The company in brief
Established in 1920 in Chile, CMPC produces pulp, paper, tissue, and solid wooden products, based on 665.000 ha of plantations. With sales over US$ 5 bn to 45 countries, the company is present in 8 countries in Latin America, with 17.145 employees. CMPC’s mission is to produce and sell products in a sustainable manner, adding value to both its shareholders and clients, as well as creating opportunities for personal development and growth of its employees and local communities.
Why a natural capital assessment?
Forestal Mininco, a subsidiary of CMPC, manages all the company’s forestry assets. Among its objectives, the preservation of conservation areas, with attributes of diverse ecosystem services and great value of biodiversity is of great concern. The business value CMPC derives from managing these areas was quantified as part of this natural capital assessment.
What was the Forest Products Sector Guide used for?
The guide was used to set up and carry out a natural capital assessment in the County of Empedrado, Maule Region, Chile, affected by a large rural fire in 2017. The objective of the assessment was to compare two restoration options. The first considers the forest management of the affected area with the prescriptions used before the fires occurred (scenario1), and the second considers forest management practices according to the “Protocol of Plantations” made under the “Forest Policy Council” and led by Conaf (National Service Forest of Chile), completed in July 2017 (Scenario 2). The latter includes elements of preventive silviculture, interface plans, and delimitation of protection areas in watersheds.
How did you conduct your assessment?
The assessment was based on the forest sector guide’s materiality matrix, focusing on the impacts and dependencies related to the forest production stage of the value chain. The calculation methodology to determine the values of the Natural Capital required collecting data of all the departments of the company (Establishment, Management, Harvesting, etc.). It also required a substantial bibliographical review to determine the value of the ecosystem services provided by the forest heritage. The assessment was conducted over a period of 2 months with participation of technical staff from across the company.
What were the outcomes of the assessment?
The assessment revealed that the adoption of silvicultural practices according to the forestry protocol promoted by the company (scenario 2), significantly increases the contribution of ecosystem services, water availability and atmospheric regulation through CO2 sequestration. These positive impacts derive mostly from the larger area of conservation and protection under this scenario.
Also, the preventive silviculture prescribed under scenario 2, was found to reduce the probability of fire occurrence by 50% in relation to the historical base of the last 10 years. This has significant implications on the ecosystem services, as well as the business.
The assessment also revealed that, of all management practices considered, harvesting activities – including sub-processes such as road construction and transport – had the greatest qualitative negative impact on water, soil, and biodiversity resources.
With regards to CMPC’s natural capital dependencies, the assessment revealed that the regulation of biological environment is the most affected by forestry activities.
1. CMPC will restore the area destroyed by fire based on scenario 2 and develop a communication strategy to publicize the results of the pilot project to the different areas of the company and demonstrate the importance of Natural Capital.
2. CMPC will quantify the forest sector’s contribution to ecosystem services. For this, the guide will be of great help to value the Natural Capital of all the forest heritage and the impacts and dependencies that should be considered along the chain of value.
Contact: Francisco Rodríguez –email@example.com