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The Report

Independent Assurance

ASSURANCE STATEMENT – BUREAU VERITAS

INTRODUCTION

Bureau Veritas Certification Brazil (‘Bureau Veritas’) was engaged by Fibria Celulose S.A. (‘Fibria’) to conduct an independent assessment of its Sustainability Report (hereinafter referred to as the Report).

This assessment was conducted by a multidisciplinary staff with expertise in non-financial data.

SCOPE OF WORK

The scope of this verification encompassed the Guidelines and Principles1 of the Global Reporting InitiativeTM GRI G4 (2013) for Sustainability Reports, forthe period from 1 January to 31 December 2016.

FIBRIA´S AND BUREAU VERITAS RESPONSIBILITIES

The collection, calculation and presentation of the data published in the report are Fibria’s management sole responsibility. Bureau Veritas is responsible for providing an independent opinion to the Stakeholders, pursuant to the scope of work defined in this declaration.

METHODOLOGY

The Assurance covered the following activities:

  • 1. Interviews with the personnel responsible for material issues and involved in the Report content;
  • 2. Traceability of data published, searching itssourcesand the reliability of management systems involved;
  • 3. Verification of performance data related to the principles that ensure the quality of the information, pursuant to the GRI G4 guidelines;
  • 4. On-site visits to Fibria’s Units at Aracruz (Espírito Santo State), Jacareí (São Paulo State), TrêsLagoas (MatoGrosso do Sul State) and the Central Administration office located in the city of São Paulo;
  • 5. Analysis of Fibria’s stakeholder engagement activities; and
  • 6. Evaluation of the method used to define material issues included in the Report, taking into account the sustainability context and the scope of the information published.

The level of verification adopted was Reasonable, according to the requirements of the ISAE 3000 Standard2, which were incorporated to the internal assessment protocols of Bureau Veritas.

  • 1. Materiality, Stakeholder Inclusiveness, Sustainability Context, Completeness, Balance, Comparability, Accuracy, Periodicity, Clarity, and Reliability 
  • 2. International Standard on Assurance Engagements 3000 – Assurance Engagements other than Audits or Reviews of Historical Financial Information

LIMITATIONS AND EXCLUSIONS

Excluded from the scope of this work was any assessment of information related to:(ao):

  • Activities outside the defined assessment period;
  • Statements of position (expressions of opinion, beliefs, goals, or future intentions) on the part of Fibria;
  • Economic and financial information contained in this Report which has been taken from financial statements verified by independent financial auditors;
  • Inventory of Greenhouse Gas (GHG) emissions, verified by Bureau Veritas in a different scope of work.

With regard to the verification principles of Accuracy and Reliability of Data, we clarify that our scope was limited to the data related to the thirteenmost material issues as shown in the section “About the Report”. The verification process has, given the Reasonable level, some limitations as to the identification of mistakes and omissions.

TECHNICAL OPINION

  • Fibria presents the Report based on material issues that reflect a new study on the material issues performed in 2016. This study encompassed interviews with the internal public and a stakeholders panel, aside from research conducted about the update of the themes. We point out the inclusion of two new material issues (Human Capital Management and Focus on the Customer), which were duly addressed in the Report. It is our understanding that the themes resulting from the study allow to present the impact of Fibria’s activities in a balanced manner.
  • With regard to the material issue “Innovation and Technology”, we observed some progress and studies that demonstrate the strategy of the company of investing in businesses whose ground is the policy focused on the sustainable development;
  • Fibria’s Report comprehends a complete version in electronic media, and a summarized version in hard copy, which emphasizes the narrative and the performance data associated with the material issues. In addition to that, the Report has an online Indicators Center that contains data and more deepened details of the performance of the company. Both are available on the website that features the Report 2016 (www.fibria.com.br/2016). Additionally, Fibria created infographics that faithfully represent the processes of the company.
  • The Report provides information about initiatives focused on the carbon reduction and pricing, a theme of environmental relevance on a global scale;
  • It was verified that the presentation of data about the indicator “Significant Investments Agreements and Contracts containing human rights clauses ore that underwent human right screening – HR1” does not address the contracts of project “Horizonte 2”, so that a partial result was obtained for the indicator;
  • With respect to the impacts of the forest stewardship in the communities, we found little information about the measures that were taken and the methods for monitoring the impacts applied by Fibria;
  • We found clear and accessible information on the activities of the water workgroup, which is considered a material issue in the Report;
  • The Report updates information on the expansion project Horizonte 2. We noticed positive results regarding labor accidents in the project activities;
  • Concerning the impact on human rights in the supply chain (HR11 indicator), we identified that Fibria has been developing a performance evaluation system that shall address the specific aspects of human rights more consistently;
  • Regarding the initiatives of career development, we point out the program “Rotas de Desenvolvimento” [Development Routes] with the mapping of critical functions in the forestry area, making it possible to provide better qualification for the people who shall occupy these critical functions;
  • We verified that Fibria, when presenting data about the selection of new suppliers based on environmental, social and labor criteria, implemented improvements as it presented accurate data about the year 2016 (SO9, EN32 and LA14 indicators);
  • We observed some lack of information concerning the process of engagement with the communities in the implementation of project Horizonte 2, consistent with the SO1 indicator;
  • Fibria continues to present the indicators associated with the Long Term Targets (up to 2025), providing the baseline and performance data of 2016;
  • The Report provides a satisfactory account of expectations that were generated in the previous Report. The presentation of the achievements against targets published in 2016, enables the reader to analyze the evolution of Fibria in the management of the commitments made;
  • We noticed that the recommendations made in our previous Statement were dealt with by Fibria.

RECOMMENDATIONS

  • With regard to the impacts of forest stewardship in communities, we recommend for the next Report deepening the measures taken and the methods of monitoring these impacts;
  • We recommend that Fibria includes all the significant investments agreements and contracts that contain human rights clausesore that underwent human right screening, as rendering of accounts of the HR1 indicator;
  • We recommend publication in a more detailed manner of the stakeholder engagement process of project Horizonte 2, especially with regard to the use of the “operational dialogues” tool.

CONCLUSION

Based on the Assurance that was performed, the evidence we had access to, and according to the scope of work defined in this statement, in our opinion:

  • The data and information disclosed in the Report adhere to the GRI-G4 quality and content principles;
  • The data and information disclosed in the Report are accurate and free from material errors;
  • The Report provides balanced information regarding Fibria´seconomical, social and environmental performance, based on material aspects and identified significant impacts, following the GRI-G4 methodology;
  • The Report meets the criteria set out for ‘In accordance’ reporting with the GRI-G4 at the Comprehensive level.

DECLARATION OF INDEPENDENCE AND IMPARTIALITY

Bureau Veritas Certification is an independent professional services firm specializing in Quality, Health, Safety, Socialand Environmental Management, with more than185 years’ experience in independent assessment.

Bureau Veritas has a quality management system that is certified by a third party, according to which policies and documented procedures are maintained for the compliance with ethic, professional and legal requirements.

The assessment team has no links with Fibria and the assessment is performed independently.

Bureau Veritas implemented and follows a Code of Ethics throughout its business, in order to assure that its staff preserve high ethical, integrity, objectivity, confidentiality and competence/ professional attitude standards in the performance of their activities. At the end of the assessment, a detailed report was drawn up, ensuring traceability of the process. This Report is kept as a Bureau Veritas management system record.

CONTACT

Bureau Veritas Certification is available for further clarification on www.bureauveritascertification.com.br/faleconosco.asp or by telephone (55 11) 2655-9000.

São Paulo, Brazil, March 2017.

Alexander Vervuurt
Lead Auditor; Assurance Sustainability Reports (ASR)
Bureau Veritas Certification – Brazil