Aracruz's commitment to sustainable development is demonstrated through the high degree of transparency by which this 2007 Sustainability Report is produced. This transparency helps outsiders evaluate the path the Company is taking - and the actions it plans to take - to achieve a fully sustainable level of management. The beginning of the report probably will not be as of much interest to readers whose focus is on the social and environmental issues, yet it includes many interesting facts and data. Aracruz's efforts to openly engage the communities in which it is present constitutes a landmark in the Company's history. However, a lot more needs to be done. The Company must improve its ability to evaluate its social projects. Additionally, it still has work to do to realize its full natural potential for leadership of sustainability issues in its management processes. The 2007 Sustainability Report openly recognizes the company's limitations and, accordingly, sets the stage for its future actions. As such, it is a major achievement that merits recognition, and is a solid step in the direction of full exercise of its social and environmental responsibilities.

Flávio Comim
Professor at Cambridge and the Federal University of Rio Grande do Sul (Brazil)
Cambridge - England. April 2008

A word of warning: a Sustainability Report reveals an important process for a company due to the fact that it summarizes a company's insertion into society. It is the result of an internal cultural process that seeks horizontal and vertical integration, as well as a relationship with stakeholders.

So, one should read such a Report from the perspective that this is a challenging process. The subject of Sustainability is relatively new in the business world, and the preparation of a Report requires a dialogue with society that reflects what is truly important from the standpoint of the different actors who co-exist with the Company. In the case of Aracruz, I have followed the development of its Reports for quite some time. They have demonstrated a significant evolution with regard to how they inform readers - no matter how diverse - about a company that is a leader on so many fronts.

The reading of a Sustainability Report allows a prepared reader to learn about the risks within a given company - not just risks that are economic in nature, but also regarding issues that are increasingly appreciated by contemporary society, such intangible assets as "reputational capital". In order to advance further, there is a need to stimulate companies to understand the importance of these Reports as well as the strategies that make it possible to establish two-way communications with all stakeholders.

Aracruz is a company which has undeniable operational “triple bottom line” strength. The financial numbers speak for themselves. Regarding other dimensions, the efforts to obtain forestry certification (whether through CERFLOR or more recently through the FSC) show that the company is in tune with the idea that the consumer is increasingly becoming an agent to induce changes in society by choosing to buy from companies that are in step with the need for global sustainability.

Regarding this Report, it is important to point out that it satisfies its main objective: to maintain credibility for the company. This is important, because in Brazil until now no one has been able to demonstrate that this type of a report is little more than a marketing tool. Problems, conflicts, and challenges are inherent in business. It is important to demonstrate the Company's attitudes and policies in challenging situations. This ensures a permanent dialogue, and in the final instance, adds value to shareholders, employees, communities, and members of the production chain - that is, society at large.

My personal training and history focus my attention on the social and environmental aspects, because the Company has been the target of tensions involving quilombolas and indigenous populations, as well as discussions about the planting of eucalyptus trees to produce pulp. Aracruz's approach to these issues, demonstrated by negotiated solutions, has been the hallmark of its treatment of such complex issues. The information contained in this Report is sufficient for readers to understand the conflicts that, nevertheless, have solutions that are being implemented, with the participation of government and the communities directly affected by such activities.

With regard to sustainable development, it should be noted that the Company has sought engagement with representative organizations in society to put forth a positive agenda involving actions to generate income and to format public policies for forestry matters and the conservation of biodiversity. Coupled with these topics, the Report presents data enabling comparisons with previous periods and other companies. Still, it is always good to state that because this is a Report that portrays long-term processes, we should follow the evolution of performance which demonstrates compliance with improvement targets.

Finally, I would like to make an important observation regarding global climate change. With the disclosure of the 4th Intergovernmental Panel on Climate Change (IPCC), the level of awareness regarding the urgency and seriousness of the problem has changed. Companies play a significant role in confronting the problem, particularly those that have a forestry base. The existence of an "emissions inventory" demonstrates that Aracruz is looking towards the future, is engaged in resolving the problem, and can contribute effective solutions through its business practices.

Fabio Feldmann
Environmentalist and consultant
São Paulo - Brazil
April 2008