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GrupoNueva 2006
Financial Performance
Social and Environmental     Responsibility
MASISA
in numbers
     
 
   
Social and Environmental Responsibility
 

GrupoNueva understands that the success of the companies that we control involves the simultaneous achievement of positive results in the economic, social and environmental spheres, and the reduction to a minimum of possible negative impacts on the environment and society. We seek to guarantee this success through the implementation of our triple bottom line business strategy by means of which our companies are able to generate economic value while contributing to improving those societies in which they operate.

SOCIAL RESPONSIBILITY
We understand social responsibility to involve the harmonization of the interests of profitability with all those human aspects of the companies we manage, including the areas of human resources, as well as communications and consultations with all stakeholders: employees, neighboring communities, customers and suppliers. These tasks are assumed by company managers in the areas of Human Resources and Social and Environmental Responsibility.
 

Relations with local communities and local authorities
In 2006 the companies we control increased their dialogue processes in all their operations, as well as their working relations with local authorities. In particular, Masisa advanced in its joint work with communities in forestry operations in Chile where respectful dialogue is taking place with various Mapuche communities, although differences still exist with neighbors on six properties.
Masisa Venezuela was presented with the First Class award of the Orden Cacique Guaicaipuro by the indigenous council of the Municipality of Independencia of Anzátegui State to institutions and bodies that, through their actions, contribute to raising the quality of life among Kariña indigenous communities.

Occupational health and safety
All operational plants of companies controlled by GrupoNueva have OHSAS 18001 certification.
In 2006 the work accident frequency indicator among employees and contractors was 3.21 at the corporate level in Masisa, showing an 18% decrease over 2005.
In 2006 occupational health and safety management was based on four fundamental aspects:

• Commitment at director and managerial levels: in 2006 the complete corporate management team participated in the DuPont Safety Training Observation Program (STOP) workshop.

• Generation of a self-care culture: STOP straining was on-going and managers, supervisors and employees were specially trained to identify and correct risky conduct in the workplace.

• The analysis of safety indicators to identify critical areas and design action for prevention and control.

• The occupational health and safety system (OHSAS 18001): the level of completion achieved in this system has allowed the optimization of efforts to identify and control risks.
In 2007 Masisa will strengthen implementation of the STOP program in the forestry areas in Chile, Argentina and Brazil; the Corporate Committee on Occupational Health and Safety will be created; and medical monitoring programs to control exposure to risk factors involved in the board and wood processes will be standardized.
ENVIRONMENTAL MANAGEMENT
GrupoNueva incorporates eco-efficiency in management processes so as to optimize the use of natural resources in the productive process. We use measurement and control systems and indicators of environmental impact in all production plants.
 

Eco-efficiency in Masisa
Eco-efficient management in Masisa is allowing us to make savings on costs and increase efficiency in resource use. In 2006 we managed to reduce total water consumption by 28% and final waste by 3% in factories and sawmills. Unfortunately energy consumption increased by 7.6% over the same period for two main reasons: the consumption of biomass increased considerably in the Venezuelan plant, and a reduction in production in Ponta Grossa was not reflected in lower energy use as stoppages and reductions were sporadic making drastic reductions in consumption impossible.

Certifications
The majority of Masisa companies have three internationally recognized certifications: ISO 14001 for environmental management, OHSAS 18001 for occupational health and safety, and Forest Stewardship Council (FSC) certification for the sustainable management of forest plantations. Exceptions are wood operations in Chile that will obtain ISO 14001 and OHSAS 18001 certifications in 2007, and board and wood operations in Venezuela and Forestal Argentina that will obtain OHSAS 18001 certification in 2007 and 2008 respectively.

In 2006 Masisa Brazil became the only Brazilian company producing wood panels to offer products that comply with five international norms: E-1, ISO 9001, ISO 14001, OHSAS 18001, and FSC. It was also honored by the wood industry union for acquiring FSC certification for wood associated with the Ponta Grossa factory. More

Masisa at the Chicago Climate Exchange
Masisa has become the first Chilean company to be admitted to the Chicago Climate Exchange. This membership allows the company to trade voluntary greenhouse gas emission reductions and offsets on the market in the United States, and ensures the company’s commitment to maintaining a positive or neutral carbon balance.

Environmental investments
In 2006 Masisa made environmental investments mainly in the control of atmospheric emissions and of effluents and waste, reaching the sum of US$5 million; and signed the forest products industry Commitment to Global Sustainability agreed upon within the framework of the meeting of the International Council of Forest and Paper Associations (ICFPA) held in Rome. It was in this way that leaders and representatives of the forest and paper sectors of the world’s most important companies voluntarily made a such a commitment.

Environmental awards
We should like to share some of the awards received by Masisa in 2006: the prize “Leaders for a Living Planet” presented to Masisa by The World Wildlife Fund (WWF) in Chile; the prize “Corporate Sustainable Standard-Setter” presented by the international organization Rainforest Alliance; Masisa Brazil received the Fritz Müller Prize in public recognition of environmental authorities to outstanding companies and institutions in the area of environmental management; and the First Class award of the Orden Cacique Guaicaipuro by the indigenous council of the Municipality of Independencia of Anzátegui State to institutions and bodies that, through their actions, contribute to raising the quality of life among Kariña indigenous communities. Masisa Argentina stood out for its numerous awards: “Prize for Environmental Excellence in Business” for its “Zero Effluent” program at its Concordia plant; its election as one of the 50 best companies for which to work, according to the annual ranking published in the business journal Apertura; and the “Argentinean Export Prize” for the sixth year running.


For further information see the Sustainability Report, or visit the site   www.masisa.com (section on Sustainable Development).
       

Participation in the World Business Council for Sustainable Development:
GrupoNueva is a member of the World Business Council for Sustainable Development (WBCSD). This organization brings together the 194 most important companies providing business leadership throughout the world in catalyzing change toward sustainable development.