["SUSTAINABILITY REPORT \nHealth program \n30 \nMedical Caravan Project \nOnce a year, we serve the entire school age child \npopulation of a parish in the area of direct influence. \nWe carry out medical consultations for visual \nand oral health, with the support of an institution \nspecialized in mobile health brigades, and in coordination \nwith the corresponding Parish Government. \nIn the years 2020 and 2021 the annual health caravan \nwas not carried out to prevent contagions during the \npandemic. However, we promoted health care with the \ndelivery of face masks, rubbing alcohol and information \nto promote biosafety standards and food rations to \n1,119 families; this activity was carried out with a funding \nof USD 10,000 from Finance in Motion and a counterpart \nfrom Aglomerados Cotopaxi of USD 3,500 dollars. \nEducational program \nForest Imaginary Project \nThis project aims to build a forestry culture in \nchildren in the area of direct influence. In a playful \nway we made a tour through all the stages of \nforestry cultivation, visiting the seed in the nursery, \nthe planting of trees in the field, the pruning and \nthinning activities, until we reached the final harvest of \ntrees. Important aspects of the visit are the water sources \nand the activities for their conservation within the forestry \nplantations. \nImprovement of Educational \nInfrastructure \nThrough the donation of our Fibraplac and \nDuraplac boards and solid wood, every \nyear with the exception of 2020 and 2021, \nwe contribute to the improvement of the educational \ninfrastructure of the area of direct influence; this work is \ncarried out with the labor contribution of parents. \nDuring 2021, due to the pandemic we minimized \ndonations to educational institutions. However, we \nsupport proposals for post-pandemic economic \nreactivation through donations to decentralized \ngovernments of the province with company products for \nan equivalent of 9,808.66 dollars. \nConnected and Safe Project \nWe signed an agreement with Plan Internacional \nEcuador, and supported the project \u201cConnected \nand Safe Communities\u201d that aims to bring \nconnectivity to communities with difficult \naccess to this service; generating a permanent \nand safe space for boys, girls and teens who need access \nto quality internet, thus promoting the development of \ndigital skills. \n30 \n Due to COVID-19 pandemic, we have not been able to execute some permanent community relations projects in 2020 and 2021. \n49 \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","A very happy beneficiary of our community relations programs \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","SUSTAINABILITY REPORT \nconservation areas. A place that has environmental \neducation and recreation as an objective, and also offers \nexcellent service to all its users. \nAglomerados Cotopaxi\u00b4s \nBike Park \n started operations in \nMarch 2020. During 2021, investments close to 70,000 \ndollars were made for the development and maintenance \nof the tracks, both for bicycles as well as for walks, \nplaygrounds, service and food areas. 12,827 people \nvisited the \nBike Park \n throughout the year 2021. We also \nsupport the organization of adventure competitions in \nour plantations, such as: Proyecto Aventura, Sierra Loma, \nVuelta al Cotopaxi, and Cotopaxi above 4000. \nAglomerados Cotopaxi donated desks, chairs and bases \nfor electronic devices for 34 individual workspaces to the \ncommunities of Langualo Grande and San Ram\u00f3n, for a \nreferential amount of 4,500 dollars. \nBike Park Project \nAglomerados Cotopaxi \nForestry plantations are a sustainable \nalternative for wood consumption in the \nworld; forestry cycles generate a wide \nvariety of valuable environmental goods and services, \nsuch as carbon fixation, water regulation, landscape, \namong others. Aglomerados Cotopaxi\u00b4s \nBike Park \n takes \nadvantage of this possibility to provide the community \nwith entertainment and fun spaces within 1,300 hectares \nof the San Joaqu\u00edn forestry property; while achieving the \ncreation of environmental and communication spaces, \nthrough the concepts of responsible forestry management \nand access to the ecosystem services of plantations. \nAll the spaces of the \nBike Park \n have been built with wood \nfrom our forest\u2019s crops, which subtly introduces the visitor \nto the world of sustainable use of cultivated wood. \nThe \nBike Park \n has more than 30 kilometers of tracks, \nsegmented by levels, that can be used both by \nprofessionals with years of experience, as well as by \nbeginner cyclists and their families. And for those who \nprefer to enjoy nature on foot, there are wonderful \ntrails along which to experience the forest and some \nAglomerados Cotopaxi \n Bike Park \n course map \n51 \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","Aglomerados Cotopaxi Bike Park, a forestry experience \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","SUSTAINABILITY REPORT \nSocial Dialogue Program \nWater Governance Project \n About 15,000 people, organized in Irrigation \nBoards, from the parishes that border the \nforestry patrimony of Aglomerados Cotopaxi, \nreceive from the Ecuadorian State the \nauthorization for the use of water sources for human \nconsumption, irrigation and animal watering. \nThese sources are born from, or cross through our forestry \nproperties. In this context, the Water Governance project \nemerges, as a space for the use of a shared resource \nand the full exercise of rights of water users, and ours as \nowners of the land. \nThis project is based on: \n\u2022 The subscription of an agreement in which the basic \nconditions for the exercise of rights are established. \n\u2022 Water monitoring and the measurement of flow rate to \ndetermine the health of catchment areas. \n\u2022 The coordination of activities, mainly for the \nmaintenance and improvements of the infrastructure. \n\u2022 Joint decision making in the context of a management \ncommittee. \n\u2022 Permanent socialization in the General Assemblies, \nwith special emphasis on the monitoring results. \nOf the 47 water systems or boards that have their \ncatchments in the lands of Aglomerados Cotopaxi, 27 \ngovernance agreements have been signed until the end of \n2021. Signing of these agreements respond to the needs \nof the beneficiary communities. \nWater governance project \n53 \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 \neight years. The beneficiary families sign a document with \nagreements and commitments that they must fullfil while \ncarrying out their shepherding activities on the grounds of \nAglomerados Cotopaxi. In this way, each family saves a \nvalue close to 1,800 dollars per year, by not buying fodder \nat the market, especially in the summer months. \nDuring 2021, 800 hectares have been allocated to \nthis project, benefiting 135 families with community \nshepherding. \nEconomic Development Program \nDehydrated Mushrooms Project \nThis \n project uses non-timber forest products \ncollected within our forest plantations, such as \nboletus mushrooms (suillus luteus), medicinal \nand aromatic herbs such as the horsetail \n(equisetum myriochaetum) and zunfo (Clinopodium \nnubigenum). The harvest products, after a dehydration \nprocess, are packed for marketing, \nIn 2021, this project was consolidated by supporting \nthe development of the Churopinto dehydrated products \nbrand, for the direct marketing of dehydrated mushrooms, \nmedicinal and aromatic herbs in combination with \ndehydrated fruits and natural sweeteners. \nThis project benefits 16 families in the Santa Catalina de \nChuropinto community. In 2021, Aglomerados Cotopaxi \nmade an investment of 2,000 dollars and the community \nwas able to market, from September, about 2,000 bags \nof 15 grams of herbal tea and 150 bags of dehydrated \nmushrooms for an amount close to 2,000 dollars. \nCommunitary shepherding \nThis project contributes to the economy of \nfamilies neighboring the forestry plantations. \nWe facilitate community shepherding for the \nfattening of small livestock in certain spaces \nwhen our forestry plantations are older than \nDehydrated non-timber forest products \n54 \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 \nThe abundant pasture that grows in the forestry plantations allows for \ncontrolled grazing by animals from the neighboring communities \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 \nSustainable \nFOREST \ngrowth \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"," 1. Key figures \nForest patrimony \narea 2021 \n17,629.41 \nhectares \nLAND USE \n67.28% \n28.85% \n3.87% \nKey \n\ufb01gure \n1 \ncompany owned forests \n74.89% \nthird party forests \n25.11% \nKey \n\ufb01gure \n2 \nPlantation \nConservation \nOther uses \nCompany owned \nharvested areas \nin 2021 \n523 \nhectares \nKey \n\ufb01gure \n3 \nNursery \nproduction 2021 \n1.4 \nmillion plants \nKey \n\ufb01gure \n5 \nof conservation areas, where \nwe maintain a healthy \necosystem and ensure a \nhabitat for more than 10 \nspecies of vulnerable fauna. \nSince 2011 \nBiodiversity \n5086 \nKey \n\ufb01gure \n6 \n100% \nCompany \nowned forests \nwith FSC\u00ae \nForest Cer \nti\ufb01cation \nFSC C105861 \nSources of \nwood supply \nKey \n\ufb01gure \n4 \nof planted area \n4.4% \nhectares \nCorporate social responsibility \nForest \ufb01re \ncontrol program \nComprehensive pest \nmanagement \nForest safety \nProduction \nof plants \nSoil \nprepatation \nEstablishment \nGermination \nAcclimatization \nand delivery \nMaintenance \nof plantations \nPruning \nPlantation \nharvest \nBiomass \nBark \nfor \ncompost \nForestry research and development \nIndustrial \nproduction \nSeed orchard \nImported seed \nGenetic improvement \nprogram \nForestry support \nPlant production \nSilviculture \nHarvest \nthinning \nPlantation forest management \n57 \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 \n2. Territorial \n planning \n2.1 Sustainable Forest Plantations \nWe have 44 years of sustainable forest management. \nThis encompasses the management and use of \nrenewable forestry resources so they maintain the \nbiodiversity, productivity and potential to fulfill \nrelevant environmental, economic and social functions, \nnow and in the future, locally, nationally and on a global \nscale, without causing harm to others. The bases that \nguide our activity are: \n2.2 Forest patrimony \nGRI 102-2, GRI 304-1, GRI 304-3, AC 3.1. \n The properties \nthat make up the forestry patrimony of Aglomerados \nCotopaxi are distributed in the county of Latacunga \nand Sigchos, in the province of Cotopaxi in Ecuador. \nWe maintain 17,629.41 hectares, and we allocate more \nthan 28% for conservation areas . All the properties are \n1 \nregistered in the Ministry of the Environment, Water and \nEcological Transition and the Ministry of Agriculture and \nLivestock. The forestry properties belong to Aglomerados \nCotopaxi and are duly titled. Over the years, the company \nhas bought land with degraded soils and overexploited \nby agricultural and livestock activities to form its own \npatrimony of forestry plantations. \nEconomic: \n The guaranteed supply of wood from \nresponsibly managed forestry plantations in a sustainable \nmanner to the industry. \nSocial: \nForestry management includes a culturally \nappropriate relationship with community participation, \nensuring the economic and social well being of its workers \nand local communities in the long term. \nEnvironmental: \nThe responsible management of the \nforestry patrimony of Aglomerados Cotopaxi contributes \nto maintain and improve the conditions of biodiversity, \nregulations of the water cycle, protection and recovery \nof degraded soils, wildlife refuge, carbon sequestration, \nmitigation of greenhouse gasses and climate change, taking \ncare of the landscape and giving access to recreational areas. \n1 \n This surface area does not include: i) the area of pastures and crops (81.49 ha), ii) areas where \nthe company cannot exercise its right of use (69.92) and, iii) 123.72 ha of gravel extraction. \n A total of 275.13 excluded hectares. \nMore than \n28% \n of \nthe forest patrimony \nis destined to \nconservation \nareas \n58 \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 patrimony \nKEY \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 \nLand use \n11,861.23 \nPlantation \nSurface (in ha.) \n67.28% \n5,085.95 \nConservation \nSurface (in ha.) \n28.85% \n682.23 \nOther use \nSurface (in ha.) \n3.87% \nTotal \n 17,629.41 ha. \n11,770.36 \n56.11 \n30.32 \n1.81 \n2.64 \n11,861.23 100.00 \n99.23 \n0.47 \n0.26 \n0.02 \n0.02 \nPlantation \nland use \nSurface \n(in ha.) \nSurface \n(in %) \nCommercial plantation \nSeed production area \nTesting area \nSeed orchard \nClonal seed orchards \nOverall total \nThe total area of commercial plantations has a volume of \n1.1 MM \nm\u00b3 of wood \n, and given the fact the plantations are in a sustained \ncycle of growth, this would allow a maximum use of \n640 hectares \n, \nwith a harvest volume of approximately \n180.000 m \n3 \n. \nOn August 17, 2021, Aglomerados Cotopaxi signed a \ngratuitous bailment with the Ministry of the Environment \nfor an area of 5 hectares for the installation of \ninfrastructure for the administration, park rangers and \naccess control checkpoint to the Cotopaxi National Park. \nThe duration of the contract is for 15 years; it is worth \nmentioning that the area of the national park begins at 8.5 \nkm away from the Caspi control at 3,600 meters above \nsea level. \nCaspi control \u2013 the area, property of Aglomerados Cotopaxi is bailed to the Ministry of the Environment \n60 \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 SOSTENIBILIDAD 2021 \n2.3 Plant production \nThe plant production is carried out in the San Joaqu\u00edn \nforestry nursery and has a maximum production capacity \nof 3 million plants per year, it has a greenhouse of 4,000 \nsquare meters, and an outdoors acclimatization area of \n10.000 square meters. \nThe pine genetic material used for the reproduction \ncomes from our orchards and seed production areas, \nwhich have had a selection process of more than 20 years \nin our forestry plantations. \n2 \n The substrate uses the bark that has a composting process that lasts approximately \nthree months. \n3 \nMedium Density Fibreboard. \nIn the case of eucalyptus we are establishing the seed \nproduction areas, so we still source from imported seeds. \nThe substrate used for planting is pine bark , that comes \n2 \nfrom the debarking of the sawmill and from the MDF line \n3 \nof Aglomerados Cotopaxi\u00b4s industrial plant; efficiently \ntaking advantage of a byproduct of the production lines. \nLeft to right: Pinus radiata, Eucalyptus nitens and Pinus patula \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 \naverage level of fertility, in addition the soil structure \nand the climate conditions prevent hydric or eolic erosion \nprocesses. On the other hand, to improve the fertility \nand availability of nutrients for forestry species, controlled \nrelease fertilizers are used in the initial stage of \nthe plantations. \nThe machinery used both in the preparation of the \nland and in the stage of forestry harvest, is designed \nto minimize the possible impacts of clearing and soil \nerosion. In addition, the machinery allows safer processes \nfor the personnel and is more efficient in the productivity \nof the tasks. \nTo obtain a good development of forestry plantations, it \nis necessary to carry out a series of silvicultural activities; \nsuch as land preparation, establishment, maintenance, \nsilvicultural management of the plantation and forestry \nprotection. All of these activities are carried out by the \nstaff of the Forestry Management area, which has many \nyears of preparation and experience in these tasks. \nThe preparation of land is carried out in a mechanized \nway with a harrow, which allows improvement of \nthe structure of the soil, and therefore increases the \nproductivity of the plantations, weed controls are carried \nout before the establishment of the plantation. \nSpecies \nThe main species of our plantation are \nPinus radiata \nand \nPinus patula, \n some of the areas are already in the \nthird planting rotation. On the other hand the \nEucalyptus \nnitens \n plantations correspond to the first rotations in \nour patrimony. \nWater \nGRI 303 (103-2, 103-3), GRI 303-3, GRI 303-5. \nOur forestry plantations do not use irrigation water, \nthey are maintained with rain water and with the moisture \nthat the soil retains, only our nursery needs water for its \nproduction. Within the properties there are small farmland \nsections that have permits granted by the National Water \nSecretariat, for the utilization of the assigned water. \n(See chart \u201cLand use\u201d p. 62) \nIn the nursery, the water used for the irrigation process \nand fertilizer application, comes from the San Joaqu\u00edn \nwatershed that supplies a reservoir of 316 m\u00b3. \n4 \nIn 2021, 1.4 million plants were produced with a \nconsumption of 466 m\u00b3 of water. \n2.4 Growth of our plantations \nAC 3.1. \n The type of soil where the forestry plantations are \nlocated is of volcanic origin, and in general has an \n4 \n The concession has a flow rate of 18 liters per second. \n62 \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 avoiding the appearance and spread of possible \nplagues. The trespassing protection is carried out by \nmotorized forest guards, who control the accesses to the \nproperty, avoiding the unauthorized entry of people, or \ndamage to the property. \nCombat of forest fires \nAC 3.2. \n Fire season commonly occurs in the summer \nmonths, from June to September, although in recent \nyears, events have occurred outside of these dates. In the \n2021 fire season, due to favorable weather conditions, \nwe only had 15 days of yellow alert, with 17 foci detected \nnear the forestry patrimony, and 2 within it, affecting \n10,55 hectares of forestry plantation and 5,90 hectares of \nother uses. It is worth mentioning that the 2 events within \nthe forestry patrimony happened outside the regular \nseason of forest fires; however, due to the solid program \nof protection and firefighting and the commitment of the \nforest brigades, the affectation was not larger. \nSince 2002, Aglomerados Cotopaxi, together with \nthe Juan Manuel Durini Forestry Foundation, have \nimplemented a program of protection and fire fighting. \nSince 2008, the forestry management unit has been \nresponsible for this management, and follows the \ninstructions for the prevention and fight of forest fires, \nand the annual plan of forest fires. \nAll the personnel of the fire brigades, composed of the \ncompany\u2019s forestry workers, have been trained by experts \nOnce the land is prepared, seedling establishment is \ncarried out manually in the winter season. \nMaintenance begins between 6 months to 1 year after \nthe plantation was established, and consists of removing \nweeds that compete with seedlings for water and \nnutrients. This activity is done up until 2 years in pine \nand 1 year in eucalyptus. The silvicultural management \nis responsible for pruning and thinning the pine. Pruning \nis carried out around 5 years, and consists of cutting \nthe branches of the lower part of the tree; depending on \nthe growth productivity it can be pruned up to 4 meter in \nheight. This task improves the quality of the trees, and \ntherefore improves the quality of the wood that will be \nobtained while also avoiding the spread of forest fires and \ncontrolling certain plagues. The thinning seeks to reduce \nthe density of the plantation, cutting the smallest or poorly \nshaped trees, approximately 10 years after planting, in \nthis way, the final volume is concentrated in the best \ntrees. The wood that comes out of thinning is also used \nin the industry. This activity is frequently performed by a \nspecialized service provider. He is an example of a local \nworker that has grown with us. \nForestry protection is carried out throughout the life \nof the plantation, it consists mainly of the prevention \nand combat of forest fires, protection against possible \nplagues, and trespassing protection of the properties. \nRegarding the control of forest fires there is an entire \nphysical structure and trained personnel. For the plagues, \nan integrated management is carried out which consists \n63 \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 \n2.5 Wood supply \nGRI (103-2, 103-3), GRI 301-1, GRI 301-2, AC 3.3. \nSince \nthe birth of our operations, the basis for the growth of our \npatrimony has been the purchase of land near the industrial \nplant located in Lasso. In recent years, we have diversified \nour wood supply by promoting afforestation agreements on \nthird party lands. The current supply strategy is to provide \napproximately 75% of wood from our own plantations, and \nthe remaining 25% through purchase from third party forests. \nIn this way, we promote the forestry business between \ndifferent suppliers or plantation owners. This practice seeks \nto promote the creation of new forests in our country. \nA fire protection program \nwas implemented since \n2002 \nForestry fire brigades in constant training \n64 \nfrom Chile. We have four observation towers at strategic \npoints in our forestry plantations, from which, during the \nfire season, our observation guards can detect at a long \ndistance the source of the fires, and in coordination with \nthe fire station send the land fire brigades. \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 case of the use of our plantations, the commercial \nthinning and final harvest are carried out through \nmechanized and semi-mechanized systems, according to \nthe topography and size of the trees. From the harvested \nwood, practically 100% of the tree is used, the trunk is \ncut and sized according to the categories needed by the \nindustrial plant, in addition, the branches and the residue \nof the operations is processed as chips for biomass \nthat is used as renewable fuel for the cauldrons of \nthe industrial plant. The harvest wood reaches the \nplant\u00b4s wood yard in independently owned transport, \nwhere it is organized and sorted for consumption on \nproduction lines. This process is the responsibility of \nthe forestry management. \nForestry patrimony is \nresponsible for delivering \nthe supply planning, \nwhere all the available \nstands are marked for \nharvest and thinning for \neach year. \nForestry supply \nexecutes the annual \nharvest planning \nThe plant\u00b4s wooden yard is \nin charge of receiving and \nhandling the wood that \ncomes from the forests to \nstore, preserve and deliver \nraw material, according to \nthe requirements of the \nproduction lines \nWood consumption in \nthe production lines \n\u00b7 \nSawmill \n\u00b7 \nMDF \n\u00b7 \nFiberBoard \nAglomerados Cotopaxi is supplied 100% from renewable \nsources with wood from forest plantations.We do not use \nwood from another origin or source for our industrial \nprocesses. \nIn 2021, the total supply of the production of Aglomerados \nCotopaxi was 230,616 m\u00b3, of which 74.89% corresponds \nto wood from our own plantations, with a harvest area of \n523 hectares and 481 of thinning. \nown forests \n74.89% \n172,719 \nthird party forests \n25.11% \nOwn wood m \n3 \n57,897 \nThird party wood m \n3 \n230,616 \ntotal \nWood sourcing 2021 \n65 \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","Harvesting next to a conservation area \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. Management \nof our forests \n3.1 External certification of \nour good practices \nGRI 102-11, GRI 102-12, GRI 102-56, AC3 (103-2, \n103-3). \nSince 2011, we have adhered to the management \nsystem of FSC \n\u00ae \n Forest Stewardship Council \n\u00ae \n, with the \npurpose of validating our good practices of responsible \nforest management and environmental care, as well \nas to generate and manage a favorable social network. \nWe maintain a faithful commitment to comply with the \nprinciples and criteria of FSC , each of which introduces \n\u00ae \na precautionary approach in our management, that is, all \nthe activities that are carried out must consider the three \nprinciples of sustainability promoted by FSC to maintain \n\u00ae \nor improve good forestry practices. \nThis process involves decision and leadership. Over ten \nyears ago when we took this long term commitment, we \naligned our Systems Management Policy, the Forestry \nManagement Plan and its corresponding Manual to \n5 \nmake them part of the company\u2019s processes. We have \nguidelines for all the activities that take place in our \nforestry patrimony. \nIn 2011 we received the first external audit by the \ncertifying authority \nControl Union, \n who verified \ncompliance with FSC principles and criteria, and we \n\u00ae \nobtained the FSC C105861 Certificate, for a duration of \nfive years, with annual followup audits. The recertification \nis done every five years. \n5 \n The scope of the Forestry Management Plan is at least one rotation, that is 20 years, and the period set for the review is every five years, it can be modified or updated when significant or important changes are \nfound. Modifications must be registered and reported to the FSC contact person. \nThe FSC certification fills us with pride and supports our sustainable management \n67 \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\u00b7 Principle 1. Compliance with Laws: \n comply with all laws, regulations, treaties, \nconventions and agreements. \n\u00b7 Principle 2. Workers Rights and Employment Conditions: \nMaintaining or improving the social and economic well being of the workers. \n\u00b7 Principle 3. Indigenous Peoples' Rights: \n Identify and support \nthe rights of Indigenous People to own and use the land and its resources. \n\u00b7 Principle 4. Community Relations: \nMaintaining or improving the \nsocial and economic well being of the local communities. \n\u00b7 Principle 5. \nBene\ufb01ts from the Forest \n: \nMaintaining or improving \nthe long term economic, social and envir \nonmental bene\ufb01 \nts of the forest. \n\u00b7 Principle 6. Environmental Values and Impacts: \nMaintaining or \nrestoring its ecosystem, biodiversity, resources and landscapes. \n\u00b7 Principle 7. Management Plan: \n Have a management plan, implemented, \n monitored and documented. \n\u00b7 Principle 8. Monitor and Assessment: \n Demonstrate progress \ntowards meeting management objectives. \n\u00b7 Principle 9. High Conservation Values: \n Maintaining or improving \nthe attributes that de\ufb01ne this type of fo \nrest. \n\u00b7 Principle 10. Ex \necution of Management Activities: \n Plan and \nmanage plantations in accordance with FSC principles and criteria. \nR \nR \nFSC Cert \n\u00ae \ni\ufb01ca \ntion \nAglomerados Cotopaxi Forestry Plantations \nFSC cer \n\u00ae \nti\ufb01cation is based on 10 general principles of \nforestry management, that contemplate economic, social \nand environmental aspects. \nThird party lands \nBased on FSC\u00ae Partial Cer \nti\ufb01cation olicy 20-002, we h \nP \nave declared under \nthis \ufb01gu \nre the properties over which we do not have full control of use of long \nterm property, or when it comes to forest agreements on third party lands. \nThe forestry management for these lands is the same one that is carried out \nin our own lands, since everything is part of the forestry patrimony of \nAglomerados Cotopaxi. \nAudit findings \nIn order to comply with FSC regulations, an external \n\u00ae \naudit is requested from the certifying body, Control Union, \nwhich is carried out by the audit team and local experts. \nIn 2020 a minor Non-Conformity and two Observations \nwere raised. These focused on compliance of principle \n8: monitoring and assessment and the sections that \nrequest validation in the monitoring of fauna indicator \nspecies. To close the Minor Non-Conformity, a public \nconsultation process was carried out, which was \nexecuted in November 2021, with the presence of internal \nand external stakeholders, such as local authorities, \nacademia, opinion leaders, neighbors of the area of direct \ninfluence, to present the monitoring program and its \nresults. The observations raised are points of attention \nindicated by the auditor, and the company has a period \nof 12 months to evaluate their implementation. Despite \nnot being a requirement, we set a deadline to resolve \nthe observations, and thus avoid that they rise to Non- \nConformities in future audits. \nIn 2021, the follow up audit was not carried out, due to the \nstate of sanitary emergency that the country experienced \nin the second semester, therefore, the certifying entity \ngranted us the extension of the validity of the certificate \nfor one additional year, for this reason, the follow up audit \nwill take place in 2022. \n68 \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 have implemented integrated pest management in the nursery and the plantations \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 \nPesticides containers are triple washed, sorted and \npierced, and then returned to suppliers for final disposal. \nThe FSC pesticide policy establishes a categorization \n\u00ae \nof Highly Hazardous Pesticides, based on eight toxicity \nelements, which are classified in the following categories: \n1. Prohibited products \n2. Very restricted products \n3. Restricted products \nFor the use of the products belonging to list 2 and 3, we \ndevelop an environmental and social risk assessment \nmatrix where we determine the impact and corresponding \naction plan. \n3.3 Ecosystem services \nGRI 203 (103-2), 303-1. \nThe ecosystem services provided \nby the territorial management of forestry patrimony, \nsuch as the joint management of water basins, the \ncarbon capture, the care of conservations areas, and \nthe availability of recreation spaces, among others, \nare managed under a precautionary and sustainable \napproach. Aglomerados Cotopaxi encourages the \nuse of these services through its community relations \nprograms, with the purpose of promoting a positive socio \nenvironmental impact . \n7 \n3.2 Integrated pest management \nAC 3.4. \nAligned with the principles 6 and 10 of the \nFSC standard, we follow strict policies for the use of \n\u00ae \npesticides. The use and application of chemicals is part \nof the precautionary approach of our Integrated Pest \nManagement Plan. \nIn nursery and plantations we carry out an integrated pest \nmanagement, we monitor the potential causative agents \nof damage and their natural controllers. Based on damage \nindexes, we proceed with the use of biological products, \nand only, when the indexes reach a high level we apply \nchemicals. We use biological products in phytosanitary \ncontrols for fungus and insect damage. In the nursery \nwe apply products based on beneficial microorganisms \nthat control pathogens, and in the case of insects, we use \ncultural work and friendlier methods such as traps for \ntheir control. \nChemicals are mainly used in the initial stage of planting \nto eliminate competition for water, light and nutrients \nagainst weeds. For that purpose we do a pre and post \nplanting chemical weeding, and whenever possible we use \na mechanized application with a gable to minimize the risk \nto the people. For the use of backpack pumps, we provide \nour forestry workers with personal protective equipment, \nwith the corresponding training for its safe use, followed \nby periodic controls of cholinesterase level . \n6 \n6 \n The tests for cholinesterase level measure the effect of exposure to certain pesticides and agrochemicals, ensuring proper monitoring of toxicity. \n7 \n Review details in the chapter of Responsibility toward people, within the subchapter of Community Relations. \n70 \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","In 2017, together with Condesan and the Ministry of \nAgriculture, represented by Undersecretary of Forestry \nProduction, we assumed an agreement, which aimed \nto complement efforts for the implementation of a pilot \nproject, to determines carbon sequestration in forest \nspecies Pinus spp and Eucalyptus spp, and thus generate \ninformation that helps the adaptation and mitigation of \nclimate change through the strengthening of silvicultural \nmanagement, thus obtaining a balance against carbon \nemission in the long term. \nIn 2021, an agreement was signed with the University \nof the Americas, with the purpose of updating this \ninformation, as well as GHG emissions in the industry, \nwith the purpose of obtaining the verification and \nimplementation of the carbon neutrality management \nsystem, and adherence to the Ecuadorian Zero Carbon \nProgram (PECC). \nMeasuring the carbon sequestration in our plantations \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 Sacha United gathers positive testimonies about \nthe history of those who promote the best practices of \nsustainable landscape management, and their contribution \nin the fight against climate change. For its part, Sacha \nUnited and Natural born leader, recognizes those men \nand women who have managed to transcend adversities, \nand have left a mark on the conservation and responsible \nmanagement of the forests during the pandemic. \n3.4 Awards and Recognitions \nAt the national level we \nstand out for our forestry \nmanagement. Once our \npractices have been \nvalidated by the Ministry \nof Environment Water \nand Ecological Transition \nof Ecuador, we received \nthe Forest Green Dot \nRecognition, which is \nconsidered by that institution \nas a mechanism that \n\u201cencourages fairer and \nmore responsible marketing \nprocesses that will benefit the communities that depend \non forests\u201d and involves companies in the process for the \ncontrol of legal wood . \n8 \nThe Sustainable Forest Management Corporation, \nCOMAFORS, through the Sacha Awards initiative, \nseeks to recognize various actors that carry out good \nforestry practices throughout the country; focused on \nsustainability commitment of forestry management, \nforestry plantations, with their products and services; \nin this sense, Aglomerados Cotopaxi has received the \nfollowing recognitions: \n8 \nSee https:\/\/www.ambiente.gob.ec\/ministro-presento-el-plan-de-fomento-al-manejo-forestal-sostenible-y-el-reconocimiento-punto-verde-forestal\/ \n\u00b7 Rumi\u00f1ahui General Recognition. \n First place. \n Collection and commercialization of the Suillus \nluteus mushroom. \n\u00b7 Sacha Award 2015. First place. \n Forestry research. \nIntegrated pest management. \n\u00b7 Sacha Award 2015. Second place. \nWater governance \nproject for community utilization. \n\u00b7 UN Global Compact. Recognition of SDG 6. \nGovernance of water as a high value of conservation. \n\u00b7 Sacha Award 2021. Sacha United. \nRecognition of \nthe Aglomerados Cotopaxi\u00b4s Bike Park. Sacha Hero: Forestry \nManager Aglomerados Cotopaxi. \n\u00b7 Sacha Award 2021. Sacha United and natural \nborn leader. \nRecognition to Aglomerados Cotopaxi for the \nmanagement of the Covid-19 pandemic. Sacha Hero: General \nManager Aglomerados Cotopaxi. \nAwards \nRecognition \nForest Green Dot \nforest plantations of \nAglomerados Cotopaxi \n72 \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","All management processes of the forestry area of \nAglomerados Cotopaxi, are governed on the basis of \nmanagement and operational indicators. In our continuous \nsearch for excellence, the industrial activity of our company, \nfollows the ISO 9001:2015 quality standards; Health and \nSafety at Work, are governed under the ISO 45001:2018 \n9 \nstandard, and adoption of the guidelines of the control and \nsafety management system, under the criteria of BASC: \nBusiness Alliance for Secure Commerce. \n9 \nGRI 304-2. \nTo safeguard ecosystem services. Aglomerados Cotopaxi carried out the \nidentification of risks and impacts that may arise from forestry operations and processes, \nbased on the environmental policy and management executed in the company, which indicates \nthat Environmental APIR forms must be completed, where the Aspects, Processes, Impacts \nand Risks can be evaluated. In addition, the official document developed for FSC, called \nForestry Management Plan, indicates the management to maintain or minimize these impacts \nand its precautionary approach based on the indicators of FSC principle 6 and established \nprotocols. \nForestry plantations offer ecosystem services \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. Biodiversity \n4.1 Healthy ecosystem \nGRI 304 (103-2, 103-3), 304-1, 304-4. \n The areas \nowned by Aglomerados Cotopaxi are clearly defined \nwith geographical and legal boundaries. The company \ndoes not develop operations within the protected areas \nof the National System of Protected Areas of Ecuador \n(SNAP), although part of its forestry patrimony borders \nthe Cotopaxi National Park, El Boliche National Recreation \nArea, Los Ilinizas Ecological Reserve, which is evidenced in \nmaps and property deeds. \nThe conservation areas that are within the forest heritage \ntotal 5,085.95 hectares. In accordance with FSC \n\u00ae \nprinciples, 3,842.01 hectares of our properties have been \ndeclared under the due process of public consultation, \nas areas with High Conservation Value, especifically \nAV1 for its diversity of species, AV4 for basic ecosystem \nservices and AV5 for community needs. This process is \ncarried out to cover the precautionary approach based on \nthe specifications of FSC \n\u00ae \n Principle 9 High Conservation \nValues, Principle 8 Monitoring and Evaluation with regards \nto the maintenance and care of these values, and also \nPrinciple 4 for the relations with the communities. All \naspects that are required to meet FSC criteria have been \n\u00ae \nincluded in our Monitoring Program that annually verifies \nthe compliance of social and environmental indicators. \nOur pine and eucalyptus plantations promote the \ndevelopment of the flora and fauna which is representative \nof the Ecuadorian Andes. In 2010, we set up a baseline \n10 \nof the biological components of our plantations defined \nin the Environmental Impact Study of our forest activity. \nIn this context, we identified representative fauna of the \nAndes, ecological processes, sources and water riverbeds, \nrestructuring and conservation of organic soil, CO \n2 \ncapture, and a medium wild life diversity, which has been \nmaintained until the last monitoring carried out in 2021. \nBased on the initial results, we decided to conduct an \nannual wildlife monitoring, and a general monitoring \nevery five years. Thus, the next biological monitoring \nwas carried out in the month of may 2016, and the last \none in 2021. The methodology applied to monitor the \nfauna is from direct surveys through capture, and indirect \nsurveys through recognition of footprints, feces and \nregurgitated ; for the minor flora linear transects \n11 \nand direct identification were applied in random routes. \n10 \n Our environmental impact studies are carried out by independent individuals, in accordance with the provisions of the country\u2019s Environmental Authority. \n11 \nThe pellets are balls formed by undigested food remains regurgitated by certain birds. \n74 \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","Chiriyaku conservation area. One can appreciate the remnants of native Andean highland forest surrounded by the plantations and the water sourced by nearby communities \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 2021, we developed the public consultation process \nof AVC1 and the Monitoring Program in the month of \nNovember. Based on what is required by FSC we put into \n\u00ae \nconsideration, of the interested parties, the results of the \nmanagement in these areas. This process had favorable \nresults and we received recommendations to implement \nin an action plan in the coming years. \n. \n4.2. Wildlife refuge \nOur forest plantations maintain an average diversity \nin wild flora and fauna. The fauna follows a behavior \nof ecological opportunism, and rotates throughout the \nplantation in search of food and shelter. For the large \nmammals, the entire planted area is their living space as \nthey have no habitat preferences, but they are inclined \nto sites without human presence. Their population is \nhigh because they have no predators, and the puma is \nIn June a general update of the Biological Monitoring \nwas carried out, con\ufb01rming the presence of key \nspecies. The results of the biological monitoring \ncon\ufb01rm that the ecosystem is healthy in all areas \nstudied, and allows us to conclude that the \nplantations are a refuge for wildlife. \noccasionally present. The number of amphibians and \nreptiles have maintained, but with low populations, due to \nthe eruption of the Cotopaxi volcano. \nLikewise, the biological monitoring updated this year, \nhas allowed us to confirm that the protection of the \nconservation areas of our properties - remnants of high \nAndean forests and ravine vegetation, is fundamental \nfor the maintenance and ecosystem balance, since \nit is in these sites that the major diversity of birds is \nconcentrated within the forest patrimony of the company. \nThe maintenance and conservation of these natural \nenvironments depends on the future of the species that \ninhabit there, and those that could visit the place in times \nof migration. \nAs for the minor flora, the Asteraceae family was \nregistered in all of the sampling points, in addition \nto presenting itself as the one who contributed with \nmore species in all the sites.The presence of seven \nendemic species was recorded and, in order to know the \nchanges in the richness of the registered flora, we made \ncomparisons between the current results and those of \n2010, demonstrating a similar diversity. \n76 \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 \nWild Mammals \nGRI 304-4 \nIn general, the forest area of Aglomerados Cotopaxi \nS.A. presents a heterogenous landscape, due to the \ncoexistence of natural vegetation of the Andean forest \nand pine and eucalyptus plantations, which form a matrix \nof varied refuges for some species of wild mammals. \nEnsuring that these sites have limited human presence, we \nregister a greater diversity than agricultural ecosystems. \nThe conservation status of species registered in the field \naccording to the Field Guide to Mammals of Ecuador \n12 \nshows that our forests are home to four species that are \nin the Vulnerable category (VU), one specie in the Near \nThreatened category (NT), eight species in the Least \nConcerned category (LC), and one specie in the Non \nEvaluated category (NE). While at the international level, \naccording to the IUCN Red List of Threatened Species \n(2021), the presence of two species in the Vulnerable \ncategory (VU), ten species in the Least Concerned \ncategory (LC) and two species in the Non Evaluated \ncategory (NE) is evident, as well as three species in \nAppendix II of the CITES category . \n13 \n12 \nSimBioE - Ecoscience Ecuadorian Foundation for Ecological Studies. Ministry of the \nEnvironment - IUCN Regional Office for South America, 2001 \n13 \nConvention on International Trade in Endangered Species of Wild Fauna and Flora. \nGiven the need to continue with the studies to \nunderstand the dynamics of the population of \ndifferent species, a research project was implemented \nin October 2021 as a pilot plan using camera traps to \nmonitor animals. \nAt the moment, the same key species have been \nidenti\ufb01ed, thus con\ufb01rming the results. \nPicture taken by a photo trap camera \n77 \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","PRODUCTION \nPROCESSES \nthat minimize \nour impact \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","1. Key figures \n1 \nData from 2017 and 2018. During 2022 we will establish a systematic approach to measure carbon fixation and footprint and get it verified. \nSolid wood 10,090m\u00b3 \nFiberboard 42,118 m\u00b3 \nMDF 66.086m \nForeign suppliers 8,616,098 \nNational suppliers 34,450,656 \n(28% of the payment goes to \nin Cotopaxi) \nFSC \nISO 9001:2015 \nISO 45001:2018 \nEPA CARB \nof total energy consumed \ncomes from biomass from \nour own operations \nTotal production 2021 \n118,294 m\u00b3 \nPayment to suppliers \n2021 43,066,754 \nCer \nti\ufb01cation for \nour processes \nLocal sales 73.5% \nExport sales 26.5% \nSales \n79.16% \n173,000 tons (tn) CO \/year \n2 \nTotal emissions for scopese 1, 2 \nand 3: 20,041.10 (tn CO eq\/year) \nEmission intensity ratio: \n0.177 (tn CO eq\/year) \n2 \nCarbon \ufb01xation\u00b9 \nKey \n\ufb01gure \n1 \nKey \n\ufb01gure \n2 \nKey \n\ufb01gure \n3 \nKey \n\ufb01gure \n4 \nKey \n\ufb01gure \n5 \nKey \n\ufb01gure \n6 \n2 \n79 \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","Production process MADERAS COTOPAXI \n80 \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 \nProduction process MDP DURAPLAC \n81 \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 \nProduction process MDF FIBRAPLAC \n82 \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. Our operations \n2.1. Timber industry \nSolid wood MADERAS COTOPAXI \nOur solid wood unit has a sawmill with a capacity of \n770m\u00b3\/month, with a single production work shift\u00b3. \nWe transform tree logs into dry lumber mainly to meet \nthe demand for industrial packaging in Ecuador; our \nprimary product is pallet kits for banana exports. We seek \nto make the most of each piece, while still removing \nwood that does not meet the specifications of quality \nand dimensions. \nTo carry out the sawmilling process, cutting schemes \nare designed according to the products requested by our \ncustomers, seeking to take the most out of the log. In the \nattached scheme, the products are represented in orange, \nfor which we mark the dimensions; the green section \nthat does not allow product generation, becomes chips \nand sawdust to be used in other products and energy \ngeneration processes, thus taking advantage of all the \nwood that enters the factory. \n27 x 155 \n27 x 155 \n27 x 155 \n27 x 155 \n27 x 155 \n27 x 155 \n55 x 155 \n55 x 155 \n55 x 155 \n2 \nGRI 301-2. To date, we do not use recycled materials within our production processes. \n3 \nThe work shifts of the workers in Ecuador are eight hours a day for five days a week. \nCutting schemes for a log with 24 cm. diameter \nGRI 102-2, GRI 102-9. \n The business of our company \nconsists of the industrial elaboration of wooden boards \nin accordance with the sustainable planting of pine and \neucalyptus\u00b2 forests. We source from our own certi\ufb01ed \nplantations and wood from external sources, whose \ntraceability we know. We produce particleboard (MDP), \nmedium density \ufb01berboard MDF mouldings and and \nsolid wood products. \nThe plant works for 24 hours, with the exception of \nthe sawmill, that works only one 8 hour shift. \nIn 2021 we produced 10,090 m\u00b3 of solid pine wood \nproducts; 42,118 m\u00b3 of particleboard and 66,086 m\u00b3 \nof MDF boards. \n83 \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","Wood from the sawmill production \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","SUSTAINABILITY REPORT \nThis production line is strategic for the company. It allows \nthe consumption of the logs that are at the base of the \ntree, and that have been subjected to pruning. \nThese logs have a better quality in terms of knots, \ncurvature and conicity, and are used in the sawmill \nprocess since they allow to obtain products of optimal \nquality. The sawmill delivers byproducts to the board \nlines at more competitive prices and in a timely manner, \ndiversifying the use of forestry plantations. The products \nof the sawmill allow us to be part of the logistics chain \nof export of the Ecuadorian agro-industrial products \nwith our production of pallets, which comply with the \nInternational Standard for Phytosanitary Measures ISPM \nNo.15 (Heat Treatment (HT)). In addition, we offer value \nadded products such as varied decorative wall coverings, \nlaminated beams, wooden ceiling and wood strips. \nParticleboard DURAPLAC \nThe particleboard line is the oldest of our operations. In \n1979, we imported the first machines for the production \nand surfacing of these wooden boards from Germany. \nIn 1996, we again invested to install a second press that \nwould allow the boards to have a wood veneer overlay. \nThe particleboard is manufactured from a mixture of \nwoods that are selected according to their characteristics \nof diameter and quality. Manufacturing begins with the \ngrinding of the wood logs to obtain chips and particles \nthat are deposited in the wet silos, then extracted and \ndried by contact with hot air. The dry particles are \nseparated between fine material and coarse material and \nthen stored in dry silos according to their size. The next \nstage is gluing, which consists of impregnating these \nmaterials with a mixture of resin, catalyst, paraffinic \nemulsions and water. At the end of this process, the \nboard is assembled with the fine and coarse material, in \nspecific proportions and layers. In the final stage of this \nprocess, the board is pressed at a given pressure and \nSawmill byproduct used for particleboards \n85 \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 \ntemperature, for a precise time. All boards go through a \nstrict quality control, and random samples are analyzed in \nour laboratory. Finally, the boards enter a sanding process \nto give the surface a smooth final texture. \nMDF FIBRAPLAC \nThe third and most versatile of our products is the \nmedium density wood fiberboard, MDF. It was in 1997 \nthat Aglomerados Cotopaxi made this important \ninvestment by installing the largest MDF line in the \nAndean region in Ecuador. We accompanied the \nincorporation of the new line with a strong publicity \nand training campaign in the use of the new boards in \nColombia, Ecuador and Peru, which has meant that, since \n1999, the total production of MDF is sold in the domestic \nmarket or exported. \nThe only MDF plant in Ecuador is the plant of \nAglomerados Cotopaxi. The characteristics of this \nproduct allows for it to be treated like solid wood. \nFor the production of MDF boards , the quality of the \nraw material is fundamental; from selected logs, wood \nfibers are extracted, for which bark free chips are required. \nThe chips are subject to a steam softening process that \nallows the lignin chains, a substance that unites the fiber \nin their natural state, to break and then be subjected to \na mechanical force extracts the moisture from the wood \nchips, before continuing with the defibering process. \nThe product obtained in this process, wood fiber, has the \nappearance of cotton or wool. The fibers are mixed with \nresins of formaldehyde urea or melamine formaldehyde \nurea, plus paraffin components. It is here that a mattress \nof wood fiber and resin is formed. This mattress is \npressed in a similar way to the particleboard, thus \ngenerating the agglutination of the fibers and forming the \nboard. Finally, a saw precisely cuts the measurement of \nthe board for sale and then it goes through the sanding \nprocess to give it a smooth finish. \nWood fiber mattress for MDF production \n86 \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 \nSince 2018, as part of a strategy to diversify products, \nwe have invested in machinery and infrastructure to have \na new production line, and in March 2020, Aglomerados \nCotopaxi starts a line of MDF products with added value \nto meet the demand of North American markets. In a \nshort time (one year), this line has positioned itself as a \nproduct of very good quality and service. The products \nare made from boards with low formaldehyde emissions, \ncertification, EPA-CARB. The line has an installed capacity \nof 21.501m\u00b3\/year. \n2.2 Quality Management \nGRI 102-12, GRI 416 (103-2, 103-3). \n Aglomerados \nCotopaxi is strongly committed with three transverse \nprocesses: Safety, Occupational Health and Process \nQuality Processes; in order to ensure them, we maintain \na management system\u2074 that includes: \nFSC Cer \n\u00ae \nti\ufb01cation \n(Forest Stewardship \nCouncil ) \n\u00ae \nV \neri\ufb01es that the fo est y \nr \nr \nmanagement of our \nplantations complies with \nstrict international \nstanda ds of esponsible \nr \nr \nfo est y management. \nr \nr \nQuality Management \nSystem \nISO 9001:2015 \nT \no continuously \nimpr v \no e the \nsatisfaction of our \ncustomers and \nsta eholders. \nk \nOccupational Health \n& Sa ety \nf \nISO 45001:2018 \nSeeks to p \nrev \nent \nand minimi e possible \nz \nrisks for our emplo ees \ny \nat work. \nEPA-CARB \nF \normaldehyde \nCer \nti\ufb01cation \nRequi ed for the \nr \nmanufactu e of \nr \npr \noducts that a e \nr \nmar eted in the United \nk \nStates and Canada. \nR \nCharacteristics of our processes \nGRI 102-2, GRI 416 (103-2, 103-3), GRI 416-1, GRI \n416-2. \nAs part of our management system, all internal \nprocesses follow the aforementioned quality standards. \nAdditionally, we have a formaldehyde emission control \nmanagement system, required by the EPA-CARB \nemissions certification, which applies only to those \nMDF products that we export to the United States \nand Canada. Approximately 15% of our total annual \nproduction corresponds to products that conform to \nthe formaldehyde emission requirements of the EPA- \nCARB certification . As this EPA-CARB certification is a \n5 \nmarket demand, the remaining 85% of our production \ndoes not require it. During the pressing process, \nformaldehyde emissions are evident, because the \napplication of heat polymerizes the resin and evaporates \npart of its components. Formaldehyde emissions from \nboards in the following stages, such as cooling, surfacing \nand use, show a decreasing trend, due to natural \nstabilization processes. \nAll our products have a technical data sheet and material \nsafety data sheets MSDS (Material Safety Data Sheet), \nespecially of the resins used in the production process. \n4 \n The company evaluates monthly management indicators by processes (quality, productivity, perfor \n- \nmance). \n5 \nFour years ago we obtained the EPA-CARB Certification. As a result of the program of quarterly follow \nup external audits carried out by an expert auditor, in March 2021 we went through the only case on \nnon-compliance we have had, due to a possible alteration of the formaldehyde emissions assessment \nmethod that had to be reevaluated, and we complied again in April 2021. \n87 \n\u201cAglomerados Cotopaxi S.A. has both a Quality Management system and an Occupational Health and Safety \nsystem certified, according to the ISO 9001 and 45001 norms, by SGS. \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 \n6 \nEdited information from https:\/\/www.chemicalsafetyfacts.org\/es\/formaldehyde\/ \n7 \nComplaints are issued by technical support to product managers, and are coordinated with the \nquality area to finally register them in our systems. Once the information is reviewed, we work with \nthe process leaders for the application of action plans to follow or immediate corrective actions. \nFormaldehyde \n Formaldehyde is a \nfundamental chemical element in the \nproduction of hundreds of items that improve \neveryday life. Only a minimal, or non-existent \namount of formaldehyde remains in the \ufb01nal \nproducts used by consumers. Formaldehyde \nbased resins are used for the manufacture of \ncomposite and engineering wood products \nused in cabinets, countertops, mouldings, \nfurniture, shelves, ladder systems, floors, wall \ncoverings, beams and supporting trusses, and \nin many other furniture and structures for the \nhome. Glues that use formaldehyde as a \nfundamental element are exceptional bonding \nagents that provide high quality performance \nand are very economical. The wood products \nindustry uses formaldehyde-based resins in a \nwide range of panels and products. \nThe U.S. Department of Housing and Urban \nDevelopment (HUD) has had, for a long time, \nrules limiting formaldehyde emissions from \nwood products used in prefabricated homes. \nQuality complaints \nGRI 417-2. \n Finding non-compliance allows us to \ncalibrate, improve and correct our production processes. \nThroughout the year we rely on independent auditors and, \nas part of our Process Management System, we attend \nand respond to complaint reports within the company\u2019s \ncontinuous improvement processes . \n7 \nCombining what we have learned from the certifications \nand our efforts to protect the health and security of our \nemployees, we have been making improvements to \nminimize the concentration of formaldehyde in critical \npoints of our operations. \nQUALITY CONTROL \nComplaints by product volume for \nparticleboard and MDF received through \nthe CSC \u201cCustomer Service Center\u201d \nComplaint volume (m ) \n3 \n100 \n90 \n80 \n70 \n60 \n50 \n40 \n30 \n20 \n10 \n0 \n2018 \n86.74 \n2019 \n71.26 \n2020 \n59.54 \n2021 \nTotal \n82.53 \n88 \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","2.3 Supply chain \nGRI 102-9, GRI 204 (103-2, 103-3). \nThe main element \nof our boards and solid wood products comes from \nour forestry plantations or from the wood we buy from \nthird party cultivated forests. In addition, our production \nprocesses need many other materials to obtain a product \nready for sale. \nFrom sourcing to efficient consumption, we control \nproduction costs and spending. We manage the timely \nsupply under reasonable costs, in order to ensure \ntimely production and support the availability of the \nfinal product. \nComplaints generated from the Customer Service \nCenter are addressed through processes defined within \nour management system. This allows us to establish \ncomprehensive action plans to solve the causes \naccording to the production standard. In the year 2021, \nwe registered claims for a volume of 82.53m\u00b3 of \nproduct, equivalent to 0.076% of the production \nvolume of particleboard and MDF. \nIn the case of sawmill products, solid wood may \nhave natural defects, or there may be process \ndefects, so the finished product is classified and \nsold according to quality, into three categories. \nIn 2021, complaints did not exceed 0.02% of production. \nWood yard \n89 \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 \nThese objectives are executed through a process \nstructure around: \n- Qualification of our suppliers according to their \nimportance in relation to the company\u2019s processes \nand their subsequent registration\u2078. \n- Establishment of efficient and structured purchasing \nprocesses that meet the needs of the internal customer \nin terms of quality, agreed delivery time and quantity, \nalways seeking the best cost-benefit ratios. \n- Evaluation of the performance of our suppliers of \nstrategic products and or services. \nGRI 204-1. \nWe have domestic and international suppliers, \nand we sell our products in Ecuador and other countries \nof the American continent. In addition, as with the hiring \nof our staff, when acquiring products or services, we also \nseek to generate a local impact. \nProvisioning of costs and expenses 2021 \nPercentage vs. 100% \ntotal provisioning \nexpenditure \n% of expenditure \nin the province of \nCotopaxi \nCategory \nValue included in domestic goods & services \nValor \nen USD \nDomestic goods \n& services \nImported goods \n& services \nTotal \n$ 34,450,656.00 \n$ 8,616,098.00 \n$ 43,066,754.00 \n80% \n20% \n100% \n28% \nTotal expenditure on suppliers in Cotopaxi \n$9,487,089.00 \nGRI 308 (103-2) GRI 308 (103-3). \nOur strategic suppliers \nare qualified under different evaluation criteria according to \nthe needs of the business. The main criteria evaluated are \nquality characteristics, compliance in delivery and product \ncharacteristics or service purchased. \nWhen it comes to the management of environmental \nimpacts associated with our production processes\u2079, \nwe place special emphasis on the validity and compliance \nof the environmental permits of our suppliers, especially \nrelated to hazardous waste destruction services, water \nmonitoring and transport of special waste, before the \ncorresponding authorities. \n8 \nGRI 408-1 \n: Suppliers of Aglomerados Cotopaxi are always legally constituted \ncompanies, which minimizes the risk of child labor, these companies are responsible \nfor complying with Ecuadorian law on the matter. From the company\u2019s experience, no \nrisk of child labor has been identified among its suppliers. \n9 \n GRI 308-1, GRI 308-2: \nIn 2021, we did not evaluate new suppliers under \nenvironmental criteria. \nWe place \nspecial emphasis \non the validity and compliance of \nthe environmental permits \nof our suppliers \n90 \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","Final product warehouse \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. Environmental \nmanagement of \nour production \nprocesses \n3.1 Environmental management \nGRI 102-11, GRI 303 (103\u20132, 103\u20133), GRI 306 (103\u20132, 103 -3), \nGRI 307 (103\u20132, 103-3). \nThe management of Aglomerados \nCotopaxi is part of our motto: planting for the future, which \nshows our commitment to do business and generate \nwealth without compromising the opportunities of \nfuture generations. We seek assurance and continuous \nimprovement in the quality of processes and products, as \nwell as in the care of people and the environment . \n10 \nThe company\u2019s commitment is based on long term \nresponsible forestry management through compliance \nwith FSC policies and principles, and on prevention, \nmanagement and mitigation actions to minimize the \nenvironmental impacts of our productive activities, \nwithout neglecting community outreach programs. \n10 \nThere are internal and external audits to verify compliance with the quality, health and safety standards reported in the management system. \n11 \nThe ISO 14001 helps to manage and identify the environmental risks that may occur internally in the company while carrying out its activity. With the identification and management of the risks achieved with \nthis standard, both risk prevention and environmental protection are taken into account, following the legal regulations and socioeconomic needs required for compliance. See https:\/\/www.nueva-iso-14001. \ncom\/2018\/04norma-iso14001-que-es\/ \nThe environmental management system is managed \nunder the ISO 14001 principles . With these guidelines \n11 \nwe can undertake a permanent analysis of current \npractices for the implementation of improvements in all \nenvironmental aspects. It allows to control consumption, \nmanagement of solid waste, discharges and emissions \ninto the air, as well as mitigating environmental risks. \nThe standardization provided by the norm, highlights \nthe benefits of the implementation of new alternative \ntechnologies in the use of renewable resources. \nAerial view of the production facility in Lasso \n92 \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 \nBeing a company that depends on the cycles of nature for \nits growth and endurance we address the precautionary \nprinciple in our daily activities. We understand the \nresponsibility for the prevention and permanent monitoring \nof environmental legislation, which is why after the \napproval of the Environmental Impact Study, we signed \nan Environmental Management Plan (EMP) of the project \n\u201cAglomerados Cotopaxi Industrial Plant\u201d, that allowed the \nenvironmental authority to issue the Environmental license \nthat authorizes all our operations . \n12 \nThe objective of the EMP is to prevent, minimize and control negative \nenvironmental aspects and impacts, through documentation, \npractices, and speci \n\ufb01c actions. Within the EMP we \ufb01nd the following \nchapters: \n\u00b7 \nImpact Prev \nention and Mitigation Plan. \n\u00b7 \nContingency P \nlan. \n\u00b7 \nT \nraining Plan. \n\u00b7 \nOccupational Health & Industrial Saf \nety Plan. \n\u00b7 \nWaste Management Plan. \n\u00b7 \nCommunity Relations Plan. \n\u00b7 \nRehabilitation Plan of affected ar \neas. \n\u00b7 \nAbandonment Plan and delivery of the Ar \nea. \n\u00b7 \nMonitoring Plan \nOur environmental license obliges us to: \n\u00b7 \nComply with the p \nrovisions of the Expost Environmental Impact \nStudy and the approved Envir \nonmental Management Plan. \n\u00b7 \nSubmit to the Ministry of the Environment the environmental \naudits of compliance w \nith the Envir \nonmental Management Plan. \n\u00b7 \nBe responsible for the activities carried out by our specialized \nservice pro \nviders, on site. \n\u00b7 \nUse, in the execution of the project, processes and activities, \ntechnologies and methods that, as far as possible, prevent or \nmitigate negative impacts on the envir \nonment. \nGRI 102-42 \n. The area of influence of our industrial \noperations is determined in the EMP, and is shown in the \nfollowing map of the county of Latacunga in the province \nof Cotopaxi : \n13 \nParticulate matter \nGRI 102-44. \nOne of the key stakeholders for industrial \noperations is the community of the area of direct \ninfluence. Particulate matter,the result of the production \nof boards, is one of the main ident \ni\ufb01e \nd concerns. \nWe maintain open communication in order to receive \ncomplaints and claims from the community. Constant \ncommunication with the adjoining community has \nallowed us to study the best engineering adaptations to \nachieve greater \nef\ufb01cienc \ny in the equipments and reduce \nthe impact of particulate matter. \n12 \n The area of social responsibility is responsible for collecting complaints from individuals or \ncommunities, and to direct them to the leaders of the processes responsible for the requested \nimprovement. \nGRI 307-1 \nAglomerados Cotopaxi has not received fines or sanctions from the \nEnvironmental Authority during this year. \n13 \n More details of the \nGRI 102-42 and 102-43 \n content on stakeholder relations can be found in Chapter \n2 of this Sustainability Report 2021. \n93 \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 resources allocated for the prevention, management \nand mitigation of pollution are part of our EMP, and \ninclude activities that are the responsibility of the \ncompany\u2019s environmental services. This includes, among \nothers, monitoring activities for the analysis of air quality, \ngas emissions into the atmosphere, noise emission \ncontrol, pollutant dispersion models, water quality \ncontrol for discharge and comprehensive solid waste \nmanagement. \n3.2 Use of materials \nGRI 301 (103-1, 103-2), GRI 301-1. \nIn the operations \nfor industrial processes, raw materials are used, mostly, \nfrom our forestry plantations, resins and overlays, which \nrespond to the needs of each production lines. The boards, \nmouldings and solid wood products manufactured by \nus do not contain recycled materials, however, the way \nin which the processes are designed allow us to use, in a \nvery efficient way, all the parts of the harvested trees. The \nwaste from the solid wood line is directed to the MDF and \nparticleboard lines, where it becomes part of the boards. \nWaste from the MDF line, which is generated by sorting \nthe wood chips prior to shredding and in the final cuts, \npasses to the particleboard line, and any waste from the \nparticleboard line, along with the sawdust, is incorporated \ninto the biomass used for thermal power generation. \nGiven the characteristics of the finished product, no \nfurther packaging is required for distribution. \nThe packaging of solid wood products is the simplest, \nsince they do not need pallets, only a few pegs in the \nlower part, and plastic ties (reused), since they are \ndelivered only in the domestic market. The boards are \ngrouped on platforms according to the requirements of \nthe customers, they are attached with PET plastic ties, \nthey are lined with plastic film and mounted on pallets \nthat facilitate the loading on to the trucks for the local \nmarket, or containers for export. \nBiomass transport for renewable thermal energy generation \n94 \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","Mouldings are a more difficult product to stack, so \neach order is packed in groups, wrapped in plastic and \nmounted on sled pallets. However, by grouping into \nsmaller packages, they allow us to use the following \nrecycled materials: \n1.To protect the mouldings, before tying them with \nplastic ties, slotted leftovers of the cutting process of \nthe MDF board are used. \n2.The plastic ties that return to the plant from the \ndomestic market are joined together in shorter \n strips and reused in moulding packages (as well \n as solid wood). \n3.The base of the moulding packages is built from \nwooden pegs from the sawmill (just like solid wood). \nThe consumption of materials is controlled from \nthe supply warehouse, together with the purchasing \ndepartment and the wood yard. Each of these areas \nreceives the requirements by production line and \ndispatches only the product that will be used during \nproduction. In this way, waste is minimized and \ninventories are replenished to maintain minimum \nnecessary stocks. \nPacking with reutilized products \nSUSTAINABILITY REPORT \n95 \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 \nrenewable \nrenewable \nrenewable \nrenewable \nnon-renewable \nnon-renewable \nnon-renewable \nrenewable \nnon-renewable \nnon-renewable \nnon-renewable \nrenewable and reusable \nrenewable and reusable \nrenewable and reusable \nnon-renewable \nnon-renewable \nand reusable \nfundamental component \nof the products \nMDF and particleboard component \nparticleboard component \noverlays \noverlays \ncoating \nfundamental component \nof the products \nthermal generation \nthermal generation and \nmobilization\/transportation \nmobilization\/transportation \nmachinery and mobilization \npackaging of all products \n(12% recovered by return from the local market) \npackaging material \npackaging material \npackaging material \n(7% recovered by return from the local market, \nwelded, and reused in smaller packaging) \nRaw material \nMaterials and \ncomponents \nRelated materials \nPackaging material \nwood from forestry \nplantations \nsawmill byproducts \nMDF byproducts \nwood veneer \nmelamine paper \ncalcium carbonate \nresin \nbiomass \ndiesel \ngasoline \nlubricants \nlids \nbases \ncardboard \nplastic \ufb01lm \nPET plastic hoops \nCATEGORY \nANNUAL MASS \nOR VOLUME 2021 \nUSE \nDESCRIPTION \nCLASSIFICATION \n384,787 ME \n21,850.18 ME \n14,204.05 ME \n971,760.7 m \n2 \n6,610,252.1 m \n2 \n346,000 kg \n10,535,155 kg \n40,186.85 tn \n176,257.01 gal \n40,744.14 gal \n11,707 gal \n16,570 (units) \n8,285 (units) \n7,150 kg \n10,697 kg \n1,588,000 m \n96 \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 \n3.3 Water and effluents \nGRI 303 (103-2, 103-3), GRI 303-2, GRI 303-3, GRI \n303-5. \nAglomerados Cotopaxi is supplied by the public \npotable water system and natural water sources \non which we have permits for utilization. The water \ncatchments are used for the forestry nursery and the \nparts of the patrimony dedicated to agricultural activities \nand not in our plantations, since these are maintained \nwith rain water. In the industrial facilities, the use is for \nsteam generation and for production processes that \nneed the resource. Finally, our administrative offices, \nkitchen, medical dispensary and forestry house use \npotable water. \nThe potable water consumption for Aglomerados Cotopaxi \nwas 4.794 m\u00b3 in 2021. As for the use of water awarded \nby the State, in the industrial plant, we have permission to \nuse the Ramos well for human and industrial consumption \nand the Cuilche well for irrigation. The intensity of \nconsumption in production processes stood at 4.6 l\/s. \nIn this context, the consumption from natural water \nsources is managed by manual gauging, the water enters \ndirectly from the supply tank to the production lines. \nThe annual estimate of use is made on the basis of the \ncalculation of consumption and by differences for each \nprocess; thus assuming that in 2021 we used 16.7 m\u00b3\/h \nof well water . \n14 \nIn all of the forestry properties we have a total of 200 \nhectares that are not dedicated to plantations, but have \nother uses. In these extensions we have permits of water \nutilization for agricultural use. \nGRI 303-4. \n Spills from operations are treated in \naccordance with our commitment to environmental \ncompliance. We maintain a wastewater treatment system, \nmonitor the quality of the treated water we discharge \ninto the sewer system and the sludge resulting from \nthe process. The operation process of the wastewater \ntreatment plant includes the following steps: centrifugation, \nnanofiltration and reverse osmosis. The sludge from the \ncentrifuge is incorporated into the biomass and the organic \nconcentrate that comes out from the nanofiltration and the \nosmosis is destined for forestry properties. \n3.4 Waste \nGRI 306 (103-2, 103-3), GRI 306-1, GRI 306\u20132. \nOn site solid waste generation results from our \nproduction activities, maintenance of activities and \nmedical dispensary residues; we treat waste and classify \nit into two categories, non-hazardous solid waste and \nhazardous solid waste. \nWe carry out an integral management of the waste in the \nareas in which it is generated; the disposal of the waste \nin marked containers allows an adequate separation and \nat the same time facilitates the treatment by licensed \n14 \nWe do not record the total volume of water used in the production process, nor by process \nline, since we do not have flow meters at the entrance of the water supply concession. \n97 \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 \nwaste contractors. We ensure the proper management \nof solid waste from its generation to its final disposal \nor treatment . \n15 \nAglomerados Cotopaxi receives the services of several \nqualified waste contractors, always choosing those \nthat offer the least environmental impact and the \ngreatest responsibility in their work. In the future we \nwant to improve the use of our waste through a circular \neconomy approach. \nRecycled material \nGRI 301-3, GRI 306-3, GRI 303-6 \nThe three types of \nnon-hazardous solid waste identified in the table below \nare recycled or reused outside or facilities through a \nqualified artisanal waste contractor who holds the \nrespective environmental permit for waste removal, \nsale and processing. In 2021, he collected 75,409 kg of \nrecycled material from our facilities. As mentioned in the \ntable above, the packaging of mouldings and pallets uses \nplastic ties returned by local customers, which must be \nwelded for reuse. In addition, the leg strips, lids and bases \nthat return to us are also reused. \nRecycled material \nWeight \nPaper & cardboard \n12,250 kg \nMetal (scrap) \n60,059 kg \nPlastic \n3,100 kg \nTOTAL \n75,409 kg \n15 \nAs part of the obligations, the Environmental Management Plan describes the Solid \nWaste Management Plan where activities are established to minimize the generation, \ncontrol of volumes through generation registries, adequate temporary storage in sealed \ncontainers marked for separation and classification in areas destined for removal by \nlicensed waste contractors. \nAnnual \ndeclaration \nof generated \nhazardous \nwaste \nControl and \nrecord of \nquantities \ngenerated \nControl and \nrecord of \nquantities \ngenerated \n Management \nof hazardous \nwaste \nPlaces of \nsolid waste \ngeneration \nClassi\ufb01cation \nprocess \nIdenti\ufb01cation \nof waste type \nand nature \n Management \nof non- \nhazardous \nwaste \n\ufb01nal \ntreatment \nor disposal \nIntegral management of solid waste \n98 \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"]
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