Climate Change Data

Environmental Metrics

ESG Focus Areas

• Globalization and Efficiency
• People
• Environment
• Community and Neighbors

Environmental Achievements

• Reduced water consumption by as high as 21% at the Nueva Aldea panel plant through increased use of recycled water.
• Expanded conservation and protected areas in Chile from 3,000 to 62,000 hectares.
• Placed 1,070,788 Emissions Reduction Certificates in the carbon credit market.

Social Achievements

• Consolidated all social programs under the Integrated Sustainable Development Model (MIDES).
• More than 12,900 people participated in consultation processes.
• Implemented the Sustainable Reconstruction Plan (PRES) in Constitución.
• Awarded 73 Academic Excellence Scholarships to children of its workers in Chile.

Governance Achievements

• Created the position of Chief Executive Officer.
• Ratified adherence to the UN Global Compact.
• Incorporated Law 20.393 (criminal responsibility in cases of bribery) into the company’s Code of Ethics.

Climate Goals & Targets

Environmental Challenges

• Fluctuations in market price of products.
• Global competition.
• Economic recession.
• Environmental regulations and costs.
• Climate change.
• Forest fires.
• Labor disputes.
• Relations with neighboring communities.

Mitigation Strategies

• Ongoing dialogue with stakeholders.
• Investments in new production plants and assets.
• Implementation of stringent international standards.
• Process and policy changes to reduce consumption of production inputs and minimize environmental impacts.
• Development of the ARAUCO Innovation Model.
• Work Climate Surveys to understand worker expectations.
• Talent Formation and Training programs.
• Operational Excellence Program.

Supply Chain Management

Responsible Procurement

• Preferencing procurement from local suppliers.
• Local Supplier Development Program.
• Model Pulp Business Suppliers Program.
• Panels Suppliers Business Improvement Plan.

Climate-Related Risks & Opportunities

Physical Risks

• Earthquake, flooding, or tsunami damage.

Transition Risks

• Stricter environmental emissions norms.

Opportunities

• Development of energy-efficient products and renewable energy sources.

Reporting Standards

Frameworks Used: GRI G3.1 Guidelines

Certifications: ISO 14001, OHSAS 18001, ISO 9001, CERTFOR Sustainable Forest Management, Chain of Custody (PEFC, FSC), ISO 17025

Third-party Assurance: QMI SAI Global

Awards & Recognition

• SOFOFA-Capital: Social Responsibility Prize 2010
• Good Corporate Citizen Prize 2011
• Best Businessperson Prize 2011
• Association of Architects Offices (AOA) Businessperson Prize
• Annual Security and Emergency Response Training Center (SERTC) Prize
• Prize for the best stand in the “100 Showrooms” trade fair
• Outstanding Chilean Investor in Argentina Prize
• Prize for Agricultural Excellence 2011
• Prize for Operational Innovation (PIO) 2011
• Certification as a Partner Company of the UN Millennium Development Goals
• Public recognition as a Partner Company of the School Community Program