Forestry - Irani Papel e Embalagem S.A.

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

Around
34 thousandhectares
of land

^%42_{of the destined territory

to conservation}

certified management
by
FSC®
since 2008

We are a company with a
positive
carbon balance
we remove more carbon
from the atmosphere
than we emit

Locations of our forests

SANTA CATARINA

Our forestry base in Santa Catarina consists of 27.9 thousand hectares. It is spread across the municipalities of Água Doce, Catanduvas, Vargem Bonita, Ponte Serrada and Irani and makes up 82.7% of our forests. We have 15.6 thousand hectares of forest plantations, 14 thousand of which are pine and 1.6 thousand hectares of eucalyptus.

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RIO GRANDE DO SUL

In Rio Grande do Sul, our forest base is 5,900 hectares in total, of which 3,900 hectares are dedicated to Pinus elliottii plantations. It corresponds to 17.3% of our forests and is spread across the land around Mostardas, Tavares and São José do Norte.

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INCENTIVES FOR REFORESTATION

The Rural Partnership Program was established to encourage wood supplies locally. As part of this, Irani and the farmer make an agreement to replant a forest and at the end of the cycle, the wood harvested is divided.

In the Rural Partnership Program, the farmer provides the land to be planted and Irani plants and manages the forest until it is cleared. At the end of this cycle, the forest’s production is divided between the parties.

When considering which areas to apply the program to, we consider the distance to the plant in Vargem Bonita (SC), the topography, the previous use of the soil, whether heavy machinery would be needed to prepare the soil and access routes, how the forest is likely to grow based on the quality of the site and whether the property meets current environmental standards.

FOREST SURVEYS AND PROTECTION

The preservation of the native forests contributes to a good environmental balance and helps to control pests and diseases biologically.

BIOLOGICAL CONTROL: We have been fighting wood wasp (Sirex noctilio) biologically for more than 20 years.

We monitor for attacks by this pest and to determine the general numbers, to prevent possible damage and ensure the plantations are healthy.

FIRE PROTECTION: We conduct prevention and awareness initiatives with the local communities. We rely on the Forest Fire Brigade, who are trained and prepared to deal with likely fire fronts, and we also have an agreement with the Volunteer Fire Brigade of Irani. In 2021, we established a monitoring center to watch out for possible incipient fires and monitor the areas generally. There are two towers in Santa Catarina and two in Rio Grande do Sul, located at strategic points. These have long range cameras that can swivel 360º and a control room with a trained operator to monitor the system. The aim is to have early warning of any fires in the heart of the company’s forest or nearby, as well as to be able to monitor these areas more precisely.

Company Security: Security officers monitor company assets, prevent unauthorized activity and control access to company properties. We also work with the Environmental Military Police of Santa Catarina, to cooperate with their inspections and with environmental education initiatives within the company and in neighboring communities. Another aspect that is controlled and monitored is fishing in the reservoirs and rivers that cross Irani’s property. Fishing can be authorized upon request and visitors are registered.

IMPROVEMENTS AND INNOVATION:we have agreed partnerships with research institutions to jointly develop improvements in Forestry management and preservation, Biodiversity protection, Soils, and other areas.

We conduct and support research so that we understand better the interaction between local flora and fauna and forestry plantations, so that we can improve management methods and establish environmental management indicators.

FORESTRY PLANTATIONS

We preserve significant parts of the native forest and natural vegetation on the properties where we have forestry operations. We aim to ensure there is a balance between production areas, that are composed solely of forestry plantations.

By integrating pine and eucalyptus plantations with native forests, and using appropriate forest management processes, such as successive planting cycles, we help to preserve the biodiversity of the region. This results in better economic development; the plantations are very productive and the level of greenhouse gases – GHGs – in the atmosphere is less as carbon is sequestered in the trees.

Irani has established itself as a company with a positive carbon balance, by having a large number of forestry plantations and by conducting an inventory of Greenhouse Gas – GHG emissions. It removes more carbon from the atmosphere than it emits in its operations.

Fast-growing forestry plantations are excellent carbon sinks that play an important role in the fight against global warming.

Each hectare captures the equivalent of 29.27 metric tons of carbon per year.

THE ENVIRONMENT AND BIODIVERSITY

One of our values is Sustainability. We are a company that places value on responsible management and is committed to preserving environmental resources. About 48% of our land is composed of preserved native vegetation. These form ecological corridors between our plantations to allow fauna to pass. We maintain an additional amount of land as a registered legal reserve, maintain the RPPN and have guidelines for controlling environmental impact and monitoring biodiversity.

PRIVATE NATURAL HERITAGE RESERVE (RPPN IN PORTUGUESE)

The Private Natural Heritage Reserve (RPPN) Prof. Yara C. Nicoletti consists of 285 hectares of native forest, a remnant of the Atlantic Forest, which is typical of Araucária forest. Environmental education activities take place in the reserve at the Xaxins Ecology Trail, as well as environmental monitoring and research.

IRANI has made commitments to maintain the reserve as part of its environmental protection and stakeholder engagement initiatives.

The Sale and Purchase of Wood

Irani also supplies wood to various sectors in the regions where we maintain forests. In Santa Catarina, we mainly sell pine logs to sawmills and plywood manufacturers. In Rio Grande do Sul, we sell logs to sawmills and board manufacturers. Another way to encourage reforestation in the region is by acquiring part of the wood supply for the production of wood pulp and energy (biomass) in the regional market.

THE WOOD PURCHASING PROCESS

Our wood purchasing process is in accordance with FSC® standards.

The Wood Purchase Policy is a document that, as well as guiding our procedures, provides transparency on how we deal with environmental, social and economic issues.

WOOD PURCHASE POLICY

Irani acquires wood for the manufacture of paper, in accordance with FSC® standards. The company promises that:

1. It will not acquire illegally harvested wood;

2. It will not acquire wood that has been harvested in violation of traditional or civil rights;

3. It will not acquire wood harvested from forests that are important to conservation, which are under threat from forest management activities;

4. It will not acquire wood harvested form native forests that are being converted into plantations or being cleared for other uses;

5. It will not acquire wood from forests where genetically-modified trees have been planted.

FOREST MANAGEMENT CERTIFICATES FOR ALL OUR OWN FORESTS.

Forestry certification guarantees that the wood produced or used by the Company comes from a forest that is managed in an ecologically correct, socially just and economically viable manner, and controls all other sources.

See our certificates

Forest Management

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