VCP’s activity is being guided more and more by the concept of sustainability. In practice, this means that we are a company capable of integrating economic, social, environmental and cultural factors in our practices, creating differentiated values for diverse groups.
In 2006 we commemorated 18 years in the business with an historic sales record for pulp (942 thousands tons) and paper (670 thousand tons). Investments in sustainability and efficiency management allowed us to reach significant levels in net earnings (R$2,892 million), EBITDA (R$1,113 million) and net profits (R$658 million). Even in an adverse exchange scenario and with a more competitive local market, we reached a profitability equivalent to 16% of our initial net worth (14% in 2005).
During the year, we received certification from the Forest Stewardship Council (FSC) for the chain of custody of pulp produced in Jacareí. This conquest has two meanings for us. The first is the certainty that the handling of our forests and our productive process is conducted in an ecologically correct, socially just and economically viable manner. The second is that the process of certification itself has produced relevant social skills, thus acknowledging the value of the idea of sustainability. Added to the relevance of the market, certification by the FSC represented the conquest of a value – that of environmental preservation – which is part of VCP’s identity.
We also furthered the process of socio-environmental licensing of the future pulp factory in the South of Brazil. In addition to public recognition that we are an environmentally responsible company, conferred by the government of the State of Rio Grande do Sul, this is yet another investment that offers us good skills in return in our relationship with the community.
VCP’s growth has happened in an organic way, seeking the involvement of our partners through the building of relationships that are meaningful for everyone. VCP’s forest development in Rio Grande do Sul, for example, today unites nearly 350 rural producers with 8.5 thousand cultivated acres, combining the cultivation of eucalyptus with the production of grain and the breeding of animals. Our goal is to expand this area in a sustainable way by 7.1 hectares per year.
These facts show a process of expansion that is committed to economic, social, environmental and cultural factors. In industrial production, we use technologies with the best performance available in the world, almost all of them based on principles of cleaner production and less use of natural resources. Our management processes recognize and value human rights. In 2006, we conducted an internal census that allowed us to become familiar with the current situation and debate the future situation with regard to introducing segments of society in situations of exclusion into our staff. We also improved our processes and reduced the number of work accidents involving employees and service providers by 32%.
We are also proud that VCP was selected for the second consecutive year to join the Business Sustainability Index (ISE) of the São Paulo Stock Market, a recognition of our commitment to sustainable business development.
Our performance has shown indications that we are on the right path in considering sustainability as a strategic business element at VCP for the long term. I am very happy that we are building a good company for different groups and for society.
José Luciano Duarte Penido
Managing Director