KODS
Progress toward Klabin Sustainable Development Goals
The Klabin Sustainable Development Goals, known as KODS (KSDGs), are environmental, social and governance commitments undertaken by the Company for the short term (2021), medium term (2025) and long term (2030). They are aligned with the United Nations Sustainable Development Goals and cover high-priority topics for the Company, as part of its strategic growth plan.
To drive the progress of these goals internally, they were integrated into a Sustainability Index, which evaluates four annual targets performances linked to the Klabin Sustainable Development Goals. The achievement of these goals represents 10% of the performance-based pay of directors, managers, coordinators and specialists. Another 10% depends on the achievement of the annual safety target, which is also part of the Klabin Sustainable Development Goals agenda.
At the Company's operational units, critical analyses of environmental indicators are conducted monthly. This process is important for identifying opportunities for improvement and designing action plans linked to annual Sustainability Index commitments. Specific indicators were also developed for each plant, considering the contribution each could make to achieving corporate targets for carbon emissions, waste management, and water usage.
The following public commitments saw progress in 2024:
WATER USE
Reduce specific industrial water consumption by 20%.
CLIMATE CHANGE
Reduce Scope 1 and 2 greenhouse gas emissions by 25% per metric ton of pulp, paper and packaging by 2025, and 49% per ton of pulp, paper and packaging by 2035.
SOCIAL AND ENVIRONMENTAL PERFORMANCE OF SUPPLIERS
100% of the units at the most advance management level of the Hearts and Minds methodology or equivalent
PRODUCTS, PARTNERSHIPS WITH VALUE CHAIN AND CIRCULARITY
Have 10 circular economy benchmarking cases in partnership with stakeholders.
SOCIAL PERFORMANCE OF SUPPLIERS
Have 100% of critical suppliers covered by Sustainable Supply Chain Management Program.
PRODUCTS, PARTNERSHIPS WITH VALUE CHAIN AND CIRCULARITY
Have 10 circular economy benchmarking cases in partnership with stakeholders.
SOCIAL PERFORMANCE OF SUPPLIERS
Have 100% of critical suppliers covered by Sustainable Supply Chain Management Program.
In 2025, the Company plans to conduct a comprehensive review of the KODS targets to assess the progress of ongoing objectives and identify which ones can be updated in terms of ambition and alignment with new regulations.
Materiality assessment
The Klabin Sustainable Development Goals are composed of 23 high-priority themes*, organized into four pillars:
Materiality assessment
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|---|---|
Building a renewable future |
- Forest yield - Wood availability - Waste management - Climate change - Water use - Energy use |
Contribution to a sustainable economy |
- Biodiversity - Forest certification - Ethical conduct and integrity - Local development - Suppliers’ social and environmental performance - Risk management - Local development and impact on communities - Production and logistics - Products, partnerships with value chain and circularity |
Prosperity for people |
- Klabin’s culture - Human capital development - Diversity - Management and engagement of professionals - Occupational health and safety |
Technology and innovation |
- Innovation management - Cybersecurity - Multiple uses for wood |
* Materiality in effect in 2024, the reporting period.
To arrive at these strategic topics, the Company evaluated its Sustainable Development Goals from the perspective of business strategy, and when determining priorities, it set targets with different timeframes. This process took place in five stages:
* This work was carried out in 2019, followed by subsequent analysis and reviews of each identified need.
The following table links the Klabin Sustainable Development Goals with the UN Sustainable Development Goals and lists indicators for each topic:
Double materiality
Double materiality
To meet global and regulatory demands, Klabin has reviewed its high-priority topics through the lens of double materiality. The double material topics for the private sector, such as Climate and Biodiversity, already have their transition plans published and established according to the standards required by the International Sustainability Standards Board (ISSB). Further information can be accessed on Klabin’s ESG Panel.
In addition, new plans in compliance with the reporting standards are due to be released in 2025, including a complete matrix of material and double-material topics.
