Climate Change Data

Environmental Metrics

ESG Focus Areas

• Forestry
• Pulp and Paper Production
• Community Engagement
• Employee Well-being
• Eco-efficiency
• Biodiversity Conservation
• Fire Prevention
• International Expansion

Environmental Achievements

• Reduced water consumption per ton of pulp and paper produced by 12% from 2010 to 2013.
• Increased biomass use in energy production to approximately 68% in 2013.
• Reduced overall energy consumption through various efficiency improvements.
• Improved effluent quality through modifications at the Figueira da Foz Industrial Complex.
• Reduced carbon monoxide emissions at the Figueira da Foz biomass boiler with a new bark silo.
• Reduced NOx emissions at the Setúbal Industrial Complex through biomass boiler renovations.
• Achieved waste reuse rates of 97% and 82% in 2012 and 2013 respectively.
• Renewal of FSC and PEFC certifications in 2012.

Social Achievements

• Launched a four-year PhD program in forestry in cooperation with the University of Lisbon.
• Supported the reforestation of the Buçaco Woodlands Park.
• Awarded the Sustainable Forest Management prize under the “ARRISCA C'2012” scheme.
• Launched the “Give the Forest a Hand” project, which won an APCE award.
• Contributed to the PERA Project, providing breakfast for 150 students.
• Created the Talent Management and Organizational Development Department.
• Implemented a three-year project for “More Sustainable Safety in the Portucel Group”.
• Average training hours per employee increased to 57.7 in 2013.

Governance Achievements

• Published a new version of the Forestry Policy in 2013.
• Implemented practices for compliance with the EU Timber Regulation.
• Maintained management systems certified under ISO 9001, ISO 14001, OHSAS 18001, FSC, and PEFC.
• Proclaimed “European Business of the Year” in 2013.

Climate Goals & Targets

Environmental Challenges

• Forest fires
• Climate change impacts on forestry
• Maintaining high recycling rates
• Meeting stricter environmental regulations
• Managing the water footprint
• Supply chain risks

Mitigation Strategies

• Investment exceeding three million euros annually in fire prevention and fighting.
• Implementation of fuel management practices.
• Participation in the FIRE-ENGINE project.
• Continuous improvement of production processes to enhance eco-efficiency.
• Water consumption reduction measures.
• Risk analysis and assessment for wood purchases.
• Documentary audits of uncertified suppliers.

Supply Chain Management

Supplier Audits: 43 (2012); 35 (2013)

Responsible Procurement

• Chain of Custody Management System
• Preference for suppliers with good environmental and social practices
• Risk analysis and assessment for wood purchases.

Climate-Related Risks & Opportunities

Physical Risks

• Forest fires

Transition Risks

• Changes in environmental regulations

Opportunities

• Increased use of renewable energy

Reporting Standards

Frameworks Used: GRI G3.1

Certifications: ISO 9001, ISO 14001, OHSAS 18001, FSC, PEFC

Third-party Assurance: KPMG

Sustainable Products & Innovation

• Lightweight papers
• Navigator Eco-logical 18 pounds

Awards & Recognition

• European Business of the Year (2013)
• APCE award for “Give the Forest a Hand” (2013)

Environmental Metrics

ESG Focus Areas

• Climate change
• Sustainable forest management
• Water management
• Energy and raw material management
• Bioproducts
• Supplier chain management
• Talent management and development of human capital
• Relationship with communities
• Conservation of biodiversity
• Circular economy

Environmental Achievements

• Replacement of Fuel-Oil Boilers in the Setúbal Industrial Complex, a further step in our commitment to achieving carbon neutrality of its industrial complexes by 2035, 15 years before the Portuguese and European targets.
• 66% of the energy produced by Navigator at its four industrial complexes was obtained from renewable sources in 2022.
• GHG emissions reduction targets approved by the Science Based Targets initiative (SBTi), committing to reduce Scope 1 and 2 greenhouse gas emissions by 63% by 2035, and Scope 3 emissions by 37.5%
• Completion of the Inpactus project, resulting in 37 new patents, four new industrialised products, and eight technical/economic viability studies for potential new business in bioproducts.

Social Achievements

• Unprecedented two-year agreement signed with Employees' Representative Organisations, including a minimum starting salary increase and a productivity bonus.
• Creation of 50 new internships and launch of the Trainee Programme.
• Launch of the Future Leaders Forum, aimed at employees under 33.
• 96% of employees attended around 151,000 hours of training classes in 2022.
• Expansion of the Social Development Programme in Mozambique, focusing on health, education, access to potable water, and environmental awareness.

Governance Achievements

• Implementation of a Policy for the Prevention of Corruption and Related Offences.
• Implementation of a Code of Conduct for Suppliers.
• Annual review of material topics in the 2030 Responsible Management Agenda, ensuring alignment with GRI and CSRD principles.
• Executive Compensation Linked To ESG: Yes (incentives dependent on environmental performance)

Climate Goals & Targets

Environmental Challenges

• Significant increases in production costs, including energy, logistics, and raw materials.
• Shortage in the European paper supply in the first half of 2022.
• Fears of an economic slowdown in the second half of 2022.
• Shortage of domestic wood to supply Portuguese industry.
• Rising freight costs, port congestion, and rising energy prices in logistics.
• Climate-related risks such as forest fires, droughts, and extreme weather events.

Mitigation Strategies

• Adjustment of pricing policy to international developments.
• Improvement of the product mix and increase in productivity.
• Development of alternative sourcing strategies for raw materials.
• Strategic partnerships with shipowners and hauliers.
• Use of e-sourcing tools to access a more global supplier base.
• Focus on rail transport to connect industrial units to ports.
• Implementation of a comprehensive management plan to address potential negative impacts on biodiversity.

Supply Chain Management

Supplier Audits: 87% of suppliers are certified; 97% delivered certified wood in 2022

Responsible Procurement

• Code of Conduct for Suppliers
• Supplier sustainability requirements
• Focus on certified wood

Climate-Related Risks & Opportunities

Physical Risks

• Forest fires
• Droughts
• Floods
• Extreme weather events
• Water scarcity
• Changes in temperatures
• Biodiversity loss

Transition Risks

• Policy and legal changes
• Technological changes
• Market shifts
• Reputational risks

Opportunities

• Increased demand for forest products and bioenergy
• Investment in R&D to develop new forest-based, low-carbon products
• Participation in the voluntary carbon market
• Substitution of fossil fuels with renewable fuels

Reporting Standards

Frameworks Used: GRI, TCFD

Certifications: FSC, PEFC, ISO 50001

UN Sustainable Development Goals

• SDG 8
• SDG 9
• SDG 12
• SDG 13
• SDG 15

The 2030 Agenda includes SDGs that the Group considers a priority insofar as it can make a greater and more direct contribution.

Sustainable Products & Innovation

• gKraft packaging
• Amoos Air Sense toilet tissue
• Amoos Calorie Control kitchen rolls

Awards & Recognition

• CDP 'A' rating for global leadership in combating climate change
• CDP Forest 'A-' rating
• Papies Grand Prize 2022 for My Planet magazine