Business Practices

Raw materials from controlled sources

100% of the wood used by Sonae Arauco comes from sustainable, certified or controlled sources.

We are committed to the concept of sustainable use of raw materials and actively respect this principle in all business practices. We believe in efficient value chains which are capable of stimulating investment and active forest management. We only purchase wood from sources that are sustainably managed and carefully controlled.

In this context, Sonae Arauco holds the chain of custody certification PEFC (Program for the Endorsement of Forest Certification) and FSC® (Forest Stewardship Council®) (FSC-C013589), in this case covering all industrial operations, from the two main global forest certification systems, whose mission is to promote sustainable forest management.

The company's contribution to active management of the forest includes other aspects, such as the promotion of forest certification in all geographies where it has industrial activity, as well as its involvement in promoting FSC® Portugal, as a member of the board, as well as in promoting FSC® Germany and Forest Stewardship Council® International, that Sonae Arauco joined in 2020.

We believe in efficient value chains which are capable of stimulating investments and active forest management

Circular bioeconomy model

Sonae Arauco is probably one of the best examples of a circular bioeconomy model. This is one of the pillars of the company's business model and, as such, takes place in all countries where Sonae Arauco has an industrial presence, that is, in Germany, Portugal, Spain and South Africa.

Sonae Arauco Business Practices

We Value Nature initiative from the WBCSD - World Business Council for Sustainable Development, an initiative that aims at demonstrating the importance of nature in the sustainability of the planet, leveraging its appreciation as the new normal for businesses in Europe.

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In Portugal, Sonae Arauco's case is one of the examples highlighted on the ECO.NOMIA portal from the Portuguese Government's Ministry of the Environment, a space for sharing knowledge and good practices in the transition to a circular economy model.

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Wood forms the foundation of Sonae Arauco’s value chain

Wood forms the foundation of our value chain, which starts with the use of raw materials of sustainable origin, incorporates by-products from the wood industry and, in a circular approach, closes the cycle with the reuse and recycling of the waste, which is also used in the manufacture of wood-based panels, keeping this material circulating. This is a virtuous cycle, and recycled wood can be reintegrated into the process countless times.

The production of wood-based panels at Sonae Arauco thus incorporates several of the principles of circular economics, such as:

+ Design of products that minimise waste

With the design or redesign of products that take into account a less intensive use of resources, giving priority to renewable and non-hazardous materials, as well as the integration of recovered raw materials.

+ Extension of the life cycle of materials

Optimisation of take-back, reuse and remanufacturing or recycling networks.

+ More efficient production models

Reduction in the consumption of virgin raw materials, as well as production processes that minimise waste, such as Sonae Arauco's mouldable MDF, whose 3D embossments are made without machining, therefore generating less waste and improving productivity.

+ Promotion of by-products and Upcycling

Production of new solutions using waste/by-products, focusing on upcycling (the process of converting waste into new materials or products with greater added value).

+ Improvement in energy efficiency

Continuous investment in more efficient production processes with less associated carbon emissions.

+ Awareness and social engagement

Including environmental education initiatives on the importance of forests and wood recycling, amongst other initiatives.