Climate Change
Climate resilience
At Klabin, the management of the issue related to climate change is focused on building a climate resilient society. Since 2020, the Company has been following the recommendations of the Task Force on Climate-Related Financial Disclosures (TCFD), not only disclosing the current and potential risks arising from ongoing climate change, but also incorporating into its strategy and financial planning the business opportunities thas present themselves in this scenario.
After identifying the potential risks that the Company faces based on different climate-related scenarios, a qualitative evaluation of the potential vulnerability and potential impact on the company is conducted to assign each risk a criticality rating. A multidisciplinary internal team is responsible for contributing to this risk assessment process, leveraging its broad experience in various areas such as business strategy, forestry research, climate change, and risk management.
Water scarcity caused by climate change, the regulatory changes such as carbon pricing and temperature increases have been considered as priority risks for the Company. Based on this identification, the potential financial impact of each of these risks is calculated using methodologies appropriate to each type of risk. The calculation assumptions are developed based on research and external studies, such as a study on carbon pricing projected in Brazil. Finally, the potential financial impact is calculated as a percentage of earnings before interest, taxes, depreciation and amortization (EBITDA), with the disclosure of the investments necessary for the resilience strategy of each identified risk. All data on the methodologies for calculating potential financial impact are disclosed on the ESG Dashboard.
acronym for greenhouse gases. These gases are those that absorb part of the sun’s rays and redistribute them in the form of radiation in the atmosphere, heating the planet in a phenomenon called the greenhouse effect. Carbon dioxide (CO2); methane (CH4); hydrofluorocarbons (HFCs) and perfluorocarbons (PFCs) used in aerosols and refrigerators are examples.
Glossárioan international body that monitors the global financial system and makes recommendations about it. It was established after the G20 summit in London, in April 2009, as a successor to the Financial Stability Forum.
GlossárioEven with its history of action in relation to the theme of climate change, the Company still faces challenges linked to a market that is not very mature for the implementation of the Task Force's recommendations, either due to the lack of standardized data and specific methodologies for adherence to the guidelines, or due to the expectation of financial players in the sector for a more in-depth analysis of the information.
The hiring of a specialized consulting firm to support the company in implementing the TCFD recommendations was essential for Klabin to enhance the dissemination of the Task Force's framework, paving the way to become a benchmark in the Brazilian industrial market on the topic.
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Public climate commitments
SBTi
The initiative establishes methodologies to help companies design emission reduction targets based on climate science and sustainable economic development.
NetZero Impact Movement
The result of a partnership between Klabin and the Brazil Network of the UN Global Compact, which aims to invite companies to evaluate the adoption of GHG reduction targets based on science and encourage society to engage in the sustainability cause. Learn more at: https://www.impactonetzero.com
Business Ambition for 1.5oC
UN campaign that gathers about 200 companies around the world in the effort to restrict the temperature increase on the planet to a maximum of 1.5oC until 2030. Klabin is among the 11 participants of the initiative in Brazil.
We Mean Business
Since 2021, the Company has been participating in a global coalition that gathers the business sector around controlling the effects of global warming. The initiative, which includes companies from all over the world, proposes the establishment of a low-carbon economy.
The Marginal Abatement Cost Curve (MACC) tool practically identifies the technological being studied by Klabin, their costs, and their potential for reducing GHG emissions.
Klabin Ecological Park, in Paraná. Photo: Zig Koch.
Participation in discussions of global reach
Throughout its history, Klabin has continually reinforced its commitment to combat climate change, actively engaging in discussions on the topic since Brazil hosted Eco-92. In 2022, the Company participated in the 27th United Nations Conference on Climate Change (COP27) in Egypt. For the second year in a row, it participated in the Business Leaders Group, which is responsible for presenting the corporate stance on climate ambition and discussing solutions that will drive sustainable economic growth to reach the objectives of the Paris Agreement.
Engaged in the agenda of implementing a regulated international carbon market, Klabin understands that COP27 did not achieve any significant advances on the issue and hopes that this will be one of the main topics at COP28, with Brazil's participation.
