Climate Change Data

MASISA S.A.

Climate Impact & Sustainability Data (2021, 2022)

Reporting Period: 2021

Environmental Metrics

Total Carbon Emissions:17,630 tCO2e (Scope 1)
Scope 1 Emissions:17,630 tCO2e
Scope 2 Emissions:93,827 tCO2e
Total Energy Consumption:249,596.34 MWh
Water Consumption:0.617 million cubic meters
Waste Generated:882.52 tons disposed, 10375.205 tons recycled/reused

ESG Focus Areas

  • Environmental
  • Social
  • Governance

Environmental Achievements

  • Emission reduction measures to 30% of the base year (2013) must be implemented by December 2024.
  • Investment plan to improve emission control systems and install/replace scrubbers to reduce particle emissions.

Social Achievements

  • Development of a Human Rights Policy, training of executives and leaders, survey of the human rights risk matrix, and formalization of prevention actions and continuous improvement plans regarding human rights variables.
  • Employee support programs including work-from-home arrangements, childcare contributions, and lactation facilities.

Governance Achievements

  • Maintains an Ethics Committee to monitor ethical compliance, composed of General Management, People, Culture and Internal Communications Management, Legal and Corporate Affairs Management, and Internal Audit Management.

Climate Goals & Targets

Medium-term Goals:
  • Emission reduction measures to 30% of the base year (2013) by December 2024.
Short-term Goals:
  • Goal to have at least 2 contracts with suppliers with circular economy components by 2022.

Environmental Challenges

  • Socio-political changes in the region (social unrest, political instability, and polarization) generating uncertainty regarding investment and potentially impacting Masisa's growth.
  • Possible changes in the legal and regulatory framework could bring higher levels of volatility in business flows.
Mitigation Strategies
  • High diversification of markets (approximately 50% of turnover comes from North America, mainly the United States).
  • Strengthened relationships with clients.
  • Maintaining a stable financial position and a low level of indebtedness.
  • Investment plan to strengthen its competitive position.
  • Continuous monitoring of the situation in the region to react in time to unexpected market changes.

Supply Chain Management

Supplier Audits: 100% of critical suppliers evaluated annually on sustainability issues.

Responsible Procurement
  • 100% of tendered suppliers had contractual sustainability clauses in 2021.

Climate-Related Risks & Opportunities

Reporting Standards

Frameworks Used: Global Compact

Reporting Period: 2022

Environmental Metrics

Scope 1 Emissions:16,557.65 Metric tonnes CO2e (2022)
Scope 2 Emissions:66,905.37 Metric tonnes CO2e (2022)
Scope 3 Emissions:56,332.71 Metric tonnes CO2e (2022)
Total Energy Consumption:876686 MWh (2022)
Water Consumption:0.588 million cubic meters (2022)
Waste Generated:9367.1 Metric tonnes (2022)

ESG Focus Areas

  • Product Innovation
  • Client Management
  • Health and Safety
  • Air emissions
  • Strengthen local capacities
  • Risk Management
  • Water scarcity
  • Corruption & Bribery
  • Policy Influence
  • Supply Chain Management
  • Cybersecurity
  • EMS
  • Greenhouse Gas Emissions
  • Energy Consumption
  • Waste Disposal
  • Chemical Oxygen Demand
  • Water Use
  • Climate-Related Management Incentives
  • Low Carbon Products
  • Biodiversity
  • Product Stewardship
  • Workforce Diversity
  • Human Rights
  • Training and Development
  • Employee Support Programs
  • Employee Turnover
  • OHS Programs
  • Social Impacts on Communities
  • Local Employment

Environmental Achievements

  • ISO 14001:2015 certified management system
  • Reduced particulate matter emissions
  • Installed online monitoring systems to measure water extraction
  • 87% of total revenues from climate change product(s) in FY2022
  • Avoided emissions for third-parties: 8,464.3 ton CO2e
  • Company-wide avoided emissions: 128,861 ton CO2e

Social Achievements

  • Pre-contract and work scholarships for local people in Chile
  • Jobs for people with low experience or recent graduates in Venezuela
  • Initiative with forest service companies in Argentina to promote local development
  • Two Pre-Contract training courses (50 individuals, 220 hours)
  • Four Vocational Scholarships training courses (60 individuals, 416 hours)
  • Weekly sports events for employees
  • Working-from-home arrangements
  • Childcare contributions
  • Lactation facilities

Governance Achievements

  • 29% independent directors (exceeding Chilean law requirements)
  • Three-year cybersecurity plan presented to the board every six months
  • Formal and systematic risk management process
  • Independent evaluations by Internal Audit Management
  • Certification evaluations (ISO, OHSAS, FSC®, etc.)
  • Review of financial statements by External and Internal Audit
  • Inspection of risks in operations by insurance companies
  • Publicly disclosed policies, certifications, and procedures

Climate Goals & Targets

Long-term Goals:
  • Not disclosed
Medium-term Goals:
  • By 2030, be a world-class reference in Occupational Health and Safety
Short-term Goals:
  • Work Accident Frequency Index: 0.5 (2023)
  • Severity Index: 10 (2023)
  • Zero serious accidents (2023)

Environmental Challenges

  • Forest fires due to climate change
  • Water scarcity in south-central Chile
Mitigation Strategies
  • Emergency brigades trained by the National Fire Academy
  • Emergency plan with preventive operation stoppage and evacuation
  • Damage coverage insurance
  • Increased water efficiency
  • Transparent governance of water resources
  • Collaboration for sustainable environmental management
  • Online monitoring systems for water consumption

Supply Chain Management

Supplier Audits: 74 Tier-1 suppliers assessed (100%)

Responsible Procurement
  • Supplier desk assessment
  • Surveys for critical suppliers
  • Review of commercial and social behavior reports
  • Compliance checks
  • Third-party accreditation (ISOs and raw material certifications)

Climate-Related Risks & Opportunities

Physical Risks
  • Forest fires
  • Water scarcity

Reporting Standards

Frameworks Used: Global Reporting Initiative (GRI), Dow Jones Sustainability Index (DJSI)

Certifications: ISO 14001:2015, ISO 9001:2015, ISO 45001:2018, FSC®

Third-party Assurance: SGS

Sustainable Products & Innovation

  • Products with recycled material