Forestry

VALUE CHAIN

CONTROL OF THE ENTIRE PROCESS

Forests are the essence of our business. Through FSC® certified management since 2008 and environmental licenses issued by the appropriate authorities, we have a guarantee that the operations are adequate, preserving the biodiversity and respecting both the workforce and the surrounding communities.

Highlights of the forestry business

more than
45 thousandhectares
of land

certified management
by
FSC®
since 2008

more than
3thousand
hectaresplanted by the
Forestry
Partners
Program

Carbon
neutral
company
removing more
carbon than
it emits

Locations of our forests

SANTA CATARINA

Distributed in the municipalities of Água Doce, Catanduvas, Irani, Ponte Serrada and Vargem Bonita, they correspond to 65%
of our forests.

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RIO GRANDE DO SUL

Distributed in the municipalities of Balneário Pinhal, Cidreira, Mostardas, Tavares and São José do Norte,
they correspond to 35%
of our forests.

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REFORESTATION INCENTIVE

The Rural Partnership Program benefits the population around the factory in Vargem Bonita (SC), generating employment and contributing to the region’s growth.

We maintain 3,230 hectares planted in partnership with 66 owners in a number of municipalities of the region.

In the Rural Partnership Program, the farmer offers land for cultivation and Irani plants and cares for the forest until cutting. At the end of the rotation period, the forest production is divided between the parties.

At the time of the choice of areas, we take into account the distance to the factory in Vargem Bonita (SC), the topography, the previous use of the soil, the need to use heavy machinery for soil preparation and access, the expected forest development, according to the quality of the site, and suitability of the property to the current environmental standards.

FORESTRY RESEARCH AND PROTECTION

The conservation of native forests contributes to the balance of the environment and helps in the biological control of pests and diseases.

BIOLOGICAL CONTROL: for more than 20 years we have been combating wood wasps (Sirex noctilio) through biological controls. We monitor outbreaks and the parasitism rate, preventing possible damages, besides maintaining the health of the plantations.

FIRE PROTECTION: We have developed preventive and conscientious programs in the communities near our forested areas and we have teams and covenants in place to combat eventual fire occurrences.

ASSET SURVEILLANCE: wardens live on the farms and monitor the assets and control predatory actions against fauna and flora and visitor access. We also have entered into a partnership with the Environmental Military Police of Santa Catarina, involving joint cooperation in environmental inspections and education in the Company’s areas. Another control and patrolling measure is a procedure for fishing in the reservoirs and rivers that run through Irani’s properties: fishing is authorized by means of visitor permits.

IMPROVEMENTS AND INNOVATION: We have established partnerships with research institutions to develop joint activities in Forest Improvement, Protection and Management, Biodiversity Conservation, Soils, among others. We plan and support research that has the potential to generate greater knowledge about the interaction between local flora and fauna and planted forests, aiming at improving management methods and define environmental management indicators.

PLANTED FORESTS

We maintain significant areas of typical native forests and natural formations on our forestlands, ensuring the balance between the production areas, comprised solely of planted forests.

The integrated production of the planted Pinus and Eucalyptus forests with native forests, through suitable forestry management processes and successive planting cycles, contributes to the preservation of biodiversity, generates economic development owing to the high productivity of planted forests and reduces greenhouse gas (GHG) emission levels into the atmosphere, through carbon sequestration.

Because it owns many planted forests, Irani has become a Carbon Neutral company as a result of a GHG inventory, removing more carbon from the atmosphere than it emits. Considered true carbon sinks, fast-growing planted forests play an important role in the fight against global warming.

Each hectare captures approximately 27 tons of carbon per year.

WOOD SALES AND PURCHASES

Irani also sells wood to supply various market segments in the regions where its forests are located. In Santa Catarina, we mainly sell Pinus logs for the sawmill and plywood segments. In Rio Grande do Sul, we sell loglets and logs for the sawmill and panel segments. Another way to promote reforestation in the region is through the acquisition of part of the wood supply for the production of pulp and energy (biomass) in the regional market.

WOOD PURCHASE PROCESS

Our timber procurement process is based on supplier risk analyses conducted by professionals trained for this purpose.
In order to comply with the FSC® chain of custody certification for the Paper and Packaging units, the origin of the wood used in the pulp process, when not certified, must take into account the five basic principles based on the FSC® standards, presented in our Wood Purchase policy statement.

Through a questionnaire accompanied by evidence (documents, declarations of investiture, legal opinions, etc.) and a field visit, Irani evaluates the risk conditions and prospect of making purchases from the supplier.

The Wood Purchase Policy is the instrument that, in addition to orienting procedures, assures that the decisions are transparent regarding compliance with environmental, social and economic issues.

WOOD PURCHASE POLICY

Irani acquires wood and pine chips for the Kraft pulp and chemical-mechanical pulp processes and implements efforts to avoid purchases of these products from controversial sources, based on the FSC® standards. The company commits itself to:

1. Not purchase illegally harvested wood;

2. Not purchase wood harvested in violation of traditional and civil rights;

3. Not purchase wood extracted from forests where high conservation values are threatened by forest management activities;

4. Not purchase wood extracted from native forests that are being converted into plantations or for non-forest use;

5. Not purchase wood from forests where genetically modified trees are planted.

Here we start our business: planting forests, preserving biodiversity and the environment and sequestering carbon from the atmosphere.