CMPC achieves three Leadership scores in the 2020 CDP´s questionnaire and does two ‘A List’ ratings, reaching this ranking in Forests for the first time
What have been the main areas of progress during 2020 and in which aspects is there room for improvement in 2021 have been the two questions that will guide the performance of CMPC during the present year so that the Company expands its leadership position in sustainability.
In 2020, CMPC, once again ranked within the ‘A List’ Companies, awarded by the prestigious international organization CDP, a non-profit organization that promotes the disclosure of companies and governments’ data to help reduce emissions of greenhouse gases, safeguard water resources, and protect forests.
During the past year, over 9,600 companies -with an increase of 14% over 2019- submitted their data to CDP. More than 5,800 of those companies were assessed.
In its most recent submission, CMPC ranked among the select group of companies achieving the ‘A List’ in Water and Forests, and in Climate Change, the Company scored an A- (minus), which also ranked it in the Leadership category.
In Water Security, an area that has performed well during last year’s disclosure has been the strengthening of water policies, through the Environmental and Climate Change strategies, as well as the development of a concrete corporate sustainability goal related to water management that represents the spirit of these instruments.
Beside this, there are specific activities related to water quality monitoring plans in hydrographic catchments, linking with public and private key organizations, such as the National Wood Corporation (CORMA by its acronym in Spanish), the University of Concepción, the World Business Council for Sustainable Development (WBCSD), and the Corporate Leaders Group (CLG-Chile). In parallel, there has been a significant increase in the transparency of monitoring and accounting of water usage in all CMPC facilities in Latin America, through an exhaustive research and systemization at all levels within the Company.
In order to keep growing in 2021, the company has committed its participation for a second year in the CDP Supply Chain Program, in an active effort to manage risks and opportunities with the main CMPC suppliers. One positive outcome of the aforementioned program is the high rate of response to this questionnaire, achieving a total response of 67% in the first year, just two points short of the global average. A total of 51 Tier 1 suppliers were invited to respond.
In 2020, the Company moved up from a Management (B) to a Leadership (A) score, achieving the ‘A List’ in Forests, surpassing the South American and sectoral average of B. Leadership was achieved in the following categories: Traceability, Targets, Policy & Commitments, Land-based Metrics, Governance, Forest Risk and Impact Assessments, Certification, and Business Strategy. This is backed up by the high rate in Sustainable Forest Management certification, the launch of the environmental sustainability goal related to Conservation, Protection and Restoration, the entire corporate governance structure, the strategies and commitments to enable their fulfillment, and the transparency required for the inclusion and disclosure of supply-chain practices, its traceability and objectives.
During 2021, there will be a special focus on continued growth in Forest-related Risk Exposure and Opportunities where, despite active disclosure and engagement, progress remains to be made in implementing best practices in risk and opportunity evaluation associated with better reporting and responses.
The highlight of the CDP Supply Chain program in Forests is the high rate of response by the Tier 1 suppliers, equivalent to 52%, representing a global second place among companies in the sector.
CMPC moved up from a B score (Management) to an A- (Leadership), reflecting great progress in several categories. Outstanding achievements include the establishment of the corporate goal for environmental sustainability, through a 50% reduction in Scope 1 & 2 GHG emissions by 2030; a greater integration of the value chain; an upgrade of the risk management process and instruments; and a preliminary consideration of the incorporation of the Task Force on Climate-related Financial Disclosures (TCFD) recommendations. Moreover, climate-scenario analysis is being used in some areas of the Company and, lastly, climate change issues are being included in company financial planning, related to green finance.
Some of the key factors to continued growth in 2021 will be the progress in the achievement of the corporate goal to reduce GHG emissions, this, looking forward to see not only real reductions in absolute emissions and their intensity, but also greater progress in the use of scenario analysis in different areas of the Company and, finally, the establishment of a Scope 3 goal, in order to keep basing the company objectives on science-based targets.
In the case of the Supply Chain program in the category of Climate Change, the company reported a 75% rate of response to the questionnaire, 5 points above the average for global responses by participants in the program.