SUSTAINABLE FOREST MANAGEMENT AND CERTIFIED MANAGEMENT

As part of our public commitment to no deforestation and forest degradation, we have adhered to stringent sustainable forest management standards through various global certification initiatives. This involves complying with strict principles in direct forestry operations and requesting full compliance in indirect operations. This way, we can obtain almost all the raw materials this commitment covers.

As part of our public commitment to no deforestation and forest degradation, we have adhered to stringent sustainable forest management standards through various global certification initiatives. This involves complying with strict principles in direct forestry operations and requesting full compliance in indirect operations. This way, we can obtain almost all the raw materials this commitment covers.

GOALS

The company aims to maintain all certifications and increase coverage to 100% sustainable forest management, production, and consumption of certified raw materials by 2030.

In Brazil and Chile, the forest assets are certified in sustainable forest management. Although it works under the same approach in Argentina, it is certified in Environmental Management, ISO 14.001.

In 2021, the FSC forestry certification process began for its forest management and CoC standard, with positive results in its initial audit. Bosques del Plata’s certification status is expected to be formalized during the first quarter of 2022.

We engage in various external initiatives to promote the implementation of policies related to sustainable forest management, specifically with policymakers and advisors, governments, certification schemes, trade and community associations, NGOs, and funding research. In all cases, the company promotes the importance of forest certification and compliance with its principles and criteria.

Since 2006 in Chile, and 2009 in Brazil, we have been working on the recovery of native species in the Carlos Douglas plantation centers in Los Angeles, Chile, and Barba Negra, Rio Grande Do Sul, Brazil.

We are an active member of The Forests Dialogue, New Generation Plantations, and the Forest Solutions Group. The latter is part of WWF and WBCSD, respectively.
In order to ensure fiber traceability and quality, Chain of Custody and Controlled Wood certifications are used in each Business.

Non-certified controlled wood forest areas have the same operating practices as certified areas, as described in the procedures of the Wood Verification Program, the Controlled Wood Management Manual, and the Due Diligence System. In this way, all timber products can be traced to their place of origin, including timber provided and purchased by third parties. Additionally, the Company has follow-up and reinforcement programs that control the wood that enters its operations, which is checked through specialized teams, methodologies, movement, and fiber traceability.

FOREST ASSETS, PRODUCTIVE AND CONSERVATION AREA (HA):

2018 2019 2020 2021 2022
Forest assets 1,152,545 1,189,680 1,287,115 1,307,351 1,329,885
Productive area 763,887 805,349 840,628 848,528 846,572
Conservation, protection and/or restoration area 321,529 325,995 *385,726 389,376 402,817
Others 62,655 58,335 60,760 69,963 80,496

*Note 1: In the total number of hectares for conservation, protection, and restoration, some administrative uses, water bodies, and others are added to the total number of hectares

ANNUAL PLANTED AND HARVESTED AREAS (HA)

2018 2019 2020 2021 2022
Plantations 43,461 49,088 48,020 46,835 45,130
Harvest 40,268 39,419 37,055 38,704 42,464
Difference in plantations vs. harvest 3,193 9,669 10,965 8,131 2,666
Variation rate 1.08 (8%) 1.25 (25%) 1.3 (30%) 1.21 (21%) 1.06 (6%)

Note 1: The values of the variation rate indicator, when greater than 1, indicate that CMPC has planted a larger area than that harvested, thus demonstrating its commitment to not deforesting.

FOREST ASSETS CERTIFIED IN SUSTAINABLE FOREST MANAGEMENT (HA)

2018 2019 2020 2021 2022
Own certified forest assets 976,930 976,649 974,439 981,160 1,080,147
Percentage of certification in relation to total own forest assets 90.2% 90.3% 90.1% 90.2% 99.4%
Certified third-party forest assets 64,720 65,885 125,716 133,648 210,817
Percentage of certification compared to total third-party forest assets 100% 40.5% 61.1% 60.8% 90.9%
Total certified forest assets in relation to total forest assets 90.7% 83.8% 85.5% 85.6% 98.3%

Note 1: Total equity comprises shareholders’ equity plus the equity of third parties.
Note 2: The % of the certification includes the FSC or PEFC certification scheme that covers the most significant area. For example, Chile has the PEFC certification, and both schemes are 100% in Brazil.
Note 3: Equity owned includes land and flights; leased equity includes usufruct and agreements; managed equity includes land owned by a third party and managed by CMPC.

CERTIFIED RAW MATERIAL (M3)

2018 2019 2020 2021 2022
Total raw material produced (CMPC + third parties) 20,896,000 21,473,000 21,088,000 20,663,038 19,794,999
Percentage of raw material produced by CMPC compared to the total 85.6% 82.3% 82.6% 84.5% 89.50%
Percentage of raw materials produced by third parties compared to the total 14.4% 17.7% 17.4% 15.5% 10.50%
Percentage of certified raw material compared to the total 96.8% 97.0% 95.2% 95.0% 99.50%

Note 1: The total raw material produced comprises the Company’s equity plus the equity of third parties.
Note 2: The % of the certification includes the FSC or PEFC certification scheme that covers the most significant area. For Chile, it is the FSC certification, and both schemes are 100% in Brazil.