Environment

 

 

» Forestry

 

In forestry, Arauco has been practicing the concept of sustainable development in all of its production activities for more than a decade. In this effort, the company has devoted substantial funds to providing its facilities state-of-the-art technologies for use to reduce environmental impacts. All of Arauco’s market pulp mills use elemental chlorine free (ECF) technology, internationally recognized as being the best available in the industry and the one causing less environmental impact.

 

All of Arauco’s forestry activities, sawmills and remanufacturing facilities have obtained ISO 14001 international environmental certification. The company’s panel and pulp mill area is now in the process of certification, and so Arauco anticipates having all of its industrial facilities in Chile certified according to ISO 14001 in 2006. In addition, the forestry plantations in Chile have achieved Certfor certification, a Chilean quality seal that has won acceptance as a world-class model in this field. Likewise, during 2005 Arauco accomplished the certification of its chain-of-custody system for a considerable number of its industrial facilities. This certification covers control and monitoring from the time of receipt of raw materials to the time of sale of the final products, thus assuring the traceability of all products. Arauco has also been a pioneer in the signing of Clean Production Agreements between companies of the sector and the authorities.

 

To be featured among Arauco’s most important environmental conservation and environmental education initiatives are the creation and management of a network of parks and areas of high environmental value in which the company carries out education plans and ecological tourism. Another important activity is the company’s environmental education program for fire prevention, aimed at school children.

 

» Fuels

 

In fuels, the subsidiary Copec has a specialized organization in charge of the development and promotion of a health, safety and environment policy that involves employees, contractors, customers and suppliers. In addition to compliance with current standards, the company applies its own controls to processes, such as effluent and waste removal, fuels transport and others.

 

Copec collaborates with the authorities and regulatory and enforcement agencies not only through the company’s compliance with standards and regulations, but also by taking an active role in the generation and adaptation of standards to new conditions as they arise.

 

At Abastible, all company LPG storage and bottling plants are submitted for evaluation on a voluntary basis to the Environmental Impact Assessment (EIA) system and are compliant with all hazardous industrial waste handling requirements and effluent discharge standards. At Abastible’s new San Vicente marine terminal, an environmental monitoring program evaluates the potential impact of port activities on the dock surroundings.

 

Meanwhile, in the Santiago Metropolitan Region the company’s stationary emission sources are compliant with the permissible emission limits and are checked periodically. In addition, Abastible continues to promote new uses for LPG in areas such as transportation, agriculture, salmon farming and ocean navigation, providing a significant contribution to decontamination and environmental protection.

 

» Fishing

 

The commercial fishing companies of the Empresas Copec holding group, Corpesca and Orizon, are constantly concerned about ensuring that their industrial operations are kept compatible with sustainability of the fishing resources and care of the marine environment.

 

Corpesca keeps up a seasonal bio-oceanographic monitoring project to track pelagic fish resources in far northern Chile’s First and Second Regions jointly with the Chilean Fishing Development Institute (IFOP). In addition, the company signed an agreement with Arturo Prat University for the performance of studies in the Loa River area and monitoring of fishing effluent at the ports where the company operates.

 

In the southern fishery zone, Orizon has implemented modern technologies of indirect drying, evaporating plants with reduced emissions, and grease trap chambers for its canning processes.

 

 

 

The conservation of Chile ‘s natural heritage depends ultimately on the country’s future generations. Acting accordingly, Arauco undertakes an ongoing commitment with forestry education. In addition, the company promotes sustainable use of forestry resources, both in Chile and internationally, and accordingly participates actively in several organizations that promote better forestry management in ways that protect the environment.

 

As a reflection of this commitment, Arauco manages 8 centers for education, research and recreation in the communities where the company carries out its activities. These projects involve approximately 1,200 hectares of native forests, lakes and parks, and include picnic areas and camping facilities.

 

 

Noteworthy among the Company’s environmental conservation and education initiatives is the management of two parks: Coyanmahuida, located in the Province of Concepción (central-southern Chile’s Eighth Region), and Oncol, situated in the Valdivia area (southern Chile’s Tenth Region). Coyanmahuida features an interactive school on forests that operates on a live basis, managed under an agreement with Universidad de Concepción. Oncol is located on company property and is set up for the use and enjoyment of the public, including tours of the park.

 

In addition, an environmental education program is carried out for the prevention of forest fires and is aimed at primary school children. This plan includes the training of monitors and the performance of guided tours for school children to the forest plantations of Arauco.

 

Arauco also participates in conservation efforts for the huemul, a local species of deer that is a national symbol of Chile and is endangered. Conservation efforts are channeled through an agreement with CODEFF Wildlife Flora and Fauna Defense Corporation, including the preservation under protected status of 13,000 hectares of additional land adjoining the existing nature reserve, i.e., an initiative that more than doubles the existing protected area.

 

 

 

The implementation of an environmental management system (EMS) is an integral part of Arauco’s environmental policy. An EMS is a management tool based on a commitment to achieve continuous improvement in all aspects of the business. It assures that environment care is present in all stages of the production process and is practiced at all levels of the organization. The environmental management standards most widely accepted internationally are ISO 14001 and ISO 9001-2000

ISO 14001:
 Certification of our forestry operations has been in place since 2001, and for our remanufacturing facilities since 2002.

ISO 9001-2000:
 Certification was obtained for four of our five market pulp mills. The remaining mill is in the process of certification.

 

Certfor is a Chilean certification standard in accordance with the local forestry reality created by Chilean domestic organizations (forestry companies, including Celulosa Arauco; Corma state wood corporation; Fundación Chile foundation; and the Chilean Government) that has been accepted as a world-class model. Forestry management according to Certfor standards became operational at Arauco in August 2003.

APL, the Chilean Clean Production Agreement:
 This agreement involves a commitment to encourage and facilitate preventive environmental management by implementing cleaner production processes. The organization in charge of evaluating performance under the APL agreement is the National Clean Production Board, an agency organized under Corfo Chilean State Development Corporation. In April 1999, Arauco was one of the first Chilean companies in the market pulp business to sign this agreement.

 

Additionally during the 2005 fiscal year, all of Arauco’s sawmills and plywood mills, in the scope of the Sustainable Forestry Management practices, certified their Chain of Custody. This implies control and monitoring from the arrival of the raw materials at the industrial facilities until the final sale of the finished product. Likewise, the Constitución and Arauco woodpulp mills accredited their effluent laboratories with the Instituto Nacional de Normalización, in accordance to the requirements of the stringent Chilean standards.