VCP is compromised to the life quality of communities at its industrial and forestry units. This action is aimed at promoting the social-economic development of these communities. Thus, the Company relations do not restrict themselves to the market of its products or for its professionals. It has a broader range of action, reaching several society segments.

Instituto Votorantim

VCP has created the Instituto Votorantim, aimed at extending and incrementing its action at the social sphere. In addition to share results, support social actions already in use in VCP companies, and focus on efforts, the institute also develops projects.

The Institute acts through commitees, which work at communities where the Group companies are installed.

Currently, the Grupo Votorantim was ranked third within companies that provide help to social affairs in Brazil. The Group made its social contribution even more effective by creating the Instituto Votorantim.

In 2006, the investment in environmental initiatives totaled US$ 23.8 million. Of this total, US$ 23.1 million was for internal projects and US$ 0.7 million for external projects, focused respectively on waste management (50%) and actions related to environmental education – including funds for the Centers of Environmental Education (NEAs).

The starting point for social investment is a local diagnosis – which seeks to understand the reality and demands of the city and the community – and the priorities are defined based on indicators such as the Municipal Human Development Index (IDH-M,).

All investments are planned, enabling the Company and the Social Work Group to have a complete picture about local reality, the possibility of action plans and an adequate distribution of resources among the many locations in which VCP operates.

The total amount invested by the Company in social activities for the external public in 2006 was approximately US$1.8 million, 22% less than the previous year. This reduction occurred in sponsorship areas and derived from an alignment with the Votorantim Group global policy for cultural investments, launched in 2006, which began to centralize the destination of funds for this area. The major part of external social investment (50%) was concentrated in education projects, thus maintaining the same focus as in 2005.

The Environmental Education Program develops activities through Environmental Education Centers (NEAs), which serve as a basis for environmental educational activities. They are the link between formal and informal education and serve to strengthen the relationships with local communities, while promoting more integration between the Company and society.

VCP currently runs seven NEAs in the state of São Paulo: Santa Branca, Altinópolis, Jacareí, Piracicaba and Capão Bonito (two centers), with one more unit foreseen for Capão do Leão (Rio Grande so Sul). A Mobile Unit was inaugurated in 2006, which was created to cover 40 municipalities in the Vale do Paraíba (São Paulo).

The Company furthermore supports and develops various initiatives in partnership with other entities in the communities where it operates. These include income generation programs (handicrafts, beekeeping), digital inclusion, training of young people and the destination of resources to Child and Teenager Support Funds.