Our Relations

Fibria seeks to guide its practices through a shared value strategy. This means that while the company becomes more competitive, it improves the economic, social, and environmental conditions of the communities neighboring its operations.

Our efforts in this regard were recognized in 2017 in a case study by consulting firm FSG, founded by Michael Porter and Mark Kramer, professors of Harvard Business School and creators of the concept. The study analyzed four initiatives: Forest Savings Program, Rural Land Development Program (PDRT), Sustainable Forest Management model, and Local Supplier Development, the latter includes the Supplier Development Program (Prodfor), which has been in place in Aracruz (Espírito Santo state) for about 20 years, and the Advanced Supplier Qualification Program (PQF), most recently developed in Três Lagoas (Mato Grosso do Sul state).

Each of these initiatives, in addition to bringing tangible benefits to communities in the company’s area of influence, contribute positively to the business. Thus, we realized the idea of shared value, equally incorporated into other Fibria programs and initiatives that were not in the scope of the study by FSG.

In this section of the Report, we describe our relationships throughout 2017 with our key stakeholders – including our neighboring communities.

Employee Relations

Fibria understands its transformative role in society. And part of this is in the company’s relations with its various audiences. Among them are our employees. The company has been implementing a series of initiatives aimed at preparing its professionals for a high performance culture. The following are the highlights of 2017.

 

Professionals trained for the region

The Human and Organizational Development (DHO – Desenvolvimento Humano e Organizacional) area had an important role in the development of the best professionals to work at the second line in Três Lagoas, Mato Grosso do Sul state.

The company hired people preferably from the local municipality or from nearby regions, which contributed not only to economic growth, but also to the social and human development of the location, by investing in the professional qualification of its members.

In partnership with Senai and Senac, we offered more than 1.3 million man-hours of training along the expansion project of the second line of the Três Lagoas mill, surpassing the initial estimate of 900,000 man-hours. In fact, we trained more people than we would hire, resulting in skilled labor for other activities within the municipality. In all courses, we offered internships even though we knew we were going to hire fewer people than were being trained.

From left to right, Renata Beatriz Mendes Barbosa Monteiro de Campos Mocchetti, Senior Production System analyst; Cristiane Silva, area operator – Fiber Line; Milton Ricardo Machado, Occupational Safety coordinator, and Rogerio Silva De Souza, Fixed Asset Analyst, in Três Lagoas (Mato Grosso do Sul state).
Photo: Marcio Schimming

Nevertheless, the use rate was significant. In the three forest areas created to supply wood to the new production line – Água Clara, Brasilândia, and Três Lagoas, all municipalities of Mato Grosso do Sul state- the use rate of the professionals that participated in Fibria’s Forest Qualification Program ranged from 87 to 89%.

1,100 permanent jobs were created in the region, and other local companies have access to a more skilled workforce.

Respect for people

Moreover, no large lodgings were built, as is common for this type of work. The company preferred to accommodate workers in hotels, inns, leased homes, and dorms — all accredited and inspected by the company. In this way, the integration of workers in the life of Três Lagoas was encouraged, contributing to the economic dynamics of the municipality.

Fibria’s suppliers, who hired a large number of workers from outside the municipality, promised to pay their ticket home for each worker, in order to discourage them from remaining in Três Lagoas after completion of the work.

World Record

In the construction of the new pulp line in Três Lagoas, the final index reached by the Horizon 2 Project was 6.38 reportable accidents per million man-hours (MHW). This index is lower than the average registered in the OSHA-USA benchmark for similar projects in the United States of America. Despite the results, the company understands that the safety challenges are still not over, after all, as long as there is a fatal or crippling accident, we will fall short of what is expected. For this reason, we will continue to invest in our processes and in the awareness of our team regarding the value of safety and therefore, of life, at Três Lagoas and in all our operations, as we comment below.

HEALTH AND SAFETY

Fibria has managed to reduce the number of accidents in its operations year after year. Since 2011, considering the rate of frequency of reportable accidents, the number was reduced by 49.5% for the total group of approximately 21,000 own professionals and outsourced workers.

Unfortunately, this reduction was not enough to prevent us from avoiding a fatal accident in 2017, which occurred in an emergency logistics operation for the transportation of pulp from Três Lagoas. The destination of this operation, which is not part of our logistics routine, was the port of Santos, and was necessary due to the temporary interruption of railroad activities. In order to increase safety management, in 2017 we began a safety culture diagnosis using as a guide the “Hearts and Minds” methodology from the Shell Institute to map and assess leadership and operational behavior from an occupational health and safety standpoint.

The diagnostic was initiated by the industrial unit in Aracruz (Espírito Santo state) and extended to Jacareí (São Paulo state); the unit in Três Lagoas (Mato Grosso do Sul state) will be evaluated in 2018. The work focuses on qualitative aspects in OHS management and should result in an action plan focused on the correction of undesirable behaviors.

For more information, visit the Indicators Center.

Diogo Belmiro de Paiva, at the wood chip production, in Capão Bonito (São Paulo state)
Photo: Marcio Schimming

Consolidated Forest – Accidents per million km driven in wood transport

OUTSOURCING

At the end of 2017, just over 5,000 own employees and 13,000 outsourced workers worked at Fibria, hired according to labor legislation by companies operating mainly in the forestry operation, chosen by the company in rigorous selection processes.

In order to overcome the challenges of worker engagement and motivation in work safety matters and other aspects, Fibria makes no distinction between its own employees and outsourced workers. Any accident with our outsourced workers is considered a company accident and handled in the same way in terms of investigation and accountability – even affecting the annual performance goals of the managers involved.

Fibria believes that outsourcing is a good alternative when it doesn’t result in precarious work and is consistent with the laws of the country. Therefore, labor-intensive suppliers in Fibria operations are monitored concerning the diligent fulfillment of their ancillary obligations. Additionally, we maintain ongoing dialogue with the authorities in order to contribute our opinion and experience to this aspect.

Direct jobs 2015 2016 2017
Own jobs 3,929 4,224 5,009
Permanent outsourced workers 12,809 13,654 13,335
Total 16,738 17,878 18,344

DEVELOPMENT ROUTES

The Development Routes are part of a program that Fibria has had in place over the last two years to prepare people to fill critical positions, with a high impact on the business, for which it is difficult to find qualified candidates on the market. What makes it different from conventional programs is its emphasis on training experiences that streamline readiness of the professionals.

The person chosen to join the program follows an individual development plan that seeks to offer experiences that we deem most important for the best performance in the proposed position. In order to design the training routes, interviews and in-depth surveys were carried out with managers and employees who have already had or presently hold critical positions and have had the best performance in that position.

In 2017, we worked on putting together Industrial Development Routes, geared toward the company’s industrial operations. At the same time, we made progress in implementing the Forest Development Routes, a pioneering program launched in 2016 for employees linked to Fibria’s forestry operation. People assessed under the program took steps in their careers and took on new positions in 2017.

First Leadership

The First Leadership Program develops managers in the initial level of leadership at Fibria (coordinators, supervisors, and technicians in management positions). Through the program, professionals discuss leadership issues, developing a greater critical sense for decision-making.

About 546 professionals

have gone through the First Leadership program since it began in 2013.

Fibria invested BRL7.38 million

in training and development in 2017 (including all its operations and units)

Sucession

Executive Performance Management is an integrated people management process, where all leaders evaluate all professionals in annual cycles through a Committee. Consultants, coordinators, managers, and general managers are assessed in this process.

The committee discusses the performance of the professionals and potential successors for the organization, enabling richer and more comprehensive feedback, as well as providing the guidelines for actions toward professional development.

In 2017, 512 professionals

corresponding to 100% of the eligible audience, were evaluated by the committee. The following table shows the percentage of employees who receive regular performance and career development appraisal, broken down by gender and employment category.

This work is used as basis for the succession plan for all executive positions within the organization. Mapping identifies which positions could be occupied by potential professionals assessed by the committee, and evaluates their readiness for the position.

With this, we plan to offer these professionals a clear career path for development. We further evaluate possible movements within the company, the availability for succession in the market, and the risk of losing our potential talents.

For operational and administrative professionals (technicians, assistants, analysts), the evaluation cycle is two years, between the manager and his or her team. The evaluation includes feedback on strengths and points to be developed.

Percentage of employees who receive regular performance and career development appraisal, broken down by gender and employment category
PERCENTUAL 2015 – 2016 Cycle 2017 -2018 Cycle1
Category Men Women Men Women
Operational1 73 65 23 19
Administration1 79 87 45 50
1. Data from December/2017

For more information, see the full indicator in the Indicators Center

PROSSEGUIR PROGRAM

Fibria understands how delicate a career transition can be in people’s lives. Therefore, the company developed the Prosseguir (Proceed) Program, which allows professionals to make a planned transition in their career, promoting a reflection on how to proceed after retirement. Three groups have completed since the beginning of the program, one in Jacareí (São Paulo state) in 2014, and two in Aracruz (Espírito Santo state) in 2016 and 2017.

REMUNERATION AND BENEFITS

Fibria’s salary and benefits structure reflects the standards used in the industry and in companies whose remuneration programs are well regarded. We analyze the best practices of this group of companies and conduct annual studies to ensure the competitiveness of our programs. As part of the annual cycle, salary readjustments and bonus recommendations are directly related to employee performance and their contribution to company results.

Ratio of remuneration within the company 2015 2016 2017
Ratio of the annual total compensation for the organization’s highest-paid individual to the median annual total compensation for all employees (excluding the highest-paid individual) in Brazil 55.4 54.2 55.0
Ratio of the percentage increase in annual total compensation for the organization’s highest-paid individual to the median percentage increase in annual total compensation for all employees (excluding the highest-paid individual) in Brazil 1.5 1.2 1.1
Ratio between remuneration of women to men in each employment category1 2015 2016 2017
Executive Board2
Management 75.0 102.8 104.4
Consultants and Coordinators3 85.0 96.6 94.5
Administration 69.0 92.4 102.1
Operational 38.0 52.2 84.1
1 Rounded numbers.
2 Since there is only one Female Director, this figure is not reported.
3 Includes professionals at Coordination level.
Ratio between salaries and remuneration of women to men in each employment category1 2015 2016 2017
Executive Board2 0,0
Management 99.2 107.0 107.2
Consultants and Coordinators3 92.8 94.9 93.3
Administration 92.7 95.6 103.4
Operational 86.1 81.4 85.6
1 Rounded numbers.
2 Since there is only one Female Director, this figure is not reported.
3 Includes professionals at Coordination level.

For more information, see the remuneration indicators in the Indicators Center