Value Chain – Fibria

Value Chain

Fibria’s sustainability strategy would not be complete if it did not involve and inspire how the company conducts its business activities.

Its relations with partners, such as suppliers and clients, is guided by these principles, which have proven capable of transforming strictly commercial relationships into surprising alliances, guided by stronger partnerships and new opportunities.

Supplier relations are based on the premise that sustainability is a powerful driver of business, with the capacity to generate gains for all parties, to disseminate environmental and ethical principles and to maximize the creation of shared value. Seeking to better align the expectations from these relationships, Fibria developed the Sustainable Sourcing Program, which guides supplier relations from end to end, with the goal of obtaining improvements and constantly evolving to strengthen partnerships, while simultaneously fostering responsible actions in the respective value chains.

By engaging various areas of the company, key suppliers and consulting firms, the program implemented a series of initiatives in 2017 and launched the Fibria & Supplier Relations Manual, which establishes transparent and balanced communication among partners. Learn more in the section Suppliers. Within the principle of generating shared value, Fibria also is the idealizer and sponsoring member of supplier development and training programs in the states of Espírito Santo (Supplier Development Program – PRODFOR) and of Mato Grosso do Sul (Supplier Training Program – PQF), the latter in the city of Três Lagoas.

At the other end, i.e., client relations, the company seeks to go beyond strictly commercial relationships to involve products, technical support and logistics. Fibria works to forge relationships with the capacity to propose innovations that not only capture productivity and efficiency gains, but also encourage the co-creation of shared value. In this way, it is able to impact social and environmental aspects while strengthening the bonds of the partnership.

Connection with the Business

Fibria’s financial activities also adopt sustainable practices, such as its issue of Green Bonds, which fund activities with duly verified positive environmental impacts. These bonds require a high level of transparency, since they are subject to external verification until all proceeds are completely allocated. Fibria carried out its first Green Bond issue in January 2017, raising US$700 million through the placement of 5.5% bonds due in 2027 with semiannual interest payments. These issues are part of the company’s ongoing commitment to its strategy and long-term sustainability targets. For more information, go to the Investor Relations website.

Fibria also is implementing innovative and sophisticated models to evaluate, inform and discuss with stakeholders the impacts of its activities on nature and society. The starting point is the application of the Natural Capital Protocol, which helps companies to assess, measure and evaluate impacts and dependencies associated with the natural capital, and to incorporate these non-financial aspects into their decision-making process and dialogue with society.

Defined as the stock of natural resources that produce a flow of benefits for society, natural capital complements ecosystem services, which are the contributions made by ecosystems to human well-being, and externalities, which are positive or negative impacts on third parties, to form a common value base. This make it possible to measure impacts and to translate them into economic terms into a monetary value. With these numbers in hand, organizations have new parameters for incorporating non-financial aspects into their decision-making processes and their dialogue with society. For more information, see the Annual Report.

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