The circular economy is a strategic concept based on the reduction, reuse, recovery, and recycling of materials and energy, which includes the design of a more resilient economic model. It involves the sustainable use of natural resources, in which all products form part of a cycle and are reused several times in the production process.

Our production model is based on several principles of the circular economy and is designed to maximise efficiency and safeguard natural resources. We currently return over 80% of the water we use to the environment, and 90% of the raw materials we use are of renewable origin. By 2030, we aim to recover 90% of waste that is produced.

To recognise the importance of analysing the supply chain and understand what impacts the business has across the value chain. The adoption of ethical practices and respect for the environment and human rights are issues that companies should take into consideration when reviewing their suppliers.

We seek to ensure the resilience of our supply chain, which is 74% domestic. We have a Supplier Code of Conduct, which aims to ensure alignment with Navigator's ethical, environmental and social guidelines. We survey supplier carbon footprint reduction commitments with a view to supporting those who do not yet have instruments and policies in this field.

Human capital is a company's greatest asset and a differentiating element in its development strategy. In the search for sustainable competitive advantages, it is intellectual capital such as knowledge, experience and expertise that increasingly influence the competitiveness of companies.

Our strategy is focused on enhancing and protecting our people. We internally promote opportunities for professional and career development for our employees, by creating customised plans, and aligning their needs with those of Navigator. The objective is to cover 80% of employees with these plans by 2030, including training and establishing responsibilities and differentiation criteria that can guide the professional development of each one. We have improved occupational health programmes.

Biodiversity loss is one of the most pressing global crises of our time. Promoting the protection, conservation and restoration of nature and ecosystems is crucial in obtaining benefits in terms of climate regulation, resource availability, and other environmental and social services.

The forest areas under our care are managed sustainably, are 100% certified by FSC® and PEFC* systems, and we are committed to generating a positive impact on biodiversity, through conservation and monitoring actions. We promote the afforestation of scrubland areas with native species and production species that are managed according to a sustainability model. We also positively influence the conservation of biodiversity in third-party areas by sharing expertise, training, and spreading awareness. We develop additional projects in the area of agroforestry, which combine production forestry with other uses of the land.

* FSC - Forest Stewardship Council® (Licence no. FSC® - C010852); PEFC - Programme for the Endorsement of Forest Certification schemes (Licence no. PEFC/13-23-001)

The risk of failure in climate action is considered by the World Economic Forum as being the single most damaging issue for society, the economy, and the planet, in both the short and longer term, and it reiterates the need for an economic recovery based on a low-carbon model.

In our Carbon Neutral Roadmap, we have made a commitment to invest in low carbon solutions with the aim of reducing direct CO2 emissions from our industrial sites by 86% by 2035. We also intend for 80% of the primary energy we consume to be of renewable origin by 2030. We have been investing in energy from renewable sources, such as biomass and solar energy, and in projects to increase energy efficiency. We are working to reinforce the positive contribution of our forests in mitigating the effects of climate change, given their important role as carbon sinks.

The adoption of more sustainable consumption patterns is one of the ways to respond to the problem of over-exploitation and scarcity of resources, which could lead to decreased availability of raw materials in the future. Sustainable resource consumption calls for awareness of the impacts on ecosystems and the need to change behaviour and consumption patterns.

Our products are naturally sourced, biodegradable and recyclable, and we ensure that best practices are applied throughout the entire value chain. Our forest management is certified and we aim to source 80% of our wood from certified sources by 2030. Consumers are provided with a guarantee of sustainable consumption by way of the forest and/or EU Ecolabel certification labels on our products.

The era of technological revolution will transform the daily lives of people and companies, creating solutions to certain social and environmental issues. This will be a key moment for companies to leverage the technological revolution, enabling them to invest in decarbonisation, the bioeconomy, mobility, and the digitisation of their processes and ways of working.

Navigator's technological development is closely related to the areas of R&D and innovation, which seek to respond to the Company's short to medium-term challenges in the forestry and product fields through the activity carried out by RAIZ - Instituto de Investigação da Floresta e Papel (Forestry and Paper Research Institute). Across the whole company, we are addressing issues related to Industry 4.0 and digital transformation in all operational areas.

Over the past decade, discussions about the future of work have been predominantly linked to the theme of automation and how people will adapt to this new era. The pandemic has speeded up digitalisation and, as a consequence, the need to re-train and prepare human capital for new roles and work processes.

In line with the response to the "Investment in human capital" challenge, we have been mapping out internal succession plans in order to ensure the sustainability of the various job levels in the future. At a later stage, we intend to align staff development plans with this mapping. We continue to invest in the development of ICT skills.