Sustainability Report Aglomerados Cotopaxi 2023

["PLANTING FOR THE FUTURE \nSUSTAINABILITY REPO RT \nResponsibility \ntowards people \nCommitment of \nour company \nSustainable \nforest growth \nProduction \nprocesses \nGlossary of \nterminology or phrases \nList of \nacronyms \nMateriality \ntopics \nGRI Table of \ncontents","In gratitude \nTo all of the employees of Aglomerados Cotopaxi \nwho work with integrity, passion, and commitment \nto PLANT THE WAY TO A BRIGHTER FUTURE. \nSustainable \nforest growth \nGlossary of \nterminology or phrases \nMateriality \ntopics \nList of \nacronyms \nProduction \nprocesses \nGRI Table of \ncontents \nResponsibility \ntowards people \nCommitment of \nour company","SUSTAINABILITY REPORT \nGRI 102-51, GRI 102-52. \n For the first time \n1 \n, we are making our \nAglomerados Cotopaxi S.A. Sustainability report available to our \nstakeholders. It collects relevant information on our economic, social, \nand environmental operation for the year 2021. \nGRI 102-50, GRI 102-54. \nScope and limits. \nThis report has been made in conformity with the Essential Option \nof the GRI standards, covering the period between January 1st and \n2 \nDecember 31st, 2021. \nThe reported financial information comes from our financial \nstatements, audited by an independent firm. The non-financial \ninformation follows the orientations of the Institute for Social and \nEthical Accountability, as per the last version of the AA1000 norm and \ntherefore the principles of inclusiveness, materiality, and response \ncapacity for the AA1000 2008 APS. \nGRI 102-46. \n Content. \nTo determine the content of this report, we have applied the four \nprinciples established by the GRI for this: stakeholder inclusion, \nsustainability context, materiality, and exhaustiveness. \nThis is the result of the collaboration with the people responsible for \nthe management of the principal areas of our company, who prepared \nthe information presented. \nGRI 102-56. \n Verification. \nThis document has not been subject to an external verification \nprocess by a third party, however, much of the economic, \nenvironmental and social data has been audited externally and in an \nindependent manner as part of the processes we undergo annually. \nGRI 102-53. \n Questions and additional information. \nIn the case of questions or in the need of additional information \nplease contact: \nIsabel Arteta Durini \nSustainability Coordinator \[email protected] \n+593 99 314 9002 \nReport profile \n1 \nGRI 102-51\/GRI-52 \n we intend to present our results and advances in sustainability \nbiannually. \n2 \nGRI: Global Reporting Initiative. \nSustainable \nforest growth \nGlossary of \nterminology or phrases \nMateriality \ntopics \nList of \nacronyms \nProduction \nprocesses \nGRI Table of \ncontents \nResponsibility \ntowards people \nCommitment of \nour company","INDEX \n3 \n5 \n6 \n8 \n8 \n10 \n12 \n12 \n14 \n14 \n14 \n16 \n17 \n17 \n19 \n20 \n22 \n23 \n24 \n24 \n26 \n32 \n37 \n37 \n38 \n42 \n43 \n44 \n46 \n46 \n47 \n56 \n57 \n58 \n58 \n58 \n61 \n62 \n64 \n67 \n67 \n70 \n70 \n72 \n74 \n74 \n76 \n78 \n79 \n83 \n83 \n87 \n89 \n92 \n92 \n94 \n97 \n97 \n101 \n105 \n109 \n109 \n113 \n116 \n118 \n124 \n126 \n129 \nCommitment of our COMPANY \n1. Planting for the future \n\u00ae \n2. Corporate governance \n2.1 Decision making \n2.2 Investments \n2.3 Risks \n2.4 Challenges \n3. Big figures \n3.1 Relevant figures \n3.2 Economic performance \n4. Illustrated process: from the nursery to the wood board \n5. Outstanding projects of 2021 \n5.1 Outstanding projects \n5.2 Sustainability plan \n6. Contribution to Sustainable Development \nResponsibility towards PEOPLE \n1. Key figures \n2. Management of our people \n2.1 Culture \n2.2 Local recruitment \n2.3 Organizational Development \n3. Occupational health and safety \n3.1 COVID-19 \n3.2 Health and Safety Management \n3.3 Internal committees \n3.4 Forestry collaborators \n3.5 Specialized service providers \n4. Local economic development \n4.1 Relationship with our communities \n4.2 Community engagement programs \nSustainable FOREST growth \n1. Key figures \n2. 2. Territorial planning \n2.1 Sustainable forest plantations \n2.2 Forest patrimony \n2.3 Plant production \n2.4 Growth of our plantations \n2.5 Wood supply \n3. Management of our forests \n3.1 External certification of our good practices \n3.2 Integrated pest management \n3.3 Ecosystem services \n3.4 Awards and Recognitions \n4. Biodiversity \n4.1 Healthy ecosystem \n4.2 Wildlife refuge \nPRODUCTION PROCESSES \nthat minimize our impact \n1. Key figures \n2. Our operations \n2.1 Timber industry \n2.2 Quality Management \n2.3 Supply chain \n3. Environmental management of our production \n3.1 Environmental management \n3.2 Use of materials \n3.3 Water and effluents \n3.4 Waste \n3.5 Energy and biomass \n3.6 Emissions \n4. Product \n4.1 Our brand \n4.2 Our products \n4.3 We reach our customers \nGlosary of terminology or phrases \nList of acronyms \nMateriality topics \nGRI Table of contents \nSustainable \nforest growth \nGlossary of \nterminology or phrases \nMateriality \ntopics \nList of \nacronyms \nProduction \nprocesses \nGRI Table of \ncontents \nResponsibility \ntowards people \nCommitment of \nour company \nReport profile","COMMITMENT \nto our COMPANY \nSustainable \nforest growth \nGlossary of \nterminology or phrases \nMateriality \ntopics \nList of \nacronyms \nProduction \nprocesses \nGRI Table of \ncontents \nResponsibility \ntowards people \nCommitment of \nour company","SUSTAINABILITY REPORT \n1. Planting for \n the future \n\u00ae \nGRI 102-14. \n It is a privilege and a pleasure to share \nwith you our first Sustainability Report. It has been a \nhuge effort that has only been achieved thanks to the \ncommitment and support of all of those who make \nAglomerados Cotopaxi. In the process of building this \nReport, we have reviewed our history, our values and our \nvision of the future, which has led me to reflect that, a \ndocument as important as this one, should have been \npublished many years ago. Aglomerados Cotopaxi carries \nin its essence several of the sustainability concepts that \nare mandatory for any company that wants to have a \npositive impact on society. \nAglomerados Cotopaxi has been dedicated to planting \nand sustainably managing its forests since its \nconstitution more than 44 years ago. The vision of the \nfounding shareholders was always that the forestry \nplantations are the best source of raw material, and \nthat legacy continues today. Forestry plantations are \nrenewable, generate a series of environmental and \nsocial benefits, and each day we continue to discover \nnew attributes and positive impacts of the plantation. \nAglomerados Cotopaxi, in its eagerness to manage \nits plantations in the best possible way, obtained \nthe FSC (Forest Stewardship Council) certification \nallowing independent third parties to evaluate the good \nenvironmental, social and economic practices in our \nforests. We decided to obtain the FSC certification \nvoluntarily in 2011, not because markets or consumers \ndemanded it, but because doing things in the best \npossible way is perfectly aligned with our values. \nThe COVID\u201919 pandemic changed the world in ways we \nnever could have imagined. The challenge of moving \nforward has been enormous for people and companies. \nIn Aglomerados Cotopaxi we lived very difficult times. \nHowever, the way we faced the crisis always privileged \nthe preservation of employment, the care of the physical \nand emotional health of employees and the continuity \nof operations. The crisis also enriched us with many \nlessons; we learned to be more humane, to work better \nas a team, to relate more to nearby communities, to be \ncloser to family, and to value the simple aspects of life. \nIn Aglomerados Cotopaxi we seek to be a positive actor \nin the community; we decided to be a vaccination center \nthat served about six thousand people with two doses, \nand again applied the booster shot. We also decided to \nopen a part of our forests to the public, so that people \nWe are \nwalking steadily \nto strengthen our conviction \nfor sustainability \n6 \nSustainable \nforest growth \nGlossary of \nterminology or phrases \nMateriality \ntopics \nList of \nacronyms \nProduction \nprocesses \nGRI Table of \ncontents \nResponsibility \ntowards people \nCommitment of \nour company","SUSTAINABILITY REPORT \ncould leave their confinement to walk, ride a bicycle, \nappreciate the landscape, and above all, enjoy nature. \nWe are walking steadily to strengthen our conviction \nfor sustainability. Recently, together with shareholders, \nthe board and collaborators, we defined a purpose that \nguides us on the journey initiated by the founders. In our \nboard of directors we are privileged with the collaboration \nof two women with great experience in sustainability, \nwho guide and inspire us on this path. We have signed \nan agreement with scientists and academia to measure \nthe carbon fixation in our plantations, the carbon footprint \nof our operations, and achieve the declaration of carbon \nneutrality. We continue to learn and improve on good \npractices and are excited about what we can achieve in \nthe future. \nThis first Sustainability Report seeks to inform our \nstakeholders, in a clear and transparent way, of the long \nroad traveled, the efforts made, and the aspirations we \nhave. The task ahead is challenging and demanding. \nHowever, I am convinced that our track record assures \nus that we have the ability to maximize the value created \nfor society. \nBernardo P\u00e9rez M. \nGeneral Manager \n7 \nSustainable \nforest growth \nGlossary of \nterminology or phrases \nMateriality \ntopics \nList of \nacronyms \nProduction \nprocesses \nGRI Table of \ncontents \nResponsibility \ntowards people \nCommitment of \nour company","SUSTAINABILITY REPORT \nShareholder \nPercentage \n3.92% \n3.62% \n28.30% \n24.19% \n34.08% \nCapital \nNATIONAL \nNATIONAL \nNATIONAL \nFOREIGN \nNATIONAL \nBOSQUES TROPICALES S.A. BOTROSA \nEMPRESA DURINI INDUSTRIA DE MADERA CA EDIMCA \nLEDEX TRUST \nGRUPO MADERERO EMPRESARIAL GEM CORP. SLU \nSOCIEDAD ADMINISTRADORA DE INVERSIONES SA ADINSA \n2. Corporate \n governance \n2.1 Decision making \nGRI 102-1, GRI 102-5, GRI-102-10, GRI 102-18, \nGRI 102-40 \n. Aglomerados Cotopaxi was incorporated \nin 1977 in the city of Latacunga as a limited liability \ncompany, domiciled in the parish of Tanicuchi, \nLatacunga, in the province of Cotopaxi. In the year 2000, \nAglomerados Cotopaxi increased its capital and reformed \nits bylaws. These changes define its corporate purpose \nin afforestation and reforestation, the use of forestry \nresources, industrialization in all its forms and production, \nmarketing in national and international markets, \nimport and export of all products for human use and \nconsumption. The company is governed by the General \nShareholders Meeting and is managed by the Board, the \nChairman of the Board, the Executive President, the Chief \nExecutive Officer and the General Manager. \nGeneral Shareholders Meeting \nThe decisions that fall within the competence of the \nGeneral Shareholders Meeting are very broad, they refer to \ndecisions on the distribution of dividends, reinvestments \nor how to face large investments if necessary. \n8 \nSustainable \nforest growth \nGlossary of \nterminology or phrases \nMateriality \ntopics \nList of \nacronyms \nProduction \nprocesses \nGRI Table of \ncontents \nResponsibility \ntowards people \nCommitment of \nour company","SUSTAINABILITY REPORT \nBoard \nThe decisions of the Board of Directors determine the \ndirection of the company, what we do and where we are \ngoing. For the Board of Directors it is essential that the \nadministration of the business has the freedom to act \nwithin the main strategic guidelines that this body defines \nand within the framework of the values of the company. \nThe Board is composed of the Chairman of the Board, the \nExecutive President, three principal directors and three \nalternate directors, who replace the principal directors in \ntheir absence. The Board of Directors forms committees \nfor specialized management decisions on critical issues. \nThe only permanent committee is \nAudit and Risk Assesment, which, \ndue to its necessary operational \nindependence, reports only to \nthe Board of Directors. The other \ncommittees that may be required \nare ad hoc, and respond to specific \nsituations for which the company \nneeds managerial support. \nThe main decisions of the Board of Directors in 2021 \ndealt with: \n- market growth, value added products. \n- strategic planning for the post pandemic reality \n(environmental, social and economic). \n- review of the financing and leverage strategy in the face \nof the changes that the the world has experienced. \n- formalization and use of the sustainable management \nthat we have always done. \n- monitoring of management systems. \n- decisions on supply management in the face of \nchanges in the logistic chain (increase in inventories in \nthe short term, and increase in productive capacity in \nthe medium term). \nGeneral \nShareholders \nMeeting \nBoard of \nDirectors \nAdministration \nIn session: Aglomerados Cotopaxi Board of Directors \n9 \nSustainable \nforest growth \nGlossary of \nterminology or phrases \nMateriality \ntopics \nList of \nacronyms \nProduction \nprocesses \nGRI Table of \ncontents \nResponsibility \ntowards people \nCommitment of \nour company","SUSTAINABILITY REPORT \n2.2 Investments \nGRI 203-1. \n In recent years we have allocated a \nrepresentative amount to infrastructure investments for the \nimprovement and innovation of our industrial operations. \nA relevant project, significant at a financial level, and a \ndifferentiator for our production, was the sawdust burner. \nThis investment made between 2018 and 2019 improved \nenergy efficiency and reduced production costs. \nWe have also made investments in the resin dispenser \nto reduce its consumption and optimize our economy \nand environmental care. With resin being the second \nraw material input after wood in the manufacture of our \nparticle board and MDF, the savings have been significant. \nTOTAL INVESTMENT IN INFRASTRUCTURE 2,880,575 2,009,251 585,028 \n943,022 \nSIGNIFICANT INVESTMENTS \nMDP press table \n 502,305 \nSawdust burner \n432,853 \n27,409 \nResin dispenser \n466,040 \n10,506 \nBell Machines \n236,096 \nVolvo Loader \n192,515 \nValue added products plant \n1,858 \n 1,116,466 \n360,754 \n291,784 \nLoading dock for \ufb01nished product \n102,711 \nNew warehouse \n 231,247 \n47,334 \n1,500 \nEcuaboiler Boiler \n79,278 \nDrill planter \n32,450 \n2018 \n2019 \n2020 \n2021 \nIn 2018 we began investing in infrastructure and \nimporting machinery, which led to our new line of value \nadded products line, selling its complete production since \n2020. The transformation of MDF boards adds value to \nour products, which we export to new market niches. \nIn addition to the investments in our industrial area, \nwe have acquired machinery for the forestry area of \nAglomerados Cotopaxi. The harvest has become lighter, \nmore efficient and we have reduced our environmental \nimpact in the process. \n10 \nSustainable \nforest growth \nGlossary of \nterminology or phrases \nMateriality \ntopics \nList of \nacronyms \nProduction \nprocesses \nGRI Table of \ncontents \nResponsibility \ntowards people \nCommitment of \nour company","We invest to improve \nSustainable \nforest growth \nGlossary of \nterminology or phrases \nMateriality \ntopics \nList of \nacronyms \nProduction \nprocesses \nGRI Table of \ncontents \nResponsibility \ntowards people \nCommitment of \nour company","SUSTAINABILITY REPORT \n2.3 Risks \nThe Audit and Risk Assessment committee builds a \nrisk matrix on the basis of the strategic planning of \nAglomerados Cotopaxi. It consists of the following four \nsteps that allow its operation: \n- Risk identification according to the strategy \n- Risk assessment \n- Risk disaggregation \n- Finally the Board of Directors establishes the level of risk \nit wants to assume, and seeks the best management \npath, either by mitigation, by transfer of risk (insurance), \nor by decision to live with those risks that are typical of \nthe business . \n1 \n2.4 Challenges \nGRI 102-13, GRI 415 (103-2, 103-3). \nWe have joined our peers in spaces that allow us to \ninfluence in a collegiate way on challenges and topics of \ninterest that we understand of, because they are linked \nto the business of our company. Sustainable forestry \nmanagement, wood production, issues related to the \nmanagement of industries in the Province of Cotopaxi, \nand at a national level, and of course, to the export of \nour products are all topics that invite us to sit down with \nsimilar businesses to find opportunities for growth. \nAs an acting part of these alliances, through \nrecommendations, promotion of good practices or \nproposals in situations of change, we support the \ngeneration of public policies when we are summoned\u00b2. \nWe believe that together we find more lasting solutions. \n1 \nGRI 201-2. \nTo date, we have not developed an analysis of financial implications and other \nrisks and opportunities arising from climate change. \n GRI 205 (103-2, 103-3), GRI 205-1, GRI 205-2, GRI 205-3. \n On matters related to anti \ncorruption, Aglomerados Cotopaxi controls, as part of its process and internal audit, \nits most critical issue in the matter by ensuring the traceability of 100% of the wood \npurchased from third parties. 100% of all timber purchase operations, are legal and are \nrevised biannually. \n The Code of Conduct is known and signed by all our employees. While integrity is a value \nof the company that permeates throughout our organization, we do not give specific \ntraining in this regard. In 2021, we had no cases of corruption. \n2 \nGRI 415-1. \nIn 2021, Aglomerados Cotopaxi did not make any contributions to political \nparties, nor to political representatives. This is not a practice of our company. \nPositive impact on climate change \n12 \nSustainable \nforest growth \nGlossary of \nterminology or phrases \nMateriality \ntopics \nList of \nacronyms \nProduction \nprocesses \nGRI Table of \ncontents \nResponsibility \ntowards people \nCommitment of \nour company","SUSTAINABILITY REPORT \nEcuadorian Association \nof Wood Industrialists \nAIMA \nAglomerados Cotopaxi was one \nof the founding partners of \nAIMA in 1976, when a group of \nvisionary entrepreneurs \nalready saw in sustainability \nand sustainable management of \nforests the main prop for the \ndevelopment of the sector. \nBeing the pioneer company in \nthe development of Pine forest \nplantations, it focused directly \non the development of productive \nchains. Form 2017 to 2021, the \nequanimous and committed \nleadership with the entire sector, \non the part of Aglomerados \nCotopaxi in the presidency of the \nBoard of Directors of AIMA, \nallowed progress in multiple \nprojects for the bene\ufb01t of our \naf\ufb01liated companies, which \nbelong to all the links of the \nproductive chain. In 2021 we \nconsolidated a proposal, worked \non for the past 3 years, together \nwith different actors in the sector, \na proposal that was presented to \nthe National Government, and \nhas been the axis of AIMA, in \nfavor of the Sustainable Forestry \nIndustry. \nChamber of Industrialists \nof Cotopaxi \nCIEC \nThe primary objective of the \nCIEC is to join the sustainable \ndevelopment goals of the \nprovince of Cotopaxi, and its \nseven counties. To achieve this, \nit is essential to have a long term \nprivate investment, which boosts \nindustrial activity, generates \nemployment, respects the \nenvironment, contributes to the \ndifferent levels of government, \nand strengthens community \norganization. Aglomerados \nCotopaxi is an outstanding \ncompany, that since 1978 has \ncontributed signi\ufb01cantly to these \nobjectives. The CIEC has counted \non the unconditional support of \nAglomerados Cotopaxi in \ncommunity work, such as the \nCOVID 19 VACCINATION PLAN, \nwhich reached its goal of \nimmunization to the rural \npopulation and generated the \ncon\ufb01dence of the surrounding \ncommunity. This has laid the \nfoundations for a more extensive \ncollaboration program with \npublic entities, which will \nstrengthen education, health \nand safety programs. \nSustainable Forestry \nManagement Corporation \nCOMAFORS \nCOMAFORS is an organization \nwhose objective is to contribute \nwith a proposal of public policies \nto improve sustainable forestry \nmanagement processes in the \ncountry, and contribute to the \nmitigation and adaptation of \nclimate change. \n- Participation in public policy \nprocess: construction processes \nof forestry development \nregulations. \n- Relationship with local actors: in \nthese spaces we work on \ndiscussion of forestry \nregulations, plant health \nprograms, and demonstration of \ngood practices of sustainable \nmanagement. \n- SACHA AWARD: Aglomerados \nCotopaxi has actively \nparticipated in the four \napplication and award \nprocesses, presenting projects \nthat have been recognized. \nReverdeSer: project in \nLatacunga that aims at forestry \nrestoration of degraded areas in \nthe periphery of the county. \nEcuadorian Federation \nof Exporters \nFEDEXPOR \nAglomerados Cotopaxi is a \nfundamental partner of the \nEcuadorian Federation \nof Exporters FEDEXPOR, \nits decisive involvement in \nthe union activity has been \nreflected in the exercise of the \nPresidency of the Board of \nDirectors of the Federation \nfor three periods in the last \n15 years, which, without a \ndoubt generated a radical \nchange in institutional growth \nwith an innovative vision, \nfor the strengthening and \ndevelopment of Ecuador\u00b4s \nnon-oil exports. The resilience \ndemonstrated in the pandemic \nby Aglomerados Cotopaxi, both \nin the creation of new export \nproduct lines, as well as in \nits involvement in the \nmanagement of the vaccination \nplan, was an example to be \nfollowed by other exporters in \nthe country. \n13 \nSustainable \nforest growth \nGlossary of \nterminology or phrases \nMateriality \ntopics \nList of \nacronyms \nProduction \nprocesses \nGRI Table of \ncontents \nResponsibility \ntowards people \nCommitment of \nour company","SUSTAINABILITY REPORT \n3.1 Relevant figures \n GRI 102-7 \n3.2 Economic performance \nGRI 201 (103-2, 103-3), GRI 201-1. \nThe strategic plan \nwith its short and long term objectives, is what feeds \nthe creation of the balanced scorecard, and defines the \npoints of special interest for management. On the basis \nof these elements the company\u2019s budget is built, and its \nresources managed. \nOur financial management plans using budgets and \nprocess goals fulfilled in previous years, as a reference. \nFor this reason, our control mechanisms are based on: \n- Process management \n- Internal and external audits \n- Financial and risk policies \nAs a result of the pandemic, we have had to face the \nincrease in prices and lower availability of goods and raw \nmaterials. However, in the financial field, Aglomerados \nCotopaxi exceeded the objectives it had set in sales, \nmargin and profit for the year 2021. This trend continued \nin the 18 months after the pandemic lockdown, and was \nmainly due to this being our first full year with production \nof the new line installed in 2020. \nCerti\ufb01cations \nto our processes \nFSC (10 years) \nISO 9001:2015 (12 years) \nISO 45001:2018 (1 year) \nEPA CARB (4 years) \nForestry patrimony \narea 2021 \n17,629.41 hectares \nLand use \nPlantation \n67.28% \nConservation \n28.85% \nOther uses \n3.87% \n547 employees \n482 \nhired in the province \nof Cotopaxi \n113 \nforestry workers \n53 \nfemale workers \nTOTAL PRODUCTION \n118,294 m\u00b3 \nMadera aserrada \n10,090 m \n3 \nAglomerado \n42,118 m \n3 \nMDF \n66,086 m \n3 \nSALES 2021 \n54,217,724 dollars \nDomestic market \n39,871,675 dollars \nExports \n14,346,049 dollars \n43,066,754 dollars \ntotal expenditure in suppliers \n34,450,656 dollars \nfor suppliers nationwide \n28 % \nin suppliers in Cotopaxi \n8,616,098 dollars \nin international suppliers \n3. Big figures \n14 \nSustainable \nforest growth \nGlossary of \nterminology or phrases \nMateriality \ntopics \nList of \nacronyms \nProduction \nprocesses \nGRI Table of \ncontents \nResponsibility \ntowards people \nCommitment of \nour company","GENERATED ECONOMIC VALUE \nTotal revenue \n54,217,725 \nMDF \n21,571,907 \nMDP \n22,536,478 \nSolid wood \n3,023,550 \nAdded value \n7,738,608 \nOther operation \n-652,819 \nDISTRIBUTED ECONOMIC VALUE \n Investor payment \n - \n Creditor payment \n11,328,428 \n Payment suppliers \n43,066,754 \nTotal expenditure on domestic suppliers \n34,450,656 \nTotal expenditure on foreign suppliers \n8,616,098 \nTotal expenditure on suppliers of \n5,167,089 \nthe province of Cotopaxi \n Public administration \n2,530,840 \n Employees \n6,027,491 \n Business operation \n16,979,929 \n Community and environment \n291,454 \nRETAINED ECONOMIC VALUE \n EBITDA \n 9,194,832 \n Net pro\ufb01t \n4,812,640 \n Re-investment \n2,000,000 \n Available to shareholders \n2,167,033 \nWe are proud to report that in 2021, Aglomerados \nCotopaxi achieved a AAA risk rating granted by Global \nRatings. We are listed on the Quito Stock Exchange \nthrough the issue of bonds that we have honored, in their \nentirety, in quarterly payments. Below, we present the \ndisplay of our main financial results \n3 \n. \n3 \nGRI 102-45. \n The financial information presented is related to Aglomerados Cotopaxi S.A. \n15 \nSUSTAINABILITY REPORT \nSustainable \nforest growth \nGlossary of \nterminology or phrases \nMateriality \ntopics \nList of \nacronyms \nProduction \nprocesses \nGRI Table of \ncontents \nResponsibility \ntowards people \nCommitment of \nour company","Seed producing \ntrees \nMushroom dehydrating \nplant \nProtection and \ncontrol against \nforest fires \nSoil \npreparation \nFROM THE NURSERY TO THE BOARD \nAglomerados Cotopaxi value chain \nBark returns to \nthe nursery \nAGLOMERADOS \nCOTOPAXI \nPlanting for the future \nPLANT \nPRODUCTION \nPLANTATIONS \nPRUNING \n(improve the quality \nof the tree) \nTHINNING \n(space to grow) \nHARVEST \nMushroom \nand herb \ncollection project \nCommunity \nherding \nForest \nguards \nSee complete \nmap","LOCAL STORE \nPress \nSanding and finishing \nBiomass \nBiodiversity \n(native flora and \nfauna species) \nRaw material \npreparation \nBiomass use allows for \n79.16% \n of the energy we consume \nto be renewable and sourced from \nour own productive process \n225 \n thousand ton CO e \n2 \nare captured yearly, \nthe equivalent of the emissions \nof approx. thousand vehicles. \n48 \n(residue reused in \nAGL and biomass) \nSALES \nHARVEST \nTRANSPORTATION \nguards \nConservation area \n(5,086 hectares) \nCommunity water \nmanagement program \nFinal user \nLocal sales \nExports \nSuppliers \nINDUSTRIAL \nPROCESS \n(complete use \nof the forestry \nresource) \nDebarking \n(bark goes to the \nbiomass pile and \na part goes back \nto the nursery) \nAglomerados Cotopaxi \nBike Park \n( \n1,300 \n hectares of \nforestry plantations) \nAGL, MDF, MOULDINGS \nAND PALLETS \nForestry plantation \n( \n11,861 \n hectares) \nForest \nguards"," ","SUSTAINABILITY REPORT \n5. Outstanding \nProjects of 2021 \n5.1 Outstanding projects \nFor those matters that deserve special interest and \nare outside our ordinary administration, we implement \nprojects that, if successful and represent a necessary \nimprovement for Aglomerados Cotopaxi, are incorporated \ninto our process management. These are the projects that \nto date have an advance of more than 70% and have been \nvaluable for the sustainability of our company. \nReduction of \nbiomass \nconsumption \nProject \ncompleted in \nFebruary 2022 \nSix SIgma project to reduce the humidity of the \nbiomass used for cauldrons and achieve a \nreduction of 20% in process costs. \nIncrease in the \nuse of our own \nbiomass \nTake advantage of branches and pruned tips of \nthe forestry process that generated a surplus of \n1500m\u00b3 in decomposition within the forest \nFinalized \nDust \nconsumption in \nthe burner \nReduction of fuel use by substitution with wood \ndust \nAXIS \nEnvironmental \nEnergy \nef\ufb01ciency \nSTRATEGIC \nGROUP \nPROJECT \nDESCRIPTION \nRESULT \nADVANCE \n100% \n100% \n100% \nProject in \nprogress \nSlat Wall dust \nrecovery \nDust generated as a result ofa grooving \nprocess that was not returned by the supplier \nto Aglomerados Cotopaxi \n80% \nFinalized \nChange from \ncommon to LED \nluminaries in \nindustrial plant \nImprove the quality of lumens in the workplace, \nand decrease the cost of lighting by 40% \n100% \n17 \nSustainable \nforest growth \nGlossary of \nterminology or phrases \nMateriality \ntopics \nList of \nacronyms \nProduction \nprocesses \nGRI Table of \ncontents \nResponsibility \ntowards people \nCommitment of \nour company","SUSTAINABILITY REPORT \nWater \nVaccination \nprogram \nFinalized \nSupport the health care of employees, family \nand community, reactivate productive \nactivities, facilitating the inoculation of \n10300 doses. \nCotopaxi grows \nwith you \nPromote that 94 employees \ufb01nish \nhighschool, improve their self esteem and \nknowledge \nProject in \nprogress \nIncreased \nproduction of \nMDF-CARB \nIncrease MDF-CARB production volume \n(33% of the total produced) which generates \nless formaldehyde emissions. \nSocial \nWorking \nenvironment \n(conditions) \nEconomical \nMejoramiento \nContinuo \n100% \n100% \n75% \nProject in \nprogress (Phase \n1,2 and 3 \ncompleted) \nStandardization \nin process \nImplementation \nof 5S \nmethodology \nEstablishment of 5S methodology in \nindustrial, forestry and support processes, \nto generate safe and healthy workplaces. \n70% \n70% \nRepowering of the \nwastewater \ntreatment plant \nInstallation of physical and chemical \ntreatment operation to increase the life of \nthe \ufb01ltration membranes without \ncompromising the quality of the effluent. \nDesign and new \nDAF technology \nready. \nFinalized \nReduction of the \n\ufb01nancial impact of \nthe improvement \nprocess and \nincrease in \ncustomer \nsatisfaction \nSix Sigma \nIssuance of long \nterm bonds \nMethodology for the management of \ncontinuous improvement. Includes the \ntraining of collaborators and the \npublication of the manual in the process \nmanagement system. \nWith a AAA rating risk quali\ufb01cation we went \npublic in 2020 and 2021, we issued long \nterm bonds for $6 million dollars \n70% \n100% \nFinancial \n90% of the \nemission ends in \n2023, another part \nends in 2024 and \n2025 \n18 \nSustainable \nforest growth \nGlossary of \nterminology or phrases \nMateriality \ntopics \nList of \nacronyms \nProduction \nprocesses \nGRI Table of \ncontents \nResponsibility \ntowards people \nCommitment of \nour company","SUSTAINABILITY REPORT \nSUSTAINABILITY PLAN \nEf\ufb01cient productive processes that manage the impact of the company's operations \ntowards its stakeholders. \nA sustainable forestry growth that allows the supply to the industry, with a positive environmental \nimpact, supported by a forestry management of excellence. \nPromote our circular economy \nmanagement and promote \ndifferentiating environmental \nstandards in our current and \nfuture operations. \nCertify our CARBON \nFOOTPRINT \nManage our SUPPLIERS with \norganized and supported \nprocesses. \nEnsure, with sustainability \ncriteria, a growth in the volume \nof wood supply for production. \nMaintain the management of \nthe territorial organization of \nthe forestry patrimony. \nEnsure excellence in the \nmanagement of biodiversity \nin our operations. \nMaintain our community \nrelations programs. \nMeasure and validate the \nCARBON SEQUESTRATION of \nour forestry plantations, \nincluding conservation areas. \nMaintain our responsibility towards people, so that the professional relationships we maintain in \nthe area mark a visible difference in the long term. \nDifferentiate ourselves by our \nbest labor and occupational \nhealth and safety practices \ntowards our forestry workers. \nPromote the inclusion of \nwomen in our organization. \nInclude diversity and inclusion \nindicators in the management \nof Human Talent. \nPromote LOCAL \nENTREPRENEURSHIP associated \nwith our line of business. \nImprove the cross functional \nmanagement of occupational \nhealth and safety in all of the \ncompany operations. \nImplement a \ncommunication \nstrategy that allows \nus to communicate \nour forestry,social \nand productive \npractices. \n5.2 Sustainability plan 2022 - 2024 \n19 \nIn order to understand the status of Aglomerados \nCotopaxi in relation to international sustainability \nstandards, evaluate our current management and be able \nto project ourselves into the future in this area, in 2021, \nwith the guidance of a consulting group, we carried out \na process of identification of material aspects with the \nparticipation of our main stakeholders\u2074. Based on these \nrelevant issues, we made a diagnosis of our management. \nThese two inputs, together with the participation of the \ncompany\u2019s Board of Directors, and its administrative \nleaders, allowed us to build our current sustainability plan. \nBelow is a brief summary of the results that will permeate \nour organization\u2019s process and activities over the next \nthree years. \nSustainable \nforest growth \nGlossary of \nterminology or phrases \nMateriality \ntopics \nList of \nacronyms \nProduction \nprocesses \nGRI Table of \ncontents \nResponsibility \ntowards people \nCommitment of \nour company","6. Contribution to \n Sustainable Development \nGRI 102-12, GRI 102-16. \nAlthough we have not \nformally adhered to the United Nations Global Compact \n(UNGC), the international initiative that leads business \nsustainability in the world, throughout our career, we have \nincorporated into our strategy and operations its \n10 universal principles related to human rights, work, \nthe environment, and the fight against corruption. \nLikewise, our actions and practices in forestry and \nindustrial matters represent, without a doubt, a \ncontribution to the implementation of the Sustainable \nDevelopment Goals approved in September 2015 within \nthe framework of the United Nations 2030 Agenda. \nWe are aware of the importance of contributing effectively \nto the fulfillment of this set of objectives that lead us \ntowards a more sustainable development. We know that \nwe cannot work on all of the SDGs at once, so this year \nwe focused primarily on the following: \n20 \nSUSTAINABILITY REPORT \nSustainable \nforest growth \nGlossary of \nterminology or phrases \nMateriality \ntopics \nList of \nacronyms \nProduction \nprocesses \nGRI Table of \ncontents \nResponsibility \ntowards people \nCommitment of \nour company","SUSTAINABILITY REPORT \nWe have a robust community \nengagement program with \ncommunities in our area of \ndirect influence. We act in \nhealth, education, economic \ndevelopment and social \ndialogue programs. \nWe maintain high rates of \nlocal recruitment at the \nprovincial level. \nWe offer long term work, \nwith respectful treatment \nand fair compensation, both \nin our industry and in our \nforestry plantations. \nOur forestry plantations have a \nlarge capacity to capture \ngreenhouse gasses. Our business \ncontributes positively to improving \nair quality. Forestry plantations are \nhydrological regulators and \nprevent droughts and erosion by \nexcess precipitation. \nWe promote improvements \nin occupational safety in our \nproduction processes and focus \non preventive health programs. \nWe supported and participated in \nthe vaccination process of our \nemployees, their families and the \ncommunities close to our \noperations. \nWe use most of the tree \nfor the manufacture of our \nproducts. The remainsof the \nharvest and the residues of the \nproduction process (biomass) \nare used to generate renewable \nenergy, promoting a circular \neconomy. \nOur forestry plantations and their \nconservation areas, are managed \nwith sustainable forestry \npractices and are certi\ufb01ed by the \nForest Stewardship Council. We \naim to maintain an average \nbiodiversity in our forestry \npatrimony. \nEND \nOF POVERTY \nHEALTH AND \nWELL-BEING \nRESPONSIBLE \nPRODUCTION AND \nCONSUMPTION \nDECENT WORK \nAND ECONOMIC \nGROWTH \nCLIMATE \nACTION \n3 \nLIFE OF \nTERRESTRIAL \nECOSYSTEMS \n21 \nSustainable \nforest growth \nGlossary of \nterminology or phrases \nMateriality \ntopics \nList of \nacronyms \nProduction \nprocesses \nGRI Table of \ncontents \nResponsibility \ntowards people \nCommitment of \nour company","Responsabilidad \nhacia las \nPERSONAS \nResponsibility towards \nPEOPLE \nSustainable \nforest growth \nGlossary of \nterminology or phrases \nMateriality \ntopics \nList of \nacronyms \nProduction \nprocesses \nGRI Table of \ncontents \nResponsibility \ntowards people \nCommitment of \nour company","SUSTAINABILITY REPORT \n1. Key figures \n482 jobs in the direct \narea of influence \n2300 indirect jobs \n547 \nworkers \nKey \n\ufb01gure \n1 \nKey \n\ufb01gure \n3 \nof community \nengagement \n4 \npermanent \nprograms \nKey \n\ufb01gure \n5 \nOpinion makers \nexperts, \ufb01nancier \nNational authorities, \nbusiness associations \nCollaborators, \nclients, suppliers, \nthird party plantations, \nFACs, local authorities \nIndustry, \nforestry patrimony, \nshareholders \ncompared to last year \n20% \nreduction \nof accident \nfrequency rate \naffecting industrial \nand\/or forestry \noperations \n0 \nsocial conflicts \nKey \n\ufb01gure \n6 \n generated \nduring the visits of \nbehavior based security \n89.9% \nCompliance \nwith improvement \nactions \nKey \n\ufb01gure \n4 \nCulture and \norganizational work \nenvironment index \n1 \n85.13% \nICAO \nKey \n\ufb01gure \n2 \n1 \nThe ICAO Culture and organizational work environment index, measures the level of satisfaction of our collaborators in six pillars: quality, goal achievement , work environment, listening to the client, family and \ninnovation. \nStakeholders \n23 \nSustainable \nforest growth \nGlossary of \nterminology or phrases \nMateriality \ntopics \nList of \nacronyms \nProduction \nprocesses \nGRI Table of \ncontents \nResponsibility \ntowards people \nCommitment of \nour company","SUSTAINABILITY REPORT \n2. Management \nof our people \nThe effort that, as a company, we have maintained \nover 43 years, prioritizes that we get to know the needs \nof our current and future customers in depth; that \nwe know that it is fundamental to have competent, \naligned and committed personnel; that having and \nagile, highly efficient and environmentally responsible \noperation is essential for our permanence, and that this \nwill allow us to have the support of a favorable social \nnetwork. Only in this way will we achieve sustained \nprofitability in the future. \nOur vision, purpose and values have been integrated \ninto the company\u2019s standards in order to make them \nenforceable and make them into organizational practices. \nOur Code of Conduct, the Internal Work Regulation, \nthe Purchasing Process and Suppliers, and the \nstandardized Procedure internally aligned to the BASC \nCertification, are various examples of the commitments \nwe have taken. \n2.1 Culture \nVision, purpose and values \nGRI 102-16. \nWe aspire to become a benchmark in \nsustainability and business excellence, to be recognized \nby our customers as the best option for forestry products \nand services. The purpose of Aglomerados Cotopaxi is to \ncontribute to the development of a sustainable society; \ngenerating forestry products and services that meet the \nneeds of our customers. \n24 \nOur values remain \nunchanged throughout \nour company\u00b4s \nhistory, they guide \nour decision making, \nand are an essential \npart of our culture. \nIntegrity: \nWe always \ndo the right thing. \nPassion: \n We love \nwhat we do. \nAusterity: \nWe take \ncare of the company\u2019s \nresources as our own. \nCompromise: \nWe fulfill \nour dreams. \nSustainable \nforest growth \nGlossary of \nterminology or phrases \nMateriality \ntopics \nList of \nacronyms \nProduction \nprocesses \nGRI Table of \ncontents \nResponsibility \ntowards people \nCommitment of \nour company","Forestry management employees \nSustainable \nforest growth \nGlossary of \nterminology or phrases \nMateriality \ntopics \nList of \nacronyms \nProduction \nprocesses \nGRI Table of \ncontents \nResponsibility \ntowards people \nCommitment of \nour company","SUSTAINABILITY REPORT \nMEMORIA DE SOSTENIBILIDAD \nMEMORIA SOSTENIBILIDAD 2021 \n2.2 Local recruitment \nEmployment \nGRI 102-3, GRI 202 (103-2, 103-3). \nOur forestry and \nindustrial operations are located in the Central Highlands \nof Ecuador in the province of Cotopaxi\u00b2. In this rural \narea the main sources of employment are agribusiness, \nfloriculture, tourism and others with less impact in terms \nof hiring personnel; the above mentioned activities offer \nemployment opportunities mainly at an operational level. \nAglomerados Cotopaxi S.A. has positioned itself as a \nlocally recognized employer that offers stable and long \nterm work, respectful treatment and an adequate work \nenvironment. \nIn the area, we are the company with the largest area of \nforestry plantations, and their corresponding operational \nactivity, thus our staff requirement is significant in the \nsurroundings. Our policies and procedures are developed \nwith the purpose of having the right personnel in the \nappropriate position, promoting the development of our \nemployees, generating integral well being, and being a \nsource of sustainable employment in the surrounding \nareas and communities of direct influence. \n2 \nEstamos ubicados en el barrio de Lasso, cerca de la ciudad de Latacunga, en la provincia de Cotopaxi. \n2 \nWe are located in the neighborhood of Lasso, near the city of Latacunga, in the province of Cotopaxi. \nThe \nMama Negra \n, a traditional character of the \nprovince of Cotopaxi, represented by one of our \nemployees (See glossary) \nSustainable \nforest growth \nGlossary of \nterminology or phrases \nMateriality \ntopics \nList of \nacronyms \nProduction \nprocesses \nGRI Table of \ncontents \nResponsibility \ntowards people \nCommitment of \nour company","SUSTAINABILITY REPORT \nlogistics services have been hired in the area of direct \ninfluence, and correspond to 16.7% of this category of \nexecutives. \nGRI 102-8. \n This approach allows us to present the \ncategorization of our human talent : \n4 \nGRI 401 (103-2), GRI 202-2. \nWe make efforts to promote \nlocal hiring. For the recruiting of new collaborators, \nin our search, we favor the hiring locally, both at a \nprovincial and national level, in that order, with the \npurpose of stimulating socioeconomic development of \nour area of direct influence . On this basis 88.48% of our \n3 \ncollaborators are from the province of Cotopaxi. However, \nnationality is not a discriminatory factor. \nWithin our organizational structure, we consider as \nhigh ranking executives those responsible for a macro \nprocess, whose management directly impacts the results \nof the company, and the fulfillment of the strategy. \nThe industrial manager and the assistant manager of \n3 \nGRI 402-1. \n Our line of business is born from our forestry properties, distributed mainly in the province of Cotopaxi, and relies on its own industrial facilities located in the same place, so what is related to \nminimum notice periods on operational changes does not apply. \n4 \nThe company only has full time employees, that work, 40 hours per week. Due to the pandemic, in the company, we took advantage of the emergent contract established by the Ministry of Labor. The information \ncomes from the company\u2019s internal system and is declared to the Ministry of Labor. \n547 \nIndustrial \n362 \n10 2 \n1 0 \n263 7 69 1 \nQuito \nCotopaxi \nAmbato \nAglomerados \nCotopaxi \n453 \nInde\ufb01nite \ncontract \n90 \nEmergency \ncontract \n4 1 \n3 0 \nForestry \n113 \n7 1 \nQuito \nCotopaxi \n 98 4 \n0 0 \n 1 0 \nAdministrative \n 72 \n 11 12 \n1 0 \nQuito \nCotopaxi \nAmbato \n 21 13 1 2 \n1 7 \n0 0 \n2 0 \nIbarra \n0 0 \n88,48% \n of our \ncollaborators are \nfrom the province \nof Cotopaxi \n27 \nSustainable \nforest growth \nGlossary of \nterminology or phrases \nMateriality \ntopics \nList of \nacronyms \nProduction \nprocesses \nGRI Table of \ncontents \nResponsibility \ntowards people \nCommitment of \nour company","SUSTAINABILITY REPORT \nprefers the hiring of personnel from the area of direct \ninfluence. The hiring of forestry collaborators promotes \nlocal employability, well being, reactivation of the \neconomy and promotes a better quality of life, by \nguaranteeing, the proximity of the operations to the \nhome of the employees. \nForest collaborators \nAC1 (GRI 103-2, GRI 103-3). \nAfter more than four \ndecades of work, we now have 17,600 hectares of our \nown forests, with a territorial order based on the proper \nmanagement of culturally modified landscapes, with \nforestry plantations, conservation areas, small agricultural \nareas and infrastructure. Our plantations allow us to \nemploy 101 full time forestry employees, including \nstaff in operational and administrative areas and, with \ntheir support, ensure the compliance of our forestry \nmanagement. \nThe forestry area of Aglomerados Cotopaxi, is known \nfor its excellence in the care of its plantations. \nAll forestry employees are part of our payroll, and we \nalso rely on the services of suppliers, specialized in \nspecific areas of forestry management. Due to the type \nof work, the conditions are different from those of the \nindustrial area: the forestry collaborators work single \neight hour days shifts outdoors in our plantations, and \ndo not perform rotating shifts, with the exception of \nthe harvesting staff who have two shifts . We always \n5 \nguarantee adequate work clothes, personal protective \nequipment, transportation to access the sites, and food \nin order to ensure optimal working conditions and a \nharmonious and welcoming environment. \nThe company, in congruence with its business \nprinciples and according to its geographical location, \n5 \nOne forest guard a week does a third shift to take care of the harvesting forestry machinery. \nNursery employees \n28 \nSustainable \nforest growth \nGlossary of \nterminology or phrases \nMateriality \ntopics \nList of \nacronyms \nProduction \nprocesses \nGRI Table of \ncontents \nResponsibility \ntowards people \nCommitment of \nour company","SUSTAINABILITY REPORT \nHiring and dismissal \nWe comply with all current legal hiring requirements \nand with all the labor benefits required of Ecuadorian \ncompanies. The management for the coverage of \nvacancies is carried out based on a selection process that, \nwhen completed, supports the business objective, which \nis to have suitable personnel who possess skills and meet \nthe necessary requirements for an optimal performance, \nguaranteeing compliance with the strategic objectives of \nthe company . \n6 \n2 \n1 \nPosition \nrequest \nRequirements \nreview \n10 \nDelivery of \nentry \ndocument \n11 \nRegularization \nof contract \n12 \nEntry notice \nto the \ncompany \n3 \nVeri\ufb01cation of \njob description \n6Technical & \nPsychotechnic \ntesting \n7Work \nreferences \nInterviews \n4 \nPublication \nof vacancy \nnotice \n5 \n8 \n9 \nSecurity \nCheck \nMedical \ncer \nti\ufb01cate \nJoin the \ncompany \n6 \nDepending on the position and process, the vacancy is announced through various job portals, labor \nnetworks or internal communication media. We encourage the growth of our collaborators through \nvertical movement opportunities or other company processes. \nGRI 408 (103-2, 103-3), GRI 408-1 \n. \n In Aglomerados Cotopaxi we consider that child labor should be \nexcluded from our employment options, since it prevents the educational development of children, \nand masks the real needs of the vulnerable population; for this reason, under no circumstance we \nallow child labor in our operation, forests, or in the hiring of external services. We focus on offering \nquality work to adults committed to their future and that of our company. \n7 \nDetail of the 43 dismissals in 2021: 33 men and 10 women. 36 belong to the province of Cotopaxi \nand 7 to the province of Pichincha. According to the line of work: 24 correspond to industrial, 4 to \nforestry and 15 to administrative \nGRI 401-1. \n In 2021 we had 43 disengagements and hired \n7 \n49 new employees for the creation of new jobs and also \nfor replacements. \nHiring new employees allows us to incorporate new skills \ninto the organization. The average turnover during 2021 \nwas 0.68%; which compared to the global benchmark of \nvoluntary rotation (7%) shows we have a very low turnover. \nLabor inclusion \nGRI 405 (103-2, 103-3). \n Consistent with our business \nprinciples, and consistent with our Hiring Policy, we \ndon\u2019t allow, participate in, or accept activities that in \nany way promote or cause discrimination among our \nemployees. Neither in the hiring of new workers, nor in \nthe disengagement of personnel, discriminatory elements \nwill be considered acceptable. Aglomerados Cotopaxi \nconsiders as discriminatory elements or criteria those \nbased on: ethnicity, gender, age, disability, creed, political \nafiliation and sexual orientation. \n Selection process \n29 \nSustainable \nforest growth \nGlossary of \nterminology or phrases \nMateriality \ntopics \nList of \nacronyms \nProduction \nprocesses \nGRI Table of \ncontents \nResponsibility \ntowards people \nCommitment of \nour company","SUSTAINABILITY REPORT \nIn the category of hiring people with disabilities (above \n30% of disability), or who have relatives with a high degree \nof disability (first degree of consanguinity relative, with a \ndisability greater to 30%, and who depends economically \non the collaborator), we have 21 of our collaborators. \nThe activities performed by them, allow them to have an \neffective performance, from which they contribute to the \noperation of their work areas. \nWe also support the inclusion of young personnel, \nfollowing the regulation of the Ministry of Labor of \nEcuador, under the figure of Young Employment (18-26 \nyears), as long as it is the first job \n8 \n. We comply with the \nlaw of internships in the business sector and training \nguides in workplaces. The interns and students receive \nbenefits that are fully covered by the company. \nGRI 405-1 \n The company has an organizational structure \nthat unfolds from management into operational levels. \nThe distribution of personnel in the different lines of work \nis presented next: \n8 \nIn 2021 there were 7 young people under this figure. \n2021 \nManagement \n1 \n3 \n8 \n0 \n0 \n0 \nIndustrial \nForestry \nAdministrative \n1 \n3 \n8 \n0 \n0 \n0 \n1 \n3 \n6 \n0 \n0 \n2 \nTotal \n- 30 \n30 - 50 \n+ 50 \nDepartment heads \n11 1 \n4 \n9 \nIndustrial \nForestry \nAdministrative \n12 \n5 \n13 \n1 \n0 \n2 \nage \ngender \n1 \n4 \n8 \n4 \n9 \n3 \n1 \n2 \n4 \n0 \n7 \n3 \n0 \n1 \n3 \n0 \n7 \n1 \n0 \n6 \n0 \n0 \n0 \nCoordination \n1 \n0 \n0 \nIndustrial \nForestry \nAdministrative \n25 0 \n7 \n3 \n25 \n7 \n9 \n1 \n0 \n2 \n0 \n6 \n19 \n5 \n5 \n5 \n2 \n2 \nSupervision \nIndustrial \nForestry \nAdministrative \nOperative \n312 8 \n94 4 \n16 19 \n494 53 547 119 370 \n(90.3%) (9.7%) \nIndustrial \nForestry \nAdministrative \n 320 96 \n98 \n35 \n7 \n6 \n200 24 \n79 \n24 \n12 \n5 \nTOTAL \n(21.8%) (67.6%) \n58 \n(10.6 %) \nWe have \n 21 \ncollaborators with \ndisabilities or who have \nrelatives with a high \ndegree of disability \nStaff distribution \n30 \nSustainable \nforest growth \nGlossary of \nterminology or phrases \nMateriality \ntopics \nList of \nacronyms \nProduction \nprocesses \nGRI Table of \ncontents \nResponsibility \ntowards people \nCommitment of \nour company","Benefits \nWith the objective of guaranteeing well being and \noffer better working conditions for all of its employees, \nregardless of the area of work, Aglomerados Cotopaxi \nimplements initiatives and gives monetary benefits \n(those established by law), and non-monetary (tied to \nthe emotional salary), which are described below: \nMonetary \nNon- monetary \nSubsidy of 100% of life and accident \ninsurance costs, applies to all lines of work, \nand 75% for health insurance that applies to \nadministrative personnel. \nSubsidy of 50% of the cost of meals in \nthe company\u00b4s dining room. \nCoverage of 100% of the costs of uniforms. \nCoverage of 100% of the cost of transporta- \ntion hired by the company. \nCoverage of 100% of dental and psychological \nservice offered by the company for employ- \nees and family. \nAccess to the grocery store within the \ncompany facilities. \nOption to enter the company's savings and \ncredit unions for employees and former \ncollaborators. \nBirthdays at home. \nRedistribution of summer schedules (june, \njuly and august), with the exception of staff \nwith rotating shifts. \nRecognition of student excellency for children \nof collaborators . \n9 \nWage compensation \ncomplies with the principle \nof maintaining external \ncompetitiveness and \ninternal equity, exceeding \nthe sector minimums set by \nthe government. \nTo promotea culture of high \nperformance, 85% of the \nworkers receive a \ufb01xed \nsalary, plus a variable \ncomponent, while 15% \nrecieve only the \ufb01xed salary. \nIncentives or short term \nbonuses for the compliance \nof projects associated with \ntheir level of responsibility \n(Managers, bosses) approved \nby the General Management. \nBene\ufb01ts required by law: \n2 additional salaries, saved \nfunds in social security and \npro\ufb01t distribution according \nto the yearly performance of \nthe company. \n9 \nEmployees voluntarily enroll their children in the social work area and at the end of the \nschool year, the students with the best averages receive laptops or other school supplies \ndepending on the grade achieved. \n31 \nThe well-being of our employees is reflected on their commitment \nSUSTAINABILITY REPORT \nSustainable \nforest growth \nGlossary of \nterminology or phrases \nMateriality \ntopics \nList of \nacronyms \nProduction \nprocesses \nGRI Table of \ncontents \nResponsibility \ntowards people \nCommitment of \nour company","SUSTAINABILITY REPORT \nGRI 202-1, 405-2. \nThrough different actions, such as \nthe timely payment of salaries, legal benefits, wellness \nprograms, corporate events, internal championships, \nrecognition programs and development programs, we \ngenerate a sense of belonging and commitment in \nour employees. The company\u2019s salary compensation \nis made of a fixed salary, variable salary, short term \nbonuses and overtime. \nThe initial salary for any new first level employee \ncorresponds to the unified basic salary set by the \ngovernment, plus the variable component, which places \nus above the sectoral salary. There is no difference \nbetween genders, or any other attribute; all new \noperational level personnel have the same salary. \nWhen analyzing the pay gap by gender, we find that the \nwages are equitable and fair, always aligned with our \nphilosophy . \n10 \n10 \nPay gap by gender= (mean female wage \/ mean male wage) x 100. \nRatio (%) \n+ 1 \n+ 7 \n+17 \n- 11 \n2.3 Organizational Development \nOrganizational environment \nGRI 401 (103-3, 103-2), GRI 103-3. \n In order to know the \nlevel of satisfaction of our employees related to quality, \ngoal achievement, work environment, active listening to \nthe client, family and innovation; we rely on the Culture \nand Organizational Work Environment Index (ICAO). We \nreview the results of the measurements in the committee \nMachinery maintenance in the wood yard \n32 \nLevel \nOperational \nSupervision \nCoordination \nDepartament \nheads \nSustainable \nforest growth \nGlossary of \nterminology or phrases \nMateriality \ntopics \nList of \nacronyms \nProduction \nprocesses \nGRI Table of \ncontents \nResponsibility \ntowards people \nCommitment of \nour company","SUSTAINABILITY REPORT \nand other management meetings, in order to draw up \nimprovement plans by process lines. In addition to this \nmethodology, well-being surveys are carried out. \nICAO measures six pillars.Over the past three years we \nhave progressively improved our overall results. This year, \nas in previous measurements, the pillar with the best \nresult was goal achievement. Our collaborators, suppor \n- \nted by the means that the company puts at their disposal, \nwere able to reach 91.22% of the proposed objectives . \n11 \n11 \nDetailed results 2021 by pillars: Quality 87.19%, Achievement of Goals 91.22%, Social setting and environment 87.03%, Active listening to clients 84.25%, Family 82.73%, Innovation 81.43%. \n12 \nDetailed results 2021 by pillars: Bio 71.82%, Psico 74.92%, Social 79.8%, Support 88.73% \nOur collaborators \nwere able to reach \n91.22% \n of the \nproposed objectives \nThe well-being survey, applied for the first time this year, \nachieved a result of 76.94%. It measures aspects in perso \n- \nnal areas and in human relationships . \n12 \nCulture and Organizational \nWork Environment Index (ICAO) \nWell-being survey pillars \nActive listening \nto the client \nSocial setting \nand environment \nAchievement \nof goals \nQuality \nFamily \nInnovation \n\u00b7 \n 530 Planned \n\u00b7 \n 448 Completed \n 84.53% \n84.16% \n85.13% \nPILLARS \nBIO \nSOCIAL \nPSICO \nStress \nNutrition \nHealth \nSomatization \nExercise \nWorkload \npsychological demand \nEmployment relationship \nFamily relationship \nJob stability \nAccompaniment \n74,94% \nTotal Cia. \n33 \nSustainable \nforest growth \nGlossary of \nterminology or phrases \nMateriality \ntopics \nList of \nacronyms \nProduction \nprocesses \nGRI Table of \ncontents \nResponsibility \ntowards people \nCommitment of \nour company","SUSTAINABILITY REPORT \nPerformance management \nEvaluation \nGRI 404-3. \n Through evaluation methodologies, we \nidentify collaborators with potential, we promote their \njob stability, their vertical, horizontal or depth growth; \nallowing us to have adequate and competitive talent in \nthe appropriate positions. The process and information, \nwhich is generated on an annual basis, applies to all \nlevels of the organizational structure, from management \nto operational levels; which allows us to promote a \nculture of high performance. We have two evaluation \nmethodologies, in the administrative areas we evaluate \nthe employees based on achievement of management \nobjectives, skills and potential; in the operational positions \nwe evaluate the employees by the activities registered in \nthe job description and skills. \nThe two methodologies are applied by levels according \nwith the following graph: \n13 \nThe company evaluation process starts in the last quarter of the year, and finishes with the feedback on \nthe first quarter of the following year. In 2020-2021, 471 employees ( 281 industrial, 94 forestry, and 96 \nadministrative) went through this process. The cases that were not evaluated were due to situations such as \ninternships, less than 6 months in the company, trial period and the like. \nGeneral management \n1st Line Managers \n2nd Line Managers \nDepartment heads \nCoordinators and \nsupervisors \nAnalysts \nAssistants \nEVALUATION BY INDIVIDUAL OBJECTIVES \nEVALUATION BY \nACTIVITIES \nN1 \nN2 \nN3 \nN4 \nN5 \nN6 \nN7 \nOperators \nN9 \nN10 \nN8 \nForestry \nworkers \nOperation \nassistants \nThe processes have different phases: performance \nplanning and definition of objectives, compliance \nmonitoring, self evaluation, evaluation, calibration \nand forced curve, feedback, development indexes. \nThis allows us to promote a culture with a focus on \nresults, a development process tailored to our employees, \nand make sure their contribution to the company \nstrengthens the strategy. \nPotential matrix \nFrom 2017, the year of the first implementation, we \nhave sought improvements in order to have a flexible \nevaluation process that, at the same time, allows us to \nfocus on a culture of high performance. The information \nfrom the evaluation process allows us to complete the \npotential matrix . \n13 \nD3+P3 \nTALENT \nD3+P2 \nTALENT \nD4+P2 \nTALENT \nD4+P3 \nSUPERIOR \nTALENT \nD5+P3 \nSUPERIOR \nTALENT \nD5+P2 \nTALENT \nD4+P1 \nSPECIALIST \nD5+P1 \nSPECIALIST \nHigh \npotential \n3 \nIntermediate \nPotential \n2 \nIn its \npotential \nFails \n1 \n1 \nComplies \npartially \n2 \nComplies \n3 \nExceeds \npartially \n4 \nExceeds \nconsistently \n5 \nPERFORMANCE \nPOTENTIAL \n34 \nSustainable \nforest growth \nGlossary of \nterminology or phrases \nMateriality \ntopics \nList of \nacronyms \nProduction \nprocesses \nGRI Table of \ncontents \nResponsibility \ntowards people \nCommitment of \nour company","SUSTAINABILITY REPORT \nAfter finishing the calibration phase, we start the feedback \nstage and definition of development indexes for \nour collaborators. \nThis process is carried out in a meeting with each \ncollaborator, in which strengths and opportunities \nfor improvements are identified. We establish \ndevelopment indexes through the 70\/20\/10 \n14 \nmethodology, that allows closing gaps and supporting \nthe employee through an alignment of expectations and \nfulfillment of commitments. \nPersonnel training \nGRI 404 (103-2, 103-3), GRI 404-1, GRI 404-2. \nFor us, matching the strategic demands of each job with \nthe aptitudes of the collaborators is essential. Therefore, \nwe analyze the gaps between future needs and current \naptitudes to plan the annual training schedule, without \ndisregarding legal requirements, norms and certifications. \nAccording to the survey of training needs undertaken in \n2020, during 2021, 9,060 hours of training were given, \nachieving an average of 16.6 hours of training per worker . \n15 \nFor all the hierarchical levels and in all the processes of the \ncompany there is a budget allocated for the development \nof technical and soft skills . All the requirements are \n16 \nregistered in the Annual Training Plan, we consider the \nfulfilled activities carried out in the expected time. \n14 \n 70% on-the-job training, 20% coaching, and 10% formal instruction. \n15 \nThe data is total, since in the different training events we have a diverse population, we summon \ncollaborators from different processes and we do not segregate the information by line of work. \n For evidence of compliance with the Training Plan, we perform monthly status updates in the same \ndocument. At the moment we have reached 661 individuals in the different training events, considering \nsome people can attend several events. \n16 \nGRI 404-2 \n. The company does not carry out programs to help business transition, but it does develop \nquality skills in its workers throughout their professional career in Aglomerados Cotopaxi. \nEvaluation and effectiveness of training \nWorkshops are evaluated in a survey that scores the \ndegree of satisfaction of the participants with respect to \nthe content, instructor performance and logistics. In case \nof massive training a representative random sample of \nthe participants perform of the evaluation. The results \nare made available to the internal facilitator for feedback \nand improvement. In the case of external facilitators, if \nthe results of the evaluation are satisfactory feedback is \nprovided to maintain the level of service. When the results \nare unsatisfactory feedback is provided to define action \nand implement plans to close gaps and accomplish the \nobjective of the event. \nOn the other hand, to evaluate the effectiveness of the \ntraining or formation programs; the application of what \nhas been learned to the workplace, and how the worker \nintegrates learning and improves target practices are \nevaluated. If necessary, in certain trainings, the instructor \nverifies the level of acquired knowledge through the \napplication of exams or technical tests. \n35 \nSustainable \nforest growth \nGlossary of \nterminology or phrases \nMateriality \ntopics \nList of \nacronyms \nProduction \nprocesses \nGRI Table of \ncontents \nResponsibility \ntowards people \nCommitment of \nour company","To summarize, Aglomerados Cotopaxi has different pro \n- \ngrams through which it implements practices to attract, \nkeep and develop its employees, according to the iden \n- \ntified needs. This year we focused on quality issues and \npractices, critical for our operations. In addition, we have \npromoted development programs tied to the strategy that \nfoster processes of continuous improvement and quality \nin all the organization levels: \n\u2022 \n Technical or development training such as: Leadership, \nSix Sigma, Innovation, Ambassadors of Change, \nIntegral Brigades, Cotopaxi Crece Contigo ( obtaining \nhigh school diploma for employees of different \nprocesses of the company). \n\u2022 \n Process of identification of substitutes for critical \npositions 2021 (Management and direct reports). \n\u2022 Development plans for the company\u00b4s talents \nidentified in the potential matrix resulting from the \nannual performance evaluation. \nWe have different programs \nthrough which we implement \npractices to attract, \nkeep, and develop \nour employees \nTraining the forestry employees on the \nAglomerados Cotopaxi Bike Park premises \n36 \nSUSTAINABILITY REPORT \nSustainable \nforest growth \nGlossary of \nterminology or phrases \nMateriality \ntopics \nList of \nacronyms \nProduction \nprocesses \nGRI Table of \ncontents \nResponsibility \ntowards people \nCommitment of \nour company","SUSTAINABILITY REPORT \n3. Occupational \n safety and health \n3.1 COVID-19 \nCOVID-19 Mitigation \nGRI 403 (103-2, 103-3). \n In order to mitigate the effects \nof the pandemic in the health of our team, we developed \na contingency plan to avoid the infection and spread of \nCOVID-19, thus supporting the reactivation of productive \nactivities. Case identification and the health care of our \nemployees were at the center of the decision making. \nThe Management Committee identified four fronts of \nanalysis and responsibility for daily decision making at \nthe height of the pandemic. \n\u2022 People: biosecurity protocol, solidarity basket, \nvirtual entertainment activities (yoga, cooking), \ncommunication plan focused on three aspects: \npsychological, work and family. \n\u2022 Production: Improvement in production efficiencies \nand product availability. \n\u2022 Financial: care and management of resources. \n\u2022 Commercial: secure provisioning for our customers \nWe handled procedures for identifying and managing \nsuspect, probable and confirmed cases. For the \nconfirmation or ruling out cases, we used PCR or antibody \ntests that allowed us to activate biosafety protocol when \nnecessary. In 2020 there were 64 cases among our direct \ncollaborators and 56 cases in 2021.We had no fatalities, \nbut we are sorry for the losses that did occur in the \nfamilies of our collaborators. \nOur industrial and forestry operations ensured their \nfunctioning with the implementation of biosecurity and \ncapacity protocols. For our administrative positions, we \ndefined measures that supported the continuirty of the \noperations. When possible, the collaborators worked \nfrom home, and then throughout the year, the progressive \nreturn was implemented with all the necessary \nbiosecurity protocols to reduce the risk of contagion. \n37 \nSustainable \nforest growth \nGlossary of \nterminology or phrases \nMateriality \ntopics \nList of \nacronyms \nProduction \nprocesses \nGRI Table of \ncontents \nResponsibility \ntowards people \nCommitment of \nour company","SUSTAINABILITY REPORT \nSupport of vaccination program of the \ngovernment of Ecuador \nUpon learning of the \ninitiative of the national \ngovernment for the \nimport and distribution \nof vaccines and the \nneed for support of \nprivate companies. \nAglomerados Cotopaxi, \npromoted the signing \nof alliances with \nindustrial companies in \nthe province, with the \npurpose of initiating \nthe vaccination plan for its collaborators, families and the \ncommunity in general. Our management made it possible \nfor 8,212 doses to be delivered for protection against \nCOVID-19. \n3.2 Health and Safety Management \nGRI 403 (103-2, 103-3). \n Our industrial safety department \nand occupational health department focus on prevention, \nso we can trust the workplaces are safe and healthy . \n17 \nThe purpose of the preventive work we carry out is to \nsafeguard the integrity of the workers of the industrial \nplant, administrative personnel, forestry workers, as well \nas the assets of the company. \n17 \nPreventive medicine is the approach of the health management in our company. Under this concept, the percentage distribution of work is focused 80% in our Health Surveillance Plan, and 20% in curative \nmanagement. Preventive management defines annual morbidity as the main indicator, this is reported monthly, and highlights the number of medical attentions per month, by area and by diagnosis. This \ninformation allows us to identify preventive and corrective actions, in case the indicators are not at the acceptable levels and require immediate action. \n The surveillance plan is contemplated according to the needs of the company and the criteria of the responsible doctor. It defines objectives, monitoring and compliance based on each of its programs, fully \ncovering the company\u2019s staff. \n We have a medical dispensary in our facilities for employee use whenever required. The dispensary serves to address primary care situations. If the employee requires further analysis, exams, or consultations \nthat we cannot provide, they are transferred to an external health facility. \nIn addition to compliance with \nnational legislation and international \nagreements on occupational health \nand safety (OHS), we ensure that we \ncomply with our internal policies. \n\u00b7 \nOur OHS objectives and goals \nfocus on the search for \ncontinuous improvement of \nthe company, which guarantees \nthe reduction of exposures to \noccupational risk factors. \nActions include both the \nindustrial and forestry part, \nof without \n sacri\ufb01cing the qu \nality \nof the product and the reduction \nenvironmental impacts. \n\u00b7 \nWe comply with the \ncommitments suscribed \nvoluntarily. \nThis year we have \nmonitored particulate \nmatter and \noccupational noise \nthroughout the \nindustrial plant, \nalso lighting in \nmaintenance areas \nand ergonomic \nissues in critical \nwork stations. \n38 \n1,516 1,480 \n1,167 \n646 \n1,827 \n5,156 \n- \n602 \n970 \n3,052 \nWorkers & \nfamily members \nCommunity \nEdimca\/ \nSuppliers \nAdditional \ncompanies \nTotal \nPOPULATION \nCOVID-19 VACCINATION PLAN \nSustainable \nforest growth \nGlossary of \nterminology or phrases \nMateriality \ntopics \nList of \nacronyms \nProduction \nprocesses \nGRI Table of \ncontents \nResponsibility \ntowards people \nCommitment of \nour company","Industry employees \nSustainable \nforest growth \nGlossary of \nterminology or phrases \nMateriality \ntopics \nList of \nacronyms \nProduction \nprocesses \nGRI Table of \ncontents \nResponsibility \ntowards people \nCommitment of \nour company","SUSTAINABILITY REPORT \nAmong other aspects of BBS: \n\u2022 We started with the noise reduction program in our \noperations, measuring it in 100% of the industrial \nplant, and identifying critical areas. Of the five zones \nthat are outside tolerable levels, four will be protected \nwith soundproof walls, and the fifth will be relocated; \nall in the first quarter of 2022. \n\u2022 We implemented a fire protection system in the value \nadded lines, MDF, sanding and sorting, guaranteeing \nthe response to possible adverse events. \n\u2022 We executed the project to improve the suction in \nthe chipboard line, by placing extraction systems for \nformaldehyde and therefore reduced the exposure of \n19 \nour collaborators to the chemical. These conditions \nare constantly monitored and maintained within the \npermissible exposure limit established by OSHA \n(Occupational Safety and Health Administration), \n which indicates a weighted maximum concentration \nof 0,75 ppm on average, during the eight hour work \nshift and 40 weekly hours, on the majority of the \nproduction lines. This project will continue throughout \nthe following year to control emissions that exceed the \nlimits at critical points of the MDP and MDF line. \nFollowing our procedures and annual planning , we carry \n18 \nout monitorings in order to keep track of the different \nexposures to which workers are subjected. The results of the \nmonitoring are analyzed in order to propose improvement \nactions, and to offer the required personal protective \nequipment. The results are communicated to management, \ndepartament heads in charge of the processes, and also to \nthe Joint Health and Safety Committee. \nBehavior Based Security (BBS) \nAglomerados Cotopaxi has the firm decision to offer \nits employees the safest possible environment for the \ndevelopment of their activities. Thus, since June 2021, \nwe are implementing this program to improve the safety \nin behaviors of our employees. We are aware that this \nprogram requires a cultural change in all of us who make at \nAglomerados Cotopaxi, since it demands from supervision \nvisits with observation and suggestion capacity, to changes \nin daily work routines. We are fully confident that with the \n2457 hours of training per year dedicated to (BBS), we \nhave started with momentum, and we are all developing \nawareness of individual responsibility for the safety of all. \n18 \nAnnual monitoring plan 2021: occupational noise, radiation, ionizing radiations, formaldehyde, lighting of administration areas in the Quito offices, measurement of particulate matter, and psychosocial risk \nassessment. \n 19 \n Formaldehyde-based resins are used in the manufacture of engineered and composite wood products used in cabinets, countertops, trim, furniture, shelving, stair systems, flooring, wall cladding, support \nbeams and trusses, and many others. furniture and structures for the home. Adhesives that make use of formaldehyde as a fundamental element are exceptional bonding agents, providing high-quality \nperformance that is very economical. \n40 \nSustainable \nforest growth \nGlossary of \nterminology or phrases \nMateriality \ntopics \nList of \nacronyms \nProduction \nprocesses \nGRI Table of \ncontents \nResponsibility \ntowards people \nCommitment of \nour company","SUSTAINABILITY REPORT \nIt has been very important to follow BBS\u00b4s \nrecommendations regarding the safety culture program. \nBy giving each of the process leaders direct responsibility \nfor the safety of their teams, the conditions of the \nworkplaces have improved, and advanced awareness in the \nself protection of the employees is evident. \nGRI 403-2, GRI 403-3. \n After continuous work that seeks \nto improve the processes for the safety of our employees, \nwe have achieved the following results in Occupational \nHealth and Safety for the year 2021. \n574 \n13 \n32 \nNo. of \nPersons \nNo. of disabling \nAccidents \nNo. of \nIncidents \n596 \nDays of \nDisability \n1,255,886.97 \nPerson-hours \nworked \n5,863.92 \n89.9 \n(compliance target \n80) \n86.12 \n(compliance target \n85) \nPerson-hours of \nindustrial safety \ntraining \nCompliance with \nimprovement actions \ngenerated in BBS \nsecurity visits \nBBS Safety \nCulture Program \ncompliance, weekly \nplanned visits. \n2.07 \n(there is a 20% \nreduction compared \nto 2020) \n5.10 \n(We had more \nincidents than \nin 2020) \n94.91 \n(Accidents were \nmore severe than \nin 2020) \n45.8 \nAccident \nfrequency \nrate \n20 \nIncident \nfrequency \nindex \n 21 \nSeverity \nindex \n22 \nSI\/FI \nrisk rate \n0 \n0 \n0 \n1.94% \nAbsenteeism \nindex \n3,053 \nLost Days \nOccupational \nfatalities \nTypes of \noccupational \ndiseases \nWorkers with high \nincidence or high \nrisk of diseases \nrelated to their \nactivity \n0 \nDeaths from \noccupational \ndiseases \nTypes of occupational \naccidents \n11 \nTrauma or \ncontusion \n1 \nAmputation \n1 \nEntrapment \n20 \nAccident frequency rate=(number of accidents x 2000000 \/ total person-hours worked) \n21 \nIncidental frequency index=(number of incidents x 200000 \/ total person-hours worked) \n22 \nSeverity rate=( number of days lost x 1000 \/ total person-hours worked. \n20% \n reduction of \naccident frequency \nrate compared to \n2020 \n2021 results in Occupational Health and Safety \n41 \nSBC \nSEGURIDAD BASADA EN EL COMPORTAMIENTO \nINFORM \nOBSERVE \nWAIT \nSTEP UP \nPROCEDE \nE \nIMPROVE safety STANDARDS \nMINIMIZE UNSAFE BEHAVIORS \nACHIEVE a BEHAVIORAL CHANGE \ntowards safety \nKEY STEPS TOWARDS A \nSAFETY CULTURE \nSustainable \nforest growth \nGlossary of \nterminology or phrases \nMateriality \ntopics \nList of \nacronyms \nProduction \nprocesses \nGRI Table of \ncontents \nResponsibility \ntowards people \nCommitment of \nour company","SUSTAINABILITY REPORT \norganize - and starting the third. So, all of the factory and \nthe nursery comply with the corresponding labeling; the \nproduction plant is standardized up to the third S, \nand the staff is empowered in terms of organization \nand cleanliness. \n3.3 Internal committees \nGRI 102-41, GRI 403-1, GRI 403-2, GRI 403-4. \nIn accordance with the law we have a Joint Health and \nSafety Committee at work , in addition we rely on the 5S \n23 \nCommittee of order and cleanliness . Both committees \n24 \nfulfill their responsibility to conduct safety visits aimed at \nreducing the exposure to risks and improving the work \nenvironment. With the development of the Behavior Based \nSecurity Program, we established the BBS Committee , \n25 \nwith the commitment to make visits to evidence safe and \nunsafe behaviors of the workers. \nHealth and safety training \nThis year we celebrate the election of the new joint \ncommittee.This group, which develops its activities hand \nin hand with industrial safety, carried out an information \ncampaign, with messages in canvases about self care \nfor industrial and forestry areas, and, in digital form, in the \ncompany\u2019s media for administrative personnel. \nThe 5S program has been promoted by the committee \nof the same name, closing the first two S - classify and \n5 \nRespect and \ncare of \nresources \n$ \n! \nSEIRI-CLASSIFY \n1 \nSEITON- \nORGANIZE \nOrganize your \nwork space in \nan ef\ufb01cient \nmanner \n2 \nSEISO- \nCLEAN \n3 \nKeep your \nworkspace \nclean \nKeep good \nworking \nhabits and \nimplement \nnorms \n4 \nSEIKETSU- \nSTANDARDIZE \nSHITSUKE- \nDISCIPLINE \nEliminate what \nis not used from \nthe work space \n23 \n The Joint Health and Safety Committee is made up of 12 workers, 50% as representatives of \nthe employer, and the other 50% representing the workers. \n24 \n 5S Committee of order and cleanliness is made up of approximately 21 workers with equitable \nrepresentation from our entire organization. \n25 \n BBS Committee is made up of 68 workers with representativeness of the entire company. This \nis not a committee that analyzes results, just the people who make the visits. \n42 \n\u00a1Great \n5\u00b4S \nshindig! \nKeep \nClassify \nOrganize \nClean \nStandarizer \nSustainable \nforest growth \nGlossary of \nterminology or phrases \nMateriality \ntopics \nList of \nacronyms \nProduction \nprocesses \nGRI Table of \ncontents \nResponsibility \ntowards people \nCommitment of \nour company","We raise needs and concerns in different spaces of the \norganization, these allow us to establish opportunities \nfor improvement, including the annual training plan. \nIn 2021 we discussed issues directly related with our line \nof business, specifically mechanical, physical, ergonomic \nand chemical risks; psychosocial risk and training on \nthe emergency plan. We also review health issues such \nas,immunizations, nutrition, and drug use, sexual and \nreproductive health and emotional work . \n26 \n3.4 Forest collaborators \nAC1 \n(GRI 103-2, GRI 103-3). \nThe forestry collaborators \n27 \nof Aglomerados Cotopaxi are employees with an \nindefinite contract, and have long term work and all \nlawful benefits. They have an 8 hour workday, and \ntransportation to the forest plantations according to the \nplace where their work is scheduled. At the end of their \nworkday, the transport service takes them as close as \npossible to their homes. Our forestry staff does not have \ncamps in the workplaces as they return home every \nafternoon. \nFor the forestry operations, the workers have mobile \nstations that provide comfort and safety on the job, \n26 \n These trainings are directly coordinated by the SST as part of the prevention program, and are \nnot added to those coordinated by Human Talent. \n27 \nGRI 408 (103-2, 103-3), GRI 408-1. \n The company does not hire minors within its operations. \nAs part of the sustainability strategy, a risk identification matrix has been programmed to \ndevelop to identify the risks of child labor based on the list of contractors and suppliers. \nForestry management employee \n43 \nSUSTAINABILITY REPORT \nSustainable \nforest growth \nGlossary of \nterminology or phrases \nMateriality \ntopics \nList of \nacronyms \nProduction \nprocesses \nGRI Table of \ncontents \nResponsibility \ntowards people \nCommitment of \nour company","SUSTAINABILITY REPORT \nThe purpose of these conditions is to safeguard the \nintegrity of the workers of our specialized service \nproviders while performing the contracted service, and \nensure compliance with occupational safety and health \nstandards. For this reason, our suppliers are subject to \nprior compliance with safety requirements and internal \ncontrols, both in engineering as in personal protection. \nSpecific actions that are carried out in our operations: \nThe external staff has access to the services we have in \nAglomerados Cotopaxi, such as bathrooms, sinks and \nrefreshments, access to our repairshops, medical care, \nadvice on SST, among others. \nThis year, all our suppliers received the Safety Manual for \nspecialized service providers, while the transportation \nspecially for eating and rest times; water is always available \nin large bottles in the workplace. \nThe provision of personal protective equipment is carried \nout in accordance with the requirements of each job, and \nthe identified risks, as well as the compliance with the \nsecurity protocol. \nThe APIR Risk Matrix allows us to evaluate the particular \n28 \nrisks of the activities of the forestry operations, therefore, \neach area has a supply of clothes and personal protection \nequipment appropriate for the different activities, which are \nrenewed according to their wear and use. \n3.5 Specialized service providers \nSpecialized services \nAC2 \n (GRI 103-2, 103-3). \n We hire specialized services to \nsupport our regular operations. In this context, we have \na shared commitment in which we make sure to hire \ncompanies responsible for the safety of their workers. \nOur suppliers, make sure to comply with our health \nand safety requirements to minimize the risk exposure \nof their personnel. In Aglomerados Cotopaxi we have \ncontrol and monitoring practices that ensure compliance \nwith the rules by service providers. This has allowed it to \ncontribute to a culture of safety and reliability in the day \nto day activities of service providers. \n28 \n The APIR Risk Matrix (aspects, dangers, impacts and risks), based on a Colombian standard \n(GTC45), identifies and evaluates risks, calculates exposure, and measures the probability \nof an accident and its possible consequences. This process rates the risk as improvable, \nacceptable with changes or not acceptable, and includes risk control (eliminating, replacing, \nplacing engineering or administrative controls and use of protective equipment). \nReview \ndocumentation \nsent by contractor \n(social security, \nnegative COVID-19 \n test, registry of \ncontractor where \nthe work \ndescription, and \nprevention actions \nare indicated) \nSafety \ninduction \nSafety work \npermits \nare generated \nfor critical \njobs \nPermanently \nsupervise \nthe work \ndone in \nthe plant \nWe run security \nchecks by \nthe people in \ncharge of \nthe visitors \n44 \nResponsibility \ntowards people \nCompromiso de \nnuestra empresa \nCrecimiento \nforestal sostenible \nGlossary of \nterminology or phrases \nIndex of GRI \ncontents \nProduction \nprocesses \nMateriality \ntopics \nLista \nde siglas","group received training in industrial safety and the \nuse of personal protection equipment. Additionally, \nwe implemented a new requirement for suppliers who \nperform high risk work, either at height or in confined \nspaces, by having them go through a medical check up \nto ensure they are in good health conditions to perform \nthese types of tasks. \nIn Aglomerados \nCotopaxi we have \ncontrol and monitoring \npractices that ensure \ncompliance of the rules \nby service providers \nThe outsourced service personnel are required to wear personal protection gear \n45 \nSUSTAINABILITY REPORT \nSustainable \nforest growth \nGlossary of \nterminology or phrases \nMateriality \ntopics \nList of \nacronyms \nProduction \nprocesses \nGRI Table of \ncontents \nResponsibility \ntowards people \nCommitment of \nour company","SUSTAINABILITY REPORT \n4. Local economic \ndevelopment \n4.1 Relationship with \n the communities \nGRI 203 (103-2, 103-3), GRI 413 (103-2, 103-3), GRI \n413-1, GRI 431-2. \n Aglomerados Cotopaxi gives preference \nto people from local communities for employment \nopportunities, and purchase or provisions of goods \nand services for the company\u2019s operations. The area \nof direct influence is defined by various factors of \nrelationship and connection, \u201cadjoining\u201d being the most \nimportant characteristic. In this context, we have several \norganizational instances, ranging from a neighborhood to \na cooperative, passing through a legal commune; we refer \nto all of them as Adjoining Associative Forms. \nSupported by the annual report of the social environment, \nthe possible impacts of the operations are identified, \nand managed as per the descriptions in the conflict \nmanagement manual and other documents of the \ncompany, such as the community relations process and \nthe forestry management plan. \nOur social and environmental impacts are addressed in \nthe Environmen Management Plan of our industrial plant \nand the Forestry Management Plan, which are reported \nannually to FSC and the Environment Director of the \nDecentralized Autonomous Government of Cotopaxi. \nWe carry out public consult, visits and socialization of \nour social programs, to generate and receive opinions. \nRegarding the reception of complaints and claims, \nwe maintain an informal communication process, \nby communicating directly with those involved, who come \nto us with absolute trust. \nGRI 102-42, GRI 102-43, GRI 102-44. \n Every five years, \nwe carry out a socio-economic characterization study \non our area of direct influence, which allows us to \nhave demographic information, and collect a set of \ntestimonials and perceptions. This information guides \nthe planning of our projects, and serves as a base for \nproductive technical actions of forestry and industrial \nactivity, which we follow rigorously, with the purpose \n46 \nSustainable \nforest growth \nGlossary of \nterminology or phrases \nMateriality \ntopics \nList of \nacronyms \nProduction \nprocesses \nGRI Table of \ncontents \nResponsibility \ntowards people \nCommitment of \nour company","SUSTAINABILITY REPORT \n of avoiding impacts or actions that disturb the daily life \nof the Adjoining Associative Forms (AAF), in particular, \nand the local communities in general. As of 2021 we \nhave identified 22 AAFs, with a total population of 5,032 \ninhabitants, located in the parishes of Al\u00e1quez, Mulal\u00f3, \nPastocalle, Tanicuch\u00ed and Chugchil\u00e1n. \nThe social dynamics of our surroundings and \ncommunity interaction style that we maintain in \nAglomerados Cotopaxi makes the bond with the \ncommunity permanent. This practice has allowed us \nto maintain a favorable social network and guarantee \nthe normal functioning of the industrial and forestry \noperations. The projects we execute are also a great \nopportunity for connection, that allows us to keep fluid \ncommunication channels, and strengthen the goodwill \nof the community towards our operations. We promote \na mutual social auditing to avoid negative impacts with \nour neighboring communities . \n29 \n4.2 Community engagement \n programs \nGRI 413 (103-2, 103-3) GRI 413 (103-2, 103-3), \nGRI 203-2, GRI 408 (103-2, 103-3), GRI 408-1, GRI 411 \n(103-2, 103-3). \nOur Community Relations process is based \non the precautionary approach of the Forest Stewardship \nCouncil (FSC) principle 4. We respect the human rights \nand social rights of local communities, particularly the \nindigenous - we make sure to allow community customs \nto coexist with our business practices. We do not tolerate \nchild labor in our facilities, nor in community outreach \nprojects; however, we respect the custom of family \naccess to spaces related to water care, shepherding and \nfirewood collection. No child is allowed to transit without \na responsible adult in our forestry operations. These \npractices have ensured that so far we do not have any \nrelated claims. \nThe relationship with local communities is based on an \napproach of transformation from conflicts to collaborative \nprocesses, and it is executed through our health, education, \neconomic development and social dialogue programs; \nfrom these, the projects and relationship activities with \nthe local communities emerge. We regret to inform that \nthe pandemic caused by COVID-19 made it impossible for \nus to execute projects closely linked to the schooling of \nchildren in our area in 2020 and 2021.These projects were \ncarried out on an annual basis and had a significant impact \nin our community relations, we look forward to execute \nthem again on 2022. \n29 \nGRI 411-1. \nTo date we have not received complaints for violations of rights of indigenous peoples, the neighboring populations are mestizo and indigenous according to their self determination, \n47 \nSustainable \nforest growth \nGlossary of \nterminology or phrases \nMateriality \ntopics \nList of \nacronyms \nProduction \nprocesses \nGRI Table of \ncontents \nResponsibility \ntowards people \nCommitment of \nour company","Education \nHealth \nSocial \ndialogue \nEconomic \ndevelopment \n100 \nmedical attentions with \n2,000 \ndollars of investment \n(not carried out in 2020 and 2021 due to the pandemic) \n\u00b7 \nDelivery of food rations, face masks, rubbing alcohol to communities. \n\u00b7 \n Annual caravan of oral and visual medical attention for children \nwith \n+ 3,500 \ndollars \n of Finance Motion \n10,000 \ndollars \n1,119 \nfamilies \nHealth \nEducation \n27 \n signed agreements \n135 \nfamilies with savings of \n1,800 \ndollars per family \n16 \n families with an investment of \n2,000 \n dollars and sales of \n2,000 \n dollars \n\u00b7 \nConnected and safe: donation of products for community internet space \n\u00b7 \nBike Park: bike trails and hikes within our forest plantations. \n\u00b7 \nForest imaginary: educational walk through our forests. \n\u00b7 \nImprovement of educational infrastructure through in- kind donations of our \nproducts. \n\u00b7 \nCommunitary shepherding: use of spaces in our forests for shepherding of farm \nanimals from neighboring communities \n\u00b7 \nChuropinto Dehydrated products: a local enterprise that supplies from non-timber \nproducts collected in our plantations. \n\u00b7 \nWater Governance: Subscription of agreements with irrigation and potable water \nboards, in order to ensure the harmonious use of a shared resource \n4,500 \ndollars for one community \n200 \nchildren with \n2,000 \n dollars of investment \n (not carried out in 2020 and 2021 due to the pandemic) \n9,000 \ndollars for one community per year (not carried out in \n2020 and 2021 due to the pandemic) \nEconomic development \nSocial dialogue \n70,000 \ndollars and \n12,827 \n visits \nLocal \ncommunities \non the area \nof direct \ninfluence \n48 \nSUSTAINABILITY REPORT \nSustainable \nforest growth \nGlossary of \nterminology or phrases \nMateriality \ntopics \nList of \nacronyms \nProduction \nprocesses \nGRI Table of \ncontents \nResponsibility \ntowards people \nCommitment of \nour company"]