FOREST MANAGEMENT

Dexco’s Environmental, Social and Corporate Governance Policy, Corporate Standards for Responsible Forest Management, and the Forest Management Plan set the guidelines for the responsible management of our forests and fostered areas.

PO.02 Environmental, Social and Corporate Governance Policy NO.70 Corporate Standard for Responsible Forestry Management Commitment to Biodiversity Forest Management Plan 2024 CDP Forests 2024
Forest Nursery

In addition to nurseries in Brazil, Dexco keeps a nursery in the city of Barbosa, Colombia, whose purpose is to boost productivity and improve the quality of the wood used in our production process.

Genetic Breeding Program

We develop several tree clones that are better adapted to climate changes, in addition to being more productive and resistant to pests and diseases.

Our Genetic Breeding Program, created in 1969, focuses on researching and developing materials that can make our eucalyptus forests more resistant to pests and diseases, and adapt more easily to climate and rainfall conditions.

In addition to improvements intended for the production of wooden panels, we also evaluate more suitable materials to meet the demand of our Minas Gerais-based water-soluble cellulose plant in partnership with Lenzing AG, LD Celulose.

See below the four basic management concepts that guide Dexco’s operations
Minimum Tillage

Leaves and branches from previous forests are kept in the soil, providing protection, moisture retention and nutrients for the next crop.

Soil Manuring Program

Studies on soil conditions and the trees’ nutritional situation define the best manure formulas and application methods to ensure top productivity.

Fire Control

Wildfire prevention and firefighting actions to protect tree-growing and conservation areas, and the company’s employees, community, machinery, and facilities.

Pest Control

The presence of wild animals in conservation areas within Dexco’s farms contribute to the biological control of forest pests. If necessary, pesticides are applied to these areas, according to the best people and environmental safety practices.

Dexco maintains over 140,000 hectares of planted forests, predominantly with eucalyptus and pine, as well as conservation areas with native vegetation formations, on owned and leased farms in the states of São Paulo, Minas Gerais, and Rio Grande do Sul in Brazil, and the departments of Antioquia, Caldas, Tolima, and Santander in Colombia. These forests provide wood, the main raw material used in our panel factories.

Since the 1970s, we have partnered with universities and research institutes to monitor and record the biodiversity found in our forests, contributing to the development of scientific knowledge about the environment.

With the aim of strengthening the relationship between forest companies and civil society, since 2022, we have joined the São Paulo Forest Forum, where discussions and work are organized on relevant topics such as the relationship between planted forests and water, and participatory planning of sustainable landscapes using the methodology of land-use dialogues. More information about this landscape approach project can be found here.*

To assess and mitigate the social impacts related to the management activities of our planted forests, we have adopted procedures that aim to improve our relationship with the communities where we operate. In addition to maintaining areas of native vegetation, we are committed to conserving springs and watercourses in our management units, maintaining protected areas in their surroundings. We employ good soil conservation practices in the management units, avoid planting in peat areas of any depth, and do not use fire in our forest management operations. Through dialogue and awareness campaigns, we encourage our neighbors to be partners in the conservation of natural resources and the prevention of forest fires.

Recognition of our excellence in forest asset management occurred in 1995 when we became the first company in the Southern Hemisphere and the fifth in the world to obtain responsible forest management certification. Our wood panel factories in Brazil have chain of custody certification, ensuring the traceability of all the wood used in our production process, guaranteeing the use of wood from certified sources or other controlled sources in the production processes.

Forest Monitoring

Monitoring carbon, water, and nutrient flows of our planted forests over the years has ensured the sustainable development and environmental balance of areas we operate in. That is why since 2008 we have supported the cooperative program Torre de Fluxo (Flow Tower)*, run by the Forest Studies and Research Institute (IIEF, “Instituto de Pesquisas e Estudos Florestais” in Portuguese), the French Center for Agricultural Research (CIRAD), and the University of São Paulo’s Luiz de Queiroz School of Agriculture (ESALQ/USP).

In 2019, we renewed our participation it the program for another seven years.

Forestry 4.0
2023 brought a milestone with the implementation of the Integrated Control Tower, a 24-hour, real-time monitoring center for our forestry operations in São Paulo, Minas Gerais and Rio Grande do Sul.

We have been able to quickly identify support needs, such as mechanical maintenance or low light situations, enhancing safety for operators and improving the operational efficiency of equipment. Additionally, we conduct remote sensing monitoring of mature forests and optimize fertilizer usage.

High Conservation Value Areas (HCVAs)

As part of our Forest Management Plan, we classify as High Conservation Value Areas (HCVAs) places whose environmental or social values are deemed exceptional or critically important.

In these areas, we take measures to protect the identified values:

These actions contribute to preserving native vegetation and rare or endangered animal and plant species that are critically relevant to local communities and their traditions.

In 2021, we reassessed all of our certified areas based on HCVA identification criteria (categories 1 and 4), encompassing 132,774.58 hectares that span 152 farms in the states of São Paulo, Minas Gerais, and Rio Grande do Sul. The methodology and results were made available for consultation to some of our stakeholders, like universities, government agencies, researchers, and NGOs.

According to the assessment criteria and points brought up during our public consultation, the presence of an endemic amphibian species (Bokermannohyla sazimai) in the Triângulo Mineiro region, found in the Nova Ponte farm, Minas Gerais, led to that place being classified as a category 1 HCVA, spanning 32.5 hectares. Additionally, in 2023, another presence of AAVC2 was confirmed at Fazenda Vitória in the state of São Paulo, totaling 704 hectares.

In Colombia, the total AAVC was 102 hectares, and all identified areas are superficially located within the forest areas of Dexco.

Learn more about our Forestry Division

Wood Supply

Our wood panel factories in Brazil are supplied only with certified wood or wood from other controlled sources, and in our Colombian units, the supply is made with certified wood or wood registered with the ICA (Colombian Agricultural Institute). All wood used as raw materials by Dexco come from Brazil and Colombia. In 2023, 81.5% of the total wood used by Dexco as raw material had third-party forest certification.

The forests managed by Dexco provided 68.4% of the wood used as raw material by our panel factories in 2023 (70.1% in Brazil and 42.5% in Colombia).

Certification is designed to provide credible assurance that the raw material originates from well-managed forests, controlled sources, recovered materials, or a mixture of it. Certification, therefore, facilitates the transparent flow of products manufactured from such materials through the supply chain.

In 2023, we acquired wood from 113 third-party suppliers in Brazil and Colombia, both in log or chip form as well as by-products from sawmills (4 sawmills in Brazil and 85 in Colombia). These suppliers (tier 1) and subcontractors (tier 2) are located in the states of Rio Grande do Sul, São Paulo, and Minas Gerais in Brazil, and the departments of Antioquia, Tolima, Caldas, and Santander in Colombia, regions near our factories. We ensure traceability of the wood to the origin forest for 98.6% of the wood consumed in our factories, reaching 100% if we consider only the units in Brazil.

CONTROLLED WOOD

For the wood acquired from third parties (controlled) in Brazil, we have a due diligence system that assesses environmental, land, labor, tax, and social issues both from the suppliers and the supply areas. All suppliers undergo a documentary approval audit before wood acquisition, followed by field audits conducted by Dexco technicians at each supply unit in all links of the chain, until reaching the original forest of the wood. This allows us to ensure complete traceability of the raw material for our forest-based products. With these processes, we guarantee that the wood used by Dexco does not involve:

When deviations are identified in the audits, the supplier, together with Dexco, develops an action plan to correct these points.

Suspension and Exclusion Criteria

When we identify a serious deviation (e.g., absence of environmental license) or multiple minor accumulated deviations, the supplier is immediately suspended until the situation is regularized. There is no specified deadline for correcting the deviations; however, until compliance with our requirements and the fulfillment of action plans is demonstrated, wood from this supplier cannot enter our factories.

If any critical deviation (e.g., forced or child labor) or numerous minor deviations are identified, the supplier is immediately excluded and cannot supply wood to Dexco for a minimum period of 6 months. At the end of the exclusion period, the supplier needs to undergo a new approval process before being able to sell wood to Dexco again.

Monitoring

In 2023, we conducted 142 documentary and field audits, involving 32 suppliers (tier 1) and subcontractors (tier 2). As a result of these audits, 1 subcontractor was excluded due to issues related to labor documentation and occupational health and safety. We have suspended the purchase of wood from this supplier for a period of 6 months.

Forest Management Plan

The Forest Management Plan (FMP) contains guidelines and procedures for managing certified forest areas, following international standards. It constitutes an important instrument of management and dissemination, through the public summary, and can also be used for guidance, registration and training of people.

Dexco Forest Management Plan 2024

Caetex Forest Management Plan 2024*

Forest Management Plan for Forest Producers in Taquari Valley – Group 01 (License Code FSC-C165415)*

Forest Management Plan for Forest Producers in Taquari Valley – Group 02 (License Code FSC-C182779)*

Forest development program

To supply our Taquari unit in Rio Grande do Sul, we use wood sourced from our own forest areas and maintain a forest development program where local farmers can rely on our support for planting forests. In this program, we provide seedlings and technical guidance to our partners for the proper establishment of the forest, and at the end of the cycle, we have the first right to purchase the wood. In 2023, more than 12,000 hectares were cultivated with more than 40 rural producers.

In line with our Sustainability Strategy, since 2019, we have been encouraging and supporting responsible forest management certification for our partner producers. We provide technical support to comply with certification standards and offer higher prices for certified wood. In 2020, the first group achieved the recommendation for certification, and we ended 2023 with a significant increase, reaching 59.2% of the fostered areas certified.

Our goal is to reach 80% certification of the development areas by 2025. With this incentive, we enhance engagement with suppliers to minimize the risks of deforestation and adverse impacts on people and biodiversity in our value chain.

Forest Management

We aim to carry out our forest management activities responsibly and transparently, taking care of biodiversity and respecting the people living in the vicinity of our areas. We have been recognized as a global leader in corporate transparency and performance, being included in the 2022 A-List of the CDP Forests questionnaire and ranking 4th among companies in the wood and forest sector in the 2022 SPOTT (Zoological Society of London) assessment, which evaluates the level of transparency in environmental, social, and governance practices and commitments.

Click here to access our responses to the 2024 CDP Forests questionnaire.

*Documents available only in Portuguese