Products and partnerships with the value chain and circularity

Products and patterns of production and consumption that are essential for the sustainable development of society, as well as and lifestyles that value harmony with nature and its resources.

KODS 2030
 

10 benchmarking cases of circular economy in partnership with stakeholders 

 

Number of circular economy cases in partnership with stakeholders

2021 2022 2023 (Preview) 2030 Goal
1 2 3 10
 
 
  1. In the Bags segment, the Ecomix bag for cement and mortar was developed in partnership with Votorantim Cimentos. The product is 100% dispersible paper which is integrated into the concrete batching process, thus avoiding the generation of packaging waste. The Ecomix Bag continues to expand in Klabin's portfolio, serving both the domestic and foreign markets due to the environmental benefits it offers and is in line with the demand for a low-carbon circular economy.
  2. Recycling of Long Life Packaging (ELV), which was developed with Tetra Pak with the aim of increasing the installed recycling capacity of the material in Brazil. Recycled fiber, which is of high quality for the manufacture of recycled packaging, is used in the production of recycled paper. Polyal (polyethylene and aluminum) supplies manufacturers of products made from the same material.
  3. Packaging recycling initiative will take place in partnership with M. Dias Branco. The scraps, both pre- and post-consumer, generated by M. Dias Branco's operations are collected and returned to the Goiana/PE unit to be used to manufacture new packaging that will be returned to M. Dias Branco and/or other customers.

 

Klabin's approach to promoting the Circular Economy 

Beyond the partnerships developed with external partners, the development of the Circular Economy at Klabin is transversal, from the way we operate, the management of by-products to our production process and how we deal with products at the end of their life cycle. Klabin's approach has focused on developing forest-based solutions and materials and alternatives for replacing non-renewable products. 

In the management of production process waste, Klabin has a public target of zero industrial waste sent to landfill by 2030. This commitment has been implemented through a systemic approach between Klabin, suppliers and companies in other value chains. In addition, Klabin has an approach to prepare the supply chain to develop innovative solutions and technologies to reach the zero landfill target. Some examples of the company's circularity approach can be seen in the following cases:

  • Sludge drying at the PUMA unit: responsible for drying the biological and tertiary sludge generated at the Wastewater Treatment Plants of the Monte Alegre and PUMA units, with a capacity of 17,000 tons/month. The dried sludge can be used as renewable fuel for the Power Boilers.
  • SOP plant at the PUMA unit: potassium is one of the main ingredients in fertilizer formulation. The SOP plant will enable the production of potassium sulfate from the treatment of ash generated in the Recovery Boiler. It is expected to produce 22 tons of potassium sulfate per day. 
  • Sulfuric acid plant: this is the first plant in the continent to be installed in a pulp and paper mill. At the Puma Unit, production will be 150 tons of concentrated acid per day and will also make Klabin self-sufficient in this raw material. The acid is produced by using the waste gases from the wood cooking process, which contain sulfur, through renewable energy from the combustion of biomass and black liquor.
  • Waste Center in Paraná State: Industrial waste such as sludge, ash and biomass is sent to the Waste Center for the production of agricultural raw materials (eco soil). Part of the product produced is donated to food producers who participate in Klabin's Matas Sociais program. Some of the food produced is purchased by Klabin for consumption in the restaurants at the operating units and to feed the animals at the Klabin Ecological Park (PEK).

Klabin's commitment to the circular economy is based on:

  1. Eliminating pollution and waste;
  2. promoting the circularity of products and materials;
  3. regenerating systems.

 

Undertaking goals linked to the topic by executives

 

  2022 2021 2020
Managers 31% 39% 225
Directors 5% 16% 17%

Percentage of products covered by Life Cycle Assessments (LCAs)

  Unit 2022 2021 2020
Full LCAs % 84 54 57
Simplified LCAs % - 24 7
Other externally recognized tools %      
Total % 84 78 64


Percentage of products covered by LCAs, by business

  Unit 2022 2021 2020
Paper business unit % 100 91 67
Pulp business unit % 100 100 100
Packaging business unit % 34 24 0
Recycled business unit % 67 65 0
Bags business unit % 83 85 86

 

In line with its strategy to expand the use of Life Cycle Assessment (LCA) studies for its products, Klabin has achieved 100% coverage of its pulp and paper product portfolio with the methodology, and is now progressively expanding to other portfolios.

The studies conducted continue to contribute to the development of a more sustainable portfolio, fostering actions to mitigate environmental impacts and supporting similar initiatives led by customers.

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Reducing the environmental impact of packaging throughout its life cycle
 

In addition to new investments in emissions reduction, a more renewable energy matrix, such as that observed in 2022, reflects a lower amount of CO2eq emitted per ton of product, which in 2022 was 148 kg of CO2eq, resulting in a 68% cumulative reduction since the initial measurement reported in 2004.

As manufacturers of renewable-based products, Klabin advocates for the substitution of fossil-based packaging with biodegradable alternatives made from wood pulp fibers. Your products are custom-made to meet the needs of customers, utilizing high-tech and complex combinations of virgin and recycled fibers, encouraging the efficient and maximized use of natural resources. The adoption of renewable, recyclable and biodegradable materials offers the consumer the best and most sustainable options for consumption with the lowest impact. Klabin's bioproducts are essential for the development of a low-carbon circular economy, where society's ever-evolving needs are addressed in harmony with planetary challenges and boundaries.


Benefits of resource efficiency in the use of products for your customers and consumers

An increasingly efficient utilization of natural resources remains a top priority in Klabin's operations, as it progresses toward a more renewable energy matrix.

- In 2022, Klabin's energy matrix reached 90.9% renewable origin, resulting in reduced CO2 footprints for products.

- In terms of water usage, Klabin is continuously striving to reduce specific consumption, achieving a remarkable reduction of 49.2% in cubic meters of water used to produce 1 ton of product, compared to the original base of 45.7 m3/ton measured in 2004 (in 2022, an average of 23.22 m3/ton was used).

- The same behavior is perceived in the amount of CO2 equivalent emitted per ton of product, based on the GHG Protocol methodology, which recorded 68% reduction in the period from 2004 to 2022 (in 2022 an average of 148 kg of CO2 equivalent were emitted per ton of product manufactured by Klabin).

 

Product Benefits

    Generated benefits to clients and end-users
PRODUCT BUSINESS Responsible sourcing (FSC certified) Reciclability (rate above 60%) Durability
Celulose de fibra longa - PineCel™ PULP x   x
Celulose de fibra curta - LyptusCel™ PULP x   x
Celulose - PineFluff™ PULP x    
KlaFold® COATED BOARD x   x
KlaFold FZ® COATED BOARD x   x
Klafold GB®
(Grease Barrier)
COATED BOARD x   x
KLAMULTI® COATED BOARD x    
KlaLight® COATED BOARD x   x
KlaLiquid® COATED BOARD x    
KlaCup Natural Kraft® COATED BOARD x    
Klaliner® CONTAINERBOARD x x x
Klaliner White® CONTAINERBOARD x x x
Eukaliner® CONTAINERBOARD x x  
Klaflute® CONTAINERBOARD x x  
Sack Kraft CONTAINERBOARD x x x
KLAFLAT® CONTAINERBOARD x x x
Klasack® CONTAINERBOARD x x x
SHELFLIFE INDUSTRIAL BAGS x x  
CONCEPT INDUSTRIAL BAGS x x  
LINHA SHIELD. INDUSTRIAL BAGS x x x
HARD INDUSTRIAL BAGS x x x
Innovative CORRUGATED BOXES x x  
Concept CORRUGATED BOXES x x  
HARD CORRUGATED BOXES x x x
COLD CORRUGATED BOXES x x x
FRESH CORRUGATED BOXES x x x
UNIQUE CORRUGATED BOXES x x  
ON SITE CORRUGATED BOXES x x  
TOTAL 28      
PRODUCTS AND BENEFITS OFFERED TO CONSUMERS 28      
% 100%      

 

Environmental criteria considered in the development of new products

Criteria  Comment

Choice of raw materials or components with low environmental footprint

Klabin researches new technologies linked to its forest's possibilities such as new uses of wood components (celluloses, hemicelluloses, lignin or extracts). It has also invested both in the biorefinery (biofuels) line and in the development of products based on lignin, wood hemicelluloses and in the application of the cellulose fibers. 

In addition, there is a special line of Recycled Papers produced from pre and post-consumer waste and on modern machines. The most recent data, in joint work with the packaging sector coalition, 80% of packaging chips and cardboard were recovered (Pöyry, 2022), an important result for reverse logistics. A recent groundbreaking product is the Eukaliner (attached), which is a 100% eucalyptus-based paper. Due to Klabin's high yields for eucalyptus productivity, the need of land-use for plantations is ten times smaller when compared to other regular kraft liners. Same volume using less land. 

Direct operations, production & manufacturing Klabin constantly develops products with a lower carbon footprint, increasing the use of renewable sources in the energy matrix, and generating energy from renewable sources such as biomass. In the last 18 years, we have reduced the specific CO2eq / t product emission by 68%. We also seek to adopt methodologies that help map and communicate the carbon footprint of Klabin's products and invested more than BRL 134 thousand in studies in 2022. Besides that, we also have a series of efforts and studies related to our water footprint and carbon footprint of bags, cellulose, eukaliner, and the dispersible bag. The Solid Waste Processing Center, in Ortigueira (Paraná state), is responsible for processing the industrial waste from the Ortigueira and Monte Alegre units, preventing more than 70% of the waste generated from being sent to landfills. Part of it is reused as a byproduct in several applications. The other 29,3% is directed to be recycled and reused in other waste disposal companies  Another example is the EcoLayer bag, developed with a double layer of resin. This solution was aimed at the construction and fertilizer sectors, providing a recyclable condition for the bag, eliminating plastic while preserving the quality and shelf life of the packaged products. EcoLayer managed the 3rd position in the Eurosack Grand Prix in 2023.
Distribution, storage and transportation Klabin works constantly alongside its clients in order to improve the mechanical performance (physical protection) of its packaging during the processes of packaging, storage, handling and transportation. The main goal is to better protect products and avoid waste once the product arrives at the final destination. Projects of remodeling packaging are natural in the company's operations and we have produced benchmarking cases on that matter. One example is the EcoLayer bag, developed with a double layer of resin. This solution was aimed at the construction and fertilizer sectors, providing a recyclable condition for the bag, eliminating plastic while preserving the quality and shelf life of the packaged products. EcoLayer managed the 3rd position in the Eurosack Grand Prix in 2023.   Another example is the Eukaliner®  a recent development made to reduce paper basis weight by more than 10% while keeping the same final packaging structure (strength). This provides a more sustainable packaging while using fewer natural resources and optimized logistics in terms of volume and weight.
Use phase - operation and servicing/ maintenance Klabin works constantly alongside its clients in order to improve the mechanical performance (physical protection) of its packaging during packaging processes, storage, handling and transportation. The main goal is to better protect products and avoid waste once the product arrives at its final destination. Projects of remodeling packaging are natural in the company's operations, and we have produced benchmarking cases on that matter. One example is the Eukaliner® a recent development made to reduce paper basis weight by more than 10% while keeping the same final packaging structure (strength). This provides a more sustainable packaging while using fewer natural resources and optimized logistics in terms of volume and weight.
End of life management
At the end of the life cycle, Klabin's bio-based products can be safely reintegrated into the ecosystem without impact on the environment, restoring part of the energy, water and nutrients once extracted from the soil in the production of pine and eucalyptus forests. Klabin is the first Brazilian company in the pulp and paper industry to have the Belgian OK Compost certification on its cement sacks, which ensures that the paper bag decomposes completely in up to 12 weeks without risk of environmental contamination. Another example is the hydrodispersible cement packaging bags, which is 100% composed of dispersible paper, allowing it to be integrated into the process as the concrete is prepared, thus reducing the amount of waste that goes in the landfill.

 

 

% recycled fiber used in relation to the total produced

2022 2021 2020
12% 14% 8%

 


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Evolution of the results in the use of recycled materials and recovered products

Material 2022 2021 2020
Non-renewable source materials  7% increase 20% increase 14% reduction
Lime 29% increase 69% increase 24% reduction
Sodium sulfate 1% reduction 143% increase 65% reduction
Caustic soda 3% reduction 8% increase 10% reduction
Pulp 45% increase 33% reduction 26% increase

 

Wood represents 95% of the main raw materials used in Klabin's production process. All our final products (paper and pulp) have FSC® (FSC-C022516), from the Forest Stewardship Council®, and Cerflor (recognized by PEFC) certifications. This means that the raw materials used undergo rigorous verification of compliance with forest management and chain-of-custody certification standards to ensure the reliability of the supply chain.

The company has four recycled paper production units, three located in the Southeast and one located in the Northeast of Brazil, which together have the largest processing capacity in the country, making the company the largest recycler in Brazil. Recycled fiber represents approximately 49% of the total weight of the products that use this material as raw material. In addition to chips from other plants, the Company has a partnership with waste collector cooperatives that supply this material.

Klabin is FSC® Chain of Custody certified in the aforementioned recycled paper plants. Public certifications (in Portuguese) can be consulted as proof. One hundred percent of the products use wood or paper fiber as raw material.


GRI-301-1 SASB-RT-CP-430a.1.

Materials used, broken down by weight and volume

Source Rolling Unit 2022 2021 2020 2019 2018
Renewable Wood for processing thousand tons 12,321.28 12.431,55 12.504,67 12.355,58 12.076,48
  Chips purchased on the market (recycled) thousand tons 277.75 366,11 314,45 335,06 217,00
  Purchased pulp (cellulose and CTMP) thousand tons  38.90 22,40 33,26 26,41 14,00
  Total thousand tons 12,637.93 12.820,06 12.852,38 12.717,05 12.307,48
Non-renewable Sulfuric acid thousand tons  38.46 40,69 42,09 42,00 36,33
  Caustic soda thousand tons  63.44  65,12 60,30 66,68 64,77
  Sodium sulfate thousand tons 25.89 26,22 10,79 30,97 19,35
  Aluminum sulfate thousand tons  66.74  59,19 52,20 51,59 43,10
  Lime thousand tons  60.81 47,11 27,94 36,96 93,61
  Kaolin thousand tons 21.86 20,73 21,70 22,62 18,76
  Total thousand tons 277.20 259,05 215,02 250,80 275,92

There was an increase in pulp purchases in 2022 compared to 2021, due to the increased demand resulting from the beginning of paperboard production in Angatuba.

Sulfuric acid, on the other hand, did not show great variation in consumption when compared to 2021. It is noteworthy that in 2022, own production of this input began at the Puma Unit, yielding a total of 19,875 tons. To complement the total consumed, 18,586 tons were purchased, totaling a consumption of 38,461.47 tons in the year.

For aluminum sulfate, consumption in 2022 increased by 13% compared to 2021. The amount is justified by the increased volume of water treatment, due to the increased production in the year (MP27 operated at full capacity at the Puma Unit).

Quicklime consumption in 2022 was 29% higher compared to 2021, due to increased demand, resulting in increased market purchases of this input for replenishment.


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Percentage of recycled fiber used

  Unit 2022 2021 2020 2019 2018
Total weight of wood fiber ton 3,542,158.26 3.254.085,93 3.179.573,88 3.125.067,42 3.000.792,96
Weight of recycled wood fiber ton 423,527.51 466.711,00 262.722,03 267.633,71 264.334,54
% of recycled fiber % 12% 14% 8% 9% 9%


GRI-301-2

SASB-RT-CP-430a.1

Percentage of renewable raw materials consumed

  Unit 2022 2021 2020 2019 2018
Total weight of raw materials thousand tons 12,915.12 13,079.12 13,067.40 12,967.85 12,583.40
Weight of renewable raw materials thousand tons 12,637.93 12,820.06 12,852.38 12,717.05 12,307.48
% of renewable raw materials % 98% 98% 98% 98% 98%
% of renewable and recyclable raw materials % 98% 98% 98% 98% 98%


SASB-RT-CP-410a.2

Revenue from products that are reusable, recyclable or biodegradable

Unit 2022 2021 2020
BRL 20,033,000,000.00 16,481,000,000.00 11,949,000,000.00


GRI-301-4

Percentage of recycled materials or from sustainable sources

  2022 2021 2020
  % share in products sold Total weight
(in tons)
% recycled or certified material Goal for the year % share in products sold Total weight
(in tons)
% recycled or certified material Goal for the year % share in products sold Total weight
(in tons)
% recycled or certified material Goal for the year
Wood fiber/paper packaging 95% 12,321,277.00 80% 100% 95% 12,431,547.00 88% 75% 96% 12,504,674.00 87% 100%


GRI-301-3

Collection of recovered product and packaging data

The percentage of recycled or certified material in 2022 was 8% lower compared to 2021. This fact can be attributed to the Company's expansions, which led to an increase in the consumption of third-party wood. Additionally, strategies have been developed to optimize the forest asset and encourage producers in the region, ensuring a steady supply of certified product to the factories. Currently, Klabin encourages and assists these suppliers in obtaining certification to reduce the number of controlled areas, with the goal of continually improving processes. As for the percentage of participation in the products sold in 2022, the production remained stable compared to the previous year.

Percentage of recovered products and packaging for each product category

2022 2021 2020 2019 2018
29% 49% 31% 34% 22%


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Total aluminum purchased

The Company does not purchase aluminum for its processes.


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Recall

There was no recall operation, that is, no Klabin product presented safety risks or non-compliance with current regulations.

Klabin’s customers are one of the stakeholder groups that have most encouraged and challenged the Company towards a low carbon economy. This is reinforced by Klabin’s Stakeholder Engagement Policy, which establishes the Company must seek to meet the needs of its customers, considering their growing demands for gains in innovation and sustainability of its products. The topic Customers and products is increasingly linked to innovation and sustainability and is considered one of Klabin Goals for Sustainable Development (KODS).

Klabin carries out annual satisfaction or perception surveys specific to each of its businesses in order to identify strengths and opportunities for improvement in products, processes and operations. Quality, safety, qualification, technical support and sustainability indicators (including life cycle analysis) are part of the consultations. One highlight is the annual Pulp survey, answered by 100% of its customers who represent around 51% of the Klabin revenues and grants the Company an excellent rating (4.4 out of 5 total points).

100% of our products are free of materials hazardous to the environment and human health in their composition. Also, none of the raw materials includes minerals and/or other chemical substances sorced from conflict regions.

Klabin is the first Brazilian company in the pulp and paper sector to obtain the Belgian OK Compost certification for its cement bags, which guarantees that the paper completely decomposes in up to 12 weeks without risk of environmental contamination. In addition, our packaging is printed with water-based ink and structured with ecological glue that does not contaminate the soil, resulting in a highly biodegradable product that is reincorporated into the ecosystem in a few months.

Furthermore, it is worth mentioning that Klabin’s food packaging is certified by ISEGA, AIB and FSSC 22000, some of the most advanced standards used to guarantee the origin of paper for food packaging. These certifications clearly specify the prerequisites for the production of packaging that guarantee the health of the final consumer, determining standards such as cleaning and organization of the production area, in addition to water, air and pest controls necessary for this type of production.

 

ISO 9001 Certification

  Direct Employees  Indirect Employees Total of Employees (Directs + Indirects) Percentage of Revenue 
 Number of Employees at Units  15,573 9,704 25,277 77%
Total of Kablin's Employees 18,353 10,185 28,538
Percentual of Employees covered by certification 85% 95% 89%

Updated and verified on: 06/25/2022