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Management Programs

The Socioenvironmental Program is a program that has been developed with the objective of aligning the new businesses Dexco has acquired with the main social and environmental themes. Over a period of two years, this program disseminates the company’s Sustainability Strategy, standardizing the policies and practices followed by the organization.

The initiative is built around three main pillars: Management, Suppliers and Communities. During the first year of implementation we establish a local internal team to work on socio-environmental issues. We assess the new business’s existing practices, programs and projects; identify risks and opportunities; introduce our policies; standardize the management dashboard; measure adherence to market indices and compliance with current legislation; map critical suppliers; and understand the relationship with the surrounding communities.

In the second year, as the program consolidates, management systems and actions plans are put in place, critical suppliers are identified, communities are contacted, and targets related to the indicators are mapped.

Our suppliers play an important role in representing our brands. For us, just as important as having a business model aligned with sustainability is knowing that our
supply chain is also on board with these goals and aspirations, so that, working with society, we can develop and generate value.

Since 2012 we have run the GFD (Supplier Management) program, which ensures a structured management process for assessing our supply chain, based on
socio-environmental, economic and quality criteria. Furthermore, in 2018, we developed a ‘criticality matrix’, which is used as a tool for selecting strategic partners, with a view to ensuring that they are aligned to our Proposition. A
lso, that the Company’s main guidelines are always aligned, we have a Supplier Conduct Guide, a document that guides the essential practices to be complied with by our partners.

The GFD assessments are carried out annually, with the support of specialist, independent consultants, and aim to engage and develop our suppliers with respect to market best practices so we can thus mitigate risks related to the value chain and create a business that is ever more ethical and responsible. Since its launch, seven years ago, the program has covered approximately 400 suppliers and included over 200 on-site visits.

Supply Academy

Also in 2018, we set up the Supply Academy – Supplier Module initiative, which trains and develops our partners with respect to sustainability issues considered
strategic to both our business and society as a whole. Among the topics covered are the inclusion of people with special needs, Safety at Work, and Combating the Exploitation of Children and Adolescents.

Child Protection and Care

Since 2007, we have been committed to combating child labor, forced labor, and that offering slave-like conditions. We are sponsors of Childhood Brasil’s Na mão Certa (on the right track) program, which aims to eradicate the abuse and sexual exploitation of children and adolescents on the country’s highways. Periodically, we promote actions for raising awareness of the subject with our suppliers’ truck drivers, so that they can remain vigilant on the highways. In 2018, we broadened the scope of the scheme by starting to raise awareness of the issue in our communities.

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GFD Program

Since 2012, Dexco, in partnership with Gestão Origami, has sought to engage suppliers and promote the adoption of sustainable practices throughout the Company’s supply chain, through Dexco’s Supplier Management Program (GFD).

The GFD program encompasses a structured management process – developed using socio-environmental, economic, compliance and quality criteria – which aims to create synergy and share Dexco’s Mission, Vision and Values with its suppliers. The Program is one of the Company’s main mechanisms for managing the relationship with suppliers, its aim being to encourage the adoption of practices that contribute to a more durable business and a fairer society.

 

Partnership Solutions

Getting closer to our customers and consumers has enabled a switch of focus from doing things “for them” to doing things “with them”. It is a modus operandi built on frequent dialogue.

Through Client Committees, the sales areas of our brands hold periodic meetings with the intention of co-creating, adapting and perfecting the Solutions for Better
Living market offerings developed through the exchange of ideas and experiences. The main architecture, finishings and decoration fairs also offer opportunities to listen to our public.

Wood procurement

Our fiberboard factories in Brazil are supplied only with certified wood (83.0% of total consumption in 2021) or from other controlled sources.

For wood procured from third-parties in Brazil, we have a due diligence system in which we assess environmental, land tenure, labor, tax and social aspects, both from the supplier itself and the supply units (farms). All suppliers pass through a homologation desk audit before any acquisition of wood, which is followed by field audits conducted by the Dexco forestry team in each one of the supply units, up to the forest of origin of the wood. This allow us to ensure full traceability of the wood used on the manufacturing of our forest-based products.

When audits identify any issues, we support the supplier to create a corrective action plan. If a serious issue (lack or a required environmental permit, for example) or many small problems are found, the supplier is suspended until the issues are addressed. Suppliers can be excluded if unacceptable problems are identified (such as child or forced labor) and can no longer supply wood to Dexco.

In 2021, we procured wood from 40 third-party suppliers, 33 straight from the forest (supply unit) and 7 from sawmills (involving tier-2 suppliers). 163 desk and field audits were conducted throughout the year, which resulted in the suspension of 4 suppliers. The issues that ended in these suspensions did not involve natural ecosystems conversion, instead were related to occupational health and safety documentation.