Investor Presentaiton

36 STRATEGY AND PERFORMANCE ELDORADO BRASIL 2016 SUSTAINABILITY REPORT 37 ENVIRONMENTAL PERFORMANCE (G4-EC2) Eldorado's business success is directly linked with environmen- tal care and preservation. Having ended 2016 with 239,000 hectares planted, the company recognizes that the extension of its activities goes far beyond this area. For this reason, it acts as the guardian of adjacent preservation and legal reservation areas and ensures ap- propriate soil use. The eucalyptus trees are planted in anthropized areas that have previously been used as pasture. The company also invests in lead- ing edge technology to continuous- ly improve its productivity rates, driving higher and higher volumes of eucalyptus pulp per hectare planted. Currently, the major environmental risk that could affect business con- tinuity for Eldorado is the occur- rence of long periods of drought, which could have a significant impact on the production process, highly dependent on the availabil- ity of water. Through responsible management practices, which include preven- tive and mitigation strategies, the company makes every effort to en- hance its activities and processes and ensure the maintenance of natural resources. The withdrawal and devolution of water are com- pliant with all the limits estab- lished by the competent authori- ties, and the Três Lagoas industrial plant is self-sufficient in green energy. Moreover, Eldorado has implanted processes that moni- tor and seek to reduce the plant's emission levels and other impacts related to different stages of the business, such as timber and pulp transportation. Managing water resources (G4-EN8 e G4-EN10) To enable industrial processes at the Três Lagoas plant, Eldorado withdraws water from the River Paraná, which basin presents a high biodiversity value and is widely used for fishing, tourism and leisure activities by communities in the region and by visitors. The average flow rate of the River Rio Paraná is more than 4,000 times greater than the volume withdrawn by the com- pany, as established by the permit from the Brazilian water authority ANA (National Water Agency). In practice, the volume withdrawn by the company is 0.025% of the water body's average flow rate. At times of drought, this may increase to 0.087%, which still does not affect other users of the basin. In 2016, the total volume of water consumed by the company, count- ing surface and ground water (the Periodic monitoring Fully committed to maintaining the quality of water resources, every two months Eldorado monitors the quality of surface water and aquatic communities at six points around the Três Lagoas plant, in accordance with a specific resolution issued by the national environment council CONAMA. The company also participates in the PROMAB water basin monitoring and modeling cooperative program, a partnership between the Instituto de Pesquisas e Estudos Florestais (IPEF, Forestry Studies and Research Institute) and the Forestry Hydrology Laboratory (LHF) of the Forestry Sciences Department of ESALQ/University of São Paulo. The quantitative and qualitative monitoring has been in place since the second half of 2016 at the Barraca farm in the town of Inocência (MS). The objective is to analyze the effects of forestry stewardship on water resources, taking into account the water balance in the micro-basin, physical and chemical variables, as well as rainfall and flow rates. nursery in Andradina/SP), was the lowest since 2014. In the comparison with 2015, there was a 5.3% reduction in water con- sumption in spite of the increase in pulp production volume. This perfor- mance reflects efficient management of the industrial plant, based on continuous improvement processes. In the plant maintenance shutdown in 2016, a series of improvements were carried out in the production process, resulting in savings of 200 m³ of clean water per hour. Regarding irrigation, the company has specific procedures that ensure the most appropriate use of water in accordance with the season of the year. Another advance in 2016 was in reuse of water in the plant. The recirculation rate, which refers to the volume of water reused by the chilling towers and the recovery of condensates, reached 84.79%, com- pared with 81% the previous year. EFFLUENTS (G4-EN22) AThe Três Lagoas industrial unit monitors the effluents generated during pulp produc- tion on a daily basis. Before returning to the River Paraná, the wastewater is subject to an activated sludge treatment process. Follow- ing a downward trend already evident in 2015, the volume of water discharged into the basin was 11.3% lower in 2016, reaching almost 34 million m3. One of the initiatives that contributed to this was the utilization of the water used to clean the wastewater treatment filters in the boiler in the chilling tower, avoiding the need for treatment. The company is committed to returning the water used in its industrial processes to the River Paraná without jeopardizing other users in terms of quality or flow rate. The process is conducted in accordance with the limits established in the industrial plant's environmental impact study and is compliant with the standards of CONAMA and the state environmental authority CECA. TOTAL WATER WITHDRAWN BY SOURCE (M³/YEAR) G4-EN8 Surface water (rivers, lakes, wetlands, oceans) Ground water (Andradina Nursery/SP) Total 2013 39,478,754.00 2014 2015 46,588,677.00 45,611,125.14 2016 43,181,518.35 475,498.00 45,263.00 348,817.00 350,642.00 39,954,252.00 47,039,940.00 45,959,942.14 43,532,160.35

View entire presentation