Local Development and Impacts on Communities - GRI Summary

Impacts Description of positive indirect economic impacts Description of negative indirect economic impacts
Changes in the productivity of organizations, sectors or the whole economy (such as through greater adoption or distribution of information technology) Klabin promotes studies aimed at the adoption of alternatives to single-use plastic, increasing investments in research and development of more sustainable packaging. Research and development times do not keep up with the accelerated pace of market evolution, causing excess demand and rising supply.
Economic development in areas of high poverty (such as the total number of dependents supported through the income of a single job) Income generation in communities with few job opportunities and low quality of life. Community economically dependent on the Company, resorting to the company for requests that should be addressed to the public authority.
Economic impacts of improving or deteriorating social or environmental conditions (such as changing job market in an area converted from small farms to large plantations, or the economic impacts of pollution) Income generation in the communities by encouraging permanence in the field and organic production, driven by projects such as Matas Sociais [Social Forests], Matas Legais [Legal Forests] and the Apiculture & Meliponiculture Program. No identified impacts on this front.
Enhancement of skills and knowledge in a professional community or in a geographic location (such as the need for a supplier base attracting companies with skilled employees, which, in turn, drives the establishment of new learning institutions) With the creation of the Technical Forestry and Agricultural School of Ortigueira, there was access to formal education and the possibility of increasing income. Currently the School has 340 students enrolled in the Forest Operation, Heavy Machinery Maintenance, and Agribusiness courses. No identified impacts on this front.
Number of jobs supported in the supply or distribution chain (such as the employment impacts on suppliers as a result of the growth of an organization’s growth or contraction) Over 30% of Klabin’s staff is made up of indirect employees (see GRI 102-8), and it is an internal practice to prioritize local recruitment. This enables the development of the regional microeconomy and attracts infrastructure investments.
Approximately 59% of the workers in phase I of the Puma II Project were from Paraná. With phase II, the goal to hire local labor continues, with 74% workers from Paraná, of which 44% are from the region of Telemaco Borba, Ortigueira, and Imbaú. The training of local labor is also worth noting, offering professional qualification courses for students and workers living in cities near the operation.
Possibility of increasing income inequality, due to the structural impossibility of providing jobs to a considerable portion of the population, whose job opportunities do not have benefits comparable to those at Klabin; and due to the temporary nature of the jobs for work on the Puma II Project.
Economic impacts from a change in operation or activity location (such as the impact of outsourcing jobs to an overseas location) No identified impacts on this front. Depending on the size of the operation and the municipality’s economic dependence, there may be substantial impacts. However, there may be changes after a detailed study considering the economic impact and mitigation measures.
Economic impacts from the use of products and services (such as economic growth patterns and the use of a particular product or service) Does not apply Does not apply
Type of initiative 2022 2021 2020 Observations
No. of operations % operations No. of operations % operations No. of operations % operations
i. Social impact assessments, including gender impact assessments, based on participatory processes* 6 26% 6 25.00% 6 26% Monte Alegre, Puma, Otacílio Costa, Correia Pinto, Goiana and Angatuba units*
ii. Environmental impact assessments and continuous monitoring 23 100% 24 100.00% 23 100.00% -
iii. Public dissemination of the findings of environmental and social impact assessments 22 95,65% 23 95.83% 22 95.65% All units except Pilar (Argentina)
iv. Local development programs based on the needs of the local communities* 9 39% 9 37.50% 6 26% Monte Alegre, Puma, Otacílio Costa, Correia Pinto, Lages, Paranaguá, Rio Negro, Goiana, and Angatuba units
v. Stakeholder engagement plans based on mapping of these stakeholders* 11 48% 11 45.83% 11 48% Monte Alegre, Puma, Otacílio Costa, Correia Pinto, Goiana, Angatuba*, Piracicaba, Rio Negro, Manaus, Jundiaí Tijuco Preto and Jundiaí Distrito Industrial Units
vi. Committees and processes for extensive consultations with the local community including vulnerable groups* 7 30% 6 25.00% 6 26% Monte Alegre, Puma, Otacílio Costa, Correia Pinto, Goiana and Angatuba Units
vii. Work councils, occupational health and safety committees and other worker representation bodies to
deal with impacts
23 100% 24 100.00% 23 100.00% -
"viii. Processes for formal complaints by local communities 23 100% " 24 100.00% 23 100.00%

The Company works to prevent or reduce the negative impacts of its forestry and industrial operations, such as dust, unsafe driver behavior, poor road conditions, odors, and factory noise, among others.

The positive impacts of Klabin's actions are amplified through the creation of jobs, support for municipalities in public management programs, and the implementation of social projects, among other initiatives. The Company has social programs in its region of influence in the fields of planning, education, and family farming. Thus, in addition to the IPS (a tool used worldwide, tailored to the reality of each region, taking into account three dimensions: basic human needs, foundations of well-being, and opportunities), which helps measure the value of each of these initiatives for communities, the Community Acceptance Survey also helps to assess the results of this work.

The survey is conducted annually and its indicator corresponds to the average of eight dimensions: perception of impacts, economic development, environmental preservation, job creation, commitment, image, social stimulation, and business promotion. In the 2022 community acceptance survey, Klabin achieved an average approval rating of 83.6% in the municipalities where it operates, surpassing the 2030 Agenda (KSDG) target of 80% in four out of the six territories surveyed. 

The Company's challenge is to maintain the level of the approval rate already reached, analyzing the responses from each of the territories consulted.