The value of dialogue

The company seeks to ensure the social legitimacy of its business through strengthening, in the long term, its relationship with the communities, and integrating their interests when conducting and managing the business.

A measure towards this goal is the Operational Dialogue, organized to present beforehand the harvesting plan to neighboring communities, with details about the procedures in the vicinity. The idea is to discuss and agree upon ways to avoid or mitigate negative impact. In 2015, a total of 671 dialogues were carried out, with the participation of 4,193 people, covering 100% of all locations affected by the company’s operations.

At the end of each operation, mitigation actions carried out by Fibria are evaluated in individual interviews with neighbors and representatives from the communities, recommended at the dialogue meetings. The results from 2015 demonstrate that the plans were considered positive, with an average effectiveness rate reaching 2.8 on a scale of 0 to 3.

Operational Dialogue
In 2015, the company carried out 671 dialogues with 4,193 representatives from 100% of the communities affected by Fibria’s operations

More than minimize impact on neighboring communities, Fibria would like to avoid it and work jointly on income generating strategies for families and local development. Learning to dialogue with such diverse audiences from such diverse cultures was the first condition for the company to achieve putting into practice hundreds of programs and social actions in recent years. Today these projects benefit around 6,000 families and over a hundred communities in the regions where it operates.

In 2015, the company invested R$ 26.7 million between values paid by Fibria and those raised by the Rede Responsável program. Currently, projects aimed toward income generation, such as family farming, beekeeping, and crafts, correspond to 90% of actions and investments. At the center of the company’s work are aspects such as capacity building; production and productivity; association formation; access to low impact technology; value added to the product, and sales.

Rural Land Development Program

The Rural Land Development Program (PDRT) empowers rural communities neighboring Fibria to strengthen their associations and networks and manage agro-ecological projects. The focus of the program is to support production chains through technical assistance and apply low environmental impact technologies, in addition to guiding access to public policy aiming to increase sales and determine the social needs of the communities. In this way, the program hopes to contribute to increased average income of benefited families and promote local development.

The Rural Land Development Program began in 2012, and in just three years, has reached over 4,000 families from the States of Bahia, Espírito Santo, Mato Grosso do Sul, and São Paulo. As part of the program’s evolution, in 2015, the company sent a proposal of a pilot program to the federal government, whose objective is to give communities participating in the PDRT the opportunity to acquire land, from Fibria and other farmers, through government loans.

Operational Dialogue

Number of Dialogues

Number of participants

Effectiveness rate of mitigation actions

Aracruz

432

1,358

2.9

Jacareí1

118

883

2.8

Três Lagoas

121

1,952

2.7

Total

671

4,193

2.8

1 Includes Capão Bonito and Vale do Paraíba Note: After completion of the forestry operations, the community involved evaluates the process based on a questionnaire applied by the Operational Dialogue team. Each answer receives one of the following scores: good (3), fair (2), bad (1), poor (0). The final score is the result of a weighted average. In 2015, the score was between 2.7 and 2.9 of effectiveness (good).

Water conservation

During the water shortage, the PDRT is helping its participating small farmers save water in irrigation of their crops and other uses. This is seen in Guapiara, a community located in Southern São Paulo state, where savings reached 60%.

In partnership with the Guapiara Association of Organic Agriculture (AGAOR), the technical assistance from Fibria’s program offers training to members interested in implementing microspraying in their fields. The system consists of a laser-drilled hose that releases the necessary amount of water to irrigate the plantation, avoiding waste and reducing the incidence of fungi and bacteria proliferating in soggy soil.

90%
of the company’s investments
in social actions are geared toward income generation projects, such as family farming, beekeeping, and handicrafts

Support to Livestock

In Mato Grosso do Sul, a partnership with the Brazilian Service of Assistance to Micro and Small Enterprises (SEBRAE) is helping hundreds of small livestock farmers participating in the PDRT to increase the quantity and quality of the milk they produce. The focus of the company’s work in 2015 was on improving pastures through alternative techniques that are accessible to producers. Implemented on an area of 1,280 hectares of pastures, benefitting 250 small producers.

At Vale do Paraíba, the company is operating on two fronts. One of them involves SEBRAE and COMEVAP, a dairy cooperative in the region, to which the company offers technical services to 40 milk producers in six cities in Vale do Paraíba. On the other, with SEBRAE alone, Fibria provides technical support to 10 of their neighboring producers. The goal is to enable the future regulated use of the company’s planted areas for this activity. In these two projects, the company invested 44% of the total necessary resources. The rest of the investment is the responsibility of SEBRAE and COMEVAP.

In 2015, Fibria joined the APL, a local production arrangement, along with six entities from Vale do Paraíba. In two years, the group plans to use R$ 1 million towards initiatives such as technical assistance, milk quality analysis, pasture improvements, and technical visits.

Self-sustaining projects

One of Fibria’s goals is to make 70% of all income-generating projects it supports self-sustaining by 2025. To monitor this goal, the projects considered self-sustaining will be those that aim to generate income and strengthen social capital, and no longer receive direct investments from Fibria (inputs, tools, equipment, and infrastructure), receiving only occasional technical support and/or investments raised in the market by communities, or public policies.

In 2015, the percentage of self-sustaining projects reached 20%. A good example was the plan for engaging the community of Boa Esperança, in Capão Bonito, SP. After three years of actions toward strengthening the community, management training and structuring the residents’ association, the community acquired autonomy and independence to handle its social issues, deeming Fibria’s intervention no longer necessary.

Specific communities

Of a total of 566 communities in the area directly affected by Fibria (communities located within a three-kilometer radius around its property or areas leased by the company for eucalyptus production), 78 are formed by traditional fishermen, Indigenous peoples, and Quilombolas.

Since the beginning of its activity, Fibria has been improving its ability to dialogue. The first step was to understand that the company did not have sufficient knowledge to coexist and make proposals in the face of cultural diversity, weaknesses, and such differing needs. The Indigenous community alone involves four ethnic groups. The company sought the help of skilled specialists, trained Fibria interlocutors, and formed a very active multidisciplinary group.

Today, the progress in all regions is indisputable. There is, however, a complex challenge to be overcome: the issue of land reclaimed by the Quilombolas in Northern Espírito Santo, a sensitive issue, whose unfolding involves numerous people and interests. So, in 2015, the company began dialogue with some important players, such as Brazilian Institute for Colonizatoin and Land Reform (INCRA) and the State Coordination of Quilombola Communities in Espírito Santo, aiming to find a solution.

R$ 34
Million
is the total invested in social projects in the year

Fishermen, Indigenous communities and Quilombolas
With the support of specialists and interlocutors, Fibria learns more about its neighbors and improves its competency for dialogue

Partnership with the MST and USP

The bitter conflict experienced by Fibria in 2011 with the Landless Worker’s Movement (MST) turned into one of the most important cases of dialogue involving the company. The need to negotiate with Brazilian Institute for Colonizatoin and Land Reform (INCRA) and the MST about the condemnation of 11,000 hectares in Prado, in Southern Bahia, created the Alvorecer (Dawn) Project, considered an unprecedented experience in sustainable rural production.

The project was developed in partnership with the Luiz de Queiroz School of Agriculture, at the University of São Paulo (USP) and the MST in agroforestry production. The project currently benefits 1,200 families, which in 2015 obtained an income of R$ 1.3 million marketing their agricultural products.

A part of keeping people in the fields involves the transition from camps to settlements, which means that families come out of canvas tents located on the lands occupied and start to live in their houses, with everything a settlement offers, including ownership of the lot.

A couple of concurrent educational and health projects in this process are worth highlighting. One of them is the adult literacy program called “Sim eu Posso” (“Yes, I Can”), that taught over 300 people, and whose goal was to achieve zero illiteracy. The Projeto de Saúde (Health Project), in partnership with Fiocruz, in Rio de Janeiro, operated on two important lines: phytotherapy, with the formation of medicinal plant beds, and a comprehensive diagnosis of the health conditions of participating communities and the local public health conditions. Additionally, a school was built to train technicians in agro-ecology.

Agril Farm

In 2015, a small group of families settled down in the Agril Farm in the State of Espírito Santo, owned by Fibria. It was a small occupation that did not prevent the Company’s activities in that location. Three meetings have already been held in order to find a solution.

Investments in communities
(R$ thousand)1

 

2013

2014

2015

Fibria2

20,658

17,369

20,969

Fibria via Votorantim Institute

2,501

1,925

1,292

Incentivized projects

788

516

1,338

Investment from the Votorantim Institute (own resources and raised via Brazilian Development Bank - BNDES)

3,506

3,142

4,470

Rede Responsável3

4,159

12,199

5,691

Total

31,612

35,151

33,761

1 Voluntary contributions and investment of resources in the community, for beneficiaries external to the company. They include contributions to charities, NGOs and research institutes (not related to the Research and Development Department of the company), resources to support community infrastructure projects, and direct costs of social programs. They also include project management costs. 2 The project Assentamentos Sustentáveis (Sustainable Settlements), in partnership with the MST, investment of BNDES, among others, are also included. 3 To obtain the total value of Rede Responsável, it is necessary to add the value of the investment of the Votorantim Institute, as well as the value of sponsored projects to the value reported.

Plantation of eucalyptus
in Três Lagoas, MS

Forest Partners – Forestry Savings Program


One of the most important links in the company’s value chain, the Forestry Savings Program, encourages rural producers near the production units to plant eucalyptus. In addition to subsidizing them, Fibria offers ample support structuring the plantations, with benefits for the company, its neighbors, and the environment. Currently, 67,000 hectares from 1,685 producers participate in the program, in 164 cities in Espírito Santo, Bahia, Minas Gerais, and São Paulo.

Forestry Savings Program

Forestry Savings

Benefits

Conditions

  • Subsidies to producers;
  • Training and monitoring eucalyptus plantations;
  • Planning and guidance planting other crops
  • Ensures Fibria’s wood supply
  • Generates income for families
  • Stimulates local economy
  • Helps retain the population in the field
  • Model provides security to producers
  • Protects forests
  • Quality of life
  • Inclusion in Fibria’s value chain
  • Environmental compliance for forest partnership productive areas
  • Contracts must meet the needs of the company and producers
  • Wood bought from third parties undergoes the Program for the Verification of Controlled Wood and Controversial Sources, a process created by Fibria to certify the legality of raw materials
25 Years of Partnerships

When the program was launched in 1990, Fibria’s intention was to encourage cultivation of eucalyptus in order to supply 5% of the total wood demand in Aracruz, ES. Twenty-five years later, the Forestry Savings Program became one of the most successful partnerships between the company and the community. Today, the company’s neighboring producers provide 30% of the supply, and cultivation of eucalyptus is the third most important agribusiness activity in Espírito Santo after coffee and livestock, and its pulp is the first exported product from the state.

The Forestry Savings Program was the way Fibria found to include rural communities and producers in its business, generating income, jobs, and value in the field. The financial engineering of the program is one of its strengths: Fibria funds forestry production of its partners, whose debts, converted into wood, are settled only at harvest periods.

The environmental appeal is another highlight, since all producers should have their properties regularized according to the rules of the Forestry Code and state laws, the program also encourages the planting of up to 3.5% of native seedlings for forest restoration.

30%
of Fibria’s wood
is supplied by neighboring producers who participate in the Forestry Savings Program

FOREST PARTNERSHIP – CONTRACTED AREAS (HA)

2013

2014

2015

Aracruz

56,755

61,080

54,800

Capão do Leão1

28,133

27,458

13,634

Jacareí2

20,508

15,436

8,029

Três Lagoas

2,657

2,656

1,813

Total

108,053

106,630

78,276 

1 Unit sold in 2012. 2 Includes Capão Bonito and Vale do Paraíba.

Investment in Infrastructure

2013

2014

2015

Aracruz

213,378

353,774

220,781

Jacareí3

720,227

1,622,632

2,737,552

Três Lagoas

1,396,489

1,357,936

4,011,421

Total

2,330,094

3,334,342

6,969,754

3 Includes Capão Bonito and Vale do Paraíba