Operational emissions halved with climate neutrality by 2040 in sight

• Wood-based materials company Sonae Arauco aims to achieve climate neutrality in the scopes 1 and 2, ten years ahead of the EU target.
  
  
• A €38 million investment plan is driving decarbonisation; €5.3 million is already EU Taxonomy-aligned.
  
  
• The circular economy and technological leadership secure raw materials in volatile times.

With the publication of its first global Sustainability Report, Sonae Arauco reports strong progress in its climate transition: since 2019, the company has reduced its operational carbon emissions (Scope 1 and 2) by 52.5 per cent. The results underline the effectiveness of the company's €38 million Climate Transition Plan and support its ambition to achieve climate neutrality in its own operations by 2040, ten years ahead of current EU targets.

A strong regulatory alignment secures financing and market access

A cornerstone of this strategy is rigorous alignment with demanding frameworks such as the Corporate Sustainability Reporting Directive (CSRD) and the EU Taxonomy. For the year 2025, the report already identifies capital expenditure (CapEx) of €5.3 million classified as EU Taxonomy-aligned. These investments meet the EU’s sustainability criteria and demonstrate how sustainability is increasingly embedded in the company’s core business activities. This forward-looking approach strengthens access to sustainable finance and supports long-term competitiveness.

Securing raw materials through technological leadership in wood recycling

In times of volatile raw material markets, Sonae Arauco’s circular economy model is proving to be a key resilience factor. By increasing the use of secondary raw materials, the company is strengthening resource security and reducing its exposure to fluctuations in raw material availability. Globally, 42 per cent of the wood used already comes from recycled material and by-products – in individual product lines, the recycling rate is as high as 80 per cent.

The company continues to advance technological capabilities in wood recycling, particularly in the reuse of post-consumer wood and fibreboards, reinforcing its position as an industry leader in circular solutions.

Energy independence through the Climate Transition Plan

To reduce dependency on volatile fossil energy markets and as part of its Climate Transition Plan, Sonae Arauco is increasing the share of renewable energy through own generation, power purchase agreements and certified green electricity. The share of renewable energy in the company’s overall energy mix has already risen to 74 per cent. In 2025 alone, €15 million was invested in renewable energy, energy efficiency, and the electrification of production.

Rui Correia, CEO of Sonae Arauco, emphasises: "For us, sustainability is a shared responsibility. It is embedded across functions, sites and leadership levels, supported by a governance model that ensures ESG topics are fully integrated into strategic, operational and investment decisions. More than a reporting exercise, it reflects our conviction that transparency, robust governance and forward-looking sustainability management are essential to building a resilient and competitive business."

A record year for safety performance

2025 marked the best year in Sonae Arauco’s history in terms of occupational safety, reflecting a consistent focus on prevention, training and a strong safety culture across all sites. Continuous improvements in processes and employee engagement have contributed to a further reduction in accident frequency, reinforcing the company’s commitment to ensuring a safe and healthy working environment.

Direct economic returns through sustainability

The fact that sustainability transition also pays off financially is demonstrated by increased resource efficiency: investments in decarbonisation go hand in hand with a comprehensive modernisation of the plants. As a result, waste intensity fell by six per cent and water intensity by six per cent in 2025 alone. Furthermore, the improved ESG performance has a direct, positive impact on financing costs: a major loan of €200 million is linked to concrete sustainability targets, including a further increase in the share of recycled wood and a reduction in carbon intensity.

Sonae Arauco's achievements are also validated by independent bodies. The company has recently received the EcoVadis Gold Medal, placing it in the top 5 per cent of companies assessed globally. By joining the UN Global Compact, the manufacturer has also committed itself to the highest international standards of responsible corporate governance.

With its first Sustainability Report, Sonae Arauco provides a transparent and comprehensive overview of its performance, reinforcing its commitment to measurable progress, robust governance and long-term value creation. The report reflects the company’s belief that sustainability is not only a responsibility, but a key driver of resilience and competitiveness in an increasingly demanding global market.