Klabin

Sustainability Report

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Klabin

What does Klabin produce?: A Brazilian company recognized internationally, Klabin is active in various segments of the market connected with forest products, pulp, paper and paper products. The biggest paper producer and exporter in Brazil, it is the leader in all its markets: sales of logs, packaging paper and board, corrugated boxes and industrial sacks.
How is Klabin organized?: Klabin is organized into four business units – Forestry, Paper, Corrugated Packaging and Industrial Sacks. Klabin products are a part of consumers’ daily lives. The packaging paper and board and paper packaging give differentiation, protection and safety to foods, beverages, hygiene and cleaning products, electronics, cement, seeds, chemical products, oils and so on.
What are Klabin’s sales targets?: Klabin’s strategic targets are to create sustainable value for all its publics with whom it has dealings – shareholders, customers, employees, suppliers and communities – and to consolidate its leadership in the markets in which it operates, by means of long-term partnerships to produce results which drive development; To get these results, it invests in business growth availing itself of its differentials of innovation, quality, tradition, market leadership and corporate sustainability. The company strives to meet its customers’ needs and expectations and conquer new markets, with a focus on excellence in performance, profitability and development of products and services.
Does Klabin sell pulp?: No, the company just produces pulp for its own consumption.
Does Klabin produce newsprint?: No, Klabin was the first company to manufacture this grade of paper in the Country and the biggest national producer, but since 2003 it has concentrated on the production of packaging paper and paper-made packaging.
Is Klabin a multinational?: No, Klabin has been a 100% Brazilian company since its foundation in 1899, and is one of the few family-owned companies which are still under the same control.
What is the history of the company?: 1899 – Foundation of Klabin Irmãos e Cia by the Klabin and Lafer families – Company importing and selling office articles and typography. 1909 - Foundation of Companhia Fabricadora de Papel – Already ranked among the biggest paper producers in Brazil. 1934 - Foundation of Klabin do Paraná – The first integrated pulp and paper mill in the country, which, in 1947, started production of newsprint and packaging paper. 1970’s Leadership Consolidation – advancing firmly in the packaging segment, producing corrugated boxes, sacks and envelopes until it became the biggest integrated manufacturer of pulp, paper and paper products in Latin America. 2002 – The companies of the group become one: Klabin S.A. 2003 – Business and financial restructuring, focusing activities on packaging paper and paper-made packaging.
What are the end uses for Klabin’s products?: Klabin’s products are a part of consumers’ daily lives. The packaging paper and board and paper packaging bestow differentiation, protection and safety on foods, beverages, hygiene and cleaning products, electronics, cement, seeds, chemical products, oils and so on. Klabin is the only supplier in the Southern Hemisphere of liquid packaging board for long-life and aseptic cartons.
What is the company’s position in the market?: Klabin is Brazil’s biggest paper producer and exporter and leader of the packaging paper and board, corrugated box and industrial sack markets. It is also the largest paper recycler in the Country and sells timber in logs. It is recognized globally as one of the major representatives of Brazilian industry concerned with innovation and technological development for integrated production of timber, pulp, paper and paper packaging.
In which states is Klabin present?: Today, Klabin has 17 plants in Brazil spread around eight States and one in Argentina. The Brazilian States where Klabin has plants are: Minas Gerais, Rio de Janeiro, Bahia, Pernambuco, São Paulo, Santa Catarina, Rio Grande do Sul and Parana. As well as the plants mentioned above, Klabin has sales offices spread around the country.
What is its production capacity?: Paper production capacity is 2 million tons per year and gross revenue came to R$ 3.6 billion in 2009.
How many employees does Klabin have?: At the close of 2009, Klabin had 7,417 direct employees and 4,885 contract workers, totaling 12,302 people.
Does Klabin export? If so, what products?: Klabin is Brazil’s biggest paper exporter (exporting 40% of its production), responsible for 75% of overseas shipments. Products are exported to 60 countries on 5 continents.
Does Klabin have certifications?: Yes. The certifications obtained by Klabin bear witness to its commitment to run all its activities within the principles of Sustainable Development, in an economically viable, socially just and environmentally correct manner. The company has certifications for the work it performs in the forests (Forest Stewardship Council), quality of food packaging (ISEGA), environmental preservation (ISO 14001) and proper utilization of natural resources, concern with high quality standards of its products (ISO 9001:2000) and occupational health and safety (OHSAS 18001). The company was also the first in Brazil to be acknowledged by the international organization Rainforest Alliance as a “Trendsetting Company in Sustainable Development”.
Has the company made or is it making new investments in the construction/expansion of new plants?: Yes. In September 2008, Klabin inaugurated Project MA-1100, which raised capacity of the Monte Alegre mill in Telemaco Borba (PR) from 680 thousand tons/year to 1.1 million tons/year. The company invested around R$ 2.2 billion in the expansion. The Klabin MA-1100 project has made the Monte Alegre Plant, currently Brazil’s biggest paper mill, the tenth biggest paper mill worldwide and ranked Klabin as the sixth largest global manufacturer of virgin fiber cartonboard.
What awards has Klabin already won?: Klabin has already won a number of awards related to social responsibility, communication, technology, environment, sustainable development, sales design, product quality etc.
Does Klabin use native woodlands to manufacture its products?: No, Klabin uses its own planted forests certified by the most important certifying body in the world, the FSC - Forest Stewardship Council – to guarantee all its production of packaging paper and paper-made packaging. Moreover, the company preserves 40% of its forests in native woodlands which shelter an abundance of Brazilian fauna and flora.
What importance does sustainability have in Klabin’s businesses?: Klabin has always remained loyal to the commitments it has made since its founding in 1899: respect for nature, appreciation for people and concern with Sustainable Development. In the day-to-day, we behave in a socially just, economically viable and environmentally proper way, in the firm belief that we should create value for society as a whole through our growth process. These commitments were reasserted in 2005 with the approval of Klabin’s Sustainability Policy, in which the seven principles are laid out that apply to all activities connected with Klabin’s products, services and relationships with its partners: customers, employees, shareholders, communities and suppliers.
How is Research and Development handled at Klabin?: Klabin has made strides consolidating the activity of research and development, including forests, paper, cartonboard and converted products. It also has a partnership with STFI-Packforsk, a Swedish research center for the pulp, paper and packaging industry which is a world reference in innovation of products with high added value. Innovation is aimed at meeting the needs of the customers who are partners in the development of products, processes and materials which generate gains in productivity and quality. Work is also performed with the collaboration of equipment and raw material suppliers.

Environmental Projects

Does Klabin run projects/actions which favor the environment?: Yes, as a company committed to sustainable development, respect for the environment is part of all of Klabin’s actions. As examples of some of these actions, we can cite the environmental programs developed and sponsored by the company, international Forest Stewardship Council - FSC – certification for sustainable management of the forestry areas, paper recycling, and reduction in consumption of materials in the production process. Other important initiatives are innovation in the energy matrix, membership of the Chicago Climate Exchange – CCX, development of projects based on the Kyoto Protocol and the promotion of clean technologies.
Does the company recycle and make adequate disposal of waste? Does it have policies to manage environmental impacts?: Klabin is deeply committed to environmental responsibility and Sustainable Development. A specific directorship is in charge of issues concerning the Environment and Energy. Among other actions Klabin helps to preserve biodiversity through conservation projects for protected areas; it has a policy and specific processes of environmental conservation to act in protected or environmentally sensitive areas. The company has an explicit policy of non-utilization of materials and inputs originating from the illegal exploitation of natural resources (such as wood, non-wood forest products, animals etc.); it has processes available to map environmental risks systemically; periodically it holds internal campaigns to reduce consumption of water and energy as well as to stimulate conscientious consumption and recycling of materials. Klabin also supports campaigns and participates in educational projects in conjunction with non-governmental and environmental organizations.
Is there an estimate of the quantity of paper recycled?: As the Country’s biggest paper recycler, with an installed annual production capacity of 230 thousand tons of paper with 100% recycled fiber, Klabin has pledged to promote recycling throughout its production chain. The process signifies an important social contribution, providing work for thousands of curbside collectors throughout the Country. This objective is reaffirmed by its participation in Cempre (Corporate Commitment to Recycling), an association maintained by private companies from various sectors and dedicated to the promotion of recycling under the concept of integrated waste management. Cempre takes actions to make society aware of the importance of reduction, reuse and recycling, with the help of publications, technical surveys, seminars and data banks. Proof of this is the recent development of world-first technology to completely recycle long-life cartons. Thanks to a partnership between Klabin, Tetra Pak, Alcoa and TSL Ambiental, it is now feasible to recycle 100% of the aluminum, plastic and paper.
Does the company collaborate with any type of research connected with biodiversity?: Yes, the diversity and abundance of the forests at the Monte Alegre Plant, in Telemaco Borba (PR), are the permanent target of academic research by important Brazilian universities. Other initiatives are the Puma Project, the survey of amphibians, the Phytotherapy Program and the Ecological Park.
Does the company extract any kind of input from biodiversity to be used in its production process? If yes, what is the input, what is it used for and how is it managed to ensure equilibrium?: The raw material used by Klabin for paper and box making comes from planted forests, in other words Klabin harvests what it plants. Forest stewardship follows a mosaic concept, in which plantations of pine and eucalyptus are intermingled with areas of native woodlands, preserving biodiversity with the formation of natural corridors. The biodiversity found in the preserved native woodlands at the Monte Alegre Plant (PR) means that, thanks to a rational management system of the sustained yield of Non-Wood Forest Products (NWFP), the ingredients needed to supply the production of plant-based medicines are all available. This is the basis of the Phytotherapy Program, the main purpose of which is to raise the appreciation for non-wood products and, among other possibilities, generate social and ecological returns.
How does Klabin handle biodiversity in its forests?: Klabin has planted forests in the States of Parana, Santa Catarina and São Paulo. Its lands total 441 thousand hectares of which 191 thousand hectares (40% of the total area of forests) are maintained as Areas of Permanent Preservation and Legal Reserves. The remaining areas represent forests planted with pine and eucalyptus (212 thousand hectares) and spaces reserved for infrastructure (plant, roads, etc.). In Parana, the area of Klabin’s forests is the biggest green area in the South of Brazil, easily identifiable in satellite photos. Forest stewardship follows a mosaic concept, in which plantations of pine and eucalyptus are intermingled with areas of native woodlands, preserving the biodiversity. In just the forests of Parana, 659 species of mammals, birds, amphibians, reptiles and fish are found, representing 40% of the species of mammals already identified in the State. 15 of these species are on the list of animals considered to be endangered by IBAMA. In November 2005 two puma cubs were born in the forests planted with pines. To help perpetuate the biodiversity, the following practices are adopted: • Maintenance and recuperation of areas of permanent preservation. • Selective waste collection. • Monitoring of hydrographic basins. • Monitoring fauna and flora. • Environmental education for schools, neighboring communities and employees. • Surveillance of areas against hunting. • Monitoring for possible erosion and preparation of roads and lanes. • Maintenance of wild animal scientific breeding grounds. • Maintenance of the ecological park for purposes of environmental education and scientific research. • Program of environmental recuperation, which is part of various projects in the areas of permanent preservation such as the planting of native species.
What are the main contributions (economic/social/environmental) of the incentives system?: The goal of the Forestry Incentives Program is to establish forests in marginal and idle areas of rural properties, incorporating them into the production process, guaranteeing future savings for small and medium sized landowners and, as a result, their settlement on the land. These actions help Klabin to bring society into its chain of production which today stretches to 60 countries. There is also an advantage for the company since it can invest less of its funds in lands and more in its core business, which is industrial, making packaging paper and paper-made packaging. There are also clear environmental advantages since the planting of forests not only supplies firewood and wood needed for rural activities, but also preserves and protects the soil from erosion, prevents rivers from sedimentation and also regulates the flow of water and rain. This, therefore, is a win-win situation for both company and society.
How many farmers are involved in Klabin’s Forestry Incentives Program?: The partnership involves over 17 thousand small and medium sized farmers in the States of Parana and Santa Catarina and 94.4 thousand hectares of cultivated forests. Since the start of the program – in 1984, in Santa Catarina and 1987 in Parana – 160 million seedlings of pine and eucalyptus have been distributed.
Does Klabin use clean technologies?: Klabin complies with all the environmental norms in force in the Country and evolution in pulp and paper production has considerably reduced the impact of the process on the environment. New technologies permit: a cut back in the consumption of water and energy, use of more environmentally correct chemical products, reduction of odors and proper disposal of solid wastes used in the production process. Klabin’s energy matrix basically consists of clean, that is to say renewable, energy. The utilization of biomass – bark, woodchips, forest waste, leftovers from timber and pulp processes – means that only 18% of the energy comes from fossil fuels (BPF oil and natural gas). In coming years the regular use of fuel oil to generate steam in the paper mills will be eliminated. New biofuel boilers will be installed in Parana and Santa Catarina. The pressure and temperature levels of the new co-generation plant in Parana will be raised to 100 bar and 500ºC (compared with the current 46 bar and 430ºC). The goal is to improve the thermal/electric energy combination, reducing dependence on external electricity and placing Klabin in the vanguard of Brazilian producers.
Does Klabin have a project to recycle long-life cartons? How does it work?: Klabin is the biggest paper recycler in the Country with an annual production capacity of 230 thousand tons of recycled paper. Recently the company developed, in conjunction with Tetra Pak, TSL Ambiental and Alcoa, technology that is a worldwide first, enabling long-life cartons to be totally recycled. The companies inaugurated a new recycling plant in Piracicaba, in the interior of São Paulo. The process revolutionized the current model of recycling long-life cartons, which until then separated the paper but left the aluminum and plastic laminated together. The Plasma process presents an option in recycling since it allows the three components of the package to be returned to the production cycle as raw materials.

Social Responsability

How did the concept of social responsibility evolve at the company and has it influenced the way of thinking and doing business?: Throughout its 111 years, Klabin has sought always to act in an economically viable, environmentally correct and socially just manner, focusing its efforts on socioenvironmental initiatives in the communities around it. As of 2005, the company’s activities of Social Responsibility fell under the control of the Directorship of Communication and Social Responsibility. Since then, a line of action has been determined and a nationwide policy of Corporate Social Responsibility created, known as the Klabin Youth with a Future Program. In the eight states where it has operations, the company also supports local social initiatives in its 18 production plants. Currently, Klabin runs a number of socioenvironmental projects, namely: the Caiubi Program of Environmental Education, the Phytotherapy Program, the Quality of Life Program and the Legal Woods Program. The company sponsors an initiative of its employees, the Terra Viva Volunteer Association. To ensure proper understanding by all the parties involved in the company’s commitment to sustainable development in its projects, investments and undertakings, Klabin drew up its Sustainability Policy.
What does sustainability mean for Klabin?: Klabin has a historical commitment to sustainable development, a concept which it practices in all its activities. This philosophy has guaranteed the company recognition and national and international awards. Sustainability is the balance between environmental, economic and social pillars and Klabin is one of the pioneers in the Country to adopt and practice this concept.

Products

What does Klabin produce?: Klabin produces packaging paper (cartonboard and kraftliner) and paper-made packaging (corrugated boxes and industrial sacks).
What are the end uses for Klabin’s products?: Klabin’s products are part of consumers’ daily lives. Paper and board for packaging and paper-made packaging offer differentiation, protection and safety for food, beverages, hygiene and cleaning products, electronics, cement, seeds, chemical products, oils and other items.
What actions does Klabin take in the sector of industrial sacks? In which plants are industrial sacks produced?: With the support of advanced research in raw materials (paper) and state-of-the-art equipment, Klabin is able to offer its customers packaging solutions with superior technology, greater strength and more economy. Supplier of sacks of international quality, the company has developed products for the domestic market and for different regions of the world, such as Latin America, Africa and the United States. Industrial sacks are made at the plants in Lages (SC) and Pilar (Argentina).
Where are the forests located for planting trees?: Klabin’s forestry areas are located in Angatuba (SP), Telemaco Borba (PR) and 11 towns in the vicinity, and the Santa Catarina Plateau (SC).
Does Klabin export? If so, what products?: Klabin exports its products to 60 countries on 5 continents. It is the biggest Brazilian exporter of paper, responsible for 75% of the shipments to overseas markets.
How important is innovation for the packaging industry?: The package is responsible for the first impression of a product. It helps to sell the product. Innovation in corrugated packaging means doing away with the concept of transport packaging and creating solutions which accompany the product up to the point of sale, associating the corrugated box with the image needed for the product contained in it: conservation, organization at the point-of-sale, practicality in handling and transport, efficiency and cost reduction in the logistics chain, as well as adjustments to new consumer habits and lifestyles.
In general terms, how is the development process of a new box at Klabin?: The corrugated box is always customized. Depending on the product to be packaged we study all the technical requirements of the box, and for this reason we need to know the conditions of packaging, transport and storage, destinations, sales appeals, legislation on the box markings and the perceptions of the end consumer of our customer. This combination of factors, among others, defines the type of box, the paper of which it is made, the machines which will be involved in the manufacturing process and the printing requirements.
What projects of the company have contributed to produce more easily recycled boxes or with less (lighter) materials?: Klabin has consistently pursued maximum efficiency in the use of the available virgin or recycled fibers in the quality of the boxes it makes, managing also to increase the strength of these boxes. The idea is to package an increasingly bigger amount of product with a lower weight corrugated box. Klabin’s target is to produce more easily recyclable boxes, so it has introduced constant improvements in its converting processes, using more friendly additives and inputs, and has also invested in important technologies, such as the creation of moisture and steam barriers which remove the use of paraffin and other contaminating agents from the final product. Improvements in cleaning (mechanical separation of impurities) in the company’s recycling process have led to significant advances in Klabin’s recycling, producing paper of a better quality and appearance thus permitting it to be used in higher quality boxes.
Besides the technological aspect, what kind of initiative has the company undertaken to increase the percentage of recycled paper in boxes?: As well as actively participating in CEMPRE – Corporate Commitment to Recycling – Klabin is in constant pursuit of new ways to stimulate and increase recycling and the usage of recycled paper. Among these ways is a Brazilian project, which is worthy of special mention since it is the only one of its kind in the world to recycle composite packaging, such as long-life cartons. Klabin is part of a consortium with Tetra Pak, Alcoa and TSL Ambiental, that completely recycles the components of these cartons - paper, aluminum and polyethylene. The company also takes part in projects to promote recycling by encouraging: initiatives to form cooperatives; selective waste collection; projects of Environmental Education and to stimulate public awareness of the value of recycling (Caiubi Program of Environmental Education); diversification in the process of waste paper purchasing, to develop new smaller-sized participants in different regions; a clear policy, approved by the competent bodies, for disposal of industrial wastes, which sustains other recycling processes such as glass, plastic or metal. These initiatives help to fortify the sector of paper recycling, in which Brazil is a world benchmark with 79% of its corrugated packaging returned to the recycling process.

Human Resources

What should I do to work at Klabin?: Just go to Human resources and click on the link to send your curriculum.
Does Klabin have a trainee program?: Yes. Over 7,500 candidates participated in our last program and the 16 who were selected will possibly take up growing positions in the company.
Does Klabin work to manage ethics in its business dealings and in the company?: The company is deeply concerned with this issue and with divulging a culture and policy of ample transparency in all the communities where it is present. The objectives are transparency in business dealings, respect and understanding in relations with the market, internal and external publics and the promotion of a positive, healthy environment in its value chain. The company is also committed to respecting the evolution of ethical norms and conduct, in becoming a reference in the market and in acting in accordance with its Sustainability Policy. Since 1979, Klabin has been a public company and, since December 2002 has been rated Level 1 of Corporate Governance in Bovespa.
How does Klabin handle the management of people?: With ongoing training programs, the company enhances and encourages potentials and skills. In 2005 significant improvements were made to Klabin’s Program of Development, which is designed to enhance competencies and align managers with the Company’s strategy. As we believe in a harmonious relationship between professional and personal life, we started a quality-of-life program in some plants to encourage physical activities and give orientation on work-time gymnastics, nutrition and alternative therapies. During the year, we began Klabin’s Program of Excellence in Occupational Health and Safety, aimed at reducing the risk of accidents and at continually improving employees’ health conditions.
What is the policy of salaries and benefits like at Klabin?: In 2009, Klabin allocated R$15 million to the remuneration of its employees. Included in this salary system is the PPR (Program of Participation in Results), which offers an opportunity for every employee to receive additional remuneration. Highlights of the year were: Klabin’s Complementary Pension Plan (PACK), the pharmacy agreement, dental assistance and executive health check-up among others.
What is the policy of career development like at Klabin?: Since its introduction in 2004, Klabin’s Educational Process has sought to promote, in a balanced way and at all Company plants, activities concerning training, development and qualification. Klabin’s career development policy is based on three pillars: Education (Qualification, Training and Development) investment (management and climate in the workplace) and talent management (selection, retention, reallocation, trainee and apprentice programs). The PKD (Klabin’s Development Program) started in 2004, with the introduction of a model of leadership competencies which evolved to become a program to develop competencies in 2005-2006, and in a third stage a center to follow up on executives’ performance, which was equipped to analyze performance and potential, identify talents and deal with succession processes (2009). The analyses conducted enable the RH team, in conjunction with management, to identify potential, to recommend development programs and to orientate the movements of hired professionals.

Find out about Klabin's Sustainability Policy