Value Chain

Fight for Land Movement

One of the most difficult conflicts in Fibria's properties has become, since 2011, a reference of value creation for the company and for society. At the time, the company needed to negotiate with the National Institute for Settlement and Agrarian Reform (INCRA) and the Landless Workers Movement (MST) the eminent domain of 11,000 hectares, distributed in five farms in the municipality of Prado, in the south of Bahia. Despite the efforts, between 2015 and 2016, groups of the Landless Workers Movement (MST) settled in lands of our unit in Aracruz, Espírito Santo.

Fibria has maintained dialogues with the national and state leaderships of the Landless Workers Movement (MST) and has entered into agreements. In Bahia, where we have the Sustainable Settlements project, no new occupation or protest was recorded. The project is moving forward, with transitions from camps to settlements.

In the first four years of conversations, Fibria and Landless Workers Movement (MST) evolved from verbal arrangements. In December 2015, forestry companies, social movements, and governments signed an agreement after strengthening of the relationship between all stakeholders.

From the beginning, the challenge has resulted in lessons learned and led to important multisector initiatives, which currently benefit several families. Check out these initiatives below.

Community Nurseries

The investment in three community nurseries located in Conceição da Barra (Espírito Santo), Ibirapuã (Bahia), and Três Lagoas (Mato Grosso do Sul) is another current example of shared value between Fibria and the population surrounding our operations. With this partnership, we purchased seedlings for our native forest restoration program and provided seeds and technical assistance to people in charge of the nurseries.

Community nurseries, which currently employ 39 families, have a total production capacity of 410,000 seedlings per year and also support supply to rural producers of the Rural Land Development Program (PDRT). These are some of the projects that help us bring the communities closer to our business through the exchange of knowledge and generation of income.

Maria Luiza Silva, Rural Land Development Program<br>producer in Três Lagoas (Mato Grosso do Sul).<br>Photo: Márcio Schimming.Maria Luiza Silva, Rural Land Development Program
producer in Três Lagoas (Mato Grosso do Sul).
Photo: Márcio Schimming.

See the case study of the NGP (New Generation Plantations) on the implementation of Fibria's community nurseries.

Alvorecer Project

The project was developed in an unprecedented partnership with the Landless Workers Movement (MST) and the Luiz de Queiroz School of Agriculture (Esalq), of the University of São Paulo (USP). The focus is the agroforestry production in an ecological system, which considers forest and agricultural aspects in forests.

In the eminent domain agreement for Fibria's five plantations, we also hired Esalq to develop a complex process for creating sustainable settlements in these areas. Keeping the people in the fields involves transitioning from camps to settlements, that is, families migrate from canvas tents, located in the occupied lands, to own housing, in their production plots.

"Yes I Can"

This is the sub-project of Alvorecer, which aims to eradicate illiteracy in these areas. It uses a Cuban methodology and has already taught more than 500 adults to read.

Preventive Health and Herbal Medicine

The Alvorecer sub-project focuses on preventive health and is carried out in partnership with Fiocruz, of Rio de Janeiro. It is a massive diagnosis task, focused of the analysis of the health conditions of the participating communities and local public health conditions. In terms of phytotherapy, as a complementary action, the project includes the creation of beds for medicinal plants.

SOCIAL INVESTIMENT

INVESTMENT IN COMMUNITIES G4 EC11
2016
Fibria¹ ³20,269,629
Incentivized Projects1,360,269
Investments made by the Votorantim Institute (own resources and resources raised via BNDES)1,950,394
Responsible Network ²17,712,618
Total41,292,911

Voluntary donations and investments of resources in the community, where beneficiaries are external to the company. Includes contributions to research institutions (not related to the company's Research and Development Department) and resources to support infrastructure projects in the community. Also includes project management costs.
1 The projects considered are Sustainable Settlements, in partnership with the MST, and investments by BNDES, among others.
2 In order to obtain the aggregate amount of the Responsible Network, the amount of investments by the Votorantim Institute, as well as for the incentivized projects informed, must be added.
3 The amounts for the projects conducted through Votorantim Institute's call for bid are considered in Fibria's investment.

Vilmar Lacerda Arantes, Rural Land Development Program<br>producer in Três Lagoas (Mato Grosso do Sul).<br>Photo: Márcio Schimming.Vilmar Lacerda Arantes, Rural Land Development Program
producer in Três Lagoas (Mato Grosso do Sul).
Photo: Márcio Schimming.