PAPER our about sustainability report 08/09 Grupo Portucel Soporcel Mitrena – Apartado 55 2901-861 Setúbal – Portugal www.portucelsoporcel.com Development and Coordination Sustainability Committee Forest and Environment Advisory to the Board Corporate Image and Communication Department Publication Characteristics Inside pages were printed on 120 g/m2 Inaset Premium Offset and cover on 350 g/m2 Soporset Premium Offset both with FSC certification. Certification Consults Deloitte & Associados SROC, S.A. Acknowledgment We would like to thank our employees for having taken part in the photographs that illustrate the Company’s Sustainability Report The electronic version of Sustainability Report 08/09 is available at the Company’s website www.portucelsoporcel.com Images Group’s Image Bank Slides & Bites Paulo Oliveira (Pages. 7, 10, 14, 25, 37, 39, 51, 54, 57, 61, 63, 69, 70, 73, 74, 116) Joaquim Pedro Ferreira (Page 33) Design and Production P-06 Atelier Graphic Lidergraf Free translation of a report originally issued in Portuguese. In the event of discrepancies, the Portuguese language version prevails. PAPER our about sustainability report 08/09 Our paper is an environmentally responsible product, which is made from a renewable natural resource planted specifically for this purpose. By choosing to print on our paper you will also be contributing to sustainable development as implemented under the forestry management model of the Portucel Soporcel group. If you make sure our paper is recycled after use, your contribution may be rewarded in the form of another paper product. CONTENts 1. AboUT THis Report 6 2. Messages from THE board 12 3. 2008/2009 HigHligHts 18 4. AboUT THE PortUcel Soporcel groUP 24 5. AboUT OUR MANagemeNT 32 6. AboUT OUR StaKEHolders 50 7. ForestrY 56 8. AboUT THE Process 76 9. AboUT THE MarKet 94 10. AboUT OUR People AND CommUNitY 106 11. ANNEXes 118 AboUT THis Report 5 A BOUT THIS THIS BOUT LD HERE. BACKWARD. O F R EPORT 6 08/09 eport Y R abilit N stai SU This is the third bi-annual Sustainability Report published by the Portucel Soporcel group. The 2008/2009 Report has been drawn up to inform all our stakeholders and other interested parties of the challenges and opportunities faced over the last two years, especially in terms of our economic, environmental and social performance. The Portucel Soporcel group prepares its Sustainability Report in line with the Global Reporting Initiative (G3) guidelines and for the first time in the Group’s history achieved a compliance score of A+, as duly confirmed by our auditors, Deloitte & Associados, SROC, S.A. All the information contained in this report may be complemented by consulting the Annual Reports and Corporate Governance Reports for 2008 and 2009, available from Portucel Soporcel group’s corporate website at www.portucelsoporcel.com. 1. AboUT THis Report 6 The report covers all Group companies, listed below by business area: Research and Development Agro-Forestry RaiZ Aliança Florestal Atlantic Forest Enerforest Portucel Florestal Services Portucel Florestal Brasil Arboser Portucel Moçambique Ema21 Bosques do Atlântico Empremédia Headbox 8 Pulp and Paper Marketing 08/09 Soporcel 2000 Portucel Soporcel Afrique du Nord eport Pulp and Paper Production Y R About the Future Portucel Soporcel Deutschland abilit Portucel Soporcel Austria N Portucel stai Portucel Soporcel Poland Sp. Z.O.O. SU Soporcel Portucel Soporcel Sales & Marketing Portucel Soporcel España Portucel Soporcel France Energy Portucel Soporcel United Kingdom Enerpulp Portucel Soporcel International PSCE Soporcel North America Soporgen Portucel Soporcel Italia SPCG Portucel International Trading This report is divided into two distinct parts, the conference call1, in order to gauge the perception first of which is an executive summary offering a of the Group’s sustainability management and to brief overview of the main sustainability issues listen to suggestions for improvements, as well as to faced over the two-year period, in non-technical obtain data needed for assessing material issues and language for all our stakeholders. The second drawing up this report. part is a technical report, which complies with the requirements of the Global Reporting Initiative The main issues of relevance to sustainability (GRI), and also includes the verification report from management and reporting in the Portucel Soporcel Deloitte & Associados, SROC, SA. This second group have been identified as follows: part complements the information provided in the summary, with a range of detailed, technical data, designed to meet the information needs of those seeking a fuller report. The decision to organize the report into two documents, one providing an overview and the second a more detailed and technical document, was supported by a panel of representatives of priority stakeholder groups that were consulted as part of a survey, conducted mostly face-to-face or by 1 It was not possible to obtain responses from all the agents consulted, which included representatives of all stakeholder groups identified as a priority by the Group (see page 51). The Group is nonetheless satisfied with the success of the consultation process and takes this opportunity to thank all those who contributed. 9 eport R is H T T U bo A 1. Identification and definition of a list of 2. Consultation of internal and external potentially relevant aspects, drawn from the stakeholders, who were invited to rank Group’s internal documentation, and analysis sustainability issues in order of importance. of topics considered in nine reports from peer companies. 3. Starting with the hierarchy indicated by each 4. At the same time, the Sustainability representative responding to the survey, we Committee, representing the senior arrived at the issues of importance to each management of the Portucel Soporcel group stakeholder group by calculating the average identified its own hierarchy of sustainability score given by stakeholders from the same issues, in the light of Group strategy. group, and then the average for the different stakeholder groups, each group being assigned equal importance. The important issues to be considered in drawing up this Report were determined by weighting the classification assigned by the stakeholders (35%) and that indicated by senior management of the entire Portucel Soporcel group (65%). Issues of importance to the Portucel Soporcel group This process generated a list of sustainability issues on which the Portucel Soporcel group has centred its report, indicated below in the resulting order of importance: Issue Page Atmospheric emissions and climate change 80, 81 Optimization of production processes 18-22, 44, 45 Forestry management 57-63 Improved relations with external stakeholders 51-53 Commitment to renewable energy and energy efficiency measures 77, 78 10 Forest certification and related issues in the Portuguese forestry sector 64, 65 08/09 The importance of the Workforce in implementing the sustainability strategy 107-110 eport Preservation of biodiversity 66-73 Y R Construction of the new mill 21, 78 abilit N stai Measures to promote ethical conduct and to combat fraud and corruption 43 SU Innovation initiatives 24, 77 Ongoing improvement of product and service quality 37, 38, 98-101 Incentives for indigenous forestry 111 The importance of virgin fibre in maintaining the paper production cycle 103, 104 As 2010 is the Year of Biodiversity, the Portucel Soporcel group is pleased to give special prominence to the related issues. Despite the importance which the Group attaches to questions of innovation, it was decided not to include a special chapter on this issue. However, we have sought to draw attention to a number of initiatives which we feel are related to the subject of innovation, highlighting them with the symbol . Tell us what you think Your opinion can make a valuable contribution to Manuel Gil Mata improving the Group’s sustainability management Telf: 213 184 737 | Fax: 213 184 738 and reporting. We have designed a feedback e-mail: [email protected] questionnaire for this report, and would be delighted to receive your contribution. You can find the João Manuel Soares questionnaire on our website, at Telf: 265 709 051 | Fax: 265 709 110 www.portucelsoporcel.com. e-mail: [email protected] If you need any further information or have any Ana Nery questions to put to us, please contact the following Telf: 265 709 003 | Fax: 265 709 165 individuals: e-mail: [email protected] MESSA LD HERE. BACKWARD. O F G E S F RO M THE BOAR THE 12 08/09 eport D Y R abilit N stai SU 2. Messages from THE board 12 13 board E H T from S essage M Our Role in Society In a world experiencing a population boom, the reduced the discharge of effluents. We have forestry products industry in general and the paper improved the quality and increased the number industry in particular face an exciting challenge: of saplings and both planted and encouraged the to produce more, to higher standards, under planting of healthier and more productive forests, increasingly environmentally-friendly conditions and showing respect for the environment and a socially guaranteeing the sustainability of the ecosystems responsible attitude. in which we operate, of the communities and stakeholders whose lives and careers revolve around Without losing sight of the growing demand the industry and of the forest which supplies its raw worldwide for wood, fibre and biomass for energy, materials. we have consolidated our interests in carbon prices, in markets of ecosystems services and in As we move towards a global population of nine biodiversity valorization. thousand million in 2050, we need to produce large quantities on competitive terms, with high quality We seek to achieve success in the present, whilst products and processes, and above all to plant looking forward to the future. forests for the future. This is the stance you will find reflected in this This is what the Portucel Soporcel group has sought Sustainability Report, organized in line with the to do: GRI guidelines and subject for the first time to an external audit.