Suppliers
Wood suppliers
The volume of third-party wood to supply the plants has been fundamental in meeting the first cycle of the Puma II Project. Therefore, maintaining solid partnerships with rural producers is an important support to sustaining Klabin's expansion trajectory.
These suppliers are either partners in initiatives such as the Plant with Klabin or are independent producers, subsidized by actions that aim to ensure the quality and traceability of the wood, such as the Madeira Controlada Program or incentives to obtain forestry certifications. In 2022, Klabin used 82% of certified wood (51% of its own wood and 31% of wood from third parties) and 18% of the wood purchased from third parties, with controlled origin, following the FSC® – Forest Stewardship Council® certification regulations (FSC - C007520, FSC - C022516 e C023492).
Due diligence
In addition to adhering to the principles of certification for its own areas (Forest Stewardship Council® (FSC®) Certification (FSC-C020628, FSC-C022516 and FSC-C023492)), Klabin applies strict international wood control standards at all of its wood supply points. Bimonthly audits conducted by an internal team in order to assess compliance with Chain of Custody standards to verify the effecciency of the traceability system.
This bimonthly internal audit process evaluates the documentary issues in 100% of the wood suppliers and is validated with external audit by an accredited and specialized team.
In addition, field checks and technical guidance are carried out on an ongoing basis, strengthening the knowledge of the production chain on aspects of forest sustainability and guiding partners in the certification of their properties.
Madeira Controlada Program: Non-certified timber suppliers are evaluated by Klabin's internal team every two months, according to a specific methodology related to FSC® Chain of Custody Certification (FSC - C007520, FSC - C022516 e C023492). These suppliers are an important part of the supply chain due to the high risks this sector poses.
Klabin invests in the development of rural producers in Paraná and Santa Catarina through the Plante com a Klabin Program. The initiative contributes to promoting income distribution by not concentrating all the available wood under the Company's control, helping to develop forestry and harvesting service providers and bringing economic diversity to the producer within a property.
Certificação Florestal Program: The Certificação Florestal Program for Small and Medium Rural Producers, which considers the FSC® SLIMF standard (created in partnership with Klabin) is promoted in the region of Campos Gerais, Paraná, Santa Catarina and Rio Grande do Sul. The certificate confirms that the timber producer operates with social and environmental responsibility and follows global management standards. In 2022, approximately 111,109 hectares of land owned by small and medium-sized farmers were certified in Paraná and over 7,000 in Santa Catarina and Rio Grande do Sul.
Share responsibly
Growth associated with a raw material sourced from planted forested areas is a strategic priority for Klabin and a challenge for the entire industry, which anticipates a scarcity of new land in the future. Land sharing through partnerships, crop diversity and initiatives to reverse the degradation of grazing lands are trends that are already coming to fruition. Klabin not only takes the lead in this agenda, but also works to ensure that the entire sector takes responsibility for driving sustainable development.
Suppliers of products and services
Klabin's size and geographical distribution represent challenges for supplier management. The greatest complexity lies in the relationship with third parties in order to seek qualification and monitoring of these companies in relation to the fulfillment of the Company's ESG requirements.
The value proposition for managing this topic at Klabin is to maintain a strong and resilient value chain based on good practices throughout the entire product lifecycle.
In addition to verification of the origin of the wood used in production, Klabin is committed to maintaining sustainability in its supply process, with evaluation criteria and a focus on ESG indicators, as is already done with its wood suppliers.
The methodology used to evaluate strategic suppliers on criteria of Environment, Labor Practices and Human Rights, Ethics and Sustainable Procurement is EcoVadis, which provides evaluation levels that demonstrate the maturity stage of the suppliers in these requirements. Through the National Pact for the Eradication of Slave Labor, which Klabin subscribes to, the company commits to cross-check data from suppliers that appear on the "Slave Labor Blacklist" created by the Ministry of Labor and Employability, with its own records, seeking to address risks associated with labor practices and human rights.
Sustainable Supply Chain Management
Guidelines in the General Conditions for Supply and Code of Conduct for Suppliers address the adoption of good social and environmental practices that seek the effective management of potential risks associated with Klabin's suppliers activities.
7,528
was the total number of active suppliers of products and services to Klabin in 2022, distributed throughout Brazil.
BRL 7.3
billion was the total spent on suppliers in the period, up 44% from 2021.
Recognition
In 20222, Klabin held the first edition of the Suppliers of the Year Award. Its purpose is to recognize the contribution of its partners, with the goal of strengthening the relationship and promoting the best practices to ensure they are increasingly in line with the values of ethics, transparency, and respect for the environment.
In all, 19 partners were recognized for excelling in 2021 and 2022 in their supply categories. The award ceremony took place during the 5th edition of Inova Klabin in September 2022, and was divided into five main categories - Raw Materials, Forestry, Industry, Logistics, and Corporate Services - as well as two special categories - Sustainability and Innovation.
Learn more about Inova Klabin at:
“The seal provides benefits to the entire production chain, such as reducing waste and increasing product delivery capacity, not only for Klabin, but also for other stakeholders. An evolution that directly impacts the financial lives of the families involved.”
