Lecture done at AMERICANA TRADE FAIR (March, 2013) promoted by Québec Government.

2. AMERICANA, 2013
Pedro de Toledo Piza
Avocat de l’environement
Sustainability of Pulp and Paper Sector
Winnings and Challenges

3. 3
Environmental Concern
• Stockholm Conference – 1972.
• Earth Summit – 1992 (Rio de Janeiro)
• Millennium Summit for Social Development – 2000:
• World Summit for Sustainable Development – 2002.
• Rio + 20: United Nations Conference on Sustainable Development – 2012.
– Forum on Science, Technology and Innovation for Sustainable Development (2012).

4. 4
International Principles of Sustainability Adopted in Brazil
• Sustainable Development (under articles 170 and 225, Brazilian Federal Constitution)
• Prevention
• Polluter Pays x User Pays
– Internalization of environmental costs and charge
– Retribution for the economic use of a natural resource
• Coperation and Participation (under articles 170 and 225, Brazilian Federal Constitution)

5. 5
• Environmental Disasters
• Labels – International acknowledgment trying to guarantee quality
• FSC, CERFLOR, PEFC, Blue Engel, Eco Mark, EcoLabel, White Swan, ISO,
OSHAS...
• Brazil
– Labels (XX century) + environmental management:
• Environmental Control;
• Sustainable Management of Water Resources;
• Energy Cogeneration;
• Climate Change;
• Ecological Zonning Plans and Protection of Biodiversity;
• 100% of Planted Forests + Conservation of Native Forest;
• Social Demands (Indian, Landless Social Movement, NGO);
• Certification
Sustainability School. Learning in a reactive way...

6. 6
• Historical precedents
– Institution of hard emission standards;
– Environmental Zonning;
– Disciplinary penalties - command & control mechanisms
• Evolution
– A new era starts:
• Recycling and reuse;
• Reutilization and reduction;
• Renewable sources;
• Environmental Accountability;
• Preservation of Sensitive Areas.
• Global Tendences: Triple Bottom Line
– Interfaces:
• Economic;
• Environment;
• Social (spiritual, moral and ethics).
Economic
Environment
Corporative
Governance
Sustainability School. Learning in a proactive way...

7. 7
Myths against Pulp and Paper Sector
• Formation of GREEN DESERTS
• Land competition: “I do not eat eucalyptus”
• Air Pollutants
• Competition of subterranean water
• Hydrical pollution
• Rural depopulation and unemployment
• Monoculture – fauna and flora extinction

8. Sustainability

9. 9
Sustainability...
“Triple Bottom Line…”
What the hell now?
Corporate Ethics
Why should apply for that?
Commitment
What`s the reward? How
much cost?
Sustainabli...
WHAAAATTT?????
Partnership?
With Whom?

10. 10
Corporate Governance - a new point of view
Paternalisticphilanthropy Charity
The quest for sustainability goes beyond management and environmental
control.
It exceeds environmental standards of command and control
More than economic and financial results, annihilates the old "scorched-earth
policy" and inaugurates new "modus operandi". Management is routine ...
Sustainability is beyond...Sustainability is beyond...
• There’s a new paradigma for doing business based on equality between
environment, social and economics
• Prevail ethics, transparency, disclosure and envelopment with stakeholders
• Sustainability is an issue that affects all of us. So, it shall prevail

11. SUSTAINABILITY
Competitiveness
SOCIOECONOMIC
ISSUES
Environmental
perception
11
New Attitudes = new results!
Process
control
Eliminate
problems
Quality and
Environmental
Certifications
New concept
value & principle
Past vision:
Reactive attitude
Proactive approach:
Sustentainability

12. 12
Corporative Governance. The routine is over!!
• Business Consciousness Examination
– Self analisys and knowledge its own strenghts and weakness. Incorporate the
sustainability as a business strategy
• Cultural Change
– Incorporate triple bottom line;
– Understand the positive effects of its application.
• Motivation
– Stakeholders exigencies + opportunities;
– Drive forces: Communication and willingness to

13. 13
Corporative Governance
Economy
SocialEnvironment
Corporate
Governance
• Interpretation e holistic application equal and equidistant.

14. 14
Corporate Sustainability of Pulp and Paper... We’re doing
• Legal Issues:
– Federal;
– State;
– Township Administration.
• Ecological, Economic and Environmental Zonning Plans;
• Interaction Public Plans, Programs and Policies;
• Land Use:
–Regional population and communities;
– Forestry Fomentation/development.
• Forestry Planing Actions integrated with permanent employments.

15. 15
- “On line” monitoring of Impacts and Natural Resources Quality;
- Fauna and flora monitoring actions on ecological corridors;
- Programs of Environmental Education;
- Salvation and Rescue of Archeological heritage found on forestry base and
knowledge dissemination;
- 100% of planted forests. No pressure on native areas;
- Local communities;
- Ecological Inventory and Setting Priorities;
- partnerships and incentive with Universities and public administration
Corporate Sustainability of Pulp and Paper... We’re doing

16. More than 9.5 mi ton/year with environmental permits in last 3 years
16
Cliente Tipo Local Capacidade Ano
Industrial Rio Grande-RS
Pulp -1.600.000 ton/y
Paper - 500.000 ton/y
2006
Industrial Imperatriz-MA
Pulp -1.500.000 ton/y
Paper - 500.000 ton/y
2010
Industrial Palmeirais-PI
Pulp -1.500.000 ton/y
Paper - 500.000 ton/y
2011
Industrial Três Lagoas-MS Pulp - 1.750.000 ton/y 2011
Industrial/
Florestry
Lençóis Paulista-SP
Pulp - 1.000.000 ton/y
Planted area- 90.000 ha
2012
Industrial Peixe-TO Pulp - 2.000.000 ton/y 2012
Industrial Ortigueira-PR
Pulp -1.800.000 ton/y
Paper - 500.000 ton/y
2012
Recent Pulp and Paper Projects

17. 17
Cliente Tipo Local Capacidade Ano
Florestry Mato Grosso do Sul Planted area- 295.000 ha 2007
Florestry Rio Grande do Sul Planted area- 100.000 ha 2007
Florestry Rio Grande do Sul Planted area- 22.000 ha 2008
Florestry Rio Grande do Sul Planted area- 13.000 ha 2011
Infrastructure
São José do Norte-
RS
Barge Terminal - 1.750.000
ton/y
2009
Infrastructure Rio Grande-RS Dredging - 10.000.000 m³ 2009
Infrastructure Imperatriz-MA Railway- 33 km 2011
Infrastructure Imperatriz-MA Roadway - 11 km 2011
Recent Pulp and Paper Projects

18. 18
Market Pulp Projects on South America
Studies and Basic Eng Implementation Start
2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020
ELDORADO
New mill
1.500.00 t/y
MONTES DEL PLATA
Uruguay- New mill
1.300.000 t/y
SPC MARANHÃO
New Mill
1.500.000 t/y
CMPC GUAÍBA
New Line
1.300.000 t/y
KLABIN
New Mill
1.400.000t/y (Capac)
1.000.000t/y (Prod. Prev.)
LWARCEL ????
New Line
750.000 t/y
HORIZONTE 2 ????
New Line
1.600.000. t/y
ELDORADO 2 ????
New Line
1.500.000 t/y
VERACEL 2 ????
New Line
1.500.000 t/y
CENIBRA 2 ????
New Line
BRAXCEL ????
New Line
1.500.000 t/y

19. 19
• Corporate Environmental Inteligency Triple Bottom Line;
• Communities on Influence Area – Manpower qualification;
• Biodiesel production on BIOREFINARY;
• Climate Change
– Logistic Improvement – Hydro ways and Railways;
– Inventory and Neutralization of Energy Matrix;
– Green energy, green fuels and chemichals
• Land competition (environ, biomass, food, new products…)
• Extractives, lignin, hemicelluloses, lubricants, fertlizers…
Pulp and Paper Industry. Trends and Opportunities

20. 20
• Master Plan aiming new lines and growth prognostic;
• Water footprint
• Embedding sustainability variables – cascading effects;
• Favorable conditions to continued improvement;
• Mill and forestry bases seen as a social and environmental benefits;
• Look for new technologies and new products
• Innovation and Technology Research Centers
Pulp and Paper Industry. Trends and Opportunities

21. 21
ProductionProduction
• Posture:
– Environmentally healthy and feasible;
– Economically feasible and profitable;
– Socially Fair.
ConservationConservation
• Positive results in the balance sheet
• Appreciation of investors’ portfolio
• Environmental control, Social Responsability and Profit + SUSTAINABILITY
VALUE-ADDED TO INVESTORS’ PORTFOLIO
Stakeholders’ satisfaction
Positive Impacts of Corporate Sustainability of Pulp and Paper

22. EnvironmentalEnvironmental
conservationconservation
ProfitsProfits
Social SatisfactionSocial Satisfaction
EnvironmentEnvironment
gains andgains and
improvementimprovement
P & PP & P
ProductionProduction
Positive Impacts of Corporate Sustainability of Pulp and Paper

23. Presentation
23
ENGINEERING highlights our strong history and
track record in designing and implementing technical
solutions.
We are proud of our heritage and confident that we
as engineers can make a difference by originating,
designing, shaping, orchestrating and implementing
sustainable solutions.
THANK YOU!
Pedro de Toledo Piza
Phone: + 55 11 3472-6933
pedro.piza@poyry.com