We are committed to conserving and protecting ecosystems and biodiversity, not deforestation, by maintaining hectares of native forest, protecting water courses, flora, and fauna, and restoring ecosystems. We understand the latter as the activity that initiates or accelerates the recovery of an ecosystem, improving the state of conservation, recovering degraded sites, and increasing the flow of ecosystem goods and services.

CMPC’s Nature, Conservation and Biodiversity Strategy is based on four pillars. The first is Biodiversity, which seeks to promote all life that exists on Earth; next is the Ecosystem services axis, which consists of identifying and highlighting the benefits that people obtain from ecosystems; thirdly, creating Nature-based Solutions, which refers to using natural elements to address socio-environmental challenges; and finally, Territoriality, which consists of having a complete view of the landscape, incorporating the vision of the communities, inside and outside of CMPC’s heritage.

Biodiversity Commitment

CMPC’s Nature, Conservation, and Biodiversity Strategy (NC&B) is aligned with the Kunming-Montreal Global Biodiversity Framework (GBF), which commits to achieving Nature Neutrality (no net loss) by 2030 and becoming Nature Positive by 2050.

CMPC prioritizes areas identified as critical habitats, recognizing them as key sites for conservation efforts. As outlined in the NC&B Strategy, the main biodiversity and ecosystem protection actions to be implemented in these areas include:

• Protection of Rare, Threatened, and Endangered species.
• Protection of representative ecosystems and native vegetation.
• Protection of riparian zones.
• Protection of water and soil resources.
• Restoration of vegetation or ecosystems.
• Management of wildlife corridors.

No Deforestation Commitment

In 2002, CMPC, through its forestry subsidiary in Chile, signed a voluntary commitment (endorsed by the General Manager of CMPC Forestal at the time—currently the CEO of Empresas CMPC) to identify, register, and protect native forests on its properties, ensuring they are not replaced by plantations and are preserved to provide economic, social, and environmental goods and services. The company also pledged not to replace or promote the replacement of native forests.

Additionally, in 2010, Forestal Mininco began the FSC Forest Management certification process, which prohibits establishing plantations through native forest substitution and discourages logging of native forests on acquired lands. Forest conversion is only allowed under strict conditions: it must involve a minimal area, avoid high conservation value forests, and yield long-term, substantial benefits for the entire management unit.

In 2011, Mininco published a consolidated report on native forest substitution from 1994 to 2009, including areas altered directly or acquired with prior environmental liabilities. That year, the Company decided to exclude these areas from FSC management and committed to restoring them under FSC’s Remediation Framework, a process currently in progress.

In 2023, the CEO of Empresas CMPC signed the updated public commitment on “Biodiversity and No Deforestation,” reinforcing the company’s long-term goal and dedication to forest conservation and responsible land management.

CMPC considers biodiversity conservation a fundamental aspect of its sustainability strategy. The company is committed to protecting and enhancing biodiversity across its operations and supply chains. This approach is guided by comprehensive risk assessments and sustainable forest management practices.

CMPC has developed an integrated process to identify and evaluate biodiversity risks related to its impacts. This process is based on the company’s Nature Conservation and Biodiversity Strategy and utilizes the IUCN methodology aligned with the TNFD LEAP approach. The company’s risk analysis includes identifying pressures and assessing impacts, using specific biodiversity indicators to monitor changes. CMPC’s assessments are location-specific, ensuring precise identification of pressures and impacts in different operational contexts. Currently, CMPC’s risk management program considers a range of environmental risks, which are managed under the Company’s risk governance structure. These include water-related risks, soil pollution, emissions, wildfires, regulatory risks, biodiversity loss, and pest outbreak in forest plantations. This ensures all operational and investment decisions consider ecosystem services vital to its processes.The Biodiversity risks identified include risks related to “Damage to Protection Areas” and “Native Forest Logging”. 

In 2024, CMPC conducted a preliminary assessment aligned with the first three phases of the TNFD’s LEAP approach applied to the Patagonia Project, aiming to identify sites that should be prioritized for an impact and dependency assessment. This early-stage assessment helped to identify potential pressures (e.g., erosion, disturbances, habitat loss) and provided guidance for the technical design of mitigation measures.

In Brazil, a diagnostic study of dependencies on ecosystem services was conducted in 2024, with the aim of identifying key nature and biodiversity-related dependencies. The initial scope focused on direct operations linked to the Company’s activities at the sites, supporting the risk assessment to be carried out in 2025.

Comprehensive Risk Coverage and Identified Biodiversity Risks

CMPC’s biodiversity risk evaluations cover:

• Own operations
• Adjacent areas
• Upstream activities
• Downstream activities

CMPC has identified and manages biodiversity risks through:

• Conservation and Restoration Plans: Implementing specific plans to conserve high ecological value areas and restore degraded ecosystems, covering over 400,000 hectares, including native forests and high biodiversity areas in Chile, Brazil, and Argentina.
• Monitoring and Adaptation: Continuous monitoring of its activities impacts and adapting practices as needed to improve conservation strategies and minimize biodiversity risks.

CMPC has undertaken various initiatives to mitigate environmental impacts, focusing on biodiversity, climate change, pollution, land use change, and other pressures. These efforts are categorized under 5 criteria: Avoid, Reduce, Regenerate, Restore, and Transform. Highlighting one key initiative per category, the following provides a comprehensive overview of CMPC’s commitment to sustainable practices.

Examples of Key Initiatives

Avoid: 

• Avoid establishing new operations in or adjacent to areas of high biodiversity value or water-scarce regions: This initiative helps CMPC avoid negative impacts on sensitive ecosystems and ensures sustainable land use.

Reduce: 

• Biological Corridors Initiatives: CMPC has developed multiple biological corridors, including those from El Desprecio estate to Los Ruiles Reserve and from Pitao (Angol – Nacimiento). These corridors help reduce habitat fragmentation and support wildlife movement.
• Reduction of forest fuels and waste present in the area, as part of the “El Retiro and Junquillar Restoration Project”: This aims to prevent and/or reduce the occurrence of wildfires, avoid overflows in the Picoiquén River, and improve its water quality. This contributes to the restoration of the riparian ecosystem in the area.

Regenerate: 

• Generate biodiversity and abundance studies of flora and fauna populations in plantations in collaboration with academia: This project regenerates biodiversity by enhancing the understanding and management of flora and fauna.
• Implement operations planning in areas near wetlands, avoiding the impacts of operations on these ecosystems and promoting their recovery.

Restore: 

• Restoration of 3,500 ha for conservation and protection areas through the Maule Fund initiative: This initiative focuses on restoring degraded post-fire areas to their natural state in the Empedrado municipality.

Transform: 

• CMPC-UC Biodiversity and Sustainable Development Chair: This initiative transforms knowledge and practices by promoting scientific research and dissemination on biodiversity and sustainable development.
• Through the National Forest Dialogue initiative, incorporate actions in various relevant forest landscapes (Picoiquen Basin, Empedrado and Trongol – Caramávida) in conjunction with other companies, public organizations and civil society

Responsible Sourcing Program:

CMPC’s Responsible Sourcing Program promotes forest certification, requiring fiber and raw material suppliers to undergo a comprehensive due diligence process. This includes demonstrating the legality of forest ownership, submitting management and harvesting plans approved by the forest authority, and ensuring compliance with safety and product quality protocols. All raw materials are sourced with FSC and/or PEFC chain of custody certifications, covering both the company’s forests and third-party suppliers.