Empresas CMPC S A : Integrated Report 2020

C R E AT I N G N AT U R A L V A L U E

Integrated

Report

2020

1. CMPC	2. Value creation	3. Create	4. Coexist	5. Conserve	6. Sustainability Culture	7. Management	8. Annexes

I N T E G RAT E D R E P O RT C M P C 2020

(102-1;102-3;102-5)

Name: Empresas CMPC S.A.

Chilean Tax ID Number (RUT): 90.222.000-3.

Head Office: 1343 Agustinas St, Santiago, Chile

Telephone: [phone]

Corporate website: www.cmpc.com

Incorporation: A publicly traded corporation controlled by the Matte Group which owns 55.83% of the share capital. incorporated on February 5, 1920, at the Notary Public's office in Santiago of Mr. Manuel Gaete Fagalde. Decree N° 589, as Compañía Manufacturera de Papeles y Cartones.

CONTACTS:

(102-53)

• To learn more about the 2020 Integrated Report, please contact Francisco Torrealba, Public Affairs Assistant Manager, by e-mail at [e-mail]
• For more information on sustainability, please contact Nicolás Gordon, Sustainability and Environment Manager, by e-mail at [e-mail]
• To contact Investor Relations, please contact Colomba Henríquez, Investor Relations Assistant Manager, by e-mail at [e-mail]
• For information on corporate governance, please contact Rafael Cox, Chief Legal Officer, by e-mail at [e-mail]

C R E AT I N G

N AT U R A L

V A L U E

cmpc

I N T E G RAT E D R E P O RT C M P C 2020

1. CMPC		2. Value creation		3. Create		4. Coexist

C O N T E N T S

5. Conserve		6. Sustainability Culture		7. Management		8. Annexes

1. CMPC	6	5. CONSERVE	152
1.1 Message from the Chairman of the Board	8	5.1 Forest assets	155
1.2 Our business areas	16	5.2 Active ecosystem conservation	162
1.3 100 Years of cmpc	32	5.3 Climate emergency response	168
1.4 A look at 2020	36	5.4 Environmental and operational efficiency	178
1.5 Our corporate strategy	46

p. 115

p. 66

2. VALUE CREATION

1. Corporate purpose
2. Contribution to SDG
3. Strategic sustainability approach
4. Governance for sustainability
5. Networking

COVID-19

3. CREATE

1. CMPC Beyond
2. Innovating for people
3. Improving customer experience
4. Product life cycle

48	6. SUSTAINABILITY CULTURE	200
6.1 Culture of integrity	203
50
6.2 Risk management	211
52	6.3 Sustainable economic performance	220
54	6.4 Investment projects	224
62	6.5 Financial results	225
65
66	7. MANAGEMENT	238
7.1 Board of directors	240
80	7.2 Senior executives	252
7.3 Ownership structure	257
83	7.4 Investor relations	261
90	8. ANNEXES	262
98
105

Launch of innovation and diversity and inclusion goals

p. 83

CMPC Beyond, together planning the future

Our actions in a year marked by the Coronavirus

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4. COEXIST

1. Diversity and inclusion
2. Worklife cycle
3. Health and safety
4. To contribute to development of territories
5. Local development
6. Corporate citizenship

112
115
122
128	p. 162
132
148
150	Protection programs
species by CMPC

p. 146

Learn more about the Desafío Agua Chile, an example of commitment and relationship with local communities.

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RI NETPEOGRTRATE IENDTREEGPRAO DRTO CMPC 20202020

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1. CMPC

2. Value creation

3. Create

4. Coexist

5. Conserve

6. Sustainability Culture

7. Management

8. Annexes

1 .

C M P C

CHAPTER HIGHLIGHTS:

• Message from the Chairman of the Board.
• 100 years developing solutions from renewable resources that meet people's needs.
• Our business units are: CMPC Celulosa, CMPC Biopackaging, and Softys.
• Our 100 years of history.
• Year 2020 in milestones, figures, and recognitions.
• CMPC's corporate strategy.

DANIELA DE AZEVEDO FIGUEIREDO, TECHNICAL ASSISTANT, GUAÍBA PLANT (BRAZIL).

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1.1 Welcome to CMPC

1.2 Our business areas

1.3 100 years of cmpc

1.4 A look at 2020

1.5 Our corporate strategy

GC

FSG

GRI

1. CMPC	2. Value creation		3. Create		4. Coexist

1.1 Message from the Chairman of the Board

It's time to get involved

[102-14]

5. Conserve		6. Sustainability Culture		7. Management		8. Annexes

DEAR SHAREHOLDERS:	professionalism with which each one of
I am pleased to greet you and present to
you the Integrated Report of Empresas	them responded to this situation in the
CMPC, which includes the Annual Report,	different countries where we are present.
Balance Sheet and Financial Statements	As I reported in the 2019 Integrated Re-
for 2020, as well as the Sustainability
Report, prepared in accordance with	port letter, we established the first pan-
the guidelines of the Global Reporting	demic preparedness measures shortly
Initiative (GRI) and the International Inte-	after the start of 2020, suspending trav-
grated Reporting Council.	el and establishing protocols that, over
This Integrated Report is also a Commu-	the weeks, were strengthened with spe-
cialized advice, recommendations from
nication on Progress (CoP) for the United	health authorities, and the incorporation
Nations Global Compact, a network that	of international best practices.
we joined in March 2018.	By mid-March, the implementation of
As in previous years, I would also like to
these care protocols had already resulted
take this opportunity to share some re-	in more than 5,000 direct employees tele-
flections on our company's performance,	working, as well as a thorough reorganiza-
as well as on local and global events, in	tion of plant shifts to reduce staffing levels
the context of a year that will surely be re-	to a minimum and thus reduce the risk of
membered as one of the most complex,	contagion without jeopardizing our oper-
unexpected and challenging in the history	ational capacity.
of mankind.	Because we understood early on-and this

The pandemic, in this sense, confirmed that the forest industry, with all its derived products, is absolutely fundamental for the normal functioning of people and constitutes an essential supply - in addition to being environmentally friendly - in areas as relevant as food, pharmaceuticals or personal care and hygiene. This is why, as this report confirms, we have invested our utmost efforts in implementing and promoting an industry that is capable of responding to these unavoidable needs under the highest standards of responsibility and sustainability to ensure its continuity in the long term.

This has been recognized by the market, as reflected in the Dow Jones Sustainability Index, which ranked CMPC as the second most sustainable forest company in the world. Also, for the sixth consecutive year, the company was selected to form part of the Dow Jones Sustainability Index

Luis Felipe Gazitúa, signing the agreement for the donation of mechanical ventilators to the Edgardo Rebagliati Martins National Hospital in Lima (Peru).

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For this reason,	I believe it is essential	was ratified by both the authorities and
to begin this report with a sincere and	public opinion itself according to different
profound recognition of the entire	surveys-that our products were a sub-
CMPC team, including our direct and	stantial part of a supply chain that could
indirect collaborators.	Because just as	not fail in the face of adversity. As a result,
we set ourselves the mission of taking care	the permanent challenge of developing
of them, establishing protocols, and mak-	our activities under all circumstances ac-
ing the necessary adjustments for their	quired new vigor and was assumed by
best performance, we are also witnesses	each of the members of this team.
to the conscientiousness, dedication, and

Chile; for the fourth year, in the MILA Pacific Alliance and for the second, in the Emerging Markets index. For its part, CDP placed the company on its exclusive A List for water use and combating deforestation.

However, I must confess that none of these recognitions and none of the

lessons we were able to learn in the pandemic, as valuable as they are, could compensate for the sad losses of some of our collaborators, family members, and friends as a result of Covid-19.

I extend my most sincere condolences, as well as those of the entire Board of Direc- tors, to those who saw the loss of loved ones during these difficult times. We trust

that greater medical knowledge about the behavior of the virus, as well as the gradual mass vaccination, will allow us to recover the confidence and normality that we all long for.

For our part, we have chosen to project and budget for the 2021 fiscal year under cautious criteria, always

prioritizing the care of direct and indirect collaborators for the necessary operational continuity. This does not prevent us from looking to the future with optimism and making our best efforts to make permanent the changes and achievements made during this state of emergency, as well as to visualize and prepare ourselves for the fundamental transformations demanded by tomorrow.

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	1.1 Welcome to CMPC	1.2 Our business areas		1.3 100 years of cmpc		1.4 A look at 2020		1.5 Our corporate strategy	GC	FSG	GRI