Employment and Income Generation
When we grew up together,
we go much further
Following the sustainability principles is much more than the initiatives we have implemented to minimize the negative impacts of our operations. It also means improving the positive impacts through the local communities’ economic and social development, the generation and distribution of the economic values generated by our businesses in the region. This value generation and positive impacts can take various forms: job creation, payment of taxes, investments in infrastructure and social projects, incentives for family agriculture, priority to local suppliers, investments in supplier qualification and local workforce training, among others. [GRI 103-1, 103-2, 103-3: Economic Performance and Indirect Economic Impacts, GRI 203-2]
We sum to develop
When we promote or encourage a project or a new initiative, we are guided by the goal of helping to strengthen social capital. Whenever possible, we seek to expand the scale of investments through association with public policies focused on social transformation. By working proactively or meeting demands, our actions are aligned with our strategic sustainability objectives, which prioritize the Health, Education and Traditional Culture, Income Generation and Environment guidelines.
Investments in infrastructure include road works for both improving logistics of our forest operations (road construction or maintenance in areas from Veracel’s and rural farmers in the Produtor Florestal program) and meeting community’s demands (improvements, asphalt recoveries and general maintenance of public roads in the area where the company has operations). [GRI 201-1, 203-1]
• We paid R$105.814 million in total taxes, of which R$ 16.456 million were paid to municipalities where we have operations.
• We allocated more than R$ 1 million to donations towards 15 cities and 13 communities.
• We invested almost R$ 29 million in infrastructure projects (roads to own projects and to meet third parties’ demands)
• We allocated more than R$ 5 million to social investment projects
Resources allocated to donations (values in R$) [GRI 201-1]
|1,595,871.90 (of which 278 demands received, 168 approved, 17 *cities + 23 *communities served)||2,062,243.19 (of which 297 demands received, 163 approved, 16 cities + 25 communities served)||R$ 1,019,430.79 (of which 286 demands received,157 approved, 15 cities + 13 communities served)|
Payable taxes in 2017 in the 11 municipalities where Veracel has operation and Salvador, capital of Bahia (values in R$) [GRI 201-1]
|Porto Seguro (BA)||519,260|
|Salto Divisa (MG)||2,628|
|Stª M. Salto (BA)||879|
Investments in infrastructure [GRI-203-1 ]
|Total roads (km)||Investiments (M R$)||Total roads (km)||Investiments (M R$)||Total roads (km)||Investiments (M R$)|
|Roads built for Veracel’s projects||88,4||15.119||167||26.892||348||38.267|
|Roads built or maintained for third parties’ demand||217,0||13.222||694||12.236||655||7.502|
The full table of economic by value generated and distributed can be found in the GRI Table of Content.
2017, a learning year for operations
Despite the fact we almost reached the cellulose production target, 2017 was a tough year with significant losses in critical areas, such as Digester, Brown Purification and Drying. We closed the year with the production of 1,101,634 tons of air dried cellulose (tsa), representing 99.6 percent of the target we had established (1,105,000 tsa). Individual maintenance-related problems were the main responsible for the losses which compromised the final outcome. However, the performance produced valuable lessons for 2018. After the General Stop in October, Veracel initiated a series of integrated Maintenance and Operation activities in partnership with Andritz, a partner for maintenance services, in order to increase process efficiency, by strengthening the joint management of the teams responsible for them. The intention is improving the synergy among the areas focused on continuous improvement to surpass the 1,130,000 tsa target established for 2018, a year with no General Stop, and 361 days of expected production.
When seeds turn into fruits
Initiatives to support family farming projects and the multiple forest usage contribute to the employment and income generation for the communities in the region where Veracel has operations. There are projects resulting from agreements and joint public-private institutional work to broaden the scope and enhance the social benefits in the territory, in the fields of family agriculture and beekeeping support.
It is a work aimed to produce food for the community itself, with opportunity to market the surplus production. The initiative is conducted through the land granting based on an agreement with the Bahia Forest Forum to share the buffer areas in eucalyptus cultivation near the community. We provide inputs for planting, as well as agricultural training workshops and other sessions related to associativism and cooperativism. The project began in 2009 in the Ponto Central community (Santa Cruz Cabrália). In 2014, it was extended to the Mundo Novo district (Eunápolis) and to Itagimirim in 2015.
Roça do Povo project
Designed in the União Baiana community, in Itagimirim, six years ago, the project has benefited 82 families. The program flagship is the manioc, also known as ‘macaxeira’ or ‘aipim’, which is the main product grown in the region. At the beginning of the project, farmers received technical assistance, training and institutional support to professionalize the business. Currently, the manioc planting and sale is the main source of local income.
A partnership with the Luiz de Queiroz Agriculture College of the University of São Paulo (Esalq/USP) enables the planning of land reform settlements and a series of actions with these communities. The program’s goal is the qualification and training of farmers, promoting the production with land conservation. The project includes 900 families, totaling about 4,500 people, and has represented the Veracel’s largest social investment in 2017, with transfer of more than R$ 3 million.
Veracel and Fibria has worked together in this initiative since 2018, improving its management, adding value to the program and strengthening the actions required for the smooth progress of the stages to create a great and emblematic settlement in the territory.
Pact for the Discovery Coast development
In 2017, two cassava flour and by-products processing units were ready to associations linked to family farmers settled in Ponto Maneca and Guaratinga. The association members can produce flour and other cassava by-products in the units for commercialization, meeting the Sanitary Surveillance Agency (Anvisa) requirements to obtain a marketing license, since the processing units will be equipped with packing machines. Together with the production units, each community association has received furniture, equipments and a utility vehicle for outflow of production.
The results are part of the pact between Veracel and the Government of the State of Bahia, whereby we allocated 25 percent of ICMS payable credits annually, from 2011 to 2016, their release, to the implementation of socio-productive inclusion projects in the region, mainly focused on family agriculture. The partnership included the municipalities where the company has operations and several communities based on public notices every year. The pact was not renewed due to a decision of the Government of the State of Bahia.
In 2015, a partnership including Veracel, the Executive Committee of the Cocoa Plantation Plan (Ceplac) and beekeepers associations from Eunápolis, Guaratinga, Itabela, Itagimirim and Belmonte initiated the Abelha Rainha project. The initiative enables the high performance queen bee reproduction in laboratory and distribution for beekeepers. The work seeks to expand honey production throughout the region, which has been already stimulated a collaboration agreement among Veracel and seven beekeepers associations. Read See about the project on the Veracel website or see the Ceplac website.
In 2017, the project benefited directly 155 beekeepers who together
produced 98,800 kilos of honey and generated an income of more than R$ 1.1 million.
In July 2017, the Abela Rainha project was highlighted in a subject in the Globo Rural program
Produtor Florestal project
The Produtor Florestal program (PPF, in Portuguese acronym) has emerged as a way to complement the demand for raw material consumed by the cellulose production. About 20 percent of all the wood supplied to our plant are acquired from 96 producers that are part of the PPF. The program was launched in 2003 by Veracel, and the Eucalyptus Producers Association of the Extreme South of Bahia (Aspex) has been responsible for the PPF producers’ certification in Forest Management under the Cerflor and FSC® – Forest Stewardship Council® (FSC-C107658 / FSC-C11049 / FS-C-C111054) standards and its principles since 2014. The certifications ensure the compliance with all environmental and social requirements for eucalyptus production.
In 2017, the PPF intensified the collection of new areas, seeking to integrate rural producers in the region into the eucalyptus wood production process. Currently, the complementary eucalyptus wood supply is guaranteed by 120 contracts signed with forest producers, corresponding to an area of 20,585 hectares of eucalyptus plantation, of which 16,589 hectares are certified areas.
In addition, the PPF has reduced the need for land acquisition and is a way to strengthen the local economy by generating income and employment in the region, as well as enabling the crop diversification in the farms.
Giving preference to the neighbor!
Giving preference to local suppliers (established in the area where the company has operations or in the state of Bahia) is also a way to contribute to the value generation. This guideline directs the practice of contracting services and purchasing products at Veracel. Therefore, local partners have priority as long as they offer competitive conditions and quality. [GRI 102-9, 204-1]
Total purchases from suppliers in the state of Bahia (in R$ million)
|Goods: R$ 294.1, which represents 65% of the total|
Services: R$ 234,4, which represents 74% of the total
|Goods: R$ 318.7, which represents 66% of the total|
Services: R$ 208.5, which represents 60% of the total
|Goods: R$ 376.1, which represents 74% of the total|
Services: R$ 285,6, which represents 85% of the total
Sustainability in the production chain
We expect our suppliers to adopt behaviors and practices that respect people and environment and contribute to the environmental preservation and reduction of their potential footprint on the areas where they operate. Based on an Integrated Monitoring platform consolidated in 2016, we review these and other sustainability-related aspects with our key suppliers through audits. The results provide inputs for decision making related to contract renewals, awards and deviations dealing. [GRI 102-9]
Audits of Key Suppliers*
|Impactos potenciais||Fornecedores auditados||Resultados das auditorias|
|Meio ambiente: alterações de qualidade do solo, da água e do ar e danos à flora e à fauna|
[308-2]Direitos humanos: trabalho análogo ao escravo, discriminação, direito de livre associação
[GRI 414-2]Práticas trabalhistas: descumprimento da legislação trabalhista, previdenciária, de saúde e segurança do trabalhador
|100% dos fornecedores englobados no escopo de certificação, totalizando 51 empresas que atuam nas áreas florestal, industrial e expedição de celulose.|
Deste total, 25 empresas também são auditadas no escopo específico de Saúde e Segurança Ocupacional, cujos critérios de enquadramento levam em consideração a exposição do trabalhador aos riscos. Neste escopo, 100% das auditorias planejadas foram executadas.
|A média geral de atendimento para os temas auditados nas 51 empresas foi 79,85%. As não conformidades identificadas foram encaminhadas para tratamento, com ações sob coordenação dos gestores responsáveis pelos contratos.|
A organização não encerrou até o presente momento o relacionamento com fornecedores em função destes temas.
*Fornecedores críticos são aqueles que se enquadram em um ou mais dos seguintes parâmetros: oferecem serviços de valores elevados (acima de R$ 800 mil), possuem colaboradores lotados nas dependências da Veracel, fornecem assistência técnica especializada ou oferecem produtos ou serviços que não tenham caráter esporádico.
Relationship with traditional communities
We maintain a close and constant dialogue with traditional communities in the southern Bahia, such as fishing associations and indigenous communities. This practice is part of the management of potential and real footprint, since we occupy a territory with such important geographical and historical features.
We maintain an active dialogue with 17 artisanal fishermen associations and colonies located between the municipalities of Belmonte and Nova Viçosa, on the route of the barges that transport cellulose from Belmonte Maritime Terminal to Portocel, in Espírito Santo. In 2017, an ice factory began to be built in the community of Santo Antônio. The ice produced in the unit will be used to properly store seafood for commercialization. The work is expected to be completed in 2018, when training courses for the community will also be provided.
In response to a community demand, a remodeling and expansion project for the Seafood Processing Unit was also initiated in Belmonte. The conclusion is expected for 2018. In addition to these improvements, the project will provide training for association members, including residents who largely live off the fishing and shellfish commercialization.
We also support environmental education activities in all the communities that make up the circuit, in compliance with the operation license requirements for the Belmonte Marine Terminal.
Mais químicos na produção
O período de seca registrado na região em 2015 e no primeiro semestre de 2016 alterou a condição ambiental e de produtividade de nossas florestas de eucalipto. Como forma de proteção com a falta de água, as árvores aumentam o teor de extrativos, o que gera, para o processo industrial, a necessidade de aumentar o consumo de produtos químicos a fim de suprir o aumento da carga alcalina no digestor. Essa medida sobrecarrega os sistemas, em especial a área de caustificação, que produz o licor branco para o cozimento da celulose, gerando uma redução de produção no digestor.
Essa redução na capacidade de produção do digestor fez com que revisássemos a meta de 2017 para 1.105.000 tsa, a fim de evitar maior sobrecarga do processo com o aumento de consumo de produtos químicos. Paralelamente, estamos promovendo uma série de testes, desde novembro de 2016, com o objetivo de obter um produto químico (surfactante) capaz de dissolver os extrativos no interior da fibra da madeira e melhorar a condição do cozimento da mesma.
Atualmente, o suprimento complementar de madeira de eucalipto é garantido por 125 contratos assinados com produtores florestais, que correspondem a uma área de 21.425 hectares de plantio de eucalipto; destes, 16.147 hectares são de áreas certificadas. O PPF também reduziu a necessidade de aquisição de terras e é uma forma de fortalecer a economia local com a geração de renda e trabalho na região, além de possibilitar a diversificação de culturas nas propriedades (dados de março/2017).