Commitment to Sustainable Product Design

As an integrated company, CMPC ensures a significant portion of raw materials are produced and sold internally, starting with the forest value chain. We prioritize raw materials with a lower environmental footprint, focusing on reduced water, energy, and material use. Our chain of custody and controlled wood certifications guarantee the traceability of wood across the supply chain, ensuring environmentally responsible sourcing. We also emphasize the use of renewable raw materials, significantly reducing hazardous substances and toxic materials.

Product Stewardship Program

CMPC has a formal and publicly available Product Stewardship Program that establishes a methodology for classifying “sustainable” revenues across the entire product life cycle. The program addresses key sustainability considerations from raw material sourcing to end-of-life management.

• Raw material sourcing: 100% of wood fiber is covered by FSC and/or PEFC Chain of Custody traceability, and approximately 95% of total production inputs originate from renewable sources.
• Operations and manufacturing: The program promotes continuous improvement in resource efficiency and supports targets related to zero waste, water stewardship, and energy management.
• Distribution: Sustainability considerations are incorporated through circular bioeconomy initiatives and the gradual adoption of electromobility solutions.
• Use phase: The program supports the development and commercialization of sustainable products and solutions, including sustainable construction materials, nanocellulose-based innovations, and products marketed under the Nova portfolio.
• End-of-life: Product stewardship principles are extended beyond the point of sale through initiatives that promote biodegradability, circularity, and material recovery, including the Zero Waste Sack program and the recovery of post-consumer fiber.

CMPC promotes training in sustainable design through initiatives aimed at strengthening its teams’ capabilities in innovation, product development, and packaging solutions with sustainability criteria. These trainings are framed within the Company’s corporate innovation targets, which establish that 10% of sales must come from new and innovative products or business models, and that 20% of sustainable development goal achievement must be reached through innovation or disruptive technologies.

During the second half of 2025, the Company developed a user-focused innovation training program in collaboration with MIT, aimed at innovation teams, commercial areas, and clients. The program comprised four modules, and 77 people completed the training and received their respective certification, covering methodologies to identify customer and user needs for the creation of innovative and sustainable solutions in new packaging design. This collaboration with MIT also materialized in the second edition of CMPC Biopackaging’s Packaging Innovation Contest, held in 2025 together with the Massachusetts Institute of Technology, the Cambridge Innovation Center (CIC), and the Chilean salmon company Multi X, focused on developing sustainable biopackaging solutions for the Chilean salmon industry in the United States. The call for entries brought together more than 80 participants, designers, creatives, and entrepreneurs from different countries, and the winning project, “Longitude 9°” (team IAMCLIMATE, from the United States, Italy, and India), developed a three-compartment vertical packaging system that optimizes transportation, reduces waste, and facilitates the package’s composting at the end of its useful life.

In addition, CMPC has driven ideation workshops focused on the design of sustainable packaging solutions, applying hackathon-style collaborative methodologies with multidisciplinary teams from the Supply Chain and Commercial Moldeados management areas, with a concrete application case in the development of sustainable packaging for the salmon industry in North America. These workshops made it possible to identify specific business challenges, structure work teams, and develop solutions with greater environmental and functional value.

This track record of collaborative innovation dates back to the first edition of the Packaging Innovation Contest, held together with Tongji University, MIT, and the Cambridge Innovation Center, and is now moving toward a third edition (2026), held in Chile for the first time, aimed at design students and recent graduates from universities and technical-professional institutes across the country.

Additionally, for 2026 CMPC is driving this sustainable packaging design contest together with clients such as Agrosuper, Soprole, and AB InBev. In this initiative, clients define challenges related to the use of corrugated cardboard, which are addressed in collaboration with universities and integrated into academic courses, with the goal of developing innovative proposals and moving forward with pilots of the winning projects.

These initiatives reflect CMPC’s commitment to incorporating sustainability principles into product design and development, strengthening internal capabilities and promoting collaboration with clients, universities, and other key areas of the value chain.

Choice of Raw Materials

In 2025, CMPC sourced 751,841 tonnes of recovered and recycled fiber through suppliers and its own collection programs, including 743,047 tonnes of recovered fiber and 8,794 tonnes of recycled fiber. This approach supports the Company’s commitment to circularity by extending the useful life of fiber-based materials, promoting resource efficiency, and increasing the use of renewable raw materials across its Pulp, Biopackaging, and Softys businesses.

Additionally, renewable materials in 2025 represented more than 95% of CMPC’s total material consumption, reflecting the Company’s fiber-based business model and continued focus on renewable resources, circularity, and resource efficiency.

CMPC classifies its sustainable revenues into two categories based on publicly disclosed criteria: “Certified Timber Products (FSC and/or PEFC)” and “Recycled Wood-Based Products.” 

The Certified Timber Products category includes portions of the Biopackaging business, CMPC Maderas Chile and USA, Pulp, Forests, and Softys Professional operations. The Recycled Wood-Based Products category includes Softys Tissue, Corrugated Packaging operations (Cordillera, Buin, Til Til, Osorno, and Molded Pulp facilities), as well as Sack Kraft operations in Chile and at the Campos Novos mill in Brazil. 

Accordingly, FSC and/or PEFC certification and recycled content constitute the Company’s proprietary taxonomy for sustainable products and revenues. 

All products are supported by third-party verified Environmental Product Declarations (EPDs), which confirm the absence of Substances of Very High Concern (SVHCs) as defined under the European Union REACH Regulation. In addition, products and manufacturing processes are supported by internationally recognized certifications, including FSC, PEFC, ISO 14001, ISO 9001, and HACCP, providing assurance regarding responsible sourcing, environmental management, quality management, and product safety.

The slight decrease in the share of sustainable revenue from 81.0% in 2024 to 78.2% in 2025 primarily reflects lower revenues across the Pulp, Biopackaging, and Consumer Tissue business segments during 2025. In contrast, Softys Personal Care, which is not included in the sustainable revenue calculation, remained relatively more stable over the same period.

Looking ahead, CMPC has established clear growth targets through 2030. The Natureza Project is expected to add 2.5 million tonnes per year of short-fiber kraft pulp production capacity, all operating under the same FSC and/or PEFC-certified sourcing standards applied across the Company’s forestry value chain. In addition, CMPC’s new Lignin Plant, with a planned capacity of 2,000 tonnes per year, will introduce an entirely new biorefinery revenue stream based on renewable, bio-based products. Together, these initiatives represent quantifiable growth opportunities that support the expansion of CMPC’s sustainable products portfolio through 2030.

Quantified Capital Expenditure and Strategic Investments Supporting Sustainable Products and Low-Carbon Growth

In addition to the capital expenditure projects outlined above, CMPC maintains a dedicated innovation investment platform to identify, develop, and scale next-generation sustainable products and technologies.

>> CMPC Ventures Innovation Fund  

In December 2023, CMPC launched a US$100 million corporate innovation fund, designed to invest in early-stage startups, technology companies, and partnerships with universities and innovation centers in Chile and abroad. The fund is expected to be deployed over a five- to seven-year period and is governed by an investment committee comprising Board members, Chief Executive Officer Francisco Ruiz-Tagle, and senior executives, including Innovation Manager Felipe Alcalde. At the time of its launch, more than US$20 million had already been invested in startups, innovation projects, and strategic partnerships.

During 2025, CMPC Ventures refined its investment strategy, strengthening its role in identifying, validating, and investing in technologies with the potential to scale across CMPC’s operations and business units. More than 400 startups were evaluated during the year, bringing the cumulative total to over 1,500 since 2021. The platform also expanded its global innovation ecosystem by adding 117 new partner organizations and developed the first version of a formal “Graduation Path” process to assess how portfolio technologies can be integrated into CMPC’s businesses through licensing agreements, commercial partnerships, joint ventures, or other scaling mechanisms. This process is supported by a multidisciplinary team involving CMPC Ventures, Business Units, Corporate Development, Strategy, and New Business teams.

Together with the Company’s industrial investment portfolio, CMPC Ventures provides a structured mechanism for developing and commercializing innovative bio-based materials, circular economy solutions, and low-carbon technologies that can contribute to the long-term growth of CMPC’s sustainable products portfolio.

CMPC Ventures Portfolio: Strategic Investments Supporting Sustainable Products and Bioeconomy Innovation (2025)

CMPC is committed to reducing GHG emissions, improving energy efficiency, optimizing water use, and minimizing waste generation throughout its operations. In 2025, the Company achieved its corporate Zero Waste to Landfill goal, recovering or valorizing approximately 3.03 million tonnes of non-hazardous waste, equivalent to 98% of total non-hazardous waste generated. Additionally, CMPC continues to strengthen its energy performance across operations through the implementation of Energy Management Systems certified under ISO 50001 and the execution of energy efficiency projects across its business lines. In 2025, renewable energy represented approximately 82% of total energy consumption, supported by the use of renewable biomass, black liquor, renewable electricity, and other low-carbon energy sources. The Company also advanced its water stewardship agenda through water efficiency and recirculation initiatives across its operations. During 2025, water-use efficiency improved, reducing water collection intensity from 26.01 m³/t in 2024 to 24.92 m³/t of production, while several water-reuse projects contributed to reducing freshwater withdrawals in water-stressed regions. The Company’s goal is to reduce industrial water use by 25% per ton of production by 2026. CMPC’s forest operations continue to play a key role in climate change mitigation and carbon sequestration. Through its decarbonization roadmap and climate strategy, the Company remains committed to reducing its emissions and advancing toward its long-term Net Zero ambition (with a corporate target to reduce emissions by 50% by 2030) while supporting biodiversity conservation and sustainable forest management.

CMPC focuses on developing innovative products that contribute to a circular bioeconomy, particularly in packaging, where we create alternatives to plastic. We manufacture and sell packaging products with a high percentage of recycled fibers. Additionally, we are advancing electromobility to reduce environmental impact and energy costs in transportation and operations. By identifying high-energy consumption equipment, we aim to electrify our mobile equipment fleet, further contributing to sustainable development.

CMPC designs products that enhance efficiency and durability during their use phase. Our approach to sustainable construction supports the circular bioeconomy by offering alternatives to traditional building materials, thus reducing the environmental footprint of buildings. Examples include thermally modified wood for improved durability and plywood impregnated with micronized copper for increased resistance to humidity and termites. We also explore nanocellulose for reinforcing paper and board and support other uses like prosthetics, construction, and automobile parts. Our tissue products, developed by Nova, are designed for efficiency in use, and our pulp team assists clients in reducing energy consumption in their processes.

 End of Life Management

As by-products of wood, CMPC’s products are naturally biodegradable, offering significant end-of-life benefits compared to alternatives like plastics. Our Zero Waste Sack disintegrates in cement mix, eliminating packaging waste. We are dedicated to the concept of a “circular bioeconomy,” maximizing the value of our raw materials through the recovery and reuse of biological resources. We actively explore opportunities to utilize lignin, nanocellulose, biocomposites, and byproducts such as tall oil, methanol, and hydrogen. Additionally, we are the only Chilean company selling independently certified structural wood and are pioneering in solid wood CLT construction, significantly reducing construction waste. Through our multiple plants, we recover and recycle post-consumer paper and cardboard, reducing landfill waste and the use of virgin fiber.

Through company- and supplier-led recovery programs, CMPC in 2025 was able to collect and recover more than 751,000 tonnes of fiber. The majority corresponded to recovered fiber from post-consumer sources, supporting the reintegration of materials into the production cycle and reducing the need for virgin raw materials.

Development of Environmental Product Declarations (EPDs)

As part of its commitment to transparency, sustainable product stewardship, and customer engagement, CMPC continues to expand the use of Environmental Product Declarations (EPDs) across its product portfolio. EPDs provide independently verified information on the environmental impacts of products throughout their life cycle, enabling customers to make informed decisions based on reliable and comparable environmental data.

EPDs are an important component of CMPC’s ESG value proposition, supporting customers in meeting sustainability requirements, responding to evolving ESG regulations, and advancing their decarbonization and environmental performance roadmaps. Through the development and disclosure of EPDs, CMPC promotes technical transparency, data sharing, and a deeper understanding of product life-cycle impacts.

CMPC has We have already published EPDs for CMPC Plywood, demonstrating our commitment to environmental responsibility. Additionally, we developed EPDs for BoxBoard products from our Biopackaging plants in Maule and Valdivia, as well as for pulp products from our Santa Fe plant in Chile and the Guaíba plant in Brazil. These EPDs are publicly available, providing detailed environmental impact information and reinforcing our dedication to sustainable product stewardship, and can be found in the official EPD website: EPD Library | EPD International

CMPC’s approach to Product Stewardship is a comprehensive commitment to sustainability, innovation, and efficiency throughout the lifecycle of our products, from raw materials to end-of-life management and material circularity .

As mentioned above, CMPC products are supported by third-party verified Environmental Product Declarations (EPDs), which confirm that no substances listed on the EU Candidate List of Substances of Very High Concern (SVHC) are present in our products. Additionally, our products are certified under multiple internationally recognized standards, such as FSC, PEFC, ISO 14001, ISO 9001, and HACCP. These certifications collectively demonstrate that our products meet all applicable legal requirements, are environmentally responsible, and do not contain hazardous substances.

As a result, the company does not generate revenues from products containing hazardous substances regulated by REACH or equivalent regulations. We are committed to developing and offering products and services with no undue impacts on the environment, in alignment with our goal of avoiding harm to people and natural ecosystems.

In 2025, CMPC reinforced the role of Environmental Product Declarations (EPDs) as a key tool for customer engagement, supporting technical transparency, ESG regulatory compliance, and customer decarbonization strategies through reliable environmental product information.

Technical and Financial Support for Smallholders

>> CHILE >> 

In Chile, CMPC Pulp manages a Forest Certification Group aimed at supporting small and medium-sized forest landowners in the implementation and maintenance of sustainable forest management certifications under FSC and CERTFOR/PEFC standards. The initiative operates on a voluntary basis and provides ongoing technical support to help participating landowners meet certification requirements and access markets that demand certified wood.

Currently, the group comprises 18 small and medium-sized forest landowner companies certified under CERTFOR/PEFC, of which 15 are also FSC-certified. These companies are located across the Maule, Ñuble, Biobío, La Araucanía, and Los Ríos regions of Chile.

As part of the forest certification group management process, CMPC provides direct technical support throughout both the onboarding and continued participation of group members. This support includes document and property reviews, preparation and updating of mapping information, assessment of potential native forest conversion, native forest characterization, stakeholder consultations, development and updating of forest management plans, field monitoring activities, and support during the certification audit processes required under applicable standards. In addition, participating properties are incorporated into monitoring systems that enable continuous oversight of their forest management activities.

As part of its efforts to strengthen landowner capabilities, CMPC conducts regular training activities and provides outreach materials covering environmental, social, health and safety topics, as well as forest certification requirements. The group operates under a common governance framework, including an integrated group policy, operating procedures, and management standards, facilitating the consistent implementation of responsible forest management practices across all members.

CMPC also carries out systematic compliance monitoring and assurance activities. During 2023, internal audits were conducted for group members, complemented by external certification audits and the ongoing management and follow-up of audit findings. In addition, monitoring activities are performed on properties with active forestry operations, inactive properties, and completed harvesting sites to verify compliance with legal requirements and the FSC® and CERTFOR/PEFC standards.

From a financial perspective, CMPC helps reduce the economic barriers that small and medium-sized forest landowners face in obtaining and maintaining forest certification. The group administration has a dedicated budget to support program management activities, including costs associated with certification bodies, external audits, audit logistics, and mapping activities. Furthermore, since 2019, the group administration has waived the annual membership fee for participating members, thereby reducing certification maintenance costs for landowners.

In summary, participation in the Forest Certification Group enables small and medium-sized forest landowners to obtain internationally recognized certifications, reduce the costs associated with individual certification schemes, benefit from specialized technical support, and access markets that demand wood sourced from certified and responsibly managed forests.

>> BRAZIL >>

In Brazil, CMPC further supports small-scale forestry producers through its RS+Renda Program, which fosters partnerships with small rural landowners (parcerias) and provides financial assistance to enable FSC Forest Management certification under the SLIMF (Small and Low Intensity Managed Forests) framework. Through this initiative, participating producers are able to certify their forest properties in accordance with FSC requirements, promoting responsible forest management, enhancing market access for certified wood products, and supporting compliance with robust environmental and social standards across the value chain.

Additionally, the program delivers technical and financial assistance designed to enhance the long-term viability and sustainability of participating producers’ forestry operations. Support measures include technical guidance for the establishment and management of forest plantations, assistance in meeting environmental and permitting requirements, support for the preparation and implementation of Degraded Area Recovery Plans (PRADs), and advisory services to facilitate compliance with applicable Brazilian environmental regulations.

The program further provides economic support through mechanisms such as plantation establishment subsidies, financing alternatives, advance payment arrangements, and guaranteed off-take agreements for forestry production. Together, these measures help reduce barriers to entry, strengthen the economic sustainability of small rural producers, and promote greater participation in certified and responsible forestry value chains.

In addition, CMPC supports participating producers in forest fire prevention and firefighting efforts, contributing to the resilience, productivity, and sustainable management of their properties.

100% of third-party materials purchased from small forest owners in Chile and Brazil are certified.

Return on environmental investments

CMPC’s environmental investments continued to deliver measurable financial benefits in 2025, generating USD 155.3 million in savings, cost avoidance, income, and other incentives. The saving-to-expenses ratio increased to 0.352, reflecting a stronger financial return from the Company’s environmental investment portfolio.

Return on Environmental Investments (USD)