 education p. 76-77 Socioenvironmental and model Relationship p. 55-60, targets and goals Short-term p. 52-54, commitments Long-term p. 48-49, planning Strategic chapters the in as well as table, following the in mentioned chapters the in available is topics specific on approach management the about Information the company’s 18,000 strong workforce. of thirds two about for account who contractors, involves also policy Fibria’s labor Industrial). and (Forestry Environment and Relations, Corporate and Sustainability Supplies, Development, Organizational and Human of departments the by led is management People approach: Management employee category, by ofoperation significant locations category, employee by men to women of renumeration and salary basic of Ratio diversity of indicators other and membership, group minority group, age gender, to according category employee per Composition of governance and bodies breakdown of employees byand development reviews, gender career Percentage of regular receiving employees performance them in managing endings career of the and continued employees assist employability support that learning lifelong and management skills for Programs category employee Average of hours training per year perby employee unions trade with agreements formal in covered topics safety and Health diseases regarding serious members or community families, their members, workforce assist to place in programs risk-control and prevention, counseling, training, Education, gender by and region by fatalities workrelated of number and absenteeism, and days, lost diseases, occupational injury, of Rates programs safety and health occupational on advise and monitor help that committees safety and health –worker management joint formal in represented workforce total of Percentage agreements collective in specified is it whether including regarding changes, operational Minimum notice period(s) agreements bargaining Percentage of covered employees by collective gender by leave, parental after rates retention and work to Return or by part-time employees, majorto operations temporary provided not are that employees full-time to provided Benefits gender, and region group, age by turnover employee of rate and Total number region and contract, Total employment by type, employment workforce

Location within Report Workforce p. 111 p. Workforce 109-110 p. Workforce p. 38 Management p. 113 training and Recruitment p. 116 training and Recruitment p. 115 training and Recruitment 122 p. unions labor with Relationship Online p. 119 safety and Health p. 120-121 life of Quality Online p. 117-118 safety and Health p. 109 Workforce p. 117 safety and Health 122 p. unions labor with Relationship 121 p. unions labor with Relationship Online 111 p. Workforce 111-112 p. Workforce p. 109 Workforce 108-109 p. Workforce p. 21-28 results Main Compliance                Principle Compact Global 3 3 1 and 6 1 and 6 1 and 6 1 and 6 1 1 1 3 1 and

  Fibria | Sustainability Report 2011 181 182   Fibria | Sustainability Report 2011 I practices Security F labor Child F N I DMA H A A C C C C C C C ndigenous rights nvestment and procurement practices bargaining collective and association of reedom orced labor and compulsory uman Rights uman on-discrimination HR6 HR5 HR4 HR3 HR2 HR1 HR9 HR8 HR7 model p. 76-77 and Socioenvironmental education p. 99-100 education p. 76-77 Socioenvironmental and model Relationship p. 55-60, targets and goals Short-term p. 52-54, commitments Long-term p. 48-49, planning Strategic chapters the in as well as table, following the in mentioned chapters the in available is topics specific on approach management the about Information legislation. the to compliance as well as competition, unfair and corruption combat to mechanisms and policies representatives, and bodies government with relationship the communities, neighboring with relationship the to relate aspect this of features main The department. Legal the and Ombudsman the Commission, Conduct the as well as department, relations corporate and sustainability the in concentated are society to related aspects of management The approach: Management the effective abolition of child labor child of abolition effective the to contribute to taken measures labor,and child of incidents for risk significant having as identified suppliers significant and Operations rights these support to taken actions and risk, significant at or voilated be may bargaining collective and association of freedom exercise to right the which in identified suppliers significant and Operations taken actions corrective and discrimination of incidents of Total number including of the percentage trained employees of that human are rights relevant to operations, aspects concerning procedures and policies on training employee of Total hours taken actions and screening, rights human undergone have that partners business other and contractors suppliers, significant of Percentage screening rights human undergone have that or concerns, human that rights include clauses incorporating and contracts agreements investment significant of number total and Percentage of indigenous people and actions taken actions and people indigenous of rights involving violations of incidents of Total number relevant to operations are that rights human of aspects concerning procedures or policies organization’s the in trained personnel security of Percentage forced or compulsory labor of forms all of elimination the to contribute to measures and labor, compulsory or forced of incidents for risk significant having as identified suppliers significant and Operations

Suppliers p. 102-103 p. Suppliers 121-122 p. unions labor with Relationship p. 41 conduct of Code p. 116 training and Recruitment p. 40 Conduct of Code p. 102 Suppliers 2011 in made were investments significant No indigenous people in 2011 in people indigenous of rights involving violations of incidents no were There Online p. 40 Conduct of Code 102-103 p. Suppliers Location within Report Compliance          1, 6 2and 6 5 and 1, 3, 2, 4, 6 5 and 1, 3, 2, 4, 6 5 and 1, 3, 2, 4, 1 and 2 1 and 2 1 and 1, 4 2and 1, 5 2and 1, 3 2and Principle Compact Global

Community DMA Society Remediation Corruption Assessment C C C C C C C SO3 SO2 SO10 SO9 SO1 HR11 HR10 Socioenvironmental education p. 99-100 and p. 55-60 targets and goals Short-term p. 52-54, commitments Long-term p. 48-49, planning Strategic chapters the in as well as table, following the in mentioned chapters the in available is topics specific on approach management the about Information unfair competition, as well as compliance. and corruption combat to mechanisms and policies representatives, and bodies government the with relationship the communities, neighboring with relationship the are features main The department. Legal and Ombudsman the Committee, Conduct the as well as Relations, Corporate and Sustainability of department the of responsibility the of are society to related issues of management The approach: Management policies and procedures Percentage of trained employees in organization’s anti-corruption related to corruption risks for analyzed units business of number total and Percentage communities local on impacts negative actual or potential cant signifi with operations in implemented measures mitigation and Prevention communities local on impacts negative actual or potential significant with Operations and development programs assessments, impact engagement, Percentage of implementedcommunity operations with local formal grievancemechanisms through resolved and addressed filed, rights human to related grievances of Number assessments impact and/or reviews rights human to subject been have that operations of number total and Percentage

Location within Report Code of Conduct p. 40 Conduct of Code p. practices Anticorruption 41 88-99 p. communities with Consultation p. 78-79 communities on Impacts p. 76-77 model Relationship 88-99 p. communities with Consultation p. 78-79 communities on Impacts p. 76-77 model Relationship p. 78-79 communities on Impacts p. 76-77 model Relationship p. 41 Conduct of Code labor) child and forced to (related rights human to commitment of items includes suppliers of approval for process – the stakeholders external of Evaluation meetings. results monthly at Code the in mentioned themes the addressing – and areceipt –signing contract the in Conduct of Code the of delivery – workforce the of Evaluation ways: two in Brazil) in (all operations in exists rights human of evaluation of process The

Compliance        Principle Compact Global 1 and 2 1 and 2 1 and 10 10

  Fibria | Sustainability Report 2011 183 184   Fibria | Sustainability Report 2011 safety and health Customer DMA Anti-competitive behavior Public policy core labeling service and Product responsibilityProduct Compliance A A A A A C C C C C PR5 PR4 PR3 PR2 PR1 SO8 SO7 SO6 SO5 SO4 in the chapters Strategic planning p. 48-49, Long-term commitments p. 52-54 and Short-term goals and targets p. 55-60 targets and goals Short-term p. 52-54 and commitments Long-term p. 48-49, planning Strategic chapters the in as well as table, following the in mentioned chapters the in available is topics specific on approach management the about Information Commercial. and (HSMT) Health Occupational and Safety Hygiene, of areas the of responsbility the of mainly is compliance) and privacy customer communications, marketing services, and products of labeling client, the of safety and (health responsibility product to related Aspects approach: Management surveys measuring customer satisfaction. measuring customer surveys of results including satisfaction, customer to related Practices outcomes of type by labeling, and information service and product concerning codes voluntary and regulations with non-compliance of incidents of Total number requirements information such to subject services and products significant of percentage and procedures, by required information service and product of Type outcomes. of type by cycle, life their during services and products of impacts safety and health concerning codes voluntary and regulations with non-compliance of incidents of Total number procedures such to subject categories services and products significant of percentage and improvement, for assessed are services and products of impacts safety and health which in stages cycle Life laws for noncompliance and with regulations sanctions monetary non- of number total and fines significant of value Monetary outcomes their and practices monopoly and anti-trust, behavior, anticompetitive for actions legal of Total number country by institutions related and politicians, parties, political to contributions in-kind and financial of Total value development and lobbying policy public in participation and positions policy Public corruption of incidents to response in taken Actions

Location within Report Pulp sales p. 69 sales Pulp labeling and information service and product concerning codes voluntary and regulations with compliance non- of history no is There p. 69 sales Pulp cycle life their during services and products of impacts safety and health concerning codes voluntary and regulations with compliance non- of history no is There p. 68-69 sales Pulp p. 44-47 lawsuits and Fines p. 44 lawsuits and Fines 106 p. Contributions to public campaigns p. 24 results Main p. 106-107 policies Public 106 p. Contributions to public campaigns p. practices Anticorruption 41

Compliance           Principle Compact Global 10 5 1 and 10

  NR Compliance privacy Customer communications Marketing A A C C and occupation. Principle 6: theeliminationofdiscriminationinrespectemployment Principle 5: theeffectiveabolitionofchildlabour; Principle 4: theeliminationofallformsforcedandcompulsorylabour; effective recognitionoftherighttocollectivebargaining; Principle 3: businessesshouldupholdthefreedomofassociationand Labour Principle 2: make surethattheyarenotcomplicitinhumanrightsabuses. tionally proclaimedhumanrights; Principle 1: businessesshouldsupportandrespecttheprotectionofinterna- Human rights The GlobalCompactPrinciples:

PR9 PR8 PR7 PR6 Not reported Not reported Partially reported Fully of products and services and products of use and provision the concerning regulations and laws with noncompliance for fines significant of value Monetary data customer of losses and privacy customer of breaches regarding complaints substantiated of Total number outcomes of type by sponsorship and promotion, advertising, marketing concerning including codes communications, voluntary and regulations with non-compliance of incidents of Total number promotion, and sponsorship advertising, including communications, marketing to related codes voluntary and standards, laws, to adherence for Programs

NA A C

Does not apply not Does Additional indicator Additional Core indicator including extortionandbribery. Principle 10: businessesshouldworkagainstcorruptioninallitsforms, Anti-corruption friendly technologies. Principle 9: encourage thedevelopment anddiffusionofenvironmentally responsibility; Principle 8: undertake initiativestopromotegreaterenvironmental mental challenges; Principle 7: businessesshouldsupportaprecautionaryapproachtoenviron- Environment services in 2011 in services and products of provision the concerning regulations and laws with noncomplaince for fines significant of cases no were There data customer of customer and privacy losses of breaches regarding complaints of history no is There p. 70 sales Pulp p. 69 sales Pulp     1

  Fibria | Sustainability Report 2011 185 186   Fibria | Sustainability Report 2011

Standard Disclosures Indicators Performance Supplement & Sector Indicators G3.1 Performance Disclosures Profile G3.1 Approach Disclosures G3.1 Management Optional Mandatory Third party checked party Third

It was submitted for independent external assurance by Bureau Veritas Certification and met the A+ requirements. A+ requirements. the met and by Bureau assurance Veritas Certification external for independent submitted was It This document follows the Sustainability Reporting Guidelines (G3.1) issued by the Global Reporting Initiative (GRI) Initiative (G3.1) Guidelines Reporting Global by the Reporting issued Sustainability the follows document This Level Application GRI Self declared GRI checked 1 Not Required Not discuss, refine and disseminate a methodology for the reporting of sustainability. The GRI guidelines provide principles for defining both content content both defining for principles and assurance of quality information.provide Learn more at www.globalreporting.org. guidelines GRI The sustainability. of reporting the for methodology a disseminate and refine discuss, 1. Multi-stakeholder organization that brings together - business, civil society, universities, nongovernmental organizations, among others - to and Environmental Social Economic, of: each from one least at including 10 Indicators Performance of aminimum on Report 4.1 4.14 a4.4, a4.15 3.1 3.10 a3.8, a3.12; 2.10; a 2.1 1.1; on: Report C C C+ C+ C+ C+ Report Externally Assured Report externally assured 4.16 a 4.17 a 4.16 4.5 a4.13, 3.9, 3.13; 1.2; level Cplus level for listed criteria all on Report Responsibility Labor, Society, Product Human Rights, Environmental, Economic, of: each from one least at including Indicators Performance 20 of aminimum on Report Category for eachindicator Disclosures Approach Management : B B

B+ B+

B+ B+ Report Externally Assured Category for eachindicator Disclosures Approach Management for level B level for requirement as Same its omissionits for reason the explaining b) or Indicator the on reporting a) Materiality Principle by either: the to regard due with Indicator Supplement Sector G3.1 each on and Report A Report externally assured A+ applicationA+ level. Fibria self-declares an application level A+. an is it that confirmed and Report this assured Certification Veritas Bureau A A+

A+ 1

Report Externally Assured . Report externally assured online version (www. version online in form the evaluation an provide we this purpose, For thisReport. on comments to their submit We invite readers pany’s operational routine. com the into reported indicators performance sustainability incorporate to effort our in We advanced 4.     3. We sought to strengthen the adherence to the principles of balance and comparability through:       reporting: sustainability of models refining and defining at aimed initiatives in participated 1. Fibria Report: Sustainability in 2011 out our developing carried and of learning main actions the We highlight below objectives the with 2011. in interactions and results tions, opera our about information relevant most the with gathers and 10 versions, afinalproduct, generated which areas, different from professionals of over200 work collective is the it words, other In dissemination. and production visual areas, reporting with validation writing, and consolidation collection, of data of result aprocess the was and ment docu of the third edition is the This responsibilities. and partners staff, schedule, budget, on planningand meetings Fibria’s on 2011 2011, in August Production began Report Report previous of the Sustainability assessment on based Fibria’s– Sustainability Report management and Creation, development 01419-908 –Brazil). Paulo –SP –São Santos, SA – (Fibria Alameda – Celulose Corporate 1.357Communications – andar – CEP 10º Office Administration      tion to directing the content of the publication: addi in Report, Sustainability the of outside and within evolved has Matrix Materiality the of use The 2. carrying out an internal discussion table to enhance the accountability of social impacts of our forestry operations. of forestry our impacts of social to accountability enhance the table internal an out discussion carrying (BAT Available – Best pulpand per of tonne Techniques consumption specific such as indicators, of industry inclusion abroad; and Brazil in companies with reporting sustainability of process the on benchmark level; application GRI A+ reaching an indicators, fullyall core performance meeting responding to questions from the blog blog the from to questions responding Prize; Report Annual ABRASCA in the participation BM&FBOVESPA; organized by the events themed Report; of One co-author Krzus, by Michael lecture in-house (IIRC); Committee Reporting Integrated International of the methodology integrated on reporting consultation public of Review Annex, Brazil National the as well as (G4), guidelines of its generation next the on consultations public GRI selecting the most relevant topics of the Report based on the Matrix and the Long-Term the and priori Matrix the on Targets further based for the Report of the topics relevant most the selecting Matrix; Materiality that the relates to Report the of parts of identification 15-17); (pages stakeholders highlighted by internal external 10 and of the materialissues most understanding Long-Term of definition in53-55); the inclusion (pages Targets 43 44); and tocompany’s(pages the in relation matrix risk analysis that show reference values for each indicators); referenceforthat each show values assurancetization the and external directing process. the Portuguese version of the G3.1 guidelines, meetings and seminars organized by GRI in Brazil; G3.1 of the organized by GRI version seminars and meetings guidelines, Portuguese the .com.br/rs2011) and the electronic address (comunicacaofibria@ address .com.br/rs2011)fibria electronic the and Testando os limites da sustentabilidade da limites os Testando . .com.br)fibria the and

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  Fibria | Sustainability Report 2011 187 188   Fibria | Sustainability Report 2011 as a voluntary national forest certificaton programme, in programme, 1991. certificaton forest national avoluntary as NGO's, and institutes research entities, associations, several of ration collabo with (SBS), Silviculture for Society Brazilian the by conceived CERFLOR: pulp. bleached the of baling and drying and stock; brown the bleaching stock; brown the to extract chips the cooking to chips; wood the reducing processes: main four involves (pulping) pulp into bleached wood the of mation transfor The wood. from fibers cellulose of bleaching subsequent and extraction industrial the of product the pulp: eucalyptus Bleached products. useful to produce molecules) or organelles cells, isms, Biotechnology: (black liquor). process manufacturing the from waste the and residues wood as such biomass, from generated is units Fibria’s industrial at consumed energy the of Part technology. and techniques special employing and alcohol), gases, (oils, derivatives fuel of burning the or ing, Biomass: populations. between fragments these andment consequent between genetic exchange move unhindered fauna with local providing thereby activity, human by isolated become have that vegetation) native of blocks (or ments Biodiversity corridors: Biodiversity ecosystems. of and species between species, within diversity ing includ part, are they which of complexes ecological the and sources all from organisms living among variability the definition: Biodiversity on Convention UN others. the affects directly species anygiven of and their inter-relationships, whereby or the ecosystems, existence individual, each within contained genes and complexes) ecological Biodiversity: tugs. by pushed are but propelled, self not are Fibria’s barges State). Santo (Espírito Aracruz in located terminal maritime the to Portocel, Bahia from pulp) and (wood products forest to transport uses Fibria which draft, a shallow Barges: Piauí. and Sul do Grande Rio of states the between belt, coastal ian Brazil the along found mangroves) and marshes salt as (such tions Atlantic Forest biome: occupation. human toric Archaeological sites: population. human the of well-being the ensure and soil the protect to flora, and of fauna flux genetic the and versity, biodi stability, geological landscape, the resources, water preserve to is which of function environmental the hills, of tops the and more, 45º of or slopes altitude, in meters 1,800 above areas tableland, of fringes the on (restingas), marshes salt in reservoirs, around streams, and of rivers banks the on sources, to water close located etation, APPs (Permanent Preservation Areas): (Permanent APPs products. related and honey to produce bees raising of system the Apiculture: timber trees with agriculturalneous cultivation of fruit practices. and/or Agroforestry system: Glossary also known as lighters, these are flat bottomed boats with with boats bottomed flat are these lighters, as known also organic matter used to generate electricity, through burn The Brazilian Forest Certification Programme (Cerflor) was (Cerflor) Programme Certification Forest Brazilian The also known as beekeeping, it is the name given to given name the is it beekeeping, as known also the combination of life forms (living organisms and and organisms (living forms life of combination the technology thattechnology (organ agents employs biological system of production that combines the simulta the combines that of production system locations where there are vestiges of pre-his of vestiges are there where locations strips of vegetation linking large forest frag forest large linking of vegetation strips a collection of forests and pioneer forma 1 sites with or without veg without or with sites ------sion reduction (CER) credits, each equivalent to one tonne of CO of tonne to one equivalent each credits, (CER) reduction sion emis certified to earn countries developing in projects sion-reduction emis CDM allows The (CDM): Mechanism Development Clean customer. end the reaches it until stages the all through materials raw of forest traceability the of certification (CoC): Custody of Chain Forest Stewardship Council threaten forest assets. to come might that else anything or weeds and fires diseases, pests, Forest protection: etc.). plants, steel sawmills, mills, (pulp industry forestry the to supply order in properties rural Forest partnerships: sustain the ecosystem. that mechanisms the respecting while benefits, social and economic to obtain order in aforest of management Forest the management: or gaseous material. Emissions: water. of bodies ally Effluent: to humans. usefulness to its regard in particularly drainage, and ture tex content, mineral as such soil, the of qualities resources: Edaphic services). (or goods said of commercializing and transporting manufacturing, the in resources natural of consumption the and impact environmental in reduction asteady life, of involving quality yield and needs human satisfy that Eco-efficiency: accounting of statements publicly listed companies. the of analysis the in utilized is term amortization”. and The preciation Global Reporting Initiative (GRI): netic information of living organisms. ge the contains that cells in found material the Genetic material: of about the on heredity based such knowledge characteristics. characteristics, desirable bearing animals or plants of reproduction Genetic improvement: world’s forests. the of management responsible the to promote established zation EBITDA: bodies. regulatory external and internal and Board Management Board, Supervisory ers, stakehold the between relations involving stimulated, and monitored run, are organizations whereby Corporate governance: system mothercuttings from trees. selected using performed is cloning eucalyptus, the of case copy. the cal In Cloning: a“donor” of plant. fragments or cells the from developed identical, genetically are that plants of seedlings Cloned seedlings: Kyoto Protocol. the under targets reduction emission their of apart to ameet tries coun industrialized by used and sold, and traded be can CERs These FSC ® is an independent, non-governmental, not-for-profit organi not-for-profit non-governmental, independent, an is stands for “earnings before deducting interest, taxes, de taxes, interest, deducting “earnings for before stands liquid waste that is discharged into the environment, usu environment, into the discharged is that waste liquid process whereby one obtains a clone – a genetically identi –agenetically aclone obtains one whereby process the discharging into the atmosphere of any solid, liquid liquid anysolid, of atmosphere into the discharging the providing goods (or services), at competitive prices, prices, competitive at services), (or goods providing set of activities designed to protect forests from from forests to protect designed activities of set the sponsored production of wood on private private on wood of production sponsored the the use of science for the selection and and selection the for of science use the ® (FSC ® a network-based organiza ): established in 1993, in the established 2 ------. located on private land and set up at the initiative of the landowner. the of initiative the at up set and land private on located conservation units Reserves): Heritage Natural (Private RPPNs crops. agricultural that attack Pesticides: purpose. apublic for up set association society civil anon-profit organization): NGO (Non-governmental property. rural the of area total the of 20% than less not represent must reserve legal the that specifies law Brazilian The flora. fauna and native the of protection and sheltering the and biodiversity, the of conservation the cesses, pro ecological the of rehabilitation and conservation the resources, natural the of use sustainable the for aside set is which APPs, ing includ not property, rural anygiven of area an (RL): Reserve Legal apartnership. in involved are nies Joint-venture: prising gullies, and springs,streams. brooks com basically system, Hydrographic drainage asmall watershed: conservation value. their enhance or to maintain manner, order in asuitable in managed to be need areas Such general. in to society or community local the to interest of special places therefore are and perspective, local or regional national, aglobal, from critical, or exceptional to be sidered con are that attributes cultural or social ecological, biological, tain cer has that area an Areas): Value Conservation (High HCVAs weeds. or plants able Herbicides: field. asoccer of area to the equivalent m², approximately 10,000 to corresponding area, of measurement of aunit (ha): Hectare framework. porting re sustainability used widely most world’s the pioneered that tion products used for the extermination of pests or diseases diseases or pests of extermination the for used products chemical product used to control or eliminate undesir eliminate or to control used product chemical a business enterprise in which two or more compa more or two which in enterprise a business ------tCO aspirations. and needs human satisfying and environment the respecting time, same the at while, growth nomic eco promote must it sustainable, to be activity an For line”). bottom “triple expression the (hence economic and social environmental, lars: pil three on based is Sustainability 1987). Report, (Brundtland tions genera future of opportunities the diminishing without one’s needs to satisfy able being development”, meaning “sustainable expression Sustainability: the company’s activities. Stakeholders: tCO earth’s atmosphere. the of temperature the on have can activity agiven impact the of measuring the factor, facilitates it to asingle effect greenhouse the of causes the reducing By gas. each of effect greenhouse potential into the lithosphere and roughly 15 km into the atmosphere. 1km around of adepth between extending (land), lithosphere the and occursThis within cycle the atmosphere (air), the hydrosphere (water) seepage. underground and run-off surface infiltration, transpiration, evaporation, rain, are: which among chief conditions, natural under Water cycle: water. of bodies less much system, sewage public the in of disposed be not should characteristics, to their due that, liquids certain cludes in also term The cleaning. street and services agriculture, hospitals, homes, business, commercial or industrial acommunity, of tivities Waste: lease a characteristic into odor the atmosphere. re can conditions, meteorological and location mill process, the of circumstances certain under which, production pulp the in generated (Total Sulfur): TRS Reduced gases in terms of carbon dioxide (CO dioxide carbon of terms in gases 2 2 Tonnes of carbon dioxide equivalent per tonne of pulp. of tonne per equivalent dioxide Tonnes carbon of pulp: /t eq eq: eq: materials in a solid or semi-solid state, generated by the ac the by generated state, semi-solid or asolid in materials measurement for converting and standardizing greenhouse the set of different phases through which water passes interested parties who affect and/or are affected by by affected are and/or affect who parties interested a concept that gained force in the 1980s, through the the through 1980s, the in force gained that a concept a range of sulfur compounds that are are that compounds sulfur of arange 2 ), taking into consideration the the into consideration taking ), ------

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 Central Administration Office Posto da Mata Rodovia BR-418, Km 37 – Posto da Mata Alameda Santos, 1357 – 6º andar Nova Viçosa/BA São Paulo/SP CEP 45928-000 CEP 01419-908 Tel.+55 73 3209-8444 Tel. +55 11 2138-4000 Fax +55 73 3209-8307 Fax: +55 11 2138-4000 Três Lagoas Rodovia BR-158, km 258, Fazenda Barra do Moeda,  Industrial Units Caixa postal 515 – Três Lagoas/MS Aracruz cep 79620-970 Rodovia Aracruz-Barra do Riacho, s/nº, Km 25 Tel. +55 67 3509-1082 Aracruz/ES Fax +55 67 3509-1001 CEP 29197-900 Tel. +55 27 3270-2122 Vale do Paraíba Fax +55 27 3270-2136 Estrada Municipal do Barreiro, 3000 – Bossoroca Taubaté/SP Jacareí CEP 12283-470 Rod. Gal. Euryale Jesus Zerbini, Km 84 - SP 66, São Silvestre Tel. +55 12 2125-9899 Jacareí/SP Fax +55 12 2128-1721 CEP 12340-010 Tel. +55 12 2128-1100 Fax +55 12 3957-1261  Commercial and Representative Offices Piracicaba Via Comendador Pedro Morgante, 3393 USA Piracicaba/SP 18851 NE 29th Avenue Suite 530 CEP 13415-900 Aventura, FL - 33180 – USA Tel. +55 19 2106-9200 Tel. +1 305 940-9762 Fax. +55 19 2106-9619 Fax +1 305 940-9763

Três Lagoas Europe Rodovia BR-158, km 258, Fazenda Barra do Moeda Av. Reverdil, 12-14 Caixa postal 529 – Três Lagoas/MS CH-1260 – Nyon, Switzerland cep 79620-970 Tel. +41 22 994-9030 Tel. +55 67 3509-8041 Fax +41 22 994-9040

 Forestry Units and Offices Hungary Akácos út 11 – H-2161 Capão Bonito Csomád – Hungary Rodovia Raul Venturelli, Km 210, Caixa postal 28 Tel. +36 28 566-576 Capão Bonito/SP Fax. +36 28 566-575 CEP 18300-970 Tel. +55 15 3653-9227 / 15 3653-9594 Beijing Fax +55 15 3543-9424 Towercrest Plaza, Suite 724 3, Mai Zi Dian West Road Capão do Leão Chao Yang District Estrada BR-116, Km 532, nº 293 Beijing 10006 – China Capão do Leão/RS Tel. +86 10-6467-4339 CEP 96160-000 Fax +86 10-6467-4339 Tel. +55 53 2123-1995

Conceição da Barra Hong Kong Rodovia BR-101 Norte, Km 49 (trevo), Caixa postal 10 2501-2 Great Eagle Centre Conceição da Barra/ES 23 Harbour Road CEP 29960-000 Wanchai, Hong Kong, SAR Tel. +55 27 3761-4777 Tel. +852-2866-7956 Fax +55 27 3761-4715 Fax. +852-2865-2423