GRI Index
| GRI Indicators | Reply | |
| 1. Strategy and Analysis | ||
| 1.1 | Statement from the most senior decision-maker about the relevance of sustainability to the organization | Message from the CEO |
| 1.2 | Description of key impacts, risks and opportunities | Our targets for 2013; Risk management; Outlook on sustainability; Our business; Major certifications; Environmental responsibility; Stewardship; Clients; Professionals; Community; Suppliers and service-providers; Representative organizations and the government |
| 2. Organizational profile | ||
| 2.1 | Name of organization | Home |
| 2.2 | Primary brands, products and/or services | Major brands and products |
| 2.3 | Operational structure, including main divisions, operating companies, subsidiaries and joint ventures | Organizational profile; Geographical distribution |
| 2.4 | Location of organization's headquarters | Organizational profile |
| 2.5 | Number and names of countries in which organization operates | Organizational profile; Geographical distribution |
| 2.6 | Nature of ownership and legal form | In Brazil, International Paper is a private limited company. |
| 2.7 | Markets served (including geographic breakdown, sectors served and types of customers/beneficiaries) | Organizational profile; Geographical distribution; Major brands and products |
| 2.8 | Scale of the organization | Number of employees: Professionals
Net sales: US$1.13 billion Financial and operational management Total capitalization: International Paper in Brazil is a limited liability company and therefore does not recognize or disclose its total capitalization. This financial indicator is disclosed by the parent company for the group. Number of products or services offered: Major brands and products Total assets: International Paper in Brazil is a limited liability company and therefore does not recognize or disclose its total assets. This financial indicator is disclosed by the parent company for the group. |
| 2.9 | Significant changes during the reporting period regarding size, structure or ownership | Organizational structure |
| 2.10 | Awards received during the reporting period | Awards and recognition |
| 3. Report Parameters | ||
| Report Profile | ||
| 3.1 | Reporting period | About the report |
| 3.2 | Date of most recent previous report | The most recent previous report was published in 2012, covering the company's performance in 2011. |
| 3.3 | Reporting cycle | International Paper has published its sustainability reports annually |
| 3.4 | Contact details | About the report |
| Report Scope and Boundary | ||
| 3.5 | Process for defining report content | Determination of materiality: About the report Prioritization of topics in the report: all of the five main topics selected by the stakeholders are dealt with throughout this report. About the report Identification of which stakeholders the organization hopes will make use of the report: International Paper in Brazil will publish this report in print and electronic versions. All stakeholders involved in the consultation process to determine materiality will be informed by email of its availability. In addition to the printed and on-line versions, employees will have access to a version on the company’s intranet. Printed copies of the report will be sent to strategic stakeholders, but any interested party can request a copy via the contact number on About the report. International Paper therefore expects all its stakeholders to make use of this report. Explanation of how the company applied the GRI guidelines to defining the content of this report and the related principles: International Paper in Brazil followed the GRI guidelines when defining the content of this report, including materiality, stakeholder inclusion and the context of sustainability. Part of this process is described on About the report. Coverage of the topics and indicators reflects significant social, economic and environmental impacts and allows stakeholders to evaluate the company’s performance during the period. The company adopted all the principles recommended by the GRI. Basic application level B content is included throughout, in line with the adopted methodology. |
| 3.6 | Boundary of the report | International Paper followed GRI guidelines when determining the boundary of the report. Content includes information on the forestry and industrial installations controlled by IP Latin America (Organizational profile). It also contains information on service providers operating on the premises of the Mogi Guaçu, Luiz Antônio and Três Lagoas industrial units and in the forestry fostering and partnering areas (Suppliers and service-providers). |
| 3.7 | State any specific limitations on the scope or boundary of the report | About the report None. |
| 3.8 | Basis for reporting on joint ventures, subsidiaries, leased facilities, outsourced operations and other entities | About the report |
| 3.9 | Data measurement techniques and the bases of calculations, including assumptions and techniques underlying estimations applied to the compilation of the indicators and other information in the report | About the report |
| 3.10 | Explanation of the effect of any re-statements of information provided in earlier reports | There is no re-statement of the information supplied in earlier reports. |
| 3.11 | Significant changes from previous reporting periods in the scope, boundary or measurement methods applied in the report | About the report |
| GRI Content Index | ||
| 3.12 | Table identifying the location of standard disclosures in the report | GRI index |
| Assurance | ||
| 3.13 | External assurance of information | External assurance was not sought in view of the need for IP to structure the reporting process in the format required by the GRI. |
| 4. Governance, Commitments and Engagement | ||
| 4.1 | Structure of Governance | Governance; Organizational structure |
| 4.2 | Indication Chair of the highest Governance body is also an executive officer | Governance; Organizational structure |
| 4.3 | For organizations that have a unitary board structure, statement of the number of independent or non-executive members of the highest governing body | Governance; Organizational structure |
| 4.4 | Mechanisms for shareholders and employees to provide recommendations or direction to the highest Governance body | Professionals |
| 4.5 | Linkage between compensation for members of the highest Governance body, senior managers and executives, and the organization's performance | Every year the members of the Board of Directors and other executives define their objectives with their leader and, should any changes occur during the period, the necessary revisions are made. At the end of the year, an evaluation is carried out together with the leader to assess whether the targets defined have been achieved, exceeded or have not been achieved. Based on the result, the leader defines the percentage of bonus (MIP) to be received by the executive, in accordance with the rule below: The value of the MIP target is based on a percentage of the median annual salary for the Position Level and is adjusted by overall performance and individual performance. Overall performance uses Free Cash Flow = EBITDA - Taxes +/- variation in fixed asset working capital. For individual performance, the CSA rating is used. |
| 4.6 | Processes in place for the highest Governance body to ensure conflicts of interest are avoided | Governance
Principles of Corporate Governance http://www.internationalpaper.com/documents/EN/Governance/CorporateGovernanceGuidelines.pdf |
| 4.7 | Process for determining the qualifications and expertise of the members of the highest Governance body to define the organization's strategy on questions regarding economic, environmental and social issues | Principles of Corporate Governance http://www.internationalpaper.com/documents/EN/Governance/CorporateGovernanceGuidelines.pdf Criteria for Qualification of Directors: http://www.internationalpaper.com/documents/EN/Governance/Director_Qualifacati.pdf |
| 4.8 | Statements of mission and values, codes of conduct and internal principles relevant to economic, environmental and social performance and the status of their implementation | Vision, Mission and Values; Major brands and products; Governance; Organizational structure |
| 4.9 | Procedures of the highest Governance body for overseeing the organization’s identification and management of economic, environmental, and social performance | Governance; Organizational structure; Representative organizations and the government Board Committees http://www.internationalpaper.com/BRAZIL/PT/Company/Leadership/BoardCommittees.html |
| 4.10 | Processes for evaluating the highest Governance body's own performance, particularly with respect to economic, environmental and social performance | Principles of Corporate Governance: http://www.internationalpaper.com/documents/EN/Governance/CorporateGovernanceGuidelines.pdf Criteria for Qualification of Directors: http://www.internationalpaper.com/documents/EN/Governance/Director_Qualifacati.pdf |
| 4.11 | Explanation of whether and how the precautionary approach is applied | IP has not taken a formal stand with regard to the Precautionary Approach, however it complies with all legislation that includes this approach and that is pertinent to its activities, operations and products. |
| 4.12 | Externally developed economic, environmental, and social charters, principles, or other initiatives of an economic, environmental and social nature to which the organization subscribes or endorses. | Governance; Representative organizations and the government |
| 4.13 | Memberships in associations and/or national/international advocacy organizations in which the organization: has positions in corporate Governance bodies; participates in projects or committees; provides substantive funding beyond routine membership dues; views its membership as strategic |
Governance; Representative organizations and the government |
| 4.14 | List of stakeholder groups engaged by the organization | About the report; Clients; Professionals; Community; Suppliers and service-providers; Representative organizations and the government |
| 4.15 | Basis for identification and selection of stakeholders with whom to engage | Clients |
| 4.16 | Approaches to stakeholder engagement, including frequency of engagement by type and by stakeholder group | About the report; Clients; Professionals; Community; Suppliers and service-providers; Representative organizations and the government; |
| 4.17 | Key topics and concerns that have been raised through stakeholder engagement, and measures of response adopted |
About the report; Clients; Professionals; Community; Suppliers and service-providers; Representative organizations and the government; |
| 5. Management Approach and Performance Indicators | ||
| ECONOMIC | ||
| Aspect: Economic Performance | ||
| EC1 | Direct economic value generated and distributed | Financial and operational management; Community |
| EC3 | Coverage of the organization's defined benefit plan obligations | Professionals |
| Aspect: Market Presence | ||
| EC5 | Range of ratios of entry level wage compared to local minimum wage at significant locations of operation | Professionals |
| EC6 | Policy, practices, and proportion of spending on locally-based suppliers at significant locations of operation. | Suppliers and service-providers |
| EC7 | Procedures for local hiring and proportion of senior management hired from the local Community at significant locations of operation | International Paper does not have a formal policy for hiring locally based Professionals ("local" means each of the regions where operations are located). In spite of this, at most of the units, there was a high proportion of senior management employees from the local communities in 2012. For the Luiz Antônio unit, this figure was 100%. At both Mogi Guaçu and Ipex, it was 88%. In the corporate area, the proportion was 82%, while in the Forestry Division and at the Três Lagoas unit, the ratio was 44% and 17%, respectively. At the Distribution Center, where there was only one non-senior management employee, it was 0%. The ratio was calculated using the total number of locally hired senior management employees divided by the total number of senior management employees. The term "senior management" refers to directors and managers in general. |
| Aspect: Indirect Economic Impacts | ||
| EC8 | Development and impact of infrastructure investments and services provided primarily for public benefit through commercial, in kind, or pro bono engagement | Stewardship |
| EC9 | Identification and description of significant indirect economic impacts, including the extent of impacts | Community |
| ENVIRONMENTAL | ||
| Aspect: Materials | ||
| EN1 | Materials used by weight or volume | Stewardship |
| EN2 | Percentage of materials used that come from recycling | Stewardship |
| Aspect: Energy | ||
| EN3 | Direct energy consumption by primary energy source | Stewardship |
| EN4 | Indirect energy consumption by primary energy source | Stewardship |
| EN5 | Energy saved due to conservation and efficiency improvements | Stewardship |
| Aspect: Water | ||
| EN8 | Total water withdrawal by source | Stewardship |
| EN9 | Water sources significantly affected by water withdrawal | Stewardship |
| EN10 | Percentage and total volume of water recycled and reused | Stewardship |
| Aspect: Biodiversity | ||
| EN11 | Location and size of land owned, leased or managed in, or adjacent to, protected areas and areas of high biodiversity value outside protected areas. | Stewardship |
| EN12 | Description of significant impacts of activities, products, and services on biodiversity in protected areas and areas of high biodiversity value outside protected areas | Stewardship |
| EN13 | Habitats protected or restored | Stewardship |
| EN14 | Strategies, current actions, and future plans for managing impacts on biodiversity | Stewardship |
| EN15 | Number of IUCN Red List species and national conservation list species with habitats in areas affected by operations, by level of extinction risk | Stewardship |
| Aspect: Emissions, Effluents and Waste | ||
| EN16 | Total direct and indirect greenhouse gas emissions, by weight | Stewardship |
| EN18 | Initiatives to reduce greenhouse gas emissions and reductions achieved | Major certifications; Stewardship |
| EN20 | NO, SO and other significant air emissions by type and weight | Stewardship |
| EN21 | Total water discharge by quality and destination | Stewardship |
| EN22 | Total weight of waste by type and disposal method | Stewardship |
| EN24 | Weight of transported, imported, exported, or treated waste deemed hazardous under the terms of the Basel Convention Annex I, II, III, and VIII, and percentage of transported waste shipped internationally |
Stewardship |
| Aspect: Products and Services | ||
| EN26 | Initiatives to mitigate environmental impacts of products and services and extent of impact mitigation | Environmental responsibility |
| Aspect: Compliance | ||
| EN28 | Monetary value of significant fines and total number of non-monetary sanctions for non-compliance with environmental laws and regulations | In 2012 the Três Lagoas Mill received Infringement Notice n° 710963 from Ibama, resulting in a fine of R$70,000. The infringement notice was allegedly served due to incorrect information given to Ibama's official system - the Federal Technical Register. The company had been reported as a "non-profit entity" between 2001 and 2007. The company presented its defence and is awaiting the results of the environmental agency's analysis. |
| LABOR PRACTICES AND DECENT WORK | ||
| Aspect: Employment | ||
| LA1 | Total workforce by employment type, employment contract, and region | Professionals |
| LA2 | Total number and rate of employee turnover by age group, gender and region | Professionals |
| LA3 | Benefits offered to full-time employees that are not offered to temporary or part-time employees, by significant locations of operation | Professionals |
| Aspect: Labor/Management Relations | ||
| LA4 | Percentage of employees covered by collective bargaining agreements | Professionals |
| LA5 | Minimum notice period regarding operational changes, including whether this procedure is specified in collective agreements | There is no specific procedure for the minimum notice period for notifying collaborators about operational changes. The demands are analyzed by the Communication department. |
| Aspect: Occupational Health and Safety | ||
| LA6 | Percentage of employees represented in formal joint management–worker health and safety committees that help monitor and advise on occupational health and safety programs | Professionals |
| LA7 | Rates of injury, occupational diseases, lost days, absenteeism and work-related fatalities, by region | Professionals |
| LA8 | Education, training, counseling, prevention, and risk-control programs in place to assist employees, their families, or Community members regarding serious diseases | Professionals |
| LA9 | Health and safety topics covered in formal agreements with trade unions | Professionals |
| Aspect: Training and Education | ||
| LA10 | Average hours of training per year per employee, by employee category | Professionals |
| LA11 | Programs for skills management and lifelong learning that support the continued employability of employees and assist them in managing career endings | Professionals |
| LA12 | Percentage of employees receiving regular performance and career development reviews | Professionals |
| Aspect: Diversity and Equal Opportunity | ||
| LA13 | Composition of corporate Governance bodies and breakdown of employees per employee category according to gender, age group, minority group membership, and other indicators of diversity |
Professionals |
| LA14 | Ratio of basic salary of men to women by employee category | Professionals |
| HUMAN RIGHTS | ||
| Aspect: Non-discrimination | ||
| HR4 | Total number of incidents of discrimination and corrective actions taken | In 2012 International Paper received a labor-related complaint and an accusation on the Helpline relating to Ethics in this sense. With regard to the labor complaint, the company lawyers interviewed the people and witnesses and all of them denied the existence of discrimination. A ruling for this case is pending. As for the accusation, the Ethics Committee analyze and investigated the case and was unable to prove the allegation. The case was closed. In 2011 there were no incidents of this kind. In 2010, a labor suit was dismissed by the court. |
| Aspect: Freedom of Association and Collective Bargaining | ||
| HR5 | Operations identified in which the right to exercise freedom of association and collective bargaining may at significant risk, and actions taken to support these rights | In Brazil the right to freedom of association and collective bargaining is upheld by the law and embraced by IP Latin America. |
| Aspect: Child Labor | ||
| HR6 | Operations identified as having significant risk for incidents of child labor and measures taken to contribute to the abolition of child labor | IP Latin America fully respects the Consolidation of Labor Laws (“CLT”) in questions of child labor and slave labor. In addition, its Code of Ethics reinforces the position that it will not tolerate any verbal or physical act or behavior that may cause or result in violence. |
| Aspect: Forced Labor and Compulsory Labor | ||
| HR7 | Operations identified as having significant risk for incidents of forced or compulsory labor and measures taken to contribute to the elimination of compulsory labor | IP Latin America fully respects the Consolidation of Labor Laws (“CLT”) in questions of child labor and slave labor. In addition, its Code of Ethics reinforces the position that it will not tolerate any verbal or physical act or behavior that may cause or result in violence. |
| Aspect: Security Practices | ||
| HR8 | Percentage of security personnel trained in the organization’s policies or procedures concerning aspects of human rights that are relevant to operations | IP Latin America's property security team consists of two direct employees who are in charge of management and planning, and 76 outsourced employees who work at the industrial and forestry units. All service providers in the security department receive training every two years which addresses topics such as human relations and the Brazilian penal code, in accordance with Brazilian legislation. Training is also given in the areas of occupational and environmental health and safety. There were some changes to the calculations used to report this indicator, in relation to 2010 and 2011. In contrast to what was shown in previous years, the Mogi Guaçu unit does not have a directly employed full-time property security professional. At Luiz Antônio, in previous years the manager of the outsourced contract (administrative supervisor) was included in the calculation as a directly employed property security employee. However, this professional is now in charge of all the contracts under his management, and not only of this area. There were no alterations to the calculations for the Três Lagoas unit or the Forestry Division. |
| SOCIETY | ||
| Aspect: Community | ||
| SO1 | Nature, scope and efficacy of any programs and practices instituted to evaluate and generate the impacts of operations in communities, including entry, operation and exit. | Community |
| Aspect: Anti-corruption | ||
| SO3 | Percentage of employees trained in the organization's anti-corruption policies and procedures. | Governance |
| Aspect: Public Policy | ||
| SO5 | Public policy positions and participation in public policy development and lobbying | Representative organizations and the government |
| SO6 | Total value of financial and in-kind contributions to political parties, politicians or related institutions, by country. | In accordance with general company practice, IP does not contribute financially to political parties or related institutions. |
| Aspect: Anticompetitive Behavior | ||
| SO7 | Total number of legal actions for anticompetitive behavior, anti-trust, and monopoly practices and their outcomes | IP Latin America had two pending suits related to unfair competition during the reporting period for this Report. The company did not have any suits of this type relating to anti-trust behaviour or to monopoly. |
| PRODUCT RESPONSIBILITY | ||
| Aspect: Customer Health and Safety | ||
| PR1 | Life cycle stages in which health and safety impacts of products and services are assessed for improvement, and percentage of significant products and services categories subject to such procedures |
Clients |
| Aspect: Product and Service Labeling | ||
| PR3 | Type of product and service information required by labeling procedures, and percentage of products and services subject to such information requirements | Clients |
| PR4 | Total number of incidents of non-compliance with regulations and voluntary codes concerning product and service information and labeling, by type of outcome | Clients |
| PR5 | Practices related to customer satisfaction including results of surveys measuring such satisfaction | Clients |
| Aspect: Marketing Communications | ||
| PR6 | Programs for adherence to laws, standards, and voluntary codes related to marketing communications, including advertising, promotion, and sponsorship | Clients |
| PR7 | Total number of incidents of non-compliance with regulations and voluntary codes concerning marketing communications, including advertising, promotion and sponsorship, by type of outcome | In this reporting period, IP Latin America recorded no cases of non-compliance with regulations and voluntary codes for marketing, including advertising, promotion and sponsorship. |
| Aspect: Customer Privacy | ||
| PR8 | Total number of substantiated complaints regarding breaches of privacy and loss of customer data | In this reporting period, there were no complaints against IP Latin America for breach of privacy or loss of customer data. |
| Aspect: Compliance | ||
| PR9 | Monetary value of significant fines for non-compliance with laws and regulations concerning the supply and use of products and services | In 2012 International Paper did not receive any significant fines or non-monetary sanctions due to non-compliance with laws and regulations concerning the supply and use of products and services. |