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Investor Presentaiton

56 VALUE CHAIN ELDORADO BRASIL 2016 SUSTAINABILITY REPORT 57 SOCIAL IMPACT MATRIX COMMUNITIES (G4-26, G4-27, G4-EC8, G4-S01 and G4-S02) At the beginning of 2017, Eldorado updated its social impact matrix for the second time. This assesses the positive and negative social, economic and operational impacts the cultivation of eucalyptus has on the region. For this review, meetings and interviews were conducted with communities located up to 3 km away from com- pany areas or timber transportation routes (11 settlements and 4 districts), in addition to representatives of public authorities and unions. In general terms, the study indicated a significant improvement in positive perceptions on the part of the community and a sharp decrease in negative manifestations. Among the positive impacts generated by the company, worthy of note is the generation of employment and improved road networks. The most mentioned negative impacts were noise, dust and a reduction in employment. To address these first two impacts, Eldorado invests in publicizing its community communication channels. Also periodically, it em- ploys water tankers to sprinkle roads in order to mitigate problems caused by dust. In the latter case, the response came after a strate- gic Eldorado decision to dismiss a number of employees at the end of 2016, including some members of these communities. Strengthened relations To make the commitment to local development come true, the first step is to build close, trans- parent relations with these communities. Based on the guidelines established in its Social Moni- toring Plan, Eldorado has an annual schedule of visits and meetings with stakeholders. From March 2016 to March 2017 a total of 117 meetings were held including: 20 encounters with representatives of public au- thorities (municipal education, environment and agriculture departments, and the public prosecu- tion service, among others); 97 meetings focused on community en- gagement, such as the monitoring of the execution of projects and works, as well as environmental education initiatives. There is also the Demands Center, an elec- tronic database in which all community requests are recorded. During this same period, there were 810 entries in the Demand Center, of which: 641 were requests for information, duly answered; and 124 were requests for action, 21 of which were fulfilled and 101 stored in the Demand Center for future analysis and/ or action. After just a few years in opera- tion, the dimensions of Eldorado's activities have been generating growth and wealth for the mu- nicipality of Três Lagoas and the other cities in Mato Grosso do Sul where the company operates. This includes a series of benefits that directly affect the public, such as the development of companies in the regions, a stimulus to consume locally produced goods, the gen- eration of employment and income, investments in infrastructure and the modernization of labor relations. On the other hand, the company's activities also generate some negative impacts, such as noise from the forestry operations, dust raised and damage caused to roads serving the eucalyptus plantations. Aware of these challenges, but also of the progress that Eldorado promotes in its surroundings, the company remains committed to local development, prioritizing actions that enhance economic, health and educational indica- tors in the region. There are even community engagement initiatives in the areas in which Eldorado makes its presence felt through its forestry partners. Considering all company work fronts, monitoring impact and development actions now cover 50% of the operations. The objective is to grow in an inte- grated manner, ensuring business sustainability and value generation for local communities, who endorse the company's license to operate on a daily basis.
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