Annual Report 2023 · Management Report 4
Management Report
1. Overview 6
1.1. Message from the Chairman 6
1.2. Message from the Chief Executive Officer 8
1.3. 2023 in numbers 12
1.4. Highlights 18
1.5. Awards 20
1.6. Partnerships for impact 21
2. Our Identity 23
2.1. Purpose and Values 23
2.2. Profile 24
3. Strategy and governance 28
3.1. Business Strategy 28
3.2. Governance model 30
3.3. Risk management 30
4. Performance in businesses 40
4.1. Bleached eucalyptus pulp (BEKP) 41
4.2. Paper 41
4.3. Packaging 43
4.4. Tissue 44
4.5. Energy 44
4.6. Financial performance 45
4.7. Sustainable finance 46
4.8. Share performance 47
4.9. Contribution to State tax revenues 49
4.10. The Navigator Group's tax policy 53
5. Creating sustainable value 54
6. Sustainability declaration 65
6.1. Technical disclosures 65
6.2. General disclosures 66
6.2.1. Sustainability governance 66
6.2.2. Global trends and challenges for Navigator 71
6.2.3. Double Materiality 85
6.2.4. Our 2030 Agenda and Roadmap 89
6.2.5. Contribution to SDGs 99
6.2.6. Stakeholder engagement 103
6.3. Environmental information 107
6.3.1. European Union Taxonomy 107
6.3.2. Climate change 135
6.3.3. Sustainable forestry management and conserving biodiversity 150
6.3.4. Water management 172
Annual Report 2023 · Management Report 5
6.3.5. Use of resources and circular economy 183
6.4. Social disclosures 194
6.4.1. Talent management and development of human capital 194
6.4.2. Health, safety and well-being 206
6.4.3. Community relations 216
6.5. Governance disclosures 229
6.5.1. Responsible business conduct 229
6.5.2. Research and innovation in the forest-based bioeconomy 242
6.5.3. Customer Management 253
6.5.4. Supply Chain Management 260
7. Proposed allocation of profits 268
8. Declaration required under Article 29-G.1 c)
of the Securities Code 269
9. Our performance 270
9.1. Economic Indicators 270
9.2. Environmental Indicators 272
9.3. Social Indicators 275
10. Annexes to the Sustainability Information 278
10.1. Detailed 2030 Roadmap 278
10.2. Consolidated non-financial statement 292
10.2.1. DNFI Table (Disclosure of Non-Financial Information) 292
10.2.2. GRI Correspondence Table 296
10.2.3. GRI Table 299
10.3. ESRS Correspondence Table 338
10.4. Table summarising World Economic Forum’s Stakeholder
Capitalism core metrics 344
10.5. Verification of information - Independent Limited
Reliability Assurance Report – KPMG 346
10.6. Alignment with TFCD (Task Force on Climate-related Financial
Disclosures) recommendations 349
Annual Report 2023 · Management Report 6
1. Overview
1.1. Message from the Chairman
Having celebrated in 2023 seven decades of uninterrupted operations, built on Portuguese resources and talent, The Navigator
Company continues to have an impact on the lives of thousands of people throughout its ecosystem, generating wealth and
benefits for the environment, society, and the economy.
A positive impact that is multiplied and passed on through the people and companies with which the Navigator Group interacts on
a daily basis and with whom it seeks to establish lasting relationships. A recipe for creating value from the forest to the end
product, bearing witness to The Navigator Company's extraordinary ability to reach out to multiple sectors of our society.
The Navigator Company has been implementing a wide-ranging and inspiring commitment to sustainable development within the
framework of its 2030 Agenda for responsible business management, a conceptual and operational template that is guiding the
Company and its people through the challenges and opportunities of this decade. This agenda has been built around the United
Nations Sustainable Development Goals and is an integral part of our Purpose, our decision-making and our business strategy.
When we say in this report - for the first time combining The Navigator Company's sustainability and financial reporting - that “We
Create Value”, we are referring directly to this holistic vision inspired by our Purpose, that sets the course for our decisions and
our strategies, present and future.
The Navigator Company's Corporate Purpose expresses our strategy of sharing with Society not only our results, but also our
know-how, our experience, and our resources, with a commitment to leaving a better planet for future generations - through
natural products that are sustainable, recyclable and biodegradable, that help to sequester carbon and produce oxygen, that
protect biodiversity, improve the soil and combat climate change.
Along our journey, we have been promoting planted forests as the foundation for a forest-based bioeconomy in Portugal, with
home-grown know-how, research, and technology. This is a contribution, as asserted in our Purpose, to the much-needed
transition from a linear model to a circular development model, neutral in fossil carbon.
We create environmental value, starting in our active and professional management of our planted forests, which in 2023 covered
an area of 107,871 hectares in mainland Portugal. These forests are certified and conciliate the interests of producing wood and
other forestry products with other ecosystem services, fostered by our management approach, such as promotion of biodiversity,
soil protection, regulation of the water cycle and creation of pasturage, as well as carbon sequestration.
I would here draw your attention to our continuous and systematic work in conserving biodiversity in the areas under our
management, offering an example of our sustainable approach which conciliates the different functions of forests. In 2023, more
than 250 species of fauna were identified, catalogued, georeferenced and protected, along with approximately one thousand
species and sub-species of flora.
Another aspect of our sustainable management of resources can be seen in the 7.3 million plants produced during the same year
in our nurseries, for the renewal of Portugal’s forests.
Throughout our production cycle, we also generate socio-economic value, incorporating local goods and services – in 2030, 73%
of our 7,500 Suppliers were Portuguese. Also, this year, the total economic value distributed by The Navigator Company stood at
more than €1,848 million. By virtue of the jobs and income it generates in its home country, The Navigator Company makes a
larger contribution to National Value Added than any other Portuguese exporter.
Annual Report 2023 · Management Report 7
These achievements are also firmly anchored in R&D&I, the key factor defining much of our history and our corporate identity.
Just as 70 years ago we led the world with our pioneering solutions for pulp and paper made from eucalyptus globulus, today we
are using our sound business structure, our tradition of innovation and all our accumulated expertise as a launchpad for a new
period of diversification, with a strong positive impact.
With this in view, we pressed ahead in 2023 with developing our sustainable packaging business, offering products able to
substitute the fossil-based plastics that dominate the segment, and we will continue to invest heavily in this venture over the next
two years.
This massive investment drive also involves our From Fossil to Forest Agenda, led by the Company and approved under the
Recovery and Resilience Plan (RRP), in the quest for sustainable packaging products to substitute fossil plastic. This mobilising
agenda includes projects to develop high yield chemical pulp and brown papers, project to develop moulded cellulose for hard
packaging, projects for developing papers with improved mechanical strength and papers with barrier properties.
The capacity to grow, with a Purpose that is relevant and sensitive to the great societal challenges of our time, opens up excellent
prospects for the future of The Navigator Company and its importance to society.
These are ambitions that are justified by our people, their talent and expertise. Developing our people is a central plank of our
strategy, and in 2023 The Navigator Company provided more than 259 thousand hours of training to its workforce (equivalent to
78 hours, on average, for each Employee). Significant investment is also made in attracting and retaining the best talent, with a
specific focus on younger generations, creating opportunities for the innovative potential of young professionals, through well
designed recruitment and selection programmes, custom-made for evolving needs. Of The Navigator Company's 3,317
Employees, 434 (13%) are aged under 30. And in 2023, 31% of new hires were in this age range.
As in previous years, 2023 was a year in which we responded to far-reaching and rapid change by putting all our energy and
creativity into the search for new approaches, and it is extraordinary to see the ability of all The Navigator Company's Employees
to rise to the challenges they faced.
The Semapa Group, to which The Navigator Company belongs, has been pursuing the goal of growth based on talent and
investment, in the clear conviction that together they will enable us to achieve lasting development and a positive impact on the
ecosystem and society.
With its eyes on the future, The Navigator Company focused in 2023 on securing the future of its current businesses and investing
in new paths to sustainable growth, and with this made a crucial contribution to the strategy of our Group.
Ricardo Pires
Chair of the Board of Directors
Annual Report 2023 · Management Report 8
1.2. Message from the Chief Executive Officer
“We plant the future” is an assertion in this report that bears witness to our business vision and draws a clear and objective
connection between the decisions we make today and the positive impact we want to have on our common future.
For Navigator, the idea of “planting” a better future for People and the Planet is more than just a metaphor. Instead, it speaks of
our daily work in caring for, and investing in the forests we actively manage in sustainable cycles of growth and replanting. It
expresses the value we add to a unique raw material in world-class products. It demonstrates how, based on our experience and
ability to put knowledge from R&D and innovation to industrial use, we are developing new bioproducts which stand out as
natural, recyclable and biodegradable alternatives to products the world currently obtains from petrochemicals.
Creating a sound situation today as the launchpad for a sustainable future sums up much of what we did in 2023.
Over the course of the year, we pressed ahead on a journey as a bioindustry on the right side of the future, taking care of our
current business areas and our financially sound situation, whilst also stepping up strategic investment, especially in areas related
to decarbonising operations and diversifying business areas, with which we are contributing to a low carbon circular economy.
Our tissue sector received an important boost in 2023 with the acquisition of a new unit in Spain at the start of the second
quarter. In just a few months, what is now Navigator Tissue Ejea had provided extensive synergies, resulting in significant
diversification of our customer base and growth in sales. As a result, we closed 2023 with sales up by 40% in volume and 49% in
value. Only eight years after diversifying into the tissue segment, Navigator has established itself as the 2
nd
largest producer in
Iberia, with total annual production capacity of 165 thousand tons and annual converting capacity of 180 thousand tons.
Active role in decarbonisation
In 2023, we speeded up development of sustainable packaging solutions from short Eucalyptus globulus fibre, thereby
contributing to a reduction in the use of plastic. We have prepared new product lines and done this in hand in hand with the future
users of these goods, conducting more than 220 trials with more than 100 customers, more than two thirds of whom are new
Customers for the Company.
As part of this diversification of our business, we are set to start up, in the second half of 2024, the first integrated production line
for moulded eucalyptus cellulose parts, to be launched under the gKraft™ Bioshield brand. With capacity to produce around 100
million units a year, this plant will be the largest in southern European and one of the largest integrated units in all of Europe,
positioning The Navigator Company in a fast-growing segment with huge potential.
Our gKraft brand today has a base of more than 230 active Clients, in 30 countries, after moving into this business in 2020. In
2023, this venture earned us the National Innovation Award, whilst the RRP Mobilising Agenda entitled "From Fossil to Forest -
Sustainable Packaging Products to Substitute Fossil Plastic", led by Navigator, was selected by Deloitte Portugal for its
Transformation Award, distinguishing transformation, and innovation projects with an impact on markets.
We are firmly committed to these new paths to growth, furthering a forest-based bioeconomy supported by R&D, innovation and
our existing industrial base. The next two years will entail heavy investment, especially in the From Fossil to Forest Agenda. In
addition to moulded cellulose, this will involve developing high yield chemical pulp and brown papers, as well as papers with
barrier properties and biocomposites.
The concept of a bioindustry on the right side of the future is what defines us, and it means not just developing all the dimensions
of this new bioeconomy, but also looking after and taking care of our own impacts. In 2023, 57% of all our capital expenditure,
totalling €187 million (up by 74 million from 2022), was allocated to projects classified as ESG, with a financial return.
Annual Report 2023 · Management Report 9
I should here stress that 2023 was an especially important year in the development of our Decarbonisation Roadmap, thanks to
an investment plan which will bring forward our interim targets for direct EU ETS emissions by three years. By 2026, we will
achieve the goals originally set for 2029. By that year, emissions will be almost 60% lower than in 2018, the baseline for the
Roadmap. In 2023, the reduction was already 41%. Also in 2023, we recorded a reduction of 26% in scope 1 and 2 emissions, in
relation to 2020 (the baseline for our SBTi targets). All these achievements reflect our heavy investment in cutting emissions of
fossil carbon dioxide from our operations: over the period 2019 to 2028, this expenditure totalled €340 million.
In February 2024, The Navigator Company was again singled out as a leader in combating climate change, and in forestry
management, with a score of "A-" awarded by CDP Disclosure Insight Action.
This focus on decarbonisation is part of a broader commitment, that we have made in alignment with the Climate and Nature
action area in our 2030 responsible business management Agenda, which also includes efficient water use. We made great strides
in 2023 with our Water Use Reduction Programme (WURP), with completion of 10 of the total 34 projects. The aim is to increase
reuse of this resource in our industrial processes.
In total, our investment in efficient water management is in excess of €25 million. At present, we return to the environment 78%
of our water intake, whilst specific consumption (per ton of output) in our industrial operations is down by 5.1% from 2019, the
baseline for our 2030 targets.
Growing with the value chain
The Navigator Company is aware of its responsibility to the Community, in view of its leading position in the generation of wealth
in Portugal. Creating long-term value and sharing our achievements and knowledge with our Stakeholders are the foundation of
our Corporate Purpose and are built into our 2030 Agenda.
We have a positive impact on tens of thousands of people in all the markets in which we operate. Our products, exported to 135
regions around the world, contribute to people's quality of life, helping them to express ideas and communicate, to care for their
hygiene and health, or else to wrap, protect and transport goods in a sustainable way. We create a positive impact on society as a
whole in our approach to forestry, conciliating the interests of production with the values of conservation, including protection of
more than 50 habitats in the Natura 2000 network, as well as more than 1,300 species of fauna and flora that we have identified,
geolocated, catalogued and protected on properties under our management. Our positive impact also stems from the renewable
energy we produce from waste biomass and waste materials from forestry operations, because we help clear woodlands of
undergrowth and brushwood, for the safety of local people.
We create opportunities throughout Portugal, not just in towns and cities, with an impact reflected in 30,000 jobs, in direct,
indirect, and induced employment generated by Navigator in Portugal. This large-scale incorporation of local raw materials in the
industrial process, as well as Portuguese R&D, means that Navigator is not just the third largest exporter of goods from the
country, but also the exporter creating the most national value added. In 2023, of our 7,490 Suppliers, 73% were Portuguese.
On the strength of our value chain, we have been playing an active role in developing better forests in Portugal, applying
management practices more widely and halting the abandonment of land, through programmes to support producers, designed to
boost yields, with personalised technical support, free of charge, in areas ranging from good silviculture practices to safety and
environmental protection.
In what represents a landmark in this commitment to working closely with these Stakeholders, we launched the “Clube Produtores
Florestais” (Forestry Producers Club), a pioneering initiative which is supporting our Partners in the forestry sector, on a
collaborative basis, in implementing the active and responsible management that Portuguese forests so urgently need.
The new club motto - “Working together for the Forest” - speaks for itself and is based on our firm conviction that it is
fundamental to pool resources and capture the interest of the large, but fragmented, community of forest producers in Portugal.
Only then will it be possible to increase the area of forests in Portugal where best forestry practices and active management are
Annual Report 2023 · Management Report 10
applied, leading to better yields. By contributing to actively managed forests where people live and work, we reduce the risk of fire
from abandoned or insufficiently managed land, as well as boosting all the related ecosystem services and bringing fresh energy
to the rural economy, especially in Portugal’s inland regions.
Caring for human capital
The right side of a bioindustry concern like The Navigator Company is, above all, the side occupied by people. Their commitment,
dedication, and motivation, as well as their protection and well-being.
This is a responsibility we are extending to the value chain, adding to Navigator’s exacting standards in this area. It was therefore
entirely in character for us to sign up to the United Nations Global Compact and to take part in the Business & Human Rights
Accelerator Programme, by implementing a systematic due diligence procedure. In a further step to honour this commitment, we
signed a contract in 2023 with a Third-Party Integrity Verification platform, through which we gather human rights information on
3,735 Navigator Partners in the value chain.
In addition, following on from approval of our Human Rights Policy in late 2022, we started work in 2023 on developing
procedures for it to be duly applied, in areas such as auditing, recruitment and procurement, bearing in mind the goal of
defending fundamental rights across the Company's strategy and operations.
In the field of skills and motivation, I am proud to report on “CRESCER” (Growing), a programme that is mobilising the Company
to reach a new level, by developing and training its teams, including in leadership skills. The initial phase involved a team
dynamics exercise involving more than 200 Employees, which resulted in a roadmap of meaningful action for our people.
“CRESCER” has already resulted in The Navigator Company's Leading with Purpose Handbook, which clearly defines the role of our
leaders and the behaviour expected of them, to foster a culture of togetherness, in which people feel committed and fulfilled,
focused on their personal development and on the Group's performance.
We have also given our future leaders an active voice through the Future Leaders Forum, which brings together young
management staff aged 33 and under, together with the Executive Board, working closely on the approach to strategic challenges.
Several editions of this forum have already had an impact on more than a hundred of our younger Staff and it has been extremely
gratifying to see their commitment and sense of initiative, and to watch them develop.
There was a substantial increase in the training provided in 2023, with a total of 259,121 hours, corresponding to an average of
78 hours per Employee. This represents an increase of 89.6% in relation to 2022, due largely to the skill set programmes
implemented under the new Careers Plan, applied above all to industrial divisions.
People who make a difference
The Navigator Company's people have once again made a difference in a year dominated worldwide by economic and geopolitical
instability. Our teams’ full abilities were on display as they faced up to the challenges, focusing objectively on responsible
management and planning of production.
In uncoated woodfree (UWF) printing and writing papers, for instance, we were able to ensure that our production lines operated
with a capacity utilization rate 7 p.p. higher than the industry average and we increased our market share by 1.5 p.p. What is
more, we ended the year with stocks 50% lower than the competition.
The human factor was also crucial in efforts to control total fixed costs, which in 2023 resulted in a reduction of 5%. Maintenance
and running costs were up by less than 1%, well below the rate of inflation (4.3%) and below the rate of pay increases, including
those in the Company, which averaged 5.3%.
We closed 2023 with the second largest turnover in the Company’s history, 11% above the average figure for the past five years.
Despite the volatility and instability experienced around the world, the last two years have brought the best ever results in the
Annual Report 2023 · Management Report 11
seven decades of the Company’s history, bearing witness to the resilience of our business model and to the outstanding esprit de
corps of our extraordinary workforce.
It therefore gave us great satisfaction, at the start of this year, to be able to announce distribution of €14 million in Employee
bonuses, in relation to the 2023 profits. Over the past ten years, the Company has paid out more than €110 million in staff
bonuses.
2023 was an especially symbolic year for The Navigator Company, as it celebrated the 70
th
anniversary of its founding, and 66
years since it became the first company in the world to produce bleached eucalyptus pulp using the kraft method, and writing
paper based on eucalyptus pulp. This offered an opportunity to look back at the company's pioneering history, which is still being
written by generations of people with an extraordinary ability to challenge the conventions of their time.
The Navigator Company's DNA still features the markers of innovation, talent and dedication, a genetic legacy that puts the
Company in a class of its own and underpins its ability to anticipate global developments and so operate successfully and
sustainably through periods of uncertainty, but also through the future opportunities we are creating.
António Redondo
Chief Executive Officer
Annual Report 2023 · Management Report 12
1.3. 2023 in numbers
FINANCIAL DATA
€1,953m
€502m
€275m
Total sales
EBITDA
Net Income
€187m
26%
21.3%
Capital expenditure
EBITDA Margin
ROCE
21.4%
ROE
0.98 x
Interest Bearing Net Debt/EBITDA
€200m
Dividends
Annual Report 2023 · Management Report 13
FOR THE CLIMATE AND NATURE: ACT
Climate change and CO
2
sequestration
744,091
tCO
2
e
(down 21.3% on 2022)
41%
0.176
tCO
2
e/t
produced
1
(down 2.7% on 2022)
Scope 1 and 2 emissions
2
Reduction in direct EU ETS CO
2
emissions
3
in relation to 2018
(baseline)
GHG emissions intensity
6.2m tCO
2
Accumulated stock in our forests
Energy management
39,747 TJ
(down 3.4% on 2022)
81%
12.9 GJ/t
(up 7% on 2022)
Energy consumed
Primary energy consumed from
renewable sources in Portugal
Energy intensity
4
in Portugal
5,130,339 GJ
(down 4.5% on 2022)
Energy sold
1
The calculation of emissions intensity took into consideration scope 1 emissions (excluding primary energy from Biomass Power Plants - BPP) and the
total quantity of products manufactured.
2
In 2023, the emission factors of the International Energy Agency (IEA) were used to calculated scope 2 (location-based) emissions, instead of the energy mix
of the ERSE (Energy Services Regulatory Authority) in 2022 and 2021.
3
EU ETS- European Emissions Trading Scheme.
4
The calculation of energy intensity took into consideration direct energy consumption by primary resources (excluding primary energy from Biomass
Power Plants - BPP) and the total quantity of products manufactured.
Annual Report 2023 · Management Report 14
Sustainable forest management
107,871 ha
69%
92.1%
Forest area under management
5
, corresponding
to 1.2% of the area of mainland Portugal
Wood used from woodlands
with certified forestry
management
Wood suppliers with chain-of-
custody certification
€9.61m
Investment in fire prevention and
support for firefighting
Biodiversity conservation
12.19%
of the area under management classified as
Conservation Interest Areas (managed for
conservation purposes, and not for production)
4,420 ha
Classified as protected habitats by
the Natura 2000 Network
191 ha
Ecological restoration or
rehabilitation projects, including
110 ha on Zambujo estate
Water management
down
2.4% on 2022
Water withdrawal
down
5.1%
Specific water use in industrial
operations in Portugal vs. 2019
(baseline for 2030 target)
21.2 m
3
/t
(up 11.2% on 2022)
Specific water use
6
in industrial
operations in Portugal
78%
Water returned to environment
5
Navigator also manages 1,062 hectares of forests in Galicia (Spain), 153 hectares in the Azores, and approximately 14,000 hectares in Mozambique.
6
Takes into consideration volume of water withdrawal by total manufacturing output.
Annual Report 2023 · Management Report 15
Raw Materials Management
4,714,216 t
(down 8.6% on 2022)
Raw materials consumed
90%
Renewable raw materials
1.66 t/t
output
(up 4.4% on 2022)
Intensity of
materials consumption
Circular economy
441,642 t
(up 7.5% on 2022)
35,624 t
(up 25.5% on 2022)
12%
Waste generated
Sands (by-product) recovered for
construction sector
Rate of waste disposal in
industrial landfill
Annual Report 2023 · Management Report 16
FOR SOCIETY: GROW
Creating sustainable value
€2,034m
€1,848m
46%
Direct economic value generated
Direct economic value distributed
ESG finance
7
Talent management and development of human capital
3,467
€171.1m
94.2%
Direct jobs
8
Employee pay and benefits
Employees on permanent contracts
78
326
approximately
50%
Average training hours per Employee
Young people in the Talent Attraction
Programme
9
Integration rate for vocational
internships
22,467
Training hours for Interns
Health, safety and well-being
92%
1,852
5.9
Internal employees included under
Occupational Health and Safety
Management System
10
Employees included under Occupational
Health Programme
Frequency rate for accidents at
work
11
7
The percentage refers to the value of the financing contracted.
8
This figure includes Employees at Navigator Tissue Ejea. It does not include trainees/bursary holders or Company bodies. For the purposes of this report,
all indicators consider 3,317 Employees referring to Group operations, except for the Employees belonging to Navigator Tissue Ejea.
9
Includes vocational internships, trainees and summer internships in 2023.
10
There are various activities in the organisation, in particular Forest Management, Wood Supply and RAIZ, which do not fall under ISO 45001. However,
activities in these sectors are subject to the same principles and procedures.
11
Includes figures for internal Employees and external Employees.
Annual Report 2023 · Management Report 17
Community relations
€1.46m
More than
10,000
10,510
Investment in the community
(In Portugal and Mozambique)
People reached by initiatives to promote
forest literacy in Portugal
Participants in “Floresta do Saber”
(Forest of Knowledge) project in 2023
Approximately
31,000
Copies of “Dá a Mão à Floresta” (Give
the Forest a Hand) and My Planet
magazines (5 editions)
Responsible business conduct
2,942
0
5
Employees (including Interns) with
training in internal Compliance Policies in
2023
Confirmed cases of corruption and
discrimination
Women on Governance Bodies
(35.7%)
Research and innovation in the forest-based bioeconomy
€14.2m
5
Investment in RDI
12
New patents submitted and 2 approved
(one national and one European)
Customer Management
0
0
64.2%
Incidents of nonconformity in marketing
communications
Incidents of nonconformity in product
labelling
Products sold with certification
13
95%
67%
Customer Satisfaction Index, paper –
Printing and writing papers
Customer Satisfaction Index– Tissue
Supply Chain Management
7,490
74%
Suppliers
Purchases from
Portuguese suppliers
12
Navigator's total RDI spending on the basis of the amount eligible for SIFIDE (the figure stated is that for 2022, as the final value for 2023 will only be determined in June 2024)
13
Includes UWF, Pulp, Tissue and Packaging.
Annual Report 2023 · Management Report 18
1.4. Highlights
Over the course of this report we have sought to highlight the following projects and initiatives that were part of Navigator's
activities in 2023.
Climate change
• Decarbonisation: 360 degree business vision
• Figueira da Foz Complex fitted with one of Portugal's largest solar facilities for in-house consumption
Sustainable forestry management and conserving biodiversity
• “Clube Produtores Florestais” (Forestry Producers Club): for the future of the forest
• Portucel Moçambique and the Forest Fire Defence Strategy
• Off-road cycling, carnivorous plants and salamanders in the Serras do Porto Park
• Cultural treasures protected in Navigator forests
Water management
• Aveiro Pulp Mill more efficient in use of water
• What if we could transform industrial effluent into fresh water?
Use of resources and circular economy
• New wood preparation line improves efficiency of raw material use and brings other environment and
social benefits
• Waste reduction and processing create value for Navigator and for forests
Creating sustainable value
• EIB loan for accelerating decarbonisation
Contributions to SDGs
• Navigator: an example of good business practice
Talent management and development of human capital
• Signing of “Pacto para Mais e Melhores Empregos para os Jovens” (More and Better Youth Employment
Pact)
• “CRESCER” (Growing) with our people
Annual Report 2023 · Management Report 19
Health, safety and well-being
• Safety is a daily mission for all Employees
• Safepro
Community relations
• “Let's talk about sustainability”: conference series
• Channels for proximity to Communities: Liaison Workers and Communication Officers
• “Floresta do Saber” (Forest of Knowledge): forest literacy "tailored" to younger generations
• Social Development Programme in Mozambique
Responsible business conduct
• More than 2,200 Navigator Employees complete Training in Prevention of Corruption and Related
Offences
• Navigator implements new Third-Party Integrity Verification System
Research and innovation in the forest-based bioeconomy
• A natural enemy to fight the eucalyptus snout beetle
• Moulded cellulose packaging: the new sustainable packaging solution
Customer Management
• Pioneer Inspire Hope
Supply Chain Management
• Suppliers’ Day: Debate on new supply chain challenges
Annual Report 2023 · Management Report 20
1.5. Awards
RATINGS
Score: 16.5
Ranked 8
th
out of 75 Paper &
Forestry companies
Climate Change
Score: A- (“Leadership” level)
Forests
Score: A- (“Leadership” level)
Score: A
In 2023, The Navigator Company obtained
an MSCI ESG Rating of A
READ HERE
READ THE SCORE LISTS HERE
OTHER PUBLIC RECOGNITION
Investor Relations &
Governance Awards
(IRGA)
5 Star Award
Reporting Matters
Navigator held up as
an example of good
business practice
At the IRGA Awards,
Navigator’s innovative
packaging solutions won it the
Transformation Award, for
transformation and innovation
projects with a market impact.
The focus on innovation and
differentiation was again
rewarded by recognition from
consumers, as Navigator won
the “5 Star Award” for the third
year running,
In the “Reporting Matters
2023” league table, organised
by WBCSD and Radley Yeldar
(RY), Navigator ranked third in
the Basic Resources group.
In recognition of our 2030
Agenda and contributions to
SDGs, Navigator was singled
out as an example of good
business practice, in the
published findings of the
Sustainable Development
Goals Observatory (Portuguese
Catholic University).
READ HERE
READ HERE
READ HERE
Annual Report 2023 · Management Report 21
1.6. Partnerships for impact
We believe that establishing partnerships and taking part in cooperation schemes with organisations that share our values helps
us to achieve our aims and boosts the positive impact we want to have on Society, the Climate and Nature.
Because we want to plant a promising future, in 2023 we continued to invest in these collaborative models for many of the
initiatives and projects on which we worked, as highlighted in this report. It is important to note that the partnerships in which we
are involved are not all included in these examples and that, at Navigator, we value all the people and organisations who
cooperate with us.
FOR THE CLIMATE AND NATURE: ACT
• Synergies with academic, educational and research institutions, forestry sector and fire-fighting associations and
companies, with the aim of helping to maintain and continuously improve the economic, ecological and social
functions of woodlands.
• Partnerships with a number of organisations for developing innovative products and solutions, able to contribute to a
low-carbon economy, in line with current climate science, and a sustainable circular bioeconomy, which is Nature-
positive and Climate-neutral.
• Active participation, as members, of associations of strategic importance for promoting cooperation centred on
sustainability, in close engagement with the Community.
• AFOCELCA, in the area of fire response resources and procedures (Chap. 6.3.3)
• BCSD Portugal, through the act4Nature Portugal initiative, which Navigator was one of the first companies to join,
now sitting on the Advisory Board (Chap. 6.3.3)
• EDP, for development of a 17MW solar power station at the Figueira da Foz industrial complex, due to be one of the
largest solar projects for in-house consumption in an industrial setting in Portugal (Chap. 6.3.2)
• Faculty of Science, University of Lisbon, in logistical support for the FORCE project (Forest Certification in
Eucalyptus Plantations) (Chap. 6.3.3)
• Forest Solutions Group (WBCSD), in collaboration with the climate team at WBCSD and with McKinsey
Sustainability, as knowledge partner, in the launch of the interactive publication “Catalogue of key
decarbonization actions”, as part of “Forest Sector Net-Zero Roadmap – Phase II” (Chap. 6.3.2)
• Institute of Nature Conservation and Forests (ICNF), Working Conditions Authority (ACT), and
representatives of forestry certification schemes, in the debate on “The importance of using PPE and the
challenges facing companies with forestry certification”, held at the second edition of “Forest in Fashion” (Chap.
6.3.3)
• National Institute for Agrarian and Veterinary Research (INIAV), among other partners, in connection with
the RRP TransForm project “P1.1 Genetic improvement, production and conservation of forestry reproduction
materials”, particularly for the recovery of the Monchique oak (Chap. 6.3.3).
• OMYA, for the supply of combustion gases from Navigator's boilers and lime kilns in Setúbal and Figueira da Foz, so
that CO
2
can be captured and incorporated (Chap. 6.3.5)
• Serras do Porto Park, in connection with the Life Serras do Porto project (Chap. 6.3.3)
• Specialty Minerals Inc., for the supply of combustion gases from Navigator's boilers and lime kilns in Setúbal and
Figueira da Foz, so that CO2 can be captured and incorporated, and for recovery of carbonate sludges (Chap. 6.3.5)
• University of Aveiro for R&D project to study and monitor drainage basins (Chap. 6.3.4) and logistical support for
the FORCE project (Forest Certification in Eucalyptus Plantations) (Chap. 6.3.3)
Annual Report 2023 · Management Report 22
FOR SOCIETY: GROW
• Partnerships with academe, Navigator’s peer companies and organisations in the science and technology system,
involving national and international partners, with the aim of reinventing ourselves as a business that contributes to
solutions that respond to the current challenges facing Society.
• Partnerships with entities that help us promote topics ranging from environmental and forest literacy to the
importance of sport and social inclusion, associating ourselves with social causes and working on projects for the
wider Community.
• Partnership with Portugal’s public employment service, helping to develop skills and add value to human capital.
• Serra da Estrela Nature Protection Association, in an initiative to reforest a number of hectares of burned
woodlands in the Serra da Estrela, by supplying plants (Chap. 6.4.3)
• BCSD Portugal, as a member of the working party for Diversity, Equity and Inclusion (DEI) and participation in the
“Study of DEI in Portuguese business”, conducted by BCSD Portugal, in partnership with EY (Chap. 6.5.1)
• Católica Lisbon School of Business & Economics, in connection with the Sustainable Development Goals
Observatory in Portuguese Business, a research project designed to monitor and accelerate implementation of the
2030 Agenda in Portugal (Chap. 6.2.5)
• Qualifica Centres in Figueira da Foz and Setúbal, as part of the Qualifica programme, in order to improve the
skills of Navigator’s workforce (Chap. 6.4.1)
• Vocational colleges and universities, such as ISCTE, University of Coimbra, o Instituto Superior Técnico
and NOVA University Lisbon, for participation in job fairs, award of study bursaries, promotion of workshops and
seminars, and hosting students for curricular internships (Chap 6.4.1)
• Lisbon Book Fair, with a number of initiatives, related to the “Dá a Mão à Floresta” (Give the Forest a Hand) and
My Planet projects (Chap. 6.4.3)
• Biofund, Wildlife Conservation Society (WCS) and the Government of Mozambique, as part of the COMBO+
project in Mozambique, allowing organisations to share experience of applying good practices in implementing the
biodiversity impacts Mitigation Hierarchy (Chap. 6.4.3)
• Calouste Gulbenkian Foundation, on the forest literacy project – “Floresta do Saber” (Forest of Knowledge)
(Chap. 6.4.3)
• GirlMove Academy, which works to empower young women and train them for leadership, as a corporate social
responsibility project at Portucel Moçambique (Cap. 6.5.1)
• GRACE, largely to promote engagement by key personnel at Navigator with the work of this association, and to
educate the Company on DEI issues (Chap. 6.5.1)
• iMM-Laço Hub and ABC Global Alliance in the project to support the fight against breast cancer - Pioneer Inspire
Hope (Chap. 6.5.3)
• Institute of Employment and Vocational Training (IEFP), on specific development programmes for future
operatives - training with hands-on component, 9-month vocational internship and subsequent integration into the
Company's workforce (Chap. 6.4.1)
• Instituto Superior de Agronomia (ISA) and Altri Florestal, on the project for introducing a species/biological
control agent to combat the eucalyptus snout beetle (Chap. 6.5.2)
• Polytechnic Institute of Setubal (IPS), with the donation of trees and shrubs for the Miyawaki Woods, (Chap.
10.2.3)
• World Youth Day, with the donation of trees and shrubs for the WYD Symbols Pilgrimage (Chap.10.2.3)
• Expresso (newspaper), in connection with the series of conferences on “Let’s talk about sustainability” (Chap.
6.4.3)
• 27 national partners, including companies, universities and research centres, in connection with the RRP From Fossil
to Forest Agenda, led by Navigator, with RAIZ as consortium member, to research, develop and industrialise
cellulose-based packaging, with a high level of value added (Chap. 6.5.2)
Annual Report 2023 · Management Report 23
2. Our Identity
2.1. Purpose and Values
Purpose
Values
It's people, their quality of life and the
future of the planet that inspire and
motivate us.
We want to share with society not just
our achievements, but also our
knowledge, our experience and our
resources, all in the name of a better
future.
That is why we are committed to
creating sustainable value for our
shareholders, and for society as a
whole, leaving a better planet for future
generations, through natural products
that are sustainable, recyclable and
biodegradable, that help to sequester
carbon and produce oxygen, that
protect biodiversity, improve the soil
and combat climate change.
Trust
We believe in people, we welcome
everyone's contribution, we respect
their identity, promoting development,
cooperation and communication;
Integrity
We are guided by principles of
transparency, ethics and respect in our
dealings amongst ourselves and with
others.
Enterprise
We are passionate about what we do,
we like to get out of our comfort zone,
we have the courage to take decisions
and to accept risks in a responsible
way.
Excellence
In our work we focus on quality,
efficiency, safety and getting it right.
Innovation
We seek to bring out everyone's skills
and creative potential to do the
impossible.
Sustainability Dep.
Our responsible business model
incorporates sustainability in all its
pillars: environment, social
and economic.
Annual Report 2023 · Management Report 24
2.2. Profile
GRI 2-6
ESRS SBM-1
The Navigator Company is a bioindustry with a purpose. Its sustainable products and solutions are natural,
recyclable and biodegradable, and are the result of a responsible business strategy focused on people and the
planet.
As an integrated producer of forests, pulp, paper, tissue sustainable packaging solutions and bioenergy, Navigator carries on its
business on the basis of continuous R&D, in world-leading, state-of-the-art mills.
The Company has annual production capacity for 1.6 million tons of paper, 1.6 million tons of pulp and 165 thousand tons of
tissue, as well as rated power production capacity of 375.5 MW
14
. In tissue paper, Navigator has annual production capacity of
165 thousand tons and annual converting capacity of 180 tons.
The Group operates a vertically integrated forestry business, with its own forestry research institute, and is responsible for
planting vast areas of woodlands in Portugal (1.2% of the country's mainland area), 100% certified under the FSC
®15
and PEFC
16
schemes.
More than 92% of the Group's products are sold outside Portugal and are shipped to 134 countries.
Navigator is a bioindustry on the right side of the future, both in leading the research and industrialisation of a new generation of
forest-based bioproducts, and in taking care with its impact.
Navigator was the first Portuguese company, and one of the first in the world, to make the ambitious commitment to
decarbonise its industrial complexes in 2035, fifteen years ahead of the Portuguese and European targets.
The investment allocated by Navigator to its Decarbonisation Roadmap totals 340 million euros, between 2019 and 2028, with
89% of this total already implemented or in progress.
Thanks to the investment already made, Navigator decided in 2023 to bring forward its interim emissions targets by three years,
meaning the Company will now achieve in 2026 the aims originally set for 2029. In 2026 direct emissions of fossil CO
2
will be
approximately 60% lower than in 2018, the baseline year.
Research and development (R&D)
Research, combined with innovation and the ability to put knowledge to industrial use are essential components of The
Navigator Company's identity and lie behind its history as a global pioneer. This work is today supported by RAIZ, a Forestry and
Paper Research Institute, functioning as an R&D laboratory owned by Navigator and the universities of Aveiro, Coimbra and Lisbon
(Instituto Superior de Agronomia).
14
Includes in-house consumption
15
FSC
®
– Forest Stewardship Council
®
(License no. FSC
®
- C010852).
16
PEFC – Programme for the Endorsement of Forest Certification schemes (License no. PEFC/13-23-001).
Annual Report 2023 · Management Report 25
RAIZ works in three areas of R&D: forestry, industrial/technological and specialist services to support operational areas, as well as
education and knowledge sharing, with a view to promoting sustainable development and the bioeconomy based on eucalyptus
forests.
In 2023, RAIZ was once again one of Portugal’s leading innovators, listed in the TOP 10 of Portuguese organisations in terms of
the number of international patent applications. The 5 patent applications submitted in 2023 bear witness to the hard work and
dedication of its team of researchers in developing innovative and sustainable solutions. In 2022, RAIZ had ranked third in the
league table of Portuguese inventors, with a total of 20 patent applications submitted to INPI (Instituto Nacional da Propriedade
Industrial).
Forest
In 2023, Navigator's forests under management in mainland Portugal grew to 107,871 ha. The company's responsible
management practices entail sharing knowledge with others in the value chain, and especially with the community of forest
producers.
The different initiatives and project undertaken in 2023 include the launch of the Navigator “Clube Produtores Florestais”
(Forestry Producers Club), a pioneering scheme designed to support the Company's partners in the forestry sector, on a
collaborative basis, helping to implement active and responsible forest management.
Navigator believes that by increasing the area of land in Portugal on which best forestry practices are applied and all certification
requirements are complied with, the project will bring benefits that extend well beyond a stronger eucalyptus sector. It will also
contribute to lower fire risks, less CO
2
emissions, increased biodiversity, with more conservation areas, and to a more dynamic
economy in inland regions of Portugal.
Pulp
Pulp sales stood at 462 thousand tons in 2023, up 81% on the previous year, with sales in value growing by 26%, due to the
current level of prices. Over the course of the year, Navigator had a larger quantity of pulp available for sale, as a result of less
being incorporated into paper.
The pulp segment was the Group’s top performer in terms of productivity, exemplified by the achievement at the Figueira da Foz
industrial complex, where a new record was set for annual output, at 649,193 tAD; the previous record had been set just one year
earlier, in 2022, thanks to the capex project executed in 2018.
Printing and writing paper
Navigator’s sales of printing and writing paper (UWF) totalled 1,131 thousand tons in 2023, with mill brands accounting for
80% of total, as compared to an average of 65% over the period 2012-2022.
This performance again bears witness to the market's recognition of the quality of Navigator brands, especially in segments where
the quality demands are toughest. Premium products again enjoyed a large share in 2023, at 57% of the market.
The Navigator brand is recognised around the world as the leading premium office paper brand (and the world’s best-selling
brand), with a vast range of printing solutions.
In general, UWF paper continues to show resilience, thanks to its versatile uses. In 2023, in a global context of a sharp drop in
apparent demand (down 11%), UWF fell by just 6%, as compared with CWF papers (coated/couché), which were down by 17%.
Demand for paper produced from mechanical pulp dropped by 18%.
Annual Report 2023 · Management Report 26
Tissue
Operating in this market segment since 2015, Navigator is committed to tissue with a strong component of innovation and has
invested in launching distinctive products. In just eight years, Navigator has established itself as the 2
nd
largest producer in
Iberia, with total annual production capacity of 165 thousand tons and annual converting capacity of 180 thousand tons.
The key development in 2023 was the acquisition of a new mill in Spain, now called Navigator Tissue Ejea, which has boosted
growth in sales and expanded our client base, as well as generating significant gains in cross-group synergies.
In 2023, sales in volume, of finished products and reels, stood at 142 thousand tons, up by 40% from 2022.
In terms of the value of sales, the increase was 49%.
Sales of Navigator brands in 2023 were up by 25% in comparison with 2022.
Sales of more distinctive and innovative products rose to record levels in 2023 and were up by 64% in relation to 2022.
Navigator develops its Tissue products in close collaboration with teams at RAIZ, its forestry and paper research institute, having
registered 7 trademarks for its technological innovations. This has resulted in highly distinctive end products. The focus on
continuous innovation and differentiation has permitted Navigator to establish itself with consumers, as reflected in the “5 Star
Award” that it won for the third consecutive year.
Packaging
The sustainable packaging solutions developed by Navigator under its gKraft brand have brought it growing recognition from the
market, thanks to the quality demonstrated by these products based on eucalyptus globulus fibre.
This success is reflected in growth in the client base, which today boasts more than 230 active clients, in 30 countries, in sectors
varying from fashion and food retail to e-commerce, manufacturing and farming.
Market recognition has brought more than just commercial success: in July last year, Navigator's work in the field of sustainable
packaging solutions earned it the National Innovation Prize, awarded by Jornal de Negócios, BPI and Claranet, in partnership with
Nova SBE and Cotec Portugal. In addition, the Mobilising Agenda entitled "From Fossil to Forest - Sustainable Packaging Products
to Substitute Fossil Plastic", led by Navigator, was selected by Deloitte Portugal for its Transformation Award, distinguishing
transformation and innovation projects with an impact on markets.
In a series of projects to expand its offering, Navigator developed new product ranges in 2023, aimed at the food industry and a
large number of consumer products, opening doors in the short term to other high value-added segments.
At the start of the 2
nd
half of 2024, Navigator will start up a new line for integrated production of moulded eucalyptus
cellulose parts, intended to substitute single-use packaging products in fossil-based plastic, used in the food service and food
packaging market. This new production line will have production capacity of approximately 100 million units a year, making it one
of the largest in Europe and the first integrated unit in the south of the continent. Under the gKraft™ Bioshield brand, this new
product range will be offered to a market with great potential for growth. Operations will start with 4 products for the food sector,
and the facility offers production flexibility and scalability in order to make the most of all opportunities opening up for substituting
plastics.
Energy
In 2023, 76% of the energy produced by The Navigator Company was from renewable sources. The Company remained
committed to renewables, which in the same year represented 80% of the primary energy consumed in the Company.
Annual Report 2023 · Management Report 27
The year saw further investment in solar power: the 7MW of solar capacity already installed at the industrial complexes in Setúbal
and Figueira da Foz, the Espirra Estate and RAIZ, were joined by the 5 MWp facility at Navigator Tissue Ejea. Work also started in
2023 on the construction of 4 new photovoltaic facilities at the sites in Figueira da Foz (one of the largest in Portugal for in-house
consumption), Aveiro and Vila Velha de Ródão, which will make it possible to triple the rated capacity at the Group’s sites from 12
MWp to around 38 MWp.
Mozambique
Portucel Moçambique's Social Development Programme (SDPP Mozambique), set up on the basis of the needs identified
in an Environmental and Social Impact Study, has already invested more than 7.6 million dollars since 2015.
Portucel Moçambique also receives requests for help with social or environmental emergencies, as well as for support for local
culture. This can involve using the Company’s resources/equipment for a given purpose, often to overcome the logistical
difficulties faced by institutions, or to deliver basic necessities, which are requested by the administrative authorities, in the event
of natural disasters or extreme weather events such as storms, floods and the like. In 2023, these contributions totalled the
equivalent of around 6,000 euros, in the provinces of Manica and Zambézia.
On a different front, Portucel Moçambique has worked in several fields with RAIZ, such as on the Genetic Improvement
Programme, in the identification and genetic certification of the materials used by the Company, or in the area of Pests and
Diseases, both in forest operations and in the production of plants in nurseries. The Luá Nurseries supplied 1.3 million plants in
2023, with 66% of this output destined for internal use on the Company's plantations (production and trials) and 34% for external
partners.
Annual Report 2023 · Management Report 28
3. Strategy and governance
3.1. Business Strategy
ESRS SBM-1
Sustainability and ESG
Sustainability is part of our strategic business vision, as a concept that promotes a long-term balance between three essential
pillars - economic, environmental and social. It is an essential feature of any development model able to meet the needs of today
without compromising the future of mankind and the planet. Because sustainability is what guides and underpins our business, we
constantly assess our performance in this area by using an ESG framework, designed to monitor our management of
environmental, social and governance issues.
In keeping with this, The Navigator Company has decided to incorporate its strategy for sustainability into its business strategy.
The Company's Responsible Management Strategy is based on Ethics, Responsibility and Transparency. We are responsible for
forest-based products that contribute to sustainable development and to the well-being of Society, in alignment with the United
Nations 2030 Agenda. This commitment to sustainability, set out most ambitiously and comprehensively in our 2030 Responsible
Business Management Agenda, has been based on an analysis of global macrotrends and the main business challenges, and is
supported by the ESG framework in our 2030 Roadmap.
The Navigator Company has embraced an active role in the low-carbon economy, both through sustainable management of its
forests, investment in renewable energy, and through its commitment to a forest-based bioeconomy, by offering bioproducts able
to substitute other fossil-based goods.
Thanks to our strong financial position, which enables us not only to consider opportunities for investing in efficiency and
innovation in our core businesses, but also to look for new opportunities for growth, our strategy is based on diversification:
Energy
The Navigator Group is already one of the leading producers of sustainable renewable energy and in 2023 generated
approximately 1,100 GWh of green energy, representing 76% of all the energy produced. In addition to producing energy from
forest biomass, the group has been expanding its solar capacity at its industrial complexes. Work is currently under way on
building new photovoltaic plants for internal consumption at the industrial sites in Figueira da Foz, Aveiro and Vila Velha de Ródão,
which will enable it to triple the existing capacity at Group sites from 12 Mwp to approximately 38 MWp. In connection with this,
the Navigator Group is also investing in batteries (electrical storage), above all for providing regulation reserve system services.
With more of a medium-long term view, Navigator is still looking into the attractiveness of investing in green fuels, both biofuels
(medium term) and e-fuels or synthetic fuels (medium-long term).
In terms of biofuels, possible capex projects are being assessed in the production of second-generation bioethanol (using
eucalyptus bark as raw material) and in producing kraft biomethanol (through the recovery and purification of by-product
biomethanol produced at pulp mills) for use as fuel or in the chemicals industry.
In the field of e-fuels, capex projects are still being assessed for production of e-methanol and e-jet fuel. These are two distinct
projects, with different technologies and potential partners. In both cases, an essential component is biogenic CO
2
, which is a by-
Annual Report 2023 · Management Report 29
product in our pulp production processes. In brief, these are processes for synthesising (biogenic) CO
2
and green H
2
(obtained
from water electrolysis) with a view to producing sustainable hydrocarbons (e-methanol, e-kerosene), neutral in carbon
emissions, for the shipping and/or aviation sectors, where electrical engines are not an option.
Tissue
In line with its business diversification strategy, the Navigator Group decided in 2014 to move into the tissue sector, and has
pursued this goal consistently since then. It started in 2015 with acquisition of AMS Star Paper, which currently has the capacity
to produce 60,000 tons of tissue each year. In 2018, the Group invested in a greenfield tissue production unit at our industrial site
in Aveiro, integrated with our pulp mill, with rated capacity of 70,000 tons of tissue paper/year and converting capacity of 55,000
tons. More recently, in 2023, the Navigator Group acquired the tissue business of the Spanish Gomà-Camps group and the
industrial site in the Zaragoza region, which has capacity to produce 35,000 tons of tissue paper a year, along with converting
capacity of 55,000 tons.
The Tissue business has proved both resilient and profitable in challenging market conditions, permitting us to look forward to
continued growth (organic and/or non-organic) in this market segment.
Packaging
The development of our Packaging business continues to show considerable promise, with a growing customer base and
recognition of the quality of our sustainable products, based on eucalyptus globulus fibre, for varied uses in sectors ranging from
fashion to food retail, e-commerce, manufacturing and farming.
As part of the diversification of Packaging business in line with the sustainability and ESG goals mapped out, the Navigator Group
went ahead in 2023 with a project for integrated production of moulded parts in eucalyptus cellulose. These are designed to
substitute single-use plastics in the food service and food packaging market, a segment we are confident presents great potential
for growth.
Mozambique
Since the Memorandum of Understanding signed in 2018, our work with the Mozambican government has continued to centre on
Phase 1 (export of woodchip). Construction of the new port in Macuse is a major step forwards and one of the pre-conditions for
developing the project.
Biomaterials
The Group has been studying and exploring the development of new bioproducts based on Eucalyptus globulus. Our R&D
Programme has worked on creating a vast range of applications including in hygiene and personal care, cosmetics, nutraceutics,
food additives and the health sector.
Annual Report 2023 · Management Report 30
3.2. Governance model
GRI 2-9,2-17, 405-2
ESRS GOV-1
The Navigator Company has a unitary management model, with a Board of Directors (BD) comprising executive and non-
executive directors, as well as an Audit Board and a Statutory Auditor. The General Meeting consists of all the shareholders who
wish to attend: there are no limits on exercise of voting rights by its shareholders.
The following internal committees exist in the Company:
Attached to the board of directors:
i. Executive Board (EB)
ii. Corporate Governance Committee
iii. Talent Committee
iv. Risk Management Committee
v. Environmental Council
vi. Sustainability Forum
Not attached to the board of directors:
vii. Remuneration Committee
viii. Ethics and Integrity Committee
Decisions relating to definition of company strategy, and to the company’s general policies and the corporate structure of
the Navigator Group, are the province of the Board of Directors, and the Executive Board has no delegated powers to this effect.
The non-executive directors accordingly take part in designing strategy, central policies and the business structure and in reaching
decisions that are to be considered strategic by virtue of the sums or risks involved, and also in assessing execution of these
decisions.
The management of the company is centred on the relationship between the Board of Directors and the Executive Board.
Annual Report 2023 · Management Report 31
ORGANISATIONAL CHART
CORPORATE BODIES AND OFFICERS
BOARD OF DIRECTORS
EXECUTIVE BOARD
AUDIT BOARD
Chairman
Ricardo Miguel dos Santos Pacheco
Pires
Members
Ana Teresa Cunha de Pinho Tavares
Lehmann
António José Pereira Redondo
António Quirino Soares
Dorival Martins de Almeida
Hugo Alexandre Lopes Pinto
João Paulo Cabete Gonçalves Lé
José Fernando Morais Carreira de
Araújo
Maria Isabel da Silva Marques
Abranches Viegas
Chairman
António José Pereira Redondo
Members
António Quirino Soares
Dorival Martins de Almeida
João Paulo Cabete Gonçalves Lé
José Fernando Morais Carreira de
Araújo
Nuno Miguel Moreira de Araújo Santos
Chairman
José Manuel Oliveira Vitorino
Full members
Gonçalo Nuno Palha Gaio Picão Caldeira
Maria da Graça Torres Ferreira da
Cunha Gonçalves
Alternate member
Maria da Luz Gonçalves de Andrade
Campos
REMUNERATION COMMITTEE
Chairman
Maria Eduarda Faria e Maia de Oliveira
Luna Pais
Annual Report 2023 · Management Report 32
Maria Teresa Aliu Presas
Mariana Rita Antunes Marques dos
Santos
Nuno Miguel Moreira de Araújo Santos
Sandra Maria Soares Santos
Vítor Paulo Paranhos Pereira
Members
Carlota Infante da Câmara Albergaria
Caldeira
João do Passo Vicente Ribeiro
OFFICERS OF THE GENERAL MEETING
COMPANY SECRETARY
STATUTORY AUDITOR AND EXTERNAL
AUDITOR
Chairman
Rui Pinto Duarte
Secretary
Luís Nuno Pessoa Ferreira Gaspar
Full
António Pedro Gomes Paula Neto Alves
Alternate
António Alexandre de Almeida e
Noronha da Cunha Reis
KPMG & Associados - Sociedade de
Revisores Oficiais de Contas, S.A.
Represented by
Rui Filipe Dias Lopes, Statutory Auditor,
registered with the Association of
Statutory Auditors under no. 1715
Alternate
Vítor Manuel da Cunha Ribeirinho,
registered with the Association of
Statutory Auditors under no. 1081
DETAILS OF BOARD OF DIRECTORS
Members
Independence
6 Executive directors
64.3 % non-independent
8 Non-executive Directors
35.7 % Independent
Gender
Average time on board
0.55 Average ratio of women to men (5:9)
4.7 years overall average, simple mean with extremes of 0
to 16 years
35.7 % Women
5 less than 1 year
64.3 % Men
5 between 1 and 5 years
2 between 5 and 10 years
Nationality
2 more than 10 years
93% Portuguese
7% Other
Average age
56.5 years.
Age range
45 to 71 years
For more detailed information we refer to the Report on Corporate Governance Practices. Issues of sustainability
governance are addressed in Chapter 6.2.1.
Annual Report 2023 · Management Report 33
SKILLS MATRIX
Gender
Year of
birth
Position
Engineering
Economics
Management
Mathematics
Other
areas of
study
Business
Management
and
Administration
Governance
Mergers &
Acquisitions
International
Expansion
Academic
Talent
Management
Research and
Development
Information
Technologies
Environment and
sustainability*
Pulp
and
Paper
Energy
Industry
Ricardo
Miguel dos
Santos
Pacheco
Pires
M
1976
Chairman
•
•
•
•
•
•
•
•
•
•
•
•
António
José
Pereira
Redondo
M
1964
CEO
•
•
•
•
•
•
•
•
•
•
•
•
José
Fernando
Morais
Carreira de
Araújo
M
1964
CFO
•
•
•
•
•
•
•
•
•
•
•
Nuno
Miguel
Moreira de
Araújo
Santos
M
1970
•
•
•
•
•
•
•
•
•
•
•
João Paulo
Cabete
Gonçalves
Lé
M
1963
•
•
•
•
•
•
•
•
•
•
Dorival
Martins de
Almeida
M
1966
•
•
•
•
•
•
•
•
•
•
•
•
•
António
Quirino
Soares
M
1974
•
•
•
•
•
•
•
•
Ana Teresa
Cunha de
Pinho
Tavares
Lehmann
F
1972
•
•
•
•
•
•
•
•
•
•
•
Hugo
Alexandre
Lopes
Pinto
M
1978
•
•
•
•
•
•
•
•
•
Maria
Isabel da
Silva
Marques
Abranches
Viegas
F
1958
•
•
•
•
Maria
Teresa Aliu
Presas
F
1952
•
•
•
•
•
•
•
•
Mariana
Rita
Antunes
Marques
dos Santos
F
1966
•
•
•
•
•
•
•
Sandra
Maria
Soares
Santos
F
1971
•
•
•
•
•
•
•
•
•
•
Vitor Paulo
Paranhos
Pereira
M
1957
•
•
•
•
•
•
•
•
* Includes skills in areas related to (i) sustainable forestry management (management of risks and opportunities) and (ii) climate action (management of risks and opportunities, impact assessment and strategies).
Annual Report 2023 · Management Report 34
3.3. Risk management
ESRS IRO-1
Risk management is a crucial process in our business as it provides a structured approach for identifying, assessing and analysing
potential risk events that might influence the Group's objectives, and also for identifying mitigation measures, so as to reduce the
likelihood of the occurrence of such events and the scale of their impact.
In 2023, in order to strengthen the company's risk management process, the Risk Management Division (DGR) reviewed and
implemented a new Enterprise Risk Management (ERM) in accordance with the COSO guidelines (Committee of Sponsoring
Organisations, Treadway Commission) and ISO 31000. This tool was implemented in conjunction with the various Group divisions,
and was initially rolled out for UWF Paper and Pulp business. This has brought improved alignment with the Group's strategy and
goals, as well as targeted and continuous monitoring of risks, with clear division of responsibilities between those involved in the
process.
The Risk Management Governance Model has also been improved, entailing a new Risk Management Committee which is
geared primarily to: (1) permanent monitoring of Group risks; (2) the need to empower the risk management process; (3) the
specific expertise needed in risk management; (4) coordination between the different Risk Management areas and subsystems.
Five Subcommittees (Commercial, Production, Skills, Resilience and Reputational) have also been set up with the following
objectives: (1) integrate and coordinate relations between risks; (2) calibrate risk assessments and appetite levels; (3) monitor
and push for risk mitigation; (4) help think through the response to risk (expertise); (5) help implement mitigation measures; (6)
communicate risk issues.
This risk management Governance Model is aligned with the IIA (Institute of Internal Auditors) Three Lines Model, which
involves: (1) in the first line, all business units responsible for conducting everyday risk management activities; (2) the second
line consists of the CEO, the Risk Management Division, the Compliance Unit and Empremédia (insurance brokers) and the
Sustainability Division, who are responsible for providing support in the implementation and monitoring of risk management and
the Risk Management Committee, in order to ensure that risks are identified and correctly managed on an ongoing basis; (3) the
supervisory line consists of the Internal Audit Office, the Audit Board and the Risk Management Board, who ensure that the first
and second lines comply with the policies and standards adopted.
Annual Report 2023 · Management Report 35
Annual Report 2023 · Management Report 36
The whole risk management cycle must be accompanied by a process of continuous improvement, in order to ensure the risk
management process is as efficient as possible. So whenever opportunities for improvement are identified, irrespective of where in
the cycle they arise, they must be assessed and implemented accordingly.
The process of identifying the main risks entailed various stages, including: (1) analysis of internal and external context and
structuring of Group strategy and goals; (2) interviews with first line managers in order to identify risks; (3) analysis of
connections between risks; (4) Sub-Committee risk surveys; (5) attribution of Risk Owners; (6) assessment of inherent risk; (7)
definition of existing mitigation measures; (8) residual risk assessment; (9) risk matrix.
This resulted in the following risk matrix:
Annual Report 2023 · Management Report 37
Annual Report 2023 · Management Report 38
Annual Report 2023 · Management Report 39
A detailed analysis of climate-related risks can be found in the annex to this report, in chapter 10.6 Alignment with TCFD (Task
Force on Climate-related Financial Disclosures) recommendations.
The risk management associated with ESG Performance, under the responsibility of the Sustainability Division, is based on
identifying and mitigating risk factors related to external demands and internal capacity, through measures at different levels
(including allocation of responsibilities, incorporation of ESG considerations into business management decision-making,
Stakeholder engagement in the sustainability governance structure, alignment and conformity of reporting with global and
regulatory frameworks, and continuous monitoring, analysis and continuous improvement of ESG factors, among others).
In view of the importance of the topic, it was decided in 2023 to include in our 2030 Roadmap (Chapter 6.2.4) the
commitment to integrate ESG concerns into Navigator's risk management. The work done in 2023 has enabled us to make
progress towards the following goals:
• Update risks and opportunities analysis in line with the sustainability reporting directive, integrating them into
internal risk control processes, by the end of 2024;
• Monitor ESG-related risk mitigation measures in 2024.
As our main next steps (2024/2025), we intend to include other Company businesses (e.g. tissue, packaging) in ERM and to
quantify in financial terms the risks identified.
Annual Report 2023 · Management Report 40
4. Performance in businesses
MAIN INDICATORS
€502m
€275m
€1,953m
EBITDA
Net Income
Turnover
0.98 x
€200m
Net Debt / EBITDA
Dividends Paid
At the start of 2023, the global economic outlook was far from promising, with the expectation that growth in the main developed
economies would be modest, or even negative. On the geopolitical stage, the war in Ukraine and the tensions between China and
Taiwan were joined in the final quarter of the year by conflict in the Middle East, making for periods of significant risk aversion
over the course of the year.
In this context, 2023 was also a challenging year for the Pulp and Paper sector. The 1
st
half was marked by a sharp drop in
benchmark prices for pulp, down from record high levels in 2022, with a downturn in demand, especially in Europe. Over the
course of the first half, we also saw a slow reduction in stocks of printing and packaging paper which had accumulated along the
distribution chain over the course of 2022. New orders were consequently at a historically low level in these segments, but started
to improve as from the 3
rd
quarter, rising more clearly in the final quarter, as stocks normalised. In the Tissue paper segment,
with shorter supply chains and so less tendency to accumulate stocks, performance remained considerably stronger, benefiting
also from the increased market share and positive synergies brought by integration of the new Tissue mill in Zaragoza.
Navigator's operational flexibility enabled it to produce more pulp, in response to scaling down paper output, and to place this
additional output in geographical regions where demand was more robust in 2023. In the writing and packaging paper business,
careful planning of production also made it possible to manage output and stocks at better adjusted levels. Combined with
responsible management of prices and margins, this enabled Navigator to protect its operating results.
We nonetheless remained committed to investment and innovation in all the sectors in which we operate, and have continued
to exploit opportunities for growth with distinctive value in tissue, packaging and energy. Navigator's product range, the quality of
our brands and different products, our sustainable business approach, the scale of our operations and our sound finances have all
supported a resilient business model, enabling us to present consistent results, even in hostile market conditions.
Annual Report 2023 · Management Report 41
4.1. Bleached eucalyptus pulp (BEKP)
Pulp Market
The 1
st
half of 2023 saw prices drop sharply from historically high levels. The benchmark index for short fibre (hardwood) (PIX
BHKP in dollars) had climbed to an all-time record level in 2022 of 1,380 USD/t. In the 2
nd
quarter, we saw prices rally in China
and in Europe – prices in China bottomed out in May (475 USD/t) and ended 2023 at 653 USD/t, whilst in Europe they fell to their
lowest level in August (800 USD/t), recovering by December to 1008 USD/t.
Falling pulp prices in the first half of the year could be traced to (i) the YoY reduction in demand globally, and in particular in
Europe; (ii) rising stocks along the supply chain in late 2022 and early 2023; (iii) easing of the logistical constraints experienced
during 2022; and (iv) growth in supply, due to new capacity coming online, especially in Latin America, where one venture started
up in December 2022 (1.6 Mt) and another during the second half of 2023 (2.1 Mt).
The second half of the year brought a reversal of fortunes for the pulp market, with global demand for eucalyptus (EUCA) pulp
performing more strongly than in the first half of the year (when growth was practically nil). China was the driving force behind
this recovery, with restocking after prices bottomed out in May.
Chinese demand for hardwood pulp (HW) performed well in the second half, culminating in growth of 29% HW and 24% for short
eucalyptus fibre (EUCA) in 2023, comparing favourably with the first half (up 21% HW, up 14% EUCA).
As a result, global demand for hardwood pulp (HW) kept pace with this positive tendency in the second half, culminating in growth
of 8.0% HW and 6.5% for short eucalyptus fibre (EUCA) in 2023, comparing favourably with the first half (up 3.1% HW, up 0.6%
EUCA).
Stocks at manufacturers and ports were also high in the first half of the year, and then normalised in the second half. Comparing
2
nd
half stock levels with those in the first half of the year, we may observe that stocks at manufacturers of chemical and
hardwood fibre pulp fell by 7% and 6% respectively and stocks at ports fell by 11% in China and in Europe recorded a significant
downwards adjustment (-35%).
Over the course of the year, Navigator has had a larger quantity of pulp available for sale, as a result of less being incorporated
into paper. Pulp sales for the period stood at 462 tons, representing an increase of 81% YoY, whilst the value of sales was
constrained by the current level of prices, showing growth of 26%.
4.2. Paper
The printing and writing papers industry
The financial year of 2023, and above all the first half, saw a slow process of destocking along the supply chain. This imbalance
significantly affected the demand experienced by manufacturers in all paper segments, except tissue. The improvement in market
conditions in the 3
rd
quarter continued to be felt in the final quarter. Although initially slow, the destocking process along the
supply chain appears to have dissipated, bringing a consistent upturn in the level of new orders to European manufacturers,
significantly offsetting the seasonal factors normally faced by the industry.
In the 4
th
quarter, the level of new orders recorded by Navigator from all markets increased by 18% over the previous quarter,
and orders from Europe rose by 25%.
Annual Report 2023 · Management Report 42
The industry recorded a significant adjustment in capacity utilisation rates (output/capacity) in 2023, and Navigator likewise
steadied the pace of production. The capacity utilization rate for year eventually stood at 78%, comparing with an average figure
of 71% for the industry in Europe, boosted by the increase in the 4
th
quarter, when Navigator recorded a rate of 85% (vs. an
industry rate of 80%).
Source: PPPC
In a global context of sharply falling apparent demand (down 11%), UWF paper remains the most resilient, as usual, in view of
its versatile uses, with a reduction of 6%, as compared to CWF papers, for which demand dropped by 17%. Demand for paper
produced from mechanical pulp dropped by 18%.
In Europe in particular, apparent demand for UWF was down by 20%, although it also remained the most resilient grade, with the
cut size segment, in principle more vulnerable to the tendency for digitisation, presenting better performance than other grades.
It should also be noted that, in Europe, between 2013 and 2023, apparent demand for UWF fell by an average of 4.7% a year
(CAGR). A trend which is clearly better than any of the other segments in the family of printing and writing papers.
In the United States, demand declined more slowly than in Europe, down by 14% YTD November. Apparent UWF consumption in
other world regions dropped by 2%, with China presenting growth of 6% (November) in UWF consumption in relation to 2022.
The benchmark index for the price of office paper in Europe (PIX A4 B-copy) averaged 1,206€/t (vs. 1,216€/t) in 2023, a variation
of only 0.8% in relation to 2022, although the benchmark index closed the year at 1,092€/t, down by 18% on the start of the
year (1,334€/t).
Navigator's paper and packaging sales totalled 1,131 thousand tons in 2023, down by 25% on the previous year. It is
important to note that mill brands represented close to 80% of the year's sales (vs. an average of 65% over the period 2012-
49.9
49.7
49.7
49.5
49.8
49.6
48.6
43.4
44.9
45.0
42.3
24.3
23.7
23.2
22.5
22.3
20.5
18.6
15.7
16.4
15.9
13.2
12.4
11.9
11.3
11.0
10.6
10.1
9.0
7.6
7.6
7.0
5.6
13.9
13.5
12.6
11.6
11.2
10.7
9.6
7.4 7.4
6.5
5.5
2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
UWF CWF UME CME
-2%
CAGR 13-23
UWF
-6%
CAGR 13-23
CWF
-8%
CAGR 13-23
UME
-9%
CAGR 13-23
CME
Annual Report 2023 · Management Report 43
2021), highlighting the resilience of the company's branding strategy. The proportion of premium products, whilst lower than in
the previous year, remains high, at 57% (compared to an average of 53% in the period 2012-2021).
4.3. Packaging
Packaging - From Fossil to Forest – investment in sustainability, innovation and
transformation
In the packaging business, where a consolidated presence on the international market is still being built up, Navigator likewise felt
the adverse conditions of a year marked by overstocking throughout the supply chain, which was reflected in the slower and
irregular behaviour of demand. In particular, consumption of bags (one of Navigator's main segments) fell by 40% after the
introduction by law of mandatory in-store charges for consumers.
Nonetheless, the development of our packaging business continues to show considerable promise, with a growing customer base,
recognition of the quality of our products, based on eucalyptus globulus fibre, and consequently of the gKraft™ brand. Our
products are being used by high profile brands in sectors ranging from fashion to food retail, e-commerce, manufacturing and
farming.
This success is confirmed by growth in the client base, which today boasts more than 230 active clients, in 30 countries, since
starting up in 2021. gKRAFT has won recognition not only in the marketplace: Navigator's work in the field of sustainable
packaging solutions was rewarded in June this year by winning the National Innovation Prize.
In addition, the Mobilising Agenda entitled "From Fossil to Forest - Sustainable Packaging Products to Substitute ‘fossil’ Plastic",
led by Navigator, was selected by the Deloitte Portugal IRGAwards (Investor Relations and Governance Award) for its
Transformation Award, distinguishing transformation and innovation projects with an impact on markets.
Navigator has based its offering of packaging papers on three GKraft™ macro-segments: BAG, FLEX and BOX, which subdivide
into 12 segments for different applications, aimed respectively at the markets for Bags (retail, consumer and industrial bags),
Flexible Packaging (serving a wide variety of flexible packaging solutions), and boxes (corrugated cardboard boxes for value-
added products and food packaging, including cardboards for producing paper cups and food trays). The innovative introduction of
the properties of eucalyptus fibre has been crucial in securing the wide acceptance these products already enjoy in the market.
Navigator worked over the course of 2023 on developing new product ranges, aimed at the food industry, and also at a variety
of consumer products. These are currently still being trialled and launched on the market, in a large-scale operation aimed at new
customers (220 market trials conducted in 2023). The trials were conducted with more than 100 clients, two thirds of which are
new clients. Developments included the creation of new product ranges, most significantly for innovative 100% Eucalyptus
products, with a total of 31 new grades.
As part of the diversification of packaging business, progress has continued as planned in the project for integrated
production of eucalyptus-based moulded cellulose components, designed to substitute single-use plastic packaging in the food
service and food packaging market, and production is planned to start up in the 2
nd
half of 2024, under the gKraft™ Bioshield
brand. The facility will have production capacity for approximately 100 million units a year, making it one of the largest in Europe
and the first such integrated facility in southern Europe, moving into a fast growing, high-potential market.
Operations will start with four products for the food sector, and the facility offers production flexibility and scalability in order to
exploit the various opportunities opening up for substituting plastics.
Annual Report 2023 · Management Report 44
4.4. Tissue
Growth and strong performance in Tissue business
Tissue business took a front seat in 2023, with the acquisition of a production unit in Zaragoza, taking effect from the start of
the 2
nd
quarter. The takeover of this new mill is part of Navigator's ambitious plan for growth and diversification and has bolstered
its strategic position in the Tissue market, where in just eight years it has established itself as the 2
nd
largest player in Iberia, with
total annual production capacity of 165 thousand tons and annual converting capacity of 180 thousand tons.
In 2023, tissue sales proved significantly resilient, and there was sustained growth in demand for Navigator's finished products,
despite the contraction of demand in Western Europe (down 2.9%, first eleven months), especially in the second half.
The volume of tissue sales (finished product and reels) totalled 142 thousand tons in 2023, representing an increase in volume of
40% in relation to 2022, whilst the value of sales grew by 49%. This success was boosted by the integration of the new mill in the
second quarter, changing its name to Navigator Tissue Ejea. As well as contributing to growth in sales, the new mill has also
expanded our customer base and generated significant gains by unlocking synergies.
Sales of Navigator brands in 2023 were up by 25% in comparison with 2022.
Similarly, sales of more distinctive and innovative products continued to set new records in 2023, and were up by 64% in relation
to 2022.
The focus on innovation and differentiation continues to allow Navigator to enjoy recognition from consumers, winning the "5
Star Award" for the third year running. This has further raised its profile with customers, especially in terms of mill brands which
in 2023 accounted for 24% of the total volume of finished product sales.
4.5. Energy
Power Output of 1,436 GWh in 2023, of which 76% was from renewable energy
sources
Power sales totalled € 169 million in 2023, down by around 35% on the previous year.
This result is explained essentially by; (i) reduction in the market price (OMIE), which meant that it became advantageous to
switch the renewable cogeneration facilities to the special pricing system (when in 2022 they sold their output under the market
price system, benefiting from a better OMIE price), (ii) lower sales by the Setúbal Combined Cycle Natural Gas Power Station, as a
result of it changing in 2023 to operation of only one generator set (the operating margin for this unit was brought down by the
difference between the market power price and the natural gas price), making it possible to cut consumption of fossil fuels, and
(iii) reduced operation of paper machines (meaning that less heat was needed to dry paper, causing the cogeneration plants to be
operated less, in turn reducing output of electricity).
The Group's industrial units continued 2023 to participate in the Regulation Reserve Band Market, a system service provided
to the operator of the power grid by qualified major power consumers, designed to contribute to the fundamental aim of
safeguarding the security of supply in the National Electrical System. This market mechanism resulted in significant earnings in
2023 for the group’s energy business of approximately 19.6 million euros.
Annual Report 2023 · Management Report 45
In another important development in 2023, work started on building the new solar power facilities for the group's own
consumption at the industrial sites in Figueira da Foz, Aveiro and Vila Velha de Ródão. This will triple the capacity installed on our
sites, from 12 MWp at present to close to 38 MWp.
In phase three, in 2024-25, installation will proceed of between 8 and 15 MWp of new photovoltaic solar capacity, which will bring
Navigator's total capacity up to between 46 and 53 MWp, making Navigator the no. 1 player in solar PV rated capacity for in-
house consumption in Portugal.
Along similar lines, the Navigator Group is also looking into the possibility of investing in batteries (electrical storage), above all
for providing regulation reserve system services. There is the possibility of investing in up to three batteries, 10 MW/2 hours each.
If this investment proves attractive, it may amount to a capex project of 7 to 21 million euros.
With more of a medium-long term view, Navigator is still looking into the attractiveness of investing in green fuels, both biofuels
(medium term) and e-fuels or synthetic fuels (medium-long term).
In terms of biofuels, possible capex projects are being assessed in the production of second-generation bioethanol (using
eucalyptus bark as raw material) and in producing kraft biomethanol (through the recovery and purification of by-product
biomethanol produced at pulp mills) for use as fuel or in the chemicals industry.
Lastly, in terms of e-fuels, capex projects are still being assessed for production of e-methanol and e-jet fuel. These are two
distinct projects, with different technologies and potential partners. In both cases, an essential component is biogenic CO
2
, which
is a by-product in our pulp production processes. In brief, these are processes for synthesising (biogenic) CO2 and green H
2
(obtained from water electrolysis) with a view to producing sustainable hydrocarbons (e-methanol, e-kerosene), neutral in carbon
emissions, for the shipping and/or aviation sectors, where electrical engines are not an option.
In the meantime, the European regulations on e-Sustainable Aviation Fuels (e-SAFs) have changed, and incorporation of e-SAFs
into traditional fuels will only be mandatory in 2030, meaning that priorities need to be reconsidered. As a result, the project
previously announced with P2X Europe (for production of e-fuels/e-SAFs), which was provisionally scheduled to start operation in
2023, will not be able to proceed as initially envisaged. The two companies have nonetheless reaffirmed their interest in
continuing to look into any new opportunities in the power-to-liquids sector, in line with the new adoption dates set by the EU.
4.6. Financial performance
Cost management and price levels together offset falling demand, resulting in
EBITDA of € 502 million
Variable costs were brought down significantly over the year, with a reduction in unit cash costs in all segments. Careful
management of paper prices, especially in segments with higher value added, has offered additional protection to profits, in a
context where volumes of paper sales have dwindled. These factors, combined with a sales strategy of prioritising mill brands and
product and market diversification, made it possible to achieve EBITDA of € 502 million and an EBITDA/Sales margin of 26%.
Unit cash costs improved over the year, and most significantly in the 2
nd
half. Comparing the 2
nd
half in 2023 with the same
period in 2022, we can point to a sharp drop in costs, with a reduction of between 16% and 20% in all pulp and paper segments
(printing and writing, tissue and packaging).
Navigator remains focused not just on managing its variable costs, boosting efficiency in consumption of raw and subsidiary
materials, by reducing specific consumption levels, in particular in pulp, paper and Tissue production, but also on making
continued efforts to contain fixed costs.
Annual Report 2023 · Management Report 46
Control of total fixed costs resulted in a reduction of 5% in 2023 in relation to 2022, despite the inclusion of the Tissue Ejea unit
in the 2
nd
quarter. Considerable efforts have been made to contain costs, with maintenance and running costs rising by less than
1% in 2023, well below the rate of inflation for the year (4.3%) and the rate of pay rises, in particular at Navigator, where the
average pay rise implemented in 2023 was 5.3%.
Financial Results benefit from interest rate hedging policy
Financial results showed a loss of € 19 million (as compared to 57 million in 2022). It should be noted that in 2022 financial
results were penalised by non-recurrent (non-cash) impacts, resulting from recognition, in income for the period, of accumulated
exchange rate losses, essentially relating to repayment of shareholder loans provided to the subsidiary Portucel Moçambique (€ -
34 million).
If these non-recurrent items are excluded, we can point to an improvement YoY of € 4.6 million. This was partly due to rising
interest rates, which enabled Navigator to optimise cash management, with a positive impact of € 3.7 million. At the same time,
the interest rate risk hedging policy - with 95% of total borrowing currently contracted on a fixed rate basis (directly or through
derivatives) - made it possible for the average borrowing rate to be kept stable despite the steep hike in reference rates.
Combined with the reduction in gross debt, this also made for an improvement of € 1.1 million in financing costs.
Pre-tax profits totalled € 347 million (€ 516 million in 2022) and corporation tax payable stood at € 72 million (€ 124 million in
2022), with a taxation rate for the period of 20.8% (24% in 2022). Net income stood at € 275 million (€ 393 in 2022).
Free cash flow generation impacted by acquisition operation and by accelerated
capex
Free cash flow generation in 2023 stood at approximately € 92 million (vs. approx. € 463 million in 2022), reflecting the impact of
the disbursement for acquisition of the Tissue unit in the 1
st
quarter, the demanding schedule for the capex plan under the
Recovery and Resilience Plan (RRP) and the additional payment of € 108 million in corporation tax (IRC), as a result of the
exceptional level of profits in the previous year, as well as the distribution of employee bonuses. These payments are closely
related to the excellent performance the Company achieved in 2022.
The figures were also due in part to a significant reduction in the value of inventories and client receivables, more than
offsetting the reduction in balances payable to Suppliers, which reflect the policy of supporting our partners' liquidity.
4.7. Sustainable finance
New long term green finance from EIB, worth € 115 million, consolidates
Sustainable Financial Management
Net debt stood at € 490 million at year-end 2023, reflecting the impact, among other things, of the disbursement for acquisition
of the new tissue mill in the first quarter and the distribution of € 200 million in dividends in the second quarter. The Interest
Bearing Net Debt/EBITDA ratio stood at 0.98, further consolidating the financial strength displayed by the Group in recent years.
Debt repayments totalling € 82 million were made over the year, in the 4
th
quarter, Navigator contracted long term finance
from the European Investment Bank (EIB) with a value of € 115 million, which can be drawn in 3 tranches over a period of 18
months after signing, with maturities of up to 12 years. The loan is intended to support the project to build and operate the high-
efficiency recovery boiler at the Setúbal Industrial Complex, a fundamental step forward under the roadmap for decarbonisation
Annual Report 2023 · Management Report 47
(Chapter 6.3.2). This green finance is provided as part of the REPowerEU Plan, designed to boost finance for green energy and to
support the European Union's autonomy and ability to compete.
As a result, average debt maturity remains appropriate, with rationally staggered repayments, 46% of total debt tied to
sustainability (42% of total issued) and 95% of total debt issued on a fixed rate basis, enabling us to maintain low financing costs
in a scenario of sharply rising interest rates.
Average borrowing rate (Dec-23)
1.9%
Interest rates
Fixed: 95% Floating: 5%
4.8. Share performance
At the start of 2023, the global economic outlook was far from promising, with the expectation that growth in the main
developed economies would be modest, or even negative in some cases. On the geopolitical stage, the war in Ukraine was joined
by conflict in the Middle East, making for periods of significant risk aversion over the course of the year.
However, overall, the year proved clearly more favourable than initially expected: 2023 ended with growth of approximately 2.5
(USA) and 0.5% (Europe). In the case of the Portuguese economy, the (expected) GDP growth in 2023 is 2.3%, when a year ago
it was expected to stand at around 1.5%.
Stock market indexes performed in line with evolving expectations: despite the high levels of volatility recorded, the year ended
up being positive for most financial markets. 2023 ended with the main indexes recording their peak levels for the year, such as in
the case of Euro Stoxx 600, and with some indexes (such as Nasdaq 100 and S&P 500) at all-time high levels.
On the foreign exchanges, the EUR/USD rate closed the year largely unchanged from the previous year.
99
157
261
20
124
429
Liquity 2024 2025 2026 2027 2028 + next
DEBT MATURITY PROFILE
Total debt: € 659 million
Average Maturity: 3 years
Liquidity = Cash €169m + Long-term facilities available €260m
Annual Report 2023 · Management Report 48
Despite significant volatility at the start of the year, the share price performance of most companies in the pulp and paper
sector eventually rallied, and most shares closed the year with positive performance. It should be recalled that, over the first half
of 2023, the sector experienced a particularly difficult situation, with a slow process of destocking in printing and packaging paper
throughout the supply chain.
In this context, total shareholder returns (TSR) for Navigator in 2023 stood at 11.85%, reflecting the strong performance by
the shares and distribution of dividends.
Navigator Share Prices
Source: Bloomberg
Navigator shares grew in value by 2.7% over 2023, closing the year at € 3.55 per share. The share price held steady over the
year, falling to a low of €3.012 after payment of dividends on 31 may and rising to a high of €3.8128 on 12 October. Average
daily trading stood at 937,339 shares, with an average daily turnover of 3.1 million euros.
Navigator’s annual general meeting was held on 17 May 2023, and approved the distribution of dividends, payment of which
was concluded on 31 May, with a total pay-out of 200 million euros, equivalent to a gross dividend per share of €0.2812.
Navigator's rating and excellent ranking are important facts that reflect its ongoing efforts to integrate sustainability as a priority
in its business model its capacity to anticipate and manage ESG risks in the conduct of its operations. (Chapters 1.5 and 5).
Navigator closed the year with an average target price consensus of €4 from eight analysts, with one Buy recommendation, five
Hold recommendations and two Sell recommendations (Part I of the Corporate Governance Report).
2,5 €
3,0 €
3,5 €
4,0 €
Jan-23 Feb-23 Mar-23 Apr-23 May-23 Jun-23 Jul-23 Aug-23 Sep-23 Oct-23 Nov-23 Dec-23
Annual Report 2023 · Management Report 49
4.9. Contribution to State tax revenues
As part of the business carried on by the Navigator Group companies, they incur a multitude of taxes, charges and contributions,
making the Group a major contributor to government revenue in Portugal, helping the country to achieve its welfare and
development objectives. Tax Policy therefore has a significant impact on the business community, affecting the Group's entire
value chain.
For this reason, the Navigator Group has a Tax Policy aligned with the Group’s business development strategy, defined in
accordance with the economic substance of its activity, aimed to ensure full compliance, by Group entities, with their tax
obligations, in all the jurisdictions in which they carry operate , seeking to maintain full compliance with the spirit and letter of the
applicable legislation.
Aware of the role it plays in the Portuguese industrial and business community, and as required from a transparency perspective
by its stakeholders, the Navigator Group has, in recent years, sought to determine its Tax Footprint, identifying the volume of
tax revenues obtained from its business operations and the taxes it collects and administers on behalf of the State and other
parties, thereby contributing on this dual basis to the State’s tax revenues.
As shown in the “Taxes borne” graph, the Group footed a total tax bill in 2023 (including more than 20 different taxes,
contributions, and charges) of €109 million (2022: 166 million), equivalent to an effective tax burden of 31.42% in 2023 (2022:
32.12%) on pre-tax profits. This tax burden consisted primarily of Corporate Income Tax (CIT), including surcharges (Municipal
and State), Autonomous (flat-rate) Taxation (TA) and Social Security contributions, the last two of which totalled €79 million
(2022: €135 million) and €22 million (2022: 21 million), respectively.
Annual Report 2023 · Management Report 50
Main taxes borne
The Taxes borne include environmental taxes of a very
significant size, totalling 4 million euros. These include the
Petroleum Products Tax, Water Resources Charge, Public
Maritime Domain Charge, Waste Management Charge, Special
Consumption Tax (IEC) on electricity, Extraordinary
Contribution on the Energy Sector (CESE), Single Road Tax
(IUC) and CO
2
licenses, with a decrease compared to the
previous year (2022: 6.5 million), due to less licenses being
needed. This reduction also demonstrates the fiscal
contribution to the pursuit of sustainability goals, in line with
the Group’s policy. Even so, the amount paid by the Group
continue to demonstrate its high sectoral contribution,
meaning that the creation of new rates or financial
contributions in future will certainly imply double taxation and
a heavy tax burden for the Group, the consequence of which
will be to limit Navigator’s ability to invest in new, more
sustainable projects, as it has been doing.
Total tax borne
In taxes levied by the State, Navigator accounted for 1,119
million euros in 2023 (2022: €1,465 million), with VAT once
again contributing the most to this amount (2023: 1,017
million vs. 2022: 1,345 million), which highlights the Group´s
contribution towards collecting tax revenues for the
Portuguese State. It should be noted that Navigator is not
remunerated by the State for collecting these taxes, unlike
what happens in other jurisdictions, and even among us, other
economic operators, are remunerated by the Tax Authority
(e.g. seizures made on the tax authority’s request), which
means that Navigator internalizes and fully bears the costs of
levying these taxes on the State's behalf.
CIT
59%
Social Security
contributions
supported by
Company
22%
Municipal and
State surcharge
17%
Automonous
taxation
2%
CIT
73%
Social
Security
contribuitions
supported by
Company
20%
Enviromental
taxes
4%
VAT non-
deductible
1%
Property taxes
0%
Stamp
duty
1%
Other taxes
1%
Annual Report 2023 · Management Report 51
Taxes collected
It is also important to mention the VAT assessed and self-
assessed by Navigator in other jurisdictions where it is
registered for VAT purposes outside Portugal, where it
collected an additional total of €57 million in VAT (2022:
€82 million) for the respective local tax authorities.
VAT collected for other States
Country
2023
Figures in Euros
Germany
15,144,100 €
Poland
14,299,873 €
Netherlands
11,947,886 €
United Kingdom
8,250,287 €
France
3,602,915 €
Spain
2,417,292 €
Switzerland
694,581 €
Italy
329,550 €
Total
56,686,485 €
The Group also collects €10.4 million in Social Security contributions supported by the employees (2022: €9.8 million) and €34
million in income tax (IRS) deducted at source (2022: €28 million), essentially on salaries paid to its Employees. The labour tax
rate for 2023 stood at 18.90% (2022: 11.4%), and the increase was essentially due to the reduction in the Group's consolidated
profits. This indicator is calculated as the ratio between taxes levied on labour factor (Social Security contributions payable by the
company and the employee, and IRS deducted from employment income and pre-tax profits.
VAT assessed and
self-assesssed
91%
Personal
/corporate
income tax
withholdings
3%
Social Security under the
responsibility of the employee
1%
Seizures
0%
VAT assessed and self-
assesssed (VAT registrations
abroad)
5%
Annual Report 2023 · Management Report 52
In terms of the geographical distribution within Portugal of taxes charged on a territorial basis (municipal surcharge, Municipal
Property Tax, Municipal real estate transfer tax and municipal charges), the Group has the largest tax bill in the regions of
Setúbal, Figueira da Foz, Aveiro and Vila Velha de Ródão, where it pays local taxes of €3.5 million, €1.6 million, €0.8 million and
€0.6 million, respectively.
On the other hand, with regards to the worldwide geographical distributions, the Group paid out a total of € 66 million in
Corporate Income Tax (CIT) in 2022, determined on a cash flow basis. The following table provides a geographical breakdown
of corporate income tax paid by jurisdiction/country:
Jurisdiction
Accounting
result
in 2021
Corporation
Tax
paid in 2022
Share of
Corporation
Tax
paid in 2022
Accounting
result
in 2020
Corporation
Tax
paid in 2021
Share of
Corporation
Tax
paid in 2021
Figures in Euros
Spain
946,641
311,989
0.47%
1,414,600
1,172,971
4.75%
Netherlands
58,620
8,182
0.01%
54,521
7,332
0.03%
Portugal
496,215,202
64,445,158
97.00%
255,307,716
19,461,688
78.87%
France
94,340
26,322
0.04%
103,027
32,620
0.13%
Germany
204,280
237,331
0.36%
538,513
20,836
0.08%
Austria
338,780
4,268
0.01%
29,551
11,279
0.05%
United Arab Emirates
9,213
0
0.00%
10,708
0
0.00%
United States
3,242,467
1,137,557
1.71%
4,697,171
306,846
1.24%
Italy
64,145
17,087
0.03%
135,810
17,380
0.07%
Morocco
13,152
1,621
0.00%
14,337
1,592
0.01%
Mexico
11,379
8,737
0.01%
10,311
6,692
0.03%
Poland
-3,651,881
1,964
0.00%
5,939,204
2,945,849
11.94%
United Kingdom
273,674
0
0.00%
1,572,739
306,101
1.24%
Russia
0.00
0
24,218
975
0.02%
Turkey
5,654
12,310
0.02%
7,062
4,353
0.02%
Egypt
14,775
2,000
0.00%
0
2,176
0.01%
Ireland
566,730
220,107
0.33%
1,506,747
375,032
1.52%
Mozambique
1,984,682
1,488
0.00%
15,513,296
1,016
0.00%
Total
500,391,851
66,436,122
100%
286,879,532
24,674,738
100%
In the context of compliance with its country-by-country tax reporting obligations, it should be noted that, in 2022, the Group
paid 97% of its global corporate income tax borne in Portugal (2021: 78.87%; 2020: 80.92%; 2019: 95.95%; 2018: 92.93%;
2017: 93.78%) within the 17 jurisdictions (2021:18; 2020 and 2019: 16; 2018: 18; 2017:17) where the Group is established and
its tax payments represented the following percentages of global corporation tax: 1.25% in Europe, 0.03% in Africa & Middle East
and 1.73% in America.
Lastly, the Tax footprint report is particularly important to the Group in its efforts to digitalise its tax function, with a view to the
reliability of tax information for compliance with tax reporting obligations, and insofar as it brings together and analyses the main
indicators for the many different taxes paid and collected on behalf of the State, and the Group's decisive contribution to public
revenues in Portugal.
Annual Report 2023 · Management Report 53
4.10. The Navigator Group's tax policy
The Navigator Group fulfils the duties of corporate citizenship by complying with its obligation to create value and finance the
general functions of the states in which it operates through the payment of taxes, contributions, charges and other levies payable
under the law, helping to promote the sustainable economic and social development development of these countries.
The Navigator Group's Tax Policy aims to ensure full compliance by the Group´s companies with their tax obligations in all the
jurisdictions in which they operate, seeking to maintain full compliance with the spirit and letter of the applicable legislation.
For this purpose, the Navigator Group makes use of its in-house specialists and external consultants (if necessary) to ensure a
proper and prudent interpretations of the tax law applicable to its business and transactions, as well as requesting binding
information from the tax authorities, when admissible and opportune, in order to ensure compliance with its tax obligations, in a
collaboratives spirit and to proactively minimize risks and possible tax contingencies.
The Navigator Group's Tax Policy is aligned with the group's business development strategy, meaning that the policy reflects the
economic substance of its activities. For this reason, the Group's transactions is carried out in response to its economic activity,
and the tax implications of these transactions are just one of many economic factors to be considered in management decisions at
the Navigator Group.
Obviously, like any other business cost, the Navigator Group has an obligation to manage its tax expenditure in a financially
responsible manner for the Company and for its Shareholders. For this reason, under its tax policy, the Navigator Group makes
use of the tax benefits and incentives which are applicable and provided for in the tax legislation of the states where it carries
on its business and which are appropriate to that business, in view of its economic substance.
In addition, in transactions with related entities, the rules, OECD guidelines and international best practices applicable to
transfer pricing are taken into account to define the terms and conditions of these intra-group transactions.
The Navigator Group also takes active steps to establish a relationship based on cooperation with the tax authorities of the of
the countries where it carries on its business, to ensure it complies with tax legislation. This also entails providing the information
and mandatory documents required by these tax authorities, to ensure that it complies with its own obligations and also, that the
economic operators interacting with the Navigator Group likewise comply with their respective tax obligations.
Importance is also attached to appropriate and effective disclosure of the Navigator Group's Tax Policy, as well as of its tax
footprint, identifying and annually disclosing the volume of taxes it economically bears and those it collects and administers on
behalf of the State or other parties, thereby contributing on two fronts to the State’s fiscal revenues and the payments made to
public authorities.
Lastly, the Navigator Group creates and follows internal procedures for appropriate and regular oversight of its tax practices and
review of its Tax Policy, with the involvement of its corporate boards, in order to minimise the potential financial and reputational
risks involved in decision-making on taxation matters.
Annual Report 2023 · Management Report 54
5. Creating sustainable value
GRI 3-3, 201-1
ESRS MDR-A, MDR-T, MDR-M
Creating long term value and sharing it with our Stakeholders is part of our Corporate Purpose and defines
our responsible business strategy. As a leading force in wealth creation in Portugal, we have an impact on the
lives of thousands of people up and down our value chain.
OUR IMPACTS
1%
€2,034m
30,000
of Portuguese GDP
17
Direct economic value generated
Direct, indirect and induced
employment
18
3%
€1,848m
7,490
of Portuguese exports of goods
Direct economic value distributed
Suppliers — 73% Portuguese
€106m
46%
€185m
ESG CAPEX (57% of total NVG CAPEX in
2023)
ESG finance
19
Accumulated economic value
€269m
in projects aimed at the Climate
Transition and the Digital Transition,
under the RRP up to 2026
17
Source: Figures published by INE (Statistics Portugal) for 2021.
18
Source: KPMG study - 2016.
19
The percentage refers to the value of the finance contracted..
Annual Report 2023 · Management Report 55
As a top player in wealth generation in Portugal, and in its contribution to the country's
economy, we have a direct impact on the lives of thousands of people all along the value
chain - including Shareholders, Employees, Customers, Suppliers, local Communities and
society in general.
We base our growth on a production structure which sets international standards for size and
sophisticated technology, spread over four large scale modern industrial complexes in Portugal, as
well as forestry operations in mainland Portugal, Galicia (Spain) and Mozambique. In 2023 we
acquired a new consumer tissue business in Spain, expanding our manufacturing and commercial
capacity. Integration of the new mill will make it possible to optimise management of the Iberian
customer portfolio, while positioning us better for new business in Spain and France, thanks to the
strategic location in Zaragoza, and bringing operational synergies.
Our business strategy and results position us as one of Portugal’s largest industrial concerns –
we account for approximately 1% of GDP
20
and rank as the third largest
20
exporter of goods in
Portugal. More than 92% of our output is sold outside Portugal, with products shipped to 134
countries.
Because our value chain incorporates home-grown natural resources from planted forests and
because we create earnings and employment in Portugal, where we source most of our raw
materials and services, we are the top exporting company in terms of contribution to National Value
Added
20
.
In addition, we have been ranked first in a list of the 2,000 companies operating in Setúbal (Portugal)
which create the most value for the district, and second in terms of turnover in the region, moving
closer to first place in the “Ranking of the 2000 Top Companies in the Setúbal District 2022”
21
.
Through our business operations we generate jobs for 30,000 people, in direct, indirect and induced
employment
22
, and we work with more than 7,400 Suppliers, 73% of which are Portuguese.
20
Source: Figures published by INE for 2021.
21
Source: Iberinform Portugal report, with reference to 2022.
22
Source: KPMG study - 2016
1%
GDP
3
rd
place in the list of the
largest exporters of goods
in Portugal
1
st
place in the ranking of
exporters contributing
most to National Value
Added
1
st
place in a ranking of
2,000 companies
operating in Setúbal
(Portugal) creating the
most value for the district
92%
of Products exported, to
more than 130 countries
Annual Report 2023 · Management Report 56
Direct economic value (revenues) in 2023 was down by 24.7% on 2022, and exceptional year for
sales and prices. This was due principally to the first quarter of the year, which saw sharp contraction
in international demand in the main segments in which we operate, which together with the slow
process of destocking, resulted in a slower pace of production and sales (Chapter 4.).
Annual Report 2023 · Management Report 57
Navigator’s forest business strategy has strong roots in Portugal, due to the location of its industrial complexes and the quality of its management of planted
eucalyptus forests. In 2023, the Company implemented capex projects in several Portuguese districts, investing more than 226 million euros.
Investment by district
Biomass
Purchases
Wood
Purchases
Installation
Maintenance
Felling
Logging
Transport
Trails
Rentals
Total
Aveiro
4,699,282
28,704,137
186,750
143,948
211,396
119,145
250,752
11,713
1,152,749
35,479,871
Beja
308,462
6,332,426
927,468
1,394,784
634,184
368,881
968,845
59,039
784,413
11,778,503
Braga
53,710
17,039,144
60,918
70,143
95,816
48,835
162,098
0
114,162
17,644,825
Bragança
1,860
0
0
3,182
52,023
16,049
80,127
0
10,514
163,757
Castelo Branco
4,034
1,141,541
1,172,709
911,924
808,729
278,965
1,374,228
8,000
586,567
6,286,697
Coimbra
2,125,948
17,951,471
487,243
555,690
510,379
259,518
666,734
1,700
1,358,875
23,917,557
Évora
507,046
1,131,866
161,983
420,106
588,637
325,727
749,128
11,495
217,891
4,113,878
Faro
165,330
3,486,093
564,013
640,961
240,306
141,732
620,108
39,475
404,618
6,302,638
Guarda
6,927
7,334
0
88,113
0
0
0
0
47,408
149,781
Leiria
2,200,195
21,121,761
81,797
94,004
23,565
18,636
38,806
0
186,947
23,765,711
Lisbon
948,860
13,243,525
58,753
36,489
149,543
89,521
212,875
1,085
196,181
14,936,831
Portalegre
786,066
2,605,942
364,286
369,580
177,912
70,395
240,273
0
260,475
4,874,930
Porto
780,607
12,660,309
322,451
388,296
470,004
225,762
657,139
1,390
698,154
16,204,113
Santarém
1,301,850
20,371,507
300,529
627,232
925,660
474,208
1,521,959
13,694
1,257,846
26,794,484
Setúbal
6,401,097
5,877,856
625,266
603,507
420,800
226,303
442,745
4,100
700,532
15,302,206
Viana do Castelo
26,703
3,206,028
51,873
106,952
54,328
28,497
110,194
0
148,055
3,732,631
Vila Real
5,135
100,445
8,712
0
10,328
4,426
16,540
0
12,033
157,619
Viseu
142,170
11,130,437
179,799
162,536
94,377
51,909
164,335
0
272,877
12,198,440
Subtotal
20,465,282
166,111,821
5,554,549
6,617,448
5,467,988
2,748,507
8,276,887
151,690
8,410,299
223,804,471
Funchal
0
2,231,726
0
0
0
0
0
0
0
2,231,726
Ponta Delgada
0
3,639
0
0
0
0
0
0
0
3,639
Total
20,465,282
168,347,186
5,554,549
6,617,448
5,467,988
2,748,507
8,276,887
151,690
8,410,299
226,039,836
Annual Report 2023 · Management Report 58
Creating long-term value
Creating long-term value and sharing it with our various Stakeholders is built into our identity (Chapter 6.2.6) and we
are mindful of the various impacts of our business on society and that our economic and financial performance cannot be
dissociated from how we manage our Community relations, nor from judicious management of the resources we use, our
ability to mitigate the risks entailed in our business nor, moreover, from transparent open-access communication.
As set out in our purpose, we want to share with society not only our results, but also our know-how, our experience and our
resources, with a commitment to leaving a better planet for future generations - through natural products that are
sustainable, recyclable and biodegradable, that help to sequester carbon and produce oxygen, that protect biodiversity,
soil formation and combat climate change.
Pursuit of a responsible business, promoting sustainable development and in alignment with the United Nations Sustainable
Development Goals (SDGs) is therefore set out in our 2030 Agenda – Creating Value Responsibly (Chapter 6.2.4). We have an
especially important potential role to play in mitigating and adapting to the effects of climate change, especially through
decarbonisation, as shown by our commitment to achieve carbon neutrality at all our manufacturing units in Portugal by 2035
(Chapter 6.3.2).
Customers are a strategic Stakeholder for The Navigator Company's success, and we therefore invest in building a close
commercial relationship and meeting their needs (Chapter 6.5.3). Strong brands and sustainable products (Chapters 2.2,
6.5.3) remain essential factors, which are combined with a firm commitment to innovation.
We have invested in promoting a new generation of bioproducts that offer an alternative to fossil-based materials. This entails
creating innovative and distinctive products, as well as developing potential new businesses, aligned with sustainable
development (Chapter 6.5.2).
We have made major strides in our product diversification strategy, in line with market trends and sustainability challenges
(Chapter 6.5.3), an example of which is our move into the packaging business area, with a new line of packaging paper
(gKRAFT), working to reduce the use of plastics, by providing substitute materials from renewable sources.
In this way we add value to the entire forestry value chain, bringing out the potential of Portuguese forests to produce a
diversified range of products.
We also contribute to the rural economy, through development of the regions where we operate and improving the woodlands
we manage, with an impact on local Communities (Chapters 6.3.3, 6.4.3).
We are responsible for generating opportunities for professional growth in an array of different sectors, from forestry to
manufacturing, and from research to end products. This benefits and empowers our eucalyptus growers, Suppliers and local
Communities. We have a positive impact on employability and skill levels, especially among young people (Chapter 6.4.1)
and forestry producers (Chapter 6.3.3), by working to share our knowledge through educational initiatives promoting
sustainable forestry management and certification, with the aim of contributing to improved and better protected forests.
As the foundation of all our operations, we invest in our human capital - in skills, recognition, motivation, health and welfare
(Chapters 6.4.1, 6.4.2). We support our Employees’ families and, as part of our efforts to recognise the dedication and
commitment of our people to achieving positive results for the Company, we have responded to this success by awarding and
increasing performance and productivity bonuses.
Annual Report 2023 · Management Report 59
Portucel Moçambique: wood harvest and exports
In the operations of Portucel Moçambique, the process of harvesting and exporting
eucalyptus wood from the country is geared to creating sustainable value, supporting the
Company’s operations in the country in the long term. Over the length of the value chain,
the returns from the project include:
• Skilled employment and professional advancement. The company employs a
permanent workforce of 250 (95% Mozambican, and 30% women), as well as
providing a further 1,000 full time equivalent (FTE) jobs on a casual and seasonal
basis, mostly for local Communities.
• Wealth generation and added value in the country, as well as environmental
protection and investment in Communities.
A forest-based industrial cluster is being created, with a focus on exports, thanks to the
favourable soil, climate and geographical conditions, positioning Mozambique and the
Company in the international market for exporters of sustainable wood.
In the period from 2021 to 2023, a total of 8 shiploads were dispatched from the port of
Beira, corresponding to the export of 250 thousand m
3
of wood, of which 218 thousand m
3
was harvested from Portucel Moçambique's plantations.
In addition, Portucel Moçambique contributes to the development of local communities in the
areas where it operates through the different elements of its Social Programme (Chapter
6.4.3), representing investment of 7.6 million dollars.
Finance and investment for sustainable development
In our 2030 Roadmap (Chap. 6.2.4) we set out a commitment to ensuring that Navigator’s
sustainable financing and investment policies incorporate ESG criteria. In particular, we set the
following objectives:
• To achieve an ESG (Environmental, Social and Governance) finance ratio of 70% or
more by 2030;
• Ensure that the Net Debt/EBITDA stays below 2.0x;
• To continue with the policy of ESG investment in the management of Pension Fund
assets, seeking to ensure that investments take a sustainable and responsible approach,
in addition to applying the traditional financial criteria. Seeking to secure ESG
classification of those assets under Regulation (EU) 2019/2088 of the European
Parliament.
We have made significant strides toward sustainable finance, through financing operations
where pricing is pegged to attainment of sustainable development goals or ESG performance
indicators, included in our 2030 Roadmap. These financing arrangements enable us to make a
judicious selection of maturities and risk conditions, and the pricing mechanisms are a clear
demonstration of our commitment to the established sustainability goals.
46%
ESG finance contracted
250
thousand
m
3
Wood exports, of which 218
thousand m
3
harvested from
Portucel Moçambique's
plantations (2021-2023)
250
Permanent jobs
>1,000
FTE jobs
Annual Report 2023 · Management Report 60
Annual Report 2023 · Management Report 61
In structural terms, our financing policy provides us with sound and consistent foundations for gradual implementation of projects,
enabling us to act systematically in advance of programmed events. Our financing policy has consolidated our adoption of
sustainable development principles – at year-end 2023, 46% of our borrowing was on an ESG basis
23
- and this is expected to
increase, with further ESG finance being taken out in the near future, and repayment of older facilities. A further finance facility
for capex with a significant ESG component was crucial to the results achieved in 2023 (see highlight).
EIB loan for accelerating decarbonisation
Targets 7.3, 9.2, 12.4, 13.1
Navigator made another stride forward in its investment in decarbonised and sustainable energy by contracting
finance of 115 million euros from the European Investment Bank (EIB), for construction and operation of a high
efficiency recovery boiler at the Setúbal Industrial Complex.
When the new boiler is operational, it will enable the complex to reduce direct emissions of fossil carbon dioxide by
around 136 tons a year, equivalent to a quarter of the Group’s emissions in 2022.
This facility and the respective terms reflect EIB’s recognition of the role this Navigator project has to play in the
transition to a circular economy, contributing to the EU's Green Deal. In 2019, the EIB established a series of goals
for promoting environmental sustainability and it is currently one of the world’s largest providers of funds for
climate action ventures.
The EIB loan is provided under the REPowerEU Plan set up by the European Union to reduce its dependence on
Russian fossil fuels, to save energy, diversify sources of supply and to speed up the transition to clean energy.
Navigator's finance has been increasingly sustainability-oriented, and at year-end 2023 more than 40% of the
finance contracted was tied to development of ESG practices.
We have also been willing to work in partnerships, submitting funding applications to leverage the transition to a low-carbon
economy and to the bioeconomy, thereby boosting our contribution in this area (see following section).
It is important to note that we have adopted a Responsible Investment Policy for Navigator’s Pension Fund.
The aim that all our assets should be tied to environmental, social and corporate governance (ESG) criteria was boosted by the
changes we made in 2022 to the management contract for the Navigator Pension Fund. The Fund pursues a responsible
investment policy, seeking to contribute to sustainability of the market as a whole in the long term.
The selection process for managers included assessing how far they incorporate ESG factors into investment decision-making, and
evidence that they play an active role in promoting sustainable investment. The Fund will have the goal of achieving neutrality in
greenhouse gas emissions by 2050 throughout its portfolio and will now use climate change metrics in its reporting.
23
The percentage refers to the value of the finance contracted..
Annual Report 2023 · Management Report 62
ESG Investment allocation
In 2023, capital expenditure totalled € 187 million (compared to 113 million in 2022). Capital
expenditure consisted mostly of projects aimed at maintaining production capacity, modernising
plant and achieving efficiency gains, as well as structural and safety projects.
Of these investments, approximately 57% of total capex, amounting to more than €106 million,
related to projects and initiatives with ESG aims, including structural, environmental and
decarbonisation projects, such as the new recovery boiler in Setúbal (Chapter 6.3.2), the new
biomass lime kiln in Figueira da Foz, the conversion of the fuel oil burners to H
2
in the recovery
boilers in Figueira da Foz and Aveiro and the Biomass boiler in Setúbal, the conversion of the lime
kilns to work with biomass in Setúbal and Aveiro, which are under way, or the new tower and
washing presses in Aveiro, already concluded, and which will contribute to accelerating the Group's
decarbonisation plan, as well as investment in waste water treatment (WWTP in Setúbal) (Chapter
6.3.4), the new wood yard in Figueira da Foz (Chapter 6.3.5) and the treatment of fly ash from the
recovery boiler in Aveiro.
The Group is currently involved in four components (C5, C11, C12 and C16) of the Business
Innovation Agendas, under the RRP (Recovery and Resilience Plan), corresponding to
eligible investment of €269 million up to 2026.
In the next two years, Navigator will continue to invest heavily, in particular under the RRP. For eligible
investments under the RRP, an incentive rate of around 38.8% is anticipated, corresponding to close
to € 100 million, and the Company received approximately 21 million in 2023.
€269m
Invested in projects
aimed at the Climate
Transition and the
Digital Transition (RRP)
up to 2026
8
RRP Agendas
Annual Report 2023 · Management Report 63
Especially important is the From Fossil to Forest Agenda - Sustainable Packaging Products
to replace Fossil Plastic" (Chapter 6.5.2), which includes, among other things, the projects
already in progress: i) projects to develop high yield chemical pulp and brown papers; ii)
projects to develop moulded cellulose for hard packaging; iii) bio composites and iv) papers
with barrier properties.
The Decarbonisation Agenda (Chapter 6.3.2) has also been launched, including the
projects already under way: i) new cogeneration turbine in Figueira da Foz, ii) new lime and
biomass kiln in Figueira da Foz, iii) new recovery boiler in Setúbal, iv) incineration of non-
condensable gases (NCG) in the new recovery boiler in Setúbal, v) new cogeneration plant at
Tissue Aveiro, vi) new solar facility at Tissue Aveiro, vii) new bleaching tower and pulp
washing presses in Aveiro; viii) new cogeneration plant in Vila Velha de Ródão.
The TransForm Agenda (Chapter 6.3.3, 6.3.5, 6.5.2) features in particular the following
projects already under way: i) genetic improvement and see orchards at Viveiros Aliança and
RAIZ; ii) remote data detection for sustainable and resilient forestry management; iii)
boosting adopting of electrical engines in Portugal's forestry sector and iv) recovery of
industrial waste for producing fertilisers.
The Produtech R3 Agenda includes projects for the robotised boxing machine for napkins in
Aveiro, artificial vision for Wood reception and automatic truck loading.
External recognition of our commitment to sustainability
Our ongoing commitment to and investment in better ESG performance was reflected by
external assessments by independent bodies, such as Sustainalytics, which again rated
Navigator as a “Low ESG Risk Company” for investors, and in 2022 classed Navigator as an
ESG Industry Top Rated Company.
In 2023, we secured an MSCI ESG Rating of “A”. This rating is designed to measure the
resilience of a Company to long term ESG risks. Companies are scored on a scale of AAA-CCC,
for the industrial sector in which they operate (Paper and Forestry Products), on the most
relevant key topics and on the basis of their business model.
We were also recognised in 2023 as a climate action leader with a rating of “A-” from CDP
Climate Change and CDP Forest (Chapter 6.3.2).
It is important to note that our targets for cutting greenhouse gas emissions have been
approved by the Science Based Targets Initiative (SBTi) (Chapter 6.3.2), in recognition of
our ambition to find science-based solutions for the climate challenge.
Navigator was also a prize winner in the Investor Relations & Governance Awards
(IRGA), organised by Deloitte to reward the organisations and individuals who have done the
most to make the Portuguese market more efficient, transparent, socially responsible and
useful to the economic and to Portuguese society. The mobilising Agenda "From Fossil to
Forest - Sustainable Packaging Products to replace Fossil Plastic" (Chapter 6.5.2), led by
Navigator, was the winner of the Transformation Award in the category for transformation and
innovation projects with market impact. The award recognises the importance of the project
in creating disruptive products and cellulose-based packaging as a response to the challenges
posed by growing consumption of single use plastics.
Annual Report 2023 · Management Report 64
Our commitment to sustainability also entails the highest standards in reporting practices, as
made clear by the improvement in Navigator’s score from Reporting Matters 2023, a
WBCSD and Radley Yeldar (RY) initiative, where we are ranked third in the group of Basic
Resources companies.
WHAT NEXT?
• Assessment of new ESG finance facilities (2024 and thereafter)
• Drafting of an overall ESG framework document, as the basis for future facilities
(2024)
Annual Report 2023 · Management Report 65
6. Sustainability declaration
6.1. Technical disclosures
GRI 2-2
ESRS BP-1, BP-2
This report seeks to consolidate and reflect our approach and commitment to sustainability issues, and also to demonstrate our
performance, in particular in connection with our Responsible Management Agenda (“2030 Agenda”), responding to the legal
requirements introduced by Decree-Law 89/2017, of 28 July, on the disclosure, by large companies and groups, of non-financial
information and diversity information. It has been drawn up in accordance with the Global Reporting Initiative (GRI) Standards,
2021 version.
The sustainability report is mostly presented in the “Sustainability Statement”, in a first exercise in alignment with the
requirements of the European Sustainability Reporting Standards (ESRS). As a starting point, a gap analysis was carried out in
2023 to identify any gaps in relation to the non-financial reporting requirements which will apply to us in future.
The structure adopted follows the order defined in ESRS 1 - General principles, organising the content into four parts (sub-
chapters): General Information; Environmental Information (including the mandatory content responding to the EU Taxonomy);
Social Information; Governance Information. However, the content of each sub-chapter has followed a more flexible rationale than
defined by the ESRS, considering that this is still a transitional year. It was therefore decided to align the sub-chapters with the
names of Navigator's material topics, used to structure the 2030 Responsible Management Agenda.
This report maintains the 15 material topics, resulting from the double materiality analysis in 2022 (Chapter 6.2.3) and the
respective review of our 2030 Agenda (Chapter 6.2.4), around two strategic action areas: “For Society” and “For Climate and
Nature”. Our aim in this is to respond to the topics deemed most relevant by our leading Stakeholders.
In each chapter and sub-chapter, we have identified the GRI and ESRS disclosure requirements to which we respond
(complemented by the GRI Table and ESRS Table of Correspondence, attached). In the case of the ESRS, recognising the fact that
we may not yet be responding in full to the requirements identified, we have sought to demonstrate our current degree of
alignment, aware of the journey we still need to travel to fill the gaps identified.
As regards the comprehensiveness of the disclosures, an exercise was conducted in 2023 to align our sustainability reporting with
the consolidation perimeter of our financial reporting, and we now include two other geographical regions - Mozambique and
Spain, resulting from the acquisition of a new tissue plant, Navigator Tissue Ejea. Cases where the perimeters are not identical are
duly identified in our methodological notes over the course of the chapters and systematised in the GRI Table (Chapter 10.2.3). It
should be noted that, in relation to social indicators, the data from the Ejea unit has not been included, as the plant is still in the
process of integration into the Group’s internal system.
In addition, in line with our established practices in the reporting of sustainability information, we include, in an annex to this
document, a detailed statement of progress in our performance, in relation to the commitments we have made in the 2030
Roadmap. In another annex, we present the GRI Index, showing how the content of this report corresponds to the reporting
model for disclosure of non-financial information defined by the Portuguese Securities Exchange Commission (Comissão do
Mercado de Valores Mobiliários. CMVM), the ESRS and also the World Economic Forum’s (WEF) framework in Measuring
Stakeholder Capitalism Towards Common Metrics and Consistent Reporting of Sustainable Value Creation, published in 2020,
taking the core option, which we have adopted voluntarily.
Annual Report 2023 · Management Report 66
Due to the extent of the content of this document, we opted not to use gender-neutral language in the Portuguese version.
Because we are committed to promoting gender equality (Chapter 6.5.1), it is considered that this option in no way undermines
our position on this matter, or our policies and practices.
6.2. General disclosures
6.2.1. Sustainability governance
GRI 2-12, 2-13, 2-14, 2-16, 2-19
ESRS GOV-1, GOV-2, GOV-3, MDR-P
We believe that only with strong governance will we be able to address the main environmental, social and economic risks and
opportunities we face - both those which have an impact on The Navigator Company, and those we generate for our Stakeholders.
We base our action on a series of policies, codes and rules of ethics and conducts, along with management systems that support
our approach to sustainability governance.
Sustainability governance structure and composition
The governance structure is supported by a number of different bodies and corporate committees, each with clearly defined
functions with regard to sustainability management. Powers to decide on Navigator's mission, strategy, policies and targets
(including as regards sustainable development) lie with the Board of Directors.
The process of designing the 2030 Responsible Management Agenda (Chap. 6.2.4), published in 2021, involved strategic
reflection by the Executive Board and the commitments and priority plans established in the 2030 Agenda and the Roadmap are
aligned with international trends and the social and environmental challenges facing Navigator's business (Chapter 6.2.2).
The Executive Board has delegated management of the 2030 Roadmap to the heads of the different Company divisions and
there is a team of sustainability key users who oversee the action plan established for the areas where intervention is required
under the Roadmap. This team works with management staff, and with support from the Sustainability Division, to assess
Navigator's performance in relation to the objectives set. Any changes to the original plans are reported to the Executive Board for
approval, and then made public in the Sustainability Report.
The Sustainability Forum is one of the main committees providing support to the Board of Directors. Headed by the CEO, the
forum is based on a tried and tested model that involves Navigator's various Stakeholders. Significantly, the Forum has internal
and external members, including leading figures linked to major Stakeholder groups, such as members of academe, NGOs,
industrial associations and forestry producers' organizations.
The Sustainability Forum is an arena for dialogue and meets twice a year. One of the annual sessions is internal, attended by the
Forums Permanent Members (internal and external) and the second session adopts an open model, with participation by a wide-
ranging group of Stakeholders (Chapter 6.4.3). These sessions have taken on a regional flavour, seeking to reach out to local
Communities, and to benefit from the cooperation between Navigator and the various municipalities where we have operations, as
well as to foster collaboration with leading figures in our sphere of activity.
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Participation by external Stakeholders is also a feature of the Environmental Council, which consists of four members, all of
them leading academics and independent figures, of respected technical and scientific expertise, especially in the environmental
areas relevant to Navigator's business. Our Ethics and Integrity Committee also comprises three prestigious independent
figures, appointed by the Board of Directors, who select their own chairman and charged with monitoring the rules established in
the Code of Ethics and Conduct.
Mention should also be made of the Community Monitoring Committees (Chapter 6.4.3) – in Aveiro, Figueira da Foz, Setúbal
and Vila Velha de Ródão – which include representatives of municipal authorities, local bodies, NGOs and universities, among
others. These committees are part of a policy of openness and sharing information about the activities of the various industrial
complexes, as well as seeking to learn about our partners' expectations and needs.
This governance model enables various structures across the Group to engage with sustainability issues, to incorporate an
external perspective from significant Stakeholders into efforts to honour our commitment to create value sustainably (understood
as a simultaneous quest for economic prosperity, environmental responsibility and a fair society) and to actively encourage all our
partners and stakeholders to join us in pursuing these goals.
The Sustainability Division is overseen by the executive director responsible for sustainability issues, enabling coordination
across all other Navigator divisions and with the Sustainability Forum in order to address specific issues.
For details of our directors, management and audit boards, we refer to the chapter on the governance model (Chapter 3.2).
Decision-making powers on sustainability issues
At board level, executive and non-executive directors are responsible for decision-making processes relating to all sustainability
issues. Internal divisions report all matters relating to sustainability to the EB. The Environmental Council and the Sustainability
Forum discuss issues included within this topic and report to the Executive Board and the Board of Directors. It may also be noted
that, in connection with ESG (Environmental, Social and Governance) requirements, a training programme was designed and
implemented in 2022 and 2023, by a specialist external firm, aimed at the executive directors and a number of other senior
managers, in order to strengthen internal expertise in the organisation of these fields. The topics addressed included the dynamics
of the international agenda and the response of institutions to climate and social challenges (2030 Agenda, the Paris Agreement
and the European Union Green Deal), Sustainable Finance, Environmental Taxonomy, the Sustainable Finance Disclosure
Regulation (SFDR), the Corporate Sustainability Reporting Directive (CSRD), Double materiality, TCFD and the Sustainability Due
Diligence Directive.
The main sustainability issues submitted in 2023 to the directors, management and audit bodies, or to the relevant committees, were:
• Updating Navigator's 2030 Roadmap;
• Drafting of the Annual Report and the start of the transition to the European Sustainability Reporting Standards (ESRS).
• Monitoring of ESG performance in sustainability reporting;
• Appointment of new Directors for the Sustainability and Public Affairs divisions;
• New legal and regulatory developments;
• Drafting of the Environmental Policy and updating of the Forestry Policy;
• Review and implementation of several fundamental documents in the field of Compliance, notably:
o Approval of the Corruption Prevention and Related Offences Policy, the Risk Prevention Plan for Corruption and
Related Infractions, appointment of the Compliance Officer and the Officer with general responsibility for Execution,
Control and Review of the Risk Prevention Plan for Corruption and Related Infractions;
o Approval of the Third-Party Integrity Verification Policy, the Policy for the Prevention of Money Laundering and
Financing Terrorism and the Policy for Compliance with International Sanctions and Restrictive Measures;
o Review of the Personal Data Protection Policy and appointment of the new Data Protection Officer;
• Creation of the Risk Management Committee;
Annual Report 2023 · Management Report 69
• Cross-Group Climate Risk Assessment and identification of opportunities for adaptation to and mitigation of these risks;
• Presentation of the work on the topic of Water Management;
• Methodology for calculating carbon footprint and analysis of life cycle of pulp, paper, tissue and energy products;
• Implementation of the Green Taxonomy rules on Navigator's eligible activities;
• Implementation of the recommendations from the TCFD (Task Force on Climate-related Financial Disclosures);
• Updating of Navigator's Act4Nature commitments;
• Constitution of Steering Committee for the “CRESCER” (Growing) Project;
• Approval of the Equality Plan and the governance model for diversity, fairness and inclusion;
• Signing up to the United Nations Global Compact (UNGC) participation in the Business & Human Rights Accelerator Program.
Incentives schemes
The Board of Directors conducts an annual self-evaluation and is also evaluated by the Remuneration Committee, which verifies
whether and to what extent the members of the Board of Directors (and the Executive Board) have attained their specific targets.
The performance assessment for each executive director follows an internal process structured under the leadership of the
respective manager (i.e. the person heading the team, in the case of members of Executive Board, and led by the Chairman of
the Board of Directors, in the case of the Chief Executive Officer), with the participation of the non-executive directors as the
manager responsible sees fit.
The basic criteria for assessing the performance of executive directors (in force 2023-2025) are those defined in item 2.2 of
chapter 2 of the Remuneration Policy for setting the variable remuneration component. These criteria are applied by using a
system of qualitative and quantitative KPIs, related to the performance of the Company and the director in question. The most
important of these general business indicators are EBITDA (with a 35% weighting), net income (10% weighting), cash flow (10%
weighting) and Total Shareholder Return vs. Peers (10% weighting). In terms of behavioural skills, importance it attached to each
Director’s alignment with the Company's long-term interests and sustainability.
In addition to these criteria, in line with the commitments made by the Company in its sustainability strategy, and in recognition
of the importance of efficient use of energy and the need to reduce emissions of fossil CO
2
from business operations, the
weighting also takes into account implementation of the corporate programme for energy efficiency, approved in 2016. This
means that the specific aims always include ESG indicators, such as the results of the organisational climate survey in the
Company, reduction of CO
2
emissions, certified wood and consumption of water, energy and wood.
Assessments of Executive directors and also the self-assessment of the Board of Directors and its committees were undertaken in
2023, in relation to performance in 2022, and will take place in 2024 in relation to performance in 2023.
It is stressed that the remuneration system in place at Navigator guarantees its business strategy and also the long-term
alignment of directors' interests with those of the company and its sustainability, in particular because this remuneration is
designed to be fair and equitable under the principles stated and because it creates a link between directors and results through a
variable remuneration component in which profits are the primary factor, whilst also taking into account the behavioural skills of
each director, and their alignment with the company's long term interests and sustainability.
Sustainability policies and codes
In order to set out its commitments on the material topics (Chapter 6.2.3) and to help put them into practice, Navigator has
instituted a diversified range of policies and codes - see table. Most significantly in 2023, the Company developed the text of its
Environmental Policy and approved its Compliance Policies, as well as reviewing other policies (e.g. the Forestry Policy).
Attention is also drawn to the existence of local policies (e.g. Portucel Moçambique's Code of Conduct for Suppliers and Forestry
Policy).
Annual Report 2023 · Management Report 70
Sustainability policies and codes
Annual Report 2023 · Management Report 71
6.2.2. Global trends and challenges for Navigator
ESRS SBM-3, IRO-1
At The Navigator Company, we keep careful track of the global situation and what it may
mean, in order to bolster our strategy and enable us to operate and navigate successfully and
sustainably through an uncertain future. As we move towards a population of more than 9
billion people in 2050, the world faces unprecedented challenges - the climate emergency,
nature in crisis, growing inequality and social unrest.
At Navigator we are aware our role in promoting a forward-looking vision, as a prime mover in
the Portuguese economy and a bioindustry on the right side of the future. With a value chain
that stretches around the world, the Company's success relies on its monitoring of these
challenges.
We are aware that the global situation may bring risks, as well as opportunities, impacting out
ability to create value in the short, medium and long term. For this reason, the starting point
for the design of our 2030 Agenda was an analysis of the main macrotrends and challenges
that could potentially influence the Company's business, directly or indirectly. In order to
ensure that our Responsible Business Agenda remains up-to-date in this context of constant
change, we conducted a double materiality analysis in 2022 (Chapter 6.2.3). Below we
present the macrotrends identified during the period, together with the sustainability
challenges identified for Navigator, as well as their relationship with the material topics and
our 2030 Agenda (Chapter 6.2.4).
A review of the main macrotrends and challenges identified in 2022 was conducted in early
2024, considering the global sustainability trends for 2024. It was concluded that in general
the macrotrends and challenges previously identified remain the same. However, work was
done to update each of the macrotrends and challenges in line with the current context, and
new risks and opportunities were identified.
11
Sustainability
challenges for
Navigator
5
Macrotrends
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Annual Report 2023 · Management Report 73
Macrotrends identified as relevant
PLANET AT THE LIMIT:
DEMOGRAPHIC CHANGE
TECHNOLOGICAL INNOVATION
DISRUPTION OF SOCIAL
COHESION
GEOPOLITICAL AND ECONOMIC
INSTABILITY
Existential threats to the Earth and
human life, biodiversity loss and
climate change all point to the
planet's limits.
These are joined by the scarcity of
resources, deforestation and
pollution, which accelerate
degradation of the environment and
the emergence of zoonotic diseases
(epidemics and pandemics), of
which Covid-19 is the most recent
example.
Increasing temperatures and the
imbalance in the terrestrial system
leading to more frequent and more
severe climate phenomena will
bring suffering and migration,
resulting in costs and economic
losses.
Increasingly severe water stress
may affect two thirds of the world
population by 20252, and generate
geopolitical conflicts over access to
water.
Soil and land degradation will have
a material impact on farming in
many regions.
Air quality will remain a concern in
many cities, with severe
consequences for public health.
Critical changes in terrestrial
systems have been identified by the
World Economic Forum (WEF) as
the second most severe global risk
within a horizon of 10 years.
The world's population is growing,
ageing and increasingly urbanised.
Demographic changes, increased
involuntary migratory flows and the
growth of megacities puts additional
pressure on natural resources.
Demographic factors are impacting
economic development, due to both
the ageing of the population, and
intergenerational differences.
The inversion of demographic
pyramids in some parts of the world
may lead to the failure of social
security systems and the need for
older generations to stay in work.
As power shifts from baby boomers
to millennials and Generation Z,
reflecting different experiences and
perspectives, companies will be
challenged to stay relevant in their
purpose, and to invest more and
take greater care of their human
capital, on which their ability to
compete depends.
New technologies, such as
digitisation, automation, Artificial
Intelligence (AI), Blockchain and
Bigdata will allow companies to
accelerate and expand their positive
impact on sustainable development
of the economy and society.
Key technologies in different areas -
from biotech to renewable energy -
will undergo exponential
development.
New technology has implications for
the future of work. New jobs will be
gained, but old jobs will be lost,
which entails learning new skills,
and refreshing the old.
Greater dependence on cybernetics
and data systems.
Added vulnerability to cyber
attacks. The risk of new levels of
data snooping and manipulation in
the service of profits and power.
The risk of growing digital inequality
in access to networks and critical
technologies.
According to the WEF, the risk of
disinformation and misinformation
is the most severe global risk in a
time horizon of 2 years.
Within a timeframe of 10 years, the
adverse effects of artificial
intelligence technologies is one of
the most severe global risks.
Increasing social divisions,
uncertainty and anxiety.
Increased inequality within and
between countries, together with
the erosion of trust in institutions, is
fuelling a wide range of protest
movements, and could potentially
lead to polarisation of domestic
politics, populist and nationalist
sentiment and authoritarian
regimes.
Feelings of anxiety, depress,
loneliness and stress, in response to
the pandemic and an uncertain
future, can undermine social
cohesion.
Rising inflation, loss of purchasing
power and structural deterioration
of job prospects and/or living
standards for people of working age
could lead to crises in employment
or livelihoods, and to the erosion of
employment rights.
Differences in access to technology
and digital skills increases the risk
of the gap between "rich" and
"poor", challenging social cohesion.
Geopolitical instability, economic
downturn, shifts in power and
consequent move away from
multilateralism.
Increased global tensions, through
geo-economic and military conflicts.
Trade tensions will probably remain
a feature of the geopolitical scene
for the rest of the decade.
The centre of gravity in the global
economy is shifting to Asia, but also
to Africa and Latin America.
Nationalisation of resources and
competition between states for
control of vital raw materials will
potentially become an increasingly
important factor in international
relations, with a consequent impact
on supply chains, which will tend to
shorten.
Higher interest rates, together with
a drop in earnings in real terms, are
leading to economic recession.
Economic recession, inflation,
erosion of social cohesion, public
debt and scarce manpower are the
main risks identified by Portuguese
business leaders in WEF’s 2023
Executive Opinion Survey.
Annual Report 2023 · Management Report 74
Challenges for Navigator
CHALLENGE
MAIN RISKS
MAIN OPPORTUNITIES
ASSOCIATED
MATERIAL TOPICS
OUR RESPONSE
Protect and value
biodiversity
Biodiversity loss is one of
the pressing global crises of
our age, and is regarded by
the World Economic
Forum (WEF) as one of the
most severe global risks for
the next ten years.
Wildlife and ecosystem
protection, conservation
and restoration have a
crucial role to play in
securing benefits in terms
of climate regulation,
availability of resources and
other environmental and
social services.
Alongside this growing
recognition of the
importance of Nature to
business, of its dependence
and impacts, new solutions
and partnerships have
emerged to halt biodiversity
loss (looking at the value
chain), to integrate financial
valuation of ecosystem
services and to promote
nature-based solutions.
• Restrictions on forestry
production /
unavailability of land to
increase forested area /
loss of area available for
eucalyptus production
(e.g. new uses)
• Forest fire risk (with
impact on loss of
productive area and
biodiversity)
• Changes to regulatory
framework on land use
(e.g. European Strategy
for Biodiversity)
• Strengthen the
sector's credibility and
reputation in order to
increase acceptance by
society
• Encourage suppliers to
adopt best practices
• Contribute to reduction
in number/intensity of
forest fires
• Complementary agro-
forestry projects,
conciliating production
forests with other
forms of land use
• Bioproducts
• Supply chain
management
• Responsible
governance
• Innovation,
technology and R&D
• Climate change and
CO
2
sequestration
• Biodiversity
conservation
• Circular economy
• Water management
• Sustainable forest
management
• Energy and raw
material
management
• Sustainable
management of
Navigator's forests
through certification
under FSC
®
and PEFC
schemes
• Programmes
supporting forestry
producers and
improvement of
eucalyptus forests
• Dissemination of good
forestry practices
through our own
channels and sector
events
• Action and resources
for fire prevention and
to support fire-fighting
• RDI activities and
investment in
bioproducts
• Forest renewal
activities
• Projects for forest
literacy and
biodiversity
conservation
• Establishing
partnerships
• Conservation and
monitoring activities
to which we are
committed in
connection with
Act4nature Portugal
Annual Report 2023 · Management Report 75
CHALLENGE
MAIN RISKS
MAIN OPPORTUNITIES
ASSOCIATED
MATERIAL TOPICS
OUR RESPONSE
Climate mitigation and
low carbon economy
Failure to take climate
action (mitigation and
adaptation) points again to
the need for greater
commitment and action in
this area.
Climate events will become
more frequent and more
severe (a “new normal”),
affecting where and how
people live and work, which
requires a greater focus on
adaptation strategies.
Political action is starting to
be taken on climate issues
around the world, along
with a stricter regulatory
framework in the European
Union.
The low-carbon economy is
at the heart of post-
pandemic recovery plans.
The development of new
technologies (e.g. carbon
capture solutions) will be
accelerated, new jobs will
be created and new energy
sources (e.g. hydrogen) and
new opportunities will be
explored
The COP28 agreement
establishes a transition to
gradually moving away
from fossil fuels in energy
systems by 2050. How to
put this commitment into
action on the ground will be
one of the main topics for
debate.
• Reduction of emission
limits (EU ETS – EU
Emissions Trading
System)
• Biomass ceasing to be
considered a
sustainable alternative
to fossil fuels
• Shortfalls in availability
of raw materials and
energy as a result of
price variations and
also disruptions to
supply chains
• Restrictions resulting
from the
regulatory framework
on raw materials
used to produce pulp
and paper
• Forest fire risk with
impact on increased
GHG emissions, and
loss of productive area
and biodiversity
• Restrictions on forestry
production /
unavailability of land to
increase forested area
/ loss of area available
for eucalyptus
production (e.g. new
uses)
• Substitution of fossil
fuels by renewable
fuels (e.g. biomass
and hydrogen)
• Investment in and/or
development of
business models
recognised as more
sustainable (in line
with European
Taxonomy)
• Process optimisation
and financial savings
from specific strategies
for each resource
• Investment in R&D
• Greater credibility
and improved
reputation of the
sector, increasing
acceptance by society
• Encourage suppliers to
adopt best practices
• Increase in revenues
due to greater demand
for products and
services with low GHG
emissions
• Bioproducts
• Supply chain
management
• Responsible
governance
• Innovation,
technology and
R&D
• Climate change
and CO
2
sequestration
• Biodiversity
conservation
• Circular economy
• Water
management
• Sustainable forest
management
• Energy and raw
material
management
• Company's Roadmap
for Carbon Neutrality
and decarbonisation
targets approved by
SBTi (Science Based
Targets Initiative)
• Sustainable forest
management
• Investment in systems
and technologies that
minimise
environmental impacts
and promote improved
energy efficiency
• Gradual elimination of
consumption of fossil-
based energy and
investment in
alternative and
renewable energy
sources (e.g.
photovoltaic solar,
biomass, green
hydrogen)
• Production of
renewable energy
• RDI activities and
investment in
bioproducts
• Analysis of positive
contribution of our
agroforestry assets as
a carbon sink
• Alignment with the
TCFD initiative and
European Taxonomy
Annual Report 2023 · Management Report 76
CHALLENGE
MAIN RISKS
MAIN OPPORTUNITIES
ASSOCIATED
MATERIAL TOPICS
OUR RESPONSE
Circular economy
Regulatory developments
and consumer pressure
relating to sustainable
production and
consumption, scarcity of
resources, supplier chain
volatility and the imminent
threat of climate change are
leading companies to
develop more circular
business models that
generate business value as
well as environmental
benefits.
There is also a growing
need to measure circularity,
using new tools, standards
and frameworks.
• Changes to regulatory
context for waste
management
• Impossibility of
reclassifying certain
wastes as by-products
(costs associated with
processing of waste)
• Changes in patterns of
consumption and
purchasing power of
users
• Restrictions resulting
from legal and
regulatory framework
in Portugal
• Lack of standardised
methods for
quantifying
environmental footprint
of products (for
example, metrics for
measuring circularity of
raw materials)
• Management of social
conflict over rival
claims to water
• Changes to regulatory
context on use
of water
• Increase rate of
circularity
• Strengthen
competitive position in
response to customer
and consumer
preferences
• Establishing new RDI
partnerships and
projects
• More efficient use of
water resources in
industrial and forestry
production processes,
using innovative
solutions
• Process optimisation
and financial savings
from specific strategies
for each resource
• Bioproducts
• Supply chain
management
• Creating
sustainable value
• Responsible
governance
• Customer
Management
• Community
relations
• Innovation,
technology and
R&D
• Climate change
and CO
2
sequestration
• Circular economy
• Water
management
• Sustainable forest
management
• Energy and raw
material
management
• Optimisation and
improvement of
industrial processes -
efficiency in use of
resources, processes
and treatment
systems
• Reclamation of waste
and reincorporation
of by-products in
Navigator processes
• Promoting industrial
symbiosis
• RDI activities and
investment in
bioproducts
• Establishing
partnerships
• Participation in
Circular Bioeconomy
Alliance platform
• Improving scientific
and technological
expertise in forest-
based circular and
digital bioeconomy
Annual Report 2023 · Management Report 77
CHALLENGE
MAIN RISKS
MAIN OPPORTUNITIES
ASSOCIATED
MATERIAL TOPICS
OUR RESPONSE
Sustainable
consumption
Growing consumer
awareness, activism and
demands, especially among
younger generations.
Demand for healthier and
more sustainable products,
openness to new
consumption models -
digital, shift from ownership
to sharing.
Consumers who are more
aware and demand
information that is clearer,
more transparent and
traceable.
Increased production of
packaging as alternative to
plastics (in particular, single
use plastics).
Emphasis on the role of
companies in raising
consumer awareness and
designing solutions which
are more sustainable and
competitive in terms of
costs.
• Changes in patterns of
consumption and
purchasing power of
users
• Reputational damage
and loss of Customer
loyalty
• Development and/or
expansion of goods
and services featuring
low carbon and
bioproducts
• Strengthen the
sector's credibility and
reputation in order to
increase acceptance by
society
• Changing patterns of
consumption due to
growing demand for
sustainable solutions,
with a smaller carbon
footprint, rewarding
companies with a
strong sustainability
profile
• Build stronger and
closer ties, through
direct communication
channels
• Bioproducts
• Supply chain
management
• Creating
sustainable value
• Responsible
governance
• Customer
Management
• Community
relations
• Innovation,
technology and
R&D
• Climate change
and CO
2
sequestration
• Biodiversity
conservation
• Circular economy
• Water
management
• Sustainable forest
management
• Energy and raw
material
management
• Products with forestry
certification label
and/or EU Ecolabel
• RDI activities and
investment in
bioproducts
• gKRAFT range
packaging products
furthering the
transition to more
sustainable solutions
• Innovative tissue
products:
o Amoos Naturally
Soft™
(unbleached
eucalyptus kraft
pulp)
o Amoos
Aquactive™
(produces soap
bubbles when
wetted)
o Amoos Air
Sense™ (with
floral fragrance
capsules)
o Amoos Calorie
Control™
(improved
capacity to absorb
food oils and
grease)
• Forest literacy
projects
Annual Report 2023 · Management Report 78
CHALLENGE
MAIN RISKS
MAIN OPPORTUNITIES
ASSOCIATED
MATERIAL TOPICS
OUR RESPONSE
Tech for Good
Covid-19 has once again
highlighted the importance
of technology and of
accelerating digitisation,
bringing about new ways of
working, socialising and
selling. This development
raises issues relating to
digital fairness and access
and other problems
associated with
technological advances.
Faster digital transformation
in order to improve
business resilience and
sustainability performance,
creating solutions for a
number of social and
environmental problems.
Financing opportunities for
companies to leverage the
technological revolution,
enabling them to invest in
decarbonisation, in the
bioeconomy, in mobility and
in digitising their processes
and ways of working.
• Risks resulting from
the use of artificial
intelligence
technologies, robotics
and IoT in industrial
processes
(cybersecurity)
• Lack of financial
support for R&D and
investment in
innovation
• Bioproducts less
economically
competitive than fossil-
based products
• Disinformation and
misinformation
• Development of new
technologies and
opportunities for
improving, expanding
and diversifying
business
• Investment in new
technologies for
improved
environmental, social
and governance
performance
• Increase in revenues
due to greater demand
for products and
services with low GHG
emissions
• Improvements in
analysis, processing
and interpretation of
ESG data and
information
• Bioproducts
• Innovation,
technology and
R&D
• Responsible
governance
• Climate change
and CO
2
sequestration
• Circular economy
• Water
management
• Sustainable forest
management
• Energy and raw
material
management
• New Digital
Technology Division
taking a broad
approach to topics
related to Industry
4.0 and digital
transformation in all
operational areas
• Investment in
systems and
technologies that
minimise
environmental
impacts and promote
improved resource
efficiency
• RDI activities and
investment in
bioproducts
• gKRAFT range
packaging products
• Innovative tissue
products
Annual Report 2023 · Management Report 79
CHALLENGE
MAIN RISKS
MAIN OPPORTUNITIES
ASSOCIATED
MATERIAL TOPICS
OUR RESPONSE
Investment in human
capital
People as one of industry's
most valuable assets. The
pandemic underlined the S
in ESG, with a particular
emphasis on Employee
well-being, health and
safety. It also accelerated
new ways of working and of
handling the relationship
between businesses and
their Employees (e.g. more
flexible, remote, integration
with working, personal and
family life).
In order to retain and
engage with Employees,
companies will have to
promote a better connection
between work and their
purpose, promote
opportunities for growth
and development and
create more diverse and
inclusive working models
and environments, in
particular to motivate
younger generations.
Sustainability is increasingly
more important for
Employees and applicants,
and for this reason it is
important to communicate
ESG strategy and impact
Greater attention paid by
companies, but also by
investors and financial
institutions, to detailed
information on human
capital.
• Waning capacity to
attract and retain
young talent
• Misalignment between
Employee and
company expectations
• Lack of clear policies
and goals in the field of
Diversity, Fairness and
Inclusion
• Increase in accidents
and occupational
diseases
• Reputational damage
• Improved work-life
balance
• Increased capacity to
attract and retain
talent
• Optimisation of
employer branding
processes, internally
and externally
• Increased investment
by leaders
in integrating and
developing their teams
• Responsible
governance
• Talent
management and
development of
human capital
• Health, safety and
well-being
• Providing
opportunities for
Employees to develop
their professional
lives and careers
• Creation of
customised
development plans
• Investment in training
and the options
offered by the
Learning Centre
• Promotion and
empowerment of new
leaders
• Nurturing the spirit of
enterprise
• Improved conditions
in terms of pay and
bonuses
• Benefits plans and
pension fund
• Mobilising Employees
around Company's
Purpose
• Promoting
employability and
attracting young
talent
• Resources for
providing safe
working conditions
• Occupational health
and preventive
medicine
programmes
• Industrial Forum
Annual Report 2023 · Management Report 80
CHALLENGE
MAIN RISKS
MAIN OPPORTUNITIES
ASSOCIATED
MATERIAL TOPICS
OUR RESPONSE
Future of work
Ongoing advances in
robotics, artificial
intelligence and machine
learning are launching a
new era of automation, as
machines start to rival or
surpass human
performance in various
working activities. Debate
about adapting people and
jobs to this new era, and
the skills of the future
The pandemic speeded up
the shift to digital, and this
has created a need to
upskill and prepare human
capital for new functions
and work processes.
• Waning capacity to
attract and retain
young talent
• Misalignment between
Employee and
company expectations
• Lack of clear policies
and goals in the field of
diversity, fairness and
Inclusion
• Risks resulting from
the use of artificial
intelligence
technologies, robotics
and IoT in industrial
processes
(cybersecurity)
• Improved work-life
balance
• Increased capacity to
attract and retain
talent
• Optimisation of
employer branding
processes, internally
and externally
• More investment by
leaders in integrating
and developing their
teams
• Development of new
technologies and
opportunities for
improving, expanding
and diversifying
business
• Talent
management and
development of
human capital
• Responsible
governance
• Creating
sustainable value
• Health, safety
and well-being
• Internal succession
mapping to ensure
sustainability at
different functional
levels in future
• Employee
development plans
• More flexible remote
working (part-time)
• Investment in training
and the options
offered by the
Learning Center
• Commitment to
creating digital skills
• Mobilising Employees
around Company's
Purpose
• Promoting
employability and
attracting young
talent
Annual Report 2023 · Management Report 81
CHALLENGE
MAIN RISKS
MAIN OPPORTUNITIES
ASSOCIATED
MATERIAL TOPICS
OUR RESPONSE
Resilient and
sustainable value
chains
The Covid-19 pandemic and
the imperative need for
economic recovery have put
the resilience of value
chains to the test and
added to the urgency of
examining their
sustainability. Difficulties
have been experienced in
importing raw materials and
exporting products, as a
result of successive
disruptions to supply chains
(including strikes,
shortages, protectionist
policies and other factors).
Stakeholders continue to
put pressure on companies
to improve management of
their supply chains, paying
special attention to respect
for human rights and the
environment. Expectations
of greater maturity in
programmes and initiatives
implemented by companies,
and of greater transparency
and improved assessment
of supply chain performance
in terms of sustainability.
Transition from soft law to
hard law, with increasingly
strict regulatory frameworks
holding companies liable for
their impacts on the value
chain.
• Shortfalls in
availability of
raw materials and
energy as a result of
price variations and
also disruptions to
supply chains
• Restrictions resulting
from regulatory
framework on raw
materials used in
producing pulp and
paper
• Process optimisation
and financial savings
from specific
strategies for each
resource
• Human rights violation
in supply chain (e.g.
child labour)
undermining
company's reputation
and image
• Shortcomings in due
diligence processes
for environmental and
social assessment of
suppliers
• Forest fire risk (with
impact on loss of
productive area)
• Restrictions on
forestry production /
unavailability of land
to increase forested
area / loss of area
available for
eucalyptus production
(e.g. new uses)
• Shorter supply chains
and industrial clusters
• Diversification of
Suppliers and raw
materials
• Strengthen the
sector's credibility
and reputation in
order to increase
acceptance by society
• Stronger ethics and
compliance practices
in the Company,
including adoption of
polices, training,
knowledge sharing,
and internal and
external audits (due
diligence)
of Suppliers on socio-
economic and
environmental
matters
• Encourage suppliers
to adopt best
practices
• Establishing new R&D
partnerships and
projects
• Supply chain
management
• Responsible
governance
• Community
relations
• Health, safety
and well-being
• Climate change
and CO
2
sequestration
• Biodiversity
conservation
• Circular economy
• Water
management
• Sustainable forest
management
• Energy and raw
material
management
• Code of Conduct for
Suppliers
• Strategy of
partnership with
Suppliers (e.g.
increasing energy,
resource and
transport efficiency,
looking for
alternatives to fossil-
based energy and
contributing to
decarbonisation
goals)
• Sustainable
management of
forests through
certification under
FSC
®
and PEFC
schemes
• Promoting chain-of-
custody certification
of all our wood
suppliers
• Programmes
supporting Forestry
Producers and
improvement of
eucalyptus forests
(e.g. “Clube
Produtores Florestais”
(Forestry Producers
Club))
• Dissemination of good
forestry practices
through our own
channels and sector
events
• Eligibility criteria for
supply of raw
materials
• Optimisation of
inbound wood flows
• Partnership with raw
material Suppliers to
encourage production
of energy from
biomass
• Commitment to
alternatives to road
transport (e.g. rail
and maritime)
• Payment of Suppliers
by confirming
(applicable only to
certain categories of
Suppliers)
Annual Report 2023 · Management Report 82
CHALLENGE
MAIN RISKS
MAIN OPPORTUNITIES
ASSOCIATED
MATERIAL TOPICS
OUR RESPONSE
Protection of
fundamental rights
The response of businesses
to Covid-19 and movements
such as #BlackLivesMatter,
#MeToo, has increased the
attention paid to human
capital. Companies have
come under scrutiny, from a
wide range of Stakeholders,
in relation to topics such as
unfairness, racism,
harassment or other types
of discriminatory practices.
Expectations concerning
respect for human and
employment rights are
broadened to include value
chains, on the light of
recent regulatory
developments (transition
from soft law to hard law).
More than just securing a
social license to operate,
companies will have to work
actively to build
relationships of trust and
create social value with
Employees and
Communities, and also
speak out and take action
against injustice.
Diversity as a competitive
factor - diversity, fairness
and inclusion programmes
and practices are being
reassessed and expanded.
Funds take greater interest
in social and governance
issues for ESG investments.
• Violation of human
rights envisaged in
Employee Code of
Conduct, undermining
the Company's
credibility, reputation
and image
• Human rights violation
in supply chain (e.g.
child labour)
undermining
company's reputation
and image
• Lack of clear policies
and goals in the field
of diversity, fairness
and Inclusion
• Increase in accidents
and occupational
diseases
• Reputational damage
• Limitation of social
license to operate
• Increased capacity to
attract and retain
talent
• Improved work-life
balance
• Establishing
partnerships with
local associations in
collaborative projects
to improve quality of
life for communities
• Increased
engagement with
Local Communities
(industrial and
forestry sectors)
• Improved well-being
for Employees and
local Communities
• Ensure
implementation of
responsible business
practices
• Stronger ethics and
compliance practices
in the Company,
• including adoption of
polices, training,
knowledge sharing,
and internal and
external audits (due
diligence)
of Suppliers on socio-
economic and
environmental
matters
• Supply chain
management
• Responsible
governance
• Talent
management and
development of
human capital
• Community
relations
• Health, safety and
well-being
• Responsible business
conduct, based on
ethics, responsibility
and transparency
• Codes of Ethics and
Conduct for
Employees and for
Suppliers
• Human Rights Policy
• Gender Equality Plan
• Whistleblowing
channel
• Working conditions
which are fair, safe
and promote
Employees' health,
well-being and
development
• Collective bargaining
instruments
• Investment in training
• Industrial Forum
• Signing up to UN
Global Compact
Annual Report 2023 · Management Report 83
CHALLENGE
MAIN RISKS
MAIN OPPORTUNITIES
ASSOCIATED
MATERIAL TOPICS
OUR RESPONSE
Participation in
adaptation of
regulatory framework
Regulation creates the
stable, predictable and fair
conditions on which
business depends in order
to invest, compete and
prosper. Companies must
support the design of
policies that provide
incentives for sustainable
transformation.
Business must adjust to
new European regulations
and new ways of dealing
with global changes.
Challenges such as climate
action, diversity, fairness
and inclusion, humans
rights, the fight against
greenwashing, among other
things, will be subject to
more consistent rules, and
companies, by working in
partnership, will be key to
this process.
In view of evolving and
increasingly strict
regulatory frameworks,
companies must be more
transparent, using their
advantage to shape
policies, regulations and
standards in order to
address the challenges of
sustainability in the long
term.
• Risk that regulatory
changes in Portugal, as
a result of political
decisions, relating to
tax, environmental or
economic matters, will
have a significant
impact, directly or
indirectly, on
Navigator's operations
and/or results
• Uncertainty about the
impact of policies
under the EU Green
Deal, such as the
European strategies for
forests, biodiversity,
emission transition
system, sustainable
products and European
Taxonomy
• Uncertainty about the
impact of regulations
associated with
European Taxonomy on
the perceptions
of capital providers
• Market opportunities
generated by the
policies under the EU
Green Deal may create
competitive
advantages for
companies that
manufacture and
market demonstrably
sustainable products
• Supply chain
management
• Creating
sustainable value
• Responsible
governance
• Climate change
and CO
2
sequestration
• Biodiversity
conservation
• Circular economy
• Sustainable forest
management
• Monitoring of the
most pressing topics
on the political
agenda in Europe,
Portugal and
Mozambique
• Advocacy initiatives
by the Public Affairs
Division in relation to
regulatory,
environmental and
social matters
• Collaboration on
research and issuing
technical reports
• Participation in sector
associations and
events, in Portugal
and internationally
• Organisation of
events, visits and
debates around topics
of structural interest
to the Company and
the sector
• Business Round Table
Annual Report 2023 · Management Report 84
CHALLENGE
MAIN RISKS
MAIN OPPORTUNITIES
ASSOCIATED
MATERIAL TOPICS
OUR RESPONSE
Stakeholder Capitalism
Importance of responding
to the needs of Companies'
different Stakeholders. In
contrast to the prevailing
model of maximising short-
term profits for
Shareholders, Stakeholder
Capitalism is based on
creating long term shared
value, considering not only
Shareholders, but also
Customers, Employees,
Communities and Suppliers,
among others.
Business model will be
redesigned to respond to
pressure from society and
markets and there will be a
growing need to apply new
metrics to assess impacts.
Companies must lead the
way in reinventing
capitalism to ensure that
the power of private
enterprise and competitive
markets can be harnessed
to support social,
environmental and business
prosperity in the long term.
• Reputational risks from
miscellaneous sources
(e.g. corruption,
human rights,
environmental
disasters, ...)
• Shortcomings in
procedures to assess
corruption risk in
operations
• Limitation of social
license to operate
(local communities and
Portuguese society)
• Uncertainty about the
impact of policies
under the EU Green
Deal, such as the
European strategies for
forests,
biodiversity, emission
transition system,
sustainable products
and European
Taxonomy
• Uncertainty about the
impact of regulations
associated with
European Taxonomy on
the perceptions of
capital providers
• Build stronger and
closer ties, through
direct communication
channels
• Stronger ethics and
compliance practices,
including policy-
making, empowerment,
sharing of knowledge,
and internal and
external audits
• Strengthening
corporate credibility
and reputation by
focusing on ethical
issues, and not merely
on compliance with
laws and regulations
• Ensure implementation
of responsible business
practices
• A more robust
investment policy,
including climate risks,
costs associated with
carbon emissions,
analysis of social and
environmental impacts
of projects, and post-
implementation
monitoring
• Establishing
partnerships with local
associations in
collaborative projects
to improve quality of
life for communities
• Increased engagement
with local Communities
• Increase in revenues
due to greater demand
for products and
services with low GHG
emissions
• Market opportunities
generated by the
policies under the EU
Green Deal may create
competitive advantages
for companies that
manufacture and
market demonstrably
sustainable products
• Supply chain
management
• Creating
sustainable value
• Responsible
governance
• Talent
management and
human
development
• Customer
Management
• Community
relations
• Health, safety and
well-being
• Navigator's Purpose
• 2030 Responsible
Business Agenda
• Sustainability
governance structure
with involvement of
external Stakeholders
(Sustainability Forum,
Environmental Council
and Community
Monitoring
Committees)
• Stakeholder
communication and
engagement
mechanisms
• Finance for
sustainable
development
• Sharing value with
Stakeholders
• Responsible business
conduct, based on
ethics, responsibility
and transparency
• Reporting of
information and
internal reflection on
WEF Stakeholder
Capitalism metrics
• Signing up to UN
Global Compact
Annual Report 2023 · Management Report 85
6.2.3. Double Materiality
GRI 3-1, 3-2
ESRS IRO-1
We have updated Navigator's material topics in order to align our approach with the current
global situation. We therefore conducted a double materiality exercise in 2022, anticipating
the transposition into Portuguese law of the Corporate Sustainability Reporting Directive of the
European Commission, and also taking into account the requirements of the new GRI
Universal Standards (Global Reporting Initiative), the transition to which had already started
in The Navigator Company's report of the previous year.
The methodology used was based on the guidelines published by EFRAG (European Financial
Reporting Advisory Group), available at the date the process started. This involved two
distinct analyses, one of the external impacts of Navigator's activities (inside out perspective -
materiality of impact), and the other of the risks and opportunities resulting from the
external context, which affect or may affect Navigator's generation of value (outside in
perspective - financial materiality).
The starting point for this exercise was the detailed analysis conducted from 2019 to 2020,
involving at that time more than 540 Stakeholders, both internal and external, with a process
of strategic reflection and with an analysis of macrotrends and business challenges.
Review of the topics entailed a process in four stages, involving more than 50 people, internal
and external, specialists in their occupations and businesses, as well as the Executive Board
and an external team of experts on sustainability issues.
Impacts, risks and opportunities were identified over the course of the listening process,
and then assessed, using a specific methodology, in order to establish their
relevance/significance.
The findings of these two analyses (materiality of impact and financial materiality) were cross-
referenced in a matrix format, giving rise to a list of topics which was calibrated by the
Executive Board in the light of Navigator's strategic ESG priorities.
Navigator's 2030 Agenda (Chap. 6.2.4) has been adjusted to reflect this strategic review and
to provide a framework for managing, monitoring and reporting the Company's performance
on the current material issues.
15
Material topics
6
Strategic Issues
9
Relevant aspects
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Our double materiality process
Annual Report 2023 · Management Report 87
As a result of the double materiality process, 15 material topics were identified, of which 6 topics are considered strategic for
Navigator and 9 topics are considered relevant.
Strategic Issues
• Includes the materials topics which represent a strategic priority for the Company.
• These topics are closely connected to our business model and are fundamental for our
development.
• They are the issues that require the most attention and focus on action.
Relevant aspects
• Includes topics relevant to creating value in the medium and long term.
• Most of them were already included in our 2030 Agenda and were being addressed through the
development of policies, setting of targets, management of specific projects and other
measures.
• They correspond to the issues to monitor and manage in connection with our activities and 2030
Agenda.
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6.2.4. Our 2030 Agenda and Roadmap
GRI 2-22, 2-23, 2-24
ESRS SBM-1, SBM-3, MDR-M, MDR-T
Our 2030 Responsible Management Agenda, anchored in the concept of “Creating Value Responsibly”, was designed with
the aim of increasing The Navigator Company's positive contribution, in the long term, creating value and sustainable growth in a
changing world.
At The Navigator Company we have embraced management based on Ethics, Responsibility and Transparency. In fulfilment of our
purpose - centred on people, their quality of life and the future of the planet - we are responsible for forest-based products that
contribute to sustainable development and to the well-being of society, in alignment with the United Nations 2030 Agenda
(Chapter 6.2.5).
In view of the challenges and opportunities facing the whole world, in the years up to 2030, our strategy is based on a governance
structure which seeks to achieve economic success, in a fair and balanced way, responding to the interests of our Shareholders
and encouraging them to cooperate (Chapters 3.2, 6.2.1, 6.2.6).
We have accordingly mapped out a position that seeks to boost value creation - maximising our performance, contributing to
the resilience of our business and our corporate reputation and image, and paving the way for sustainability to feature as a
strategic competitive advantage (Chapters 3.1, 5).
To ensure that the Company's efforts remain focused on areas where it can have the greatest impact, we have conducted a
double materiality analysis (Chapter 6.2.3) and in the light of the findings we last year updated our 2030 Agenda. It is now
organised around two strategic action areas, reflecting the two dimensions of our purpose, People and the Planet.
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At Navigator we believe it is essential to have a long-term plan of action that points us towards honouring the commitments set
out in our 2030 Agenda. To achieve this, we have given our aspirations material form in the 2030 Roadmap - a tool that enables
the Company to steer and monitor the course it takes over time, guiding the creation of sustainable value.
Following on from the double materiality analysis, important changes were made to the Roadmap. Our 2030 Roadmap now
consists of 21 commitments, defined through consensus with several sustainability key users in The Navigator Company's
different business areas. These 15 commitments are joined by a series of goals that that we believe have the potential to generate
a significant impact in the priority areas of our 2030 Agenda.
It is stressed that, as a corporate management tool, the Roadmap is not static, and so an annual review is usually conducted
which also results in fine tuning of some of the goals established, in line with possible new capital projects undertaken by the
Navigator Group.
At present, in keeping with previous reporting exercises, the commitments and goals of the 2030 Agenda and Roadmap still refer
this year to the group's activities in Portugal. This will be reviewed in the years ahead, with a view to integrating the other
geographical regions.
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2030 ROADMAP
Below we present our 2030 Roadmap, indicating Navigator's progress in Portugal on each goal (Status 2023) and also where it links up with the content of this
report. In addition, we announce the new goals and interim targets for the new annual cycle.
For more detail about performance in 2023, please consult Annex 10.1.
The following key should be considered:
In progress, can be brought forward
In progress, as planned
In progress, with downward tendency, reflecting performance of the past two years
FOR SOCIETY: GROW
Commitments
Goals
Status in
2023
Location
Develop sustainable
bioproducts, reducing
dependence on fossil
resources and working
towards a decarbonised
economy.
Develop new cellulose materials and composites, which are recyclable and biodegradable.
Chap. 6.2.2
Research and
innovation in the
forest-based
bioeconomy
Develop biofuels, bioplastics and biochemicals from waste forestry biomass.
Promote scientific and
technological co-creation in
the field of the bioeconomy
and bioproducts.
Strengthen partnerships with Universities and Technology Centres in Portugal and abroad.
Promote advanced training, in collaboration with universities: 30 doctorates by 2030
Promote registration of intellectual property: 50 patents by 2030.
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Promote projects on a co-creation basis with external organisations - with a view to tapping the
economic value of knowledge generated through R&D: 15 projects completed by 2030.
Develop adaptive forestry
practices, from a climate
change perspective.
Develop genetically improved clones and seeds, with gains of 30-50% in yields and resilient to climate
change.
Propose biological solutions for combating the main diseases and pests in Portugal's eucalyptus forests.
NEW COMMITMENT
Develop packaging
papers with greater
mechanical
strength.
NEW GOALS
Develop products for the packaging sector, alternatives to single use plastics, with barrier properties,
using sustainable solutions.
Develop functional and distinctive tissue products for the area of hygiene and health.
Promote development and
upskilling of human capital
in line with the Company's
present and future needs.
Reach 80% of Employees with development plans customised to their needs and professional plans, in
alignment with Navigator's succession needs.
Chap. 6.5.1.
Talent
management and
development of
human capital
NEW GOAL:
Create awareness in teach concerning good ESG practices and the commitment to
sustainability by 2026.
NEW INTERIM TARGET:
Conduct periodic awareness raising and provide training to 80% of Employees by 2026.
Contribute to the skills and
employability of young
people in the regions where
we operate.
Have active partnerships with educational institutions in all regions where we operate in Portugal,
including curricular and vocational internships, as well as participation in teaching activities, events and
fairs.
Promote an inclusive
organisational culture able
to integrate internal and
external challenges.
Monitor on a continuous basis the main motivational stimuli for Employees to arrive at more
appropriate management practices, policies and processes implemented.
Provide a safe and healthy
environment for Employees,
ensuring their well-being.
Achieve the Zero Accidents Target through continuous improvement in safety, with the 2021-2025 OHS
Strategy:
• Frequency index < 2 in 2030 (internal and external Employees).
Chap. 6.5.2
Health, safety
and well-being
REFORMULATED INTERIM TARGET:
Achieve Frequency index of = 4 in 2024.
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Develop the Occupational Health programme up to 2030:
• Work Ability Index (WAI): 45% in 2030;
• Assessment of Employee satisfaction with programme > 95%.
Develop the Ergonomics Action Area: 100 workstations redesigned by 2030.
NEW GOAL
Provide training courses on a continuous basis in OHS in forestry operators for service
providers, suppliers and operators, aiming to provide more than 600 hours each year.
Engage with national,
international and local
Community institutional
Stakeholders, listening to
their expectations and
aligning them with
Navigator's strategy and
needs.
Hold 10 events each year for interaction with representatives of relevant Stakeholder groups around
the country or internationally, or five meetings of the Community Monitoring Committees in the areas
around the Aveiro, Figueira da Foz, Setúbal and Vila Velha de Ródão industrial units.
Chap. 6.2.1
Sustainability
Governance
REFORMULATED
COMMITMENT
Develop Community
relations, promoting
knowledge transfer
and public
awareness of the
economic, social and
environmental
importance of
forests.
Run Forest Literacy initiatives for primary school children, adolescents and adults, in order to
contribute to better knowledge of Portugal's forests, and their environmental, social and economic
importance, through the “Dá a Mão à Floresta” (Give the Forest a Hand), My Planet and Florestas.pt
projects.
• No. initiatives/year (digital and in-person): 10.
Chap. 6.5.3
Community
relations
• No. children reached/ year: 20 thousand.
• No. teenagers and adults reached/year: 40 thousand.
REFORMULATED GOAL
Consolidated Forestry Producers project, promoting and disseminating technical information
about forestry production, helping to share best practices, by 2030.
• No. initiatives/year (digital and in-person): 10.
• No. forestry producers reached/year: 10 thousand.
Annual Report 2023 · Management Report 95
NEW INTERIM TARGETS
• Hold 4 Forestry Producers Meetings by 2025.
• Secure 100 new club members by 2025.
Implement “Floresta do Saber” (Forest of Knowledge) project, in partnership with Calouste Gulbenkian
Foundation
Develop the Florestas.pt platform.
REFORMULATED GOAL
Ensure the e-globulus platform reaches more Portuguese forestry producers and provides
effective support.
Consolidate the Biodiversity By The Navigator Company project.
NEW GOAL
Launch the Navigator “Clube Produtores Florestais” (Forestry Producers Club).
Interim targets:
• Establish 4 partnerships by 2025.
• Raise the profile of Navigator's biodiversity conservation strategy by 2025 with urban
adults and Portuguese NGOs.
NEW COMMITMENT
Integrate ESG
concerns into
Navigator's risk
management.
NEW GOALS
Update risks and opportunities analysis in line with the sustainability reporting directive,
integrating them into internal risk control processes, by the end of 2024.
Chap. 3.3 Risk
management
Monitor ESG-related risk mitigation measures in 2024.
NEW COMMITMENT
Ensure that
investment and
sustainable finance
policies incorporate
ESG criteria.
NEW GOALS
Achieve an ESG finance ratio of 70% or more by 2030.
Chap. 5. Creating
sustainable value
Ensure that the Net Debt/EBITDA stays below 2.0x (ongoing);
Continue with the policy of ESG investment in the management of Pension Fund assets,
seeking to ensure that investments take a sustainable and responsible approach, in addition
to applying traditional financial criteria (ongoing).
NEW COMMITMENT
Expand the range of
suppliers with
assessments on ESG
criteria.
NEW GOALS
Assessment of ESG performance (decarbonisation, water management and respect for human
rights) by materially relevant Suppliers
24
by 2025.
• 100% for suppliers of chemicals and packaging.
• 80% for providers of logistics and transportation.
Chap. 6.6.4
Supply chain
management
24
Materially relevant suppliers – accounting for around 80% of total spend on chemicals and packaging. Materially relevant suppliers – accounting for around 80% of the transport volume (in numbers).
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Promote financial assessment of materially relevant Suppliers, on an annual basis, in order to
ensure the sustainability of Navigator’s supplies.
NEW COMMITMENT
Promote
sustainability
practices along the
Suppliers Chain.
NEW GOALS
100% of new materially relevant contracts covered by Navigator’s Code of Conduct for
Suppliers by 2026
Establish a programme to support our Suppliers in developing plans for decarbonisation,
water management and respect for human rights, by 2026.
Promote partnerships for use of more sustainable means of transport (own and Suppliers’) by
2026.
NEW COMMITMENT
Cultivate lasting
relations with
Customers through
active listening and
through joint
initiatives to
respond effectively
to their needs.
NEW GOAL
Maintain or increase Customer Satisfaction (CSI).
• UWF: CSI> 90% by 2030.
• Packaging: CSI target to be set after first questionnaire in 2025.
• Tissue: CSI> 70% by 2030.
• Pulp: CSI> 63% by 2030.
Chap. 6.5.3
Customer
Management
NEW COMMITMENT
Increase number of
products with
forestry certification
label or EU Ecolabel
NEW GOAL
Maintain or increase sales of products with environmental seal (Ecolabel or FSC or PEFC)
• UWF: > 70% by 2030.
• Packaging: > 60% by 2030.
• Tissue: > 99% by 2030.
• Pulp: > 80% by 2030.
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FOR THE CLIMATE AND NATURE: ACT
Commitments
Goals
Status in
2023
Location
Promote efficient use of resources, minimising our
ecological footprint.
Cut specific use of water (m
3
/t and product) in industrial operations by at
least 33% by 2030 (baseline: 2019).
Specific use in baseline year: 22.4 m
3
/t
Chap. 6.4.4
Water
consumption
Propose solutions that make it possible to improve efficiency in use of water in
the industrial process.
NEW GOALS
Reduce by 10% the organic load in Navigator's industrial effluents by
2030, in relation to 2022 (measured in kgCQO/t output)
Study the potential for reducing water consumption in the Nurseries.
Monitor impact of production forests on water management.
Optimise energy intensity, year after year.
Chap. 6.4.2
Climate change
Propose solutions that make it possible to improve efficiency in use of wood in
the industrial process.
Chap. 6.45 Use
of resources and
circular economy
REFORMULATED COMMITMENT
Ensure that all wood is obtained from credible
sources (FSC® or PEFC certification schemes,
or controlled origin).
REFORMULATED GOAL
Ensure that the Company’s wood consumption include no less than
80% certified wood by 2030.
Chap. 6.4.3
Sustainable
forestry
management and
conserving
biodiversity
Promote certification of the chain of custody of all our wood Suppliers by
2030.
Ensure sustainable use of soil and forestry resources,
including biodiversity.
Help reduce rural fires, seeking to ensure that the burned area under
Navigator's management stays below 1% each year.
Create positive impact on (or net gain in) biodiversity by taking action in
keeping with commitments made by Navigator through act4nature Portugal.
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NEW GOAL
Ensure that the stock of CO
2
sequestered in the
forest holdings under Navigator's management
does not fall by more than 10% in relation to
2022 (baseline year), by 2030.
Chap. 6.4.2
Climate change
Promote circular bioeconomy, prioritising R&D
solutions.
Achieve by 2030 a rate of waste disposal in industrial landfill of less than
10%.
Chap. 6.45 Use
of resources and
circular economy
Develop sustainable applications and added value for by-products from
industrial process (sludges, ash and other inorganic waste).
Invest in low carbon solutions leading to carbon
neutrality.
Cut direct EU ETS CO
2
emissions from industrial complexes by 86% by 2035
(baseline: 2018)
25
.
Emissions baseline year: 774,464 t CO
2
Chap. 6.4.2
Climate change
Cut scope 1 and 2 GHG emissions by 63% by 2035 (baseline: 2020).
Emissions baseline year: 937,710 t CO
2
e
26
Cut scope 3 GHG emissions by 37.5% by 2035 (baseline: 2020).
Emissions baseline year: 958,266 tCO
2
e
27
Use 80% renewable energy in total consumption of primary energy by 2030
(baseline: 2018).
25
Emissions reported under EU ETS (European Emissions Trading Scheme).
26
The emissions value for the baseline year is in accordance with the figures submitted to and approved by SBTi in 2022. In order to calculate performance on the target to reduced Scope 1+2 emissions, in keeping
with the baseline defined for SBTi, we have excluded emissions associated with fluorinated gases, own fleet, CH
4
and N
2
0 and fertilisers, which represent approximately 7% of the inventory.
27
Calculation of performance on the target for reduction of scope 3 emissions, in keeping with the baseline defined for SBTi, Category 1 is considered, excluding emissions associated with the acquisition of PCC, pulp,
services, wood and waste forestry biomass. We also consider categories 3, 4, 9, emissions relating to processing of pulp into UWF and tissue (Category 10) and 50% of the emissions associated with landfill disposal
(category 12).
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6.2.5. Contribution to SDGs
GRI 2-22, 2-23, 2-24
ESRS SBM-1
At The Navigator Company we are committed to taking an active part in the United Nations 2030 Agenda and to making the
Sustainable Development Goals (SDGs) a reality.
In 2023 we conducted a review of the 2030 Agenda and Roadmap, in the light of progress on implementation during the first
three years (Chapter 6.2.4), and on the basis of the findings of the double materiality analysis (Chapter 6.2.3), involving
reassessment/identification of SDGs, the respective targets and contributions.
This process enabled us to identify three levels of contribution, depending on the degree of influence that the Company has
over the success of these global goals. The SDGs to which we contribute have been organised into the following categories:
a. Core: strategically relevant for the Group - they demonstrate the strong connection between its business activities and the
areas where it can generate a positive impact.
b. Supportive: direct or indirect contributions resulting from the Group’s sustainability approach, in particular
actions/programmes under way internally and/or arising from programmes to support the Group’s core activities.
c. Local: direct or indirect contributions resulting from the sustainability approach taken by individual Group companies,
which are aligned with the local context of the geographical regions where they operate, and which add to the contributions
mapped out for the core and supportive SDGs. In connection with this, attention is drawn to the contributions of the Social
Development Programme being pursued by Portucel Moçambique.
In total we identified five Core SDGs, which are strategically relevant to the Company and present a strong connection between
our activities and the areas where we can generate a positive impact.
Navigator held up as an example of good business practice
Target 12.6
In recognition of our 2030 Agenda and contributions to SDGs, Navigator was again singled out as an example of good business
practice, in the published findings of the Sustainable Development Goals Observatory (Portuguese Catholic University), in
which The Navigator Company is featured for the second year running.
The processes for integrating the SDGs into business strategies refer to cases which illustrate procedures designed to
incorporate and coordinate the SDGs and the business strategy. A clearly defined business strategy is based on sound strategic
considerations, measurable commitments and objectives, defined timeframes and continuous monitoring of progress. This
entails integrating sustainable practices into our core business through structured processes that take in operations, culture,
innovation and communication. Below we highlight the following examples of Navigator Good Practices in the categories:
structuring of case studies relating to SDGs and communication of core case studies to the business.
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CORE SDGs
Promote inclusive and
sustainable economic
growth, full and
productive employment
and decent work for all.
Build resilient
infrastructure, promote
inclusive and
sustainable
industrialization and
foster innovation.
Ensure sustainable
consumption and
production patterns.
Take urgent steps to
combat climate change
and its impacts.
Protect, restore and
promote sustainable use
of terrestrial
ecosystems, sustainably
manage forests, combat
desertification, halt and
reverse land degradation
and halt biodiversity
loss.
Targets
8.1, 8.2, 8.3, 8.4, 8.5,
8.6, 8.7, 8.8
Targets
9.2, 9.4 and 9.5
Targets
12.2, 12.4, 12.5,
12.6 and 12.8
Targets
13.1 and 13.3
Targets
15.1, 15.2, 15.3,
15.5 and 15.8
OUR CONTRIBUTION
Navigator is working to be
a top employer, seeking to
create a fairer, healthier
and safer workplace for all
its Employees.
The Company’s relationship
with local Suppliers and
producers contributes to a
stronger local economy and
more resilient
Communities.
We are committed to
technological modernisation
and innovation.
We invest in efficient use of
resources, as well as in
innovation and technology,
striving to uncouple
economic growth from
degradation of the
environment.
Navigator seeks to
contribute to sustainable
development by boosting
scientific research and
improving its technological
capabilities.
Investment in development
and implementation of
innovative forest-based
solutions and products, and
in improving forestry
practices, helping to
promote a circular and low-
carbon bioeconomy.
Navigator’s ambition is
based on the collaborative
spirit it shares with its
partners.
We develop sustainable
bioproducts, reducing
dependence on fossil
resources and working
towards a decarbonised
economy.
We invest in improving the
available technologies and
solutions for minimising
Navigator's environmental
impacts, such as renewable
energy, efficient and
circular use of resources,
reduction of water use and
waste recovery.
We work towards circularity
through efficient use of
resources.
We respond to the
expectations of increasingly
well-informed and
demanding consumers,
ensuring not only
sustainable production of
their existing products, but
also new products,
products of distinctive
quality, produced from
renewable raw materials.
We assess the real and
potential impacts of
climate-related risks and
opportunities on our
businesses, strategy, and
financial planning.
We strengthen the
resilience of forests, the
source of raw material, so
that they can perform the
vital function of carbon
sequestration. We are also
aware of the impact that
developments in forestry
assets may have on
business, in particular on
the availability of
resources.
The Company’s role in the
transition to a low-carbon
economy entails a
commitment to a 63%
reduction in scope 1 and 2
GHG emissions by 2035, in
relation to 2020, and a
37.5% cut in scope 3 GHG
3 emissions over the same
period; these targets have
been approved by SBTi. We
are also involved in
investing in renewable
sources, such as biomass
and solar.
We develop specific
educational programmes,
such as:
• “Floresta do Saber”
(Forest of Knowledge)
• “Dá a Mão à Floresta”
(Give the Forest a
Hand)
• My Planet
• Florestas.pt
Navigator is responsible for
management of vast forest
holdings in mainland
Portugal (1.2% of the area
of mainland Portugal),
100% certified under the
FSC
®
and PEFC schemes.
Practices promoting long
term yields and resilience
are built into the
management model,
ensuring at the same time
that ecosystem services
and natural capital are
conserved.
We work on ecological
restoration and soil
conservation, promotion of
protected agro-forestry
habitats, and conversion of
inappropriate production
forests and reforestation
with native species (e.g.
Zambujo reCover Project).
We follow a forestry
management model that
entails efforts to eradicate
invasive species.
We implement steps to
combat desertification and
reduce erosion, for example
by disseminating good
practices in conservation
farming, and by raising
community awareness of
environmental issues.
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SUPPORTIVE SDGs
Ensure healthy lives and
promote well-being for all, at
all ages.
Ensure inclusive and equitable
quality education and promote
lifelong learning opportunities
for all.
Achieve gender equality and
empower all women and girls.
Ensure availability and
sustainable management of
drinking water and sanitation
for all.
Targets
3.3, 3.4 e 3.8
Targets
4.4 and 4.7
Targets
5.1, 5.4, 5.5
Targets
6.1, 6.3, 6.4, 6.5 and 6.6 and
6.8
OUR CONTRIBUTION
Preventive measures and
monitoring of Employee health, as
part of the Occupational Health
Programme in Portugal and the
Preventive Medicine Programme in
Mozambique.
The Occupational Health
Programme, which seeks to
contribute not only to physical well-
being, but also to mental health
and social welfare, with
personalised help from
psychologists, social welfare
officers and other specialities.
The Preventive Medicine
Programme permits early
identification of health issues,
leading to advice on treatment and
recommendations for a better state
of health.
One of the main priorities of the
Social Development Programme in
Mozambique is to improve the
health and well-being of the
Communities in areas where the
Company operates. Steps are
taken to improve the quality of
water for human consumption and
to invest in improving healthcare
facilities, which has included
investment in the new surgical
block at the Ile Hospital.
We consistently contribute to and
invest in the skills and
employability of young people,
especially in the regions where the
Navigator Group operates.
Attracting and developing young
people through vocational
internships.
Family welfare support for
employees, through award of study
grants.
Specific educational programmes,
such as “Floresta do Saber” (Forest
of Knowledge) and “Dá a Mão à
Floresta” (Give the Forest a Hand).
We have established the Equality
Plan and the governance model for
diversity, fairness and inclusion.
We support GirlMove Academy, a
project that seeks to empower
young women and train them for
leadership.
In Mozambique, with the
involvement of the International
Labour Organisation, we have
started a gender study in the
country’s wood processing sector,
in order to identify opportunities
for employment and decent work
for women in companies in the
sector.
We have developed the Water Use
Reduction Programme (WURP).
We invest in technologies that can
reduce water consumption, such as
systems for reusing water and
treating effluents. We carry on R&D
activities relating to forestry
practices, aiming to conserve water
in the soil, and we search for
solutions (genetic materials and
practices) that can bring greater
resilience to water shortages.
Portucel Moçambique has a Water
Quality Monitoring Protocol,
designed in partnership with RAIZ
(with an operational approach). As
part of the Social Development
Programme in Mozambique, we
have worked on a plan for drilling
and repairing water boreholes,
bringing access to drinking water
to a large number of people in the
different Communities in our
operational areas. We conduct
tests of the quality of water for
human consumption, ensuring
access to drinking water for a large
number of families.
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Ensure access to affordable,
reliable, sustainable and
modern energy sources for all.
Making cities and communities
inclusive, safe, resilient and
sustainable.
Promote peaceful and inclusive
societies for sustainable
development, provide access to
justice for all and build
effective, accountable and
inclusive institutions at all
levels.
Strengthen the means of
implementation and revitalize
the global partnership for
sustainable development.
Targets
7.2 and 7.3
Targets
11.4, 11.A, 11.B
Targets
16.5, 16.6 e 16.7
Targets
17.16 and 17.17
OUR CONTRIBUTION
In Portugal, Navigator has
positioned itself as the leading
producer of renewable power from
biomass, producing approximately
37% of all electricity generated in
Portugal from this source (figures
for 2023).
We invest in producing renewable
energy, in particular using
photovoltaic solar technology and
installing panels in our industrial
complexes.
Approximately 80% of the primary
energy used in our production
processes is from renewable
sources.
We are running a Corporate
Programme for Energy Efficiency at
Navigator's industrial units.
Navigator contributes to creating
employment in the rural areas
where it operates and to a stronger
local economy.
We pursue dialogue and
collaboration with Communities,
seeking to respond to their needs
and concerns. The Community
Monitoring Committees are one of
the procedures for direct
interaction that Navigator uses for
this purposes. This initiative
enables us to address topics such
as the environmental and social
impacts of the Company’s
operations, and we implement
projects with the potential to
improve the well-being and quality
of life of local Communities. A
prime example of this, in 2023,
was the collaboration at the Aveiro
Industrial Complex in the process
of clearing obstructions from the
River Vouga.
In addition to this forum for
interaction, we also have special
programmes designed to foster
lasting commercial relations, aimed
at industries located essentially in
rural areas. Examples of these are
the Forestry Producers Project and
the “Clube Produtores Florestais”
(Forestry Producers Club).
We also contribute to protecting
and safeguarding cultural heritage
in the areas under our
management, as part of our
sustainable and holistic
management of forest holdings.
As part of its compliance system,
Navigator has an array of policies
and instruments designed to
prevent corruption.
We have a sustainability
governance structure which entails
engagement with internal and
external Stakeholders and sets out
to promote effective, responsible
and transparent management. Our
Sustainability Forum and the
Environmental Council are
important components of this
approach. In our dealings with local
Communities, the Community
Monitoring Committees play an
important role, whilst in
Mozambique, we deploy
Community Liaison Officers.
We work in partnership with a
number of organisations, and
regard this as essential for
attaining our goals and for our
approach of creating and sharing
knowledge, training, innovation
and generating value. Our
partnerships are pursued through a
number of structures, projects and
programmes, most notably the
Sustainability Forum and the
“Clube Produtores Florestais”
(Forestry Producers Club).
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LOCAL SDGs
End poverty in all its forms, everywhere.
End hunger, achieve food security, improve
nutrition and promote sustainable
agriculture.
Reduce inequalities within and between
countries.
Target
1.5
Targets
2.3 and 2.4
Targets
10.1,10.2
Portucel Moçambique operates in rural areas
characterised by a degree of social vulnerability,
and so investment in forestry operations has
brought extra income to Communities and
provided technical training that has contributed to
skill levels in the employment market. In
addition, the Programme seeks to combat
poverty in Communities through a variety of
projects relating to local procurement/hiring and
promoting agriculture as a source of income.
A central priority of Portucel Moçambique's
Social Development Programme is food security,
and one of the main ways it has sought to
promote this is through support for
conservation (more sustainable) farming. A
number of activities have contributed not only
to improving food security and diversity, but
also to sustainable farming output and
practices: agricultural extension projects
(improved seeds, conservation farming
techniques), barns (minimising post-harvest
losses), school vegetable gardens scheme,
community environmental awareness raising,
addressing topics such as uncontrolled burns,
combating erosion, and improving conservation
farming techniques. All this has led to improved
yields and made farming more resilient to
climate phenomena.
Portucel Moçambique contributes to growth in
income and improved welfare for the more
disadvantaged, through its Social Development
Programme, and also through the employment
generated by its operations. These jobs are
available in rural areas, where the population is
more vulnerable and has poorer access to basic
infrastructures.
6.2.6. Stakeholder engagement
GRI 2-29
ESRS SBM-2, S1-2, S2-2, S2-5, S3-2, S4-2
The Navigator Company's responsible management strategy is designed to generate economic, social and environmental impact
along the value chain, listening to and aligning the expectations of our Stakeholders with Navigator's strategy and needs.
Our aim is to create long term value for the 10 relevant Stakeholder groups with which we have dealings. The Stakeholder groups
were identified at an internal workshop, with members of the Executive Committee, as part of the materiality analysis process in
2015. This mapping has been undergoing review, to keep it up to date and to ensure integration of the expectations identified in
relation to the issues considered most relevant to the Company's future, and there was no change in 2023 to the Stakeholder
groups identified in relation to the previous report.
We use various forms of communication and engagement, and the channels and frequency vary depending on the
Stakeholder group and the needs identified. In this way we seek to consolidate trusting relationships and our social license to
operate, increasing transparency and identifying possible risks and opportunities.
Communication channels used for all groups include email and the Company's website and social media, as well as the
whistleblowing channel (Chap. 6.5.1).
The formal mechanisms for direct interaction with different Stakeholder groups include the bilateral communication channels
established, such as the Industrial Forum, and interactions with workers’ representatives (Chapter 6.4.1); the Community
Monitoring Committees (Chapter 6.4.3) and the Community Liaison Officers who help to build a close relationship between
Annual Report 2023 · Management Report 104
the Company and local Communities in Mozambique (Chapter 6.4.3) - initiatives which are crucial for understanding the concerns
of Communities and seeking to respond to their needs.
Navigator's Sustainability Forum (Chapters 6.2.1, 6.4.3), an internal sustainability governance body, also provides an important
arena for dialogue. Significantly, its members took part in the double materiality process (Chapter 6.2.3) and annual sessions are
organised with the participation of national and international experts, to discuss subjects of relevance to the Company's business
and to our Stakeholders.
Navigator also has an Environmental Council, with members drawn from academe, which is responsible for monitoring the
Company’s environmental performance (Chapter 6.2.1), and holds regular meetings over the year.
Mindful of the need for continuous improvement and of our purpose of sharing our knowledge and resources with society, we have
made several information channels available to local Communities (Chapter 6.4.3) and forestry producers (Chapters 6.3.3, 6.4.3).
Our Public Affairs Division (DPA) also does important work in promoting a close relationship with institutional stakeholders and in
advocacy initiatives on regulatory, environmental and social issues (Chapter 6.5.1).
Relationship with our Stakeholders
STAKEHOLDER GROUP
HOW WE ENGAGE
HOW WE CREATE VALUE
• General Meetings
• Dedicated events
• Roadshows
• Conferences for presentation of results
• Annual and Quarterly Reports
• Environmental Council
• Sustainability Forum
• ESG performance information
• ESG ratings
• Investor relations
• Regular reporting of financial and non-
financial information
• Risk reduction
• Optimisation of operations
• Optimisation of assets
• Increased revenues and distribution of
dividends
• Pension Fund Supervisory Board
• Managers' Forum
• Intranet
• My Planet
• Navigator Forests Conference
• Navigator Commercial Conference
• Straight to the Top Programme
• Periodic meetings between Executive
Board and Workers’ Committee
• Collective bargaining instruments
• Navigator Tour - Visits to our mills and
nurseries
• Family Day
• Future Leaders Forum
• “CRESCER” (Growing) Project
• Industrial Forum
• Stable employment
• Payment of wages, performance and
productivity bonuses
• Benefits and support for families
• Vocational training and development
• Provision of safe working conditions that
promote well-being
• Raising awareness of healthcare
• and preventive medicine
• Management of pension fund
• Promoting a sense of purpose
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STAKEHOLDER GROUP
HOW WE ENGAGE
HOW WE CREATE VALUE
• Sustainability Forum
• Participation in events and management
bodies of industry associations in areas
such as energy, forestry and sustainable
development
• Meetings and visits to our mills and
nurseries
• Contribution to the design of shared
solutions for economic, environmental and
social challenges in the sector, regions and
the country.
• Active participation in development
projects and support for forestry producers
through Biond – Forest Fibers from
Portugal
• Sustainability Forum
• Technical support and training
• “Clube Produtores Florestais” (Forestry
Producers Club)
• Annual Forestry Producers Meeting
• Trade Fairs
• e-globulus platform
• Florestas.pt platform
• Collaboration agreements
• Forestry Producers Magazine
• Navigator Tour – Visits to our mills and
nurseries
• Technical training
• Tools for promoting responsible and
sustainable forestry management
• Large scale production of clones, making
for healthier and more productive forests
• Genetic improvement of plantations
• Support for fire prevention and fire-
fighting
• Solutions for controlling pests and other
biotic risks to plantations
• Adding value to ecosystem services,
through sustainable forestry management
and biodiversity conservation
• Increased efficiency in forestry production
• Environmental Council
• RAIZ Scientific Board
• Sustainability Forum
• Study grants and Master's degrees
• Research partnerships (RAIZ)
• Cooperation agreements with universities
• “Floresta do Saber” (Forest of
Knowledge)
• Navigator Tour – Visits to our mills and
nurseries
• Investment in R&D
• Generating and disseminating knowledge
• Partnerships with Universities and
Institutes to produce knowledge on a co-
creation basis
• Creating employment in science
• Development of bioproducts
• Business activities
• Periodic listening exercises
• Advertising campaigns
• Satisfaction surveys
• Complaints
• Meetings and visits to our mills and
nurseries
• Specialist webinars
• Quality products, mostly bearing
certification seals
• Response to market needs
• New products and services
• Close relationships and trust, generating
value for Consumers
• Advocacy activities– Public Affairs sector
• Community Monitoring Committees
• Sustainability Forum
• Formal response to legal requirements
• Meetings and response to various
enquiries
• Navigator Tour – Visits to our mills and
nurseries
• Responsible tax policy
• Helping to power Portugal’s business fabric
and promoting exports
• Contributing to better rural development
policies and to attainment of Portugal's
carbon neutrality targets, with concrete
proposals/action plans
• Participation in Taxpayers’ Forum
• Sustainability Forum
• Community Monitoring Committees
• Collaboration agreements
• Navigator Tour - Visits to our mills and
nurseries
• Participation in leading NGOs in the field of
sustainable forests and biodiversity
conservation
For example: the World Wide Fund for
Nature's Forests Forward programme
• Dialogue with ONG’ s in Sustainability
Forum
Navigator
Annual Report 2023 · Management Report 106
STAKEHOLDER GROUP
HOW WE ENGAGE
HOW WE CREATE VALUE
• Sustainability Forum
• Declarations of conformity
• Technical visits to facilities of chemical
raw materials suppliers
• Annual Forestry Producers Meeting
• Forestry Producers Magazine
• Navigator Tour - Visits to our mills and
nurseries
• Navigator Hub
• Suppliers’ Day
• Supplies and
Services
• Generating employment and powering
development of Portugal's business fabric
• Sharing values and good practice
• Support for reducing carbon footprint
• Community Monitoring Committees
• Community liaison officers (Mozambique)
• “Dá a Mão à Floresta” (Give the Forest a
Hand)
• “Floresta do Saber” (Forest of
Knowledge)
• Biodiversidade.com.pt
• Florestas.pt platform
• Sustainability Forum
• My Planet
• Navigator Tour – Visits to our mills and
nurseries
• “Clube Produtores Florestais” (Forestry
Producers Club)
• Promotion of the rural economy
and bioeconomy
• Generating employment
• Training up young talent
• Investment in the Community
• Promotion of forest literacy
• Adding value to ecosystem services,
through sustainable forestry management
and biodiversity conservation
• Helping to mitigate climate change risks,
through carbon sequestration and
investment in renewable energy sources
• Reducing the impacts from atmospheric
emissions, noise and odours, and from
waste generation
• Reducing the impacts of liquid emissions
on water availability
Annual Report 2023 · Management Report 107
6.3. Environmental information
6.3.1. European Union Taxonomy
Background to the European Environmental Taxonomy
In 2019, the European Commission announced the European Green Deal, a new strategy for growth with the aim of achieving
climate neutrality by 2050 and to support economic growth through more efficient means and sustainable use of natural
resources. To facilitate this, a practical framework for sustainable investment has been provided by Regulation (EU) 2020/852 of
the European Parliament and the Council of 18 June 2020, on the European Taxonomy. The Taxonomy works as a standardised
and mandatory classification system, i.e. a common language, to be used to determine which economic activities are considered
"environmentally sustainable" in the European Union. The idea is for companies to direct their investment flow to activities
regarded as sustainable, whilst at the same time maintaining transparency in reporting and reducing the possibility of
greenwashing.
According to the Taxonomy Regulation (Regulation 852/2020), in order for an economic activity to be environmentally sustainable
it must:
1. Contribute to at least one of the six environmental objectives identified in the Regulation (climate change mitigation;
climate change adaptation; the sustainable use and protection of water and marine resources; transition to a circular
economy; pollution prevention and control; protection and restoration of biodiversity and ecosystems);
2. Do no significant harm to any of the five remaining objectives; and
3. Comply with the minimum social safeguards relating to Human Rights, Corruption, Taxation and Fair Competition.
In 2021, non-financial undertakings reported their taxonomy-eligible activities listed in the Climate Delegated Act (contribution to
the objectives of climate change mitigation and adaptation). The eligibility of these economic activities was reported, in terms of
turnover, capital expenditure (Capex) and operating expenditure (Opex). For the financial year of 2022, in addition to the eligible
activities, non-financial undertakings had to assess and disclose the alignment of these activities with application of the technical
screening criteria and the minimum social safeguards.
In February 2022, the European Commission presented the Supplementary Delegated Act that includes, under strict conditions,
specific nuclear energy and gas activities in the list of economic activities covered by the Taxonomy. Under the Supplementary
Delegated Act, the companies covered must disclose additional information on their activities in these two sectors (nuclear energy
and natural gas). This Supplementary Delegated Act was formally adopted on 9 March 2022 and published in the Official Journal
on 15 July 2022.
In 2023, the Climate Delegated Act was updated, revising the activities listed and introducing new activities in the climate change
mitigation and adaptation objectives. Also in 2023, the Environmental Delegated Act was published, specifying the activities (and
the respective criteria) contributing to the other four environmental objectives.
Accordingly, in its 2023 report, the Group discloses the results of the eligibility and alignment analysis of its economic activities,
under the Climate and Environmental Delegated Acts.
Annual Report 2023 · Management Report 108
Eligibility analysis
In 2023, the Navigator Group analysed which of its economic activities are eligible under the Climate Delegated Act, the
Supplementary Delegated Act and the Environmental Delegated Act. The following economic activities were identified:
Activity
Code*
Description
1.3 Forest
management
CCM 1.3
Navigator carries on a vertically integrated forestry business, promoting efficient
and responsible management of approximately 108 thousand hectares of forest in
mainland Portugal. This area is 100% certified under the FSC and PEFC systems.
The forestry business in Mozambique is not included in the EU Taxonomy report.
4.1 Electricity
generation using
solar photovoltaic
technology
CCM 4.1
Navigator has 5 photovoltaic solar facilities in Portugal, for in-house consumption,
with rated capacity of approximately 7MWp. In addition, the Group has a 5MW
plant in Spain, owned by Navigator Tissue Ejea. In 2023, the construction of 4 new
facilities began which will increase the installed capacity at the Group’s sites by
approximately 26 MWp.
4.8 Electricity
generation from
bioenergy
CCM 4.8
The Group has two biomass power plants, the electricity from which is injected into
the national grid.
4.20 Cogeneration of
heat/cool and power
from bioenergy
CCM 4.20
The Group has three biomass cogeneration plants that produce both electricity and
heat, and this thermal energy is used in manufacturing processes for pulp and
paper.
4.30 High-efficiency
co-generation of
heat/cool and power
from fossil gaseous
fuels
CCM 4.30
The Group has two combined-cycle natural gas cogeneration plants, one in Setúbal
and the other in Figueira da Foz, the latter allocated to a back-up role.
5.1 Construction,
extension and
operation of water
collection, treatment
and supply systems
CCM 5.1
At the industrial complexes in Aveiro, Figueira da Foz and Setúbal, Navigator has
and operates its own systems for withdrawing, treating and supplying water, for
the production of pulp, paper and energy.
5.3 Construction,
extension and
operation of waste
water collection and
treatment systems
CCM 5.3
At the industrial complexes in Aveiro, Figueira da Foz, Setúbal and Vila Velha de
Ródão, Navigator has and operates systems for waste water collection and
treatment.
9.2 Close to market
research,
development and
innovation
CCA 9.2
Through Instituto Raiz, the Group carries on research activities, including applied
research, and experimental development of solutions, processes, technologies and
other products geared to climate change adaptation. Attention is drawn to the
programme for genetic improvement of eucalyptus for climate change adaptation.
Annual Report 2023 · Management Report 109
Activity
Code*
Description
1.1 Conservation,
including restoration,
of habitats,
ecosystems and
species
BIO 1.1
The Group is pursuing the Zambujo Recover Project, consisting of forestry
intervention and environmental recovery over an area of 153.4 ha. This consists of
converting intensive forestry areas (eucalyptus) through reforestation with native
species, promotion of protected agro-forestry habitats, ecological restoration and
land use conversion on the Zambujo estate, belonging to areas susceptible to
desertification and priority intervention areas.
* CCM (Climate change mitigation:); CCA (Climate change adaptation); ** Activity included in Complementary Delegated Act (Regulation 2022/1214)
All the activities described above which are eligible for the climate change mitigation objective are also eligible for the climate
change adaptation objective. The Group considers that the climate change mitigation objective is the most relevant in these cases.
At present, the Taxonomy Delegated Acts lay greatest stress on industries that are more carbon intensive / green energy
intensive. This means that the Group’s main activities - pulp and paper production - are not contemplated and cannot therefore be
included in the Navigator Group's eligible activities. For this reason, the indicators relating to eligible activities are low.
Alignment analysis
The Taxonomy alignment assessment was conducted by the Navigator Group on the basis of the best interpretation of the
Taxonomy Regulations, the Climate Delegated Act, the Supplementary Delegated Act, the Environmental Delegated Act and the
guidelines available from the European Commission.
Substantial contribution and Do no significant harm
Navigator established an internal multidisciplinary working group to assess whether its eligible activities complied with the
alignment criteria established in the Taxonomy regulations. For each economic activity, the Group assessed the criteria of
“Substantial contribution” and “Do no significant harm”. The criteria for DNSH referring to the Appendices (A, B, C and D) were
analysed taking into consideration criteria applying to the entire Group. Compliance with the minimum safeguards was also
analysed at Group level.
The table below summarises the analysis of alignment with the criteria for “Substantial contribution” (SC) and “Do no significant
harm” (DNSH), identified in the Climate Delegated Act and the Environmental Delegated Act. The conclusions stated were based
on the best knowledge existing at the date of analysis of these criteria.
Annual Report 2023 · Management Report 110
Activity 1.3 - Forest management
Navigator managed approximately 108 thousand hectares of woodlands in mainland
Portugal, including production forests, and areas given over to conservation of
relevant wildlife. The Group has a forest management plan (FMP) for the holdings it
owns and rents for operations in mainland Portugal. This plan complies with the
transposed requirements of the technical standard issued by order of the Institute of
Nature Conservation and Forests, on the basis of Decree-Law 15/2009. All of
Navigator’s forestry holdings in Portugal have been certified under the FSC and PEFC
schemes since 2007. This activity is deemed taxonomy-eligible and taxonomy-
aligned. In connection with this activity, the Group considered in its capex KPI the
acquisition of forest land, as well as other investment supporting forest management.
Activity 4.1 - Electricity generation
using solar photovoltaic technology
Electricity generation using solar photovoltaic technology enables Navigator to
reduce scope 2 greenhouse gas emissions and also its dependence on the electricity
market. Navigator considers that this activity is carried on in alignment with the
criteria for CS and DNSF.
Activity 4.8 - Electricity generation
from bioenergy
At Navigator's two Biomass Power Plants, waste forestry biomass is used to
generate electricity. The Group considers that the forestry biomass used meets the
criteria established in Article 29, paras. 6 and 7, of Directive EU 2018/2001, insofar
as the risks of using forestry biomass from unsustainable production are minimised.
Directive EU 2018/2001 was transposed into Portuguese law in Decree-Law
15/2022 and Decree-Law 84/2022. All the waste forestry biomass is purchased on
the Portuguese market and in accordance with Portuguese legislation, thereby
complying with the sustainability criteria. The average transport distance for
activity 4.8 is less than 500 km, thereby complying with the GHG emissions
reduction criterion of at least 80%, in accordance with table A of Annex VI to
Directive EU 2018/2001. Accordingly, after analysis of the criteria for SC and DNSH,
the Group considers that this activity is taxonomy-aligned.
Activity 4.20 – Cogeneration of
heat/cool and power from bioenergy
The renewable biomass cogeneration facilities for Navigator’s pulp mills used
several biomass by-products resulting from pulp production, including black liquor
and eucalyptus bark. Waste forestry biomass is also acquired to meet energy
needs. The Group considers that the waste forestry biomass used meets the criteria
established in Article 29, paras. 6 and 7, of Directive EU 2018/2001, insofar as the
risks of using forestry biomass from unsustainable production are minimised.
Directive EU 2018/2001 was transposed into Portuguese law in Decree-Law
15/2022 and Decree-Law 84/2022. All the waste forestry biomass used by
Navigator to produce energy in Cogeneration facilities (activity 4.20) is purchased
on the Portuguese market and in accordance with Portuguese legislation, thereby
complying with the sustainability criteria. The average transport distance for
activity 4.20 is less than 500 km, thereby complying with the GHG emissions
reduction criterion of at least 80%, in accordance with table A of Annex VI to
Directive EU 2018/2001. After analysis of the criteria for SC and DNSH, the Group
therefore considers this activity to be taxonomy-aligned.
Annual Report 2023 · Management Report 111
Activity 4.30 - High-efficiency co-
generation of heat/cool and power
from fossil gaseous fuels
The Group operates two combined-cycle natural gas cogeneration plants. Under the
criteria for classification as a transitional activity, in particular for the maximum
emissions (gCO
2
/KWh), this activity has been considered taxonomy non-aligned.
Nonetheless, it is important to note:
• By 2035, the Group plans to shut down completely the Natural Gas Cogeneration
Plant in Setúbal, the heat currently produced by this facility being instead
generated from biomass in a High Efficiency Renewable Cogeneration Plant, as
envisaged in Navigator's Roadmap for Carbon Neutrality; it is also stressed that the
existing Natural Gas Cogeneration Plant in Setúbal is a highly efficient facility which
permits a saving of more than 10% in primary energy and its direct GHG emissions
are less than 270 gCO
2
/kWh of energy produced, aligned with the criteria for this
activity;
• The Natural Gas Cogeneration Plant in Figueira da Foz is currently a backup
facility, and operated for only 4 hours in 2023. Since late 2020, with the
construction of the new biomass boiler, the steam needs of the Figueira da Foz
industrial complex have been meet, in normal operations, from renewable energy
obtained from biomass.
Activity 5.1 - Construction, extension
and operation of water collection,
treatment and supply systems
The water used in production processes is withdrawn and treated by Navigator's
own systems at the industrial complexes in Aveiro, Figueira da Foz and Setúbal. In
Aveiro, the water intake is at the surface, using pumping systems, and the water is
then routed to the respective water treatment plants (WTP). In Setúbal, the water
intake is subterranean, and the water is also routed to the site’s own WTP. Power
consumption by withdrawal and treatment systems is less than 0.5kWh per m
3
of
water supplied at the industrial complexes in Aveiro and Figueira da Foz, but higher
in Setúbal. For that reason, this activity is considered taxonomy-aligned in Aveiro
and Figueira da Foz and non-aligned at the Setúbal industrial complex.
Activity 5.3 - Construction, extension
and operation of waste water
collection and treatment systems
The Group has waste water collection and treatment systems (WWTP) at all its
production units in Portugal. Power consumption by this facilities is below the level
set in the criterion for CS for this activity. As a result of the technical assessment of
the criteria for SC and DNSH set in the Delegated Act, this activity is considered to
be taxonomy-aligned.
Activity 9.2 - Close to market research,
development and innovation
Through Instituto Raiz, the Group carries on research activities, including applied
research, and experimental development of solutions, processes, technologies and
other products geared to climate change adaptation. During the financial year of
2023, attention is drawn to the programme for genetic improvement of eucalyptus
for climate change adaptation. The Group considers the criteria for SC and DNSH
to be met, and so the activity is considered to be taxonomy-aligned.
Activity 1.1 - Conservation, including
restoration, of habitats, ecosystems
and species
This activity contributes to re-establishing or restoring ecosystems, habitats or
species habitats in good conditions. The activity meets the criteria for SC and
DNSH, and so is considered to be taxonomy-aligned. The eligibility and alignment
analysis took into account Capex and Opex relating to the Zambujo Recover
Project.
Annual Report 2023 · Management Report 112
Application of the criteria relating to Appendix A of the Climate Delegated Act
In order to respond to the criteria of Appendix A and in line with the recommendations of the Task Force on Climate-related
Financial Disclosures (TCFD), the Navigator Group has identified and assessed the main physical climate risks for its activities.
These risks were identified and assessed by a multidisciplinary team and have been reviewed annually, considering the full
breadth of the Group’s business at all its locations.
Assessment of the Group’s most relevant physical risks and an analysis of the potential financial impacts on the organisation,
considering two time horizons (2035 and 2050) – and three climate scenarios aligned with growing levels of temperature increase,
on the basis of the increase in greenhouse gases, using the simulations in the IPCC scenarios – RCP2.6, RCP 4.5 and RCP 8.5,
supported by narratives from the IPCC, IEA and WBCSD Climate Scenario Tool, called respectively the green, yellow and red
scenarios. The risks were then prioritised in accordance with their classification, considering a combination between the potential
impact and the likelihood of the risk. On the basis of this analysis, Navigator is currently estimating the financial impact of its
risks, in line with the TCFD recommendations, and in 2023 implemented the exercise for 3 physical risks, 1 transitional risk and 1
climate opportunity (Chapter 10.6).
Navigator has also established information on the level of exposure of its assets to the physical risks of drought, heat waves, cold,
fires and pests, for each region of the country. The results of the analysis make it possible to identify the most critical areas for
monitoring, in order to implement adaptation solutions that promote the resilience of Navigator’s activity to climate change. The
regions analysed have been classified in accordance with their level of climate vulnerability to the risks identified, considering the
respective factors of exposure, sensitivity and ability to adapt.
In addition, the Group has incorporated climate change considerations into its reforestation practices, biodiversity conservation
and increased monitoring during fire risk periods. In future, the Group plans to go further in assessing its physical risks, by
broadening this study to include more climate risks and scenarios and a more robust analysis of the potential impact on its
activities, resulting from both its own operations and from its value chain.
Application of Appendix B criteria (Sustainable use and protection of water and
marine resources)
Navigator carries on its activities in accordance with the Portuguese legislation in force, in particular Law 58/2005 which
transposed Directive 2000/60/EC, and with management plan for use and protection of water resources. Navigator's activities
relate to use of water resources where the Company’s industrial complexes are located, in particular to compliance with the Terms
of Use of Water Resources (TUWR), complying with legal requirements in the use of this shared resource. The Environment
Impact Studies to which its facilities are subject are carried out under Directive 2014/52/EU (updating Directive 2011/92/EU) and
involve an assessment of impact on water resources.
In its 2030 Agenda, Navigator has made a commitment to promoting efficient use of resources, and especially of water. The
Company's goal is to reduce specific use of water by at least 33% by 2030, in relation to 2019. Through implementation of its
WURP project (Water Use Reduction Programme), the Company has maximised reuse and reclamation of process water, as well
as managing and optimising this resource in all industrial activities.
In 2023, the Group also set itself the aim of a 10% reduction in the organic load of its industrial effluents by 2030, in relation to
2022.
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Application of Appendix D criteria (Protection and restoration of biodiversity and
ecosystems)
Biodiversity conservation is built into Navigator’s forestry management model. Steps are taken to protect and restore Biodiversity
and ecosystems, as demonstrated, for example, in the Environmental Impact Study (EIA) for the Figueira da Foz Biomass Boiler,
drawn up in accordance with Directive 2014/52/EU (updating Directive 2011/92/EU).
The Navigator Group has annual plans for monitoring biodiversity in its forestry holdings. Around 12% of its woodland holdings
comprise areas of conservation interest, and 4,075 hectares are classified by Rede Natura 2000 as protected habitats. Navigator
sets out to protect biodiversity, creating a positive impact by taking action in keeping with its commitments in connection with the
act4nature Portugal initiative. In the 2030 Agenda, the Group establishes the goal of implementing annual monitoring plans and
Biodiversity and Ecosystem Services (B&ES) conservation and restoration work in woodlands holdings it manages.
Application of criteria for DNSH for Pollution prevention and control
The Group’s policy is to adopt the best available techniques (BATs) for the sector, in particular those that can mitigate the
environmental impacts associated pollution from its production processes. The focus is on developing and incorporating
technologies and techniques that protect the environment and prevent pollution, whilst eliminating hazards and minimising health
and safety risks.
The Group's activities are regulated by the strict criteria of its environmental licenses, as well as Portuguese and European
legislation on pollution prevention and control. Atmospheric emissions are self-monitored through continuous or occasional
measurements of atmospheric pollutants, in accordance with the legal requirements for control and verification of compliance with
emission limit values (ELVs). Waste generated by the activities are recovered whenever this is possible or directed to appropriate
disposal, in accordance with the terms of environmental licenses or applicable laws. Liquid effluents generated are treated in its
own WWTPs aligned with BATs, also using monitoring systems aligned with the applicable legislation. The Company has capex
programmes at its various complexes to equip facilities with the best acoustic insulation in order to reduce noise pollution from its
activities.
Through its Management Systems Policy and the Environmental Policy, the Company has made commitments to ensuring
compliance with the requirements applicable to its activities and products, and also to manage and mitigate environmental risks,
in particular by controlling and preventing pollution and responding to potential environmental emergencies, safeguarding the
precautionary principle.
Minimum Safeguards
In order to classify alignment of eligible activities, it is necessary to comply with the Minimum Social Safeguards. The Taxonomy
defines Minimum Safeguards as “alignment with the OECD Guidelines for Multinational Enterprises, the UN Guiding Principles on
Business and Human Rights, including the principles and rights set out in the eight fundamental conventions identified in the
Declaration of the International Labour Organisation on Fundamental Principles and Rights at Work and the International Bill of
Human Rights”.
In order to help undertakings respond to the requirements, the European Commission Sustainable Finance Platform published, in
October 2022, the Final Report on Minimum Safeguards, identifying the four areas that undertakings must address to ensure
compliance with the Minimum Safeguards: Human Rights, Corruption, Tax and Fair Competition. In its Communication on
interpretation of the Minimum Safeguards, this Report is indicated by the European Commission as establishing good practice.
Human Rights
Annual Report 2023 · Management Report 114
The Navigator Group recognises the importance of respect for Human Rights and employment rights as an integral part of the
overall pursuit of its business activities, through adoption and implementation of various internal instruments, in particular the
Human Rights Policy, the Code of Ethics and Conduct, the Gender Equality Plan and the Code of Good Conduct for
Preventing and Combating Harassment at Work. The documents framing its responsible conduct and the commitments
accepted by the Group recognise an extensive list of Human Rights, such as Freedom, equality and dignity; Non-discrimination
and non-coercion; Freedom of thought, conscience and religion; Prohibition of slavery and child labour; Occupational health and
safety; Recognition of the freedom of association and collective bargaining; Equal opportunities and gender equality. Navigator
has defined its commitment to protecting Human Rights in accordance with the principles established in the Universal Charter of
Human Rights, the OECD Guidelines for Multinational Corporations, the Fundamental Conventions of the International Labour
Organisation and the United Nations Guiding Principles on Business and Human Rights.
In its Human Rights Policy, Navigator commits itself to adopting measures to identify the main impacts and potential risks of its
activities as regards Human Rights, in particular through due diligence procedures considered appropriate, and to adopting
appropriate measures to resolve and remediate any situations of non-compliance.
In keeping with the principles established in this Policy, Navigator is also committed to encouraging the different levels in its value
chain to respect Human Rights and employment rights, in particular through appropriate contractual provisions that encourage the
adoption of the necessary preventive and corrective measures and transparent treatment of information concerning any violations
of Human or employment rights, as well as assessment of its compliance on these matters.
Recognising also the important role of its Suppliers in respect for Human Rights, it has adopted a Code of Conduct for Suppliers,
complementing the Code of Ethics and Conduct, applying the principles followed by the Navigator Group to all its Suppliers.
In January 2023, the Navigator Group signed the “Pacto para Mais e Melhores Empregos para os Jovens” (More and Better Youth
Employment Pact), stepping up its commitment on employment rights issues. The Group has committed itself, by 2026, to
contract and retain young workers, providing them with specialist training and a career development plan.
In January 2024, Navigator signed up to the UN Global Compact in order to boost the promotion of sustainability in its strategy
and operations, in line with the UNGC Ten Principles, and the United Nations Sustainable Development Goals. The Company is
currently taking part in the Business & Human Rights Accelerator Program, with the aim of assessing and consolidating its conduct
on Human Rights matters, through analysis of adverse impacts and design of mitigation measures.
Corruption, Fair Competition and Tax
In view of the international context in which it operates, the growing involvement of the private sector in combating corruption
and related offences, and the legal obligations incumbent on it, Navigator has adopted a Corruption Prevention and Related
Offences Policy, through which it seeks to establish a series of professional values and standards of integrity which must be shared
by all its Employees.
In addition to the principles already explained in its Code of Ethics and Conduct, this new policy is underpinned by Navigator’s
wholehearted commitment to preventing corruption, by a general prohibition, across the Group, of any corrupt acts or related
offences, and by implementation of a culture of ethics and integrity, both in the way we do our jobs and in our dealings with third
parties with whom Navigator establishes any business dealings, or other third parties with whom Navigator Employees deal in the
course of their work.
Bribery and other corrupt practices are therefore prohibited at Navigator, in all active and passive forms, through act or omission,
or by creating or maintaining situations of favouritism or other irregularities, together with conduct such as may create
expectations of favouritism in dealings with the Navigator Group;
Annual Report 2023 · Management Report 115
Navigator has also implemented a Risk Prevention Plan for Corruption and Related Infractions (“RPP”), in which it identifies the
risks of corruption and related offences to which it is exposed, establishes criteria for assessing these risks and lays down
preventive and corrective measures designed to mitigate the likelihood of their materialising.
With regard to competition, the Group undertakes to act in compliance with competition law, and to abide by market rules and
standards and to promote fair competition. These commitments are reflected in internal documents, such as the Code of Ethics
and Conduct and the Code of Conduct for Suppliers, which expressly lay down that Navigator’s business, and that of its Suppliers,
must be conducted in accordance with the standards governing fair competition and all the relevant legislation.
As regards taxation, Navigator Group companies are subject in the course of their business to a large number of taxes, charges
and contributions established by law, making the Group a major contributor to State revenues, helping the country to achieve its
objectives in terms of welfare, as well as sustainable and economic development.
The Tax Policy is defined in accordance with the economic substance of its business and designed to ensure full compliance, by
Group entities, with their tax obligations, in all the jurisdictions in which they carry on their business, seeking to comply fully with
the spirit and letter of the applicable legislation. Aware of its role in Portugal's industrial and business fabric, and because of the
vital importance of transparency in dealings with shareholders, the Navigator Group has sought in recent years to calculate its
Tax Footprint, identifying and disclosing annually the volume of tax revenues obtained from its business operations and the
taxes it collects and administers on behalf of the State and other parties, thereby contributing on this dual basis to the State’s tax
revenues and the payments made to public authorities.
Significantly, the Group regularly provides training on Ethics and Integrity for all its Employees, designed to stress the importance
of the rules established in the Code of Ethics and Conduct and other internal regulations addressing issues of Human Rights,
Corruption and Fair Competition. In 2023, it developed specific training on Prevention of Corruption and Related Offences,
establishing guidelines for ethical and transparent conduct in accordance with the underlying principles reflected in its internal
policies governing Navigator’s activities, in particular the Corruption Prevention and Related Offences Policy, the Risk
Prevention Plan for Corruption and Related Infractions, the Policy for Compliance with International Sanctions and
Restrictive Measures, the Policy for the Prevention of Money Laundering and Financing Terrorism and the Third-Party
Integrity Verification Policy.
It should also be noted that, in its taxonomy-eligible activities in the reporting period, the Navigator Group did not identify any
relevant conviction on matters of Human Rights, Corruption, Tax or Fair Competition. Without prejudice to the above, attention is
drawn to the anti-dumping proceedings brought by the Department of Commerce in the United States, in connection with
investigation of alleged dumping practices in paper imports in several formats from five countries (Australia, Brazil, China,
Indonesia and Portugal). As a result of these proceedings, anti-dumping duties have been applied on Portugal's exports to the
United States of certain types of paper marketed by Navigator. These exports are related to a taxonomy non-eligible activity.
Annual Report 2023 · Management Report 116
Disclosure of KPIs
The Taxonomy Delegated Act (Article 8) establishes a number of key performance indicators (KPIs) associated with
environmentally sustainable activities that non-financial undertakings must disclose: the proportion of their turnover (Turnover
KPI), the proportion of their capital expenditure (Capex KPI) and the proportion of their operating expenditure (Opex KPI).
Below we present the summary of findings:
KPI eligibility and
alignment
Total (EUR)
Proportion of
Taxonomy-eligible
and - aligned (%)
Proportion of
Taxonomy-eligible
but not Taxonomy-
aligned (%)
Proportion of
Taxonomy-non-
eligible (%)
Turnover
€1.953.242.900
6%
2%
92%
CapEx
€201.907.775
50%
1%
49%
OpEx
€110.871.782
9%
0%
91%
Accounting policies
As established in the taxonomy, the figures reported were calculated in accordance with Navigator's Consolidated Financial
Statements for the financial year ended 31 December 2023, which were prepared in conformity with the International Financial
Reporting Standards (IFRS), in force at 1 January 2023 and as adopted by the European Union.
The European Taxonomy requires companies to disclose how they avoided duplication in considering economic activities eligible
(numerator), in other words, in determining turnover, capital expenditure and operational expenditure. The Navigator Group
determined eligible expenses on the basis of its financial and cost accounting and ensured that cost items were considered only
once in calculating indicators.
Turnover
Turnover was based on the same accounting policies applicable to revenue, in accordance with the International Financial
Reporting Standards (IFRS), i.e. considering sales and services provided in the course of the Navigator Group's normal business.
Total turnover (denominator in calculating the ratio eligible activities) therefore corresponds to the revenue reported in the
Consolidated Financial Statements (Note 2.1).
Turnover of aligned activities (numerator) corresponds to cogeneration activities and electricity generation from bioenergy. The
other activities are used mostly in internal Group operations and, as such, are not considered for the purposes of this indicator.
Natural gas cogeneration activity was considered non-aligned.
CapEx
The figure stated as total Capex in the denominator calculation of the eligible activities ratio corresponds to the sum of
acquisitions in 2023 of tangible assets, intangible assets (excluding CO
2
licenses) and right-of-use assets, as disclosed in nos. 3.2,
3.3 and 3.6 of the Notes to the Navigator's Financial Statements. For the purposes of determining this ratio, additions of intangible
assets related to acquisitions of CO
2
licenses were excluded, in so far as these do not correspond effectively to acquisition of
licenses, but rather to licenses awarded to the Group, and their classification as intangible assets results from the accounting
policy adopted by the Group. No additions were recorded in 2023 to the Group’s investment properties.
Annual Report 2023 · Management Report 117
The Capex values classified as eligible, including those considered both taxonomy-aligned and taxonomy non-aligned, correspond
to investment in assets or processes associated with the Group’s activities, in particular:
• Investment to support forest management activities, in particular acquisition of forest land;
• Investment in the Biomass Power Plants in Aveiro and Setúbal;
• Investment in biomass Cogeneration Plants;
• Investment in new recovery boiler in Setúbal;
• Investment in new WWTP in Setúbal;
• Investment in Research & Development projects in connection with the genetic improvement programme; and
• Investment in the Zambujo Recover Project.
OpEx
The total Opex stated in the denominator for calculation of the eligible activities ratio corresponds to the following expenditure
determined on the basis of the Consolidated Financial Statements at 31 December 2023, including in Note 2.3 Operating
Expenses and Losses:
• Uncapitalised research and development costs;
• Uncapitalised forestry costs;
• Industrial cleaning and waste processing expense;
• Water withdrawal and treatment expense;
• Effluent treatment expense;
• Maintenance and repair expense;
• Uncapitalised short-term lease expense; and
• Other expense directly relating to maintenance of tangible assets or investment properties.
The Opex values associated with the Group’s eligible activities (taxonomy-aligned or non-aligned) correspond essentially to
uncapitalised forestry costs, forest-related research and development expense, expense relating to conservation and restoration of
habitats and ecosystems, expense related to withdrawal and treatment of water and treatment of effluents, uncapitalised expense
necessary for operating biomass cogeneration plants and power plants and other expense related to technologies and products for
reducing GHG emissions.
Annual Report 2023 · Management Report 118
Proportion of Turnover from products or services associated with taxonomy-aligned economic activities
(including activities related to fossil gas)
Financial year 2023
Econ omic Ac ti vit ies (1)
Code (a) (2)
Turnover (3)
Proportion of Turnover,
year 2023 (4)
Climate Change Mitigation (5)
Climate Change Adaptation (6)
Water (7)
Pollution (8)
Circular Economy (9)
Biodiversity (10)
Climate Change Mitigation (11)
Climate Change Adaptation (12)
Water (13)
Pollution (14)
Circular Economy (15)
Biodiversity (16)
Minimum
Safeguards
(17)
Proportion of
Taxonomy-
align ed
(A.1.) or -
eligib le
(A.2.)
turnover,
year 2022
(18)
Category
enablin g
activity
(19)
Category
transitional
activity
(20)
Text Currency %
Y; N;
N/EL
(b) e
(c)
Y; N;
N/EL
(b) e
(c)
Y; N;
N/EL
(b) e
(c)
Y; N;
N/EL
(b) e
(c)
Y; N;
N/EL
(b) e
(c)
Y; N;
N/EL
(b) e
(c)
Y/N Y/N Y/N Y/N Y/N Y/N Y/N % E T
A. TAXONOMY-ELIGIBLE ACTIVITIES
Electricity generation from bioenergy CCM 4.8 24,045,765 1% Y N/EL N/EL N/EL N/EL N/EL Y Y Y Y Y Y Y 1%
Cogeneration of heat/cool and power from bioenergy CCM 4.20 96,712,318 5% Y N/EL N/EL N/EL N/EL N/EL Y Y Y Y Y Y Y 6%
Turnover of en viron ment al ly su stainabl e act ivi ti es (Taxon omy-
align ed) (A.1)
120,758,083 6% 6% 0% 0% 0% 0% 0% Y Y Y Y Y Y Y 7%
Of which enabling - 0% 0% 0% 0% 0% 0% 0% Y Y Y Y Y Y Y 0% E
Of which transitional - 0% 0% Y Y Y Y Y Y Y 0% T
High-efficiency co-generation of heat/cool and power from fossil
gaseous fuels
CCM 4.30 44,613,034 2%
EL N/EL N/EL N/EL N/EL N/EL 3%
Turnover of Taxon omy- eli gi bl e b ut n ot environ ment all y
sustainable activities (not Taxonomy-aligned activities) (A.2)
44,613,034 2% 2% 0% 0% 0% 0% 0% 3%
A. Turnover of Taxonomy-eligib le activities (A.1+A.2) 165,371,117 8% 8% 0% 0% 0% 0% 0% 10%
Turnover of Taxonomy- non-eligible activities (B) 1,787,871,783 92%
1,953,242,900 100%
Total (A + B)
B. TAXONOMY-NON-ELIGIBLE ACTIVITIES
2023
Substantial contribution criteria
DNSH criteria (“Does Not
Significantly Harm”)
A.2. Taxonomy-elig ib le but not environmentally sustainable activities (not Taxonomy-aligned activities)
A.1. Environmentally sustainable activities (Taxonomy-aligned)
Annual Report 2023 · Management Report 119
Proportion of CapEx in products or services associated with taxonomy-aligned economic activities
(including activities related to fossil gas
Financial year 2023
Econ omic Ac ti vit ies (1)
Code (a) (2)
Capex (3)
Proportion of Capex,
year 2023 (4)
Climate Change Mitigation (5)
Climate Change Adaptation (6)
Water (7)
Pollution (8)
Circular Economy (9)
Biodiversity (10)
Climate Change Mitigation (11)
Climate Change Adaptation (12)
Water (13)
Pollution (14)
Circular Economy (15)
Biodiversity (16)
Minimum
Safeguards
(17)
Proportion
of Taxon omy-
align ed
(A.1.) or
eligib le
(A.2.)
CapEx, year
2022 (18)
Category
enablin g
activity
(19)
Category
transitional
activity
(20)
Text Currency %
Y; N;
N/EL
(b) e
(c)
Y; N;
N/EL
(b) e
(c)
Y; N;
N/EL
(b) e
(c)
Y; N;
N/EL
(b) e
(c)
Y; N;
N/EL
(b) e
(c)
Y; N;
N/EL
(b) e
(c)
Y/N Y/N Y/N Y/N Y/N Y/N Y/N % E T
Forest management CCM 1.3 14,614,876 7% Y N/EL N/EL N/EL N/EL N/EL Y Y Y Y Y Y Y 9%
Electricity generation using solar photovoltaic technology CCM 4.1 415,903 0.2% Y N/EL N/EL N/EL N/EL N/EL Y Y Y Y Y Y Y 0%
Electricity generation from bioenergy CCM 4.8 3,714,928 2% Y N/EL N/EL N/EL N/EL N/EL Y Y Y Y Y Y Y 2%
Cogeneration of heat/cool and power from bioenergy CCM 4.20 74,151,357 37% Y N/EL N/EL N/EL N/EL N/EL Y Y Y Y Y Y Y 15%
Construction, extension and operation of water collection, treatment and
supply systems
CCM 5.1 902,951 0.4%
Y N/EL N/EL N/EL N/EL N/EL Y Y Y Y Y Y Y 0%
Construction, extension and operation of waste water collection and
treatment
CCM 5.3 6,718,663 3%
Y N/EL N/EL N/EL N/EL N/EL Y Y Y Y Y Y Y 0%
Close to market research, development and innovation CCA 9.2 445,391 0.2% N Y N/EL N/EL N/EL N/EL Y Y Y Y Y Y Y 0% E
Conservation, including restoration, of habitats, ecosystems and species BIO 1.1 3,202 0.0% N/EL N/EL N/EL N/EL N/EL Y Y Y Y Y Y Y Y 0%
CapEx of environmentally sustainable activities (Taxonomy-
align ed) (A.1)
100,967,271 50% 50% 0.2% 0% 0% 0% 0% Y Y Y Y Y Y Y 26%
Of which enabling 445,391 0.2% 0% 0.2% 0% 0% 0% 0% Y Y Y Y Y Y Y 0% E
Of which transitional - 0% 0% Y Y Y Y Y Y Y 0% T
High-efficiency co-generation of heat/cool and power from fossil gaseous
fuels
CCM 4.30 1,003,980 0.5%
EL N/EL N/EL N/EL N/EL N/EL 4%
Construction, extension and operation of water collection, treatment and
supply systems
CCM 5.1 903,749 0.4%
EL N/EL N/EL N/EL N/EL N/EL 0%
CapEx of Taxonomy-eligible but not environmentally sustainable
activities (not Taxonomy-aligned ac tivi ties) (A.2)
1,907,729 1% 1% 0% 0% 0% 0% 0% 4%
A. CapEx of Taxonomy- eligible activities (A.1+A.2) 102,875,000 51% 51% 0.2% 0% 0% 0% 0% 30%
99,032,775 49%
201,907,775 100%
Total (A + B)
2023
Substantial contribution criteria
DNSH criteria (“Does Not
Significantly Harm”)
A. TAXONOMY-ELIGIBLE ACTIVITIES
A.1. Environmentally sustainable activities (Taxonomy-aligned)
A.2. Taxonomy-elig ib le but not environmentally sustainable activities (not Taxonomy-aligned activities)
B. TAXONOMY-NON-ELIGIBLE ACTIVITIES
CapEx of Taxonomy-non- eligible activities (B)
Annual Report 2023 · Management Report 120
Proportion of OpEx in products or services associated with taxonomy-aligned economic activities (including activities related
to fossil gas)
Financial year 2023
Econ omic Ac ti vities (1)
Code (a) (2)
Opex (3)
Proportion of Opex,
year 2023 (4)
Climate Change Mitigation (5)
Climate Change Adaptation (6)
Water (7)
Pollution (8)
Circular Economy (9)
Biodiversity (10)
Climate Change Mitigation (11)
Climate Change Adaptation (12)
Water (13)
Pollution (14)
Circular Economy (15)
Biodiversity (16)
Minimum
Safeguards
(17)
Proportion
of Taxon omy-
aligned
(A.1.) or -
eligib le
(A.2.) Op Ex,
year 2022
(18)
Category
enablin g
activity
(19)
Category
transitional
activity
(20)
Text Currency %
Y; N;
N/EL
(b) e
(c)
Y; N;
N/EL
(b) e
(c)
Y; N;
N/EL
(b) e
(c)
Y; N;
N/EL
(b) e
(c)
Y; N;
N/EL
(b) e
(c)
Y; N;
N/EL
(b) e
(c)
Y/N Y/N Y/N Y/N Y/N Y/N Y/N % E T
Forest management CCM 1.3 3,540,124 3% Y N/EL N/EL N/EL N/EL N/EL Y Y Y Y Y Y Y 7%
Electricity generation from bioenergy CCM 4.8 2,366,677 2% Y N/EL N/EL N/EL N/EL N/EL Y Y Y Y Y Y Y 2%
Cogeneration of heat/cool and power from bioenergy CCM 4.20 2,214,686 2% Y N/EL N/EL N/EL N/EL N/EL Y Y Y Y Y Y Y 3%
Construction, extension and operation of water collection, treatment and
supply systems
CCM 5.1 150,634 0.1%
Y N/EL N/EL N/EL N/EL N/EL Y Y Y Y Y Y Y 0%
Construction, extension and operation of waste water collection and
treatment
CCM 5.3 1,549,676 1%
Y N/EL N/EL N/EL N/EL N/EL Y Y Y Y Y Y Y 0%
Close to market research, development and innovation CCA 9.2 1,429,746 1% N Y N/EL N/EL N/EL N/EL Y Y Y Y Y Y Y 0% E
Conservation, including restoration, of habitats, ecosystems and species BIO 1.1 500,246 0.5% N/EL N/EL N/EL N/EL N/EL Y Y Y Y Y Y Y Y 0%
OpEx of environmentally sustainable activities (Taxonomy-
aligned) (A.1)
11,751,790 11% 9% 1% 0% 0% 0% 0.5% Y Y Y Y Y Y Y 12%
Of which enabling 1,429,746 1% 0% 1% 0% 0% 0% 0% Y Y Y Y Y Y Y 0% E
Of which transitional - 0% 0% Y Y Y Y Y Y Y 0% T
High-efficiency co-generation of heat/cool and power from fossil gaseous
fuels
CCM 4.30 69,517 0.1%
EL N/EL N/EL N/EL N/EL N/EL 0%
Construction, extension and operation of water collection, treatment and
supply systems
CCM 5.1 112,772 0.1%
EL N/EL N/EL N/EL N/EL N/EL 0%
OpEx of Taxonomy-eligible but not environmentally sustainable
activities (not Taxonomy-alig ned activities ) (A.2)
182,289 0.2% 0.2% 0% 0% 0% 0% 0% 0%
A. OpEx of Taxonomy eligible activities (A.1+A.2) 11,934,078 11% 9% 1% 0% 0% 0% 0.5% 12%
98,937,704 89%
110,871,782 100%
Total (A + B)
2023
Substantial contribution criteria
DNSH criteria (“Does Not
Significantly Harm”)
A. TAXONOM Y-ELIGIBLE ACTIVITIES
A.1. Environmentally sustainable activities (Taxonomy-aligned)
A.2. Taxonomy-elig ib le but not environmentally sustainable activities (not Taxonomy-aligned activities)
B. TAXONOMY-NON-ELIGIBLE ACTIVITIES
OpEx of Taxonomy-non- eligible activities ( B)
Annual Report 2023 · Management Report 121
Templates according to Regulation 2022/1214
Template 1: Nuclear and fossil gas related activities
Row
Nuclear energy related activities
1.
The undertaking carries out, funds or has exposures to research, development, demonstration and
deployment of innovative electricity generation facilities that produce energy from nuclear processes with
minimal waste from the fuel cycle.
NO
2.
The undertaking carries out, funds or has exposures to construction and safe operation of new nuclear
installations to produce electricity or process heat, including for the purposes of district heating or
industrial processes such as hydrogen production, as well as their safety upgrades, using best available
technologies.
NO
3.
The undertaking carries out, funds or has exposures to safe operation of existing nuclear installations that
produce electricity or process heat, including for the purposes of district heating or industrial processes
such as hydrogen production from nuclear energy, as well as their safety upgrades.
NO
Fossil gas related activities
1.
The undertaking carries out, funds or has exposures to construction or operation of electricity generation
facilities that produce electricity using fossil gaseous fuels.
NO
2.
The undertaking carries out, funds or has exposures to construction, refurbishment, and operation of
combined heat/cool and power generation facilities using fossil gaseous fuels.
YES
3.
The undertaking carries out, funds or has exposures to construction, refurbishment and operation of heat
generation facilities that produce heat/cool using fossil gaseous fuels.
NO
Annual Report 2023 · Management Report 122
Template 2: Taxonomy-aligned economic activities (denominator) - Turnover
Row
Economic Activities
Amount and proportion of Turnover
CCM + CCA
Climate change
mitigation (CMM)
Climate change
adaptation (CCA)
Amount
%
Amount
%
Amount
%
1.
Amount and proportion of taxonomy-aligned
economic activity referred to in Section 4.26 of
Annexes I and II to Delegated Regulation
2021/2139 in the denominator of the applicable
KPI
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
2.
Amount and proportion of taxonomy-aligned
economic activity referred to in Section 4.27 of
Annexes I and II to Delegated Regulation
2021/2139 in the denominator of the applicable
KPI
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
3.
Amount and proportion of taxonomy-aligned
economic activity referred to in Section 4.28 of
Annexes I and II to Delegated Regulation
2021/2139 in the denominator of the applicable
KPI
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
4.
Amount and proportion of taxonomy-aligned
economic activity referred to in Section 4.29 of
Annexes I and II to Delegated Regulation
2021/2139 in the denominator of the applicable
KPI
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
5.
Amount and proportion of taxonomy-aligned
economic activity referred to in Section 4.30 of
Annexes I and II to Delegated Regulation
2021/2139 in the denominator of the applicable
KPI
-
0%
-
0%
-
0%
6.
Amount and proportion of taxonomy-aligned
economic activity referred to in Section 4.31 of
Annexes I and II to Delegated Regulation
2021/2139 in the denominator of the applicable
KPI
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
7.
Amount and proportion of other taxonomy-
aligned economic activities not referred to in
rows 1 to 6 above in the denominator of the
applicable KPI
120,758,083
6%
120,758,083
6%
-
0%
8.
Total Applicable Turnover
1,953,242,900
100%
1,953,242,900
100%
-
0%
Annual Report 2023 · Management Report 123
Template 2: Taxonomy-aligned economic activities (denominator) - Capex
Row
Economic Activities
Amount and proportion of Capex
CCM + CCA
Climate change
mitigation (CMM)
Climate change
adaptation (CCA)
Amount
%
Amount
%
Amount
%
1.
Amount and proportion of taxonomy-aligned
economic activity referred to in Section 4.26 of
Annexes I and II to Delegated Regulation 2021/2139
in the denominator of the applicable KPI
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
2.
Amount and proportion of taxonomy-aligned
economic activity referred to in Section 4.27 of
Annexes I and II to Delegated Regulation 2021/2139
in the denominator of the applicable KPI
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
3.
Amount and proportion of taxonomy-aligned
economic activity referred to in Section 4.28 of
Annexes I and II to Delegated Regulation 2021/2139
in the denominator of the applicable KPI
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
4.
Amount and proportion of taxonomy-aligned
economic activity referred to in Section 4.29 of
Annexes I and II to Delegated Regulation 2021/2139
in the denominator of the applicable KPI
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
5.
Amount and proportion of taxonomy-aligned
economic activity referred to in Section 4.30 of
Annexes I and II to Delegated Regulation 2021/2139
in the denominator of the applicable KPI
-
0%
-
0%
-
0%
6.
Amount and proportion of taxonomy-aligned
economic activity referred to in Section 4.31 of
Annexes I and II to Delegated Regulation 2021/2139
in the denominator of the applicable KPI
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
7.
Amount and proportion of other taxonomy-
aligned economic activities not referred to in
rows 1 to 6 above in the denominator of the
applicable KPI
100,964,069
50%
100,518,678
50%
445,391
100%
8.
Total applicable CAPEX
201,904,573
100%
201,459,182
100%
445,391
100%
Annual Report 2023 · Management Report 124
Template 2: Taxonomy-aligned economic activities (denominator) - Opex
Row
Economic Activities
Amount and proportion of OPEX
CCM + CCA
Climate change
mitigation (CMM)
Climate change
adaptation (CCA)
Amount
%
Amount
%
Amount
%
1.
Amount and proportion of taxonomy-aligned
economic activity referred to in Section 4.26 of
Annexes I and II to Delegated Regulation 2021/2139
in the denominator of the applicable KPI
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
2.
Amount and proportion of taxonomy-aligned
economic activity referred to in Section 4.27 of
Annexes I and II to Delegated Regulation 2021/2139
in the denominator of the applicable KPI
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
3.
Amount and proportion of taxonomy-aligned
economic activity referred to in Section 4.28 of
Annexes I and II to Delegated Regulation 2021/2139
in the denominator of the applicable KPI
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
4.
Amount and proportion of taxonomy-aligned
economic activity referred to in Section 4.29 of
Annexes I and II to Delegated Regulation 2021/2139
in the denominator of the applicable KPI
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
5.
Amount and proportion of taxonomy-aligned
economic activity referred to in Section 4.30 of
Annexes I and II to Delegated Regulation 2021/2139
in the denominator of the applicable KPI
-
0%
-
0%
-
0%
6.
Amount and proportion of taxonomy-aligned
economic activity referred to in Section 4.31 of
Annexes I and II to Delegated Regulation 2021/2139
in the denominator of the applicable KPI
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
7.
Amount and proportion of other taxonomy-
aligned economic activities not referred to in
rows 1 to 6 above in the denominator of the
applicable KPI
11,251,543
10%
9,821,798
9%
1,429,746
100%
8.
Total applicable OPEX
110,371,536
100%
108,941,790
100%
1,429,746
100%
Annual Report 2023 · Management Report 125
Template 3: Taxonomy-aligned economic activities (numerator) - Turnover
Row
Economic Activities
Amount and proportion of Turnover
CCM + CCA
Climate change
mitigation (CMM)
Climate change
adaptation (CCA)
Amount
%
Amount
%
Amount
%
1.
Amount and proportion of taxonomy-aligned
economic activity referred to in Section 4.26 of
Annexes I and II to Delegated Regulation 2021/2139
in the numerator of the applicable KPI
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
2.
Amount and proportion of taxonomy-aligned
economic activity referred to in Section 4.27 of
Annexes I and II to Delegated Regulation 2021/2139
in the numerator of the applicable KPI
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
3.
Amount and proportion of taxonomy-aligned
economic activity referred to in Section 4.28 of
Annexes I and II to Delegated Regulation 2021/2139
in the numerator of the applicable KPI
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
4.
Amount and proportion of taxonomy-aligned
economic activity referred to in Section 4.29 of
Annexes I and II to Delegated Regulation 2021/2139
in the numerator of the applicable KPI
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
5.
Amount and proportion of taxonomy-aligned
economic activity referred to in Section 4.30 of
Annexes I and II to Delegated Regulation 2021/2139
in the numerator of the applicable KPI
-
0%
-
0%
-
0%
6.
Amount and proportion of taxonomy-aligned
economic activity referred to in Section 4.31 of
Annexes I and II to Delegated Regulation 2021/2139
in the numerator of the applicable KPI
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
7.
Amount and proportion of other taxonomy-
aligned economic activities not referred to in
rows 1 to 6 above in the numerator of the
applicable KPI
120,758,083
100%
120,758,083
100%
-
0%
8.
Amount and proportion of taxonomy-aligned
economic activities in the numerator of the
applicable Turnover
120,758,083
100%
120,758,083
100%
-
0%
Annual Report 2023 · Management Report 126
Template 3: Taxonomy-aligned economic activities (numerator) - Capex
Row
Economic Activities
Amount and proportion of Capex
CCM + CCA
Climate change
mitigation (CMM)
Climate change
adaptation (CCA)
Amount
%
Amount
%
Amount
%
1.
Amount and proportion of taxonomy-aligned
economic activity referred to in Section 4.26
of Annexes I and II to Delegated Regulation
2021/2139 in the numerator of the applicable
KPI
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
2.
Amount and proportion of taxonomy-aligned
economic activity referred to in Section 4.27
of Annexes I and II to Delegated Regulation
2021/2139 in the numerator of the applicable
KPI
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
3.
Amount and proportion of taxonomy-aligned
economic activity referred to in Section 4.28
of Annexes I and II to Delegated Regulation
2021/2139 in the numerator of the applicable
KPI
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
4.
Amount and proportion of taxonomy-aligned
economic activity referred to in Section 4.29
of Annexes I and II to Delegated Regulation
2021/2139 in the numerator of the applicable
KPI
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
5.
Amount and proportion of taxonomy-aligned
economic activity referred to in Section 4.30
of Annexes I and II to Delegated Regulation
2021/2139 in the numerator of the applicable
KPI
-
0%
-
0%
-
0%
6.
Amount and proportion of taxonomy-aligned
economic activity referred to in Section 4.31
of Annexes I and II to Delegated Regulation
2021/2139 in the numerator of the applicable
KPI
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
7.
Amount and proportion of other
taxonomy-aligned economic activities
not referred to in rows 1 to 6 above in
the numerator of the applicable KPI
100,967,271
100%
100,521,880
100%
445,391
100%
8.
Amount and proportion of taxonomy-
aligned economic activities in the
numerator of the applicable CAPEX
100,967,271
100%
100,521,880
100%
445,391
100%
Annual Report 2023 · Management Report 127
Template 3: Taxonomy-aligned economic activities (numerator) - Opex
Row
Economic Activities
Amount and proportion of OPEX
CCM + CCA
Climate change
mitigation (CMM)
Climate change
adaptation (CCA)
Amount
%
Amount
%
Amount
%
1.
Amount and proportion of taxonomy-aligned
economic activity referred to in Section 4.26 of
Annexes I and II to Delegated Regulation
2021/2139 in the numerator of the applicable KPI
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
2.
Amount and proportion of taxonomy-aligned
economic activity referred to in Section 4.27 of
Annexes I and II to Delegated Regulation
2021/2139 in the numerator of the applicable KPI
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
3.
Amount and proportion of taxonomy-aligned
economic activity referred to in Section 4.28 of
Annexes I and II to Delegated Regulation
2021/2139 in the numerator of the applicable KPI
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
4.
Amount and proportion of taxonomy-aligned
economic activity referred to in Section 4.29 of
Annexes I and II to Delegated Regulation
2021/2139 in the numerator of the applicable KPI
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
5.
Amount and proportion of taxonomy-aligned
economic activity referred to in Section 4.30 of
Annexes I and II to Delegated Regulation
2021/2139 in the numerator of the applicable KPI
-
0%
-
0%
-
0%
6.
Amount and proportion of taxonomy-aligned
economic activity referred to in Section 4.31 of
Annexes I and II to Delegated Regulation
2021/2139 in the numerator of the applicable KPI
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
7.
Amount and proportion of other taxonomy-
aligned economic activities not referred to in
rows 1 to 6 above in the numerator of the
applicable KPI
10,051,480
100%
9,583,581
100%
1,429,746
100%
8.
Amount and proportion of taxonomy-aligned
economic activities in the numerator of the
applicable OPEX
10,051,480
100%
9,583,581
100%
1,429,746
100%
Annual Report 2023 · Management Report 128
Template 4: Taxonomy-eligible but not taxonomy-aligned economic activities - Turnover
Row
Economic Activities
Amount and proportion of Turnover
CCM + CCA
Climate change
mitigation (CMM)
Climate change
adaptation (CCA)
Amount
%
Amount
%
Amount
%
1.
Amount and proportion of taxonomy-eligible but not
taxonomy-aligned economic activity referred to in
Section 4.26 of Annexes I and II to Delegated
Regulation 2021/2139 in the denominator of the
applicable KPI
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
2.
Amount and proportion of taxonomy-eligible but not
taxonomy-aligned economic activity referred to in
Section 4.27 of Annexes I and II to Delegated
Regulation 2021/2139 in the denominator of the
applicable KPI
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
3.
Amount and proportion of taxonomy-eligible but not
taxonomy-aligned economic activity referred to in
Section 4.28 of Annexes I and II to Delegated
Regulation 2021/2139 in the denominator of the
applicable KPI
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
4.
Amount and proportion of taxonomy-eligible but not
taxonomy-aligned economic activity referred to in
Section 4.29 of Annexes I and II to Delegated
Regulation 2021/2139 in the denominator of the
applicable KPI
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
5.
Amount and proportion of taxonomy-eligible but not
taxonomy-aligned economic activity referred to in
Section 4.30 of Annexes I and II to Delegated
Regulation 2021/2139 in the denominator of the
applicable KPI
44,613,034
100%
44,613,034
100%
-
0%
6.
Amount and proportion of taxonomy-eligible but not
taxonomy-aligned economic activity referred to in
Section 4.31 of Annexes I and II to Delegated
Regulation 2021/2139 in the denominator of the
applicable KPI
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
7.
Amount and proportion of other taxonomy-
eligible but not taxonomy-aligned economic
activities not referred to in rows 1 to 6 above in
the denominator of the applicable KPI
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
8.
Amount and proportion of taxonomy-eligible but
not taxonomy-aligned economic activities in the
denominator of the applicable Turnover
44,613,034
100%
44,613,034
100%
-
0%
Annual Report 2023 · Management Report 129
Template 4 Taxonomy-eligible but not taxonomy-aligned economic activities - Capex
Row
Economic Activities
Amount and proportion of Capex
CCM + CCA
Climate change
mitigation (CMM)
Climate change
adaptation (CCA)
Amount
%
Amount
%
Amount
%
1.
Amount and proportion of taxonomy-eligible but not
taxonomy-aligned economic activity referred to in
Section 4.26 of Annexes I and II to Delegated
Regulation 2021/2139 in the denominator of the
applicable KPI
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
2.
Amount and proportion of taxonomy-eligible but not
taxonomy-aligned economic activity referred to in
Section 4.27 of Annexes I and II to Delegated
Regulation 2021/2139 in the denominator of the
applicable KPI
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
3.
Amount and proportion of taxonomy-eligible but not
taxonomy-aligned economic activity referred to in
Section 4.28 of Annexes I and II to Delegated
Regulation 2021/2139 in the denominator of the
applicable KPI
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
4.
Amount and proportion of taxonomy-eligible but not
taxonomy-aligned economic activity referred to in
Section 4.29 of Annexes I and II to Delegated
Regulation 2021/2139 in the denominator of the
applicable KPI
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
5.
Amount and proportion of taxonomy-eligible but not
taxonomy-aligned economic activity referred to in
Section 4.30 of Annexes I and II to Delegated
Regulation 2021/2139 in the denominator of the
applicable KPI
1,003,980
53%
1,003,980
53%
-
0%
6.
Amount and proportion of taxonomy-eligible but not
taxonomy-aligned economic activity referred to in
Section 4.31 of Annexes I and II to Delegated
Regulation 2021/2139 in the denominator of the
applicable KPI
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
7.
Amount and proportion of other taxonomy-
eligible but not taxonomy-aligned economic
activities not referred to in rows 1 to 6 above in
the denominator of the applicable KPI
903,749
47%
903,749
47%
-
0%
8.
Amount and proportion of taxonomy-eligible but
not taxonomy-aligned economic activities in the
denominator of the applicable CAPEX
1,907,729
100%
1,907,729
100%
-
0%
Annual Report 2023 · Management Report 130
Template 4: Taxonomy-eligible but not taxonomy-aligned economic activities - Opex
Anti-
fraud
Line
Economic Activities
Amount and proportion of OPEX
CCM + CCA
Climate change
mitigation (CMM)
Climate change
adaptation (CCA)
Amount
%
Amount
%
Amount
%
1.
Amount and proportion of taxonomy-eligible but not
taxonomy-aligned economic activity referred to in
Section 4.26 of Annexes I and II to Delegated
Regulation 2021/2139 in the denominator of the
applicable KPI
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
2.
Amount and proportion of taxonomy-eligible but not
taxonomy-aligned economic activity referred to in
Section 4.27 of Annexes I and II to Delegated
Regulation 2021/2139 in the denominator of the
applicable KPI
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
3.
Amount and proportion of taxonomy-eligible but not
taxonomy-aligned economic activity referred to in
Section 4.28 of Annexes I and II to Delegated
Regulation 2021/2139 in the denominator of the
applicable KPI
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
4.
Amount and proportion of taxonomy-eligible but not
taxonomy-aligned economic activity referred to in
Section 4.29 of Annexes I and II to Delegated
Regulation 2021/2139 in the denominator of the
applicable KPI
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
5.
Amount and proportion of taxonomy-eligible but not
taxonomy-aligned economic activity referred to in
Section 4.30 of Annexes I and II to Delegated
Regulation 2021/2139 in the denominator of the
applicable KPI
69,517
38%
69,517
38%
-
0%
6.
Amount and proportion of taxonomy-eligible but not
taxonomy-aligned economic activity referred to in
Section 4.31 of Annexes I and II to Delegated
Regulation 2021/2139 in the denominator of the
applicable KPI
n.a.
n.a.
n.a.
n.a.
n.a.
n.a.
7.
Amount and proportion of other taxonomy-
eligible but not taxonomy-aligned economic
activities not referred to in rows 1 to 6 above in
the denominator of the applicable KPI
112,772
62%
112,772
62%
n.a.
n.a.
8.
Amount and proportion of taxonomy-eligible but
not taxonomy-aligned economic activities in the
denominator of the applicable OPEX
182,289
100%
182,289
100%
-
0%
Annual Report 2023 · Management Report 131
Template 5: Taxonomy non-eligible economic activities - Turnover
Anti-
fraud
Line
Economic Activities
Amount and proportion of Turnover
Amount
%
1.
Amount and proportion of economic activity referred to in row 1 of Template 1
that is taxonomy-non-eligible in accordance with Section 4.26 of Annexes I and II
to Delegated Regulation 2021/2139 in the denominator of the applicable KPI
n.a.
n.a.
2.
Amount and proportion of economic activity referred to in row 2 of Template 1
that is taxonomy-non-eligible in accordance with Section 4.27 of Annexes I and II
to Delegated Regulation 2021/2139 in the denominator of the applicable KPI
n.a.
n.a.
3.
Amount and proportion of economic activity referred to in row 3 of Template 1
that is taxonomy-non-eligible in accordance with Section 4.28 of Annexes I and II
to Delegated Regulation 2021/2139 in the denominator of the applicable KPI
n.a.
n.a.
4.
Amount and proportion of economic activity referred to in row 4 of Template 1
that is taxonomy-non-eligible in accordance with Section 4.29 of Annexes I and II
to Delegated Regulation 2021/2139 in the denominator of the applicable KPI
n.a.
n.a.
5.
Amount and proportion of economic activity referred to in row 5 of Template 1
that is taxonomy-non-eligible in accordance with Section 4.30 of Annexes I and II
to Delegated Regulation 2021/2139 in the denominator of the applicable KPI
-
0%
6.
Amount and proportion of economic activity referred to in row 6 of Template 1
that is taxonomy-non-eligible in accordance with Section 4.31 of Annexes I and II
to Delegated Regulation 2021/2139 in the denominator of the applicable KPI
n.a.
n.a.
7.
Amount and proportion of other taxonomy-non-eligible economic
activities not referred to in rows 1 to 6 above in the denominator of the
applicable KPI
1,787,871,783
100%
8.
Total amount and proportion of other taxonomy-non-eligible economic
activities in the denominator of the applicable Turnover
1,787,871,783
100%
Annual Report 2023 · Management Report 132
Template 5 Taxonomy non-eligible economic activities - Capex
Anti-
fraud
Line
Economic Activities
Amount and proportion of Capex
Amount
%
1.
Amount and proportion of economic activity referred to in row 1 of Template 1
that is taxonomy-non-eligible in accordance with Section 4.26 of Annexes I and II
to Delegated Regulation 2021/2139 in the denominator of the applicable KPI
n.a.
n.a.
2.
Amount and proportion of economic activity referred to in row 2 of Template 1
that is taxonomy-non-eligible in accordance with Section 4.27 of Annexes I and II
to Delegated Regulation 2021/2139 in the denominator of the applicable KPI
n.a.
n.a.
3.
Amount and proportion of economic activity referred to in row 3 of Template 1
that is taxonomy-non-eligible in accordance with Section 4.28 of Annexes I and II
to Delegated Regulation 2021/2139 in the denominator of the applicable KPI
n.a.
n.a.
4.
Amount and proportion of economic activity referred to in row 4 of Template 1
that is taxonomy-non-eligible in accordance with Section 4.29 of Annexes I and II
to Delegated Regulation 2021/2139 in the denominator of the applicable KPI
n.a.
n.a.
5.
Amount and proportion of economic activity referred to in row 5 of Template 1
that is taxonomy-non-eligible in accordance with Section 4.30 of Annexes I and II
to Delegated Regulation 2021/2139 in the denominator of the applicable KPI
-
0%
6.
Amount and proportion of economic activity referred to in row 6 of Template 1
that is taxonomy-non-eligible in accordance with Section 4.31 of Annexes I and II
to Delegated Regulation 2021/2139 in the denominator of the applicable KPI
n.a.
n.a.
7.
Amount and proportion of other taxonomy-non-eligible economic
activities not referred to in rows 1 to 6 above in the denominator of the
applicable KPI
92,109,403
100%
8.
Total amount and proportion of other taxonomy-non-eligible economic
activities in the denominator of the applicable Capex
92,109,403
100%
Annual Report 2023 · Management Report 133
Template 5 Taxonomy non-eligible economic activities - Opex
Anti-
fraud
Line
Economic Activities
Amount and proportion of OPEX
Amount
%
1.
Amount and proportion of economic activity referred to in row 1 of Template 1 that
is taxonomy-non-eligible in accordance with Section 4.26 of Annexes I and II to
Delegated Regulation 2021/2139 in the denominator of the applicable KPI
n.a.
n.a.
2.
Amount and proportion of economic activity referred to in row 2 of Template 1 that
is taxonomy-non-eligible in accordance with Section 4.27 of Annexes I and II to
Delegated Regulation 2021/2139 in the denominator of the applicable KPI
n.a.
n.a.
3.
Amount and proportion of economic activity referred to in row 3 of Template 1 that
is taxonomy-non-eligible in accordance with Section 4.28 of Annexes I and II to
Delegated Regulation 2021/2139 in the denominator of the applicable KPI
n.a.
n.a.
4.
Amount and proportion of economic activity referred to in row 4 of Template 1 that
is taxonomy-non-eligible in accordance with Section 4.29 of Annexes I and II to
Delegated Regulation 2021/2139 in the denominator of the applicable KPI
n.a.
n.a.
5.
Amount and proportion of economic activity referred to in row 5 of Template 1 that
is taxonomy-non-eligible in accordance with Section 4.30 of Annexes I and II to
Delegated Regulation 2021/2139 in the denominator of the applicable KPI
-
0%
6.
Amount and proportion of economic activity referred to in row 6 of Template 1 that
is taxonomy-non-eligible in accordance with Section 4.31 of Annexes I and II to
Delegated Regulation 2021/2139 in the denominator of the applicable KPI
n.a.
n.a.
7.
Amount and proportion of other taxonomy-non-eligible economic
activities not referred to in rows 1 to 6 above in the denominator of the
applicable KPI
99,788,939
100%
8.
Total amount and proportion of other taxonomy-non-eligible economic
activities in the denominator of the applicable Opex
99,788,939
100%
Annual Report 2023 · Management Report 134
The next steps in applying the Taxonomy
In line with the Group’s strategy and its sustainability goals, Navigator will press ahead in 2024 with developing procedures
and action to respond appropriately to the Taxonomy alignment criteria. These activities include:
1. More robust implementation of climate risk analysis (Appendix A to the Climate Delegated Act – Annex I) aligned
with the work of responding to the recommendations of the Task Force on Climate-related Financial Disclosures
(TCFD);
2. Development of a Human Rights Due Diligence procedure, designed to strengthen practices and commitments
relating to operations;
3. Analysis of potential extensions of the Taxonomy regulations to other activities and implementation of guidelines
that may have a significant impact on classification of the Group's eligibility and alignment in future.
Annual Report 2023 · Management Report 135
6.3.2. Climate change
GRI 3-3, 302-1, 302-3, 302-4, 305-1, 305-2, 305-3,305-4, 305-5
ESRS MDR-A, MDR-M, MDR-T, E1-1, E1-2, E1-3, E1-4, E1-5, E1-6
Navigator takes a comprehensive and structured approach to its contribution to a low-carbon economy. This
ranges from sustainable forestry management and investment in renewable energy to development of
bioproducts that offer sustainable alternatives - natural, recyclable and biodegradable - to products made
today from fossil raw materials.
OUR IMPACTS
509,494 tCO
2
e
234,597
tCO
2
e
1,396,836
tCO
2
e
Scope 1 emissions
Scope 2 emissions
28
Scope 3 emissions
6.2m tCO
2
15,000 tCO
2
2.5m tCO
2
Accumulated stock
in our forests in Portugal
Captured in production process
Biogenic CO2 sequestered
in our products
41%
€340m
39,747 TJ
Reduction in direct emissions
of CO
2
(EU ETS)
at our industrial complexes,
in relation to 2018
Investment in
carbon neutrality
at our mills (2018-2035)
Energy consumed
(down 3.4% on 2022)
81%
5,604 GJ
5,130 TJ
Primary energy consumed
from renewable sources
in Portugal
Energy consumption reduced as a result
of 12 energy consumption projects
completed in 2023
Energy sold
(down 4.5% on 2022)
3.2%
37%
Power output in Portugal
29
Of power generated from biomass in
Portugal
28
In 2023, the emission factors of the International Energy Agency (IEA) were used to calculate scope 2 (location-based) emissions, instead of the energy mix of the
Entidade Reguladora dos Serviços Energéticos (ERSE) in 2022 and 2021.
29
National figures on the basis of 2022 data from REN – Rede Energéticas Nacionais.
Annual Report 2023 · Management Report 136
As an industrial undertaking, we are aware that our operations, and those along our value chain, have an impact on consumption
of natural resources, with consequent atmospheric emissions, generation of odours, liquid effluents, waste and other issues These
include greenhouse gas (GHG) emissions with potential negative impacts on the environment and on the worsening of the effects
of climate change. The consumption and production of energy is a highly important topic in the context of operational
performance and management of The Navigator Company's resources, representing simultaneously significant costs and income,
and an important share of the total GHG emissions generated.
On the other hand, our forestry operations make a positive contribution to sequestering carbon. It should be stressed that, of all
Portuguese forestry species, eucalyptus is that which sequesters the most CO
2
per hectare, in each year of growth. The figure for
eucalyptus stands is 11.3 tons of CO
2
/hectare per year, almost three times more than woodlands of maritime pine (3.9 tons of
CO
2
/hectare per year) and seven times more than cork oak woodlands (montado) (1.6 tons of CO
2
/hectare per year)
30
.
As a potential opportunity, it may be noted that, in line with the National Energy and Climate Plan 2021-2030, which attaches
added importance to increasing absorption of carbon emissions by Portugal's forests – from 8.7 million tons of CO
2
to 12.7 million
tons by 2030 – and not just to cutting emissions, the sector will be able to make an active contribution to forestation efforts that
enable Portugal to meet 75% of its CO
2
sequestration targets, in particular through:
• Planting of 300 thousand ha of “new” forest (150 thousand of eucalyptus + 150 thousand of native species) – which
would make it possible to increase net annual sequestration by 2.1 million tons of CO
2
, i.e. approximately 50% of the
national goal;
• Recovery of 300 thousand ha of degraded and abandoned eucalyptus areas – which would make it possible to increase
net annual sequestration by 1.2 million tons, i.e. approximately 25% of the national goal.
In the field of climate risks, a project has been in progress since 2022 to implement the recommendations of the Task Force on
Climate-related Financial Disclosures (TCFD). The aim is to be able to integrate the TCFD recommendations into corporate
strategy and risk management processes, seizing the opportunity to assess the potential financial and strategic implications of
climate change and to develop appropriate responses. For further information, see the respective annex (Chapter 10.6).
Our commitments on climate change and energy topics are set out in our 2030 Roadmap (Chapter 6.2.4), and envisage:
• Promoting efficient use of resources, minimising our ecological footprint, with the aim of optimising energy intensity, year
after year;
• Investment in low carbon solutions leading to carbon neutrality, with the aim of cutting GHG emissions from operations in
Portugal (by 2035) and increasing renewable energy as a proportion of total consumption of primary energy in 2030;
• Promote sustainable use of soil and forestry resources, including biodiversity, with the aim of ensuring that the CO
2
stock
sequestered in Navigator’s forest holdings in Portugal does not decrease more than 10% from its 2022 level.
We develop and incorporate technologies and practices geared to environmental protection and prevention of atmospheric
pollution, in compliance with the applicable legal requirements and best practices.
Since 2019, we have voluntarily adopted a roadmap to carbon neutrality, reflecting our ambition of decarbonising the
industrial complexes in Portugal by 2035 (EU ETS – European Emissions Trading Scheme emissions).
We took our commitment to cutting CO
2
emissions further by signing up to the Science Based Targets initiative (SBTi), and
securing approval of the targets submitted in 2022. This global organisation, respected internationally for its assessments of
30
Calculations made on the basis of “Inventário Florestal Nacional 6”, published by Instituto de Conservação da Natureza e das Florestas (2015), considering all types of
stand (pure, dominant and irregular) and for all biomass components.
Annual Report 2023 · Management Report 137
initiatives taken by companies towards a low-carbon economy, has validated our science-based climate targets as a "key element"
in Navigator's decarbonisation journey towards net zero. The new reduction targets (detailed in the next section) now include
scopes 2 and 3 in the Company’s inventory of carbon emissions in Portugal, as well as extending the other scope 1 emissions, and
were set taking 2020 as the baseline (date of our first full emissions inventory).
As well as helping to mitigate climate change, our decarbonisation plan has a positive impact thanks to the use of waste forestry
biomass to produce energy, recovering this resource and protecting forests against fires. Another positive impact comes from
the generation of power from renewable sources. We are phasing out consumption of fossil-based energy and replacing it
with less carbon-intensive energy sources, and investing in photovoltaic solar power, which generates power for internal
use, cutting our energy costs.
As a bioindustry on the right side of the future, based on the eucalyptus sector and the pulp and paper industry, we promote a
forest-based bioeconomy with potential positive impacts.
It is important to note that CO
2
sequestered by trees during the photosynthesis process is transformed into biogenic carbon,
which is stored in wood fibres and consequently in forest-based products, such as pulp and paper. Sustainable management
of our forests accordingly boosts this positive impact.
In Mozambique we can also point to our contribution to storing carbon, above all on two fronts, in planted forests and through
preservation of conservation interest forests. Steps have also been taken to reduce emissions, such as through conservation
farming techniques that mitigate the effects of nomadic farming, raising awareness of the need to reduce use of broadcast burns,
among other activities under the Social Development Programme (Chapter 6.4.3).
In addition, we seek to develop processes that enable us to capture carbon in the production process and we invest in the
search for bioproducts and innovative solutions (Chapter 6.5.2), developed in partnership with different entities, in line with
current climate science, taking an active role in developing a circular and sustainable bioeconomy which is Nature-positive and
Climate-neutral.
Our efforts in this were rewarded in 2023 with our classification as a climate action leader and a rating of “A-” from CDP
Climate Change.
Annual Report 2023 · Management Report 138
Annual Report 2023 · Management Report 139
Emissions of greenhouse gases
The main source of direct carbon emissions (CO
2
) is from the burning of fossil fuels to generate the energy needed for our
operations (scope 1), the majority of which falls within the scope of the European Emissions Trading Scheme (EU ETS).
In addition, indirect GHG emissions are generated in association with the electricity we purchase for consumption (scope 2) and
over the length of our value chain (scope 3), especially in the category of “Third-party goods and services” (accounting for 60%
of scope 3 emissions). On the positive side, our activities contribute to the capture and sequestration of CO
2
.
Direct CO
2
emissions from industrial assets are the factor that most contribute to scope 1 emissions (89.6%). In 2023,
emissions from our mills fell by 17.4% in quantity, in relation to the previous year, and total scope 1 emissions were down by
14.0%, representing a reduction of approximately 83 thousand tCO
2
e. The pace of production was slower in Portugal than in 2022
(down by 12.9%) and the reduction in activity at the Setúbal Natural Gas Cogeneration Plant contributed to this.
Indirect emissions from purchases of electricity (scope 2) were down by 33.5% (location-based
31
), in relation to the
previous year. In addition, the sale of renewable power and power from high efficiency cogeneration made it possible to avoid
more than 200 thousand tCO
2
e for the Portuguese market.
Percentage breakdown of scope 1 and 2 emissions
31
In 2023, the emission factors of the International Energy Agency (IEA) were used to calculated scope 2 (location-based) emissions, instead of the energy mix of the
ERSE (Energy Services Regulatory Authority) in 2022 and 2021.
Scope 1: Direct
emissions
509,494
68%
Scope 2:
Indirect
emissions
(Location-based
electricity)
234,597
32%
744,091 tCO
2
e
GHG emissions
SCOPES 1 and 2
Annual Report 2023 · Management Report 140
Breakdown of
direct emissions (scope 1)
(tCO
2
e)
Breakdown of
indirect emissions (scope 3)
Figures for 2023
GHG emissions avoided through
cogeneration activities and
power generation from
renewable sources in Portugal
(tCO
2
e)
Intensity of GHG emissions
by ton of output
32
(tCO
2
e/t)
32
The calculation of emissions intensity took into consideration scope 1 emissions (excluding primary energy from Biomass Power Plants - BPP) and the total quantity of
products manufactured.
Emissions from
assets at mills;
89.6%
N2O emissions from
industrial assets and
BPPs; 4.8%
Other emissions; 3.1%
Other Fuels
(Diesel, Gasoline,
Propane); 1.3%
CH4 emissions from
industrial assets and
BPPs; 1.2%
509,494
tCO
2
e
GHG emissions
SCOPE 1
Acquisition of
goods and
services; 56.6%
Processing of goods
sold; 11.0%
End of life of
products sold;
10.4%
Emissions related to fuels
and electricity (location
based); 7.1%
Transport and
distribution
(downstream); 8.4%
Transport and distribution
(upstream); 6.5%
1,396,836
tCO
2
e
GHG emissions
SCOPE 3
212,320
338,974
384,598
2023 2022 2021
0.176
0.181
0.186
2023 2022 2021
Annual Report 2023 · Management Report 141
GHG emissions in Portugal
(tCO
2
e)
2023
2022
2021
Direct GHG emissions (scope 1)
501,800
592,428
584,090
Indirect GHG emissions (scope 2) location-
based
230,642
33
352,517
389,919
Indirect GHG emissions (scope 2) market-
based
312,942
307,355
246,860
Indirect GHG emissions (scope 3)
1,383,164
1,589,138
1,570,567
Goal: reduce direct EU ETS CO
2
emissions from industrial complexes in Portugal by 86% by 2035
(baseline: 2018)
Goal: reduce scope 1 and 2 GHG emissions in Portugal by 63% by 2035 (baseline: 2020)
34
Goal: reduce scope 3 GHG emissions from operations in Portugal by 37.5% by 2035 (baseline:
2020)
35
GHG emissions intensity by
turnover
2023
2022
2021
GHG emissions (scopes 1 and 2 location-
based)
(tCO
2
e)
744,091
944,945
974,009
Turnover
(million euros)
1,953
2,465
1,596
Emissions intensity (scopes 1 and 2)
(tCO
2
e/million euros)
381.0
383.3
610.3
Note 1: The total figures presented refer to Navigator's operations in Portugal and Spain.
Note 2: See the GRI Table for methodological information on the calculation of indicators (GRI 305-1, 305-2, 305-3, 305-4).
33
In 2023, the emission factors of the International Energy Agency (IEA) were used to calculated scope 2 (location-based) emissions, instead of the energy mix of the
ERSE (Energy Services Regulatory Authority) in 2022 and 2021.
34
The emissions value for the baseline year is in accordance with the figures submitted to and approved by SBTi in 2022.
35
The emissions value for the baseline year is in accordance with the figures submitted to and approved by SBTi in 2022.
Annual Report 2023 · Management Report 142
Decarbonisation
In 2023 we pressed ahead with development of our decarbonisation roadmap, contributing to the development of an economic
model low in fossil-based carbon.
We received approval of the six applications we submitted to the Recovery and Resilience Plan (RRP) under component C11 –
Decarbonisation in Industry –, representing eligible investment of approximately 173 million euros. This will enable us to bring
forward by three years our interim target for reducing direct CO
2
emissions originally set for 2029. In 2018, Navigator recorded
total direct CO
2
emissions in Portugal of 774 thousand tons; with implementation of the approved project, our ambition to reach
the end of 2026 with CO
2
emissions of approximately 319 thousand tons.
The funding granted under the RRP will make it possible to speed up execution of around 16 decarbonisation projects, including
implementation of a new high efficiency recovery boiler in Setúbal, installation of a new biomass fuelled lime kiln in
Figueira da Foz and implementation of a new high efficiency renewable cogeneration plant in Aveiro.
To complement the amount eligible for the RRP, Navigator plans to invest an additional 166.7 million euros between 2019 and
2028 (representing total investment of 340 million euros) in decarbonisation measures. Of this, approximately 89% has already
been executed or is in progress, most notably the new biomass boiler at Figueira da Foz which started up in 2020 and the project
for the new bleaching tower and pulp washing presses in Aveiro, which was concluded in late 2023. In addition to bringing
significant efficiency gains in water use, this project will make it possible to cut CO
2
emissions by approximately 2,800 tons along
the value chain.
Decarbonisation: 360º degree business vision
Targets 7.2, 7.3, 8.4, 9.2, 12.2, 12.4, 13.1
Navigator’s decarbonisation roadmap is ambitious and requires action in a huge number of locations and processes across
the Company. The approval in 2023 of all six applications that the Group submitted to the RRP will speed up execution of
around 16 decarbonisation initiatives. Taken together, these initiatives will enable us to bring forward by three years our
interim targets for reducing direct CO
2
emissions originally set for 2029. Thanks to these projects, as early as 2026, the
Company will have halved its direct CO
2
emissions in relation to the baseline of 2018.
The applications represent total eligible investment of 173.1 million euros and reflect a 360º degree business vision, as
they envisage projects at Navigator's different mills, at different stages of the production processes, involving processes
such as in-house power generation through solar facilities, using biomass or hydrogen in kilns, recovering sludges for
energy purpose and new or more efficient cogeneration plants.
The capex projects are being transformed into concrete action at the industrial complexes in Aveiro, Figueira da Foz and
Setúbal, whose applications were approved in phase one in July, with a value of 158.3 million euros, and in Vila Velha de
Ródão, for which an application worth 14.7 million euros was approved in November.
It should be recalled that the amount eligible for the RRP is part of total capital expenditure of 340 million euros that
Navigator plans to allocate to decarbonisation measures between 2019 and 2028. Of this total, around 89% has already
been executed or is in execution.
Approval of the RRP applications will accelerate execution of 16 decarbonisation initiatives across Navigator's 4 industrial
complexes.
Annual Report 2023 · Management Report 143
Aveiro Industrial Complex
New bleaching tower and pulp washing presses
Conversion of lime kiln to biomass
Energy recovery of WWTP sludges
Preparation of combustion process in recovery boiler for hydrogen
Implementation of a new high efficiency cogeneration plant
Installation of new solar power plant
Figueira da Foz Industrial Complex
Upgrade to cogeneration plant by implementing new back pressure turbine
Installation of new solar power plant
Implementation of new biomass-fuelled lime kiln
Preparation of combustion process in recovery boiler for hydrogen
Implementation of a new line to feed lime kiln gases to the PCC (precipitated calcium carbonate) plant
Setúbal Industrial Complex
Implementation of a new high efficiency Recovery Boiler
Incineration of non-condensable gases in new Recovery Boiler
Preparation of combustion process in Biomass Boiler for hydrogen
Vila Velha de Ródão
Implementation of a new high efficiency biomass boiler
Installation of new solar power plant
Annual Report 2023 · Management Report 144
Work started in 2023 on construction of the new high efficiency recovery boiler at the Setúbal Industrial Complex. This facility,
responsible for recovering the chemicals used in cooking wood and producing renewable energy for the complex, will make for
greater flexibility in the generation of thermal energy, with a view to shutting down one of the Natural Gas co-generator sets. The
new facility will make it possible to reduce CO
2
emissions by around 175 thousand tons a year along the value chain (direct and
indirect emissions), taking 2019 as the baseline. The boiler will also be prepared for energy recovery from non-condensable gases
generated in the pulp production process, helping to reduce odours at the Setúbal complex. The project represents overall
investment of approximately 136 million euros, funded in part under the RRP and also through a long-term credit facility from the
European Investment Bank, totalling 115 million euros, provided under the European REPowerEU strategy, designed to boost
funding for green energy and help the EU to achieve energy autonomy and competitiveness (Chapter 5).
Our decarbonisation measures also involve promoting efficiency and the use of renewable energy sources, information on which
can be found in the section on energy. With a view to managing the risks of electrical power purchases, and in order to reduce our
scope 2 market-based emissions, we have a long-term Power Purchase Agreement (PPA) in force for 100% renewable
electricity. This was entered into in 2022 and ensures that for a period of ten year a portion of the Company's power needs will be
met at a fixed price.
Also in this field, we were involved over the course of 2023 in the launch of a new interactive publication by the Forest Solutions
Group (WBCSD) “Catalogue of key decarbonization actions”, as part of the “Forest Sector Net-Zero Roadmap – Phase II”.
This provides guidelines to help forest-based companies in their decarbonisation efforts, through credible and science-based net
zero strategies, as well as information on opportunities for carbon removal in forests and storage in products.
Carbon capture and sequestration
Forests
The forests in our care play a significant role in mitigating the effects of climate change. As a result of sustainable management of
107,871 hectares of forest holdings in mainland Portugal, at year-end 2023 the accumulated carbon stock stood at 6.2 M tCO
2
(up
1.6%, from 2022).
We are working with RAIZ on a methodology for calculating CO
2
sequestration in forests (including the soil). Progress
was achieved in 2023, confirming the equations for converting volume in CO
2
equivalent to eucalyptus plantations (deducting
partial areas from the whole to adjust for burned areas) and the work moved on to assessing the carbon sequestered in the soil.
In the case of the soil, a differentiated approach was used for eucalyptus and other forms of occupation: in eucalyptus, use was
made of a set of 2,361 samples with results for concentrations of organic matter (OM) in the RAIZ data base (historical sampling)
and published in the Silva Lusitana 2022 technical dossier and more recently at the 2023 Tecnicelpa Conference (in tons C/ha).
These samples were classified by lithology, climate and soil, followed by calculation of the average carbon ratio between the plant
and the total by yield region (YR). Using this average ratio and the quantification of the carbon in the plant by the current process,
the quantity of carbon in the soil in Navigator’s eucalyptus plantations was extrapolated, plot by plot.
For other forms of occupation, the analysis used the average figures for carbon in the soil per type of occupation in the last
national emissions inventory (NEI) drawn up by the Portuguese Environment Agency (2023), arriving at the sequestration of
carbon per form of occupation in Navigator’s holdings on the basis of these statistics.
This new methodology will be monitored over the course of 2024, and we hope to conduct a rolling assessment from 2023 to
2024 of the values established by the new criteria.
Annual Report 2023 · Management Report 145
Production process
We are seeking to develop processes that enable us to capture carbon in the production process, an example of which is the
manufacture of precipitated calcium carbonate (PCC) – which uses the fossil-derived CO
2
released in our chimneys as a “raw
material” in paper manufacture. In 2023 this amounted to approximately 15,000 tCO
2
.
Products
Forest-based products store biogenic carbon derived from the CO
2
sequestered by trees during photosynthesis, and are
therefore regarded as products from renewable sources, as opposed to products from fossil sources (such as plastic).
In 2023, the biogenic carbon content in pulp and paper marketed by Navigator totalled 2.5 M tCO
2
e.
Over the course of its life cycle (use and recycling), the products retain a significant part of this biogenic carbon, and a residual
part remains stored, more permanently, in books and other documents, when archived or when sent to landfill.
Energy
The overall economic situation remained unstable in 2023, influenced by the war in Ukraine and the conflict in the Middle East. In
this context, which also brought a high level of inflation to European economies, energy prices have remained high, albeit down
from the historically high levels of 2022. At the same time, there has been a sharp slowdown in the markets where the Company
operates, and Navigator responded by slowing the pace of production, culminating in occasional shutdowns of all the paper
machines in Figueira da Foz and Setúbal.
The two effects combined had an impact on electricity sales, which totalled approximately 169 million euros, down by around
35% on the previous year (Chapter 4.5).
Consumption of natural gas was significantly lower in 2023, especially at the Setúbal Industrial Complex, as a result of reduced
use of natural gas cogeneration. This resulted in a 40% decrease in natural gas consumption and consequently in emissions of
fossil CO
2
in relation to 2022.
It may be noted that our industrial units in Portugal continued to provide services in the Regulation Reserve Band Market (Chapter
4.5).
Annual Report 2023 · Management Report 146
Total energy consumed in the organisation
(GJ)
Energy intensity by turnover
2023
2022
2021
Total energy consumption
(TJ)
44,877
46,538
46,425
Turnover
(million euros)
1,953
2,465
1,596
Energy intensity
(TJ/million euros)
23.0
18.9
29.1
Energy consumed
by renewable and non-renewable source
in Portugal
(%)
Energy sold in Portugal
(GJ)
Goal: renewable energy representing 80% of
total primary energy consumption by 2030, in
industrial operations in Portugal.
39,746,832
41,165,471
41,246,701
2023 2022 2021
81%
76%
77%
19%
24%
23%
2023 2022 2021
Renewable source Non-renewable source
5,130,339
5,372,917
5,178,509
2023 2022 2021
Annual Report 2023 · Management Report 147
Energy intensity
36
in Portugal
(GJ/ t)
Note 1: As from 2022, energy figures now include consumption of petrol and propane at other Navigator Group facilities, as well as fuel for the vehicle fleet.
Note 2: The calculation of energy intensity took into consideration consumption of energy by primary sources (excluding primary energy from Biomass Power Plants - BPP)
and the total quantity of products manufactured. The energy used by BPPs is included in total energy consumed, but these figures are not included in the calculation of
energy intensity, because that consumption is not allocated to the production process.
Note 3: Total figures for 2023 include Navigator's operations in Portugal and Spain (Ejea). Those for previous years include only Portugal.
Note 4: See the GRI Table for methodological information on the calculation of indicators (GRI 302-1, 302-3 and 302-4).
Energy efficiency
Our Corporate Energy Efficiency Programme is based on several strategic action areas and among other things is focused on
effective operation of our Energy Management System, certified under ISO 50001:2018, based on a systematic approach to
achieving continuous improvement in energy performance in our industrial operations. This has added to our commitment to
responsible energy management, and we have worked to improve the energy performance of our manufacturing operations for
pulp, paper and tissue. In 2023, the scope of our Energy Management System was expanded with the acquisition of Navigator
Tissue Ejea, also certified under ISO 50001.
In the past five years, we have invested more than 8 million euros in projects to promote energy efficiency. This is an important
plank in our approach to sustainability and has resulted in energy savings in the order of 100 GWh/year, corresponding to the
consumption of around 31 thousand households (equivalent to cities such as Viseu or Setúbal) and avoiding the emission of
approximately 23,000 tons of CO
2
.
The solutions adopted for more efficient use of energy resources, between 2018 and 2022, have also yielded an annual saving in
energy costs in the order of 6 million euros. The changes have been made in different areas of the four industrial complexes in
Portugal, in particular in improved efficiency in production of compressed air, optimisation of cooling systems, LED lighting in
industrial buildings and thermal efficiency.
In 2023, Navigator pressed ahead with implementation of several energy efficiency measures, and a total of 12 initiatives were
executed or are still being executed, representing investment of approximately 287 thousand euros, with an overall potential
reduction of 5,604 GJ.
36
The calculation of energy intensity took into consideration direct energy consumption by primary resources (excluding primary energy from Biomass Power Plants - BPP)
and the total quantity of products manufactured.
12.9
12.0
12.5
2023 2022 2021
Annual Report 2023 · Management Report 148
Reduction in energy
consumption as a result
of energy efficiency projects
in Portugal
(GJ)
2023
2022
2021
5,604
65,682
51,184
Use of renewable energy sources
In 2023 we remained committed to implementing a number of solar power projects, for internal consumption. These are
designed to reduce the Company’s energy bill, and also to reduce scope 2 fossil carbon dioxide emissions. In 2023, renewable
energy accounted for more than 80% of the primary energy consumed by the Company in Portugal.
The 7Mwp of solar capacity already installed at the industrial complexes in Setúbal and Figueira da Foz, the Espirra Estate and
RAIZ, were joined in 2023 by the 5 MWp solar facility at Navigator Tissue Ejea. Work started on building the four new solar power
facilities at the industrial sites in Figueira da Foz (2), Aveiro and Vila Velha de Ródão. This will triple the capacity installed on our
sites, from 12 MWp at present to close to 38 MWp.
The largest of these new solar plants is being developed through a partnership between Navigator and EDP. With capacity of 17
MW, the facility at the Figueira da Foz Industrial Complex will be one of the largest solar projects for internal consumption on a
company site in Portugal.
In Aveiro and Vila Velha de Ródão, the new solar facilities will be installed on the roofs of the converting stores. Due to start up
during the first quarter of 2024, they will have rated power of 1.9 MWp and 4.1 MWp, respectively.
Figueira da Foz Complex fitted with one of Portugal's largest solar facilities for
in-house consumption
Targets 7.2, 17.6
Work started in 2023 on the construction of a new photovoltaic solar facility for internal consumption at the Figueira da Foz
Industrial Complex, in a partnership between Navigator and the Portuguese power utility, EDP. This new 17 Mwp plant will be
able to supply more than 4% of the site's needs, all from clean energy, avoiding emissions of more than 7 thousand tons of
CO
2
a year. Approximately 26 thousand solar panels will be installed, over an area equivalent to 17 football pitches, and will be
able to produce around 26 GWh a year, enough to power some 10,500 households. It will also be one of the first solar facilities
to use solar panels with bifacial modules. This technology is able to capture sunlight from both sides of the panel, making use
of the light reflected by the ground, which can increase output by up to 30%. Work on the new facility started in September
2023 and it is expected to go into operation in May 2024.
Annual Report 2023 · Management Report 149
Power production and sales
In the renewable energy sector, we have positioned ourselves as a leading Portuguese producer of renewable power from
biomass, and so taken a leading role in building solutions for the climate challenge. The two Biomass Power Plants (BPP): at the
industrial complexes Aveiro and Setúbal, and the three biomass co-generation plants (Aveiro, Figueira da Foz and Setúbal) give
the Company a consolidated lead in this area.
In 2023, the volume of our power sales in Portugal fell by 4.5% in relation to the previous year. In total, we account for 3.2% of
all electricity produced in Portugal
37
and 37% of power generated from biomass in the country. Because the manufacture of pulp
and paper require thermal energy in the form of steam, it is important to note that we have highly efficient co-generation facilities
that allow for simultaneous production of steam and electricity, the latter being mostly sold to the national grid.
The renewably sourced power produced by Navigator's biomass cogeneration plants is certified with Guarantees of Origin (GO),
issued by REN as the Guarantee of Origin Issuing Body (GOIB), certifying the power's renewable source. In 2023, the GOs
generated helped Consumers of this power to cut their scope 2 (market based) carbon emissions.
WHAT NEXT?
• Implementation of the Energy Efficiency Action Plans at each of the mills, under ISO 50001 (2024 and subsequent
years, on an annual basis).
• Completion in 2024 of the four Solar projects started in 2023 and technical and economic analysis of further
opportunities in the same field.
• Implementation of the projects approved by the RRP, in particular improvement to the cogeneration plant through
implementation of a new back pressure turbine in Figueira da Foz and implementation of a new high efficiency
cogeneration plant at the Aveiro Complex (2025).
37
National figures on the basis of 2022 data from REN – Rede Energéticas Nacionais.
Annual Report 2023 · Management Report 150
6.3.3. Sustainable forestry management and conserving biodiversity
GRI 3-3, 304-1, 304-2, 304-3, 304-4
ESRS SBM-3, MDR-A, MDR-M, MDR-T, E4-2, E4-3, E4-4, E4-5, S2-1, S2-2, S3-1, S3-2
We have adopted responsible management of our forest holdings, making biodiversity conservation a
priority concern, and we work actively to encourage adoption of this model by our partners. Increasing the
area of well-managed and certified forests in Portugal is one of our priorities.
OUR IMPACTS
107,871 ha
73%
7.3m
Forest area under management
38,
corresponding to 1.2% of the area of
mainland Portugal
Eucalyptus
9% other species
18% other forms of land use
Plants produced for renewal of
Portuguese woodlands
100%
69%
92.1%
Forest area under Navigator's
management in mainland Portugal and
certified under the FSC
®
and PEFC
schemes
39
Wood used from woodlands
with certified forestry
management
Wood suppliers with chain-of-
custody certification
15 thousand
People reached by the Forestry Producers
project
€9.61m
Investment in fire prevention
and support for firefighting
1,903 ha
Approx. area burned under
management corresponding to 1.76%
of total areas in mainland Portugal
121
Registered members of “Clube Produtores
Florestais” (Forestry Producers Club)
12.19%
of the area under management
classified as Conservation
Interest Areas (managed for
conservation purposes, and not
for production)
4,420 ha
classified as protected habitats by the
Natura 2000 Network
191 ha
ecological restoration or rehabilitation
projects, including 110 ha on Zambujo
estate
1,057
species and sub-species of
flora identified in our forest
holdings
253
species of fauna identified in our
forest holdings
38
Navigator also manages 1,062 hectares of forests in Galicia (Spain), 153 hectares in the Azores, and approximately 14,000 hectares in Mozambique.
39
FSC
®
License no.: FSC
®
-C010852; PEFC License no.: PEFC/13-23-001.
Annual Report 2023 · Management Report 151
We are aware of the environmental and socio-economic impacts of our operations. Despite the impacts that forestry
plantations in which one species predominates can have on the environment, like any other human activity, there is growing
recognition that responsible and balanced management of planted forests, such as that practised by Navigator, can play an
important role in the planet’s sustainability - by protecting soils and water, improving air quality and mitigating climate change
40
(Chapter 6.3.2), among others.
There may be negative impacts for local Communities, as a result of operations in the field, such as damage to public
infrastructure, caused by the use of machinery and vehicles. However, we should also stress the positive impacts generated by
our operations, as forests and forest-based products make a positive contribution to the economy and to society. This impact can
be seen in the creation of employment - resulting from forestry activities - and in the generation of income for landowners,
encouraging the management of other woodlands and areas, for farming and pasturage use, as well as local economic activities
associated with forests, such as grazing and beekeeping.
In view of the importance of forest management and biodiversity conservation to our operations and business model, our 2030
Roadmap (Chapter 6.2.4) lays down three commitments:
• Ensure sustainable use of soil and forestry resources, including biodiversity. Our goals include: contributing to a
reduction of rural fires, aiming to keep the burned area under Navigator's management at below 1% each year, and
creating a positive impact on biodiversity (or net gain), through conservation work in line with the Company’s
strategy and the commitments made through act4nature Portugal.
• Ensure that all wood is obtained from credible sources (FSC
®
or PEFC certification schemes, or controlled origin). Our
goals involve: promoting certification of the chain of custody of all our wood Suppliers by 2030 and ensuring that the
wood consumed by the Company comprises 80% certified wood by 2030.
• Provide a safe and healthy environment for workers, guaranteeing their welfare, including the aim of providing OHS
(Occupational Health and Safety) training on a continuous basis in forestry operations, for service providers,
Suppliers and operators in the sector, seeking to provide more than 600 hours of training each year.
Our business model is therefore based essentially on sustainable forestry management, with a strong commitment to
certification, prioritising renewal and improvement of forests and protection of natural, social and cultural heritage. Also
fundamental is respect for the rights of workers and local Communities, along the value chain.
In order to mitigate the negative effects of our activities, we systematically identify and assess the environmental and social
impacts of forestry activities, resulting in the matrices used during the planning and execution of operations, enabling us to avoid
negative impacts or to adopt the appropriate measure when these impacts occur. In the course of this assessment we also consult
local Stakeholders, such as the local Community and/or specialists in the different natural, social and cultural factors under
assessment. The communication channels that affected Stakeholders can use, for remediation of the negative impacts of these
operations, include The Navigator Company's official website and the whistleblowing channel
41
. They can also make
40
Sources:
“Substitution Effects of Wood-based Products in Climate Change Mitigation”, Leskinen et. al, 2018, TIG Analysis:
https://efi.int/sites/default/files/files/publication-bank/2019/efi_fstp_7_2018.pdf
– FAO 2016.Forestry for a Low-Carbon Future: Integrating Forests and Wood Products into Climate Change Strategies, FAO Forestry Paper 177, Rome, Italy.
https://researchrepository.murdoch.edu.au/id/eprint/66391/1/I5857E.pdf
41
E-mail PT and ES: [email protected]
Telephone PT and ES: 265 709 000
Email MZ: [email protected]
Annual Report 2023 · Management Report 152
representations in person to the Company’s staff, or else send an email or telephone. In Mozambique, an important role is also
played by the Community Liaison Officers (Chapter 6.4.3).
We anchor our work in creating and sharing knowledge and in establishing partnerships along the value chain - with Forest
Landowners and Forestry Associations, Business Associations, Suppliers, Local Authorities and other Community bodies.
We invest in programmes to support the expansion of sustainable and certified forestry management, and to help forest
landowners, well beyond the woodlands under our own direct management, in keeping with our ambition to reach a larger
number of landowners and encourage them to adopt good practices and to invest in conservation of the natural and cultural
heritage in our countryside. These programmes are also designed to protect forests and Communities from wildfires. Fires have a
severe impact on ecosystems, on the Group and its Stakeholders, and we therefore invest heavily in preventing and defending
forests against fires.
The conservation of biodiversity and of ecosystem services is an integral part of our responsible forestry management
model. Healthy ecosystems provide a varied range of services and have a positive influence on our well-being, health, and on the
generation of employment and wealth for communities, whilst meeting their needs. The important supporting role played by
biodiversity in the balance of Nature means that conserving biodiversity is an important contribution to mitigating and adapting to
the effects of climate change.
We also attach great importance to the more visible aspects of Navigator's active policy in wildlife conservation, consisting of
public information and awareness raising initiatives, through which we share our experience and case studies in our own
publications, editorial projects and events for the media and different Stakeholder groups. Our work with forestry operators
encompasses technical issues relating to know-how transfer on topics related to eucalyptus husbandry, planning of forestry
operations, information management (geographical information systems (GIS), document systems and data bases) and decision
making, as well as dissemination of information on occupational safety and biodiversity conservation.
Annual Report 2023 · Management Report 153
Approach to sustainable forestry management (includes biodiversity conservation)
FOREST CERTIFICATION AND SUPPORT FOR FORESTRY PRODUCERS
FOREST FIRE PREVENTION AND SUPPORT FOR FIRE-FIGHTING
RESEARCH AND FOREST RENEWAL (Chapter 6.5.2)
ASSESSMENT AND MONITORING OF WILDLIFE, BIODIVERSITY AND HERITAGE SITES
MAPPING AND CLASSIFICATION OF CONSERVATION INTEREST AREAS
ASSESSMENT OF THE POTENTIAL IMPACTS OF OPERATIONS
DESIGN AND IMPLEMENTATION OF MANAGEMENT ACTIVITIES TO CONSERVE, ENRICH OR RESTORE THE
FUNCTIONS OF SITES OF CONSERVATION INTEREST.
FOREST AND BIODIVERSITY CONSERVATION LITERACY PROJECTS (Chapter 6.4.3)
Annual Report 2023 · Management Report 154
Sustainable forestry management
Commitment to no deforestation
Navigator's commitment to responsible management of woodlands, in full harmony with their natural and social surroundings, is
also a pledge to take action to counter the forces leading to deforestation and degradation of woodlands, as set out in the Forest
Sector SDG Roadmap, the framework roadmap that inspires the forestry sector's contribution to the Sustainable Development
Goals.
Management of forestry risks is one of the topics we have worked on and communicated, such as through our involvement in the
document published by the Forest Solutions Group, entitled “Forest Sector Nature-Positive Roadmap” and by responding to the
CDP Forest questionnaire, in which we obtained a rating of A- (Leadership) in 2023.
Portucel Moçambique has worked to combat deforestation, which has a significant impact in the country and results from a variety
of factors, including the frequent use of native wood for fuel, for cooking or to make charcoal, and the burning of forests to clear
land for agriculture, thereby impoverishing the soils and reducing their productivity, whilst at the same time perpetuating the
vicious circle of nomadic farming based on slash&burn techniques
42
.
In order to help mitigate this tendency, Portucel Moçambique runs a number of initiatives, including awareness raising in local
Communities, reaching out to people and families in the areas where we operate. In this work, we seek to build know-how and
encourage vigilance as to the impact that practices used by the Community have on natural resources, and we also provide brief
training activities in more sustainable solutions, using resources available locally, such as mulching with cut grass to conserve soil
humidity. In pursuit of the goal of food security in its Social Development Programme (Chapter 6.4.3) Portucel Moçambique runs
an agricultural extension programme aimed at families, which includes training in conservation farming techniques, provision
of improved seeds and hands-on training in demonstration fields for agricultural crops. These initiatives contribute to:
• Better understanding and awareness of good practices in the Community;
• More efficient land use (more productive, for longer);
• Promoting farming as a source of income, a safeguard for biodiversity and a way of protecting critical forest areas,
reducing the use of broadcast burns;
• Enabling our teams to help families and Communities to carry out burns (a deeply rooted practice) under much more
controlled conditions, taking into account factors such as temperature, humidity, wind, slopes and others.
Forest Certification and support for forestry producers
We have embraced our role as prime movers in the improvement and protection of forests in Portugal, undertaking the
responsible management of 107,871 hectares of land in mainland Portugal. We also manage 153 hectares in the Azores, 1,062
hectares of forest holdings in Galicia (Spain) and approximately 14,000 hectares in Mozambique.
We manage our forest holdings in Portugal in keeping with the legal requirements applicable to the sector and other regulations
and policies to which we have signed up voluntarily, the Pan-European Criteria for Sustainable Forest Management, in accordance
with Portuguese Standard NP 4406 (Sustainable Forest Management) and the Principles and Criteria of the Forest Stewardship
Council
®
. Certified forest management allows us to guarantee that the wood used in our products - pulp and paper - is
obtained from forests managed on a responsible basis.
42
Source: FAO 2022, https://www.fao.org/mozambique/news/detail-events/en/c/1473015/
Annual Report 2023 · Management Report 155
We have been certified since 2007, by FSC® and since 2009, by PEFC, and the forest holdings under our management in
mainland Portugal are 100% certified under these schemes.
Our fundamental documents in this area are the Forestry Policy, which we revised and updated in 2023, and the Code of Good
Forestry Practice. We see ourselves as a driving force for expansion of the forest certification process in Portugal, through a
number of programmes to support Forestry Management Certification Groups, Chain of Custody/Responsibility Groups, Forestry
Producers’ Organisations, Companies and Forestry Producers, helping to build a common front in defence of the interests of the
country's forestry sector. We are active as a member of CT 145 - Technical Commission for Sustainable Forestry Management. We
have contributed to a great variety of working parties under this commission, taking part in the drafting of documents and
recommendations on standards, in the field of forestry management, helping to strengthen Navigator’s stance on these issues.
This has been an active and dynamic process, enabling us to update and adapt standards to the realities of Portuguese forests,
with a large number of small and medium-sized forestry producers.
Steps are also taken to respond to the individual needs of forestry partners in Portugal, not limited to only the producers with
which we work. We have several programmes to support forestry producers in Portugal, most significantly the recently
created “Clube Produtores Florestais” (Forestry Producers Club).
In Mozambique, we have taken part in the forestry promotion programme run by the Mozambican Government in Zambézia
province – MOZ-RURAL. This project is designed to increase the income of the beneficiaries in the selected areas, to increase the
aggregate value of micro, small and medium-sized farming enterprises, to increase yields and market access for selected small
producers and to improve natural resource management practices in those areas.
Annual Report 2023 · Management Report 156
Programmes to support forestry producers
Incentive for supply of certified wood
(flat rate of 4€/m
3
)
Initiatives for training and know-how transfer in the field of forestry management and
certification
• Support for forestry management and/or chain of responsibility certification groups (15
groups/organisations of forestry producers);
• Active participation in Portuguese initiatives of FSC® and PEFC
Collaboration on developing the framework of rules under both certification schemes, adapted to
the realities of the Portuguese forestry sector.
• Tec4Forest
In collaboration with RAIZ, this project has transferred technical and scientific knowledge and
provided tools for forestry management, adapted to each organisation, thereby responding more
effectively to their expectations and needs, speeding up implementation of the knowledge acquired
and application of the tools in their forestry management systems. A total of 41 sessions were
held for technicians and producers in 2023, with a total of 474 participants.
On a different front, but equally vital for professional standards in the sector, Tec4Forest has
worked to improve safety in forest operations - the Forest Operatives Programme. The sessions
are customised and held on the job, Company by Company, and worker by worker. Since 2018,
more than 80 companies have been involved in the Forest Operatives Programme. Sessions
totalling over 200 hours were held in 2023, for a total of 67 operatives, with various
improvements recorded in the use of protective equipment and compliance with safety rules
relating to forestry equipment and machinery.
• Premium Programme
Technical support provided free of charge and available to all owners of eucalyptus plantations
(irrespective of any relationship with Navigator), in collaboration with RAIZ. Promotes adoption of
appropriate forestry techniques and better forest yields. There is a strong relational component,
consisting of a technical visit to the property in question, in an operational context. It is arranged
for the technical officer from the external forestry organisation (Forestry Producers Associations or
Certification Groups) with which the producer works to take part in the visit, in order to align
concepts and management criteria, to facilitate implementation of the technical recommendations
and to encourage these officers to also provide technical support in future.
Since the programme started in 2018, technical support has been provided for an area
totalling 8,000 ha belonging to landowners without a direct commercial relationship with the
industry. In 2023, 75 new forestry holdings were added to the programme, representing a total
of 2.052 ha.
Annual Report 2023 · Management Report 157
“Clube Produtores Florestais” (Forestry Producers Club): for the future of the forest
Targets 8.3, 15.1, 15.2, 17.16 and 17.17
This is one of the most innovative initiatives aimed at all those who derive their livelihood from the forest in Portugal. The
“Clube Produtores Florestais” (Forestry Producers Club), launched by Navigator in November 2023, attracted more than a
hundred members by the end of the year. A number that points to the need existing in the country for a scheme to empower
forestry operators and make them more competitive.
“The club came out of a joint effort. We feel we’ve made a contribution to this project and we’ll continue to contribute to what
it will be”. These are the words of Carlos Pais, from the Company Armindo Pereira Pais, Lda., based in Mortágua, one of
Navigator’s wood Suppliers and a founding member of the Club. “All the different partners have been involved and pulled
together”, he adds, showing that the slogan for the initiative – “Working Together for the Forest” – really means what it says.
The Club’s main aims are to increase the area of well-managed forests, to stop land being abandoned, increase the value of
the forestry sector and make it more attractive, thereby leading to rejuvenation. An initiative with an eye to the future and,
despite the difficulties and obstacles, a project that can bring new hope: “We believe it will enable the sector to grow”, says
Carlos Pais. “We hope it can mean better a better business environment and solutions for working together, such as training.
As a whole, Portugal’s forests are sure to bring benefits, starting with a larger area under sound management”, he concludes.
Collaborative action on a large scale is an essential way forward for achieving these goals. A process that also means
investment in empowering and developing the different operators, both through innovation in equipment and also by
attracting, valuing and retaining human resources.
By increasing the area of well-managed forests, the “Clube Produtores Florestais” will also bring environmental and social
gains: a reduction in fire risks, less CO
2
emissions and increased sequestration, promotion of biodiversity, with more
conservation areas, and renewed energy in the economy of inland regions, combating desertification. For all these reason, the
launch of the “Clube Produtores Florestais” was without doubt one of the landmark developments of 2023.
https://clubeprodutoresflorestais.com/
• Better Eucalyptus Project
BIOND (Navigator and Altri) project for promoting good practices for producers and private forest
landowners. The most significant programme was Clear and Fertilise (PLA), with work carried out
on 63,700 hectares up to year-end 2023 and 7,634 forestry producers benefiting (to date).
As a result of the fire risk survey conducted, over the period 2019-2023 the percentage burned
area in PLA areas was 1.8%, significantly lower than the average figure for burned areas in
eucalyptus forests in non-industrial private ownership (5.8%). The Better Eucalyptus project also
includes recovery of burned areas and reforestation of areas in regions dominated by smallholders.
• “Clube Produtores Florestais” (Forestry Producers Club)
This project had 121 registered members at year-end 2023. Mention should be made of the pilot
project for boosting reforestation, designed to reduce unmanaged areas (where the fire risk is
greater). In early 2023, we launched a series of benefits designed to support our member, with
the provision of training plans, a multidisciplinary team, technical training and other initiatives.
Technical information developed internally by Navigator has also now been made available to
members, in 27 technical documents, available for consultation.
Annual Report 2023 · Management Report 158
Our links to the community of Forestry Producers were strengthened in 2023 through a variety of other initiatives designed to
encourage the sharing of expertise and skills with forestry Stakeholders. These initiatives and contents are developed jointly
by RAI and the Forest Development sector of Navigator Forest Portugal.
Initiatives have included participation in trade fairs in the sector, and content production and publication:
• New leaflet on “Recommended Good Practices”, now devoted to Forestry Operations, complementing publications in
previous years on the installation and maintenance of eucalyptus plantations;
• New Technical Consultancy content in the Forestry Producers Magazine, in particular on “How to select saplings?” and
“How to assess the quality of eucalyptus plants”;
• On the e-globulus platform, the focus has been on new items, improving functions and producing new content, such as
“e-science” and “Together we’ll care for our health and safety” with new issues.
e-globulus
Forestry Producers
Free-access platform designed to encourage adoption of forestry
management practices appropriate to local conditions. Case-by-base
technical information on fertilisation, land preparation, vegetation control
and several issues contributing to sustainable and efficient management.
This initiative sets out to promote better yields, resilience and
sustainability in Portugal's forests, engaging with eucalyptus sector
operators and thereby contributing to development of rural areas and
boosting know-how transfer.
More than
20 thousand
users accessed platform
850
registered users
More than
82 thousand
Hits (accumulated)
More than
35
reports, events and news items
15 thousand
people reached
3 editions
of magazine with average print run of 15 thousand copies
2 campaigns
to contract forestry land in Portugal and Galicia
200
online content items
9
trade events attended in the agro-forestry sector
111
participants in 3
rd
meeting of forestry producers
https://www.e-globulus.pt/
https://produtoresflorestais.pt/
Annual Report 2023 · Management Report 159
Training is a strategic component of Navigator's development strategy. Organised on a
continuous and decentralised basis, it is centred on participation and sets out to provide:
Working conditions designed to promote integration, development. skills acquisition,
retraining, specialisation and fuller professional and personal lives;
The training needed by services providers, enabling them to meet the required quality
standards and comply with legal obligations.
In forestry operations, this training is provided on the job, addressing environmental and social
issues, providing information on mitigation measures to be considered in respect of the local
environment, as well as questions of occupational health and safety in the corresponding
operations. In 2023, this specific training was provided in Portugal to 512 external forestry
workers. The good practices communicated to service providers are set out in a number of
technical reference documents issued by the Company.
Another front on which Navigator works is in Forestry Development, with training for forestry
officers working for Associations of Forestry Producers and Certification Groups, promoting a
stronger connection with active forestry producers, through the Tec4Forest Programme.
Our commitment to promoting occupational health and safety (Chapter 6.4.2) is also reflected in
our work with the forestry officers and producers. This year saw the second edition of the “Forest
in Fashion” show, after the success of the previous year, and it was again received with
enthusiasm because of the creative way in which crucial messages were conveyed on the dangers
or not using Personal Protective Equipment (PPE), or of using it incorrectly. Held in September
2023, at AGROGLOBAL in Santarém, the initiative consisted of a catwalk show featuring PPE for
rural workers, accompanied by a debate on “The importance of using PPE and the challenges
facing companies with forestry certification”. The event was attended by representatives of
organisations such as the Institute of Nature Conservation and Forests (ICNF) and the Working
Conditions Authority (ACT), as well as from forestry certification schemes. The PPE was modelled
by staff from our partners for this event.
512
External forestry workers
receiving specific training
Annual Report 2023 · Management Report 160
Training in OHS in forestry operations for service providers, Suppliers
and operators
(hours)
Aim: Provide training courses on a continuous basis in OHS in forestry operations for service
providers, Suppliers and operators, aiming to provide more than 600h each year.
Certified wood
Global purchases of certified wood (Portuguese and international markets) in 2023 were slightly higher than the previous year,
totalling 69%. Thanks to Navigator’s programmes to improve yields and encourage forestry certification in Portugal, it was
possible to increase the proportion of certified wood acquired on the national market to 68% (65% in 2022). There was also an
increase of 5 pp in Suppliers of woods with chain-of-custody certification (up from 87% to 92%). Support is provided to 15
organisations, including certification groups, forestry producers' organisations and chain of custody groups; in conjunction with the
support given to producers, this made it possible to achieve these results.
Portucel Moçambique completed its integration into The Navigator Company's chain-of-custody certification, as a new site.
698
544
628
2023 2022 2021
Annual Report 2023 · Management Report 161
Certified wood
Supply of certified wood
Wood suppliers with chain-of-custody
certification
Goal: 80% use of certified wood by 2030.
Goal: promote chain of custody
certification for all our wood suppliers by
2030.
69%
68%
71%
2023 2022 2021
92%
87%
78%
2023 2022 2021
Supply of certified wood
63%
65%
68%
71%
68%
69%
2021
2022
2023
Total - National and international market Portuguese market
Annual Report 2023 · Management Report 162
Fire prevention and support for fire-fighting
Faced with the problem of forest fires and the consequent social, economic and environmental impacts, we have promoted good
forestry practices and invested in prevention, as a way of making the forest holdings under our management more resilient.
Work we carry out on a regular basis:
• Maintenance of paths and fire breaks;
• Control of vegetation;
• Reduction of fuel load and creating areas to halt the spread.
Also with a view to minimising impacts, we have invested in support for fire-fighting, through AFOCELCA, a Forest Protection
company.
During the summer, some of the Company’s Employees are deployed with Afocelca, an organisation through which The Navigator
Company and the Altri Group join forces support fire fighting efforts, with its own Special Rural Fire-Fighting Brigade. In addition
to protecting the forests managed by the two companies, the aim is also to provide assistance within a radius of at least 2 km of
the holdings under their management, protecting the properties of third parties, working closely at all times with the National
Emergency and Civil Protection Authority (ANEPC). This brigade is equipped with around fifty fire engines of various types (light,
heavy and bulldozers), and three aircraft, with a total of around 500 operational personnel. At the same time, we remain an active
participant in projects with various partners (from stakeholders in the forestry sector to universities) seeking to find and test new
solutions for preventing and controlling forest fires.
Our work in defending forests against fires, in coordination with Afocelca, has represented a gain for woodlands protection, thanks
to the optimised deployment of resources, which brings improved operational performance and is intended to reduce the area
burned. In 2023, some resources were relocated on the basis of the results of this project, seeking to keep it up to date and
introducing other variables in order to further optimise the model.
We also provide support for the recovery of burned areas, by taking part in the pilot recovery programme organised by Biond
(Forest Fibers from Portugal), which in 2023 focussed efforts on the municipalities of Mortágua, Pedrógão Grande and Castanheira
de Pêra. This programme sets out to provide technical and financial support for demonstrating good practices, in strategically
selected burned areas, with the aim of:
• Reducing the fire risk, in a post-fire scenarios, where there are already high levels of accumulated biomass and
abandonment;
• Controlling invasive species (acacias) and germinating eucalyptus;
• Restoring the productive potential of burned forests for their owners.
Despite all these efforts, 2023 saw an increase in the burned area in Navigator's holdings in mainland Portugal - up by
approximately 1,613 hectares on 2022. This increase was due essentially to a large forest fire in southern Portugal which affected
a large area under The Navigator Company's management.
Annual Report 2023 · Management Report 163
Forest fire prevention
Investment in forest fire prevention and support for fire-fighting
(m€)
Note: Investment increased in 2023 and it was decided to allocate other costs relating to operations to the prevention account, which now
includes investment in certain land preparation operations for forestation and reforestation, insofar as these help to create a mosaic landscape
better designed to prevent fires. The figures presented for 2021, 2022 and 2023 reflect this change.
Burned forest area under Navigator's
management in mainland Portugal
(% in ha)
Burned forest area under Navigator's
management in Mozambique
(% in ha)
Goal: to help reduce rural fires, seeking to ensure that the burned area under Navigator's
management stays below 1% each year.
The forest fire defence strategy in Mozambique has substantially reduced the area affected by fire, and in Spain no fires were
recorded in the area under management.
9.61
8.35
7.53
2023 2022 2021
1.8
0.3 0.3
2023 2022 2021
0.2 0.2
0.5
2023 2022 2021
Annual Report 2023 · Management Report 164
Portucel Moçambique and the Forest Fire Defence Strategy
Targets 15.1, 15.2, 15.3
In 2023, Portucel Moçambique consolidated its strategy for Forest Fire Defence, through which it has gradually achieved a
substantial reduction in the area affected by fire over the past five years, from 1,373 hectares in 2019 to 33 hectares in 2023
(0.2% of forest holdings).
This progress was achieved through a strategy of implementing measures across all operations, duly followed up and
monitored, including the used of controlled burning (or cold burning), manual harrowing/digging, clearance of paths and fire
breaks, training of forest guards and rapid intervention teams based at various locations, minimising the potential for fires to
spread, placement of beehives around the edges of forests to encourage protection of a family asset, as well as awareness
raising, aimed both at Employees interacting with Communities, and also through campaigns on community radio.
Forest research and renewal
In the field of research and development, we have own forestry and paper research institute
(RAIZ), through which we take part in projects that help to increase yields in eucalyptus
plantations, as well as to improve the quality of the fibre produced and the
management of woodlands (Chapter 6.5.2).
The Innovation and Development sector has helped bridge the gap between research and
operational application in forestry operations, and also in innovative processes and products
for forest husbandry, forest operations and for new models for relations with forestry
producers. It has addressed the efficiency of operations, digital transformation of processes
and adaptation of new equipment and production factors to integrated forestry
management.
In addition, our active policy of renewing and improving Portugal's woodlands requires
production of a large quantity of forestry plants. This output has been assured by our
nurseries, Viveiros Aliança, S.A.. Producing 7.3 million plants in 2023, these nurseries have
met the needs of the Company’s forestation/reforestation activities in Portugal and those of
other Portuguese producers. Approximately 66% of the plants produced were for internal
consumption, and the remaining 34% sold on the market.
In Mozambique, Portucel Moçambique has worked in several fields with RAIZ, such as on the
Genetic Improvement Programme, in the identification and genetic certification of the
materials used by the Company, or in the area of Pests and Diseases, both in forest
operations and in the production of plants in nurseries. The Luá Nurseries supplied 1.3
million plants in 2023, with 66% of this output destined for internal use on the Company's
plantations (production and trials) and 34% for external partners.
7.3m
Plants produced by
Viveiros Aliança
66%
For Navigator’s
forestation/reforestation
activities in Portugal
34%
Sold to the market
Annual Report 2023 · Management Report 165
Biodiversity conservation
Within the assets under our management in mainland Portugal we manage woodlands
classified as Conservation Interest Zones (CiZ), which serve as an important habitat for a
diverse range of flora and fauna, including species with varying conservation and protection
status. These areas are accordingly managed for conservation purposes only. These zones
also include Areas of High Conservation Value (AHCV), an exclusive concept of the FSC
®
certification scheme, which enjoy special safeguards in view of the presence of environmental,
social and cultural heritage of exceptional value.
It should be noted that our pro-biodiversity approach is not applied only in CIZs. This work is
carried out across all our holdings, and the plans for each forestation/reforestation project
define from the outset the conservation areas to be protected.
In this way, we have pursued a planned strategy of biodiversity conservation and promotion
since 2008, with the aim of conciliating production aims with conservation, whilst also
responding to forest certification indicators. We have developed a no net loss strategy,
meaning that there will at least be no biodiversity loss as a result of activities, or, whenever
possible, we will create a net positive gain in the biodiversity present on our holdings and in
its state of conservation.
The Company’s activities take the Habitats and Birds Directives into account, and we
consistently assess, identify and map the species and habitats existing and potentially existing
in the estates managed. We accordingly adopt measures to conserve species (e.g. when
necessary, adjusting the timing of operations to avoid breeding cycles), when present or
potentially present on the land. We also ensure protection of the Natura 2000 Network
habitats, maintaining or improving their state of conservation, when possible (e.g.
restoration), well as protecting or improving the state of conservation of the habitats of
species, such as by creating buffer zones around water courses.
We invest continuously in monitoring and assessment, active protection and
conservation (such as rehabilitation or restoration or natural habitats and ecosystems),
benefiting species that use them for their ecological functions of feeding, shelter or breeding.
These also serve as ecological corridors, enabling species to disperse naturally and permitting
genetic interchange between populations.
To support this strategy for conserving biodiversity, we have Biodiversity Assessment
Techniques Manuals and field reports on monitoring and conservation, as well as
Conservation Action Plans (CAP), with contributions from experts.
The approach we use means we enjoy access to a significant set of data on relevant wildlife to
be preserved in the territory, also enabling us to identify, avoid, mitigate and minimise
negative impacts (direct or indirect) on biodiversity, as well as to boost the positive impacts.
We were one of the original signatories of the act4nature Portugal initiative organised by
BCSD Portugal, for which we sit on the Advisory Board. Set up in 2020, this initiative sets out
to mobilise and encourage companies to protect, promote and restore biodiversity and
ecosystem services, helping to halt and reverse their loss by 2030. This is one way of helping
to integrate natural capital into business models and value chains.
12.19%
of the area under
management classified as
Conservation Interest
Areas (managed for
conservation purposes,
and not for production)
4,420 ha
Classified as protected
habitats by the Natura
2000 Network
Read out
Annual progress report
on the act4nature
Portugal commitments
Annual Report 2023 · Management Report 166
We renewed out commitment to this initiative in 2023, by updating and setting new targets,
with the ultimate aim of creating a positive impact on (or net gain in) biodiversity. These
targets are focused on:
• Execution of annual species and habitat monitoring plans and work to maintain, improve
the state of conservation and restore Biodiversity and Ecosystem Services (B&SE) in the
forestry holdings managed by the company, in the areas of conservation, rehabilitation
and ecological restoration;
• Integrating B&ES Conservation into corporate strategy, in line with available scientific
knowledge and voluntarily accepted commitments;
• Establishing a simplified framework, in line with the key elements of the Natural Capital
Protocol, for systematic assessment of B&ES impacts and dependencies, testing the
approach in a pilot project.
• Running training programmes with content relating to B&ES conservation topics and raise
awareness of good business practices, for internal and external employees.
In 2023 we provided a four-hour training course of how to identify and characterise flora,
vegetation, habitats and plant biodiversity in Portugal. The training was attended by 28
internal Employees from different Company divisions (including RAIZ) and six external
Employees.
We were invited this year to take part in a think tank to design the 2030 European
Biodiversity Strategy in terrestrial systems in mainland Portugal.
This invitation arose in the course of the Natura Connect project (Designing a Resilient and
Coherent Trans-European Network for Nature and People), funded by the European Union.
The think tank brings together representatives of civil society and business, NGOs and several
public authorities, and is supported by the Ministry for the Environment and Climate Change.
Another development was the visit by the Wildlife Conservation Society (WCS) to forestry
holdings managed by the Company, in order to show how we conserve biodiversity in
mainland Portugal, continuing the exercise in sharing experiences that started in Mozambique.
This was an opportunity to discuss the lessons learned and approaches that could improve our
current processes, under the COMBO+ Programme (Chapter 6.4.3).
Biodiversity monitoring
The first step to habitat restoration and rehabilitation is to obtain reliable information on the
existing wildlife, meaning that biodiversity monitoring is an essential activity.
By 2023, 1,057 species and sub-species of flora and 253 species of fauna had been identified, in
the forestry holdings managed by Navigator in mainland Portugal, along with 51 types of habitats
included in the Habitats Directive. This points to a small increase in the types of habitats present
and the species identified, reflecting increased efforts in the area monitored.
1,057
species and sub-species
of flora identified in our
forest holdings
253
species of fauna identified
in our forest holdings
Annual Report 2023 · Management Report 167
The monitoring programme is carried out annually. As it is not possible to assess all the properties individually, a representative
sample is chosen for which we assess the habitats, the type of vegetation, the species present and potential species, and the state
of conservation. Experts are hired to help with the monitoring and the findings enable us to adjust the conservation measures and
strategies to be adopted in the following year. In 2023, 23 properties all around Portugal were monitored.
No. of IUCN Red List species and
national conservation list species with
habitats in areas affected by
Navigator’s operations (Mainland
Portugal)
2023
2022
2021
Critically endangered
5
5
4
Endangered
17
13
13
Vulnerable
43
39
36
Near threatened
26
24
21
Least concern
192
195
182
An important find was the existence of a well-conserved rhododendron habitat (a type included in the Natura 2000 Network
Directive), along a water course in Oliveira de Azeméis. This is a rare species, endemic to the Iberian Peninsula, and a relic from
ancient Laurissilva forests. These communities are normally found in two clusters, one in the Vouga valley (Cambarinho woods
and other dispersed areas) and in the Monchique hills, and other smaller ranges to the north, making this an important discovery.
Monitoring of birds nesting on properties managed by the Company also yielded valuable findings: of six nesting sites of Bonelli's
eagle (Aquila fasciata), category VU - vulnerable
43
, four were found to be successfully occupied, resulting in two young at each
site; at the black stork (Ciconia nigra) nest, category EN – endangered
42
, three juveniles were observed. Two nests were also
recorded at our Espirra Estate, one of the booted eagle (Hieraaetus pennatus) – from which one fledgling emerged –, and another
probably occupied by sparrowhawks (Accipiter nisus), both species classified as LC – of little concern
42
.
Promotion of biodiversity and ecological restoration
Restoration or rehabilitation work was carried out in 2023 over approximately 191 hectares, in order to maintain or improve the
state of conservation of natural and semi-natural habitats, including 110 ha on the Zambujo estate.
The focus remained on the projects in progress, insofar that restoration goals are always long term. The following table highlights
the most important projects currently under way. Other important developments in 2023 were the start of the Life Serras do Porto
project, to adapt the Serras do Porto uplands to climate change, and the sowing of plants to attract pollinators to the Espirra
Estate.
43
According to the Red list of birds in mainland Portugal 2022
Annual Report 2023 · Management Report 168
Main action taken and projects under way
Recovery of the Monchique oak
The Monchique oak (Quercus canariensis) is classified as critically endangered on the Mainland Portugal
Vascular Flora Red List, due to continued decline of the population in Portugal.
The opportunity to recover this species grew out of the RRP TransForm project entitled “p1.1 Genetic
improvement, production and conservation of forestry reproduction materials”, which sets out to improve the
resilience of Portuguese forests in the face of the effects of climate change. Running from 2022 to 2025 and
jointly coordinated by RAIZ and the National Institute of Agrarian and Veterinary Research (INIAV), in
partnership with Navigator’s forestry sector, the Castelo Branco Polytechnic Institute and Viveiros Aliança, this
activity is classed in the RRP TransForm project as “Genetic conservation and population recovery in
threatened native species”.
The first field visits took place in 2023 with support from BIOPOLIS-CIBIO and the University of Porto
Botanical Gardens, with the following aims: to collect genetic material, characterise and map the species,
molecular characterisation of selected trees, using genome tools to identify individuals characteristic of the
species, analyse the potential degree of hybridisation with the Portuguese oak, and characterise the diversity
of the Portuguese sub-populations of this species. The material collected is at Viveiros Aliança and the Castelo
Branco Polytechnic Institute for vegetative propagation trials.
Zambujo reCover Project – forest rehabilitation and soil protection
Launched in later 2022 in partnership with RAIZ, our Forestry and Paper Research Institute, this project has
an overall budget of 225 774.79 euros and is funded by the COMPETE 2020 Programme, under the measure
“Support for climate transition/Resilience of territories in the face of risk: Fighting desertification through
reforestation and action to increase the fixation of carbon and nutrients in the soil” (REACT-EU/FEDER) .
Funded by the COMPETE 2020 Programme, the aim is to carry out ecological restoration;
work over an area of more than 110 hectares, in the municipality of Idanha-a-Nova
(Portugal), in the Zambujo Management Unit. The project goals include improving resilience to the effects of
desertification climate change and fires, by promoting stands of trees and shrubs with an ecology adapted to
drought and arid conditions, with an emphasis on holm oaks (Quercus rotundifolia). Most of the ecological
restoration work in the field was carried out over the course of 2023: Phase 1 consisted of felling eucalyptus
and devitalising the stumps, planting holm oak, selective clearance of vegetation to promote regeneration of
forestry and pre-forestry specific characteristic of holm oaks woodlands, and pruning to help the existing trees
assert their dominance. Phase 2 will consist of monitoring how the restored area evolves and intervening as
necessary to achieve the ultimate aims, seeking to measure the positive impact on biodiversity. Considering
the different states of conservation of the ecosystems at the project site, an area of around 40 hectares was
converted from production forest to holm oak woodlands, and in the remaining area, and in the rest of the
intervention area, work was done to improve the state of conservation of the naturally occurring holm oak
woodlands.
Logistical support for the FORCE project – Forest Certification (FC) in Eucalyptus Plantations
Following on from what was the WildForests project, we collaborated with the Faculty of Science of the
University of Lisbon and the University of Aveiro on the FORCE project - FORest CErtification as a tool to
Annual Report 2023 · Management Report 169
preserve vertebrate biodiversity in exotic forestry plantations (2023-2026). The main aim of the project is to
assess whether forest certification can be a tool for ensuring the functional and conservationist role of
eucalyptus plantations for vertebrates.
Navigator has provided logistical support for this project, and some of the project sites are located on our
properties in Penamacor and Penha Garcia (Portugal).
Sowing plants to attract pollinators to the Espirra Estate
Faced with declining number of insects and in view of their importance for pollination and the objectives for
reversing this decline, plants were sown at the Espirra Estate (Portugal) to attract pollinators, in an initial trial
designed to assess the impact on species diversity and growth.
The results were monitored by the Clube Xzen Association. In the areas seeded, almost twice as many
species were detected than in those not seeded. The insects observed included several true bugs
(Hemiptera), butterflies (Lepidoptera) and ladybirds (Coleoptera), due to the greater number of flowers. The
areas seeded presented a higher number of individuals and nearly twice as many species as the area not
seeded, indicating that the sowing of forestry species considerably increased biodiversity at this site.
Off-road cycling, carnivorous plants and salamanders in the Serras do Porto Park
Targets 13.1, 13.3, 15.1, 15.2, 15.5, 15.8, 17.6, 17.7
Especially at weekends, the Serras do Porto Park is filled with walkers and cyclists, singly, in families and in groups. The rich
ecology and landscape of the Park are already part of their lives, and they also know that on a lucky day they may encounter a
rare species, such as a carnivorous plant or a species of salamander, difficult to find elsewhere in the country.
João Melo Bandeira is Navigator’s Head of Forestry Production and Operations and understands the reason for the Park's
success, as he has been involved in its forest management projects: “The Park stretches over 6 thousand hectares, 22% of it
is managed by Navigator, on land it owns or rents, much of it for decades. We are conciliating production and conservation, as
these are two components of carefully tended forests.”
The Park is a clear example of what can be done when different uses and aims are considered, thinking both of the forestry
producers operating here and of the people who use the park as somewhere to relax or exercise, by signposting footpaths and
clearing undergrowth to protect cork oaks and arbutus, ensuring the species are preserved, at the same time as reducing
vulnerability to fire.
The Serras do Porto Park is the largest wooded area in the Porto Metropolitan Area, covering six upland ranges and straddling
the municipalities of Gondomar, Paredes and Valongo. João Melo Bandeira has no doubt that a virtuous circle has been created
in the area through a management approach that protects forests: “When protection beings positive effects, people start to
like these areas, and they attach more importance to protecting them.”
Annual Report 2023 · Management Report 170
Cultural treasures protected in Navigator forests
Target 11.4
The forest holdings managed by The Navigator Company (approximately 108,000 hectares) are home to 291 heritage sites,
some of them hidden away, but all of them clearly identified. Active measures are taken to protect all these sites, as part of
the Responsible Forestry Management approach implemented on a daily basis by the Navigator Group. This work has been
carried out for decades, but it has received growing attention in recent years.
The cataloguing of these cultural assets, which are mostly architectural or archaeological heritage sites, some of them officially
listed, was painstakingly updated in 2023, standardising and improving the information on each site. This work is crucial,
because the resulting inventory enables the Forestry Management Division to take into account the protection of the heritage
sites identified (listed or unlisted), in each forestry project or operation.
All forestry operations are planned so as not to undermine in any way the conservation of these sites. One of the measures
adopted is to establish a protection strip around them where no tillage is permitted. In addition, forestation and reforestation
work may be monitored by a certified archaeologist and, whenever justified, more specific protection measures are adopted, in
line with suggestions and guidance from specialists.
“Public archaeology” to preserve our common heritage
Archaeologists have conducted prospection work over more than 4,000 hectares since 2013. Gabriel Pereira, one of the
archaeologists involved in the prospection work requested by Navigator, considers the Company “a fairly cautious
organisation” in these matters: “It has acted very conscientiously, both in situations where the Company has flagged up
something that might point to the existence of a site of interest, and in cases where constraints have already been identified
by the public authorities.”
Gabriel has provided consultancy services to the Company since 2006, above all in northern and central Portugal. He has
clocked up several “finds” in the course of this work. “I remember, for instance, a megalithic monument identified on a
property in Póvoa de Lanhoso, in 2017, in the preliminary stages of forestation. Navigator took on the task of looking after this
monument, dating back more than three thousand years. It is now accessible, identified and cared for”, he recounts. This was
an especially interesting case, in Gabriel Pereira's opinion, because of the involvement of the local community: “The Company
took great pains to safeguard the monument and we were able to take what we call public archaeology approach. A group of
teenagers helped with the fieldwork over several weeks, in order to make the most of the find.”
Gabriel Pereira believes that protecting our cultural heritage is everyone’s responsibility, and so this type of involvement is
always desirable: “Because it's an outstanding opportunity to educate people about their heritage, at the same time as
ensuring that the archaeological site is preserved”
The legend of the Serra de Pias, and respect for intangible heritage
Heritage includes intangible heritage, which is often just as valuable for communities (or more so) as an officially endorsed
archaeological find Navigator is also sensitive to the importance of its conservation. This is why, in the municipality of Paredes
(district of Porto), it has classified an area in the Serra de Pias uplands, very special to local people, as having “High
Annual Report 2023 · Management Report 171
Conservation Value
44
”. Situated on a property managed by the Company, the site, which gave its name to the Serra de Pias
(“Basins”), due to the concave rock formations, where rainwater accumulates, lies behind a legend passed down over the
generations.
According to information on the website of the Serras do Porto Park, to which the Serra de Pias belongs, this legend can be
traced back to the eighteenth century. In periods of dry weather, the local people would make a procession up to the rocks.
They would dry the “basins” with linen cloths and offer up prayers. As they returned down the hill, rain would start to fall.
“They say there’s always water there”, says Fernando Santos, chairman of the civil parish council in Aguiar de Sousa. “The
older folk still remember the processions to pray for rain. The site is part of the heritage of the parish and the Serras do Porto
Park, and it's important it should be accessible. Since the old Portucel days, the paths have always been clear”.
Although the tradition of processing to the “basins” to pray for rain appears to have died out, the legend is still part of local
traditions, and the site still attracts visitors. “Some ten years ago, they put up the statue of a saint, but that’s not what makes
it a special place. The processions date back much further. Recently, more people have been visiting because there are
footpaths nearby”, says Fernando Santos. By assigning High Conservation Value status to the site. Navigator ensures that the
paths leading to it are kept in a good state of repair, respecting the value that the community attaches to the rock formations.
WHAT NEXT?
• Forest certification at Portucel Moçambique (by 2025).
• Contribute to development of technical expertise in the sector, helping to develop a vocational training centre entirely
dedicated to forestry (2024-2030).
• Contribute actively to development of new silviculture and forestry development solutions through the initiatives
envisaged in the TransForm Project (by 2025).
• Broaden the reach of Navigator's genetic improvement programme, offering more alternatives adapted to climate and
plant health challenges, with the potential to boost yields for the Company and all producers (by 2030).
• Continue the biodiversity conservation projects under way, including continuous wildlife monitoring and ecological
restoration.
• Conclude approach to integrating B&ES conservation into corporate strategy, in line with available scientific knowledge
and voluntarily accepted commitments (2024).
• Start the process of reviewing disclosure of nature-related information, in line with the recommendations from the
Task Force on Nature-related Financial Disclosures (TNFD) (2024).
• Establish a simplified framework, in line with the key elements of the Natural Capital Protocol or other guides, for
systematic assessment of B&ES impacts and dependencies, testing the approach in a pilot project (2026).
44
Classification in line with the criteria of the FSC
®
(Forest Stewardship Council®) certification system, requiring additional protection measures, including more regular
monitoring.
Annual Report 2023 · Management Report 172
6.3.4. Water management
GRI 3-3, 303-1, 303-2, 303-3, 303-4, 303-5
ESRS MDR-A, MDR-M, MDR-T, E3-1, E3-2, E3-3, E3-4, E3-5
From forestry to manufacturing, The Navigator Company addresses water use in keeping with a strict
commitment to responsible management. Reducing use and increasing circularity of use are two priority goals
that we have succeeded in achieving with new measures, on multiple fronts.
OUR IMPACTS
down 2.4%
21.2 m
3
/t
Water withdrawal (vs. 2022)
Specific water use
45
in industrial operations in Portugal
(up 11.2% on 2022)
78%
down 5.1%
Water returned to environment
Specific water use in industrial operations in Portugal
vs. 2019 (baseline for 2030 target)
45
Takes into consideration volume of water withdrawal by total manufacturing output.
Annual Report 2023 · Management Report 173
At The Navigator Company, we use water resources in operations from forestry through to manufacturing. We recognise that
rainfall patterns in the Iberian Peninsula have changed in recent years and as such the water scarcity index in the various
Hydrographic Regions where the Company operates has worsened, especially south of the Tagus. We are closely monitoring the
potential impact of climate change on water resources, with a view to assessing its impact on the continuity of our business. We
have also monitored the drafting of the management plans for the hydrographic regions in which our plants are located in
Portugal, through representation on the respective Hydrographic Region Boards, and kept abreast of research assessing the
availability of water, now and in the future, and determining the scarcity index in each basin and sub-basin.
We have identified several water-related risks to industrial and forestry operations, such as physical risks (acute and chronic),
such as droughts, water shortages, water stress, floods, saltwater intrusion and rising sea level, as well as transition, regulatory
and technological risks. The main risks occur both in our supply chain and in our own use of the resource.
We also analyse the financial impact of climate risks on water management in connection with the project currently under way to
implement the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD) (Chapter 10.6).
It is therefore essential to ensure that our operations do not constitute an additional risk factor for the environment and
surrounding Communities, and water management is one of the key issues for the Community Monitoring Committees (Chapter
6.4.3), whose contributions we incorporate in the design of water management plans and actions, in particular in developing our
Water Use Reduction Programme (described below).
We have several mitigation and adaptation measures implemented and in progress, in order to address the risks identified
and to cut use of this vital resource (as detailed in the following sections).
Our commitment to responsible management of water resources considers the quantity withdrawn, but also the quality of the
water discharged. Our 2030 Roadmap (Chapter 6.2.4) therefore contains the following objectives in relation to industrial
operations in Portugal:
• To reduce specific use of water by 33%, taking 2019 as the baseline, and to propose solutions that will lead to
greater efficiency in water use.
• To reduce the organic load in our effluents by 10%, per ton of output, by 2030, taking 2022 as the baseline.
In 2023, we also adopted the aims of monitoring the impact of production forests on water management and of studying the
potential for reducing water consumption at our nurseries. In relation to Mozambique, the aims of monitoring the impact of
production forests on water management are part of the plan for the next three years.
Annual Report 2023 · Management Report 174
Overall performance data
Navigator's industrial processes are responsible for the vast majority of the water intake - accounting for 96.9%. It should be
noted that in 2023 the Group started to report water intake for forestry operations, which accounting for the remainder of total
water withdrawal.
The Company is also responsible for treatment of industrial effluents, using WWTPs equipped with the best available technologies.
In 2023, 78% of water was returned to the natural environment in the form of treated effluent.
Total water withdrawal was also down by 2.4% in 2023 in relation to the previous year, as a result of lower output. This is
reflected in an increase in the specific business indicators (see the explanation in “Industrial operations”).
Water withdrawal by type of activity
(megalitres)
Forestry operations
3.1%
Industrial
operations
96.9%
61,989 ML
Water
withdrawal
Annual Report 2023 · Management Report 175
Breakdown of water withdrawn
(megalitres)
Water use
(megalitres)
Specific use per unit of turnover
(ML/M€)
2023
2022
2021
Total water withdrawal
(ML – megalitres)
61,989
63,503
65,897
Turnover
(million euros)
1,953
2,465
1,596
Specific use
(ML/million euros)
31.7
25.8
41.3
Note 1: The figures presented refer to industrial and forestry operations in Portugal, as well as industrial operations in Spain and forestry operations in Mozambique.
Note 2: The figures for Mozambique include only nursery operations and are not available for 2021.
Note 3: Specific water use considers volume of water withdrawal per unit of turnover.
Note 4: See the GRI Table for methodological information on the calculation of indicators (GRI 303-3, 303-4 and 303-5).
Surface
water
35.138 ML
57.3%
Groundwater
26.620 ML
42.9%
Acquired from third parties
231 ML
0.4%
61,989 ML
Water
withdrawal
61,989
48,610
13,378
63,503
52,161
11,343
65,897
54,302
11,595
Water withdrawal Effluents produced Water consumed
2023 2022 2021
Annual Report 2023 · Management Report 176
Forestry operations
The strategy for water resource management is guided by goals and targets which are incorporated in the forestry
management model adopted by the Group, in particular:
• Prevent negative impacts on water resources and work for positive impacts;
• Conserve biodiversity
• Contribute to integrity of riparian ecosystems and to the provision of their services.
The criteria for implementation of our strategy for protection, recovery and/or maintenance of water resources, are
uniform across our operations in Portugal and are reflected in good management practices, from planning through to execution
and monitoring of activities.
This strategy is put into practice through various management instruments and is communicated in a simple and clear way to
Service Providers who carry out operations in the field through training on the work front.
Before we start forestry operations on any new site and in operations to apply plant protection products, it is standard practice to
conduct a comprehensive local assessment, which includes identifying water points, bodies of water, water courses and habitats.
Protection strips are established around water courses in order to reduce disruption to the soil, preserve riparian gallery forests,
conserve habitats and improve water quality. To this end, the forestry management practices adopted by the Group divide into
two types (protection/rehabilitation/restoration and maintenance), both based on the precautionary principle.
The fundamental principle of water resource management is to prioritise protection over rehabilitation (because it is more
effective to conserve an existing ecosystem than to artificially reinstate one), thereby reducing the use of more complex and more
expensive interventions. Even so, when a given site is in need of rehabilitation, the objective is for it to return as close as possible
to its natural state, so that it can achieve its potential.
Since the water resource management strategy was incorporated into the forest management model adopted by the Company, a
total of 2,645 ha was identified (up to year-end 2023) as protection areas for water courses and other wetlands.
Annual Report 2023 · Management Report 177
Main measures for reducing water withdrawal in forestry operations in Portugal
Increased R&D in relation to forestry practices for conserving water in the soil:
• Drip fertigation trials are one example of our current projects and seek to find solutions to mitigate
wood yield losses in areas where water is scarce and where water use is more efficient. It is important
to note that these scientific trials comply with relevant legislation and are subject to interruption in
situations of extreme drought, thereby prioritising environmental responsibility and a precautionary
approach in the face of adverse conditions.
Increased R&D to study and monitor drainage basins:
• Research project, in partnership with the University of Aveiro, in which instrumentation is being trialled
in two basins to monitor water availability (quality and quantity), seeking to understand the dynamic of
the hydrological response over the development cycle of forest stands. These data are also being used
to feed hydrological modelling (with the SWAT model – Soil and Water Assessment Tool). The project
has already made it possible to calibrate the hydrological model, and to identify, on a spatial scale,
areas within the basin where water availability is greater.
Search for solutions – genetic materials and practices – that make for greater resilience to water
scarcity:
• Genetic improvement programme consisting of R&D to develop the best individuals for plantations,
increasingly geared to dry conditions and tolerance of pests and diseases. The materials in production
are reviewed annually and new recommendations are studied, which can include introducing new
genetic materials. We are also investing continuously in our understanding of the influence of the soil
and climate on the production capacity of forest stands and in studying forestry practices geared to
local conditions, considering not only plant growth but also conservation and increased water
retention in the soil. Particularly for sites in Portugal where water is most scarce, research has been
conducted with water retention polymers applied when installing plantations, to verify their effect on
plant resilience during the early stages in the field.
Alteration of irrigation methods at Viveiros Aliança:
• Implementation of drip irrigation, to minimise water losses and reduce consumption. Between 2022 and
2024, irrigation of approximately 1.2 ha, resulting in a total saving of 18.5 thousand m
3
. In addition, the
installation of an ultrasonic flow meter will make it possible to quantify drainage losses, with real time
information, and plans are being considered for implementation of a circuit to reuse this water in social
areas, in particular for watering gardens.
Annual Report 2023 · Management Report 178
As a result of the R&D work under way and as a way of adding value to knowledge, projects have been presented in a number of
forums (such as Tecnicelpa 2023) and scientific articles have been published, including a study of the effect of the
construction of terraces on water retention and conservation.
Also in the field of forestry management, a number of relevant initiatives have been implemented in our venture in Mozambique:
• A new Water Quality Monitoring Protocol, designed in partnership with RAIZ, with the aim of identifying and
presenting a series of actions which enable us, from a risk management approach, to determine the potential impact on
drainage basins of forestry activity, as well as of human subsistence activities (such as farming, bathing, washing
clothes), carried out by people and communities who share the same landscape/drainage basins in which operations take
place;
• Scheduling of planting activities in rainier seasons, thereby reducing irrigation needs;
• Trials/exploratory testing of the use of water retention polymers so as to assess the benefits of implementing this
technique in eucalyptus plantations and also to assess economic feasibility, in comparison with conventional planting, with
a view to more efficient irrigation at the installation stage in order to ensure high rates of survival and homogeneity in
stands, as well as to extend the planting period;
• Implementation of the Community Environmental Awareness Raising Programme (Chapter 6.4.3) in project areas,
working with families to promote sustainable management of natural resources, with a special focus on the water
resources most impacted by human activities.
Industrial operations
At our industrial complexes, water is used at different stages of our industrial processes, from steam production to transport of
materials, cooling systems and other operations. The water used is predominantly obtained through our own surface and
underground intakes, and there are occasional cases where it is obtained from the municipal water network.
In view of the significant impact that our activities can potentially have on water resources and on rational and balanced
management of those resources, our intakes are licensed by the National Water Resources Authority and operated in strict
compliance with the maximum authorised volumes.
Committed to making optimised use of this resource, we have implemented our Water Use Reduction Programme (WURP).
This programme includes a series of management measures and investment in new technology which will enable us to further
optimise processes - i.e. increased recovery of process water, so as to minimise the intake volume and the discharge of effluents.
It should be noted that the water used in production processes is drawn not just from intakes, but also from the raw and
subsidiary materials, including wood and chemicals. The water used is returned to nature in the form of water vapour and treated
effluent, but wastes, products and by-products also contain significant volumes of water.
Total water withdrawn for industrial operations in Portugal fell by 3.1% in 2023, due to reductions in production prompted by
commercial considerations. As the same time, specific use of water rose in relation to 2022, standing at 21.2 m
3
/ton of output.
This indicator is affected by the existence of water uses which are not dependent on production, such was sealing water for
vacuum equipment, showers in machinery and others.
Despite this increase, the figure recorded in 2023 is still down by 5.1% in relation to the baseline of 2019 (22.4 m
3
/t), considered
for the purposes of setting the target.
Annual Report 2023 · Management Report 179
Specific use per ton of output in industrial operations in Portugal
(m
3
/t)
Note 1: Specific water use considers volume of water withdrawal by total manufacturing output.
Goal: cut specific use of water (m
3
/t output) in industrial operations in Portugal by at least 33%
by 2030 (baseline: 2019).
Specific use in baseline year: 22.4 m
3
/t
We run a wide-ranging system for monitoring and controlling our water use at all stages of the production process, so as to keep
checks on quality and conduct systematic reassessments of the potential for reuse in different processes. We also conduct
monthly monitoring of the situation at all our industrial units.
All our mills are covered by Water Resources Use Licenses for discharging industrial effluents. These undergo treatment
(primary, secondary and treatment of sludges) at Industrial Waste Water Treatment Plants (IWWTPs), which is designed to
minimise the potential impacts of their discharge into the environment and to obtain quality levels in treated effluent compatible
with the Admissible Emission Values (AEV) set out in BREF Pulp and Paper
46
. This process incorporates the Best Available
Techniques (BAT) for the sector (2015). In the case of Navigator Tissue Ejea (Spain), the treatment of effluents is outsourced.
We have an extensive programme of laboratory monitoring of effluent samples from IWWTP inflows and outflows, and our licenses
require continuous monitoring and reporting, connecting the Portuguese Environment Agency (APA) to the relevant data logger.
We also carry out environmental monitoring studies to assess the potential impact of our effluent discharges on the ecological
status of the receiving environments.
As regards the discharge of these effluents, we conduct monitoring of quality parameters, including of nutrients (phosphorus and
nitrogen), Biochemical Oxygen Demand (BOD), Chemical Oxygen Demand (COD) and Total Suspended Solids (TSS), in order to
assess the impact of our discharges on the receiving environment.
46
Reference document covering industrial activities listed in Annex 1 of the European Directive for integrated pollution prevention and control (IPPC).
21.2
19.1
20.9
2023 2022 2021
Annual Report 2023 · Management Report 180
Quality parameters (t)
Goal: to reduce by 10% the organic load in Navigator's industrial effluents by 2030, in relation to
2022 (measured in kgCQO/t output)
Changes have been made to the production processes at all the Company’s industrial complexes in Portugal, resulting in
reductions of varying degree on the use of water resources. This has been achieved through direct investment in the WURP, and
also in major projects which, although focused on other issues, have also made it possible to reduce water use - such as in
changes to evaporation or improvements in bleaching sectors. A number of projects are planned up to 2027, and these will enable
Navigator to honour its commitments and achieve its goals. although some of these are still awaiting approval and detailed
feasibility assessments, in the light of consultations and proposals from Suppliers.
In the course of projects undertaken to optimise procedures and industrial plant, work continued in 2023 on implementing
the WURP with 34 execution projects - 10 of which are in operation, representing CAPEX of 0.9 million euros (expenditure
allocated exclusively to WURP), as well as investment of over 25 million euros on major projects with a significant impact on water
use, most notably:
90.0
171.8
842.5
15,181.2
1,101.3
103.1
165.1
727.1
14,784.9
1,043.2
84.1
163.6
638.9
13,084.7
1,012.0
Total
phosphorous
Total
nitrogen
CBO
CQO
HSW
2023 2022 2021
Annual Report 2023 · Management Report 181
• The new bleaching tower and pulp washing presses, representing a significant improvement in technology in the
bleaching sector at the Aveiro Pulp Mill, and reduction potential of approx. 1 m
3
/tAD
47
, i.e. 350,000 m
3
/year;
• The new wood preparation line and water recovery from the fibre line at Figueira da Foz, with a reduction potential of
45 m
3
/h, i.e. 378,000 m
3
/year;
• The new effluent ultrafiltration system at Waste Water Treatment Plant 2 at the Setúbal Complex.
Our efforts to work towards circular water use have included not only the new ultrafiltration system (see insert) but also the
Resurgence Project for Industrial Water Circularity. Launched in December 2023, this is a new project under the Horizon Europe
Programme and is coordinated by CETIM, with a consortium of 20 institutions including The Navigator Company and RAIZ. The
project will last 4 years and is intended to develop efficient technologies for creating circular systems for industrial water, and also
for recovering energy and raw materials present in these effluents. The technologies to be developed will be validated at four
industrial units in three different industrial sectors (cellulose and paper, chemicals, steel and a case study in urban-industrial
symbiosis). The initiative will be funded by the European Commission and will contribute to climate neutrality, competitiveness,
and circularity in European manufacturing industries.
Aveiro Pulp Mill more efficient in use of water
Targets 6.4, 8.4, 9.2, 9.4, 12.3
The Bleaching sector at the Aveiro Pulp Mill was fitted with important new technology in 2023, resulting in significant
environmental benefits. One of these was the reduction in water use.
The project represented investment of approximately 12 million euros and was partly funded by the Recovery and Resilience
Plan (RRP). Two D2 towers were substituted by a single D2/P and the “work” of four old pulp washers is now done by a single
highly efficient washer, using DD Washer (Drum Displacer Washer) technology. This washing equipment permits a reduction
of approximately 5% in total water use for pulp production - a reduction made possible by reincorporation of washing water at
various stages.
The efficiency of the new equipment is also reflected in energy consumption: the reduction in water withdrawal needs also
means less power is needed for pumping and treating process water. For each ton of bleached pulp, less electricity is
consumed. At the same time, it has also been possible to reduce consumption of steam for producing chlorine dioxide, a
bleaching chemical that is produced on site.
These innovations have achieved a very significant reduction in the environmental impact of one of the fundamental stages in
the production of bleached pulp.
47
Ton of air dried pulp.
Annual Report 2023 · Management Report 182
What if we could transform industrial effluent into fresh water?
Targets 6.3, 8.4, 9.2, 9.4, 12.2, 12.4
In 2023, one of the waste water treatment plants at the Setúbal Industrial Complex was modernise in order to achieve a
significant reduction in the organic load present in the effluent. The technology installed in this WWTP is an MBR (Membrane
Bioreactor) ultrafiltration system, the first in the world in a paper production unit with the characteristics of Navigator Paper
Setúbal 1.
The project involved investment of 7.7 million euros, enabling Navigator to honour its commitment to protecting the
environment. The MBR system does more than just ensure strict compliance with the legal requirements, in particular the
tougher emission ceilings set in 2023 by the Portuguese Environment Agency (APA). It is also a very significant step towards
The Navigator Company's objectives as regards reducing water use and circular use of resources. Insofar as this technology
makes it possible to obtain effluent that meets very high-quality standards, practically free of solids and with a very low
organic load, the prospects are good for using it in future at certain points in the production process, as an alternative to water
currently withdrawn.
Ultrafiltration also opens up another extremely important possibility: implementation of a reverse osmosis system with which
an entirely closed loop will be feasible, because the water produced by the WWTP will be equal, and sometimes superior, in
quality to that withdrawn from natural sources. The modernisation of WWTP 2 at Setúbal therefore represents a major advance
that sets Navigator on course to the future, in the field of water management.
WHAT NEXT?
• Implementation of Oxygen Delignification in Setúbal: total investment of approximately 25 million euros will make it
possible to cut the use of chemicals in the pulp cooking process, with significant environmental benefits, in particular
in reduction of the organic load emitted in liquid effluent (2026).
• Continued implementation of measures to reduce water use under WURP (ongoing process).
• Development pf methodologies and installation of a trial basin in Mozambique for monitoring water availability (quality
and quantity), observing the dynamic of the hydrological response over the development cycle of forest stands in an
area influenced by the project (2024-2026).
Annual Report 2023 · Management Report 183
6.3.5. Use of resources and circular economy
GRI 3-3, 301-1, 306-1, 306-2, 306-3, 306-5
ESRS MDR-A, MDR-M, MDR-T, E5-1, E5-2, E5-3, E5-4, E5-5
We aim to realise the full potential for circularity in our production processes. We have invested increasingly
in innovative solutions, prioritising waste reduction and maximising recycling and recovery.
OUR IMPACTS
4,714,216 t
90%
1.66 t/t
output
Raw materials consumed
(down 8.6% from 2022)
Renewable raw materials
Intensity of materials consumption
(up 4.4% on 2022)
441,642 t
440,709 t
35,624 t
Waste generated
(up 7.5% from 2022)
Non-hazardous waste generated
(up 7.5% from 2022)
Sands (by-product) recovered for
construction sector
(up 25.5% on 2022)
4,835 t
7
12%
Carbonate sludges reclaimed in production of
PCC
Initiatives under way for promoting
the circular economy
Rate of waste disposal in industrial
landfill
Annual Report 2023 · Management Report 184
Planted forests play a crucial role in the transition from a linear economy, dependent on fossil fuels, to a circular bioeconomy
low in fossil carbon. This transition is supported by renewable, recyclable and biodegradable forestry products, bringing benefits
for nature and contributing to carbon neutrality.
The wood we use at The Navigator Company is sourced from sustainably managed forests (Chapter 6.3.3). This is processed into
various types of paper products which, after serving their purpose, are collected and recycled, becoming a raw material once more
Fibre from the Eucalyptus globulus we plant in Portugal is recognised as suitable for recycling over a larger number of cycles than
its competitors. A comparative analysis conducted by RAIZ, our forestry and paper research institute, has proven that this species
can be recycled over ten cycles - six more than for other paper fibres.
We are therefore positioning ourselves as a strategic player, investing in Research, Development and Innovation (RDI) projects
for implementing the best available techniques for the sector and looking for bioproducts and innovative solutions, developed
in partnerships with a variety of organisations (Chapter 6.5.2).
Aware that our industrial operations are highly dependent on a variety of resources - energy, wood, chemicals and water - we
are also committed to using them responsibly.
Our 2030 Roadmap (Chapter 6.2.4) reflects the importance of using these resources and promoting the circular economy, through
a range of commitments and goals. In relation to raw materials and waste, our main focus has been on:
• Promoting efficient use of resources, minimising our ecological footprint, proposing solutions that make for greater
efficiency in the use of wood in the industrial process;
• Promoting the circular bioeconomy, prioritising R&D solutions. The aim here is to develop sustainable applications
that add value to industrial by-products (sludges, fly-ash and other inorganic waste) and to achieve, by 2030, a rate
of waste disposal in industrial landfill of less than 10%.
We invest in solutions that promote efficient and responsible use of raw materials, energy (Chapter 6.3.2) and water (Chapter
6-3-4), as well as reduction and recovery of the waste generated. Our ultimate aim is therefore to reduce the environmental
impact of our operations, fostering continuous improvement of our performance and contributing to a low fossil carbon circular
economy.
The production process used by the Company since its founding, the kraft process, is based on the fundamental principles of the
circular economy, in which the secondary flows of materials generated in producing pulp and cyclically reused, minimising the use
of virgin raw materials:
• The sodium-based chemical compounds used in cooking wood for producing cellulose are recovered on-site in what is
called the sodium cycle;
• After cooking, these compounds continue in a flow called black liquor, rich in lignin, which is used in turn to produce
sufficient thermal energy for the pulp production process and electricity, which is sold to the national grid;
• In order to recover the sodium based compounds, other calcium based compounds are used, and these are likewise
recovered after use on site, in another parallel cycle, known as the calcium cycle.
Taking advantage of the potential for circularity inherent in the process, we invest continuously in closing circuits and
optimising the use of resources, prioritising reduction of waste production, as well as recycling and reclamation.
We have adopted technological solutions that enable us to reincorporate waste in production processes, or to reclaim
waste internally, in particular in energy production. Solutions of this type make it possible to minimise the use of virgin raw
materials, and also to minimise wastage and effluent loads (Chapter 6.3.4). Because the vast majority of waste is generated in
Annual Report 2023 · Management Report 185
pulp production operations, we have invested in improvements in the efficiency of treatment processes and systems, cutting
production of this waste to minimum levels.
Our efforts to promote the circular economy have been leveraged by the Corporate Upcycling Project, and by investment in
RDI projects and in establishing partnerships and synergies, which has enabled us to implement technological solutions such
as:
• Use of flue gases for capturing CO
2
, which is used in producing precipitated calcium carbonate (Chapter 6.3.2);
• Increased on-site circularity of carbonate sludges produced at the Figueira da Foz Industrial Complex, which are used
in producing calcium carbonate;
• Optimisation of chemical recovery cycles at paper pulp production units;
• Minimising production of biological sludges, through incorporation in black liquor evaporation, obtaining energy from
its organic content in the Recovery Boiler at the Figueira da Foz Industrial Complex;
• Use of sands from Biomass Boilers (by-product) as substitute for sands from natural sources used in construction
materials (e.g. mortars, aggregates, pre-cast concrete).
In addition, the recovery and reuse of water is also part of the circularity of our production process, and most of the water
used is returned to the environment in the form of treated effluent (Chapter 6.3.4).
Annual Report 2023 · Management Report 186
Approach to the circular economy
Investment
in Bioproducts
• Creation of forest-
based bioproducts
as a sustainable
alternative to
fossil-based
materials,
promoting the
transition to a
bioeconomy model.
Examples: Initiatives
under the From Fossil
to Forest Agenda
(Chapter 6.5.2)
Optimisation
and Improvement
of Processes
• Improved
efficiency in the
use of resources,
minimising the use
of virgin raw
materials, water
and energy, and
avoiding wastage
and waste
production.
• Improved
efficiency in
processes and
treatment systems.
Examples:
WURP - Programme
for Reducing Water
Use (Chapter 6.3.4)
Waste
Management
• Waste is selectively
collected, correctly
stowed and sent
for appropriate
final disposal,
prioritising
reclamation
operations
whenever possible.
Reincorporation of
By-products in
Navigator
Processes
• Optimisation of
chemical recovery
cycles at paper
pulp production
units.
Examples: Kraft
process for pulp
production
Industrial
Symbiosis
• Development of
industrial synergies
with other
industrial sectors,
promoting circular
use of materials.
• Use of waste
produced by the
Company as
secondary raw
materials,
replacing virgin
raw materials and
thereby extending
their useful lives.
Examples:
Partnerships in
recovering fly-ash
and sands
Mobilising Agendas
(Chapter 5, 6.5.2)
Research, Development and Innovation (RDI)
• Investment in applied research, through our own projects and others with consortia, with a view to
innovating in products and processes.
Example: Mobilising Agendas (Chapter 5, 6.5.2)
Networking
• Establishing partnerships, with universities, research centres and other industrial sectors, in order
to boost the circularity of materials, develop bioproducts, reuse waste and share expertise.
• Participation in the Circular Bioeconomy Alliance platform.
Annual Report 2023 · Management Report 187
Consumption of raw materials
Through our responsible forestry management and initiatives to support certification of forest producers, we work to optimise
the use of wood, whilst at the same time safeguarding the provenance of our most significant source of raw material.
We likewise invest in projects that work towards the aim of minimising losses and consequently increasing the yields from this
resource. Most significantly, new and more effective equipment has been installed for preparing wood, on fibre lines and in
the paper machines.
We have also developed forest-based packaging products to substitute packaging materials from fossil sources - gKRAFT
Packaging project (Chapter 2.2, 6.5.3) which also brings positive impacts to Navigator’s production processes, in particular in
terms of consumption of non-renewable materials, thanks to:
• Less use of chemicals in manufacturing brown pulp, in comparison with bleached pulp;
• Less use of optical brighteners in production;
• Less use of precipitated calcium carbonate (PCC).
In 2023, total consumption of materials fell overall by approximately 8.6%, to 4,714,216 tons.
Total consumption of materials
(t)
Percentage breakdown by type
of materials in 2023
Note 1: The 2023 figures include Navigator's operations in Portugal and Spain (Ejea). Those for previous years include only Portugal.
Note 2: See the GRI Table for methodological information on the calculation of the indicator (GRI 301-1).
4,714,216
5,15,.843
5,064,915
2023 2022 2021
Renewable materials
4,251,275 t
90.2%
Non-renewable materials
462,940 t
9.8%
4,714,216 t
Raw materials
Annual Report 2023 · Management Report 188
Intensity of materials
consumption
48
2023
2022
2021
Total consumption of materials(t)
4,714,216
5,156,843
5,064,915
Output (t)
2,848,191
3,238,424
3,105,209
Turnover
(million euros)
1,953
2,465
1,596
Intensity of materials consumption
(t/ton of output)
1.66
1.59
1.63
Intensity of materials consumption
(t/million euros)
2,413.8
2,092.0
3,173.5
As regards consumption of materials in Portugal, there was a reduction in output which also brought a drop in consumption of
materials of approximately 9.1%.
It is important to note that approximately 90% of the materials used are renewable, and the remaining 10% consists essentially
of chemicals which are necessary in different phases of the pulp and paper production process.
With a view to more efficient use of the raw material wood, an important development was the start up of the new wood
preparation line at the Figueira da Foz Industrial Complex.
New wood preparation line improves efficiency of raw material use and brings other
environment and social benefits
Targets 8.4, 8.8, 12.2
The new wood preparation line started operation in 2023 in the wood yard at the Figueira da Foz Industrial Complex.
Representing investment of approximately 32 million euros, this project involved installing two new reception tables for
roundwood, a new debarker, a new chipper and a new biomass crusher. The aim was to make environmental improvements in
this process area and to correct imbalances in pulp production, replacing equipment which had become obsolete, with large
efficiency losses in the use of raw materials.
The new line enables the mill to consume less wood (31,000 m
3
/year), which represents a significant saving in the main raw
material for pulp production and in the associated transport costs. In addition, this project has made it possible to make
significant improvements in water use, with an estimated reduction of 20%, and in noise reduction. The main equipment units
for the line were installed with reinforced acoustic insulation inside closed buildings, mitigating the negative impacts generated
by operations, both on Company Employees and on local Communities.
What is more, the line is able to process roundwood of up to six metres in length and a greater diameter, making for greater
flexibility in mill operations, and also reducing the number of operations along the supply chain, from the forest to the mill.
48
Includes Navigator's operations in Portugal and Spain.
Annual Report 2023 · Management Report 189
The benefits of this capex project are also felt in improved health and safety conditions, introducing new systems of controls,
increased automation of processes, improved accessibility and better operating resources.
Waste production
In 2023 we produced a total of 441,642 tons of waste, up by 7.5% on the previous year. It should be noted that this year we are
reporting, for the first time, the waste generated in forestry sectors, meaning in all operations in Portugal, as well as waste from
operations in Ejea (Spain), which started in 2023.
In Portugal, sludges resulting from effluent treatment (sludges from the Waste Water Treatment Plants, or WWTP) and fly ash
from the biomass boilers, originating in the paper pulp production process, are the waste products representing the largest
quantities - 177,437 tons and 90,312 tons, respectively. A total of 51,795 tons of waste was disposed of in industrial landfill,
representing a rate of 12%.
Waste production
(t)
Percentage breakdown by type of waste
441,642
410,717
398,022
2023 2022 2021
Hazardous Waste
933 t
0.21%
Non-
hazardous
waste
440,709 t
99.79%
441,642 t
Waste
Annual Report 2023 · Management Report 190
Rate of disposal of waste in industrial landfill in Portugal
Goal: by 2030, to achieve a rate of waste disposal in industrial landfill in Portugal of less
than 10%.
Note 1: Total production of waste includes for the three years Navigator's operations in Portugal, and for 2023 also includes Spain, as a result of the acquisition of a new
industrial unit - Navigator Tissue Ejea.
Note 2: See the GRI Table for methodological information on the calculation of indicators (GRI 306-3 and 306-5).
The increase in waste production recorded was the result of a combination of developments in the industrial process, which
demonstrate both the Company's concern with reducing this footprint and also some unforeseen operational difficulties at our
mills. Attention is drawn to the following: (1) in the case of WWTP sludges, heavy investment in improved efficiency in effluent
treatment, leading to increased generation of this waste product; (2) production of sands which is associated with the quantity of
biomass processed in our boilers, occasionally with a high concentration of inert materials; (3) lastly, unplanned production of
carbonate sludges, as a result of operational problems in the kilns in Setúbal.
The WWTP sludges produced are reclaimed in farming and/or energy production. Attention should also be drawn to the new
evaporation unit installed at the Aveiro Industrial Complex, which will enable biological sludges to be reused for energy in the
recovery boiler.
Projects promoting the circular economy
In 2023, we focused on pursuing the projects and partnerships already under way, and also on developing new initiatives for
implementation in the years ahead. The projects approved in 2023 by the Recovery and Resilience Plan (RRP), in the area of
decarbonisation (Chapter 6.3.2), will not merely contribute to a reduction in emissions of fossil CO
2
in production processes, but
also demonstrate a clear commitment to the circular economy and recovery of by-products and waste.
In the reporting period, we maintained out partnership with Specialty Minerals Inc. at Figueira da Foz, enabling us to reclaim
approximately 4,800 tons of carbonate sludges, up by around 3,800 tons from 2022. Carbonate sludges can be used for the
production of precipitated calcium carbonate (PCC), a mineral filler incorporated in Navigator's printing and writing paper
(UWF).
With a view to a substantial reduction in the generation of waste carbonate sludges at source, we are going to install a new lime
kiln at the Figueira da Foz Pulp Mill. In the kraft process for pulp production, quicklime is produced in a lime kiln using carbonate
12%
11%
14%
2023 2022 2021
Annual Report 2023 · Management Report 191
sludges, a by-product generate in producing white liquor, which is needed for cooking the wood, This process represents the
calcium cycle, in which calcium compounds are reused to produce the sodium hydroxide used in cooking the wood. In conjunction
with the existing kiln, the new lime kiln will make it possible to close the calcium cycle, significantly minimising the quantity of
waste carbonate sludges disposed of in landfill. Benefits will also be felt throughout the value chain, and it will be possible reduce
purchases of the quicklime needed to compensate the process.
As in previous years, combustion gases from Navigator's boilers and lime kilns in Setúbal and Figueira da Foz were again supplied
to our partners, OMYA and Specialty Minerals Inc. (SMI), respectively, for the production for PCC. This made it possible to capture
and incorporate approximately 120,000 tons of CO
2
, including 15,000 tons of fossil CO
2
. In 2024, new equipment will be installed
to feed lime kiln gases in Figueira da Foz to SMI, making it possible to increase incorporation of fossil CO
2
in the production
of PCC. This initiative, also approved by the PRR, represents an investment of approximately 1.7 million euros.
In Setúbal, the project completed in 2023 at WWTP 2 constitutes a crucial stride towards minimising Navigator's water
footprint (Chapter 6.3.4). The technological improvements introduced, most notably an ultrafiltration stage, mean that the
WWTP is now ready for future implementation of a complementary treatment stage (reverse osmosis), which will be able to
produce effluent of a quality identical to that of the water withdrawn, permitting Navigator to honour its commitment to circularity
in this natural resource.
The future Recovery Boiler in Setúbal approved by the RRP (Chapter 5, 6.3.2) will bring a significant number of environmental
improvements to the pulp production process. From a circular economy perspective, the new facility will bring:
• Greater efficiency in chemical recovery of sodium;
• Reclamation of malodorous gases for energy;
• Incorporation of biological sludges in black liquor for reuse to generate energy.
In Aveiro, the WWTP sludges generated in treating effluents are now reclaimed on site in the biomass boiler. This
reclamation for energy has positive impacts throughout the value chain, as it avoids sending this waste to Waste Management
Operators (WMOs), reducing the environmental impacts associated with the process as a whole, in particular in the transport and
processing of materials.
Through partnerships with the construction sector, involving incorporation of sands from fluidised bed biomass boilers (by-
product) in the production of concrete blocks, Navigator was able to find a use for approximately 35.6 thousand tons of
sands in 2023 (up 25.5% on 2022).
Annual Report 2023 · Management Report 192
Sands sent to construction sector
(t)
Another important development in 2023 was an initiative to reclaim waste from the pulp and paper industry, in partnership with
RAIZ, through the consortium for the TransForm mobilising agenda (see insert).
Waste reduction and processing create value for Navigator and for forests
Targets 12.2, 12.4, 12.5, 15.2
In the transition from a linear economy, dependent on fossil fuels, to a sustainable circular bioeconomy, a fundamental role is
played by planted forests and their products, but also by the processes, in which the Company has continuously invested, for
optimising the use of resources, reducing waste production and promoting recycling and reclamation.
The process of reducing waste, and of processing it to produce fertilisers and soil conditioners, are responses that constitute a
necessity, but also an opportunity. And they are both examples of the workings of the circular economy promoted by
Navigator.
Reduction of waste at source responds to an environmental need by minimising its impact. Treating waste enables it to be
reincorporated in production, in this case in the form of fertilisers, using processes that bring value for Navigator and for
forests.
35,624
28,395
21,504
10,075
6,941
9,945
2023 2022 2021 2020 2019 2018
Annual Report 2023 · Management Report 193
From the perspective of the circularity of its products and by-products, the future recovery boiler at the Setúbal mill will have
positive environmental impacts, bringing greater efficiency in the chemical recovery of sodium and reclaiming malodorous
gases and biological sludges for energy production.
A new lime kiln to be installed at the Figueira da Foz pulp mill will substantially reduce generation of sludges and carbonates
at source. At the same time, the use of biomass as fuel, instead of fuel oil and natural gas, will also help cut emissions of
fossil CO
2
.
The WWTPs at the Setúbal and Aveiro mills are further examples of how waste is disposed of and reused. In Setúbal,
ultrafiltration technology has prepared the WWTP for a complementary treatment stage using reverse osmosis, which will
enable the facility in future to produce an effluent with the same quality as the water taken from the environment. In Aveiro,
the WWTP sludges generated in treating effluents are now reused as an energy source in the biomass boiler, reducing the
impacts associated with transporting and treating these sludges.
WHAT NEXT?
• Implementation on an industrial scale of the project under way with Saint-Gobain for reusing fly ash from biomass
boilers in construction materials (2024).
• Implementation of projects under the RRP Agendas (2024-2025).
• New initiatives with Secil for reusing industrial waste (ongoing).
Annual Report 2023 · Management Report 194
6.4. Social disclosures
6.4.1. Talent management and development of human capital
GRI 3-3, 2-7, 2-30, 401-1, 401-2, 404-1, 404-2, 404-3
ESRS SBMA-1, SBM-2, SBM-3, MDR-A, MDR-M, MDR-T, S1-1, S1-2, S1-4, S1-5, S1-6, S1-8, S1-13
Our people are our most valuable asset and are what give The Navigator Company its distinctive edge. Our
strategy for managing the Company’s Talent and Human Capital is to develop their skills, value their talent
and invest in their self-realisation and advancement.
OUR IMPACTS
3,317
€171.1m
94.2%
Direct jobs
49
Employee pay and benefits
Employees on permanent contracts
259,121
hours
78
hours
1,560
Training hours
Average training per Employee
Welfare allowances awarded,
equivalent to more than 673
thousand euros
2.9%
13.3 years
Voluntary turnover in Portugal
Average length of service in Portugal
YOUNG TALENT
326
Approximately
50%
22,467
hours
Young people in the Talent Attraction
Programme
50
Integration rate for vocational
internships
Training for Interns
51
49
Number of Employees at 31 December 2023. This does not include the 150 Employees at Navigator Tissue Ejea, as well as interns/bursary holders and company officers.
50
Includes vocational internships, trainees and summer internships in 2023.
51
Figure determined for the 113 interns in the Group at 31 December.
Annual Report 2023 · Management Report 195
Our human capital is a priority for Navigator. We have invested in it systematically, so that our Employees can evolve, progress
and enjoy a sense of self-realisation. An example of how Talent Management is one of our priorities is that fact that direct
responsibility for this area is assigned to The Navigator Company's CEO and Human Resources is the responsibility of one of the
executive directors.
The strategic importance attached to the issue has to do with the crucial role of our Employees in the Company, and for the future
and sustainability of our business. It also reflects the volume of employment we provide, as part of our social and impact on the
Communities in the areas where we operate.
The management of our Employees is also informed by the values of stable employment, recognition and reward for merit,
internal growth and career-long skills development, as well as investment in promoting their safety, health and well-being (Chap.
6.4.2).
In our 2030 Roadmap (Chapter 6.2.4), we establish the following commitments in relation to talent management and developing
human capital:
• Promote development and upskilling of human capital in line with the Company's present and future needs;
• Contribute to the skills and employability of young people in the regions where we operate;
• Promote an inclusive organisational culture able to integrate internal and external challenges.
In our management approach to this issue, we seek whenever possible to adjust and align our practices in the different
geographical regions in which we operate. This has been achieved in relation to Mozambique, whilst in the case of Ejea (Spain) we
are still at a transitional stage of aligning policies and practices, as a result of the acquisition of this unit in 2023.
Approach to talent management and development of human capital
Recruitment and Selection
• Focus on attracting and developing future generations of professionals for Navigator and society.
• Promotion of continuous improvement in processes, in order to improve the standard and experience of
applicants in our recruitment and selection processes.
Onboarding
• Focus on a faster onboarding process, enabling new recruits to acquire the essential skills for their jobs
and to adapt to the Company culture, creating a positive experience for all our Employees.
Performance and Careers
• Managing Employee performance and potential and promoting their development, using plans which are
relevant, robust and well thought out, geared to acquisition of skills, development of others and
professional advancement.
• Succession plans that enable people to develop and progress, whilst ensuring business continuity and
the Company’s future.
Skills Development
• Helping Employees to develop their skills through the training offered by the Learning Center.
• Implementation of development plans, in line with the Careers Plan.
Annual Report 2023 · Management Report 196
Compensation and Benefits
• Development of Compensation and Benefits policies and programmes in keeping with the applicable
legislation and aligned with market practice.
• Implementation of competitive salary structures and benefit plans, in order to be fair internally and
competitive externally, and to attract and retain talent.
• Managing internal mobility.
Culture and Communication
• Design of internal communication strategies and plans.
• Managing internal communication channels.
• Content development and production.
• New internal communication channels - improving the touch points.
• Support for Business Projects, recommending the best communication strategy and how to implement it.
• Design of the strategic Employer Branding plan.
Recruitment and selection
We are committed to attracting and retaining the best talent. We keep a careful eye on
younger generations and stay focused on creating attractive opportunities that cultivate the
innovative potential of young professionals, offering recruitment and selection programmes
aimed at different technical and operational profiles, in the various geographical regions
where we operate and have our mills.
Thanks to its investment in young talent, Navigator currently has 434 Employees aged
under thirty. In 2023, 44.9% of new hires were in this age range.
This rejuvenation is pursued hand-in-hand with efforts to value the contribution of
different generations and to recognise the experience of colleagues who have been
longer in the company. One example of this is the Length of Service Awards, given in 2023 to
102 Employees celebrating 15 and 30 years in the Company.
Our Employee headcount increased in 2023, in line with the tendency in recent years,
although with a more significant impact this year due to the acquisition of a new Tissue unit in
Spain, bringing 150 new people into the Group
52
.
52
The figures stated in this Report refer to the number of Employees at 31 December each year. This does not include the 150 Employees at Navigator Tissue Ejea, as well
as interns/bursary holders and company officers.
Geographical
distribution of
Employees:
94.1%
Portugal
34.9%
Setúbal
33.6%
Figueira da Foz
18.9%
Aveiro
7.8%
Vila Velha de Ródão
4.8%
Others
3.9%
Mozambique
2.0%
Other regions
Types of contracts:
94.2%
Employees on
permanent contracts
3,317
Employees
Annual Report 2023 · Management Report 197
Turnover rates (staff entering and leaving)
Note 1: Includes voluntary terminations under Rejuvenation Programme.
Note 2: This does not include the 150 Employees at Navigator Tissue Ejea, as well as interns/bursary holders and company officers.
Note 3: See the GRI Table for methodological information on the calculation of indicators on Employees (GRI 2-7 and 401-1).
In 2023, we continued to invest in the continuous improvement of our recruitment and selection processes, in order to improve
the standards and experience of applicants. To this end, a new initiative was designed and implemented to make the Recruitment
and Selection (R&S) process faster and more effective, as part of the “CRESCER” (Growing) project (see section on “Culture and
communication”).
We pressed ahead with the strategy of integrating and developing young people, through initiatives such as the short- and long-
term Trainees Programmes (9 months and 24 months, respectively). More than 50 young employees were hired as a result of the
short-term trainees programme in 2022, whilst more than a hundred new internships started, along with three training courses for
future Technical Operatives. This programme includes initiatives for recent graduates (first degree and master’s), and for
undergraduates, in the form of summer internships, curricular internships and opportunities to develop dissertations in a business
setting.
It also includes specific programmes for developing future operatives. These are young people who have completed secondary
education or the equivalent, and for whom, in partnership with the Institute of Employment and Vocational Training (IEFP),
training is provided with a hands-on component at Navigator's mills, followed by a 9-month vocational internship and subsequent
integration into the Company’s workforce. Progression from one phase to the next requires successful attendance and a positive
assessment and is of course conditional on the existence of vacancies in the Company.
In this same area, we have stepped up our partnerships with vocational colleges, universities and IEFP. Alongside this, we
took part in 26 job fairs over the year, at universities and polytechnics, and awarded 8 study bursaries and 31 curricular
internships/dissertation projects, as well as organising workshops and seminars on topics related to our business and opening our
doors to 23 groups of students (636 people in all) interested in learning about Navigator.
For professional internships completed in 2023, the overall rate of integration in the Organisation was approximately 50%; the
rate for permanent contracts for future operational technicians was 68%, and 33% for graduates (first degrees and master's
degrees).
9%
7%
11%
8%
6%
8%
Entradas Saídas
2023 2022 2021
Annual Report 2023 · Management Report 198
In addition, we stepped up our commitment to young people in 2023 by signing up to the the “Pacto para Mais e Melhores
Empregos para os Jovens” (More and Better Youth Employment Pact), as one of the initial group of 50 companies backing this
initiative.
Signing of “Pacto para Mais e Melhores Empregos para os Jovens”
Targets 4.4, 8.3, 8.6
The Navigator Company was eager and willing to back an initiative bringing together business and public authorities in efforts
to address the vulnerability experienced by young people in employment. The “Pacto para Mais e Melhores Empregos para os
Jovens” (More and Better Youth Employment Pact), to which the Company was one of the first signatories, in January 2023,
seeks to create better quality employment for people aged under thirty.
Promoted by the José Neves Foundation and the Portuguese government, with the country’s president as patron, the pact sets
targets for companies to recruit more young people, with higher salaries and more stable contracts.
Given that attracting young talent has been a central plank of The Navigator Company's human resources strategy in recent
years, the Company's indicators show it to be well placed to meet the targets. For example, the rate of new hires aged 29 and
under already stood at over 50% when we signed the Pact, leading to a commitment to increase it by a further 3 percentage
points by 2026. As an example of the attention that has been paid to this area, we can point to our results in the Pact’s
indicator for opportunities for vocational or curricular internships: in 2023, the Company opened its doors to 326 young
interns, 60 more than in the previous year.
One of the main obstacles that Navigator faces in offering more and better employment for young people, is the desertification
of interior regions of Portugal and the difficulty of attracting professionals to these regions at the start of their careers. Several
short- and long-term internship programmes and training initiatives have enabled the Company to address this situation and
increase the rate of new hires and the retention of young people (the first of the four commitments in the Pact), and also to
respond to the other three: “Ensure quality employment for young people”, “Train and develop young people” and “Give a
voice to young people”. The good practices promoted by Navigator include the Future Leaders Forum, which not only provides
a platform for the Company’s young managers and professionals, but also harnesses their energy and talent.
Onboarding
The process of onboarding is especially important to Navigator, as we see it as an opportunity
to bring new Employees quickly up to speed.
We use a buddy system to ensure that new Employees get personalised support and a series
of distinctive experiences. This involves sharing specific expertise and/or general information,
as well as setting up interactions with different co-workers and situations.
26%
of all Employees with
individual development
plans, as a result of
application of the
Performance Management
Model
Annual Report 2023 · Management Report 199
In 2023, the onboarding process was deployed for 297 new Employees, as well as interns
(totalling from than 113
53
). The first day is entirely given over to safety issues, with the
SafePro Onboarding (Chapter 6.4.2).
Performance and careers
Our performance management model is one component of our wider strategy to develop our
Employees. This model applies across the whole Company and is intended to clarify
performance expectations, boost feedback and promote continuous development.
The Company encourages professional mobility, expanding the range of Employee
opportunities for growth and made it easier for Navigator companies and functional areas to
share their experience and know-how.
Operating in a changing industry with a high level of specialisation, in 2023 we consolidated
implementation of a Job Family Model, which has been communicated to all the Employees
affected, with the following main aims:
• To shift from an approach focused on job grades, with detailed job descriptions
segmented by area, towards a more flexible and simpler methodology, better
able to adapt and to apply across the Group;
• To attach value to technical careers, with status equivalent to management
careers;
• To boost internal growth, development and mobility, enabling Employees to
create their own path and at the same time promoting transparency and
flexibility in this process.
It should be noted that the Company has sought fresh attraction strategies broadened to include senior profiles. To this
end, we have signed up to Grow with Semapa, a new platform for internal mobility within the Group.
The main task in 2023 was to characterise the professional pathways within the Organisation. In close collaboration with the
different business areas, we developed mobility guidelines which will provide our Employees with clarity and transparency in
relation to their career options.
It was also possible to complete the digitisation of core processes in the Performance & Careers sector, in order to evolve to the
next level of focus on the development of our Employees, through skills acquisition, development of existing skills and professional
advancement. The Talent Review process and Succession Planning are currently being digitised, and this initiative
encompasses diagnosis of potential and implementation in more senior organisational groups. We are accordingly committed to
identifying and developing leadership potential, ensuring robust succession, in line with our strategic goals.
We recognise the importance of our managers in the process of performance management and career development. As part of our
efforts, we are focused on training in the different areas coordinated by Performance and Careers. This includes Performance
Management, Talent Review and Career Conversations, currently being piloted. The aim is to improve leadership skills,
promoting effective management and an inspiring working atmosphere, reaching more than 200 management units in 2023.
53
Number of interns in Group at 31.12.2023
99%
Employees with
performance
assessment
Annual Report 2023 · Management Report 200
Another achievement in 2023 was the design of the Navigator Leading with Purpose handbook, in which we clarify the role of our
leaders and the behaviour expected of them, to foster a culture of togetherness, in which people feel committed and fulfilled,
focused on their personal development and on the Group's performance. In implementing these guidelines, our aim is to train
more mindful and inspiring leaders, able to encourage self-assessment and self-awareness and to build a culture of focused and
coherent leadership.
Skills development
Underlining the Company’s commitment to developing and training our people, all Employees are encompassed by the Training
Plan, which in 2023 recorded a total of 259,121 training hours, corresponding to an average of 78 hours per Employee.
There was a very significant increase in training hours (up 89.6% on the previous year) driven largely by implementation of the
new skills programmes associated with the new Careers Plan, applied above all to the industrial sectors. We also recorded a highly
significant increase in participation in e-learning, designed to address cross-group issues and/or legally required areas of training,
such as safety, cybersecurity, internal policies, anti-corruption and whistleblowing.
Attention is also drawn to the Go Fluent platform, helping employees (and their families) learn 12 different languages, with 564
active trainees.
It should also be noted that in 2023 we provided 22,467
54
hours of training to interns.
Total training hours
Average number of training hours
per Employee
Note 1: The figures presented do not include Ejea (Spain).
Note 2: See the GRI Table for methodological information on the calculation of annual training indicators (GRI 404-1).
Employees are covered by the Training Plan which is part of the Careers Plan agreed, in 2021, with Workforce Representatives.
The aim is therefore to promote a process of continuous learning, designed to improve their skills and adapt them to the
Company's needs.
The year saw the completion of work on most of the new skill set programmes, provided for in the Careers Plan, approved for
the Group’s technical operatives. Despite being currently at the construction phase, the skill sets that were carried over have
remained in place and new sets gradually offered, resulting in more than 600 skill set programmes being started in 2023. For the
54
Hours relating to the 113 interns in the company at 31.12.2023
259,121
136,671
124,465
2023 2022 2021
78
42
40
2023 2022 2021
Annual Report 2023 · Management Report 201
purpose of implementation of these programmes a new Skill Set Management tool was also implemented, to support the careers
plan created in 2021 for the maintenance, production, tissue and quality process control sectors.
We also work to raise the level of qualifications in our workforce, with Regulations on Contributions to Academic Training
(for university courses), and in 2023 we revived the Qualify Programme, in partnership with the IEFP Qualify Centres in Figueira
da Foz and Setúbal. This has enabled Employees to complete the 9
th
and 12
th
years of secondary education, with lessons at
Navigator’s sites, avoiding the need for additional travel. More than 15 sessions were organised to publicise and promote the
programme, resulting in more than 50 enrolments; the programme is planned to continue in 2024.
Compensation and benefits
We believe that our people are our most important asset, and so it is extremely important to promote their development,
retention and advancement. Management of our Employees is based on recognising and valuing merit, on internal growth and
developing the skills that can assure the future and sustainability of our business. We seek to respond to our Employees’
expectations by implementing competitive Compensation and Benefits policies aligned with the talent management models in
place in the Company.
Benefits plan in Portugal
• Health insurance, covering both Employees and their spouses and children.
• Life insurance, including cover for death and total and permanent invalidity.
• Pension fund.
• Sickness benefit in addition to the sick pay provided by Social Security.
• Welfare support through: healthcare and occupational medicine (including social worker, psychologist,
physiotherapist and nutritionist);
• Support for families through allowances for nurseries, support for students (from primary school to
higher education), for children with special needs, study grants and childbirth bonus.
Annual Report 2023 · Management Report 202
• Financial support for Employees taking courses in higher education.
NB: Some of the benefits vary from region to region. The following apply in Mozambique: life insurance for all employees, health insurance for ex-patriate employees.
In 2023, we continued with our policy of improving the living standards of our workforce by increasing their disposable income.
We can point to our salary progression plans, the largest bonus pay-out in the Company's history and implementation of the
Childbirth Bonus - a benefit to help new parents, consisting of one month's basic pay for each child born as from 1 January 2023.
This was paid out in 2023 for more than one hundred children born to Employees.
Employee salaries and benefits
(million euros)
For Employees nearing pensionable age, Navigator has a scheme, under its Rejuvenation Programme, for compensating
Employees willing to take early retirement from the Company. This programme is designed to support them in the transition to a
new phase in their lives, which may in some cases involve taking up other personal and professional challenges. In 2023, 42
employees left Navigator under the rejuvenation programme.
Average length of service in Portugal stood at 13.3 years in 2023, showing the influence of the rejuvenation programme. There is
also a voluntary turnover rate of 2.9%. These indicators reflect the Company’s investment in putting together an attractive and
competitive pay policy.
Culture and communication
Initiatives have been adopted to promote Employee engagement with the Company. Central to these is the “CRESCER”
(Growing) project, addressing the organisational culture with the aspiration that “Everyone at Navigator should lead the
organisation's future, committed and realised”.
171.1
185.2
154.0
2023 2022 2021
Annual Report 2023 · Management Report 203
In 2023, the “CRESCER” project entailed conducting an organisational climate survey. With a participation rate of 73%, the
findings helped to fill out the project roadmap, pointing to specific issues concerning Technical Operatives which will have to be
addressed.
In line with the aspirations of the “CRESCER” project, and in the light of the needs and expectations expressed by Employees,
initiatives with the following aims have been maintained and developed further:
Give a Voice to Younger Target Groups
• Future Leaders Forum and Future Leaders Board – a programme that brings together young
management staff in order to strengthen their ties with the Company, through opportunities for sharing
and resolving challenges, in interaction with the Executive Board.
Nurture a Culture of Innovation
• Straight To The Top – a chance for everyone to contribute to the Company’s future, by sharing
knowledge and ideas that can improve our performance.
Bringing our People Together
• Opening doors to family - we open the doors of our industrial complexes so that our Employees can
show their families where they work.
• Holiday camp for Employees' children - fun and educational activities for children, some of them led by
our Employees.
• Manager’s Forum - Quarterly meetings with Top Management.
• Supervisors’ Forum - New programme of six-monthly meetings designed to align strategy with actual
operations, through engagement on management topics and sharing of information on the current
situation and future projects.
Recognise and Celebrate Special Dates
• Length of Service Awards - Every year, we celebrate those who have contributed to our success story,
for a period of 15 or 30 years.
• Birthday mementoes
“CRESCER” (Growing) with our people
Targets 4.4, 4.5, 8.5, 8.8
2023 was the first year of the “CRESCER” project, and whilst this was only the start of a marathon, there is already a lot to
celebrate. These were 12 months of dedication on multiple fronts in a mobilising and multidisciplinary project that starts out
from Employees’ ideas in order to improve the way we work, promote a sense of belonging and prepare the Company’s
future leaders.
With its slogan “So that all Navigator's people, committed and fulfilled, can lead the organisation's future”, the “CRESCER”
project wants the Company to evolve through the strength and innovative spirit of its human capital.
Annual Report 2023 · Management Report 204
The phase consisted of needs assessment sessions involving more than 200 Company managers, at every site, including
international teams. Around 500 Employees took part directly, but in total there were contributions from around a
thousand. This massive engagement served to create the project’s roadmap, structured around five Strategic Focus Areas:
Our People, Our Ways Of Working, Our Business, Our Impact and Our Leadership.
The five focus areas sub-divide into 16 pillars and then take practical form in 29 initiatives, which are to be implemented by
the end of 2024. Each of these is entrusted to a Functional Team, comprising Company staff from different areas and
different backgrounds.
“The teams are working enthusiastically, dynamically and with growing participation”, stressed Rui Faria, Paper Production
Director at the Figueira da Foz Industrial Complex, involved in one of the initiatives in the “Our business” focus area. “The
“CRESCER” project is a real opportunity for us to get aligned and leverage ourselves as an organisation. “All this
commitment - he concludes - shows we're already ‘Growing’!”
Annual Report 2023 · Management Report 205
Social dialogue
Social dialogue has always been a concern for Navigator and this has been stepped up in
recent years through increased and continuous interaction with different bodies and
organisations representing workers.
This has not only resulted in greater closeness between bodies representing workers and
Navigator's different operational sectors and the Human Resources Division, but it has also
encouraged direct dialogue with the Executive Board itself, as well as the director responsible
for human resources.
An example of this type of initiative was the Industrial Forum, set up in 2023, which was
attended by the Executive Board and organisations representing workers from all Navigator's
sites and business areas. The forum sought to establish cooperation and to resolve issues
relating to working conditions and employment topics of interest to the workforce. It also
addressed the future challenges that Navigator faces and for which everyone’s joint
endeavours will be needed.
Dialogue was an important feature of the industrial negotiation procedures which resulted in a
two-year agreement for 2022/2023 and its renegotiation for 2024/2025.
In addition to establishing custom-made negotiated agreements, changes were also made to
the following collective bargaining instruments:
• Company Agreement (The Navigator Company) with Fetese
55
;
• Company Agreement (The Navigator Company) with Fiequimetal
56
;
• Collective Agreement reached by Navigator Tissue Ródão and Navigator Tissue Aveiro
with the union organisations Fiequimetal and Fetese
57
;
WHAT NEXT?
• Maintain the strategy of attracting and developing young talent, in order to meet the Company's needs and to improve
their employability (ongoing).
• Maintain the strategy of developing our people, helping to build stronger development plans that are relevant and
robust, and providing new self-learning tools (ongoing).
• Promote professional advancement within Navigator, providing information on natural vocational pathways and the
respective criteria, encouraging internal mobility in the organisation and within the SEMAPA Group (ongoing).
• Implementation of an onboarding portal, designed to make the experience of new Employees more attractive (2024).
• Design of a new working hours for continuous operation in the next five years (2025-2029), featuring a reduction in the
working week to 37.5 hours as from 2026 (2024).
• Provision of training on the careers plan for technical operatives (2024).
55
published in BTE (Labour and Employment Bulletin) no. 45, of 8 December 2019; amended by BTE no. 3 of 22 January 2022 and no. 47 of 22 December 2022.
56
published in BTE (Labour and Employment Bulletin) no. 18, of 15 May 2019; amended by BTE no. 40 of 29 October 2022 and no. 44 of 29 November 2022.
57
published, respectively, in BTE no. 47, of 22 December 2022 and no. 2, of 15 January 2023;
94.1%
of all Employees
covered by collective
bargaining agreements
(100% of Employees in
Portugal covered by
collective bargaining
agreements)
Annual Report 2023 · Management Report 206
6.4.2. Health, safety and well-being
GRI 3-3, 403-1, 403-2, 403-3, 403-5, 403-6, 403-8, 403-9, 403-10
ESRS SBM-3, MDR-A, MDR-M, MDR-T, S1-1, S1-2, S1-4, S1-5, S1-14, S2-1
People are part of our purpose. This means that our Employees’ well-being, in a healthy and safe
environment, is a priority for The Navigator Company.
OUR IMPACTS
228
(down 13.0% on 2022)
5.9
49,000 hours
Accidents at work
Frequency rate for accidents at work
OHS training
OCCUPATIONAL HEALTH PROGRAMME
1,286
7
97%
Days of absence
Occupational diseases reported
Assessment of Employee satisfaction with
programme
OCCUPATIONAL HEALTH
PROGRAMME (CONT.)
236
1,852
4,147
Instances of sick leave avoided
through Occupational Health
Programme
Employees included under
Occupational Health Programme
Nutrition, psychology and physiotherapy
consultations
ERGONOMICS PROJECT
72
84
Workstations redesigned
Actions undertaken
Annual Report 2023 · Management Report 207
Aware that the risks involved in our operations include the possibility of accidents at work and occupational diseases, we have
made a firm commitment to the quality of life of our Employees, investing continuously in a safe and healthy environment, to
ensure their well-being. Such incidents can be potentially life-changing for our Employees and their families, and also damage the
Company’s reputation and competitiveness, potentially compromising our strategic goals.
It is our responsibility to create an Occupational Health and Safety (OHS) culture which enables us to make a sustained
reduction in the probability of these events occurring and thereby eliminate both accidents at work and occupational diseases. By
conducting our business in a responsible way, we can not only cut the Company’s costs, but also minimise risks to people,
workers in the value chain, Communities and the environment (especially those resulting from the Company’s industrial units and
forestry operations) as well as contribute to the continued good state of our facilities and plant.
Our 2030 Roadmap (Chapter 6.2.4flects the importance of this topic, through the commitment to providing workers with a safe
and healthy environment in order to ensure their well-being, which takes material form in a series of goals established for
Portugal:
• Achieve the Target of “Zero Accidents” through continuous improvement to safety, attaining a frequency Index of ≤2
in 2030 (internal and external Employees);
• Develop the Occupational Health Programme up to 2030, achieving a Work Ability Index (WAI) of 45%
58
and
Employee satisfaction with the programme, assessed at over 95%;
• Develop the Ergonomics Action Area through redesign of 100 workstations by 2030;
• Provide training courses on a continuous basis in OHS in forestry operators for service providers, Suppliers and
operators, aiming to provide more than 600 hours each year (Chapter 6.3.3).
Management of health and safety at work
At Navigator, we follow a Major Accident Prevention Policy (MAPP) – based on the principle of continuous improvement in
line with the goals set out in the Management Systems Policy – featuring in particular the OHS Management System in
Portugal, certified under ISO 45001, covering 98%
59
of internal Employees and 100% of external Workers.
Our “Mission Zero” Health and Safety Strategy for the three-year period 2021/23 is based on five key ideas. Measures have
been identified in each of these areas and, depending on the capacity to implement them and their impact, these have been
included in an ambitious plan involving the entire Company, from top management to sector managers, supervisors and
operatives. The plan is monitored on a periodic basis by the Executive Board, the Director responsible for this area and Company
Managers. “Mission Zero” was rebranded in 2023 with a view to stronger messaging and a renewed commitment to safety. The
image was updated with bright colours to make it more appealing and eye-catching, and several new items will be released over
the next two years.
58
Insofar as this index is monitored every 4 years, it will be monitored again in 2025.
59
There are various activities in the organisation, in particular Forest Management, Wood Supply and RAIZ, which do not fall under ISO 45001. However, activities in these
sectors are subject to the same principles and procedures.
Annual Report 2023 · Management Report 208
We invest constantly in resources to equip people across the Company with skills, tools and technological solutions enabling
them to take a proactive approach to accidents and how to promote well-being. Our focus is on ensuring the health and well-being
of all Employees, underlining our commitment that “We must all return home, safe and sound, to our families!”
Following on from the new Health and Safety governance model (developed in the previous year), steps were taken in 2023
to improve the workings of the Committees (at local, corporate and board level) that contribute to decision-making and a bottom-
up approach leading to more robust and efficient action. This approach makes it possible to address issues of safety and
communication more effectively, conveying decisions and information clearly to the workforce and ensuring they have a broad
grasp of the issues and are actively involved. The new model facilitates identification of opportunities for improvement, alignment
with strategic targets and creating synergies between different committees. This collaboration and exchange of know-how will
boost our ability to resolve complex and interrelated challenges.
Another development in 2023 was the creation of the Safety and Supporting Systems Division, with a field of action that
connects its intrinsically to issues of welfare, sustainability, management, decision-making and encouraging innovation and
improvements.
Annual Report 2023 · Management Report 209
Safety is a daily mission for all Employees
Targets 3.4, 4.4, 8.8
The well-being and quality of life of Navigator Employees means that Occupational Health and Safety has to be a priority for
the Company. The creation of the new Safety and Supporting Systems Division in 2023 is a reflection of this commitment and
a way of clearly showing to all our Stakeholders the importance that the Company attaches to the topic.
Paula Monteiro, who heads the new Division, explains its rationale: “We’re signalling the value we attach to safety, a value
which should be recognised by the Employees themselves, who are truly responsible for bringing safety and well-being to The
Navigator Company. The aims is therefore to strengthen our ‘Mission Zero’, in which the Company has set the target of zero
work-related injuries.” She also stressed that the new Division intends to attach value to issues of welfare, sustainability,
management, decision-making and encouraging innovation and improvements.
In order for the elimination of work-related accidents to be an achievable goal, the Company has developed two training
courses which point to safety as a daily mission in which all Employees are actively involved.
Leadership for Safety
More than 300 Employees took part in 6 workshops on “Leadership for Safety” held in the final months of 2023 in Setúbal,
Aveiro and Figueira da Foz. Aimed at directors, sector managers and supervisors, in both industrial and forestry areas, the
training was provided by Balmert, a US company with vast experience of safety in the pulp and paper industry.
In another development in 2023, the corporate OHS structure visited both Mozambique and Spain in order to strengthen
alignment in The Navigator Company's strategy between head office and local operations.
Accidents at work and occupational diseases
In the reporting year, we recorded a lower number of accidents with sick leave than in the previous year (down 24.3%), and
consequently a lower frequency rate (5.8). The most frequent cause of accidents at work leading to sick leave are work-related
musculoskeletal disorders (WRMSDs), which accounted for 30% of accidents in 2023.
Sadly, a fatal accident occurred in 2023 involving two external Employees. The accident took place during maintenance work in a
planned shutdown of the Pulp sector. The investigation conducted by an independent Commission appointed for these purposes
identified no failing in the management of the safety programme in force and which might have prevented this tragic event. It is
nonetheless fundamental to maintain the strictest standards in relation to safety, pursuing programmes of continuous
improvement and combating both complacency and unsafe behaviour. Significantly, the number of accidents reported was down
by 13.0% overall in 2023.
Annual Report 2023 · Management Report 210
Number of accidents at work
Frequency rate for accidents at work
60
Goals: Achieve a frequency rate of < 2 in 2030
(internal and external Employees in Portugal).
Significant accidents
Moderate accidents
Main causes
(accumulated)
2023
2022
2021
Musculoskeletal
30%
32%
50%
Cuts
21%
12%
17%
Entrapment/
Collision
19%
9%
-
Fractures
17%
13%
5%
Bruising
14%
21%
20%
Main causes
(accumulated)
2023
2022
2021
Cuts/Lacerations
25%
19%
24%
Bruising
24%
18%
26%
Musculoskeletal
22%
15%
33%
Entrapment/
Collision
9%
13%
6%
Burns
9%
10%
8%
Note 1: The figures presented refer only to Employees of Navigator Portugal.
Note 2: See the GRI Table for methodological information on the calculation of the accidents at work indicator (GRI 403-9).
Seven cases of occupational diseases were reported in 2023.
Navigator's industrial operations involves a series of risks which are constantly monitored; preventive measures are also adopted
at the different industrial units. Attention is drawn to the risks of pulmonary diseases, dermatitis, musculoskeletal diseases,
conjunctivitis and deafness.
Statistics on the causes of accidents show that many Employees present clinical situations resulting from poor posture, associated
with tasks which are more taxing from a muscular point of view, and in most cases these are related to ergonomic issues in the
work station. In view of this, we are running a programme dedicated to ergonomics (see following section).
60
The frequency rate for accidents at work was calculated by counting accidents leading to sick leave and using a normalisation factor for hours worked of 1,000,000.
133
178
132
95
84
15
228
262
147
2023 2022 2021
Employees Other workers Total
5.8
7.3
6.6
2023 2022 2021
Annual Report 2023 · Management Report 211
Number of occupational diseases reported
Note 1: The figures presented refer only to Employees of Navigator Portugal.
Note 2: See the GRI Table for methodological information on the calculation of the occupational diseases indicator (GRI 403-10).
Preventive and protective measures
Our OHS and Occupational Medicine teams coordinate their work closely with other Navigator sectors. We may point in particular
to the work done on risk assessments and analysis of the findings of monitoring activities (chemical, physical and biological
agents, and ionising radiation), culminating in regular joint visits to the industrial units. This integrated and collaborative approach
is essential for building a safe and healthy working environment.
We have set up an Occupational Health Programme (OH) designed to contribute not only to physical but also to mental and social
well-being. The programme has consistently achieved and gone beyond its annual goals, thanks to an innovative and original
approach which has resulted in growing interest and participation by our Workforce.
We also have a multidisciplinary OH team comprising a psychologist, a nutritionist, a social worker and five physiotherapists. This
team works in partnership with the occupational medicine team (six medical doctors) and the curative medicine team (4 medical
doctors and 20 nurses). These specialists take an active part in developing programmes geared to health and well-being and work
to help people adopt behaviours and techniques that enable them to overcome challenges in both their professional and personal
lives.
7
10
1
2023 2022 2021
Annual Report 2023 · Management Report 212
Occupational Health Programme
In 2023
2,475
940
732
Consultations: physiotherapists
Consultations: psychologist
and social worker
Consultations: nutritionist
97%
Assessment of Employee satisfaction with programme
Aim: > 95% assessment of Employee
satisfaction with programme
1,852
236
333/166
Employees Covered
Sick leave avoided
Total/partial recovery
In 2023, our Ergonomics Project continued to work on several fronts, intervening directly in workstations and raising Employee
awareness of the correct posture for specific tasks. It should be stressed that the results of initiatives of this type are not
immediate, as time is needed to implement the changes to workstations and to consolidate the learning process and adoption of
good practices by Employees. However, where workstations have been redesigned and the changes have been fully implemented,
the potential for musculoskeletal injuries has been reduced, according to the Rapid Entire Body Assessment (REBA) conducted
case by case.
Ergonomics project in 2023
72
88
Workstations redesigned
Actions undertaken
Goal: Develop the Ergonomics Action Area:
100 workstations altered by 2030
Annual Report 2023 · Management Report 213
Main initiatives in 2023
Safety onboarding
• A whole day is now devoted to safety with a new approach to onboarding new Employees. This ensures
that awareness of safety issues is a central focus from their first moments in the Company.
Cross-group audits
• We have conducted comprehensive cross-group audits throughout the Organisation in Portugal, in order
to assess and improve safety standards in different sectors and to ensure compliance and effectiveness.
Safety conversations
• We have implemented safety conversations with the direct involvement of mill directors, in order
to promote a consistent culture of awareness and sharing of safety practices.
Safety Olympics
• We marked our Safety month (April) and Health month (October) with the Safety Olympics, an event
in which more than 500 Employees took part.
• We turned the spotlight on (1) the importance of safety, encouraging active participation by all
Employees, and (2) promoting physical and mental well-being, through a stronger commitment to caring
holistically for our people.
Unsafe conditions management programme
• Implementation of proactive practices, such as safety walks, to identify and correct unsafe conditions,
as well as underlining the cardinal rules for ensuring compliance with Navigator's safety standards.
Formal recognition of proactive attitudes
• We have recently instituted formal recognition of proactive attitudes on the part of Employees in
identifying potential hazards, reflecting the importance that the Company's management attaches to
safety in the workplace, and in particular to behavioural factors.
Training programme
• On the basis of a skills matrix drawn up for each job, we have implemented the Training Programme
which includes the Safepro course and Leadership in Safety workshops.
• The training plan has been widely taken up across the Company, adding to our commitment to
provide an informed and safe working environment, designed to offer well-being for all.
Annual Report 2023 · Management Report 214
Safepro
Targets 4.4, 8.8
Everyone at Navigator is familiar with SafePro, a comprehensive training course in safety, consisting of 10 e-learning modules,
requiring close to 12 hours to complete. Specifically for new Employees, we now have SafePro Onboarding, an in-person
training course in which topics are discussed in line with the sectors that new workers will be joining. After the training, and for
a given period, new Employees have follow-up from tutors, so that the onboarding process includes a special focus on safety
rules.
Mozambique
With the clear objective of integrating Portucel Moçambique into Navigator’s safety management system, the Company's
Corporate Safety Director visited Portucel Moçambique's operations in early July. She went to Manica province where she met the
Safety teams and observed activities involved in wood harvesting.
Important Health and Safety work was carried out in Mozambique in 2023 in the project to export wood from Manica province,
with the aim of learning about activities along the entire value chain in the sector. Portucel Moçambique allocated two safety
officers who observed the loading of one of the ships, in order to identify hazards and the respective degree of severity, in the
different operations in the wood yard, transport and loading on to the ship. Portucel Moçambique is not responsible for these
activities, but we believe that only by learning about them can we pay due attention to needs and requirements in future, in
engagement with potential Suppliers and Clients, thereby improving safety along the whole value chain associated with our
business. It should be stressed that these activities in the forestry sector are still on a small scale in Mozambique, meaning that
there is little knowledge of the hazards, training or experience of handling the machinery and equipment, which could increase the
risks of accidents.
We have also been providing continuous and wide-ranging training in the rural areas in which we work, where employability and
vocational training are scarce resources. The Company make significant efforts to raise community awareness of the need to
comply with fundamental working rules. In this challenging environment, where execution of operations is crucial for local
sustainability, each training activity counts.
This is the scenario in which our technical staff play a vital role. Prior to any operation they meet with the working teams in order
to provide essential on-the-job training, lasting an average of 30 minutes per session. During this time they address topics such
as the correct use of personal and collective protective equipment, the communication channels available and the importance of
reporting any incident, among other operational issues.
This training is designed to ensure the safety and well-being of the workers, and also to promote a culture of responsibility and
efficiency. In an environment where resources are limited and each individual plays a critical role, the commitment to compliance
and operational excellence is essential. More than 5,515 hours of these training sessions were provided in 2023, reaching more
than 5,500 workers.
In its efforts to promote health and well-being, Portucel Moçambique ran a Preventive Medicine programme in 2022 and 2023,
offering all its Employees, in the different geographical regions in which they work, access to a quality, reliable and technically
expert service. The programme included screening for potential diseases (and advice on treatment), as well as medical
Annual Report 2023 · Management Report 215
recommendations for a better general state of health. The programme ran up to March 2023 and was taken up by 164
Employees, representing a rate of 93%, in all three provinces where the company operates (Maputo, Manica and Zambézia). As a
result, a significant number of recommendations were made to Employees, with a special emphasis on the need to monitor certain
parameters, such as weight or blood pressure, on a regular basis.
WHAT NEXT?
• Implementation of a platform gamifying safety challenges, encouraging Employees to join the “game” and thereby
ensure effective learning of procedures, rules and behaviours (2024).
• Completion of implementation of the Overall Risks Assessment methodology (2024):
• Alignment of training programmes and contents, and safety reports between the corporate structure and regions
(2024).
• Certification of safety leaders (2024).
• Start monitoring of implementation of measures to eliminate unsafe conditions (2024).
• New initiatives for stronger leadership and operational excellence (2024).
• Implementation of Occupational Health and Safety Management Platform (2024-2005).
• Launch of new courses in training programme - SEVESO, chemicals and forestry (2024-2025).
• Development and implementation of a communication plan for safety. health and well-being (2024-2025).
Annual Report 2023 · Management Report 216
6.4.3. Community relations
GRI 3-3, 413-1, 413-2
ESRS MDR-A, MDR-M, MDR-T, SBM-2(S3), SBM 3(S3), S3-1, S3-2, S3-4, S3-5
Sharing with society not just our achievements, but also our knowledge, our experience and our resources, all
in the name of a better future: this is a commitment included in our corporate purpose. A close relationship
with our local Communities, in all their diversity, has been built into our business. With each fresh year, we
strive to make it stronger.
OUR IMPACTS
€1.46m
More than
10,000
Approximately
31,000
Investment in the Community (In
Portugal and Mozambique)
People reached by initiatives to
promote forest literacy in Portugal
- Approximately 5,000 children and
4,824 teenagers and adults
Copies of “Dá a Mão à Floresta”
(Give the Forest a Hand) and My
Planet magazines (5 editions)
15,000
10,510
16,919
People reached by the Forestry
Producers project
Participants in “Floresta do Saber”
(Forest of Knowledge) project in 2023
Participants in “Floresta do Saber”
(Forest of Knowledge) project since
2020
2,914
6,915
102
Visitors taking the Navigator Tour, on
a total of 102 tours
Families supported in 2023 by the
Social Development Programme in
Mozambique
Navigator Tour Participants
(up 82% on 2022)
Annual Report 2023 · Management Report 217
The Navigator Group has a significant presence in several regions, through our industrial operations, as well as our forestry
operation in mainland Portugal, Galicia (Spain) and Mozambique.
In line with our purpose (Chapter 2.1) we have accepted a responsibility to find ways to share value with our Stakeholders
(Chapter 6.2.6), and especially with local Communities. These have a crucial role to play in relations with companies, as they are
the first link in the chain to feel the impacts, positive and negative, of our forestry and industrial operations.
At Navigator, we accept our social responsibility to the Communities in which we carry on our business activities, as a way of
contributing to their advancement and well-being, as established in the Code of Ethics and Conduct (Chapter 6.5.1). We have
also implemented a Human Rights Policy (Chapter 6.5.1), which sets out our commitment to acting in such a way as to respect
Human Rights in Local Communities, including, where applicable, indigenous peoples, and adopting measures to minimise
negative impacts, and to protect their values, culture and traditions. This Policy also establishes a commitment to promoting
Community engagement in order to obtain feedback on Human Rights and labour rights issues, recognising the importance of
listening and ongoing dialogue in order to incorporate local concerns in our internal decision-making processes.
An important tool in this is the Whistleblowing Channel (Chapter 6.5.1), available on the website for any member of the
community affected, leading to investigation of cases of Human Rights violations in Local Communities. It is important to stress
that no such violations were identified in the reporting period.
Because forests are the principal source of our resources, one of our priorities involves educating the public about the benefits of
woodlands and the importance to society of sustainable use of forest-based products. In keeping with this, our 2030 Agenda and
Roadmap set out our commitment to developing our relationship with Communities, working to transfer our knowledge and to
raise public awareness of the economic, social and environmental importance of forests (Chapter 6.2.4).
We therefore remain committed to launching projects that help to generate and share knowledge in the field of forest literacy,
especially online, as well as initiatives to empower Stakeholders, such as forestry producers (Chapter 6.3.3). Another important
target group is our local school communities, where it is extremely important to raise awareness of forestry protection at an
early age.
Approach to Community relations
DIALOGUE WITH COMMUNITIES
FOREST LITERACY PROJECTS
TRANSFER OF FORESTRY MANAGEMENT EXPERTISE AND SKILLS TO FORESTRY PRODUCERS
(CHAPTER 6.3.3)
SOCIAL DEVELOPMENT PROGRAMME IN MOZAMBIQUE
Annual Report 2023 · Management Report 218
DIRECT COMMUNITY SUPPORT
Dialogue with Communities
As a way of establishing dialogue with Communities, we have several arrangements for direct
interaction (Chap. 6.2.6), such as the Community Monitoring Committees and Navigator's
Sustainability Forum, as well as the Community Liaison Officers and the Social Development
Programme in Mozambique. These also enable us to identify Stakeholders and local
Communities of particular relevance to Navigator, and to establish close and lasting
relationships.
The Community Monitoring Committees (CMCs) have been set up in the areas around
the Company's industrial complexes in Portugal. This initiative is very important for
understanding the concerns of Communities, seeking to respond to their needs.
These Committees include an array of stakeholders - representatives of municipal authorities,
local bodies, NGOs and universities, among others - and are fundamental for strengthening
our credibility and “license to operate”, above all in the local areas around Navigator's
operations. The Company is represented at meetings by its directors and managers from the
Public Affairs, Industrial, Environmental, Sustainability and other divisions.
The interaction generated at the CMC meetings facilitates joint reflection on matters relating
to the life of the Communities, and the feedback from CMC members is recorded for
subsequent follow-up by Navigator's internal departments.
This gives members of the local Community an active voice on topics of concern to them,
which can range from the impacts of the Company’s activities (industrial, forestry) to projects
able to contribute to the improved welfare and quality of life of the community.
Eight CMC meetings were held in 2023. The issues addressed at these meetings are presented
transparently, and analysed and debated jointly by the members. Minutes are drawn up and
approved by the parties involved, to record the progress made in relation to the various
8
Community Monitoring
Committees meetings,
in Portugal
Annual Report 2023 · Management Report 219
situations discussed. The minutes are sent to all the members of the committees. It should be
noted that the CMCs are chaired by prominent figures, and their members include directors of
the Company.
There were various instances of close collaboration with local communities over the year, such as
in Aveiro where the industrial complex worked with the local civil parish councils and farmers
affected by the floods in the region, in connection with the process of removing obstructions from
the River Vouga. We also provided financial aid to farmers, to minimise the harm caused by the
floods.
Another example of institutional cooperation is provided by the Figueira da Foz Community
Liaison Committee, involving the two pulp & paper companies operating in the region (Navigator
and Celbi), in a joint effort to build ties with local stakeholders. Both companies seek to work with
the civil parish authorities in supporting communities and local organisations, including the health
centre, voluntary fire brigades and the region's schools. All these institutions are represented on
the Community Monitoring Committees, where they are able to voice their concerns and make
suggestions for improvements, around the table with representatives of the two companies, who
cooperate in finding solutions for the issues raised.
The 16
th
edition of the Sustainability Forum was held at the National Exhibition Centre in
Santarém, with an audience of leading local Stakeholders, offering a chance to debate the theme:
"Sustainability of Forest Raw Materials". Participants were able to reflect on the challenges and
risks presented by the sustainability of forest-based businesses and the alternative solutions
which are being explored, in particular the development of new materials from cellulose fibres.
The speakers included the chairman of the Portuguese Confederation of Farmers (CAP), the Trade
& Industrial Policy Director of the Confederation of European Paper Industries, and the Head of
Global Business Sector Pulp & Paper at AFRY, on a panel that featured several CEOs (Navigator,
Altri, Sonae Arauco and Corticeira Amorim), representatives of academe, NGOs and others. This
edition of the Forum welcomed 102 in-person attendees and 377 online participants, and
the deferred recording available on Navigator's YouTube channel notched up 582 hits over the
days following the event.
In order to boost public awareness of Forestry issues, Navigator joined forces in 2023 with the
weekly newspaper Expresso in launching a series of conferences:
“Let's talk about sustainability”: conference series
Targets 12.8, 13.3, 15.2
In partnership with Expresso, the Portuguese weekly newspaper, The Navigator Company organised a series of three
conferences on forestry issues in 2023, with the slogan "Let's talk about sustainability". This initiative is perfectly
aligned with the Company's purpose, which envisages sharing knowledge with society in order to raise awareness in
Portugal of the need to value and improve the country's forests.
The first conference was held on 21 March, on the topic of the "Forest-based Bioeconomy". Experts from industry and
academe were brought together to discuss the major issues raised by the future of the sector, including the
16
th
Ed.
Sustainability Forum
Watch the
recording of
the Forum
Annual Report 2023 · Management Report 220
contribution of forest-based products to a circular bioeconomy, able to supersede the existing linear, fossil-based
paradigm.
The second event, on 28 June, returned to the theme of forest-based sustainable development, this time from the
perspective of "Better forests: for people and for the planet". One of the key ideas explained was that, when
managed sustainably, planted production forests take the pressure off natural forests.
Navigator organised the third and last conference in this series on Portugal's first National Sustainability Day, 25
September. “Planted forests: environmental, social and economic responses” was the chosen topic, highlighting the
importance of forests as a force for sustainability in all its dimensions.
In order to bring the Company closer to the Community, 102 Navigator Tours were run in
2023, bringing a total of 2,914 visitors:
• 50 school trips (including higher education), with 1,869 participants;
• 47 groups from institutions, with 793 participants;
• 4 Employee tours, with 202 participants;
• 1 Cacia Community tour, as part of the 70
th
anniversary celebrations, with 50
participants.
There has been growing interest from US higher education institutions in learning about the
Company.
In Mozambique, engagement with the country's institutions is something we value greatly, and in
2023 we took part in a number of events, including:
• The 1
st
Technical Forestry Symposium, held in Gondola, Manica province, organised
by the National Directorate for Commercial Farming, a department of the Ministry of
Agriculture and Rural Development;
• The 7
th
International Conference on Environmental Education of the CPLP
(Community of Portuguese-speaking Countries), which was held in Maputo. This is a
biannual event, hosted in turn by each of the CPLP member countries, and this year
addressed the topic of: “Environmental Education: The Key to Sustainability”.
Another important event in 2023 was the visit by national stakeholders, as part of the COMBO+
project, implemented by the Wildlife Conservation Society (WCS) in partnership with Biofund
and the Mozambican government. The participants included representatives from the central and
provincial offices of the Ministry for Land and the Environment, the Provincial Government,
academe, researchers and civil society. This was an opportunity to see various aspects of the
project in loco, and to share experiences about the application of good practices in
implementation of the biodiversity impacts Mitigation Hierarchy, focusing on Portucel
Moçambique as a case study.
A central role in building a close relationship with communities in Mozambique is played by the
Liaison Workers, local people identified by the community and supported by the Company, and
also by the Communication Officers, who are company employees responsible for pro-actively
Learn more about the
COMBO+ project
and the Final Report
on the visit.
102
Navigator Tour
Participants (up 82%)
2,914
Participants (up 116%)
Annual Report 2023 · Management Report 221
communicating with communities. The Community Liaison Workers offer a response to the need
for regular communication, often in local languages, in geographically far-flung areas, with
cultural barriers and changing situations on the ground, such as those resulting from
implementation of the Social Development Programme (see section below) and forestry and
conservation operations.
Channels for proximity to Communities:
Liaison Workers and Communication Officers
Targets 8.7, 8.8, 10.2, 15.2, 16.6, 16.7
The Community Liaison Workers (CLWs) are individuals, designated by local Communities and supported by Portucel
Moçambique, who facilitate communication between the Company and families in one or more Communities, on issues
related to forestry activities, the Social Development Programme, environmental awareness and any other matters that
arise in dealings between them. Portucel Moçambique currently has 48 Liaison Workers, responsible for this regular dialogue
in the field and who play a crucial role in building the trust needed to implement the project, in Manica and Zambézia
provinces. The Community Liaison Workers speak the local languages, which helps in including all the participants and
ensures clear communication at the Company's regular meetings with the Community and families.
The CLWs are in regular contact with Portucel Moçambique's team of Communication Officers (five officers at year-end
2023), in order to manage relations with the Communities more broadly and to coordinate and plan communication
objectives, ensuring that a consistent line is taken in all community communications.
The CLWs and the Communication Officers receive regular training, in particular behaviour training in topics such as human
rights, non-discrimination on the basis of sex or age, avoiding corruption and other issues. They also receive technical
training in the use of equipment and software for better communication. One example was the training of CLWs in use of
software, installed on smartphones, for collecting and recording information on biodiversity (fauna and flora), in view of
their presence in the field on a daily basis.
Both the CLWs and the Communication Officers offer a human point of contact for the system that enables the company's
stakeholders, and especially members of local Communities, to voice complaints, suggestions or other concerns, in their
daily dealings with the Company.
Over the course of the year, we improved the processes in the Communities Relations Management Procedure, as a tool for
managing communication and the forestry venture. There was a reduction in the number of occurrences and complaints raised by
Communities, and in unresolved complaints. These complaints are now managed on the SOCIALL platform, where the status of
each process can be consulted online, together with the data generated in connection with occurrences.
Portucel Moçambique's Facebook account increased its number of followers fivefold in 2023 (with a total of 1,400 followers at
year-end) and has served as a channel for communication with a range of stakeholders. Featuring items such as the "Forest
Dictionary", posts on environmental education. advice on how to prevent out-of-control burning and testimonials from a host of
employees and beneficiaries, involved the Company's everyday activities, this is another channel for creating close ties with
Portucel Moçambique's stakeholders, including local communities.
Annual Report 2023 · Management Report 222
Forest Literacy Projects
In 2023, we continued to foster close ties between the Company and its various stakeholders, through our My Planet, “Dá a
Mão à Floresta” (Give the Forest a Hand), “Biodiversidade” (Biodiversity) and “Florestas.pt” projects.
In the spirit of engagement and co-creation, we have invited Portuguese experts from a range of institutions, fields of
knowledge and geographical regions to develop content for Florestas.pt. The different professional backgrounds of our authors
- ranging from university lecturers to forestry officers, museum curators, producers and fire fighters, among others - have
enabled us to enrich the content offered and to promote “knowledge communities” by including different perspectives. This
has added to the credibility of the platform and to the Company’s reputation, with positive impacts throughout the forestry
sector.
“A forest in the Park” was Navigator's theme for its contribution to the 93
rd
Lisbon Book Fair, where we offered visitors a range
of experiences from our “Dá a Mão à Floresta” (Give the Forest a Hand) and My Planet projects, honouring Navigator's
commitment to sharing its knowledge, experience and resources with society in the quest for a better future.
The year also marked the end of the support from the Calouste Gulbenkian Foundation's Sustainable Development Programme
for the “Floresta do Saber” (Forest of Knowledge) project. The project will nonetheless continue, offering a vast range of
activities suitable for different levels of education, in a woodlands or laboratory setting.
“Floresta do Saber”: forest literacy "tailored" to younger generations
Targets 4.7, 12.8, 13.3, 17.16 and 17.17
The “Floresta do Saber” (Forest of Knowledge) project celebrated its third birthday in later 2023. The brainchild of RAIZ,
Navigator's R&D institute, the project is aimed at the educational community and focuses on all topics related to forests and
their importance to the transition to a circular economy based on renewable resources. The relevance of the “Floresta do
Saber” to the field of education has won RAIZ recognition from UNESCO Portugal and from the UNESCO Club.
Over the first three years, in which it received funding from the Gulbenkian's Sustainable Development Programme, the
“Floresta do Saber” welcomed more than 17 in-person visitors, most of them (85%) primary and secondary school students
and teachers. The project has made it possible to reach out to the community and established partnerships with a series of
local and regional institutions - schools, municipalities, higher education institutions, scout troops and others.
The “Floresta do Saber” offers a programme ranging from visits to the woodlands at Quinta de São Francisco, in Aveiro, to
activities in the RAIZ laboratories. Visits are also offered to the Espirra Nurseries, in Pegões.
According to Sara Monteiro, the head coordinator of the project, the activities are always tailored to the group in view: “We
design activities adapted to different age ranges and educational levels. In all of them we seek to involve the children, because
we want them to feel that it's their project”.
Annual Report 2023 · Management Report 223
16,919
in-person participants
1,212
activities, in 318 in-person events
5,600
online users
84
internal and external presentations of the project
6
written publications
15
think tanks
5
exhibitions
Participation in 15 fairs and conferences
13 partnerships signed with other organisations.
https://florestadosaber.pt/wp/
My Planet
“Dá a Mão à Floresta” (Give
the Forest a Hand)
“Biodiversidade”
(Biodiversity)
Florestas.pt
Motivating people through
stories and actions for a more
sustainable future, the
platform serves as a vehicle
for social and environmental
responsibility, by sharing
knowledge.
Develop educational games to
raise young people's awareness
of the need to protect and
improve Portugal's forests.
Winner of Semapa's 2023
Making it Better Prize.
Share knowledge about
biodiversity in forest
ecosystems and help raise
awareness and provide public
information on the importance
of biodiversity in forests,
through content designed to
be accessible, educational and
inspirational.
Collect, collate and
disseminate wide-ranging
information and knowledge on
Portuguese woodlands and
agro-forestry areas, providing
information on their
importance, challenges and
opportunities, in a clear,
inspiring and accessible way.
More than
4.8 thousand
teenagers and adults reached
2 editions
of magazine with average print run
of 16 thousand copies
More than
14,250
magazine subscribers
272
online content items
More than
5.2 thousand
children reached
3 editions
of magazine with average print run of
15 thousand copies
More than
14,100
magazine subscribers
420
Approximately
7,100
followers
on social media
594
18 opinion articles (e.g. ecosystem
services, sustainability of forests,
planted forests, technical burning,
invasive plants), since being
launched
More than
35 thousand
visitors, 1,097,283 since being
launched
582
newsletter
subscribers
Annual Report 2023 · Management Report 224
My Planet
“Dá a Mão à Floresta” (Give
the Forest a Hand)
“Biodiversidade”
(Biodiversity)
Florestas.pt
More than
53,000
followers
on social media
More than
327 thousand
website hits
online content items
11
competitions
Approximately
118,000
followers
on social media
More than
4.3 million
website hits
https://myplanet.pt/
https://www.daamaoafloresta.pt/pt
https://biodiversity.com.pt/
https://florestas.pt/
Annual Report 2023 · Management Report 225
Social Development Programme in Mozambique
In Mozambique, the Social Development Programme (SDP) was set up in response to some of the specific risks to Communities
identified in the Environmental and Social Impact Assessment (ESIA) conducted between 2011 and 2013. The ESIA identified a
baseline scenario where the households (some 24 thousand) in the project areas presented high rates of food insecurity, low
income, low yields in staple crops (such as manioc and maize), poor access to drinking water, among other issues.
The ESIA provided an objective basis for establishing the three priorities of the SDP, which seek to minimize these risks -
improved food security, incentives for income generation and better welfare.
A total of more than 7.6 million dollars has been invested since 2015, and the programme has brought a positive return through:
• Generation of employment along the value chain, at different levels of skills and professional advancement;
• Community investment, centred on three priorities: food security and diversity, income generation and welfare;
• Environmental protection, with implementation of best practices and developing know-how partnerships seeking to
improve the protection of native woodlands in conjunction with communities;
• Engagement with stakeholders at central, provincial and district level in monitoring the project - in 2023 this included
a visit by stakeholders to the COMBO Programme, participation in the 7
th
Conference on Environmental Education and
also at the Maputo International Fair (Facim), in the pavilion of the Ministry of Agriculture and Rural Development;
Annual Report 2023 · Management Report 226
• Generation of wealth and value added for the country.
The impact assessment component was stepped up in 2023 for a number of actions: measurement of crop yields, assessment
of distribution of fruit trees, assessment of use of improved barns, assessment of timber-saving ovens, assessment of potential
income associated with livestock farming schemes.
Work was undertaken to raise environmental awareness in communities in Portucel's Land Use Areas, including
dissemination of good practices on environmental issues. This is intended to create community awareness of the importance of
using resources sustainably and protecting biodiversity, alerting people to the impacts of climate change and improving their
ability to identify incorrect practices, and also to report them. The issues addressed included environmental crimes as defined in
law, uncontrolled burns, natural resources and their importance, deforestation and species extinction, erosion, conservation
farming, climate change, environmental pollution and solid waste. These sessions involved 3,858 individuals, of whom around
40% were women, some of whom attended meetings held exclusively for women, in order to boost their involvement and
participation.
Social Development Programme in Mozambique
(by 31-12-2023, since start of Programme)
Over
7,000
1,145 t
1,965
Families reached
Improved seeds distributed
Improved barns
108,700 kg
1,085,700
2,145
Sweet potato cuttings (orange
flesh)
Manioc Seedlings (96,700) and cuttings (989,000)
Goats distributed
62
1,600
3,220 kg
Fish tanks
Beehives distributed
Honey produced
38
59
4,203
Boreholes built
Boreholes repaired
Solar lamps distributed
767,500
3,858
USD7.6m
Vaccines administered to poultry
against Newcastle disease
Persons involved in environmental awareness raising, in
2023, 40% of them women
Investment
Annual Report 2023 · Management Report 227
Direct community support
In our direct support for Communities, we centred our action on:
DONATIONS OF PAPER
DONATION OF PLANTS FROM NURSERIES
FINANCIAL AID
AID IN KIND (OTHER THAN PAPER)
Donations of paper (of various kinds) are one of Navigator’s most direct ways of supporting
communities, making a material contribution to the smooth administrative workings of the
institutions in question, in the areas where the Company operates, such as schools and civil
parish councils. In 2023, paper donations totalled 44.6 tons, representing investment of
60,694 euros. We also supported the Portuguese-Mozambican Chamber of Commerce with a
donation of paper for printing the Annual for Mozambican Students in Portugal, a
comprehensive publication we regard as an investment in the country's future generations.
In Portugal, Navigator has also supported a number of high-profile initiatives and institutions,
such as the Confederation of Portuguese Business, Fundação Nossa Senhora do Bom Sucesso
and the American Embassy in Portugal. Support was also provided for the 26
th
Tecnicelpa
Conference and the publication by the National Institute for Agrarian and Veterinary Research
(INIAV) of a book paying tribute to Seita Coelho.
Cultural and social inclusion issues were again important factors in targeting these
donations, with contributions to cultural associations and residents' committees in our
communities, which are increasingly hosting immigrant populations.
In the areas around our industrial units in Portugal, Navigator has also provided
approximately 205,500 face masks for local fire brigades and Red Cross workers, and
supported tree planting on the campus of the Polytechnic Institute of Setubal (IPS) and a
park in the civil parish of Cacia.
In addition to this local support, donations of plants were also made further afield, for
schemes such as the reforestation of several hectares of woodlands ravaged by fire in the
Serra da Estrela, promoted by an environmental NGO, and also for others connected with the
World Youth Days. In total, more than 2,738 plants were donated.
Paper donations
in 2023:
More than
44 t
More than
€60,600
Other donations
in 2023:
205,500
Face masks for local fire
brigades and Red Cross
offices.
Other donations in
2023:
More than
2,700
Plants donated
Annual Report 2023 · Management Report 228
Making a contribution to the skills and employability of young people in the regions where we operate is one of the commitments
in our 2030 Agenda (Chapter 6.2.4). In the education sector in Portugal, we have supported the Cristina Torres Secondary School
in promoting hands-on learning, by donating laboratory glassware for chemistry and physics experiments. The laboratory
materials donated have been used to develop essential skills by students on the vocational course for training as laboratory
technicians.
In Mozambique, in addition to the Social Development Programme, Portucel has responded to requests from a number of
Stakeholders, contributing resources, equipment and basic necessities in response to natural disasters and extreme
weather events, such as storms, floods and the like. In 2023, these contributions totalled approximately 6 thousand euros in
the provinces of Manica and Zambézia. Portucel Moçambique also provides construction materials and eucalyptus cuttings for
health, education and public administration institutions. This has helped to rehabilitate infrastructures damaged by natural
disasters or in situations of urgent need to restore their normal functioning.
WHAT NEXT?
• Closer relations and collaboration with other local and regional entities (by 2026).
• International expansion of the “Floresta do Saber” (Forest of Knowledge) Project, with English language versions, both
of the website and of the written contents and the model for replication (by 2026).
• Design of more activities, games and other varied content to educate people to value Portugal's forests (by 2026).
• Improve the impact of the project in Communities in Mozambique and on their socioeconomic and environmental
resilience (ongoing process).
• Continued efforts to communicate and build relations with various stakeholders in Mozambique (ongoing process).
Annual Report 2023 · Management Report 229
6.5. Governance disclosures
6.5.1. Responsible business conduct
Ethics and transparency are values that underpin our conduct and actions and guide the relationship of trust
we establish with our Stakeholders.
OUR IMPACTS
2,942
0
0
Employees (including Interns)
with training in internal
Compliance Policies in 2023
Confirmed cases of corruption
Confirmed cases of discrimination
3,735
5
Counterparties analysed
Women on Governance Bodies
(35.7%)
Annual Report 2023 · Management Report 230
Compliance
GRI 3-3, 2-23, 2-24, 2-25, 2-26, 205-2, 205-3
ESRS GOV-1, MDR-A, MDR-M, S1-3, S2-3, S3-3, S4-3, G1-1, G1-3, G1-4
Compliance system and fundamental instruments
Our business and the standards of good conduct we have adopted respond to the ever more exacting criteria set by our
Stakeholders - both internally and in interactions with external stakeholders. The key values that guide our operations are
Trust, Integrity, Enterprise, Innovation, Sustainability and Excellence, and these underpin the various policies, codes and
regulations established to assure the good practices associated with our operations and business. Leading examples of these
are:
In order to foster ethical business conduct on the part of the Group and its Stakeholders, Navigator has a Compliance System
which is designed to ensure that the applicable legal requirements are met, especially as regards anti-corruption rules (see the
section “Prevention of corruption and related offences”), prevention of money laundering and terrorist financing, compliance with
international sanctions, conflict of interests (see section on “Management of conflicts of interests”), protection of Human Rights
(see section “Human Rights”)n and protection of personal data (see relevant section).
Navigator has a policy of zero tolerance in relation to any breach of the legal or regulatory rules in force on these matters. To
this end, it undertook several projects in 2023 in order to consolidate ethical, transparent and socially fair conduct, based on
the ethical principles adopted.
Annual Report 2023 · Management Report 231
In order to prevent and mitigate the risks inherent in our dealings with third parties, Navigator implemented a series of
Compliance Policies in 2023, consisting of a Third-Party Integrity Verification Policy, a Compliance with
International Sanctions Policy and a Policy for the Prevention of Money Laundering and Financing Terrorism.
In keeping with internal policy documents already implemented, the Compliance Policies lay down general principles for
Navigator’s actions in its dealings with investors, Employees, Suppliers, Customers and partners, and the forms of conduct
which are expressly prohibited in the relations it establishes in the course of its business. They also define measures for
preventing these risks through appropriate due diligence procedures, in order to assess the risk of criminal activity and the
integrity of Navigator's counterparties.
Other important developments included the review of our Codes of Ethics and Conduct, Conduct for Suppliers and our
Code of Good Conduct for Preventing and Combating Harassment at Work, so as to harmonise them with the new
documents adopted.
Navigator regards Employee training as essential in order for these policy documents to be correctly implemented, with a view
to promoting a Compliance culture based on ethics and integrity. For this purpose it offers training courses in Compliance
issues, in particular concerning the Code of Ethics and Conduct, Internal Policies, Whistleblowing, Prevention of Corruption
and Related Offences and Protection of Personal Data. These courses were completed by around 3,000 Employees (including
Interns) in 2023.
Prevention of corruption and related offences
In view of the international context in which it operates, the growing involvement of the private sector in combating corruption
and related offences, and the legal obligations incumbent on it, Navigator has adopted a Corruption Prevention and Related
Offences Policy, through which it seeks to establish a series of professional values and standards of integrity which must be
shared by all its Employees. In addition to the principles already explained in its Code of Ethics and Conduct, this new policy is
underpinned by Navigator’s wholehearted commitment to preventing corruption, by an absolute prohibition, across the Group,
of any corrupt acts or related offences, and by implementation of a culture of ethics and integrity, both in the way we do our
jobs and in our dealings with third parties with whom Navigator establishes any business dealings, or other third parties with
whom Navigator Employees deal in the course of their work. Navigator has also implemented a Risk Prevention Plan for
Corruption and Related Infractions (“RPP”), in which it identifies the risks to which it is exposed in these matters, establishes
criteria for assessing these risks and lays down preventive and corrective measures designed to mitigate the likelihood of their
materialising; compliance with this is ensured by an executive director with responsibility for compliance. The risks are
assessed by considering the likelihood of their occurrence and the impact of such occurrence, using a qualitative scale to assess
these two variables. In line with the severity of the risk, a risk matrix is drawn up, classifying risks on a scale of negligible, low,
moderate, high and critical. Significantly, no corruption risks were identified as high or critical in 2023. The plan also identifies
the functions most exposed to the risk of corruption and bribery, such as those related to procurement and institutional
relations. It should also be noted that there were no confirmed cases of corruption in the reporting period, nor was there any
conviction for non-compliance with anti-corruption legislation. Confirmed cases of corruption are identified through receipt,
analysis and investigation of reports received through the Whistleblowing Channel, in accordance with the Whistleblowing
Regulation (see section on “Whistleblowing”). Training was offered in 2023 on prevention of corruption and related offences,
and this was completed by more than 2,200 employees.
Annual Report 2023 · Management Report 232
More than 2,200 Navigator Employees complete Training in Prevention of Corruption
and Related Offences
Targets 4.4, 16.5
Ethics and transparency are principles underpinning the internal policies that govern Navigator's activities.
The training developed in 2023 on Prevention of Corruption and Related Offences points to the importance that the Company
attaches to these matters.
Available on an e-learning basis, the course is aimed at all Employees and makes use of practical examples to promote
interactive learning about the response that the Company's internal policy documents offer in everyday situations where the
potential exists for wrongdoing. The aim is to familiarise Employees with these policies, underline their importance and help
them to understand the principles they establish.
This training also addresses topics such as the Corruption Prevention and Related Offences Policy, the Policy of Compliance
with International Sanctions and Restrictive Measures, the Third-Party Integrity Verification Policy and the Policy for the
Prevention of Money Laundering and Financing Terrorism. The course also deals with the question of conflicts of interests,
following on from the implementation of measures to step up internal control in this area over the course of the year.
Management of conflicts of interests
As part of its ongoing commitment to ethics and integrity, Navigator has needed to adopt measures to ensure impartiality in
decision-making processes, preventing any potential conflicts of interests involving the Company or its Employees.
This commitment is reflected in the way the Company manages conflicts of interests, which entails:
1. Implementation of clear policies and procedures defining what constitutes a conflict of interests and setting guidelines
for their identification, disclosure and resolution;
2. Promotion of an organisational culture that values transparency, honesty and integrity in all commercial interactions
and decision-making;
3. Regular training for all Employees, on how to recognise, report and resolve conflicts of interests appropriately;
4. Provision of communication channels, through which Employees and stakeholders can report concerns relating to
possible conflicts of interests.
In 2023, we stepped up our internal control procedures relating to identification of potential conflict of interests situations, by
implementing an additional procedure for reporting and investigating these situations. This new procedure has included
pinpointing Employees who, because of the nature of their jobs, find themselves in situations where conflicts of interests may
arise, and then going on to identify third parties who may constitute related parties in transactions with Navigator, updating
this analysis periodically. We recognise that effective management of conflicts of interests is essential for maintaining the trust
of our Customers, Suppliers and other Stakeholders. We are committed to applying the highest standards in all our operations
and ensuring that our corporate interests are aligned with those of all the parties involved.
Annual Report 2023 · Management Report 233
Competitive practices
Navigator is committed to acting in compliance with competition law, in accordance with market rules and criteria a strict
standards of ethics and integrity, seeking to promote fair competition and thereby contributing to the sustainability and
development of the markets in which it operates. These commitments are reflected in internal documents, such as the Code of
Ethics and Conduct and the Code of Conduct for Suppliers, which expressly lay down that Navigator’s business, and that of
its Suppliers, must be conducted in accordance with the standards governing fair competition and all the relevant legislation.
In conducting its business and in its interactions with all its Stakeholders, Navigator believes it is fundamental to promote a
culture based on transparency and trust, to have in place procedures that facilitate the identification, reporting and
investigation of concerns related to wrongdoing or breaches of the Code of Ethics and Conduct or other internal standards.
To this end, it has implemented a Whistleblowing Channel which guarantees anonymity, confidentiality, safeguarding and
non-retaliation in dealings with reporters, and also compliance with all data protection and information security standards.
This channel is an independent service managed by an external provider on Navigator's behalf, and can be used by Employees,
Suppliers, Clients, Service Providers, Local Communities or any other interested parties, to report any irregularities. It can be
accessed online and through the Navigator intranet.
As stipulated in the Whistleblowing Regulation, this channel can be used to report breaches of rules of good conduct or
ethical standards, fraud, corruption and related offences, discrimination, bullying and harassment, violations of human rights
and employment rights, protection of privacy and personal data, health and safety, environmental protection, as well as non-
compliance with legislation or external regulations to which Navigator is subject.
The responsibility for monitoring the Whistleblowing Channel is shared by several bodies and sectors at Navigator, in particular
the Audit Board, which under the Rules of Procedure of the Supervisory Board is required to assess the effectiveness of
the internal control system, comprising risk management and compliance functions, which therefore includes the
whistleblowing system, with powers to propose any adjustments that may be needed. In addition, as established in Rules of
Procedure of the Ethics Committee, this body is responsible for ensuring that a whistleblowing system is in place for reports
of breaches of the Code of Ethics and Conduct, as part of Navigator's wider arrangements for reporting irregularities. In order
to follow up the reports received, Navigator has set up a multidisciplinary team, including representatives from the risk
management and compliance units, appointed by the Whistleblowing Committee (WC). All those who may have an interest
conflicting with the subject matter of the report are required to declare this and stand down. The investigation either concludes
that there is no real issue, and so is closed, or else it proposes application of measures appropriate to the irregularity in
question.
In order familiarise its Workforce with the Whistleblowing Channel and win their trust, Navigator has provided training on the
subject, which was completed by 900 Employees in 2023 (2.130 Employees (including Interns) since it was first offered).
Protection of personal data
Navigator has embraced a strict obligation to respect the privacy and protect the personal data of its Customers, workers, service
providers, Suppliers, partners and other Stakeholders, as a fundamental commitment in all its activities along the value chain, in
accordance with the General Data Protection Regulation (GDPR).
In 2023, it accordingly updated its Personal Data Protection Policy (available on the intranet) whereby it establishes a series of
guidelines designed ensure compliance with the Regulation and to standardise procedures on this issue.
Review of this Policy resulted in a stronger protection system for personal data, involving all Employees in general, and in
particular those processing personal data. This was complemented by specific training and awareness raising activities, in order to
ensure that Navigator continues to operate in compliance with the GDPR, for the sake of legal security and privacy.
Annual Report 2023 · Management Report 234
Human Rights
GRI 3-3, 2-23, 2-24, 2-26, 407-1, 408-1, 409-1
ESRS SBM-2,SBM-3, MDR-A, MDR-M, S1-1, S1-3, S1-17, S2-1, S2-3, S2-4, S3-1, S3-3, S3-4, S4-1
For Navigator, respect for human dignity as a fundamental right is an essential question of ethics and one of the foundational
principles of our Group's culture and policy.
We believe in our role in building a better society, by conducting our operations and activities on the basis of a responsible
corporate culture. This means we are committed to respecting Human Rights throughout our operations and value chain and are
signatories to the English and Portuguese versions of the "CEO Guide to Human Rights", published by WBCSD and BCSD
Portugal, alongside other international and Portuguese companies.
Putting our commitments into practice, we have a Human Rights Policy that envisages measures to ensure respect for the
human and employment rights of all those who have dealings with the Navigator Group.
Our Policy also enshrines our commitment to due diligence on human rights issues, in line with the principles established in the
Universal Charter of Human Rights, the OECD Guidelines for Multinational Corporations, the Fundamental Conventions of the
International Labour Organisation and the United Nations Guiding Principles on Business and Human Rights. Navigator’s
responsibilities for upholding human rights also extend to the value chain, where the Company has increasingly adopted a tough
stance on implementation of measures to provide appropriate protection. In order to strengthen this commitment, we signed up in
2024 to the UN Global Compact and we are taking part in the related Business & Human Rights Accelerator Program, in order to
implement a continuous due diligence process aligned with the requirements of the Corporate Sustainability Due Diligence
Directive (CSDDD) As part of the due diligence procedure being implemented, we signed a contract with a Third-Party Integrity
Verification platform, through which we gather human rights information on 3,735 Navigator counterparties. In addition to the
Human Rights Policy, the Code of Ethics and Conduct lays down a cross-group prohibition of forced and child labour, guaranteeing
access to decent employment and ensuring that Employees enjoy a safe and healthy working environment, fair and equitable
remuneration, personal development and ongoing training, privacy of their personal data, respect for rest times, access to the
applicable welfare systems and respect for parental rights, encouraging a healthy work-life balance. The Code of Conduct for
Suppliers also contains an absolute prohibition of child or forced labour of any kind, as defined in International Labour
Organisation (ILO) Convention no. 138. It likewise determines that the personal dignity, privacy and personal rights of every
individual must be respected, as well as establishing rules applicable to working hours, and to health and safety, in order to
prevent job insecurity along the value chain. In connection with our efforts to uphold Human Rights, attention is also drawn to the
receipt, analysis and investigation of reports received through the Whistleblowing Channel (see section on “Whistleblowing”),
which is available on the Company website for any Stakeholder, including members of Communities affected and workers in the
value chain. This allows for the reporting of human rights violations, in particular breaches of the Code of Ethics and Conduct and
the Human Rights Policy, which enshrine non-discrimination and protection of these rights. In the areas where forestry operations
are conducted in Mozambique, there are Community Liaison Officers (Chapter 6.4.3) who also assess issues related to Human
Rights, such as the existence of child labour. It should be noted that, in the reporting period and on the basis of the different
procedures instituted, there have been no confirmed cases of Human Rights violations.
Annual Report 2023 · Management Report 235
Navigator implements new Third-Party Integrity Verification System
Targets 8.7, 8.8, 16.5 and 16.6
One of the internal Compliance Policies implemented in 2023 has to do with Third-Party Integrity Verification. In order to
apply its principles, Navigator has signed a contract with a new platform that aggregates international data bases and
information analysis technology, in order to optimise searches of entities and facilities the process of checking compliance
with international sanctions.
The platform carries out automated and auditable searches, taking in indicators such as compliance with legislation,
analysis of business and corporate risks, adverse media monitoring, verification of international sanctions, the Global
Slavery Index and identification of Politically Exposed Persons (PEPs). It also comprehensively integrates financial, ESG and
Compliance components, offering a robust all-round data base, especially in the areas of Compliance and Sustainability, due
to inclusion of a specific ESG module. In 2023, Navigator used this platform to analyse the risk of 3,735 counterparties, and
adopted enhanced analysis measures in relation to 222 entities.
The new Third-Party Integrity Verification Policy sets out Navigator’s commitment to preventing and mitigating the risks of
wrongdoing and fraud, in its dealings with investors, Employees, Suppliers and customers. Third-Party Integrity Verification
System plays a crucial role in this area, providing the information necessary for a comprehensive and efficient analysis that
helps to protect the Company and its Stakeholders from the risks involved in its business.
Diversity, equity and inclusion
GRI 2-7, 3-3, 401-3, 405-1
ESRS MDR-A, S1-9, S-15
In its Human Rights Policy (see section on “Human Rights”), Navigator accepts a commitment to value diversity, gender
equality and inclusion, as a way of effectively ensuring equality of opportunities at work, including with regard to migrant
workers and disabled people. Non-discrimination is expressly enshrined in our Codes of Ethics and Good Conduct for Employees
and Suppliers. We see respect for human dignity as a question of fundamental rights and one of the foundational principles of the
Group's culture and policy. Our Employees accordingly accept a commitment to take action and report all practices that might
amount to any type of discrimination.
In 2023, Navigator approved a new governance model for Diversity, Fairness and Inclusion (DFI). This identifies a manager and
committee who report to the directors, supported by a broadly based multidisciplinary working party.
This decision was taken to provide a stronger basis for needs assessments, proposals and implementation of internal initiatives
and projects in this area. In this new model, the previous working party for Equality has been overhauled in order to increase its
diversity in terms of the gender, age, nationality and professional experience, with members representing the divisions most
directly involved in designing and following through our strategy in this area.
Thirty nationalities are represented in Navigator’s workforce, and 24 of these relate to Employees in operations in Portugal. In
addition, it is largely male dominated, with women accounting for 19.0% of the Company's labour force in 2023. This disparity is
essentially due to historical reasons associated with the industry and the operational structure - a male culture due to the
physically taxing nature of most jobs in the forestry and industrial sectors.
Annual Report 2023 · Management Report 236
Workforce breakdown in 2023
No. Employees by gender
9.6% more Women
(vs. 2022)
NB: This figure does not include 150 employees at the new tissue unit in Ejea. These
Employees are not included in reporting because they are still in the process of
integration into our system. For further detail, see the notes to GRI 2-7.
Although The Navigator Company continues to aim at gender parity, when it comes to recruitment, the organisation is still a
male-dominated world. In more recent years, the growing number of women joining the company correspond, predominantly, to
younger age ranges (under 30 years). These women are joining the Company in entry-level or mid-level positions, and may be
expected to progress in their careers. The Company intends to continue increasing the number of women in its workforce, and will
take steps internally so that women are able to grow into leadership roles.
In order to achieve greater gender equality, in its various dimensions, to strengthen the Group's practices in this area, and also to
press ahead with policies to facilitate a better work-life balance, several measures envisaged in the “Gender Equality Plan 2023”
were implemented and the ”Equality Plan 2024” was drawn up.
Although the number of female managers corresponds to 15.2% of all women, it is expected that this indicator will rise over time,
as women naturally progress in their careers. In 2023, new female directors were appointed for key Company sectors, with effect
from January 2024, resulting in significant progress in the representation of women in senior management over the past five
years.
Men
2.688
81.0%
Women
629
19.0%
3,317
Employees
629
2,688
574
2,672
534
2,616
Women Men
2023 2022 2021
Annual Report 2023 · Management Report 237
Gender breakdown in functional categories in 2023
(%)
NB: See the GRI Table for detailed information on calculation of the indicator GRI 405-1.
As a Company, we believe it is our responsibility to be a catalyst for change and to bring a positive influence to bear on society, so
that it achieves this aim. With this aim in view, we are continuously committed to taking the following action:
• Inclusive working environment: create a working environment that promotes diversity and inclusiveness, where
everyone, irrespective of their gender, feels valued and respected;
• Pay equity: ensure pay equity in our organisation, ensuring that women and men receive fair pay for equal work or
work of equal value;
• Professional development: investment in professional development of all people, encouraging women to seek
leadership opportunities, ensuring equal access to training, promotion and bonuses;
• Leave and flexibility policies: implement policies that contribute to a better work-life balance, including fair
maternity and paternity leave, as well as flexitime working;
• Awareness-raising campaigns: conduct campaigns to raise awareness of equality issues;
• Continuous assessment: regularly monitor and assess our initiatives to ensure that we are making our best
endeavours to contribute to progress in promoting equality.
Because we are a Company listed on the stock exchange, we are subject to Law 62/2017 of 1 August, setting rules on balanced
representation of men and women on boards of directors and audit boards. In order to promote diversity within Navigator,
the Board of Directors has accepted and recognised the following diversity principles as appropriate to the composition of the
company bodies and management positions:
• Inclusion of individuals with different academic qualifications and professional experience in different areas, when
appropriate and relevant to exercise of the office in question;
64,3%
84,8%
60,6%
68,3%
90,8%
35,7%
15,2%
39,4%
31,7%
9,2%
Governance
Bodies
Top Management Senior
Management
Middle
Management
Operatives
Men Women
Annual Report 2023 · Management Report 238
• Promotion of gender diversity;
• Inclusion of individuals of different ages, combining experience acquired from new perspectives;
• Inclusion of individuals with life experiences in diverse geographical regions.
At Navigator recognise the benefits of diversity in our boards and management, in particular in the Board of Directors, the Audit
Board and management positions, as a way of ensuring an improved balance in their composition, optimising the performance of
each member and of each body as a whole, improving the quality of the decision-making process and contributing to the
Company's sustainable development.
We are likewise committed to promoting gender equality across the Company. We recognise that contributing to the goal of parity
between men and women requires a continuous focus on increasing the number of women in our staff, preparing the way
internally, through improved policies and practices, for them to evolve increasingly towards leadership positions.
At Navigator we apply no pay differential between men and women, and the entry-level salary is the same for both genders,
male and female. The pay ratio presented considers macro-level groupings, and for each of these, we have different salary levels
resulting from different career pathways, with an impact on the average figures obtained for the reported pay ratio.
The Navigator Company remains committed to stepping up its policies and practices for promoting equal opportunities through a
meritocratic culture and elimination of discrimination in any form, so as to improve the gender distribution in management
positions. To this end it has sought to develop the skills of its leaders (actual and potential) through training and coaching
programmes. These schemes, along with career paths and plans for women, including in operational roles, have helped to support
professional women with the potential to rise to leadership positions and to bring about a better gender balance in all functions in
the organisational pyramid. One example of these practices, as mentioned above, was the appointment, in 2023, of new female
directors for key Company areas, with effect as from January 2024.
The figures for the parental leave indicator show that 100% of Employees who took parental leave returned to work afterwards,
and there have been consistently high rates of retention in the subsequent 12 months (at around 89%).
Annual Report 2023 · Management Report 239
Return to work and retention rates after parental leave in 2023
(%)
NB: See the GRI Table for detailed information on calculation of the indicator GRI 401-3.
A new measure was implemented in 2023 to protect parenthood, in the form of a Childbirth Bonus, applicable to the children of
Employees born as from the start of the year. This bonus was awarded for 111 children born to Employees, in 2023,
corresponding to investment of 160,953.51 euros.
Navigator’s measures for fostering a work-life balance for its Employees complement its WFH policy, with a series of additional
initiatives relating to working hours, 25 working days’ holiday leave, family support programmes that include nursery allowance,
school textbooks allowance, study grants, allowance for disabled children and a holiday camp. In 2023, the Company awarded
1,560 welfare allowances under its family support programmes in Portugal, representing investment of 673,210 euros.
Despite the cooperation agreements already established, Navigator is always looking for other partnerships which might help to
provide increased support, in particular through the different initiatives of the “CRESCER” (Growing) project.
The following are examples of our initiatives in 2023 with the aim of promoting diversity, equity and inclusion, and guaranteeing
equal opportunities:
• In its training programmes, Navigator has developed a specific module on Equality and Diversity issues, for
implementation in 2024, and signed up key personnel in the organisation for with “Unconscious Bias” training
provided by GRACE, with the aim of equipping the organisation to analyse and develop measures to eliminate biases
that affect attitudes with regard to diversity issues.
• As part of efforts to strengthen a culture of equality between women and men, the celebrations for International
Women's Day, featuring the Campaign “Women who Inspire us”, served again to raise awareness of equality issues
by recognising the professional achievements of a series of women in the Company, with very different personal and
professional experiences, whose example has contributed to building a more inclusive society.
100%
88%
100%
89%
Return to work rate Retention rate (12 months)
Men Women
Annual Report 2023 · Management Report 240
• External partnerships and participation:
o Navigator has been a member of the new BCSD Portugal task force for Diversity, Equity and Inclusiveness
(DEI) and has taken part in the “Study of DEI in Portuguese business”, launched in partnership with EY,
setting out to assess the level of maturity of Portuguese companies and the practices they have in place in
this area, in order to contribute to the path to be travelled.
o The Company continued its partnership with the responsible business association, GRACE, largely to promote
engagement by key personnel in the organisation with the association’s activities. We also accepted the
invitation from AmCham Portugal to sign the Empower Her Declaration, which contains a series of
commitments aligned with those made by Navigator, further consolidating its stance on these issues.
o Outside Portugal, Portucel Moçambique has exercised its corporate social responsibility by continuing to
support the GirlMove Academy, which works to empower young women and train them for leadership. These
are values with which our Company is aligned and which it puts into practice in its everyday operations,
taking every opportunity to further them. The Company has already provided training placements for two
young women from the project. A traineeship was also awarded to the best female student at Unizambeze,
in Mozambique.
o In Mozambique, with the involvement of the International Labour Organisation, work started on a gender
study in the country’s wood processing sector, in order to identify opportunities for employment and decent
work for women in companies in the sector.
With regard to Law 4/2019 of 10 January, which establishes a job quota system for disabled persons with an incapacity greater
than or equal to 60%, and requiring companies in the private sector to hire disabled people, we are at the stage of transition to
ensure that we comply with our legal obligations.
Discrimination incidents are investigated through the reception, analysis and investigation of reports received through the
Whistleblowing Channel (see section on “Whistleblowing”), in accordance with the Whistleblowing Regulation. Instances of
discrimination can be reported relating to other Employees, Suppliers, Customers, Service Providers, Local Communities or any
other stakeholders, involving in particular breaches of the Code of Ethics and Conduct and the Human Rights Policy, which refer
specifically to discrimination on the basis of race, religion, gender, sexual orientation, descent, age, language, territory of
origin, political or ideological convictions, economic situation, social context or type of contract. In addition, harassment
incidents are reported as a specific form of discrimination, as established in the Code of Good Conduct for Preventing and
Combating Harassment at Work. Reports are processed as established in the Whistleblowing Regulation and responsibility
for the procedure lies with the Whistleblowing Committee.
It should be noted that there were no confirmed cases of discrimination in the reporting period.
Annual Report 2023 · Management Report 241
Advocacy activities
GRI 415-1
ESRS G1-5
In 2023, the Public Affairs Division (PAD) consolidated the work done in monitoring and reporting initiatives that have an impact
on the life of Communities and the country and has taken the lead in The Navigator Company’s initiatives concerning regulations
(environmental and social issues), thereby contributing to a closer and better informed relationship with our institutional
stakeholders.
The work of the DAP is overseen by the executive director responsible for legal, compliance and public affairs.
The Navigator Company has been registered, since 2020, with the EU Transparency Registry, with registration number
609473539427-24, and has signed the EU Transparency Register Code of Conduct.
Its main activities in 2023 were aligned with the commitments and goals established on the material topics presenting challenges
and also opportunities for Navigator’s responsible management. These topics included climate change and CO
2
sequestration,
energy and raw material management, water management, sustainable forest management, biodiversity conservation, the
circular economy and research and innovation in the forest-based bioeconomy.
Attention is drawn to the following PAD activities in 2023:
• At European level, seeking to engage with a range of MEPs to address the most pressing issues on the European
political agenda within the Company's field of activity - this includes Research and Development (R&D), the Carbon
Border Adjustment Mechanism (CBAM), the European Taxonomy, the Green Deal, Fit for 55, the Renewable Energy
Directive (RED III) and the Paper and Packaging Waste Regulation (PPWR).
• In Portugal, it has engaged with Members of Parliament and other leading figures, addressing topics in Navigator's
Regulatory Agenda, in particular in the fields of forestry, the environment and energy.
Through engagement with this Stakeholder group (MPs), the Company has sought to raise awareness of the challenges and
obstacles facing to the pulp and paper cluster, especially in the energy and forestry sectors. Navigator has also drawn attention to
the importance of forest-based bioproducts to national and global decarbonisation endeavours (wood, cork, pulp and paper,
furniture, biofuels, synthetic fuels such as e-SAFs and e-methanol, new packaging products or bio composites, among other
things), stressing the idea that these renewably sourced products, which are recyclable and biodegradable or compostable, will
gradually replace single use plastics, from fossil sources, thereby contributing to a more decarbonised society based on more
sustainable patterns of consumption.
A deeper relationship with institutional stakeholders has been fostered through more regular and participative interaction and
listening to their concerns.
It may be noted that Navigator makes no contributions to political parties.
WHAT NEXT?
• Third-Party Integrity Verification: assessment of counterparties using new risk assessment criteria and an action plan
to address issues raised (2024).
• Implementation of procedures from Human Rights Policy in the fields of recruitment audit and procurement (2024).
• Internal training.
• Adaptation to the Corporate Sustainability Due Diligence Directive (2024).
Annual Report 2023 · Management Report 242
6.5.2. Research and innovation in the forest-based bioeconomy
GRI 3-3
ESRS MDR-A, MDR-M, MDR-T
Investigation, innovation and the ability to apply knowledge to industry are what underpin Navigator's
identity. At a time when society is looking for new, more sustainable development models, we have put our
core strengths at the service of a low fossil carbon economy.
OUR IMPACTS
€14.2m
5
5
Investment in RDI
61
Prototypes
New patents submitted and 2
approved, one national and one
European
10
4
23
Proofs of concept
Potential bioproducts or businesses
at the technical-economic
assessment stage.
Scientific publications
89
25
3
Researchers and technicians, including
24 PhDs
62
Doctorates in progress, of which 15
completed
Master's degrees, of which
1 in progress
61
Navigator's total RDI spending on the basis of the amount eligible for SIFIDE (the figure stated is that for 2022, as the final value for 2023 will only be determined in
June 2024)
62
Figures at 31/12/2023.
Annual Report 2023 · Management Report 243
At The Navigator Company we believe that scientific knowledge, people with talent and expert skills, combined with innovation
and technology, offer a promising foundation for a sustainable future. These are the prerequisites for developing bio businesses
and a new array of Portuguese industries that aspire to making a difference, by creating economic value in harmony with the
Climate and Nature.
Innovation and technology, firmly anchored in Research and Development (R&D) activities, are the foundation of Navigator's
business, ensuring that its products and processes are sustainable.
Creating Value Responsibly, the central concept in our 2030 Agenda (Chapter 6.2.4), presupposes designing and putting in
practice solutions that create sustainable value and competitiveness in the long term. In our 2030 Roadmap we have therefore
accepted the following commitments:
• Develop adaptive forestry practices, from a climate change perspective.
• Develop packaging papers with greater mechanical strength.
• Develop sustainable bioproducts, reducing dependence on fossil resources and working towards an economy free of
fossil carbon.
• Promote scientific and technological co-creation in the field of the bioeconomy and bioproducts.
Mindful of the importance to our operations of scientific and technological expertise, Navigator took a pioneering step in Portugal
in 1996 of setting up its own R&D centre in partnership with three Portuguese universities. This was RAIZ, our Forestry and
Paper Research Institute.
RAIZ is today a private non-profit organisation, recognised as an entity belonging to the National Science and Technology System
and as an Interface Centre (Technology and Innovation Centre), contributing to the competitiveness of the Company and of the
sector in general, with positive impacts throughout the value chain. It is the largest private institute in Europe, and one of the
largest in the world, devoted to R&D in eucalyptus forests and their products.
RAIZ’ work is aligned with our purpose and aim of optimising and diversifying processes and business. The ultimate aim is to
create innovative solutions able to respond to the various challenges facing forests and forest-based products.
RAIZ’ research covers the whole value chain, from the forest, through the production process, to the end product. Its forestry R&D
is geared to increasing yields and improving resilience, aims it pursues by developing new genetic materials (Eucalyptus globulus
or hybrids of different eucalyptus species), by cloning or seeding (natural selection, without genetic modification), solutions for
fighting pests and diseases in the forest, improving the soil and nutrition, good practices and forest management tools, which
include the environmental dimension, and especially the forest and water perspective. In technological R&D, RAIZ focuses on
optimising procedures, efficient use of wood and water resources and environmental compliance, through the recovery of process
by-products, development of new products based on cellulose fibre, as well as new bioproducts, resulting from implementation of
the biorefinery concept at our pulp and paper mills. The expertise developed in this work is transferred to the operational sectors
or, in the case of new bioproducts, scale up and technical-economic feasibility studies are conducted, involving our pilot
laboratory.
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The science generated at Portuguese universities, in the field of biotechnology and the bioeconomy, has underpinned lasting
partnerships that we are eager to carry forward. Our commitment to working collaboratively involves not only Stakeholders in
the Portuguese science and technology system, but also international partners and leading players in our industry.
In order to advance our RDI activities, we therefore take part in networks and consortia, submitted applications to funds and
external financing programmes (in Portugal and abroad), in addition to our own investment in this field. The knowledge resulting
from these activities has a real economic impact, that can be seen in the creation of innovative and distinctive products, in
addition to new technology and services. By supporting the work of a wide team of researchers, technicians and bursary holders,
we are able to contribute to postgraduate training in Portugal and to generating jobs in science. We encourage the creation of
intellectual property and scientific publications in the fields of forestry, pulp, paper and forest-based biorefineries. We also
place this expertise at the service of society, through forest literacy programmes, as exemplified by RAIZ’ “Floresta do Saber”
(Forest of Knowledge) Project (Chapter 6.4.3).
In structural terms, our financing policy provides us with sound and consistent foundations for gradual implementation of projects,
enabling us to act systematically in advance of programmed events. We have also been promoting partnership projects and
applying for funding (Chapter 5) to leverage the transition to a low-carbon economy and to the bioeconomy, thereby boosting our
contribution in this area.
Innovation, Technology and Forestry R&D
Significant work was carried out in 2023 under RRP - TransForm, notably in the areas of: genetic improvement of eucalyptus;
circular economy through recovery of solid waste from the pulp and paper industry as an organo-mineral fertiliser and soil acidity
conditioner; development of thematic mapping as a forestry management tool; implementation of a network of observation plots
for monitoring the phytosanitary and nutritional state of the forest (ICP network at European level and ICNF in Portugal);
valuation of ecosystem services so as to attribute a value to service provided by the forest, which are either not valued or else
undervalued by the markets.
The project is expected to result in an increase in the levels of ecosystem services, including not only regulation and cultural
services, but also an increase in forestry yields.
Annual Report 2023 · Management Report 247
Main developments 2023
• In the field of genetics, biotechnology and plant production, important efforts are being made to
increase genetic diversity in the Improvement Programme, with the aim of developing new materials,
mainly hybrid clones which can make our plantations more resilient to high temperature and water
stress, and more resistant to attack by pests and diseases.
• Work has started on selecting individuals with superior phenotypes in seeded stands of Eucalyptus
urophylla, in order to increase the genetic variability of the materials available to Portucel
Moçambique. This initiative has followed on from the previous year's review of the improvement
programme guidelines by RAIZ and Portucel Moçambique. Alongside this, researchers have seeded
further new plots of various eucalyptus species, and a series of cloning trials have been conducted
with hybrids (not yet tested in the Mozambique's soil and climate conditions).
• In the field of soils and plant nutrition, important work has been done to monitor the nutritional
state of eucalyptus forests, studies with water retention polymers, development of new techniques for
land preparation and tillage, as well as recovering industrial solid waste as fertilisers and soil
conditioners to correct acidity.
• After starting to harvest its forests in 2021, Portucel Moçambique has felt the need to learn more
about management of its plantations on a coppicing basis. With help from RAIZ, it has designed and
implemented the first trials of this approach, which will seek to determine the key criteria for
managing this type of forests.
• In the area of IT or Supporting Technologies for Forestry Management, an area that links up with
other fields studied by RAIZ and with Navigator’s Forestry sector, including application of remote
detection technologies, geographical information systems and data bases, work has been carried out
in response to requests from other Navigator sectors, such as the survey of the burned area after the
fire in Odemira and an estimate of the severity of the fire using Sentinel-2 satellite images (10m),
landscape dynamics surveys such as detection of felled areas, identification of new plantations and
the age of eucalyptus stands.
• In the field of forestry management modelling and tools, we made significant progress this year
on developing models and tools to support forestry management. Examples of these are the 3PG
physiological model and hybrid regression analysis models for estimating yields on the basis of soil
and climate variables and improvements to the foracanta risk model.
Annual Report 2023 · Management Report 248
A natural enemy to fight the eucalyptus snout beetle
Targets 15.2, 17.6
Close to 3 thousand Anagonia lasiophthalma flies were released during 2023 with the mission of controlling one of the most
significant eucalyptus pests in Portugal and worldwide, the eucalyptus snout beetle.
In the work they have been doing on biological control of this pest, using the beetle’s natural enemies, RAIZ, the University of
Aveiro, the University of Coimbra and Instituto Superior de Agronomia (University of Lisbon), in collaboration and Altri
Florestal, have pinpointed the effectiveness of this fly, which originated in Australia, as a parasite feeding on the beetle’s
larvae, making it a natural enemy.
Having secured import licenses from the Institute of Nature Conservation and Forests (ICNF), the researchers have built up a
colony of Anagonia from insects gathered in Australia. It was first necessary to study and characterise the biology of the insect
in order to conclude that Anagonia is an effective parasite against the eucalyptus snout beetle, reducing the damage caused by
this pest. It was also important to establish that the risk of undesirable environmental effects, above all on other insects,
would be negligible.
Anagonia were first released in the field in 2023, on a Company property in Castanheira de Pera, after obtaining authorisation
from ICNF.
Further releases are planned for the years ahead, along with continuous monitoring of how they establish themselves in the
wild, their ability to disperse and their effectiveness in controlling the eucalyptus snout beetle.
Innovation, Technology and Technological/Industrial R&D
The central focus for activity in 2023 was the RRP From Fossil to Forest Agenda, led by The Navigator Company and with RAIZ as
a consortium member, pressing ahead with the work as planned. The consortium is seeking to develop, patent, product and
market innovative packaging solutions to substitute existing fossil-based plastic packaging with products that are renewably
sourced, biodegradable, recyclable and carbon neutral, based on a home-grown raw material derived from planted and
sustainably managed forests (Eucalyptus globulus). Examples of products to be developed under this Agenda by December 2025
include: development of high-yield chemical pulps, needing to consumer less wood and process chemicals; brown kraftliner paper
or flexible packaging; paper with barrier properties, for example against oils and fats and/or steam; biocomposites incorporating
cellulose in their formulation in combination with thermoplastics (including bioplastics) for rigid packaging and other applications;
sensors in paper for smart packaging; rigid packaging solutions in moulded cellulose for different segments.
Annual Report 2023 · Management Report 249
Annual Report 2023 · Management Report 250
Main developments 2023
• The Navigator Company has an ongoing programme of investment in the production of high-yield
chemical pulps at its Industrial Complexes. This has involved a number of laboratory studies to
establish the optimum conditions for producing these pulps, and also process simulations, which are
essential for designing the changes to be made to the existing plant. These pulps will make it
possible to consume less wood and process chemicals, contributing to The Navigator Company's
development of brown kraftliner paper and other flexible packaging solutions.
• Work to develop barrier properties in paper for flexible packaging has included laboratory studies of
paper coatings with different additives, to obtain paper with barrier properties against oils and fats,
steam, absorption of liquids, oxygen or combinations of these barriers. Promising results have
already been achieved for some of the barriers under study. A pilot facility has been acquired, under
the RRP From Fossil to Forest Agenda, for future testing of additives already trialled in the laboratory,
or others to be developed, in conditions close to those currently existing in industrial units equipped
for coating paper using similar plant.
• A number of studies and laboratory trials have been conducted with a view to developing new and
innovative tissue products, in line with new market trends and consumer preferences and to support
The Navigator Company in its differentiation strategy for tissue products. RAIZ is also involved in the
RRP be@t Agenda for the Bioeconomy in the Textile Industry, seeking to develop non-woven fabrics
based on cellulose and using other components from sources more sustainable that the fossil-based
components currently used to manufacture products of this type.
• In the field of water use, significant efforts have been made, in coordination with The Navigator
Company’s operational divisions, with the aim of reducing use (Chapter 6.3.4), in line with the target
set by Navigator for 2030. This has entailed studying and implementing a variety of measures, some
more technically complex than others, at the Company’s various Industrial Complexes and
monitoring their implementation and effectiveness. Examples of measures being studies or already
implemented include: optimisation of pulp washing; closed circuits; substituting water with other
liquid process currents and using emerging effluent treatment technologies to reintroduce them in
the production process.
• In the field of effluent treatment, research has been conducted in coordination with the operational
teams at The Navigator Company's various Industrial Complexes, in order to optimise the
performance of waste water treatment plants, and to improve the operational stability of these
facilities, their ability to respond to process disruptions and diagnosis capabilities, ensuring
compliance with emission limits for liquid effluents and their impact on the environment. Research
staff have also followed through the revamping of one of the waste water treatment plants at the
Setúbal Industrial Complex, from drawing board through to start-up, commissioning and operation,
ensuring it is prepared to treat the effluent generated both from the future production of high yield
pulp, and from the production of brown paper.
Annual Report 2023 · Management Report 251
Bioproducts
In the field of bioproducts, our Pilot Laboratory was fitted with new facilities in 2023, in particular pilot equipment for scaling up
and demonstrating new cellulose packaging products with barrier properties, offering an alternative to single use plastics,
especially for the food sector (see insert on “development of moulded cellulose products”) These facilities also served for
continued technical and economic feasibility studies of new bioproducts (indicated below).
Main developments 2023
• Production of cellulose sugars and conversion into bioethanol for use in biofuels.
• Production of cellulose fibre biocomposites and thermoplastic matrix materials, notably for bioplastics
such as PLA, for use in injected plastic of thermoforming products, filaments, and technical textiles.
These applications are being tested with potential end users.
• Production of essential oils and bioactive products extracted from eucalyptus bark and foliage for a
range of applications, such as cosmetics and healthcare.
Moulded cellulose packaging: the new sustainable packaging solution
Targets 8.4, 9.5
The Navigator Company's ventures in sustainable packaging will move to a new level in the second half of 2024, with the start-
up of an innovative industrial unit for integrated production of moulded cellulose parts from Eucalyptus globulus pulp. This will
be a further stride forwards for the RRP From Fossil to Forest Agenda, which seeks to substitute the fossil-based packaging
solutions currently on the market, in particular in the food packaging segment.
These thermoformed moulded cellulose products were developed in the laboratory and then piloted, which is being followed up
by industrial-scale production of rigid packaging, for which the main raw material is the Eucalyptus globulus pulp produced by
The Navigator Company.
In line with one of the goals of the From Fossil to Forest Agenda, a pilot facility has been acquired and installed at RAIZ, able
to produce the prototypes for products of this type with different water-based chemical additives, in order to develop and
select the formulations that best meet market requirements for barrier properties, especially against oils and fats.
Annual Report 2023 · Management Report 252
The project has also involved intensive research and development activity in search of more effective solutions for obtaining a
barrier to oils and fats. Performance tests have also been conducted on the prototypes, under real conditions of use.
Care has been taken for the products to be suitable for food contact, so as to ensure that the products developed meet the
requirements currently in place in the different markets for which they are intended.
Research staff have also followed through the work on the industrial project to install a new production unit for this type of
moulded cellulose products, ensuring the solutions developed in Research and Development are aligned with the technical
solutions to be implemented in the new production unit.
WHAT NEXT?
• Development of new genetic materials and biological solutions to combat pests and diseases (ongoing, 1-2 new clones
per year).
• Development of best management and silviculture practices, contributing to more productive forests, resilient to biotic
and abiotic risks (ongoing).
• Development of new bioproducts (ongoing):
o New packaging materials, in particular to replace single use plastics;
o New tissue products for hygiene and health applications (1-2 new products per year);
• Further study of the technical and economic feasibility of potential biochemicals and biofuels derived from waste
forestry biomass and biocomposites (2025).
• Identification and monitoring of opportunities in the field of synthetic fuels (e-fuels) produced from biogenic CO
2
generated at our mills (ongoing).
• More efficient use of water and wood resources in the industrial process (continuous improvement).
Annual Report 2023 · Management Report 253
6.5.3. Customer Management
GRI 417-1/2/3
ESRS MDR-A, MDR-M, MDR-T, SBM-2, S4-4, S4-5
Our products and solutions start with our Customers. Because we listen to them actively and seek to understand
their priorities, on the basis of a lasting partnership.
OUR IMPACTS
0
0
64.2%
Incidents of nonconformity in
marketing communications
Incidents of nonconformity in
product labelling
UWF sold with certification
90.4%
94.4%
64.7%
Pulp sold with certification
Tissue sold with certification
Packaging sold with certification
95%
67%
Customer Satisfaction Index,
paper – Printing and writing
papers
Customer satisfaction index -
Tissue
Annual Report 2023 · Management Report 254
Management of our Customers is the key to the Company’s success and has a direct impact on our strategy and business model.
By monitoring market trends and listening to our Customers we are able to develop innovative products and solutions,
adapted to their needs and expectations, and also to offer society sustainable alternatives, with less environmental impact
than non-renewable products.
The main paper fibre used by the Company (Eucalyptus globulus) enjoys advantages over other species of trees, such as its ability
to produce paper with a lower specific grammage and using a smaller area of forest, the possibility of being subsequently
recycled, resulting in recycled products of higher quality, as well as the potential for use in new products.
In the packaging sector, the need to substitute fossil-based materials, such as plastic, with others obtained from renewable
sources (such as pulp and paper), points to the road we have been travelling in the packaging segment, where the quality of
eucalyptus fibre has been crucial to the successful take-up of our products on the market.
A wide variety of sustainable solutions are offered, ranging from products under the gKraft
TM
brand (packaging papers in three
macro-segments - BAG, FLEX and BOX - for paper bags, flexible packaging, corrugated cardboard boxes for higher value-added
products and food packaging) to articles in moulded cellulose (for rigid packaging in the food service and food packaging market).
The growing trend towards digitisation has had an impact on paper consumption, especially in uses linked to commercial
transactions, such as paper invoices and receipts, and in the use of printing paper for newspapers, magazines and advertising
catalogues, which has had a negative effect on European output of UWF (Uncoated Woodfree) paper, also reducing the quantity of
paper for recycling. Even so, Portuguese manufacturers have succeeded in countering this with increased output and market share
in the graphic paper segment in which we operate, and in sales of chemical pulp to the tissue and packaging segments.
On the other hand, consumption of printed books and notebooks has held steady, and in some cases increased, thanks to the
acknowledged importance of using paper in education and teaching. Specialist studies have pointed to the advantages of paper
over digital media, as regards the cognitive and critical aspects of learning, both in reading (better comprehension, focus and
memory) and in writing (motor and cognitive development in the brain).
In tissue papers, new segments have grown up with special attributes in the end products - soap for degreasing surfaces,
absorption of fats from fried foods, essences for ambient perfume, and others.
In general, legislators and consumers alike have paid greater attention and attached more value to the sustainability attributes of
the product, its manufacture and origin, and of its packaging. Our own direct Customers are particularly concerned with knowing
the carbon footprint of products. In terms of the regulatory framework, the European Union Anti-Deforestation
Regulation (EUDR, EU Regulation 2023/1115) came into effect in 2023. The EUDR applies to the origin of imported agricultural
produce (such as soya, palm oil, beef and coffee, as well as to wood and rubber products) and their relationship with
deforestation, in particular in Asia and Latin America, banning imports of products from regions deforested after December 2020.
In order to respond to the concerns of its Customers, in particular, and of its Stakeholders in general, the Company keeps up with
these issues and takes an active part in developing tools and methodologies for implementing the new demands. Through its
membership of CEPI, Navigator has contributed to providing a full life cycle analysis methodology, appropriate for paper
products and able to offer comparability. Another example was its decision to sign up, in early 2024, to the European
Commission's pilot scheme for the EUDR Regulations, demonstrating the Company’s complete transparency and support for
the fight against global deforestation.
In addition to the quality, innovation and sustainability credits associated with our products (Chapter 2.2), we offer our
Customers and Consumers and additional guarantee through the forestry certification label and/or EU Ecolabel borne by our
products.
With the ultimate aim of satisfying our Customers and the growing demand sustainability aligned products, our 2030 Roadmap
(Chapter 6.2.4) sets out our commitments to:
Annual Report 2023 · Management Report 255
• Cultivate lasting relations with Customers through active listening and through joint initiatives to respond effectively to
their needs. In keeping with this, we have set ourselves the goals of maintaining or increasing the Customer Satisfaction
Index (CSI) in each of the segments in which we operate: UWF, CSI > 90% by 2030; Packaging, CSI to be established
after the first questionnaire in 2025; Tissue, CSI > 70% by 2030; and pulp, CSI > 63% by 2030.
• Increase the number of certified products with forestry certification labels or the EU Ecolabel, setting the goals of
maintaining or increasing the percentage of sales of products with environmental seals (Ecolabel, FSC
®
or PEFC), likewise
differentiated by segment: UWF, > 70% by 2030; Packaging, > 60% by 2030; Tissue, > 99% by 2030; Pulp, > 80% by
2030.
With regard to our Customer relations and given that we operate on a B2B (business to business) basis, our procedures for
customer engagement are centred on sales activities, periodic listening (notably using satisfaction surveys and complaints),
meetings and visits to our mills and nurseries, as well as specialist webinars. The satisfaction surveys conducted in 2023
pointed to a Satisfaction Index of 95% for paper customers (printing and writing paper) and of 67% for Tissue customers. For
pulp, the last survey referred to 2022 and found a Customer Satisfaction Index of 61%.
It should be noted that sales of products with certification (Ecolabel, FSC
®
or PEFC) have grown to a significant size.
Sales of Products with certification (Ecolabel, FSC
®
or PEFC)
(by product type)
64,20%
71,10%
55,72%
90,40%
79,76%
77,23%
94,40%
99,48%
99,95%
64,70%
61,00%
56,00%
2023 2022 2021
UWF Pasta Tissue Packaging
Annual Report 2023 · Management Report 256
In relation to product information and labelling, we comply with Regulation (EU) 453/2010, of 20 May, publishing a technical
safety datasheet for each product detailing its main features, applications and recommendations for use and recycling. We
accordingly use logos on all our products referring to certifications, such as Ecolabel, FSC
®
, PEFC, and others. There was no
instance of nonconformity or incorrect use of labels for the FSC
®
, PEFC and EU Ecolabel certification schemes, nor any instance of
nonconformity in marketing communications.
Printing and writing paper
Our brand portfolio divides into office paper brands and brands for the printing industry. The Navigator paper brand has
consumers in more than 134 countries, and has been part of our customers' lives for more than thirty years.
We invest continuously in improving product characteristics, seeking to respond to our Customers' needs. By way of illustration,
we are stepping up our sales operation in certain geographical regions, in particular in the United States.
In the professional printing sector, we have continued to promote and consolidate our brands, such as the Navigator Profession
sub-brand. Recent launches of professional products - Navigator Premium Books, Navigator Premium Writing and Navigator
Premium Envelopes - have proved to be a success in the books and notebooks market.
In office paper, a new brand is also being launched to respond more fully to our Customers’ environmental concerns.
In 2023 we launched new products, conducted eye-catching campaigns and took part in leading trade fairs in the relevant
sectors. These marketing initiatives contribute to the outstanding prestige enjoyed by our brands on the market.
Main marketing initiatives in 2023
Premium Writing Notebooks
• “One Planet, infinite ideas” is the slogan used for the new brand of Navigator notebooks,
introduced in 2023. These are 100% recyclable and use FSC
®
certified paper.
Discovery Eco Switch Campaign
• The Discovery Eco-Calculator campaign raised awareness of an office paper that combines
waste reduction with superior performance. The eco-calculated allows companies to quantify the
natural and financial resources they save by switching to Discovery paper. The brand also
organised a webinar on “Discover the Way of the Eco Switch”, to discuss issues relating to
sustainability.
Blank Paper Project
• The Blank Page Project offers a series of videos on the Navigator paper brand, in which each
episode shows the relationship between the protagonists and a blank sheet of paper. Four episodes
were launched in 2023, featuring figures such as Hugo van der Ding (copywriter, creative,
illustrator and cartoonist), Marcelo Lourenço and Pedro Bexiga (founders of the Coming Soon
marketing agency), Cândida Miranda (teacher and artisan) and Nadim Habib (lecturer at Nova
SBE).
Annual Report 2023 · Management Report 257
Big Buyer
• In November, we once again attended the BigBuyer fair in Bologna (Italy). This event brings
together companies from the office supplies and stationery sector, for debates about
different businesses, networking and sharing the latest trends. The 27
th
edition of this fair
gave us the opportunity to introduce our Navigator Notebooks to the Italian market.
Paperworld Dubai
• In November we attended another edition of Paperworld Middle East, in Dubai (United Arab
Emirates) the largest international trade fair for the stationery, paper, gifts and office
suppliers’ industry in the Middle East. As well as the usual brands on display, our focus was
on the packaging segment - gKRAFT - and on PremiumWriting.
Support for good causes is another factor that consumers reward in consumer brands, and our
Pioneer office paper brand again embraced the cause of cancer care, through the Pioneer Inspire
Hope Campaign.
Pioneer Inspire Hope
Targets 3.4, 17.16 and 17.17
Every year, thousands of women are diagnoses with breast cancer and for the past eighteen years the Pioneer paper brand,
which is also inspired by women, has played an important role in supporting this cause. This takes the form of donations of
tons of paper and funding worth more than 500,000€ for various initiatives and research projects at the Institute of Molecular
Medicine (iMM), in Lisbon, in order to speed up the development of new therapeutic strategies for treating breast cancer.
The Pioneer Inspire Hope campaign started in 2020 and catches the public eye in October each year, international breast
cancer awareness month, transforming the brand’s DNA - paper - into flowers representing hope and paying tribute to those
facing this disease. Alongside this, on the campaign website, available in Portuguese, French, English and Spanish – Pioneer
Paper - Inspire Hope Against Breast Cancer - Join Now! – people can send special messages to whomever they choose. A total
of 215 messages of support have been registered for everyone facing the challenge of breast cancer.
Every year, the brand launches a special edition of a flower, always designed and created by hand from Pioneer paper. No less
than 6 700 flowers were presented to all the women in Navigator and to patients at the Hospital de Santa Maria, Fundação
Champalimaud, researchers and the team at iMM Laço Hub, as well as during the international ABC7 conference, organised by
the ABC Global Alliance. This conference was held in November 2023, using a hybrid format, at the Lisbon Conference Centre,
bringing together 1,500 health professionals and patients from 90 different countries to discuss best practices in fighting this
disease.
2023 was a year of new achievements, as we linked up with another international partners, ABC Global Alliance. True to the
key idea of the campaign – Together we turn hope into reality - Pioneer will continue to work with iMM-Laço Hub and ABC
Global Alliance to further scientific research and improve the lives of patients around the world.
500 000€
Funding for iMM
Annual Report 2023 · Management Report 258
Also in 2023, the brand decided to innovate and launch a new website – https://pioneer-paper.com/ – fully aligned with its
purpose, and in November it closed the campaign with Pioneer Inspire Hope webinar. The aim was to tell its own story and
also to offer insights into what is being done to combat the disease, including the scientific research and achievements of iMM-
Laço Hub and ABC Global Alliance. There were 86 participants: Employees of The Navigator Company, researchers and medical
professionals.
Pioneer's communication features prominently the We Love Paper campaign, by Two Sides, and the brand is currently sold to
more than 150 countries. The new partnerships and initiatives represented a major stride forward, taking our brand and the
credibility of the Pioneer Inspire Hope campaign even further, beyond Portugal’s borders.
The success of this campaign was due to the engagement and motivation of a team that extends beyond Navigator - including
our Suppliers and partners who every year respond with enthusiasm and are ready to go the extra mile for the success story of
Pioneer paper. Together, as a team, we can certainly inspire others to make hope into a reality.
Packaging
The launch of the gKRAFT brand in 2021 personifies a new generation of packaging papers featuring excellent levels of
performance, printing quality and functionality, meeting high standards of safety and hygiene.
The raw material used to produce this paper means it is more recyclable and at the same time uses less wood per ton of paper
produced, thanks to the use of Eucalyptus globulus fibre. This raw material means that 50% less wood is used per packaging
volume (tons) - in comparison with Pinus Taeda, Pinus sylvestris –, at the same time as ensuring the production of packaging
that is safe, hygienic, and more efficient in composting, requiring 20% less time than competing products using pine.
It should be noted Navigator’s innovative packaging solutions earned it recognition at the IRGA Awards (Chapter 1.5).
Main marketing initiatives in 2023
LinkedIn gKRAFT
• In January, the gKraft brand joined LinkedIn. Brand manager for the past two years, Maria Sereno
Soares values LinkedIn as “a channel where we can communicate what makes us different, and also
share events that we are attending. The aim is to make contact with potential brand owners, who are at
the end of the chain and are often the people who decide on the choice of materials. LinkedIn offers a
unique opportunity for making direct contact with them”.
gKRAFT Mockups
• Mockups were developed for the more representative applications of our gKRAFT paper.
The main aim of this project is to show unambiguously that our paper meets the toughest demands of
brand owners, offering superior printing quality, across a vast range of colours and printing techniques.
gKRAFT trade fairs
• The gKRAFT has consolidated its presence at several leading trade fairs in the packaging sector. One of
the most significant of these was Packaging Innovations Birmingham, a key event for innovations in the
packaging sector, held in February. In May, gKRAFT displayed its products at InterPack, a fair that
brings together the global packaging sector in Dusseldorf. This was followed by participation in
Packaging Première in Milan, the top trade fair for the luxury packaging sector.
Annual Report 2023 · Management Report 259
Tissue
The tissue sector has invested in innovation, with several products offering disruptive features, such as: Amoos Air Sense™ (toilet
paper), Amoos Naturally Soft™ (napkins and toilet paper), Amoos Aquactive™ (multipurpose) and Amoos Calorie Control™
(kitchen roll).
WHAT NEXT?
• Participation by the Company in the European Commission’s pilot scheme for the new European Union Anti-
Deforestation Directive (2024).
• Continued partnership with iMM-Laço Hub and ABC Global Alliance.
• Calculation of the Carbon Footprint on the basis of methodologies developed by CEPI and adopted, in the case of UWF
paper, in the Eurograph manual (2024).
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6.5.4. Supply Chain Management
GRI 3-3, 204-1
ESRS MDR-A, MDR-M, MDR-T, SBM-3, S2-1, S2-2, S2-4, G1-2
Sustainable management of the supply chain is increasingly relevant to our responsible business strategy.
The profound and rapid change were are living through worldwide poses new challenges, but also new
opportunities for growing together.
OUR IMPACTS
7,490
€1,793m
74%
Suppliers
Total purchasing volume
(down 7% on 2022)
Volume of purchases from
Portuguese suppliers
69%
92.1%
65%
Wood used from woodlands with certified
forest management
Wood suppliers with chain-of-custody
certification
Paper dispatched by sea
€188.6m
44.7%
154
Imported wood
• 144.4 M€ by sea
• 31.6 M€ by rail
• 12.7 M€ by road
Renewably sourced electricity
purchased (market-based)
Participants at Suppliers’ Day
Annual Report 2023 · Management Report 261
Aware of the impact of our purchasing policies on the creation and distribution of value,
among the thousands of companies and workers belonging to our suppliers chain, we are
committed to establishing partnerships and encouraging positive change.
The Company’s operations require supplies of wood, biomass, chemicals and other
products, used in the industrial process - for processing into finished products and by-
products we market - and energy, which we produce and consume. The impacts associated
with our supply chain have to do not only with the extraction and production of these
resources, but also with their transportation.
Wood and biomass logistics are responsible for directly handling a large volume of wood,
from our forest holdings (own and rented properties), logistical parks and ports to the mills,
using a variety of means of transport (road, rail and sea).
We also ship our products to more than 130 countries and approximately 3,800 delivery
points., using various means of transport (maritime, rail and road), prioritising sustainability
of the transport chain and based on partnerships with our Suppliers in developing efficient
solutions.
These activities have an environmental and also social impact (in the latter case, especially as
regards the safety of the people involved), to which we may add the importance of ensuring a
resilient supply chain able to respond to our needs, so that we can guarantee business
continuity. As a result, sustainable management of our supplier chain is an issue that
emerged with renewed importance in our last materiality analysis (Chapter 6.2.3), and so, in
2023, we established a series of commitments and goals in our 2030 Roadmap (Chapter
6.2.4). These include:
• Goals centred on suppliers of our main raw material, so as to increase certified
wood and promote chain-of-custody certification of all our wood Suppliers (Chapter
6.3.3);
• Goals related to our commitment to increase the number of Suppliers with financial
assessments and ESG criteria (decarbonisation, water management and respect for
human rights).
• Goals related to our commitment to promote sustainability practices along the
Suppliers Chain.
Our targets for reducing CO
2
emissions, approved in 2022 by the Science Based Targets
initiative, involve an ambition to cut scope 3 carbon emissions associated with the value chain
(Chapter 6.3.2).
An important focus has been on optimisation of inbound and outbound flows, seeking to
achieve, in each logistical area, operational efficiency and the lowest cost for each place of
origin/destination.
Sustainability also entails ensuring that the delivery modes of transport complement each
other, and so whenever operationally and financial viable we use rail and maritime transport,
although road haulage continues to represent a significant proportion of our logistical flows.
Rules were established in 2023 for implementing the Emissions Trading System (EU ETS), the
EU policy in maritime transport for combating climate changes and effectively reducing
Main
Suppliers
Wood and biomass
Chemicals and packaging
Energy
Logistical services and
transport
Specialist Service
Providers
134
Countries to which our
products are shipped
3,800
Delivery points (approx.)
Annual Report 2023 · Management Report 262
greenhouse gas emissions. Operators will now have to purchase licenses permitting CO
2
emissions, which may lead the industry to develop more efficient solutions both through
alternative fuels and by redesigning ships, among other measures (e.g. reducing the speed of
ships, choice of more efficient routes). This is a topic we will follow with interest.
Procurement practices and Supplier relations
At The Navigator Company we rely on more than 7,400 Suppliers and spend each year around
1,800 million
63
euros on supplies and services - a figure that points to the scale of the
economic impacts, and also the social and environmental impacts, of our procurement
decisions.
The fact that 74% of our purchasing is from Portuguese suppliers enables us to make a
decisive contribution to the economy and job creation in Portugal, and we are one of the
exporters creating the most gross value added for the country.
Supplier spend
(M€)
Note 1: See the GRI Table for methodological information on the calculation of the indicator (GRI 204-1).
63
Average figure for the past three years
1,793
1,934
1,382
2023 2022 2021
Annual Report 2023 · Management Report 263
In line with our governing principles, we are committed to encouraging responsible conduct throughout our supply chain. The
Company’s position on these issues is set out in the Code of Conduct for Suppliers, the Compliance Policies and the Human
Rights Policy (Chapter 6.5.1), which provide for implementation of due diligence procedures.
To this end we contracted a Third-Party Integrity Verification Service in 2023, so that a larger proportion of Suppliers undergo
an ESG assessment, and we now include Compliance clauses in our contracts with Suppliers, through which we ensure adoption
of these criteria - especially as regards prevention of corruption and related offences, prevention of money laundering and
terrorist financing, compliance with international sanctions and protection of Human Rights.
These safeguards are complemented by specific practices by the different sectors that handle dealings with Suppliers, adjusted
to the needs and circumstances of the arrangements with suppliers and service providers (described below). We have also
established a series of criteria and practices to safeguard workers along our value chain who work at or visit our industrial
facilities.
As required by our certifications
64
, we seek to use our ability to influence, engaging with suppliers (including service
providers and subcontractors) and raising their awareness of critical issues relating to safety, the environment, business
integrity, quality and other matters. In order to contribute to closer commercial ties between Navigator and its main Suppliers,
we have organised an annual Suppliers Day since 2015, which is important in promoting continuous improvement along our
supply chain, by contributing to reduction in raw material costs, improved industrial efficiency and sustainability.
In our operations in Mozambique, our aim is to bring processes and procedures into line with practices in Portugal. An
exchange and training were organised in 2023 to prepare the ground for alignment.
Portucel Moçambique has its own Code of Conduct for Suppliers.
Approach to Supplier Management
Code of Conduct for Suppliers
• Addresses topics such as prevention of corruption and bribery, respect for human rights, employment
practices, health and safety and environmental practices.
• It is sent to all materially relevant Suppliers and made available in all market consultation procedures.
Third-Party Integrity Verification
• We have a Third-Party Integrity Verification System which we implement by gathering information on
Human Rights, prevention of corruption, money laundering and terrorist financing, compliance with
international sanctions, CO
2
emissions (scope 2 by Suppliers) and water management, using a
platform contracted for this purpose.
Payment by confirming
• Suppliers are able to use a payments system on the basis of confirming, enabling them to be
paid in advance and contributing to better cash flow management; this has been implemented
for certain types of Suppliers.
64
ISO 9001 (quality management), ISO 14001 (environmental management), ISO 45001 (management of occupational health and safety), FSC
®
– Forest Stewardship
Council
®
(License no. FSC
®
- C010852); PEFC – Programme for the Endorsement of Forest Certification schemes (License no. PEFC/13-23-001).
Annual Report 2023 · Management Report 264
Engagement and awareness raising
• Participation in Sustainability Forum (Chapter 6.4.3).
• Organisation of the Suppliers’ Day to build closer ties with our main Suppliers.
• Visits to our mills and nurseries.
• Projects to improve eucalyptus forests and disseminate our good forestry practices (Chapter
6.3.3).
• Other specific initiatives in each area.
Suppliers’ Day: Debate on new supply chain challenges
Targets 8.3, 8.4, 12.6
The main themes of the 2023 Suppliers Day, held in June at the Centro Cultural de Belém (Lisbon), were the challenges and
opportunities of Navigator’s supply chain, with a focus on raw material costs, industrial efficiency and sustainability.
In a rapidly changing world that poses new challenges, in particular those arising from sustainable operation along the value
chain, the event was devoted to “New Challenges in the Supply Chain” and sought to underline the importance of
sustainable sourcing.
This meeting helped to strengthen the Group’s relations with its strategic suppliers and was attended by staff and managers
from the procurement, wood supply and logistics divisions, as well as pointing to attention that the Company is paying to
measures to reduce the carbon footprint of its Suppliers.
The event brought together 154 participants, including 117 Navigator Suppliers.
Suppliers’ Day has been organised annually since 2015, with the aim of creating closer ties between Navigator and its
supply chain partners, in line with Navigator's responsible management strategy: achieving economic success, in a fair and
responsible way, responding to its Stakeholders’ interests and encouraging cooperation.
Supplies of wood and biomass
Measures were consolidated in 2023 to support our Suppliers/partners in the Portuguese and Spanish wood market,
comprising in particular:
• Financial support for purchasing machinery;
• Cash flow support and Supplier segmentation;
• Wider implementation of confirming payment system:
These measures are designed to foster a more sustainable suppliers chain, with higher levels of expertise and segmentation.
The year also saw the launch of the “Clube Produtores Florestais” (Forestry Producers Club), aimed at our strategic partners,
who will be crucial in the change of mindset needed to promote sustainable management of forests, and who will be offered
the innovative and distinctive schemes we will be implementing (Chapter 6.3.3).
Annual Report 2023 · Management Report 265
Our concerns also extend to the domain of safety, not just for our internal Employees, but also for external workers who deal
with us on a daily basis in commercial and logistical operations (Chapter 6.3.3, 6.4.2).
In 2023, we conducted a review of our procedures in Portugal and established stricter rules on roundwood handling
operations. These have been communicated to all our suppliers, through their drivers, using leaflets setting out the required
personal protective equipment and the safety rules that must be met, in order to contribute to the goal of zero accidents.
Forestry Operations
In forestry operations, our Operations Quality Control procedure checks that the practices of our Service Providers comply with
the technical standards, legal, social and environmental requirements in force, minimising the risk of failure in the forestry
operations carried out. The findings inform the selection of Service Providers for future operations.
In Mozambique, where at this stage our venture consists only of the forestry operation, these assessments are focused on
forestry services providers, which are of material importance due to the significant involvement of persons and communities,
the machinery and the level of investment made. This involves examining equipment, inspecting operational procedures,
environmental conditions and worker behaviour, in order to ensure a safe working environment. Portucel Moçambique has
implemented an operations quality control process, and also conducts safety inspections, to check compliance with the rules
and stipulated requirements. In addition, the Community Liaison Officers (Chapter 6.4.3) also conduct assessments of work
fronts, focusing more on social issues, to ensure balance and transparency in hiring and supervision of operations.
Contracting and purchase of land
The contracting and purchase of land in Portugal and Spain (Galicia) are essential for the sustainability of our own wood
supplies in the Iberian Peninsula. In addition to simple rental of eucalyptus forest holdings, other complementary arrangements
have been successfully implemented in the Portuguese and Spanish markets, serving the same objective of more and better
forests and securing future wood supplies.
The various projects implemented seek to help and support landowners and producers in improving the management and
yields of their forest holdings, providing technical support, from our great store of know-how in the Company, in work to
rehabilitate low-yield areas that have been abandoned, but which present potential, and in reforestation, complementing the
direct support to landowners for their investment in forestry.
We also provide information on our good forestry practices at meetings with Forestry Producers, visits to RAIZ and the mills,
sharing our vision for forests and the opportunity for industry and landowners to work together, for the benefit of our forests.
In Mozambique, Portucel secured two licenses from the Mozambican government, in 2009 and 2011, for a total of 356
thousand hectares, permitting it to plant forests up to 240 thousand hectares for a renewable period of 50 years, in the
provinces of Manica and Zambézia
65
. The physical demarcation of 352 thousand hectares of this land in these provinces was
completed in 2021, corresponding to the areas for which the Company received the land use rights (DUAT); it is entitled to
plant eucalyptus on up to two thirds of this area.
On the basis of these land use rights (DUAT) awarded to Portucel Moçambique, the Company has developed a process of
communication and consultation with the communities and families living in these areas, in order to gain access to the land
and establish plantations in areas they make over voluntarily.
65
Council of Ministers Resolutions nos. 86/2009 and 70/2011
Annual Report 2023 · Management Report 266
In order to ensure that Communities and families reach their decisions in advance, on a free and informed basis, Community
consultations are conducted at three different levels:
• Community consultations, in connection with the procedure for awarding land rights (DUAT);
• Public consultations, in connection with environmental and social licensing;
• Regular Community consultation at different levels, conducted internally, while the Land Access Procedure is
implemented by Portucel.
Access to the land for planting forests is preceded by agreements with Communities and families, in a voluntary process
witnessed by traditional leaders, the administrative authorities and Portucel Moçambique's land management officers. This
procedure seeks to ensure reliable information, communication and transparency in the process, and is in line with the
principles and criteria of our partner, International Finance Corporation (IFC). At year-end 2023, Portucel Moçambique had
5,541 agreements with families.
Energy
Management of energy contracts with our Suppliers is a topic of the highest importance, in view of its materiality. In line with
our decarbonisation plan, we have here promoted the use of renewable energy sources. In 2023, approximately 44.7% of the
power purchased was from renewable sources (market-based), including the supply of 115 GWh/year, 100% renewable, under
a Power Purchase Agreement (PPA).
Materials management
We have been developing procedures and tools for monitoring operations with our Suppliers and for approving new suppliers. A
new sourcing and contracting procedure was established in 2023 in order to incorporate ESG criteria in our scrutiny and
initial assessments of suppliers. It should also be noted that the permission to use the European Union Ecolabel on our UWF
and tissue paper products requires us to implement a qualification process for Suppliers, raw materials and consumables,
setting high standards for performance on environmental and other criteria.
In addition to the approach outlined above, we apply eligibility requirements, for supplies of chemical raw materials, which
deal with environmental and legal issues (e.g. microplastics, heavy metals, biocides, ecolabel).
In approving new suppliers of chemical raw materials, we carry out document checks and also take samples for laboratory and
industrial testing.
Inbound logistics
Inbound logistics have a crucial role to play in ensuring supplies of wood from our own and rented holdings, from wood
purchases in Spain (Galicia) and imports of roundwood/chips from outside the Iberian Peninsula.
This activity is geared to optimising logistical flows and costs, whether by road, rail or sea, and minimising environmental
impacts.
The Company stepped up its commitment to safety in 2023, both in external yards and at port and forest locations, by taking
concrete steps aiming at continuous improvement. Leaflets have been handed out in person on the procedures in force in the
Company, ensuring improved safety awareness among those involved in handling and transporting wood and biomass to the
mills.
Annual Report 2023 · Management Report 267
Wood imports represented a value of 188.6 M€ in 2023; maritime transport predominated, followed by rail and then by road.
This figures is influenced by the legislation currently in force in Portugal, which imposes limits on additional plantations in the
country.
Outbound logistics
In 2023 we pressed ahead with our programme to boost haulier loyalty and to encourage renewal of fleets, in the quest for
means of transport offering greater efficiency in terms of emissions. By committing to Navigator as principal partners, hauliers
can plan investment on a more sustainable basis.
Efforts also continued to develop maritime services at local ports, consolidating the service to northern Europe, which
started up in 2022, at the ports of Aveiro and Setúbal, reducing the distance travelled by road (and consequently cutting
emissions). In 2023 we developed a new service at local ports connecting with the USA. Overall, this service has enabled us to
optimise transport to local ports, resulting in a reduction of approximately 217,236 tCO
2
(191 thousand km).
An important development is a partnership with a shipping operator, offering direct connection to France. This has enabled us
to migrate road transport volumes to maritime, thereby cutting carbon emissions by around 10,329 tCO
2
.
We have also acquired a container tracking platform, which will enable us to measure carbon emissions from our exports
shipped by sea.
In Mozambique, we have full (100%) control of the vehicle fleet using Car track GPS applications, providing online information
on locations, distances travelled, fuel consumption and good driving practices. This has had a direct positive impact on vehicle
safety.
WHAT NEXT?
• Redesign of Portucel Moçambique's purchasing procedures, in order to standardise processes with Navigator
(2024).
• Increase migration from road haulage to maritime transport (2024-2025).
• Possible partnership for using biofuel in Navigator's maritime transport (2024-2025).
Annual Report 2023 · Management Report 268
7. Proposed allocation of profits
Whereas:
a) The individual accounts show net income of 274,923,820.1 euros, determined on an IFRS basis;
The Board of Directors proposes that the net income not yet distributed in the individual accounts, totalling 274,923,820.1 euros,
determined on an IFRS basis, be allocated as follows:
Dividends for outstanding shares ....................................................................................................... 149,995,621.1 euros
(0.21091 euros per share)
Retained Earnings ............................................................................................................................. 110,928,199.0 euros
Employee profit sharing for the period up to ........................................................................................... 14,000,000.0 euros
(already stated in financial statements).
Annual Report 2023 · Management Report 269
8. Declaration required under Article
29-G.1 c) of the Securities Code
Article 29-G.1 c) of the Securities Code requires that each of the persons responsible for issuers, whose names and duties must
be clearly indicated, make a number of declarations, as described in the sub-paragraph in question. In the case of The Navigator
Company, a uniform declaration has been adopted, worded as follows:
“I hereby declare, under the terms and for the purposes of Article 29-G.1 c) of the Securities Code that, to the best of my
knowledge, the management report, annual accounts, legal accounts certificate and other financial statements required by law or
regulation, even if they have not been submitted for approval at the general meeting, of The Navigator Company, S.A., for the
financial year of 2023, were drawn up in accordance with the relevant accounting rules, and provide a true and fair view of the
assets and liabilities, financial affairs and profit or loss of the Company and other companies included in the consolidated
accounts, and that the management report contains a faithful account of the business, performance and position of the Company
and other companies included in the consolidated accounts, describing the main risks and uncertainties which they face.”
As required by this rule, we provide below a list of the persons signing the declaration and their office in the company:
Ricardo Miguel dos Santos Pacheco Pires Chairman of the Board of Directors
António José Pereira Redondo Chief Executive Officer
José Fernando Morais Carreira de Araújo Executive director
Nuno Miguel Moreira de Araújo dos Santos Executive director
João Paulo Cabete Gonçalves Lé Executive director
Dorival Martins de Almeida Executive director
António Quirino Soares Executive director
Ana Teresa Cunha de Pinho Tavares Lehmann Non-executive director
Hugo Alexandre Lopes Pinto Non-executive director
Maria Isabel da Silva Marques Abranches Viegas Non-executive director
Maria Teresa Aliu Presas Non-executive director
Mariana Rita Antunes Marques dos Santos Non-executive director
Sandra Maria Soares Santos Non-executive director
Vitor Paulo Paranhos Pereira Non-executive director
José Manuel Oliveira Vitorino Chairman of the Audit Board
Gonçalo Nuno Palha Gaio Picão Caldeira Member of the Audit Board
Annual Report 2023 · Management Report 270
9. Our performance
The tables in the following sub-chapters provide a summary of Economic, Environmental and Social indicators. For more information on our methodological notes
relating to the GRI indicators, consult the GRI Table attached (Chapter 10.2.3).
9.1. Economic Indicators
Economic Indicators
2023
2022
2021
GRI
Total sales
1,953
2,465
1,596
EBITDA
66
502
736
355
Operating profits (EBIT):
366
573
230
Financial Results
-19
-57
-18
Net Income
275
393
171
Operating Cash Flow
410
555
297
Free Cash Flow
67
92
463
235
Capital expenditure
187
113
80
Interest Bearing Net Debt
68
490
382
595
EBITDA/Sales
26%
30%
22%
ROCE
69
21%
35%
14%
ROE
70
21%
34%
16%
Interest Bearing Net Debt/EBITDA
71
0.98
0.52
1.68
66
Operating profits + depreciation + provisions.
67
Variation net debt + dividends + purchase of own shares.
68
Interest-bearing liabilities - liquid assets (not including effect of IFRS 16).
69
ROCE = Annualised operating income / Average Capital invested (N+(N-1))/2.
70
ROE = Annualised net income / Average Shareholders' Funds (N+(N-1))/2.
71
Interest-bearing liabilities - liquid assets) / EBITDA corresponding to last 12 months. Impact of IFRS 16: Net Debt / EBITDA in 2023 of 1.1; Net Debt / EBITDA in 2022 of 0.60.
Annual Report 2023 · Management Report 271
Economic Indicators
2023
2022
2021
GRI
Direct Economic Value Generated - Revenues (I) (thousand €)
2,033,559
2,535,783
1,627,251
201-1
Direct Economic Value Distributed (II) (thousand €)
1,848,089
2,122,950
1,370,996
Operating costs
1,294,457
1,514,271
1,077,385
Employee pay and benefits
171,127
185,194
153,970
Payments to capital providers
219,305
356,967
117,343
Taxes
161,741
64,765
20,650
Investments in the Community
1,459
1,752
1,649
Accrued Economic Value (I-II) (thousand €)
185,470
412,834
256,254
Financial implications of climate change
201-2
Number of CO
2
emission licenses
494,850
574,122
620,805
Market value
38,628
46,785
50,068
Financial assistance received from Government (thousand €)
16,781
16,405
7,824
201-4
Tax Incentives / Credits
1,701
2,557
5,121
Subsidies
12,280
12,314
143
Support for research and R&D
2,800
1,533
2,560
Ratios of standard entry level wage to local minimum wage
202-1
Portugal
Men
1.09
1.13
1.07
Women
1.09
1.13
1.07
Mozambique
Men
1.00
1.00
1.00
Women
1.00
1.00
1.00
Total number of Suppliers
7,490
7,303
7,172
204-1
Percentage of local Suppliers (%)
73
73
74
Total expenditure on Suppliers
1,793,052
1,934,460
1,382,341
% expenditure on Local suppliers
74
72
74
Annual Report 2023 · Management Report 272
9.2. Environmental Indicators
Environmental Indicators
2023
2022
2021
GRI
Forest
% certified of forest area managed
100
100
100
Wood purchased with FSC® and PEFC™ certification
% Portuguese
68
65
63
% overall
69
68
71
Materials
Raw materials (tons)
4,714,216
5,156,843
5,064,915
301-1
Renewable
4,251,275
4,619,939
4,558,516
Non-renewable
462,940
536,904
506,399
% of renewable raw materials
90
90
90
% of recycled materials used
0.00
0.01
0.02
301-2
Energy
Energy consumption within the organization (GJ)
39,746,832
41,165,471
41,246,701
302-1
Primary energy from non-renewable sources
7,788,102
9,825,584
9,811,472
Primary energy from renewable sources
31,688,941
31,802,148
31,962,573
Electricity acquired for consumption
5,400,128
4,910,655
4,651,165
Electricity sold
5,130,339
5,372,917
5,178,509
% primary renewable energy consumed
80
76
77
% primary renewable energy consumed in Portugal
81
76
77
Energy intensity In Portugal (GJ/t output)
12.9
12.0
12.5
302-3
Energy intensity by turnover (TJ/million euros)
23.0
18.9
29.1
Reduction in energy consumption (GJ)
5,604
65,682
51,184
302-4
Water
Water intake (thousand m
3
)
61,989
63,503
65,897
303-3
Industrial operations
60,096
61,857
64,876
Forestry operations
1,892
1,647
1,021
Water discharged - effluent (thousand m
3
)
48,610
52,161
54,302
303-4
Annual Report 2023 · Management Report 273
Environmental Indicators
2023
2022
2021
GRI
Water used (thousand m
3
)
13,378
11,343
11,595
303-5
% of water returned to environment
78
82
82
Specific water use in industrial operations in Portugal (m
3
/t)
21.2
19.1
20.9
Biodiversity
Facilities in or close to protected areas and areas of high biodiversity value
304-1
National Network of Protected Areas (RNAP) (ha)
11,877
10,253
10,067
% of total holdings managed
11
10
10
Classified sites in Natura 2000 Network (ha)
44,990
43,699
43,498
% of total holdings managed
42
41
42
Special Protection Zones (ZPE) in the Natura 2000 Network (ha)
33,680
31,533
31,657
% of total holdings managed
31
30
30
Total classified areas (ha)
56,684
53,738
53,563
% of total holdings managed
53
51
51
Habitats protected or restored (ha)
4,611
4,314
4,129
304-3
Protected habitats (ha)
4,420
4,243
4,076
Restored habitats (ha)
191.3
71.2
53.1
Emissions
Scope 1 (tCO
2
e)
509,494
592,428
584,090
305-1
Assets at plants (CELE scope)
456,689
552,587
539,332
Fluorinated gases
598
598
973
Fuel for travel and kilometres travelled
2,421
2,143
2,114
Natural Gas used in BPPs (auxiliary fuel)
11,235
3,304
2,578
CH
4
resulting from industrial assets
4,724
4,342
3,719
CH
4
resulting from BPPs
1,246
928
857
N
2
O resulting from industrial assets
21,355
18 996
24,530
N
2
O resulting from BPPs
3,272
2,439
2,941
Diesel and gasoline consumed at plants
6,458
6,036
5,788
Fertilisers and phyto-fertilisers in soil
1,495
1,056
1,259
Annual Report 2023 · Management Report 274
Scope 2 (tCO
2
e)
305-2
Purchase of power (location based)
234,597
352,517
389,919
Scope 3 (tCO
2
e)
1,396,835.7
1,589,137.6
1,570,567.2
305-3
GHG emissions intensity per ton of output (tCO
2
e/t output)
0.176
0.181
0.186
305-4
Portugal
0.175
0.181
0.186
Spain
0.287
-
-
GHG emissions intensity by turnover (tCO
2
e/M€)
445.6
383.3
610.3
Reduction in GHG emissions as direct result of initiatives undertaken
(tCO
2
e)
12,230
4,576
184,606
305-5
Atmospheric emissions (t)
305-7
NO
X
1,780
1,737
1,687
SO
2
64
83
76
Particles
198
261
262
Waste
Total waste generated
441,642
410,717
398,022
306-3
Reclaimed
296,348
279,862
280,599
Disposed of
148,587
133,342
126,486
Non-hazardous waste (t)
440,709
410,021
397,457
Reclaimed
295,687
279,330
280,204
Disposed of
148,316
133,177
126,316
Hazardous waste (t)
933
697
565
Reclaimed
662
532
396
Disposed of
271
165
169
Rate of disposal of waste in industrial landfill in Portugal (%)
12
11
-
Annual Report 2023 · Management Report 275
9.3. Social Indicators
Social Indicators
2023
2022
2021
GRI
Human resources
Number of Employees
3,317
3,246
3,150
2-7
Permanent contract
3,126
3,082
3,033
Men
2,550
2,549
2,537
Women
576
533
496
Fixed-term contract
191
164
117
Men
138
123
79
Women
53
41
38
Full-time
3,313
3,241
3,144
Part-time
4
5
6
Entry rates (%)
9
11
6
401-1
Men
7
9
5
Women
16
18
10
<30 years
31
46
25
30-50 years
8
8
5
>50 years
1
1
1
Departure Rates (%)
7
8
8
Men
7
7
8
Women
8
11
9
<30 years
10
7
7
30-50 years
5
6
5
>50 years
9
13
15
Safety and Health
403-9
Number of accidents at work
228
262
147
Frequency rate
5.8
7.3
6.6
Severity rate
132.1
262.2
354.1
Index of fatalities as a result of work-related injury
0.0
0.0
0.0
Annual Report 2023 · Management Report 276
Social Indicators
2023
2022
2021
GRI
Index of high-consequence work-related injuries (excluding fatalities)
0.0
0.1
0.3
Index of reportable work-related injuries
23.4
25.8
15.1
Work ability index
-
-
39.8
Training and development
Training hours per Employee
78
42
40
404-1
By gender
Men
84
44
41
Women
53
32
31
By occupational category
Top Management
56
19
42
Senior Management
46
37
33
Middle Management
39
27
21
Operatives
98
47
45
Performance assessment (%)
99
98
99
404-3
By gender
Men
99
97
99
Women
100
98
98
By occupational category
Top Management
100
100
70
Senior Management
100
99
99
Middle Management
100
99
99
Operatives
99
97
99
Diversity
Employees by category and gender (%)
405-1
Governance Bodies
Men
64.3
75.0
76.9
Women
35.7
25.0
23.1
Top Management
Men
84.8
89.5
83.3
Annual Report 2023 · Management Report 277
Social Indicators
2023
2022
2021
GRI
Women
15.2
10.5
16.7
Senior Management
Men
60.6
60.1
64.4
Women
39.4
40.0
35.6
Middle Management
Men
68.3
72.7
74.9
Women
31.7
27.3
25.1
Operatives
Men
90.8
91.2
90.0
Women
9.2
8.8
10.0
% of women in the organisation
19.0
17.7
17.0
Employees by age (%)
405-1
<30 years
13.0
12.5
10.2
30-50 years
61.8
61.1
61.5
>50 years
25.2
26.4
28.3
Gender pay ratio
405-2
Portugal
Governance bodies
0.25
0.31
0.28
Top Management
0.72
0.74
0.68
Senior Management
0.75
0.68
0.75
Middle Management
0.67
0.66
0.66
Operatives
0.84
0.89
0.88
Subtotal
0.47
0.51
0.47
Mozambique
Governance bodies
-
-
-
Top Management
-
-
-
Senior Management
0.60
0.79
0.86
Middle Management
0.68
0.66
0.48
Operatives
0.98
1.10
0.96
Subtotal
0.62
0.78
0.81
Annual Report 2023 · Management Report 278
10. Annexes to the Sustainability Information
10.1. Detailed 2030 Roadmap
We here present our 2030 Roadmap with detailed information on Navigator’s performance in Portugal in the past three years (2021, 2022 and 2023), thereby closing
the assessment in relation to the goals and targets set for this reporting period (i.e. not presenting the new goals which will take effect as from 2024, and which are
identified in Chap. 6.2.4).
The following key should be considered:
In progress, can be brought forward
In progress, as planned
In progress, with downward tendency, reflecting performance of the past two years
Commitments
Goals
Interim Targets
Performance in
2021
Performance
in 2022
Performance
in 2023
Status in
2023
Location
1. Develop
sustainable
bioproducts,
reducing
dependence on
fossil resources and
working towards a
decarbonised
economy.
CORE
1.1. Develop new
cellulose materials
and composites,
which are recyclable
and biodegradable.
New biocomposites
made from
cellulose fibres and
bioplastics - new
patent filed
Installation of equipment to
produce cellulose biocomposites
with thermoplastics as part of
the start-up of the Bioproducts
Pilot Laboratory.
Scaling up of biocomposites
production process.
New biocomposites comprising
only bioproducts, including more
than 40% cellulose fibre - patent
filed.
Development and optimisation of
biocomposites formulations for
market trial.
Production of prototypes of
applications with potential end-
users.
Chap. 6.2.2
Research
and
innovation in
the forest-
based
bioeconomy
Annual Report 2023 · Management Report 279
Commitments
Goals
Interim Targets
Performance in
2021
Performance
in 2022
Performance
in 2023
Status in
2023
Location
SUPPORTIVE
1.2. Develop biofuels,
bioplastics and
biochemicals from
waste forestry
biomass.
Integrated process
for extracting
bioactive
compounds from
eucalyptus biomass
- new patent filed.
Installation of pilot equipment
for extraction of essential oils as
part of the start-up of the
Bioproducts Pilot Laboratory.
Scaling up of production process
for essential oils.
Optimisation of production of
bioplastics (PHAs) from
eucalyptus biomass
hydrosylates.
Optimisation of preliminary
treatment process for biomass
and process for extracting
essential oils from eucalyptus
foliage.
2. Promote scientific
and technological
co-creation in the
field of the
bioeconomy and
bioproducts.
CORE
SUPPORTIVE
2.1. Strengthen
partnerships with
Universities and
Technology Centres in
Portugal and abroad.
Consolidate
partnership with
Bioref and
AlmaScience
Collaborative
Laboratories
The scope of our partnerships for
the new RRP projects has been
widened to include Universidade
Católica Portuguesa, PIEP –
Centre for Innovation in Polymer
Engineering, a CeNTI – Centre
for Nanotechnology and Smart
Materials and CITEVE –
Technological Centre for Textile
and Clothing of Portugal.
Consolidation of network of
partnerships with universities
and R&D centres in the context
of RRP projects.
2.2. Promote
advanced training, in
collaboration with
universities: 30
doctorates by 2030
25 doctorates in
progress, 0
completed
In 2021, the goal was
raised from 20 to 30
PhDs by 2030.
25 doctorates in progress, of
which 2 completed
23 doctorates in progress, of
which 15 completed
2.3. Promote
registration of
intellectual property:
50 patents by 2030.
8 patents filed out
of total of 18
In 2021, the goal was
raised from 20 to 25
patents by 2030.
20 patents filed out of total of 38
In 2022, the goal was raised from 25
to 50 patents by 2030.
5 patents filed out of total of 43
2.4 Promote projects
on a co-creation basis
with external
organisations - with a
view to tapping the
economic value of
knowledge generated
through R&D: 15
projects completed by
2030.
Goal defined in 2022.
9 co-creation projects completed
in field of forest-based
bioeconomy with R&D centres,
start-ups and SMEs.
Annual Report 2023 · Management Report 280
Commitments
Goals
Interim Targets
Performance in
2021
Performance
in 2022
Performance
in 2023
Status in
2023
Location
3. Develop adaptive
forestry practices,
from a climate
change perspective.
CORE
SUPPORTIVE
3.1. Develop
genetically improved
clones and seeds,
with gains of 30-50%
in yields and resilient
to climate change.
2 new cloned
plants offering
gains of 40% in
tons of pulp / ha in
relation to
woodlands without
genetic
improvement.
2 kg of improved
seeds delivered to
nurseries, with
gains of 25% in
relation to
traditional seeds.
New clone varieties delivered for
production. Clone selection has
had impacts on the resistance of
eucalyptus to disease, in
nurseries and in the field.
Incorporation of new genetic
materials in the programme
(release of more than 100
individuals)
Poor year for seed production.
Incorporation of 29 lots of seeds
for 24 species through
importation and collection at
Portuguese “Escaroupim”
arboretum, to increase diversity
in Genetic Improvement
Programme in the long term
through hybridisation with E.
globulus.
3.2. Propose
biological solutions for
combating the main
diseases and pests in
Portugal's eucalyptus
forests.
Release into wild of
egg parasitoid
(Cleruchoides
noackae).
Increased release into wild of
egg parasitoid (Cleruchoides
noackae).
Official approval for application
to study risk of releasing
Anagonia (a new natural enemy
of Gonipterus).
Start of release of Anagonia, new
natural enemy of snout beetle.
Application for importation of
Enogera, a natural enemy of
traquimela, was approved by
Institute of Nature Conservation
and Forests (ICNF).
4. Develop
innovative,
competitive and
sustainable
products.
CORE
SUPPORTIVE
4.1. Develop
innovative and
distinctive paper
products (pulp, UWF
paper, tissue paper,
packaging).
Launch of new
gKraft range of
packaging papers.
5 new tissue
products (2 on
market).
New high yield
kraft pulp for
packaging.
Industrial trials with
incorporation of microfibrillated
cellulose for development of
mechanical properties in
packaging papers.
Market launch of new product:
Amoos Calorie Control.
Optimisation of high yield pulp
production conditions and
support for industrial project.
First laboratory trials conducted
of production of Moulded
Cellulose products for packaging
and production of packaging
papers with barrier properties.
Commitment discontinued in
2023.
-
5. Promote efficient
use of resources,
minimising our
ecological footprint.
CORE
5.1 Cut specific use of
water (m
3
/t and
product) in industrial
operations by at least
33% by 2030
(baseline: 2019).
Reduction of 6.7%.
(20.9 m
3
/t vs. 22.4
m
3
/t)
Reduction of 14.7%.
(19.1 m
3
/t vs. 22.4 m
3
/t)
Reduction of 5.1%.
(21.2 m
3
/t vs. 22.4 m
3
/t)
Chap. 6.4.4
Water
consumption
Annual Report 2023 · Management Report 281
Commitments
Goals
Interim Targets
Performance in
2021
Performance
in 2022
Performance
in 2023
Status in
2023
Location
SUPPORTIVE
OTHERS
Specific use in baseline
year: 22.4 m
3
/t.
5.2 Propose solutions
that make it possible
to improve efficiency
in use of water in the
industrial process.
Continued development and implementation of
measures defined in WURP (Water Use Reduction
Programme).
In industrial context, continued
development and
implementation of measures
defined in WURP (Water Use
Reduction Programme).
Notably new bleaching tower and
pulp washing presses at Aveiro
Pulp Mill, new wood preparation
line and water recovery at
Figueira da Foz and the new
effluent ultrafiltration system at
WWTP no. 2 at Setúbal Complex.
5.3 Optimise energy
intensity, year after
year.
12.5 GJ/t
12.0 GJ/t
12.9 GJ/t
Chap. 6.4.2
Climate
change
5.4 Propose solutions
that make it possible
to improve efficiency
in use of wood in the
industrial process.
Projects implemented to minimise wood wastage.
Operational start-up of new
wood preparation line in the
wood yard at the Figueira da Foz
Industrial Complex.
Chap. 6.45
Use of
resources
and circular
economy
6. Ensure
sustainable use of
soil and forestry
resources, including
biodiversity.
CORE
SUPPORTIVE
6.1 Achieve 80% use
of certified wood by
2030.
71%
68%
69%
Chap. 6.4.3
Sustainable
forestry
management
and
conserving
biodiversity
6.2 Promote chain of
custody certification
for all our wood
Suppliers by 2030.
78%
87%
92%
6.3 Help reduce
wildfires,
guaranteeing a
burned area of less
than 1% of area
under management
by 2030.
0.3%
0.3%
1.8%
Annual Report 2023 · Management Report 282
Commitments
Goals
Interim Targets
Performance in
2021
Performance
in 2022
Performance
in 2023
Status in
2023
Location
OTHERS
6.4 Create positive
impact on (or net gain
in) biodiversity by
taking action in
keeping with
Navigator's
commitments in
connection with the
act4nature Portugal
initiative.
The interim targets: were
revised due, in most cases, to
updating of commitments in
context of Act4Nature
Programme.
• Execute annual species
and habitat monitoring
plans and work to
maintain, improve the
state of conservation and
restore B&SE in the
forestry holdings
managed by the
Company, in the following
areas:
(i) conservation;
(ii) rehabilitation; and (iii)
ecological restoration.
See Progress
Report -
Act4nature
Commitments
2021.
900 species and subspecies of
flora and 252 species of fauna
identified in woodlands managed
by the Company. Restoration or
rehabilitation work was carried
out over approximately 71
hectares, in order to maintain or
improve the state of
conservation of natural and
semi-natural habitats.
Zambujo reCover Project. RRP
TransForm Project.
See Progress Report -
Act4nature Commitments
2022.
More than 20 properties
monitored, including an
important find consisting of a
well-preserved community of
rhododendrons, one of the
habitats included in the Natura
200 Network, on a property in
Oliveira de Azeméis.
By the end of 2023, 1,057
species and sub-species of flora
and 253 species of fauna had
been identified in the forestry
holdings managed by the
Company, along with 51
different habitat types included
in the Habitats Directive.
A project has started in Espirra
to sow pollinator plants in order
to assess the impact on diversity
and the increase in species
numbers, leading to an almost
doubling of the number of
species in the areas seeded.
• In the field of ecological
restoration, start and/or
continue work on at least
110 hectares by 2030.
Restoration or rehabilitation
work was carried out in 2023
over approximately 81 hectares,
in order to maintain or improve
the state of conservation of
natural and semi-natural
habitats and work started on
ecological restoration; of the
Zambujo estate, over an area of
around 110 hectares, where the
Company has converted 40
hectares from production forests
to holm oak woodlands.
• Continue the other work
to maintain and improve
state of conservation
(work on at least 30
ha/year) by 2030.
Annual Report 2023 · Management Report 283
Commitments
Goals
Interim Targets
Performance in
2021
Performance
in 2022
Performance
in 2023
Status in
2023
Location
• Execute at least one
project for recovery of a
threatened species and
support another by 2030.
Work started on the project for
“Genetic improvement and
forestry reproduction activities -
RRP TransForm Project”,
involving genetic conservation
and ecosystem rehabilitation,
dealing in particular with some of
the most severely endangered
species in Portugal, such as the
critically endangered Quercus
canariensis (Monchique oak).
• By December 2024,
complete the approach to
integrating B&ES
Conservation into
corporate strategy, in line
with available scientific
knowledge and voluntarily
accepted commitments;
Approach completed, and
document is being discussed
internally.
• By 2026, establish a
simplified framework, in
line with the key
elements of the standard
global frameworks (e.g.
Natural Capital Protocol),
for systematic
assessment of B&ES
impacts and
dependencies, testing the
approach in a pilot
project.
Planned to start in 2024.
• By 2030, run training
programmes with content
relating to B&ES
conservation topics and
raise awareness of good
business practices, for
internal and external
Employees.
A four-hour training session was
held on “Identification and
Characterisation of Flora,
Vegetation and Habitats, Plant
Biodiversity in Portugal”,
attended by 28 internal
Employees from different
divisions within the Company
(including RAIZ) and 6 external
workers.
Note: For further detail, see the
Progress Report on Meeting
act4nature Portugal Commitments
Annual Report 2023 · Management Report 284
72
Emissions reported under EU ETS (European Emissions Trading Scheme).
73
The emissions value for the baseline year is in accordance with the figures submitted to and approved by SBTi in 2022. In order to calculate performance on the target to reduced Scope 1+2 emissions, in keeping
with the baseline defined for SBTi, we have excluded emissions associated with fluorinated gases, own fleet, CH
4
and N
2
0 and fertilisers, which represent approximately 7% of the inventory.
Commitments
Goals
Interim Targets
Performance in
2021
Performance
in 2022
Performance
in 2023
Status in
2023
Location
7. Promote circular
bioeconomy,
prioritising R&D
solutions.
CORE
SUPPORTIVE
7.1 Achieve by 2030 a
rate of waste disposal
in industrial landfill of
less than 10%.
Goal reformulated in 2022.
12%
Chap. 6.45
Use of
resources
and circular
economy
7.2 Develop
sustainable
applications and
added value for by-
products from
industrial process
(sludges, ash and
other inorganic
waste).
Increase quantity
of sand
incorporated in
process at Secil
Britas
(manufacture of
aggregates). Tests
successfully
completed on using
techno soils for
restoration of
mining areas.
Continued partnership with
Specialty Minerals Inc., enabling
us to use approximately 991
tons of carbonate sludges at the
Figueira da Foz Pulp Mill.
Three successful applications for
trial areas, in conjunction with
two market leaders in the
construction sector.
Taken together, these
partnerships enabled us in 2022
to send 28,395 tons of sands for
incorporation in the construction
industry.
First edition of a new Co-creation
Programme for Promotion of
Scientific and Technological
Knowledge in the Forest-Based
Circular and Digital Bioeconomy.
We maintained our partnership
with Specialty Minerals Inc. at
Figueira da Foz, enabling us to
reclaim approximately 4,800
tons of carbonate sludges, up by
around 3,800 tons from 2022.
Through partnerships with the
construction sector, involving
incorporation of sands from
fluidised bed biomass boilers
(by-product) in the production of
concrete blocks, Navigator was
able to make use of
approximately 35.6 thousand
tons of sands in 2023 (up 25.5%
on 2022).
8. Invest in low
carbon solutions
leading to carbon
neutrality.
CORE
SUPPORTIVE
8.1 Cut direct CO
2
emissions from
industrial complexes
by 86% by 2035
(baseline: 2018)
72
.
Emissions baseline year:
774,464 t CO2
• Cut direct CO
2
emissions
(EU ETS) from industrial
complexes by 31.5% by
2027 (baseline: 2018).
Reduction of
30.4%.
(539,332 t CO2 vs.
774,464 t CO2)
Reduction of 28.6%.
(552,587 t CO2 vs. 774,464 t CO2)
Reduction of 41.0%.
(456,689 vs. 774,464 t CO2)
In 2023, the interim target for a
reduction of 31.5% in direct EU ETS
CO2 from the industrial complexes by
2027, in relation to 2018, was
exceeded.
Chap. 6.4.2
Climate
change
8.2 Cut scope 1 and 2
GHG emissions by
63% by 2035
(baseline: 2020).
73
Emissions baseline year:
937,710 t CO2e
Goal defined in 2022.
Reduction of 26%.
(697,408 vs. 937,710 tCO2e)
Annual Report 2023 · Management Report 285
74
Calculation of performance on the target for reduction of scope 3 emissions, in keeping with the baseline defined for SBTi, Category 1 is considered, excluding emissions associated with the acquisition of PCC, pulp,
services, wood and waste forestry biomass. We also consider categories 3, 4, 9, emissions relating to processing of pulp into UWF and tissue (Category 10) and 50% of the emissions associated with landfill disposal
(category 12).
Commitments
Goals
Interim Targets
Performance in
2021
Performance
in 2022
Performance
in 2023
Status in
2023
Location
8.3 Cut scope 3 GHG
emissions by 37.5%
by 2035 (baseline:
2020).
74
Emissions baseline year:
958,266 tCO2e
Goal defined in 2022.
Increase of 6.8%.
(1,023,331 vs. 958,266 tCO2e)
8.4 Use renewable
energy representing
80% of total primary
energy consumption
by 2030.
77%
76%
81%
Goal achieved.
Note: Includes production for own consumption by the solar power facilities.
9. Promote
development and
upskilling of human
capital in line with
the Company's
present and future
needs
CORE
SUPPORTIVE
OTHERS
9.1. Reach 80% of
Employees with
development plans
customised to their
needs and
professional plans, in
alignment with
Navigator's succession
needs, by 2030.
• 60% of all Employees
with Development Plan
in 2025.
• 80% of
Technicians/Specialists/
Managers with
Development Plan in
2025.
38% of workforce.
37% of all Employees with
Individual Development Plan.
76% of
Technicians/Specialists/Managers
with Individual Development
Plan.
In 2022, the interim targets were
adjusted.
26% of all Employees with
Individual Development Plan.
38% of
Technicians/Specialists/Managers
with Individual Development
Plan.
Chap. 6.5.1
Talent
management
and
developing
human
capital
Annual Report 2023 · Management Report 286
Commitments
Goals
Interim Targets
Performance in
2021
Performance
in 2022
Performance
in 2023
Status in
2023
Location
10. Contribute to
the skills and
employability of
young people in the
regions where we
operate.
CORE
SUPPORTIVE
OTHERS
10.1. Have active
partnerships with
educational
institutions in all
regions where we
operate in Portugal,
including curricular
and vocational
internships, as well as
participation in
teaching activities,
events and fairs.
• Continue to take part in
job fairs, at the same
time as designing and
implementing
programmes for
engagement with
students, in specific
projects run by the
Company, over the
course of their academic
career.
Participation in 25
job fairs.
Participation in 19 job fairs (in-
person and online).
6 Pitch sessions.
10 presentations of Company
and Junior Recruitment
Programmes.
6 seminars/workshops on topics
related to the Company's
business.
Participation in 26 initiatives at
universities (fairs, pitches and
presentations).
• Keep the partnerships
with technical colleges
active and up to date,
and offer at least 1
internship for each
course identified as
being of interest.
13 partnerships
with Technical
Colleges, in areas
around Navigator
plants.
3 Open Sessions for master's
degree finalists at FCTUC, NOVA
FCT and ISA.
11 meetings between
representatives of Navigator and
teaching staff and educational
institutions to expand synergies.
2 Merit Bursaries awarded at FCT
NOVA.
Cooperation Agreement with
Altri, Corticeira Amorim and
Sonae Arauco for 100% funding
of 22 bursaries in the field of
forestry engineering at
UTAD/FEUP, ISA and ESAC.
8 Visits by student groups to our
mills (242 students).
31 Curricular
Internships/Dissertation
Projects.
3 Open Sessions for master's
degree finalists at FCTUC, FCT
Nova and UA.
8 study grants awarded.
23 visits by student groups to
Navigator mills (636 students).
• Integrate 20% of
internships at
management level.
30 management-
level internships.
104 internships, of which: 49
professional management-level
internships (47%); 55
professional internships for
Technical Operatives (53%); 35
summer internships.
9 long-term Trainees (24 month
programme) hosted.
109 vocational internships, of
which:
• 51 vocational internships
for graduates with first and
master’s degrees, with
27.4% then joining the
company;
• 58 vocational internships
for future operatives, with
67.2% then being hired as
Technical Operatives.
Hiring of approximately 50% of
vocational interns.
3 long-term Trainees (24 month
programme);
• Integrate 50% of
internships for Technical
Operative positions.
60 internships for
technical
operatives.
Annual Report 2023 · Management Report 287
Commitments
Goals
Interim Targets
Performance in
2021
Performance
in 2022
Performance
in 2023
Status in
2023
Location
48 summer internships.
11. Promote an
inclusive
organisational
culture able to
integrate internal
and external
challenges.
CORE
SUPPORTIVE
OTHERS
11.1. Monitor on a
continuous basis the
main motivational
stimuli for Employees
to arrive at more
appropriate
management
practices, policies and
processes
implemented.
Straight to the Top
Programme
(communication
channel for
Employees'
suggestions for
improvement).
Straight to the Top Programme.
Employer Branding activities:
Onboarding, Semapa event.
Open days, with total of 69
sessions for new Employees and
others already integrated in the
organisation in order to share
knowledge across different
sectors.
Launch of the “CRESCER”
(Growing) project, including
listening sessions with
involvement of 200 individuals,
whose input will give rise to a
Roadmap of initiatives and
measures for gradual and
consistent implementation.
Straight To The Top Programme
– covered 4 Industrial
Complexes, with the following
results:
• 35 ideas submitted;
• 1 idea selected for prize.
The organisational climate rate
recorded a participation rate of
73% (the highest ever in
Navigator’s surveys).
12. Provide a safe
and healthy
environment for
Employees,
ensuring their well-
being.
CORE
SUPPORTIVE
OTHERS
12.1. Achieve the
Zero Accidents Target
through continuous
improvement in
safety, with the new
OHS Strategy 2021-
2023:
• Frequency index ≤
2 in 2030 (internal
and external
Employees).
• Achieve Frequency index
of = 4 in 2024.
Frequency index =
6.6.
Frequency index = 7.3.
Frequency index = 5.9.
The interim target was not achieved,
and has been carried forward to 2024
with the same KPI.
Chap. 6.5.2
Health,
safety and
well-being
12.2. Develop the
Occupational Health
programme up to
2030:
WAI = 39.8%
Insofar as this index is monitored every 4 years, the WAI will be
reassessed in 2025.
Annual Report 2023 · Management Report 288
Commitments
Goals
Interim Targets
Performance in
2021
Performance
in 2022
Performance
in 2023
Status in
2023
Location
• Work Ability Index
(WAI): 45% in
2030.
• Assessment of
Employee
satisfaction with
programme >
95%.
98.8%
97%
97%
12.3. Develop the
Ergonomics Action
Area:
• 100 workstations
redesigned by
2030.
32 workstations
redesigned (to
date).
52 workstations redesigned (to
date).
72 workstations redesigned (to
date).
13. Engage with
national,
international and
local Community
institutional
Stakeholders,
listening to their
expectations and
aligning them with
Navigator's strategy
and needs.
CORE
SUPPORTIVE
OTHERS
13.1 Hold 10 events
each year for
interaction with
representatives of
relevant Stakeholder
groups around the
country or
internationally, or five
meetings of the
Community
Monitoring
Committees in the
areas around the
Aveiro, Figueira da
Foz, Setúbal and Vila
Velha de Ródão
industrial units.
Goal defined in
2021.
More than 10 interactions with
Portuguese members of
parliament and MEPs.
3 Meetings of Environmental
Liaison Committees.
Resumption of Navigator Tour -
programme of guided tours of
Navigator, involving secondary
schools and higher education
establishments, as well as
national and international
institutions in different sectors.
- 56 visits to 4 industrial units,
nurseries and RAIZ, involving
1,350 participants.
More than 10 interactions with
Portuguese members of
parliament and MEPs.
8 Meetings of Environmental
Liaison Committees.
Chap. 6.2.1
Sustainabilit
y
Governance
Annual Report 2023 · Management Report 289
Commitments
Goals
Interim Targets
Performance in
2021
Performance
in 2022
Performance
in 2023
Status in
2023
Location
14. Develop
community
relations, promoting
knowledge transfer
and public
awareness of the
economic, social
and environmental
importance of
forests.
CORE
SUPPORTIVE
OTHERS
14.1 Run Forest
Literacy initiatives for
primary school
children, adolescents
and adults, in order to
contribute to better
knowledge of
Portugal's forests, and
their environmental,
social and economic
importance, through
the “Dá a Mão à
Floresta” (Give the
Forest a Hand), My
Planet and
Florestas.pt projects.
• No. initiatives/year
(digital and in-
person): 10
• Organise a roadshow for
the “Dá a Mão à
Floresta” (Give the
Forest a Hand) project,
aimed at primary
schools, by 2024.
12 initiatives: 2
roadshows, 6
magazine editions;
3 interactive
games, 5 episodes
of the series
Portugal nas
Alturas, 3 cartoon
episodes on SIC
KIDS and 12
competitions
29 in-person initiatives: 7
editions of magazines; 880
digital content items; 9
competitions.
19 in-person initiatives: 5
editions of magazines; 1,012
digital content items; 11
competitions.
Chap. 6.5.3
Community
relations
• No. children
reached/ year: 20
thousand
8 thousand
children reached: 2
roadshows; 20
thousand
interactive games
and cartoons;
14,800 copies of
each edition of the
“Dá a Mão à
Floresta” (Give the
Forest a Hand)
magazine.
7,225 children reached: 17 in-
person initiatives; 4 editions of
“Dá a Mão à Floresta” (Give the
Forest a Hand) magazine with
average print run of 14 thousand
copies.
5,236 children reached: 12 in-
person initiatives; 3 editions of
magazine with average print run
of 15 thousand copies.
• No. teenagers and
adults
reached/year: 40
thousand
Teenagers and
adults reached: 13
thousand copies of
each edition of My
Planet magazine.
12,050 teenagers and adults
reached: 12 in-person initiatives;
3 editions of My Planet magazine
with average print run of 15
copies.
4,824 teenagers and adults
reached: 7 in-person initiatives;
2 editions of magazine with
average print run of 16 thousand
copies.
14.2 Promote and
disseminate technical
information about
forestry production,
helping to share best
practices, through the
Forestry Producers
project.
• 40 initiatives for contact
with forestry producers
by 2025.
• Step up the impact on a
community of 20
thousand Forestry
Producers by 2025
(interim target
discontinued in 2023).
6 initiatives: 3
magazines with a
print run of around
30 thousand per
edition and 3
campaigns to
contract land; 500
digital content
items
11 initiatives: 3 editions of
magazine with average print run
of 15 thousand copies.
8 initiatives: 3 editions of
magazine with average print run
of 15 thousand copies; 200
online content items and 2
campaigns to contract land (in
Portugal and Spain).
Annual Report 2023 · Management Report 290
Commitments
Goals
Interim Targets
Performance in
2021
Performance
in 2022
Performance
in 2023
Status in
2023
Location
• No. initiatives/year
(digital and in-
person): 10
• No. forestry
producers
reached/year: 10
thousand
Impact on a
community of 10
thousand Forestry
Producers.
Impact on a community of
12,500 forestry producers.
Impact on a community of 15
thousand Forestry Producers.
15. Promote
knowledge transfer
and public
awareness of the
economic, social
and environmental
importance of
forests.
CORE
SUPPORTIVE
OTHERS
15.1 Implement
“Floresta do Saber”
(Forest of Knowledge)
project, in partnership
with Calouste
Gulbenkian
Foundation.
Project launched in
October 2021, with
initiatives in the
field.
Approximately 6,500
participants; 280 activities; 8
Think Tanks; 3 exhibitions.
10,510 in-person participants;
753 activities in 191 in-person
events; 7 Think Tanks; 2
exhibitions.
15.2 Develop the
Florestas.pt platform.
• 35 Initiatives with
academe (online and in-
person) by 2025
• 4 in-person initiatives by
2025.
• Organise a conference
on the topic of
Portuguese Forests, by
2025.
19 sessions with
Academe; four
editions of
newsletter; 18
authored articles;
52 specialists
involved in
developing
technical and
scientific content.
High-profile
website, with
prime position in
Google search.
12 sessions with academe.
4 (thematic) editions of
newsletter; 18 authored articles;
5 new partnerships (12
partnerships established in 2020
and 2021).
6 dissemination events (2 in-
person).
10 sessions with academe.
4 (thematic) editions of
newsletter; 23 authored articles;
5 new partnerships (24
partnerships established since
2020).
9 in-person information events
(reaching approx. 350 people).
15.3 Consolidate the
e-globulus platform.
10,500 platform
hits; 560
registered users.
More than 44
thousand hits.
14,883 users accessed platform;
687 registered users.
63,394 hits.
(accumulated figures)
More than 20 thousand users
accessed platform; 850
registered users.
More than 82 thousand hits.
(accumulated figures)
Annual Report 2023 · Management Report 291
Commitments
Goals
Interim Targets
Performance in
2021
Performance
in 2022
Performance
in 2023
Status in
2023
Location
New functions.
Consolidate the
Forestry Producers
project.
Information materials on best forestry practices,
genetic materials and contracting forestry land.
Now included under goal 14.2.
15.4 Consolidate the
Biodiversity by The
Navigator Company
project.
• Establish 4 partnerships
by 2025.
• Raise the profile of
Navigator's biodiversity
conservation strategy by
2025 with urban adults
and Portuguese NGOs.
Goal defined in 2022.
Information materials on
best forestry practices,
genetic materials and
contracting forestry land.
100 posts on Facebook and
Instagram and 37 content
items/articles on website;
Partnership with Expresso
newspaper.
Annual Report 2023 · Management Report 292
10.2. Consolidated non-financial statement
Non-financial and consolidated statements under the terms of articles 66
th
-B and 508
th
-G of the Commercial Companies Code.
10.2.1. DNFI Table (Disclosure of Non-Financial Information)
This table shows the correspondence between the content of Navigator's 2023 Management Report and the information
required in the report template for disclosure of non-financial information, recommended by CMVM (Portuguese Securities
Exchange Commission). This template applies to issuers of securities admitted to trading on regulated markets and reflects the
applicable legal rules.
A. Information about policies adopted
Chapters
Sub-chapters
Corresponding Content
A. INTRODUCTION
1. Description of the Company’s general policy regarding
sustainability issues, indicating any changes to previously
approved policy.
Chap. 6.2.4
2. Description of non-financial information reporting
methodology and reasons for its adoption, including any
changes in relation to previous years and reasons for them.
Report drawn up in accordance with
the GRI standards, 2021 version.
Chap. 6.1
GRI Table: 2-4
B. BUSINESS MODEL
1. General description of the Company’s/Group’s business
model and form of organisation, stating the main business
areas and markets of operation (if possible, using organisational
charts, graphs or functional diagrams).
Chap. 2.2, 3.1
C. MAIN RISK FACTORS
1. Identification of the main risks relating to the matters under
report and arising from the Company’s activities, products,
services or business relations, including, where applicable and
possible, supply and subcontracting chains.
Chap. 3.3, 10.6
GRI Table: 2-12 and 2-13
2. Indication of how the Company identifies and manages these
risks.
3. Explanation of the functional division, including governing
bodies, commissions, committees, or departments responsible
for identification and management/monitoring of risks.
4. Express indication of any new risks identified by the
Company in relation to those reported in previous years, and
also of risks no longer identified.
5. Indication and brief description of the main opportunities
identified by the Company regarding the matters subject to
reporting.
D. IMPLEMENTED POLICIES
I. ENVIRONMENTAL POLICIES
1. Description of the Company’s strategic objectives and key
actions taken to achieve them.
Chap. 6.2.1, 6.2.4, 6.3.2. 6.3.3,
6.3.4, 6.3.5, Annex – Detailed 2030
Roadmap
2. Description of the established key performance indicators.
Chap. 6.2.4, 6.3.2. 6.3.3, 6.3.4,
6.3.5
GRI Table: 301-1 to 306-5
3. Indication, on a year-over-year basis, of the degree to which
these objectives were achieved, by reference to at least:
Chap. 6.2.4, Annex – Detailed 2030
Roadmap
i. Sustainable use of resources
Chap. 6.3.2, 6.3.4, 6.3.5
Annual Report 2023 · Management Report 293
Chapters
Sub-chapters
Corresponding Content
GRI Table: 301-1/2, 302-1/3/4,
303-1/2/3/4/5
ii. Pollution and climate change
Chap. 6.3.2
GRI Table: 305-1/2/3/4/5/6/7
iii. Circular economy and waste management
Chap. 6.3.5
GRI Table: 306-3/4/5
iv. Protection of biodiversity
Chap. 6.3.3
GRI Table: 304-1/2/3/4
II. SOCIAL AND TAX POLICIES
1. Description of the Company’s strategic objectives and key
actions taken to achieve them
Chap. 6.2.1, 6.2.4, 6.4.3, 6.5.3,
6.5.4, Annex – Detailed 2030
Roadmap
2. Description of the established key performance indicators
Chap. 6.2.4, 6.4.3, 6.5.3, 6.5.4
GRI Table: 2-25, 201-1, 203-1, 204-
1, 207-4, 308-1/2, 413-1 and 414-
1/2
3. Indication, on a year-over-year basis, of the degree to which
these objectives were achieved, by reference to at least:
Chap. 6.2.4, Annex – Detailed 2030
Roadmap
i. Company's commitment to the community
Chap. 6.4.3
GRI Table: 413-1/2
ii. Subcontracting and Suppliers
Chap. 6.5.4
GRI Table: 2-6, 204-1, 308-1/2,
414-1/2
iii. Consumers
Chap. 6.5.3
GRI Table: 417-1/2/3
iv. Responsible investment
Chap. 5
GRI Table: 204-1
v. Stakeholders
Chap. 6.2.6
GRI Table: 2-29
vi. Tax information
Chap. 4.10
GRI Table: 201-1, 207-1/2/3/4
III. EMPLOYEES AND GENDER
EQUALITY AND NON-
DISCRIMINATION
1. Description of the Company’s strategic objectives and key
actions taken to achieve them
Chap. 6.2.1, 6.2.4, 6.5.1,
Annex – Detailed 2030 Roadmap
2. Description of the established key performance indicators
Chap. 6.2.4, 6.4.1, 6.4.2, 6.5.1
GRI Table: 2-7, 2-30, 202-1, 401-
1/3, 403-1/2/3/4/5/6/7/8/9/10,
404-1/3, 405-1/2, 406-1
3. Indication, on a year-over-year basis, of the degree to which
these objectives were achieved, by reference to at least:
Chap. 6.4.1, 6.4.2, 6.5.1,
Annex – Detailed 2030 Roadmap
i. Employment
Chap. 6.4.1
GRI Table: 2-7, 2-20, 401-1, 404-1,
405-1/2, 406-1
ii. Organization of work
Chap. 6.4.1
GRI Table: 401-2/3
iii. Health and Safety
Chap. 6.4.2
GRI Table: 403-
1/2/3/4/5/6/7/8/9/10
iv. Social relations
Chap. 6.4.1
GRI Table: 2-30
Annual Report 2023 · Management Report 294
Chapters
Sub-chapters
Corresponding Content
v. Training
Chap. 6.4.1
GRI Table: 404-1/2/3
vi. Equality
Chap. 6.5.1
GRI Table: 401-3, 405/1/2
IV. HUMAN RIGHTS
1. Description of the Company’s strategic objectives and key
actions taken to achieve them
Chap. 6.2.1, 6.2.4, 6.5.1
GRI Table: 2-23, 406-1, 407-1, 408-
1, 409-1, 410-1
2. Description of the established key performance indicators
3. Indication, on a year-over-year basis, of the degree to which
these objectives were achieved, by reference to at least:
i. Due diligence procedures
ii. Risk prevention measures
iii. Judicial proceedings
V. ANTI-CORRUPTION AND
ANTI-BRIBERY
1. Corruption prevention: measures and instruments adopted to
prevent corruption and bribery; policies implemented to deter
workers and Suppliers from engaging in these practices;
information on the compliance system, indicating the relevant
functional managers, if any; indication of legal proceedings
involving the Company, its directors or employees related to
corruption or bribery; measures adopted in relation to public
procurement, if relevant.
Chap. 6.5.1
GRI Table: 2-23, 2-26, 205-1/2/3
/ Corporate Governance Report
2. Prevention of money laundering (for issuers subject to these
rules): information on measures to prevent and combat money
laundering; indication of number of cases reported each year.
Chap. 6.5.1
GRI Table: 2-23, 2-26, 205-1/2/3
/ Corporate Governance Report
3. Codes of ethics: indication of any code of ethics to which the
Company may have acceded or which it may have
implemented; indication of the respective mechanisms for
implementation and monitoring of compliance with the code, if
applicable.
Chap. 6.5.1
GRI Table: 2-23, 2-26, 205-1/2/3
/ Corporate Governance Report
4. Management of conflicts of interest: measures to manage
and monitor conflicts of interest, namely requiring managers
and employees to sign declarations of interest, incompatibilities
and impediments.
Chap. 6.5.1
GRI Table: 2-15
/ Corporate Governance Report
Annual Report 2023 · Management Report 295
B. Disclosures on standards followed
1. IDENTIFICATION OF THE
STANDARDS FOLLOWED FOR
REPORTING NON-FINANCIAL
INFORMATION
Identification of the standards / guidelines followed for preparation
of non-financial information, including the respective options, and
other principles considered in the Company’s conduct, if applicable.
If the Company refers to the United Nations 2030 Agenda
Sustainable Development Goals (SDGs), include identification of
those to which the Company is committed to contribute, indicating
the measures taken each year to achieve the goals set for each of
these SDGs. In other words, identify concrete actions, projects or
investments with a view to attaining these SDGs. In other words,
identify concrete actions, projects or investments with a view to
attaining these SDGs.
Report drawn up in accordance
with the GRI standards, 2021
version.
Chap. 6.1, 6.2.5
Annex – Correspondence Tables
2. IDENTIFICATION OF THE
SCOPE AND METHODOLOGY
FOR CALCULATING
INDICATORS
Description of the scope and calculation methodology (including the
calculation formula) for the indicators presented, including any
limitations on this reporting. Where possible, a table should be
presented showing correspondence between the indicators
presented and principles or objectives considered, indicating where
the information is detailed (e.g. the page of the stand-alone report
on non-financial information, the annual report, any other document
or the Company’s website).
Chap. 6.1
GRI Table
3. EXPLANATION OF NON-
APPLICATION OF POLICIES
If the Company does not apply policies with respect to one or more
issues, the non-financial reporting provides an explanation of the
reasons for this.
Not Applicable
4. OTHER INFORMATION
Additional data or information that is not included above but is
relevant to understanding and explaining non-financial information
and the respective background, in particular regarding
networks/groups of entities in the field of sustainability and
responsibility to which it belongs, at national or international level,
and sustainability commitments that the Company has made
voluntarily, at local or global level.
Chap. 6.2.2, 6.2.4, 6.2.5
GRI Table: 2-28
Progress Report on Meeting
Act4nature Portugal
Commitments (see online)
Annual Report 2023 • Management Report
296
10.2.2. GRI Correspondence Table
Material Topic
Definition
GRI Standards
(1)
GRI Indicators
(1)
Location
Responsible
Governance
Ensuring best management
practices which promote
responsible conduct throughout
the Company's value chain,
through internalisation of business
ethics by Employees at all levels,
enabling the Company to act in
conformity with the law, standards
and internal regulations in this
area. Implementation of policies
centred on people and their rights,
from guarantees for human rights
to a contribution to a fairer society
by promoting diversity and
inclusion, in the Company and
throughout its value chain.
Identification, assessment and
management of operational,
strategic and reputational risks,
drawing up contingency plans,
including for environmental, social
and governance risks and the
impact of regulatory provisions on
business.
GRI 2: General Disclosures
2-9, 2-10, 2-11, 2-12,
2-13, 2-14, 2-15, 2-
16, 2-17, 2-18, 2-19,
2-20, 2-21, 2-23, 2-
24, 2-25, 2-26, 2-27
Chap. 3.3
Chap. 6.2.1
Chap. 6.5.1
GRI Table
GRI 205: Anti-corruption
205-1, 205-2, 205-3
GRI 206: Anti-Competitive
Behaviour
206-1
GRI 405: Diversity and Equal
Opportunity
405-1, 405-2
GRI 406: Non-discrimination
406-1
GRI 407: Freedom of Association
and Collective Bargaining
407-1
GRI 408: Child Labour
408-1
GRI 409: Forced or Compulsory
Labour
409-1
GRI 410: Security Personnel
trained in Human Rights Property
Rights Policies or Procedures
410-1
GRI 415: Public Policy
415-1
Creating
Sustainable Value
Generating value and sharing with
society. Financial strategies for
maximising returns and long-term
business stability., adopting a
sustainable financing model by
integrating ESG (Environmental,
Social and Governance)
performance criteria.
GRI 201: Economic Performance
201-1, 201-2, 201-3,
201-4
Chap. 5
Chap. 4.10
GRI Table
GRI 202: Market Presence
202-1
GRI 203: Indirect Economic
Impacts
203-1, 203-2
GRI 207: Tax
207-1, 207-2, 207-3,
207-4
Innovation,
Technology and
R&D
Development of new strategies,
products, services or processes
that enable the Company, in the
course of pursuing its core
business, to increase its positive
impacts and reduce its negative
impacts, boosting profits and
cutting the associated costs.
Promotion of short-medium term
and/or future-focussed activities,
related to science or technology.
GRI 201: Economic Performance
201-1, 201-4
Chap. 6.5.2
GRI Table
Bioproducts
Development of businesses,
outside the current core business,
based on the use of renewable,
non-fossil biological resources, for
producing materials and energy.
Generated in a context of
medium-long term research and
development and cooperation on a
global scale, these businesses
may provide answers to our
current challenges on the basis of
innovative solutions intended to
substitute fossil-based products.
---
---
Chap. 6.5.2
Annual Report 2023 · Management Report 297
Material Topic
Definition
GRI Standards
(1)
GRI Indicators
(1)
Location
Talent
Management and
Developing Human
Capital
Development, retention and
attraction of talent in the
workplace, ensuring access to
training and career plans for
Employees, integrating the needs
of younger generations and end-
of-career plans. Alignment of
expectations through an arena for
dialogue between management
and Employees. Building individual
responsibility and teamwork
capacity, creating a positive
organisational climate. Promotion
of initiatives to engage Employees
with the Company’s Purpose.
Arrangements for feedback from
Employees and participation in
work organisation processes.
GRI 2: General Disclosures
2-7, 2-30
Chap. 6.4.1
GRI Table
GRI 401: Employment
401-1, 401-2, 401-3
GRI 402: Labour/Management
Relations
402-1
GRI 404: Training and Education
404-1, 404-2, 404-3
Health, Safety and
Well-being
Promoting practices that foster
and promote the health, safety
and well-being of all our
Employees (whether permanent or
otherwise) and of the Company's
Suppliers.
GRI 403: Occupational Health and
Safety
403-1, 403-2, 403-3,
403-4, 403-5, 403-6,
403-7, 403-8, 403-9,
403-10
Chap. 6.4.2
GRI Table
Supply Chain
Management
Incentives for sustainable
management of supply chain,
through traceability, making it
possible to prevent and minimise
possible negative impacts and to
implement good environmental
and social practices. Develop
measures that help to improve
sustainability in the supply chain
and the procedures for selecting
and assessing Suppliers.
GRI 2: General Disclosures
2-6
Chap. 6.5.4
GRI Table
GRI 204: Procurement Practices
204-1
GRI 308: Supplier Environmental
Assessment
308-1, 308-2
GRI 414: Supplier Social
Assessment
414-1, 414-2
Community
relations
Management of local risks and
impacts. Measures that encourage
and contribute to local
development and to nurturing
neighbourly relations with local
communities, helping to improve
the quality of life.
GRI 413: Local Communities
413-1, 413-2
Chap. 6.4.3
GRI Table
Customer
Management
Considering the opinion of
Customers in developing
innovative solutions and products.
Offering society renewable options
with less environmental impact,
making it possible to substitute
non-renewable products.
GRI 417: Marketing and Labelling
417-1/2/3
Chap. 6.5.3
GRI Table
Climate Change
and CO
2
sequestration
Implementation of strategies for
measuring and reducing the
carbon footprint and promoting
mitigation and adaptation to the
risks generated by climate
change, including sequestration of
CO
2
in the product value chain.
Investment in projects based on
use of renewable energy sources,
in particular biomass and solar.
GRI 201: Economic Performance
201-2
Chap. 6.3.2
GRI Table
GRI: 305: Emissions
305-1, 305-2, 305-3,
305-4, 305-5, 305-6,
305-7
Annual Report 2023 · Management Report 298
Material Topic
Definition
GRI Standards
(1)
GRI Indicators
(1)
Location
Sustainable
Forestry
Management
Continued certification of the
management system for our own
forests, ensuring that economic
returns are conciliated with
mitigating environmental and
social impacts, protection of
woodlands, conservation of
wildlife, social assets and cultural
heritage, and incentives for the
use of local manpower.
Investment in forestry certification
programmes and in training and
employment of forestry producers,
encouraging them to adopt good
forestry management practices.
---
---
Chap. 6.3.3
GRI Table
Biodiversity
Conservation
Promotion of practices for
monitoring and conserving the
natural assets that lead to
preservation and/or improvement
of the state of biodiversity
conservation and of ecosystem
services in the woodlands
managed by the Company.
Protection and improvement of
healthy ecosystems, securing
economic prosperity and helping
to mitigate and adapt to climate
change and its impact.
GRI 304: Biodiversity
304-1, 304-2, 304-3,
304-4
Chap. 6.3.3
GRI Table
Water
Management
Identify and manage risks related
to scarcity of water. Control and
reduction of water consumption
through techniques that lead to
greater value for money in reusing
water, production processes less
dependent on this resource and
also compliance with the
regulations in force. Application of
the appropriate treatment for
effluents, optimising discharge
quality.
GRI 303: Water and effluents
303-1, 303-2, 303-3,
303-4, 303-5
Chap. 6.3.4
GRI Table
Energy and Raw
Material
Management
Promote control and reduction of
our consumption of resources, in
particular wood and energy,
through practices and
mechanisms that make for
efficient use. Ensure appropriate
treatment of atmospheric
emissions and odours, with a view
to minimising impacts.
GRI 301: Materials
301-1/2
Chap. 6.3.5
GRI Table
Chap. 6.3.2
GRI Table
GRI 302: Energy
302-1/3/4
Circular Economy
Promotion of strategies and
mechanisms for reducing waste
during the entire life cycle of
products and substitution of raw
materials Appropriate waste
management, geared to avoidance
of production. Adoption of best
practices to minimise impact of
waste produced on the
environment and human health.
GRI 306: Waste
306-1/2/3/4/5
Chap. 6.3.5
GRI Table
(1) In addition to the standards and indicators listed above: GRI 3 - Material topics, applicable across all issues; the indicators in GRI 3 - General disclosures, which must
be reported.
Annual Report 2023 · Management Report 299
10.2.3. GRI Table
This index identifies the GRI Standards and indicators to which Navigator is responding, referring to the respective sections of the Report
(or other external resources) and detailing the response, in the table, wherever applicable.
Statement of use
The Navigator Company has reported in accordance with the GRI Standards for
the period from 1 January 2023 to 31 December 2023
Reporting in accordance with:
GRI 1: Grounds 2021
Applicable GRI Sector Standard(s):
Not Applicable
UNIVERSAL CONTENT
GRI 2: GENERAL DISCLOSURES 2021
THE ORGANISATION AND ITS REPORTING PRACTICES
Organizational Details
Name of the organisation: The Navigator Company S.A.
Location of headquarters: Península da Mitrena, Setúbal
Nature of ownership and legal form: The Navigator Company, SA is a public limited company registered with the Setúbal Companies Registry. The
Navigator Company, S.A. is listed on the Lisbon Stock Exchange (Euronext Lisboa), and included in its market index, the PSI 20.30.
2-2 Entities included in the organisation's sustainability reporting
In the reporting of non-financial information in 2023, all indicators are consolidated in alignment with the financial reporting perimeter,
except for the following groups of indicators.
Perimeter
GRI Indicators
Operations in Portugal
2-21, 302-4, 304-1, 304-2, 304-3, 304-4, 305-5, 403-1,403-2, 403-3, 403-4, 403-5, 403-6, 403-
7, 403-8, 403-9, 403-10
Operations in Portugal and Mozambique
2-8, 202-1, 203-1, 401-3, 405-2
Operations in Portugal and Spain*
301-1, 301-2, 302-1, 302-3, 305-1, 305-2, 305-3, 305-4, 305-7, 306-3, 306-4, 306-5
Operations in Portugal, Spain* and Mozambique
303-1, 303-2, 303-3, 303-4, 303-5, 306-1, 306-2
Operations in Portugal, Mozambique and International
Offices
2-7, 401-1, 404-1, 404-3, 405-1
*Includes only new industrial unit in Ejea
The differences between the perimeter considered in our 2022 reporting and the perimeter considered in 2023 are due essentially to the fact that, in
2023, we considered, wherever possible, information on activities in Mozambique, as well as activities relating to the new tissue unit in Spain (Ejea),
acquired in April 2023. The integration of data from these geographical regions is still in progress, and the process has not yet been consolidated for all
the indicators in this report. For further information on the calculation of each of the indicators, see the respective methodological notes.
2-3 Reporting period, frequency and contact point
Chap. 6.1 Technical disclosures
Annual Report 2023 · Management Report 300
2-4 Restatements of information
Chap. 9 Our performance
In order to respond better to the GRI standards, the following indicators have been adjusted/reviewed in relation to the information contained in the
last Sustainability Report. In addition, some of the figures have been reviewed on the basis of information which became available after publication of
that report.
Adjusted/updated indicators: 2-7 Employees; 2-30 Collective bargaining agreements; 303-3 Water withdrawal; 303-5 Water consumption; 305-1 Direct
GHG emissions (Scope 1); 305-2 Indirect GHG emissions (Scope 2); 305-5 Reduction of GHG emissions; 306-3 Waste generated; 306-4 Waste
diverted from disposal; 306-5 Waste directed to disposal; 401-1 New employee hires and employee turnover; 401-3 Parental leave; 404-1 Average
hours of training per year per employee; 405-1 Diversity of governance bodies and Employees.
The information reviewed is identified in the respective indicators in this GRI Index.
2-5 External verification
Chap. 10.5 Verification of information - Independent Limited Reliability Assurance Report – KPMG
The sustainability information has been verified by an external firm, which has issued an independent limited assurance report.
ACTIVITIES AND WORKERS
2-6 Activities, value chains and other business relationships
Chap. 2 Our Identity
Chap. 6.5.4 Supply chain management
More information at:
Brands: http://www.thenavigatorcompany.com/
Markets served: http://www.thenavigatorcompany.com/Pasta-e-Papel/Papel/O-nosso-Papel-no-Mundo
In 2023, the most significant change was the acquisition of a new Consumer Tissue business in Spain (Ejea unit), in the second quarter of the year,
increasing our industrial and commercial capacity.
2-7 Employees
Chap. 6.4.1 Talent management and developing human capital
Chap. 9.3 Our performance (Social Indicators)
Total no. of Employees by duration of employment contract, by gender
2023
2022
2021
Permanent contract
Men
2,550
2,549
2,537
Women
576
533
496
Subtotal
3,126
3,082
3,033
Fixed-term contract
Men
138
123
79
Women
53
41
38
Subtotal
191
164
117
Total
Men
2,688
2,672
2,616
Women
629
574
534
Total
3,317
3,246
3,150
Annual Report 2023 · Management Report 301
Total number of employees by contract duration and geographical distribution
2023
2022
2021
Permanent contract
Cacia
509
504
476
Figueira da Foz
1,011
991
971
Vila Velha de Ródão
230
229
227
Setúbal
1,046
1,026
1 049
Others
145
142
122
Subtotal: Portugal
2,941
2,892
2,845
Spain
20
-
-
Mozambique
120
121
119
Other regions
45
74
75
Subtotal: global
3,126
3,087
3,039
Fixed-term contract
Cacia
81
44
45
Figueira da Foz
36
40
29
Vila Velha de Ródão
14
4
3
Setúbal
42
53
21
Others
6
6
1
Subtotal: Portugal
179
147
99
Spain
0
-
-
Mozambique
10
10
10
Other regions
2
2
2
Subtotal: global
191
159
111
Total
Cacia
590
548
521
Figueira da Foz
1,047
1,031
1,000
Vila Velha de Ródão
244
233
230
Setúbal
1,088
1,079
1,070
Others
151
148
123
Total: Portugal
3,120
3,039
2,944
Spain
20
-
-
Mozambique
130
131
129
Other regions
47
76
77
Total: global
3,317
3,246
3,150
Total no. of Employees by type of employment contract, by gender.
2023
2022
2021
Full-time
Men
2,688
2,672
2,615
Women
625
569
529
Subtotal
3,313
3,241
3,144
Part-time
Men
0
0
1
Women
4
5
5
Subtotal
4
5
6
Total
Men
2,688
2,672
2,616
Women
629
574
534
Total
3,317
3,246
3,150
Note 1: The figures refer to the number of Employees at 31 December each year. This does not include the 150 Employees at Navigator Tissue Ejea, as well as interns/bursary
holders and company officers.
Note 2: The Group has no Employees on zero hours contracts (i.e. employees who are not guaranteed a set number of hours of work per day, week or month, but who have to
be available to work if necessary).
Note 3: The figures for 2021 and 2022 were corrected due to consolidation of the categories “fixed term” and “temporary contracts”, previously reported separately, and also
due to the inclusion of Employees in Mozambique.
In 2023, the Talent Attraction Programme worked with 326 young people, including vocational interns, trainees and summer interns over the year. At
31 December, there were 113 interns/trainees in the company
2-8 Workers who are not Employees
At 31 December 2023, the Company had approximately 12,863 external workers in Portugal, performing duties either in the industrial complexes or in
forestry operations. In addition to resident external workers, the count also included casual workers, who provide support to the organisation in the
form of varied services, in particular in maintenance, cleaning and work relating to annual shutdowns.
In Mozambique, there were 145 external workers, contracted for services of a technical and operational nature, forestry and social development. It was
not possible to calculate this indicators for other geographical regions in 2023.
Annual Report 2023 · Management Report 302
GOVERNANCE
2-9 Governance structure and management
Chap. 3.2 Governance Model
Chap. 6.2.1 Sustainability Governance
Description of governance structure:
The Company’s Articles of Association provide for a unitary management model, with a Board of Directors comprising executive and non-executive
members and an Audit Board and a Statutory Auditor, in accordance with Articles 278.1 a) and 413.1 b) of the Companies Code. At 31 December 2023,
the Board of Directors comprised a chairman and thirteen members, elected by the Company’s General Meeting for a renewable three-year term of
office (2023-2025). The General Meeting consists of all the shareholders (who wish to attend - there are no limits in the Company on exercise of voting
rights by its shareholders. Under Navigator's Articles of Association, each share in the company carries one vote). An external auditor is appointed (at
present, KPMG & Associados). The following internal committees exist in the Company:
a) Attached to the board of directors:
(i) Executive Board (EB)
(ii) Corporate Governance Committee
(iii) Talent Committee
(iv) Risk Management Committee
(v) Environmental Council
(vi) Sustainability Forum
b) Not attached to the board of directors:
(i) Remuneration Committee
(ii) Sustainability Forum
(iii) Pension Fund Supervisory Board
(iv) Property Risks Analysis and Monitoring Committee
(v) Ethics Committee
(vi) Environmental Council
The Board of Directors and the Executive Board, on matters delegated to it (i.e. the EC deals with routine matters and decisions of greater weight at
taken by the BD).
The following powers are delegated to the Executive Board:
(i) To propose the company’s policies, aims and strategies to the Board of Directors;
(ii) To propose to the Board of Directors operating budgets and medium and long term investment and development plans, and to implement the
same once approved;
(iii) To approve budget alterations during the year, including transfers between cost centres not exceeding twenty million euros each year;
(iv) To approve contracts for the acquisition of goods and services of a value each year no greater than twenty million euros;
(v) To approve financing contracts, to apply for bank guarantees, or to accept any other liabilities which represent increased indebtedness,
totalling no more than twenty million euros each year;
(vi) To acquire, dispose of or encumber the company’s fixed assets of a value, in each individual case, of up to five per cent of the paid up share
capital;
(vii) To lease or let any immoveable property;
(viii) To represent the Company in or out of court, as claimant or respondent, and to bring or follow up any judicial or arbitral actions, confess or
desist, settle or agree to arbitration;
(ix) To acquire, dispose of or encumber holdings in other companies, of a value of no more than twenty million euros each year;
(x) To resolve on executing acquisition and disposal of own shares, when this has been resolved on by the general meeting, in keeping with the
terms of such resolution;
(xi) To manage holdings in other companies, in conjunction with the Chairman of the Board of Directors, namely by designating, with the latter’s
agreement, the representatives to sit on the respective company boards, and setting guidelines for the acts of these representatives;
(xii) To enter into, amend and terminate employment contracts;
(xiii) To open, transact and close bank accounts;
(xiv) To appoint Company attorneys;
(xv) In general, all powers which may lawfully be delegated, with any limitations deriving from the provisions of the preceding paragraphs.
In conjunction with the Chairman of the Board of Directors, the Executive Board may also resolve on the matters indicated in sub-paragraphs iv), v),
vi) and ix) above when the respective values, calculated on the terms set out therein, are greater than twenty million euros but no greater than fifty
million euros.
Annual Report 2023 · Management Report 303
The Chairman of the Board of Directors has the powers assigned to him by Law and the Articles of Association. The powers to alter any terms of
contracts previously concluded and covered by the provisions of iv), v), vi) and ix) lie with the body or bodies who would have powers to enter into
them. The Executive Board may discuss all matters within the sphere of competence of the Board of Directors, notwithstanding that it may only resolve
on matters delegated to it. The Executive Board Regulations, approved by the Board of Directors, also establish rules on the actions of executive
directors.
Decisions relating to definition of company strategy, and to the company’s general policies and the corporate structure of the Navigator Group, are the
province of the Board of Directors, and the Executive Board has no delegated powers to this effect. The non-executive directors accordingly take part in
designing strategy, central policies and the business structure and in reaching decisions that are to be considered strategic by virtue of the sums or
risks involved, and also in assessing execution of these decisions. The management of the Company is centred on the relationship between the Board
of Directors and the Executive Board. The composition of these boards is announced and updated at:
http://www.thenavigatorcompany.com/Investidores/Governo-da-Sociedade.
Further information: sections 15 -18 and 21, Corporate Governance Report | Part I – Information on Capital structure, Organisation and Corporate
Governance
2-10 Nominating and selecting the highest governance body
Case:
The members of the Board of Directors are elected at the General Meeting and approved by a majority. The process includes submission of a motion for
membership of the board, on the basis of experience, with submission of full CVs and in accordance with the diversity principles set out below and with
the Company's Articles of Association (which state that the Board of Directors consists of three to seventeen members appointed for renewable four-
year terms).
Under the Articles of Association, the company's audit body comprises three full members, one of whom is Chairman, and one alternate member.
Appointment criteria:
The Company has approved principles on Diversity and Gender Equality in relation to the composition of its boards and officers: The Navigator
Company recognises the benefits of diversity in its boards and officers, in particular on the Board of Directors, the Audit Board and the Management, as
a way of ensuring an improved balance in its composition, optimising the performance of each member and of each body as a whole, improving the
quality of its decision making process and contributing to its sustainable development. In order to promote diversity within The Navigator Company, the
Board of Directors has accepted and recognised the following Diversity Principles as appropriate to the composition of the company bodies and officers:
- Inclusion of members with different academic qualifications and professional experience in different areas, when appropriate and relevant to exercise
of the office in question;
- Promotion of gender diversity;
- Inclusion of members of different ages, combining experience acquired from new perspectives, and
- Inclusion of members with life experiences in diverse geographical regions.
Further information in Sections 16 and 17, Corporate Governance Report | Part I - Information on Shareholder Structure, Organisation and Corporate
Governance | B. Statutory Bodies and Committees | II. Management and Supervision
2-11 Chair of the highest governance body
The chair of the Board of Directors is not a senior executive in the company.
2-12 Role of highest governance body in overseeing the management of impacts
Chap. 6.2.1 Sustainability Governance
Powers to decide on Navigator's mission, strategy, policies and targets (including as regards sustainable development) lie with the Board of Directors,
and are not delegated to the Executive Board. The Executive Board may oversee these issues from day to day, submitting proposals to the Board of
Directors.
Strategic planning and investment policy (notwithstanding the field of responsibility in question) are naturally areas where non-executive directors are
more active and where the Chairman of the Directors is significantly involved. The non-executive directors accordingly take part in designing strategy,
central policies and the business structure and in reaching decisions that are to be considered strategic by virtue of the sums or risks involved, and also
in assessing execution of these decisions. In the field of sustainability, the Sustainability Division works in conjunction with the other divisions and the
Sustainability Forum, setting up various working parties to address specific topics. The Division's activities have been overseen by the Executive Board
and involved all companies across the Group. Reflecting this activity, the Company draws up an “Annual Report” which, in line with legal requirements
introduced by Decree-Law 89/2017, of 18 July, provides a consolidated and detailed analysis of the Company's approach and commitment to
sustainability issues. By implementing and executing these strategic principles, as more fully described in the Sustainability Report, the Company is
able to ensure long-term success, making a significant contribution to the wider community. The Company's arrangements and organisational
processes for identifying its impacts on the economy, the environment and people are overseen by the directors belonging to the Executive Board, who
also review the effectiveness of organisational processes and the frequency of review, with support from Navigator staff, principally in the areas of risk
management, internal audit, environment and sustainability, and then report to the Board of Directors. As a non-executive body, the Board of Directors
oversees the measures adopted, but is not actively involved in implementing them.
Further information in Section 21, Corporate Governance Report | Part I - Information on Shareholder Structure, Organisation and Corporate
Governance | B. Statutory Bodies and Committees | II. Management and Supervision
Annual Report 2023 · Management Report 304
2-13 Responsibility for managing impacts
The following powers are delegated by the Board of Directors to the Executive Board:
a) To propose the company’s policies, aims and strategies to the Board of Directors;
b) To propose to the Board of Directors operating budgets and medium and long term investment and development plans, and to implement the
same once approved;
c) To approve budget alterations during the year, including transfers between cost centres not exceeding twenty million euros each year;
d) To approve contracts for the acquisition of goods and services of a value each year no greater than twenty million euros;
e) To approve financing contracts, to apply for bank guarantees, or to accept any other liabilities which represent increased indebtedness, totalling
no more than twenty million euros each year;
f) To acquire, dispose of or encumber the company’s fixed assets of a value, in each individual case, of up to five per cent of the paid up share
capital;
g) To lease or let any immoveable property;
h) To represent the Company in or out of court, as claimant or respondent, and to bring or follow up any judicial or arbitral actions, confess or
desist, settle or agree to arbitration;
i) To acquire, dispose of or encumber holdings in other companies, of a value of no more than twenty million euros each year;
j) To resolve on executing acquisition and disposal of own shares, when this has been resolved on by the general meeting, in keeping with the
terms of such resolution;
k) To manage holdings in other companies, in conjunction with the Chairman of the Board of Directors, namely by designating, with the latter’s
agreement, the representatives to sit on the respective company boards, and setting guidelines for the acts of these representatives;
l) To enter into, amend and terminate employment contracts;
m) To open, transact and close bank accounts;
n) To appoint Company attorneys;
o) In general, all powers which may lawfully be delegated, with any limitations deriving from the provisions of the preceding paragraphs.
In conjunction with the Chairman of the Board of Directors, the Executive Board may also resolve on the matters indicated in sub-paragraphs c), d), e)
and i) above when the respective values, calculated on the terms set out therein, are greater than twenty million euros but no greater than fifty million
euros.
The Chairman of the Board of Directors has the powers assigned to him by Law and the Articles of Association. The powers to alter any terms of
contracts previously concluded and covered by the provisions of c), d), e) and i) lie with the body or bodies who would have powers to enter into them.
The Executive Board may discuss all matters within the sphere of competence of the Board of Directors, notwithstanding that it may only resolve on
matters delegated to it. The Executive Board Regulations, approved by the Board of Directors, also establish rules on the actions of executive directors.
Decisions relating to definition of company strategy, and to the company’s general policies and the corporate structure of the Navigator Group, are the
province of the Board of Directors, and the Executive Board has no delegated powers to this effect. The non-executive directors accordingly take part in
designing strategy, central policies and the business structure and in reaching decisions that are to be considered strategic by virtue of the sums or
risks involved, and also in assessing execution of these decisions. The management of the Company is centred on the relationship between the Board
of Directors and the Executive Board.
Further information in sections 15-18, Corporate Governance Report | Part I - Information on Shareholder Structure, Organisation and Corporate
Governance | B. Statutory Bodies and Committees | II. Management and Supervision
2-14 Role of highest governance body in sustainability reporting
Chap. 6.2.1 Sustainability Governance
Although some of the matters included in the Annual Report may fall within the powers of the Board of Directors, this report incorporates the non-
financial and diversity reporting by large companies required under Articles 46 and 451 of the Companies Code, and which must be approved by
shareholders at the General Meeting.
These rules were introduced by Decree-Law 89/2017, of 28 July, which altered the Companies Code, transposing Directive 2014/95/EU of the EU of the
European Parliament and the Council of 22 October 2014 (“NFR Directive”), which introduced the requirement for disclosure of non-financial
information and information on diversity by certain large companies and business groups, in order to increase the relevance, consistency and
comparability of information disclosed by those companies and groups. The Board of Directors is responsible for drawing up and signing the draft
Annual Report to be submitted to shareholders each year at the General Meeting, for approval by the same by a simple majority. The Sustainability
Division works in conjunction with the other divisions and the Sustainability Forum, and its activities are overseen by the Executive Board and involve
all companies across the Group.
2-15 Conflicts of interest
Navigator's Board of Directors has approved Regulations on Conflicts of Interests and Related Party Transactions (CIRPT), containing rules on conflicts
of interests and related party transactions, where Navigator is one of the parties. These regulations complement the internal arrangements in place in
the Company for the purpose of compliance with the legal and regulatory rules applicable on this matter, without prejudice to the obligations of the
Company and its managers with regard to insider information, the legal rules on company transactions with directors, the internal Whistleblowing
regulation and other legislation applicable to conflicts of interests.
Under these regulations, a conflict of interests is deemed to exist whenever a Manager is in a position which, viewed objectively, may compromise his
or her independence and cause interests other than those of the company to exert influence over his or her judgment, be those interests financial or
otherwise, their own or those of others.
Annual Report 2023 · Management Report 305
In order for conflicts of interests to be duly prevented, identified and resolved, Managers are required to:
a) Inform their hierarchical superior or, in the case of members of a collegiate body, the body in question, in accordance with the respective rules
of procedure, of the existence of any conflict of interest, even if merely potential;
b) Refrain from interfering or taking part if a conflict of interests arises and, in the case of a decision-making process, have this impediment stated
in the minutes or other written document in which the decision is duly recorded, without prejudice to the duty to provide such information and
clarifications as the body in question and its members may request.
These regulations also govern related party transactions.
Approved by:
1. The following Related Party Transactions are approved by the Executive Board:
a) Loans to the Company from its own corporate shareholders, of a value lesser than or equal to one hundred million euros;
b) Transactions falling under the rules on the taxation of groups of companies, of a value less than or equal to one hundred million euros;
c) Transactions with companies controlled by the Company and included in its consolidated accounts, of a value, on an individual or accrued
annual basis, less than or equal to two per cent of the turnover of the controlled company, as determined in accordance with its latest
approved annual accounts;
d) Loans to companies controlled by the Company and included in its consolidated accounts, and also subscription of their debt, (i) with a
maturity of less than six months, (ii) of a value, on an individual or accrued annual basis, less than one fifth of the turnover of the respective
controlled company, as determined in accordance with its last approved annual accounts, and (iii) provided the controlled company arranges
credit facilities to repay the operation; and
e) Any other Transactions of a value, on an individual or accrued annual basis, lesser than or equal to one million euros.
2. Under the terms and for the purposes of application of items c) and e) of the preceding paragraph, the accrued annual values provided for therein
are calculated with reference to the financial year.
3. Without prejudice to the exemption rule referred to in clause seven of these regulations, any Transactions which (i) do not fall within the scope of
the items of paragraph one or (ii) fall within the scope of that paragraph, but are not carried out in the ordinary course of Company's business,
shall be approved by resolution of the Board of Directors, preceded by a favourable opinion from the Audit Board.
4. Transactions are only permitted when on an arm’s length basis and in the Company's own interest, as duly justified.
Procedures:
1. The Board of Directors is informed every six months of resolutions relating to Transactions in which it has not participated.
2. The Audit Board is informed of Transactions that the Company carried out for the purposes of verification of compliance by the Transactions with
the rules established in the previous clause and with the legislation and regulations applicable; the related parties may not participate in the
relevant verification process.
3. The Company's managers involved in formalising Transactions must ensure that such Transactions are previously submitted to the rules and
procedures established in these Regulations and in the applicable legislation and regulations.
4. The Executive Board shall exercise special oversight over the formalisation and execution of resolutions relating to Transactions.
Disclosure:
1. The Company shall disclose the Transactions which must be disclosed under the applicable legislation and regulations, namely because they do not
meet any of the requirements established in law and in accordance with the value in question.
2. The disclosure referred to in the preceding paragraph shall be made under the terms and within the periods of times established in the applicable
legislation and regulations.
Exemptions:
These regulations shall not apply to Transactions treated as exempt by the applicable legislation and regulations.
More information in the Regulations on Conflicts of Interest and Related Party Transactions:
http://www.thenavigatorcompany.com/var/ezdemo_site/storage/original/application/46016a2e3fa07b850cca05dac9dcaddf.pdf
See also Section 10, Corporate Governance Report | Part I - Information on Shareholder Structure, Organisation and Corporate Governance | A.
Shareholder Structure | 1.1.2 Holdings of Shares and Bonds and sections 89, 90 and 91 in the Corporate Governance Report | Part I - Information on
Shareholder Structure, Organisation and Corporate Governance | E. Related Party Transactions and Conflicts of Interests | I. Control Mechanisms and
Procedures
2-16 Communicating critical concerns
Chap. 6.2.1 Sustainability Governance
Chap. 6.5.1 Responsible business conduct
The number of critical concerns is communicated to the Board of Directors by the members of the Executive Board, in certain cases on the request of
the Audit Board, KPMG (external auditor) and the Risk Management Division.
Annual Report 2023 · Management Report 306
Navigator has several channels for communication with Stakeholders, enabling it to identify critical concerns. We therefore identify below the respective
communication procedures:
a) Under the Human Rights Policy in force, the Executive Board is required to determine the measures to resolve or remediate any non-conformities
identified, and also to process information transparently, namely by disclosing it in the annual management report. The Board of Directors is
responsible for overseeing the annual planning of measures to promote and enforce the policy.
b) The Audit Board is informed of all communications received through the whistleblowing channel and, whenever they involve a member of the
Board of Directors or Audit Board, the Ethics and Integrity Committee is also informed. When the investigation is completed, the proposed course
of action and the respective report are sent to the Executive Board and the Audit Board, or else to the Board of Directors and the Audit Board,
when the subject matter of the whistleblowing report lies outside the scope of the powers delegated to the Executive Board;
c) The Ethics and Integrity Committee is also sent reports of conduct amount to breach of the Code of Ethics and Conduct, which might constitute
critical concerns, and meets to assess these reports. It also meets at least once a quarter, or whenever called by its Chairman or the Chairman
of the Board of Directors or the Chief Executive Officer. Minutes are drawn up of each meeting of the Ethics Committee, setting out the main
issues discussed and the conclusions approved. Once approved, the minutes are recorded in the minutes book, signed and available for
consultation by members of the Board of Directors, at the Company’s head office.
d) The Sustainability Forum, headed by the Chief Executive Officer, monitors critical concerns expressed in the course of Forum meetings. Minutes
are drawn up of each meeting of the Sustainability Forum, setting out the main issues discussed and the conclusions approved. Once approved,
the minutes shall be recorded in the minutes book, signed and distributed to all members of the Board of Directors.
e) The Environmental Council, appointed by the Board of Directors, deals directly with the Navigator Group's business divisions, through meetings
at industrial sites, in the main forestry plantations and at the Group's research institute, RAIZ.
Further information in sections 50-55, Corporate Governance Report | Part III – Internal Control and Risk Management.
2-17 Collective knowledge of highest governance body
Chap. 6.2.1 Sustainability Governance
The members of the Board of Directors (BD) and the Executive Board (EB) have powers and are responsible for decision-making processes relating to
all sustainability issues, and not merely the Annual Report. Internal divisions report all matters relating to sustainability to the EB. In addition, the
Environmental Council and the Sustainability Forum discuss issues included within this topic and report to the EB and the BD.
Training was provided in 2023 for directors on ESG (Environmental, Social and Governance) requirements.
2-18 Evaluation the performance of the highest governance body
The Board of Directors conducts an annual self-evaluation and is also evaluated by the Remuneration Committee, which verifies whether and to what
extent the members of the BD (and EB) have attained their specific targets.
The performance assessment for each executive director follows an internal process structured under the leadership of the respective manager (i.e. the
person heading the team, in the case of members of Executive Board, and led by the Chairman of the Board of Directors, in the case of the Chief
Executive Officer), with the participation of the non-executive directors as the manager responsible sees fit.
The basic criteria for assessing the performance of executive directors (in force 2023-2025) are those defined in item 2.2 of chapter 2 of the
Remuneration Policy for setting the variable remuneration component. These criteria are applied by using a system of qualitative and quantitative KPIs,
related to the performance of the Company and the director in question. The most important of these general business indicators are EBITDA (with a
35% weighting), net income (10% weighting), cash flow (10% weighting) and Total Shareholder Return vs. Peers (10% weighting). In terms of
behavioural skills, importance it attached to each director’s alignment with the Company's long term interests and sustainability.
In addition to these criteria, in line with the commitments made by the Company in its sustainability strategy, and in recognition of the importance of
efficient use of energy and the need to reduce emissions of fossil CO
2
from business operations, the weighting also takes into account implementation
of the corporate programme for energy efficiency, approved in 2016. This means that the specific aims will always include ESG indicators, such as the
results of the annual organisational climate in the Company, reduction of CO
2
emissions, certified wood and consumption of water, energy and wood.
Assessments of Executive directors and also the self-assessment of the Board of Directors and its committees were undertaken in 2023, in relation to
performance in 2022, and will take place in 2024 in relation to performance in 2023.
Further information in sections 24-25, Corporate Governance Report | Part I - Information on Shareholder Structure, Organisation and Corporate
Governance | A. Shareholder Structure | 1.1.2 Holdings of Shares and Bonds
Annual Report 2023 · Management Report 307
2-19 Remuneration policies
Chap. 6.2.1 Sustainability Governance
The way in which the remuneration of company officers was structured and the basis for the performance evaluation of the executive directors in 2023
was in line with the model and principles - duties performed, the economic situation of the company and market criteria - stated in the Remuneration
Policy (2021-2024) for Navigator's directors and auditors, in particular in chapters III, IV and V, to which reference is made.
The remuneration system in place at Navigator guarantees its business strategy and also the long-term alignment of directors' interests with those of
the company and its sustainability, in particular because this remuneration is designed to be fair and equitable under the principles stated and because
it creates a link between directors and results through a variable remuneration component in which profits are the primary factor, whilst also taking
into account the behavioural skills of each director, and their alignment with the company's long term interests and sustainability.
Detailed information in Remuneration Policy drawn up by Remuneration Committee and approved at the annual General Meeting in May 2023. Read at:
https://www.thenavigatorcompany.com/var/ezdemo_site/storage/original/application/6dc99aa6e4043503620f263494fa98a2.pdf
Further information in Section 70, Corporate Governance Report | Part I - Information on Shareholder Structure, Organisation and Corporate
Governance | D. Remuneration | III. Remuneration structure
2-20 Process to determine remuneration
The Remuneration Committee is a committee comprising independent members, who draw up the proposed Remuneration Policy. This policy is
approved annually, at the general meeting, in accordance with the applicable law. The outcomes of all votes at the general meeting are published on
the Company website, including those on the remuneration policy. The positions and votes of each shareholder are not disclosed.
At the 2023 General Meeting, the remuneration policy was approved by 530,116,401 votes in favour, corresponding to 97.67% of the capital present or
represented, with 12,673,205 votes against, corresponding to 2.33% of the capital present or represented, with the abstention of shareholders present
or represented holding 25,035 votes.
Further information in Sections 66 and 67, Corporate Governance Report | Part I - Information on Shareholder Structure, Organisation and Corporate
Governance | D. Remuneration | II. Remuneration Committee
Remuneration Policy approved at GM:
http://www.thenavigatorcompany.com/Investidores/Assembleias-Gerais
http://www.thenavigatorcompany.com/var/ezdemo_site/storage/original/application/9799f2a25b850530e95ef5bd83bc3cd4.pdf
Information published on Navigator website:
http://www.thenavigatorcompany.com/var/ezdemo_site/storage/original/application/8632d5ee1fd19f732fe3d631507c9443.pdf
2-21 Annual total compensation ratio
In Portugal, the ration of the total annual compensation for the best paid individual to the median of total compensation for all other Employees is
37.40. There was no change in 2023 in the annual compensation of this individual, in relation to the remuneration of the other Employees.
It was not possible to calculate this indicator for other geographical regions, but there are plans to align methodologies in future.
STRATEGIES, POLICIES AND PRACTICES
2-22 Statement on sustainable development strategy
Chap. 1.1 Message from the Chairman
Chap. 1.2 Message from the Chief Executive Officer
Chap. 6.2.4 Our 2030 Agenda and Roadmap
2-23 Policy commitments
Chap. 6.2.1 Sustainability Governance
Chap. 6.2.4 Our 2030 Agenda and Roadmap
Chap. 6.5.1 Responsible business conduct
Our commitments are set out in the Group’s internal documents, which are approved by the Board of Directors or the Executive Board, taking into
account their respective spheres of competence under the Internal Regulations.
Once approved, these documents are communicated to all Employees, business partners and other stakeholders, through publication on the website
and the intranet, in management reports and specific contractual clauses; their content is explored in training, aimed at all Employees, irrespective of
location or position.
The precautionary principle is integrated with risk management and included in the Environmental Policy, Detailed information on risk management,
available in Section 50, Corporate Governance Report | Part I - Information on Shareholder Structure, Organisation and Corporate Governance | C.
Internal Organisation | III. Internal Control and Risk Management.
Annual Report 2023 · Management Report 308
2-24 Embedding policy commitments
Chap. 6.2.1 Sustainability Governance
Chap. 6.2.4 Our 2030 Agenda and Roadmap
Chap. 6.5.1 Responsible business conduct
The commitments to responsible business conduct are made out in the various Group Codes and Policies and have been adopted by the Board of
Directors, Navigator’s governing body.
In order to implement these Codes and Policies for responsible business conduct, Navigator has implemented an effective and efficient governance
model for the compliance system, which clearly identifies the powers of the different parties involved in the business processes and fosters appropriate
coordination and communication between them, on the basis of simple processes and procedures guided by corporate goals, in order to avoid red tape
and a loss of speed and flexibility in doing business.
The structure and organisation of the Navigator Group's compliance system is based on coordinated action by the functional units in the Group’s
internal structure, articulated with the management and supervisory bodies and in keeping with generally accepted best practices, in order to support
the decision-making process.
Navigator has set up a Compliance Unit, as part of the Legal, Compliance and Public Affairs Division, responsible for implementing a compliance policy
that addresses its activities throughout the legal and regulatory value chain, in accordance with the values of transparency and fairness, in order to
prevent and combat wrongdoing.
The compliance system is intended to ensure compliance with the applicable legal requirements, reflected in the Group’s internal policies, especially as
regards preventing corruption, money laundering, terrorist financing, breach of international sanctions, conflicts of interests, protection of human rights
and protection of personal data, and also to strengthen the ethical culture of the Company and many of its Stakeholders, in particular, officers,
Employees and Suppliers, through promotion of training and communication initiatives concerning matters of legal compliance and ethical conduct.
Navigator has a Code of Conduct for Suppliers, addressing topics such as prevention of corruption and bribery, respect for human rights, employment
practices, health and safety and environmental practices. This Code is distributed to all materially relevant Suppliers and made available in all
consultation procedures.
Compliance clauses were drafted in 2023 which establish obligations for Navigator’s counterparties on matters of money laundering, preventing
corruption, human rights and international sanctions.
In 2023, Navigator implemented a Third-Party Integrity Verification System, enabling it to assess counter party risk through due diligence procedures,
with a view to preventing corruption and money laundering, violations of international sanctions and Human Rights.
Navigator offers a range of training on Ethics and Integrity for all its Employees, designed to stress the importance of the rules established in the Code
of Ethics and Conduct and other internal regulations addressing issues of Human Rights, Whistleblowing and Fair Competition. In 2023, it developed
training on Prevention of Corruption and Related Offences, laying down guidelines for ethical and transparent conduct, in keeping with the fundamental
principles set out in the internal policies governing Navigator’s operations, in particular the Corruption Prevention and Related Offences Policy, Policy for
Compliance with International Sanctions and Restrictive Measures, Policy for the Prevention of Money Laundering and Financing Terrorism, the Third-
Party Integrity Verification Policy and policy documents on the issue of conflicts of interests.
2-25 Processes to remediate negative impacts
Chap. 6.2.6 Stakeholder Engagement
Chap. 6.3.3 Sustainable forestry management and conserving biodiversity
Chap. 6.5.1 Responsible business conduct
Navigator has established policies and procedures to ensure appropriate communication between the Company and its Stakeholders. The
communication channels that affected Stakeholders can use, for remediation of the negative impacts of these operations, include The Navigator
Company’s official website and the Whistleblowing Channel. In the event of negative impacts resulting specifically from out forestry operations, any
Stakeholders affected can also approach Company Employees, or contact us by email or telephone:
[email protected]; Tel. 265 709 000.
The Whistleblowing channel is a means for communicating irregularities, managed by an external entity on behalf of Navigator and intended for reports
from Employees, Suppliers, Customers, Service Providers, Local Communities or any other interested parties, as established in the Whistleblowing
Regulation. It can be accessed online or on the Company intranet and guarantees anonymity, confidentiality, safeguarding and non-retaliation in
dealings with reporters, whilst also complying with all data protection and information security standards.
In order to follow up the reports received, Navigator has a multidisciplinary team appointed by the Whistleblowing Committee, comprising the Director
of Legal, Compliance and Public Affairs, the Risk Management Director and the Compliance Officer. In cases where the report may relate to any
member of this committee, it is forwarded to the Audit Board.
The investigation either concludes that there is no real issue, and so is closed, or else it proposes application of measures appropriate to the irregularity
in question, in a report to the Executive Board and the Audit Board, or else to the Board of Directors when the measures to be applied lie outside the
powers of the Executive Board. If situations with negative impacts are confirmed, the necessary measures are adopted to correct the situation and
avoid similar situations recurring.
The procedures undertake to remedy negative impacts are described over the course of the 2023 non-financial reporting, in the response to each of the
material topics, describing the actions and initiatives taken to manage and remedy the impacts resulting from its activity.
2-26 Mechanisms for seeking advice and raising concerns
Annual Report 2023 · Management Report 309
Chap. 6.5.1 Responsible business conduct
Navigator has implemented a Whistleblowing Channel allowing for irregularities to be reported by Employees, Suppliers, Customers, Service
Providers, Local Communities or any other interested parties, as established in the Whistleblowing Regulation. The issues to be reported through this
channel include breach of rules of good conduct or ethics, fraud, corruption and related offences, discrimination, bullying and harassment, Human
Rights and employment rights, protection of privacy and personal data, health and safety, and environmental protection. In other words, it is intended
in general for reporting of breaches of the rules established in the Code of Ethics and Conduct and other internal regulations, as well as non-compliance
with the legislation and external regulations to which Navigator is subject. It can be accessed through the Company website intranet and guarantees
anonymity, confidentiality, safeguarding and non-retaliation in dealings with reporters, and also compliance with all data protection and information
security standards, as stipulated in the Whistleblowing Regulation.
In order to follow up the reports received, Navigator has a multidisciplinary team appointed by the Whistleblowing Committee (WC), comprising the
Director of Legal, Compliance and Public Affairs, the Risk Management Director and the Compliance Officer. In cases where the report may relate to any
member of this committee, it is forwarded to the Audit Board. In any case, under the Whistleblowing Regulation, any persons with an interest
conflicting with the situation reported are excluded from the investigation and decision-making process, so as to ensure that reports are received,
sorted, analysed and closed independently, autonomously and impartially.
The Audit Board must be informed of all communications of irregularities received and, whenever they involve a member of the Board of Directors or
Audit Board, the Ethics Committee must also be informed, as required by the Whistleblowing Regulation.
The investigation either concludes that there is no real issue, and so is closed, or else it proposes application of measures appropriate to the irregularity
in question, in a report to the Executive Board and the Audit Board, or else to the Board of Directors when the measures to be applied lie outside the
powers of the Executive Board. Copies of the decision to take action must be sent to the Audit Board, the Whistleblowing Committee and the Board of
Directors, except when those bodies are responsible for the decision.
This channel, managed by an external body in Navigator’s service, ensures that irregularities are reported in an effective and fast-working system, able
to detect, investigate and resolve them, in line with the rules of conduct established by Navigator and the applicable legislation (Law 93/2021, of 20
December, establishing the general rules on protection of whistleblowers).
2-27 Compliance with laws and regulations
No. significant occurrences
2023
2022
2021
No. significant instances of non-compliance with laws and/or regulations in reporting period
0
0
2
No. instances in which fines were incurred
0
0
2
No. instances in which non-monetary sanctions were incurred
0
0
0
Fines paid for instances of non-compliance
2023
2022
2021
Total no. of fines for instances of non-compliance with laws and regulations paid during reporting period
0
0
2
Total monetary value of fines for instances of non-compliance with laws and regulations paid during reporting period (€)
0
0
21,000
NB: The two occurrences in 2023 related to Navigator’s activities in Portugal.
Annual Report 2023 · Management Report 310
2-28 Membership of associations
Name of Association
Details of participation
AEM – Association of Portuguese Issuers of Listed Securities
Member of Management Board
AIFF - Association for the Competitiveness of Forest Based
Industries
Associate Member
AIP-CCI – Portuguese Industrial Association – Chamber of
Commerce and Industry
Associate Member
AlmaScience
Chair of General Meeting | Member of Audit Board | Instituto RAIZ - Member of Board
of Directors Associate Founding Members
APA - Portuguese Environment Agency
Associate Member
APE - Portuguese Energy Association
Member of Management Board
APIGCEE - Portuguese Association of Major Industrial Power
Consumers
Secretary of General Meeting
APIGRAF – Portuguese Association of Printers and Paper
Manufacturers
Associate Member
AISET - Setúbal Peninsula Industrial Association
Chair of General Meeting
APLOG – Portuguese Logistics Association
Associate Member
APQ – Portuguese Quality Association
Associate Member
APREN - Portuguese Renewable Energy Association
Member of Management Board
APPLSSA - Local Protected Landscape Association, Serras do Socorro
e Archeira
Member of Advisory Board
Asociación Española de Fabricantes de Pasta, Papel y Cartón
(ASPAPEL)
Associate Member
CECOLAB – Collaborative Laboratory Towards Circular Economy
Instituto RAIZ - Member of Board of Directors Founding Member
Minho-Lima Association for Forestry Certification
Member of Management Board
ASWP - Smart Waste Portugal
Associate Member
BCSD Portugal – Business Council for Sustainable Development
Chair of the Management Board
Biobased Industries Consortium
Instituto RAIZ - Associate Member
BIOND – Association of Forest-Based Bioindustries
Chair of Management Board | Chair of Executive Board | Chair of General Meeting |
Member of Management Board | Member of Audit Board
BIOREF
Instituto RAIZ – Vice-Chair of Board of Directors | Founding Associate Member
Associate Member
Associate Member
CBE – Biomass for Energy Centre
Chair of General Meeting
Centro Habitat – Sustainable Habitat Cluster
Associate Member
CEPI - Confederation of European Paper Industries
Member of Energy and Environment Committees
CIP - Confederation of Portuguese Industry
Vice-chair of National Environmental Strategy Committee and member of National
Energy Strategy Committee
Circular Bioeconomy Alliance
Associate Member
Galicia Wood Cluster
Associate Member
CPA - Aveiro Port Community
Member of Management Board
CPC – Portuguese Shippers' Council
Member of Management Board
CPFF - Figueira da Foz Port Community
Chair of General Meeting
CPS - Setúbal Port Community
Member of Audit Board
COGEN Portugal – Portuguese Association for Energy Efficiency and
the Promotion of Cogeneration
Member of Management Board
COTEC Portugal – Business Association for Innovation
Member of General Board | Member of Strategy Committee
Annual Report 2023 · Management Report 311
Name of Association
Details of participation
European Business Network (EBN)
Instituto RAIZ - Associate Member
EFI - European Forest Institute
Instituto RAIZ - Associate Member
EUROGRAPH – European Association of Graphic Paper
Producers
Board Member| Chair of the Environmental Working Group
FORESTIS – Portuguese Forestry Association
Member of the Higher Board
FpC - Forum for Competitiveness
Member of the Management Board
FSC International
Associate Member
FSC Portugal - Forest Stewardship Council
Associate Member Instituto RAIZ - Alternate Member of Audit Board
ICNF– Forestry Conservation
Instituto RAIZ - Associate Member
Institut Européen de la Forêt Cultivée
Instituto RAIZ - Associate Member
Higher Technical Institute - University of Lisbon
Instituto RAIZ - Associate Member
ISQ – Welding and Quality Institute
Member of General and Supervisory Board
IUFRO – International Union of Forestry Research Organizations
Instituto RAIZ - Associate Member
Paper Profile – Environmental Product Declaration for Paper
Associate Member
PEFC Portugal – Council for the Portuguese Forestry Sector
Chair of the Management Board
Instituto RAIZ – Member of Audit Board
Print Power Portugal
Member of Marketing Group
PRODEQ – Association for the Development of Chemical
Engineering
Instituto RAIZ - Associate Member
RELACRE - Association of Portuguese Accredited Laboratories
Instituto RAIZ - Associate Member
TECNICELPA – Portuguese Association of Cellulose and Paper
Industry Technicians
Instituto RAIZ - Associate Member
TFD - The Forest Dialogue
Member of Steering Committee
WBCSD - World Business Council for Sustainable Development
Member do Forest Solutions Group
WWF International – Forests Forward Program
Programme Member (continued Founder Member of New Generation Plantations
Platform, NGP)
STAKEHOLDER ENGAGEMENT
2-29 Approach to stakeholder engagement
Chap. 6.2.6 Stakeholder Engagement
2-30 Collective bargaining agreements
Chap. 6.4.1 Talent management and developing human capital
No. significant occurrences
2023
2022
2021
Total no. of workers covered by collective bargaining agreements
3,120
3,039
2,944
Total no. of workers
3,317
3,246
3,150
Percentage of workers covered by collective bargaining agreements (%)
94%
94%
93%
Note 1: It should be noted that a collective agreement applies at Navigator Tissue Ejea (Convenio Colectivo Estatal de Pastas, Papel y Cartón). However, we were not able, in
the reporting year, to provide consolidated data in response to this indicators, as the data is still in the process of being integrated into the Group’s internal system.
Note 2: There are no collective bargaining agreements in Mozambique.
Note 3: The figures for 2021 and 2022 were corrected due to the inclusion of Employees in Mozambique.
Annual Report 2023 · Management Report 312
GRI 3: MATERIAL TOPICS
3-1 Process to determine material topics
Chap. 6.2.3 Double Materiality
Chap. 10.2.2 GRI Correspondence Tables
3-2 List of material topics
Chap. 6.2.3 Double Materiality
As a result of the double materiality process, 15 material topics were identified, of which 6 topics are considered strategic for Navigator and 9 topics are
considered relevant.
Material Topics
• Creating sustainable value
• Responsible governance (encompasses the topics of diversity,
equity and inclusion, human rights, ethics and transparency, and
risk management and business continuity)
• Bioproducts
• Innovation, technology and R&D
• Health, safety and well-being
• Supply chain management
• Customer Management
• Community relations
• Talent management and development of human capital
• Climate change and CO
2
sequestration
• Water management
• Sustainable forest management
• Energy and raw material management
• Biodiversity conservation
• Circular economy
3-3 Management of material topics
Chap. 6.2.3 Double Materiality
Chap. 6.2.4 Our 2030 Agenda and Roadmap
Chap. 10.2.2 GRI Correspondence Tables
The material topics are expressed as corporate goals which take material form in the aspirations set out in our 2030 Agenda and Roadmap, a tool which
permits the Company to guide its course over the decade 2020-2030, contributing to creation of sustainable value.
The sub-chapters for each material topics present information on its relevance to The Navigator Company and our Stakeholders, as well as on the
approach taken (including policies and commitments made, reflecting the way the Company is managed. They also present a selection of specific action
taken, such as projects, programmes and initiatives, which we describe in some detail, in order to illustrate the management approach in the area,
promoting positive impacts and minimising negative impacts, whenever applicable.
At The Navigator Company we conduct regular monitoring and assessment of our performance on each of the goals, targets and indicators associated
with the material topics and established in the 2030 Roadmap. In order to assess the effectiveness of the management approach and the associated
impacts, we also have the findings of audits (internal and external), as well as the assessment of action taken to address risks and opportunities,
feedback from Stakeholders and external performance ratings.
GRI 200: ECONOMIC PERFORMANCE
GRI 201: ECONOMIC PERFORMANCE
201-1 Direct economic value generated and distributed
Chap. 5 Creating sustainable value
Chap. 9.1 Our performance (Economic Indicators)
Annual Report 2023 · Management Report 313
Thousand euros
2023
2022
2021
I) Direct Economic Value Generated
2,033,559
2,535,783
1,627,251
II) Direct Economic Value Distributed
(1)
1,848,089
2,122,950
1,370,996
Operating costs
1,294,457
1,514,271
1,077,385
Employee pay and benefits
171,127
185,194
153,970
Payments to capital providers
219,305
356,967
117,343
Taxes
(2)
161,741
64,765
20,650
Investments in the Community
1,459
1,752
1,649
III) Accrued Economic Value (I-II)
185,470
412,834
256,254
(1)
In 2021, the figures were revised due to alteration in employee salaries and benefits account.
(2)
Change in reporting methodology for “taxes” in order to be consistent with Navigator's “Tax footprint”, moving away from the previous approach centred on cash and
corporation tax. The values considered were the final values stated in IRC Form 22, in 2020.
NB: The figures for 2021 were corrected from those published in the 2021 Sustainability Report, as follows: the direct economic value generated and the value of taxes for
2021; and the values of Employee pay and benefits, payments to capital providers and investment in the Community relating to 2021. The accumulated economic value for
2021 was consequently also corrected for both years.
201-2 Financial implications and other risks and opportunities due to climate change:
Chap. 10.6. Alignment with TFCD recommendations (Task Force on Climate-related Financial Disclosures)
Chap. 9.1 Our performance (Economic Indicators)
Financial implications of climate change
2023
2022
2023
Number of CO
2
emission licenses (unit)
494.850
574,122
620,805
Market value (thousands euros)
38,628
46,785
50,068
Navigator drew up a decarbonisation plan in 2019. This was the Roadmap for Carbon Neutrality, which established the aim of achieving carbon
neutrality by 2035 at its industrial complexes and is one of the Company's tools for mitigating and adapting to the impacts of climate change on
business. This plan involves total investment of 154 million euros and will cut direct emissions from the complexes by 86%, enabling the Company in
the long term to reduce the financial impact of acquiring emission licences. Alongside this, some of our funding arrangements are tied to our ESG
performance, entailing financial consequences for the Company from the evolution of these indicators. One of the indicators considered is the reduction
of direct (i.e. scope 1) carbon emissions.
In 2022, Navigator embarked on a project to implement the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD) and
designed a roadmap for the years ahead. The progress made in 2023 is reported in Annex 10.6.
201-3 Defined benefit plan obligations and other retirement plans
Chap. 5 Creating sustainable value
Chap. 6.4.1 Talent management and developing human capital
Employees of Group companies based in Portugal are entitled to a complementary retirement pension (old age or invalidity) and, in the event of death
while still actively in employment, a survivor’s pension; these are awarded under defined benefits plans or defined contribution plans. The plans are
funded through a closed-end Pension Fund, managed by an external body, which subcontracts management of their assets from external asset
managers. In the case of defined benefit Pension Plans, the Group is liable to defined benefit plans for a small group of Employees who opted to stay in
the Defined Benefit Plan or who, having converted their plan to a Defined Contribution Plan, opted to maintain a safeguard clause. In practice, the
safeguard clause entitles the Employee to opt, on retiring, for payment of a pension as envisaged in the Defined Benefit Plan. For those opting to
trigger the safeguard clause, the amounts accumulated in the Defined Contribution plan will be use to fund the liability of the Defined Benefit Plan. In
the case of defined contribution Pension Plans, at 31 December 2023 three Defined Contribution plans were in force for the benefit of employees, in
which the Pension Fund assets funding these plans are under the management of AGEAS – Pensions, Schroders, Santander AM and Julius Baer.
Further information in the 2023 Consolidated Financial Statements | 7. Personnel – 7.2. Employee Benefits
201-4 Financial assistance received from government
Chap. 9.1 Our performance (Economic Indicators)
Thousand euros
2023
2022
2021
Financial assistance received from government
16,781
16,405
7,824
Tax Incentives / Credits
(1)
1,701
2,557
5,121
Subsidies
12,280
12,314
143
Support for research and R&D
2,800
1,533
2,560
(1)
The figure for 2023 corresponds to an estimate of the expected value of tax benefits deductible that year.
Annual Report 2023 · Management Report 314
GRI 202: MARKET PRESENCE
202-1 Ratios of standard entry level wage by gender compared to local minimum wage
Chap. 9.1 Our performance (Economic Indicators)
Ratio of standard entry level wage to local minimum wage (%)
2023
2022
2021
Portugal
Men
1.09
1.13
1.07
Women
1.09
1.13
1.07
Mozambique
Men
1.00
1.00
1.00
Women
1.00
1.00
1.00
Note 1: In Portugal, Navigator has no Employees on the national minimum wage, and entry-level pay is set higher. In 2021, the entry-level salary for was 712 €, as compared
to national minimum wage of 665 €. In 2022, the entry-level salary for was 795 €, as compared to national minimum wage of 705 €. In 2023, the entry-level salary for was 825
€, as compared to national minimum wage of 760 €.
Note 2: The minimum wage in Mozambique depends on the industrial sector, and when converted into euros is adjusted to the exchange rate in December of the year in
question.
Note 3: It was not possible to calculate this indicator for other geographical regions, but there are plans to align methodologies in future.
GRI 203: INDIRECT ECONOMIC IMPACTS
203-1 Infrastructure investments and services supported
Chap. 6.3.3 Sustainable forestry management and conserving biodiversity
Chap. 6.4.3 Community relations
In Portugal, in order to mitigate the impacts of fires for Navigator and local Communities, we invest in prevention, helping to ensure woodlands become
more resilient to this issue. Work we carry out on a regular basis:
• Maintenance of paths and fire breaks;
• Control of vegetation;
• Reduction of fuel load and creating areas to halt the spread.
Our resources are deployed with Afocelca, an organisation through which The Navigator Company and the Altri Group join forces to support fire fighting
efforts, with its own Special Rural Fire-Fighting Brigade. We also provide support for the recovery of burned areas, by taking part in the pilot recovery
programme organised by Biond (Forest Fibers from Portugal).
Investment in infrastructures and services for forest fire defence (Million euros)
2023
2022
Portugal
Afocelca Activities
2.60
2.40
Clearance and vegetation control activities
6.52
1.97
Maintenance of paths and fire breaks
0.087
0.36
Subtotal
9.21
4.73
Mozambique
Human resources, fire-fighting resources and protective equipment
0.14
-
Harrowing, path maintenance, controlled burning
0.66
-
Subtotal
0.80
-
Total
10.01
-
Reference is also made to the amounts corresponding to investment in the Community, presented in indicator 201-1.
Donations of paper are one of Navigator’s most direct ways of supporting communities, making a material contribution to the smooth administrative
workings of the institutions in question, in the areas where the Company operates, such as schools and civil parish councils. In 2023, paper donations
in Portugal totalled 44.6 tons, representing investment of 60,600 euros. Plants from our Aliança Nurseries are another important way in which we
support Communities. In 2023, 2,740 tree and shrubs of 16 different species were donated to four organisations, namely the Miyawaki Woods of the
Polytechnic Institute of Setubal (IPS), the Sarrazola Park of Cacia Civil Parish Council, the World Youth Days and the Association for Wildlife Protection
in the Serra da Estrela.
Investment through the Portucel Moçambique Social Development Programme (PDSP) in 2023 totalled 600 thousand euros, in the areas of food
security, promotion of livestock and fish farming, income generations and improved quality of life for Communities through access to drinking water,
renewable energy, rehabilitation of schools, support for construction of hospital facilities, construction and rehabilitation of access roads and bridges.
Infrastructure work included improvement/construction of bridges and aqueducts, with a value of 119 thousand euros in 2023. Agricultural extension
work included implementing 14 school vegetable gardens, in order to encourage students to grow food, and the produce obtained was used for
distribution at the schools themselves. Purchases of constructions materials (such as cement, roof sheeting, beams, paint and doors) for schools in the
two provinces totalled 14 thousand euros.
203-2 Significant indirect economic impacts
Chap. 5 Creating sustainable value
GRI 204: PROCUREMENT PRACTICES
Annual Report 2023 · Management Report 315
204-1 Proportion of spending on local Suppliers
Chap. 6.5.4 Supply chain management
Chap. 9.1 Our performance (Economic Indicators)
Expenditure on local suppliers
2023
2022
2021
Total no. of Suppliers
7,490
7,303
7,172
Local suppliers (%)
(1)
73
73
74
Total expenditure on Suppliers (thousand euros)
(2)
1,793,052
1,934,460
1,382,341
Expenditure on local Suppliers (%)
74
72
74
(2)
Suppliers in Portugal.
(2)
Includes VAT, unlike the figures for operational costs reported under indicator GRI 201-1. Expenditure is consistent with the Statement of Cash Flows and the accounts.
GRI 205: ANTI-CORRUPTION
205-1 Operations assessed for risks related to corruption
In the reporting period, 15 specific operations were submitted for assessment of corruption risks.
Operations are considered to be the departments of the organisation involved in processes of hiring, payments or institutional relations, identified in the
Risk Prevention Plan for Corruption and Related Infractions, in accordance with the criteria relevant to corruption risk.
Significant risks are deemed to be those identified in the Risk Prevention Plan for Corruption and Related Infractions as “high” or “critical”. No
significant corruption risks were identified in 2023.
205-2 Communication and training about anti-corruption policies and procedures
Chap. 6.5.1 Responsible business conduct
2023
No. of Employees to
whom communicated
Total no. of
Employees
%
Communication of Anti-Corruption Policies
Top Management
34
34
100
Senior Management
691
691
100
Middle Management
484
484
100
Operatives
2,108
2,108
100
Trainees
113
113
100
Total
3,430
3,430
100
Anti-Corruption Training
Top Management
21
34
62
Senior Management
545
691
79
Middle Management
383
484
79
Operatives
1,210
2,108
57
Trainees
68
113
60
Total
2,227
3,430
65
Our Corruption Prevention and Related Offences Policy is that communicated to all Employees, business partners and other stakeholders through
publication on the Company’s websites and intranet.
In addition, the Navigator Group offers a series of training options on Ethics and Integrity. These are available to all Employees, irrespective of site or
duties, in an e-learning format, on the online platforms. A specific training course in Prevention of Corruption and Related Offences was developed in
2023.
Annual Report 2023 · Management Report 316
205-3 Confirmed incidents of corruption and actions taken
Chap. 6.5.1 Responsible business conduct
2023
2022
2021
Total no. confirmed incidents of corruption
0
0
0
Total no. of confirmed incidents in which Employees were dismissed or disciplined
due to corruption
0
0
0
Total no. of confirmed incidents in which contracts with business partners were
terminated or not renewed due to violations caused by corruption
0
0
0
Confirmed cases of corruption are established through the receipt, analysis and investigation of reports through the Whistleblowing Channel. Reports
are processed as established in the Whistleblowing Regulation and responsibility for the procedure lies with the Whistleblowing Committee.
Following on from events in 2020 and 2021, borne out by the criminal investigation in 2020 into alleged corruption in wood reception activities at one
of our production centres, leading to dismissal of the employees involved, judicial proceedings are still in progress in the labour and criminal courts. As
a result of that investigation, Navigator continued in 2023 to follow through the cases in the labour courts where 28 workers allege unfair dismissal; no
further progress has been made in these proceedings. At the same time, in the criminal courts, Navigator, as a civil party, has followed the finding of
facts, which led to confirmation that the case will proceed to trial.
GRI 206: ANTI-COMPETITIVE BEHAVIOUR
206-1 Legal actions for anti-competitive behaviour, anti-trust and monopoly practices
Chap. 6.5.1 Responsible business conduct
The United States Department of Commerce brought anti-dumping proceedings against Portugal (in this particular case against The Navigator
Company, S.A., as the only Portuguese manufacturer), which started on 21 January 2014 when a group of US office paper manufacturers and a group
of industry trade unions submitted a complaint leading to investigation of alleged dumping practices in imports of paper in different formats from five
countries - Australia, Brazil, China, Indonesia and Portugal.
As a result of these proceedings, Portuguese exports to the United States of certain types of paper marketed by Navigator are now subject to an anti-
dumping duty. A deposit is first made with the customs authorities, which is then subject to adjustments, in line with the latest decisions published by
the Department of Commerce.
In mid-2022, the final rate for the 5
th
review period (2020-2021) was set at 5.81%. The definitive setting of this rate led Navigator to pay additional
amounts on top of the deposits initially made, in a process completed in March 2023. In August 2023, the preliminary rate for the 6
th
review period
(2021-2022) was set at 7.11%. This is also the rate that is being used for deposits that Navigator has to make on each import operation, albeit subject
to subject adjustment, in line with the effective rates calculated in subsequent periods.
GRI 207: TAX
207-1 Approach to Tax
Chap. 4.10 Navigator Group tax policy
Our tax policy is aligned with the Group's business development strategy, meaning that the policy reflects the economic substance of our activities. For
this reason, the group's transactions are treated for tax purposes in keeping with its business activities, and the fiscal implications of those transactions
are just one of many economic factors to be considered in management decisions at the Navigator group. This policy is assessed annually by the
Executive Board and the Board of Directors. Compliance is guaranteed and monitored through regular meetings with the CFO (Chief Financial Officer) to
look at implementation of the tax policy.
207-2 Tax governance, control, and risk management
Chap. 4.10 Navigator Group tax policy
Responsibility for compliance in tax policy is taken primarily by the CFO, acting jointly with the Division responsible for identifying the Company's
general risks and for regular monitoring in conjunction with the Tax Affairs Division The CFO's office conducts a regular assessment, and the Board of
Directors undertakes an annual review. Management is based on the preparation of memoranda for analysis of materially relevant transactions, and on
internal review of periodic tax returns, in order to check compliance with the Company's tax policy. These procedures are reported to the CFO and to
the Division responsible for internal auditing of the Company.
Annual Report 2023 · Management Report 317
207-3 Stakeholder engagement and management of concerns related to tax
Navigator takes a pro-active stance in its dealings with the Tax Authority (TA), pursuing dialogue, in particular with staff in the Major Taxpayers Unit (in
relation to inspections and to judicial proceedings). It applies to the authority for binding information on matters where the application of tax legislation
is not clear. Company Employees also take an active part in organisations such as the Major Taxpayers Forum, organised by the TA, and in a number of
associations and the respective taxation sections (such as Business Roundtable Portugal, the Issuers Association [AEM] and the Portugal Fiscal
Association), as well as in academic initiatives, as both speakers and participants (such as IDEFF, at the Lisbon Law Faculty, Católica Tax, at the
Portuguese Catholic University, and, at international level, WU Wien) and professional associations such as the Portuguese Fiscal Association (with
active participation on its management committee and in its online magazine). Closeness to these Stakeholders makes it possible to debate and
develop the Company's tax strategy.
207-4 Country-by-country reporting
Chap. 4.9 Contribution to State tax revenues
Chap. 4.10 Navigator Group tax policy
Navigator's business model is based on production operations in Portugal and the sale of its products from Portugal. The Company has a network of
sales subsidiaries in several countries, allowing it to provide Customer assistance in a series of international markets. Navigator is a Company of
structural importance to Portugal's economy, meaning that this model entails it being subject to a variety of taxes, contributions and levies in Portugal,
with a significant impact at national level, to the benefit of the Portuguese State.
Further information on our tax footprint: Consolidated Financial Statements | 6. Corporation tax
GRI 300: ENVIRONMENTAL PERFORMANCE
GRI 301: MATERIALS
301-1 Materials used by weight or volume
Chap. 6.3.5 Use of resources and circular economy
Chap. 9.2 Our Performance (Environmental Indicators - Materials)
2023
2022
2021
Raw materials (t)
4,714,216
5,156,843
5,064,915
Renewable
(1)
4,251,275
4,619,939
4,558,516
Non-renewable
(2)
462,940
536,904
506,399
(1)
Renewable materials comprise: wood; starch; eucalyptus fibre; long fibre; recycled fibre; and packaging paper.
(2)
Non-renewable materials comprise chemicals (i.e. sodium hydroxide, sodium chlorate, sulphuric acid and others).
NB: The 2023 figures include Navigator's operations in Portugal and Spain (Ejea). Those for previous years include only Portugal.
2023
2022
2021
Renewable raw materials (%)
90
90
90
301-2 Recycled input materials used
Chap. 9.2 Our Performance (Environmental Indicators - Materials)
2023
2022
2021
Recycled materials (%)
0.00
0.01
0.02
Note 1: The calculation considers the quantity of recycled fibre as a proportion of total fibre used.
Note 2: The 2023 figures include Navigator's operations in Portugal and Spain (Ejea). Those for previous years include only Portugal.
Annual Report 2023 · Management Report 318
GRI 302: ENERGY
302-1 Energy consumption within the organization
Chap. 6.3.2 Climate change
Chap. 9.2 Our performance (Environmental Indicators – Energy)
2023
2022
2021
Energy consumption within the organization (GJ)
39,746,832
41,165,471
41,246,701
Primary energy from non-renewable sources
7,788,102
9,825,584
9,811,472
Primary energy from renewable sources
31,688,941
31,802,148
31,962,573
Electricity acquired for consumption
5,400,128
4,910,655
4,651,165
Electricity sold
5,130,339
5,372,917
5,178,509
Renewable primary energy consumed (%)
2023
2022
2021
Portugal
81
76
77
Spain
0
-
-
Total
80
76
77
Note 1: Since 2021, renewable primary energy consumed has included power produced by solar facilities.
Note 2: As from 2022, energy figures now include consumption of petrol and propane at other Company facilities, as well as fuel for the vehicle fleet.
Note 3: The 2023 figures include Navigator's operations in Portugal and Spain (Ejea). Those for previous years include only Portugal.
302-2 Energy consumption outside of the organization
It was decided to discontinue reporting of this indicator, in the light of reflection after the new materiality analysis; it is deemed that the relevant
information is already being calculated and monitored through indicator 305-3, on scope 3 greenhouse gas emissions, in line with the goals of reducing
the Company's carbon footprint.
302-3 Energy intensity
Chap. 6.3.2 Climate change
Chap. 9.2 Our performance (Environmental Indicators – Energy)
Energy intensity
2023
2022
2021
Energy intensity per ton output (GJ/t produced)
(1)
Portugal
12.9
12.0
12.5
Spain
5.2
-
-
Total
12.8
12.0
12.5
Energy intensity by turnover (TJ/M€)
(2)
23.0
18.9
29.1
Note 1: The calculation of energy intensity took into consideration consumption by primary resources (excluding primary energy from Biomass Power Plants - BPP) and the total
quantity of products manufactured. The energy used by BPPs is included in total energy consumed, but these figures are not included in the calculation of energy intensity,
because that consumption is not allocated to the production process.
Note 2: The calculation of energy intensity by turnover took into consideration energy consumption by primary sources and the electricity acquired. The 2023 figures include
Navigator's operations in Portugal and Spain (Ejea). Those for previous years include only Portugal.
302-4 Reduction of energy consumption
Chap. 6.3.2 Climate change
Chap. 9.2 Our performance (Environmental Indicators – Energy)
2023
2022
2021
Reduction of energy consumption (GJ)
5,604
65,682
51,184
Note 1: Calculation of reductions in energy consumption is based on energy efficiency projects concluded in 2023. Figures are calculated for one year of operation, on the basis
of project information, using a methodology validated in connection with the Energy Management System certified under ISO 50001.
Note 2: The figures include only Navigator's operations in Portugal.
GRI 303: WATER AND EFFLUENTS
303-1 Interactions with water as a shared resource
Chap. 6.3.4 Water consumption
Over the course of its history, Navigator has had a clear commitment to managing water resources, both in the scale of its water intake and in the
quality of the water discharged.
Navigator’s water intakes are licensed by the National Water Resources Authority, and water is withdrawn in strict compliance with the upper limits
authorised. It should be noted that in Setúbal the intake is managed from a network of 23 boreholes, operated with assistance from a specialist hydro-
geology firm, in order to minimise pressure on this resource and the consequent environmental impact of these intakes. Navigator has established a
Annual Report 2023 · Management Report 319
wide-ranging system for monitoring and controlling its used of this resources at all phases of the production process, so as to keep checks on quality
and conduct systematic reassessments of the potential for reuse in different processes. The water disposed of in each process undergoes treatment
(primary, secondary and sludge treatment), minimising the potential impacts of discharge in the environment. The water used in production processes
is drawn not just from intakes, but also from the raw and subsidiary materials, including wood and chemicals. The water used is returned to nature in
the form of water vapour and treated effluent, but wastes, products and by-products also contain significant volumes of water. Navigator monitors the
availability of water resources on a systematic basis, in its intake areas; the situation currently inspiring the greatest concern is the occasional scarcity
of water in the River Tagus. It should be noted that Navigator Tissue Ródão does not withdraw water directly, and water is instead supplied by Biotek
S.A. - an ALTRI group company. As well as supplying pulp for producing tissue paper, Biotek withdraws and treats water from the River Tagus,
supplying treated water to Navigator Tissue Ródão.
At the Vila Velha de Ródão mill, where only tissue paper is produced, the treated effluent is returned to the River Tagus.
The Aveiro and Figueira da Foz mills discharge their treated effluents through outfalls in the Atlantic Ocean, at 3 and 2.5 km from the coast
respectively, whilst Setúbal releases its effluents in the Sado estuary, in an area significantly influenced by tidal currents, ensuring that the effluent is
duly dispersed in the water.
The impacts of climate change on water are felt both on the supply side, and also in demand. As regards supply, climate change has brought
alterations to rainfall patterns, leading to changes in the volume and availability over time of surface and ground water. On the demand side, there
have been changes in volumes consumed by different activities, and changes to the distribution of this consumption over time. Navigator has
established commitments and targets for water use in its 2030 Roadmap. In view of the specific features of each plant, an organisational structure has
been set up which oversees, promotes and provides the human, technical and financial resources needed for:
• Identification of water reduction/reuse measures in each process and at each plant;
• Technical and financial assessment of the measures identified, prioritised on a value-for-money basis;
• Planning and scheduling of the measures for implementation at each plant, each year;
• Execution of measures and assessment of impact (real gain);
• Adjustments to plan as originally established, tailoring the reduction measures to the proposed goals.
As a company certified under ISO 14001 and 9001, Navigator sets high standards for approval of its Suppliers of raw materials and consumables.
Qualification is followed by a performance assessment, seeking to encourage Suppliers to adopt better performance on various environmental issues,
including management / use of water resources. The selection criteria for Suppliers include the best environmental performance in terms of both
consumption and also emissions into water and into the atmosphere. This enables Navigator to continue using the European Union Ecolabel for its UWF
and tissue products.
Navigator also works to raise the environmental awareness of its stakeholders, including its customers, with a view to better use of resources,
protecting the environment and mitigating adverse impacts, in particular those associated with climate change.
In its forestry operations, in order to preserve water resources, improve conservation of habitats and the services provided, Navigator follows a series
of good forestry management practices applied on two fronts - protection and rehabilitation/restoration, and maintenance. These two fronts are based
on the precautionary principle, and general care has to be taken in work nearby or in protection strips for water courses, by implementing mitigation
measures during the forestry operations.
Current R&D activities include drip fertigation trials, seeking to find solutions to mitigate wood yield losses in areas where water is scarce, through
more efficient water use. It is important to note that these field trials comply with the specific legislation and may be interrupted in the event of
extreme drought. At Viveiros Aliança, the various irrigation methods (mainly sprinklers) are being changed to drip irrigation, to minimise water losses
and cut consumption. In Mozambique, the drilling of boreholes for water and the repair of others (constructed by the government and/or other
partners, which since stopped working) has made drinking water available to a large number of families and other individuals who no longer have to
take water from rivers, with high levels of coliform bacteria. This in turn means they no longer need to boil the water, and so consume less timber from
native woodlands.
303-2 Management of water discharge-related impacts
Chap. 6.3.4 Water consumption
At all The Navigator Company's industrial units, effluents undergo treatment at the facility's own IWWTPs (Industrial Waste Water Treatment Plants),
except at Navigator Tissue Ejea, where effluent is treated in an external WWTP. This makes it possible to achieve quality standards in the treated
effluent compatible with the admissible emissions values (AEV) under the BREF P&P (2015). Effluent discharges comply with the strict terms of
industrial waste water disposal licenses, which impose stringent monitoring obligations.
In terms of the minimum standards established, all the plants are subject to discharge standards regulated by a Water Resources Utilisation License for
discharge of industrial effluent. As the mills' Effluent Discharge Licenses were renewed in 2019 and 2020, it was necessary, as a first step, to comply
with very stringent rules, both on effluent quality, and on the level of monitoring required. Navigator has implemented capex projects and other
initiatives to improve the IWWTPs, in order to ensure they have the capacity to respond to the new requirements. The quality of the receiving
environment is guaranteed by monitoring coastal waters in areas potentially influenced by outfall discharges. The quality requirements established for
effluent discharges are significantly disproportionate for the characteristics of the receiving environment, insofar as discharges from Navigator's large
industrial units (Aveiro, Figueira and Setúbal) and made in the Atlantic Ocean or the Sado estuary, with strong tidal influence, where there is
consequently great capacity for dispersion.
303-3 Water Withdrawal
Annual Report 2023 · Management Report 320
Chap. 6.3.4 Water consumption
Chap. 9.2 Our performance (Environmental Indicators – Water)
Industrial operations (ML
(1)
)
2023
2022
2021
Surface water
Setúbal
0
0
0
Aveiro
11,732
11,848
12,636
Figueira da Foz
22,627
23,875
25,605
Vila Velha de Ródão
673
590
653
Subtotal: Portugal
35,032
36,313
38,895
Spain
0
-
-
Subtotal: global
35,032
36,313
38,895
Groundwater
Setúbal
24,837
25,487
25,917
Aveiro
0
0
0
Figueira da Foz
15
3
5
Vila Velha de Ródão
0
0
0
Subtotal: Portugal
24,852
25,489
25,922
Spain
0
-
-
Subtotal: global
24,852
25,489
25,922
Acquired from third parties
Setúbal
4
2
2
Aveiro
5
5
16
Figueira da Foz
45
35
31
Vila Velha de Ródão
10
12
10
Subtotal: Portugal
63
54
59
Spain
149
-
-
Subtotal: global
212
54
59
Total industrial operations
Portugal
59,947
61,857
64,876
Spain
149
-
-
Total: global
60,096
61,857
64,876
Forestry operations (ML
(1)
)
2023
2022
2021
Surface water
Mozambique
106
106
-
Groundwater
Portugal
1,768
1,520
994
Acquired from third parties
Portugal
18
21
27
Total forestry operations
Portugal
1,786
1,541
1,021
Mozambique
106
106
-
Total: global
1,892
1,647
1,021
Total water withdrawn (ML
(1)
)
2023
2022
2021
Surface water
35,138
36,419
38,895
Groundwater
26,620
27,009
26,916
Acquired from third parties
231
75
86
Total
61,989
63,503
65,897
(1)
megalitres.
Note 1: Figures for 2023 include water withdrawal for the Ejea Tissue mill, which has been part of the Navigator group since April 2023. Total water withdrawal for 2023 now
includes forestry operations (in Mozambique and Portugal) and the figures for 2021 and 2022 were similarly revised.
Note 2: The figures for Mozambique include only nursery operations and are not available for 2021.
Navigator pays attention to the issue of drought, but there is no indication that the Drainage Basins (DB) from which Navigator withdraws water are
under water stress. The Mondego, Vouga and Lis DB is not subject to excessive pressure of use, and is used in accordance with the Central Region
Hydrographic Region (HR4) Management Plan. In the Sado and Mira drainage basin, groundwater is regularly monitored, in terms of quality and
quantity, and there is no indication of water stress. Although groundwater is not subject to stress, the Company takes care to manage this important
resource as well as possible.
Annual Report 2023 · Management Report 321
303-4 Effluents
Chap. 6.3.4 Water consumption
Chap. 9.2 Our performance (Environmental Indicators – Water)
Total effluents discharged by receiving waterbody (ML
(1)
)
2023
2022
2021
Discharge of effluents into surface water
Setúbal
0
0
0
Aveiro
0
0
0
Figueira da Foz
0
0
0
Vila Velha de Ródão
421
394
390
Subtotal: Portugal
421
394
390
Discharge of effluents into marine environment
Setúbal
17,672
19,191
19,695
Aveiro
11,071
11,586
11,544
Figueira da Foz
19,352
20,988
22,672
Vila Velha de Ródão
0
0
0
Subtotal: Portugal
48,095
51,766
53,912
Discharge of effluents for treatment by third parties (e.g. municipal management bodies)
Spain
93
-
-
Total
48,610
52,161
54,302
(1) Megalitres.
NB: Figures for 2023 include water withdrawal for the Ejea Tissue mill, which has been part of the Navigator group since April 2023.
The treatment levels applied at each plant are those which respond to the legal requirements set out in the Discharge Licenses for each industrial unit
and incorporate the Best Available Techniques (BATs) for the sector, in accordance with Commission Implementing Decision 2014/687/UE, of 26
September 2014, which establishes the Emission Levels Associated with the Best Available Techniques (BAT-AELs).
Effluent undergoes primary and secondary treatment at the industrial complexes in Setúbal, Figueira da Foz and Aveiro, whilst in Vila Velha de Ródão
industrial effluent is treated using an advanced primary and secondary treatment system. Substances considered by ECHA (European Chemicals
Agency, the relevant EU authority) as of very high concern are regularly monitored and are reported whenever detected in effluents, even in quantities
below the quantification limits in the analytical methods, due to the high volume of outflow.
Total effluents discharged by type of treatment (ML)
2023
2022
2021
Discharge of effluents into surface water
Primary + secondary treatment
421
394
390
Discharge of effluents into marine environment
Primary + secondary treatment
48,095
51,766
53,912
Total
48,517
52,161
54,302
303-5 Water Consumption
Chap. 6.3.4 Water consumption
Chap. 9.2 Our performance (Environmental Indicators – Water)
Volume of water consumed (ML
(1)
)
2023
2022
2021
Portugal
Setúbal
7,169
6,298
6,224
Aveiro
666
266
1,108
Figueira da Foz
3,335
2,925
2,969
Vila Velha de Ródão
261
208
273
Forestry operations (nurseries and trials)
1,786
1,541
1,021
Subtotal
13,216
11,237
11,595
Spain
56
-
-
Mozambique
106
106
-
Total
13,378
11,343
11,595
(1)
megalitres.
Note 1: Figures for 2023 include water withdrawal for the Ejea Tissue mill, which has been part of the Navigator group since April 2023. Total water consumed for 2023 now
includes forestry operations (in Mozambique and Portugal) and the figures for 2021 and 2022 were similarly revised.
Note 2: The figures for Mozambique include only nursery operations and are not available for 2021.
A large proportion of the water withdrawn by the industrial units, along with the water introduced into the production processes by the raw materials
(wood and chemicals), is returned to the environment in the form of treated effluent and steam. A part of the water used accompanies the products
and process waste produced by the various industrial units. In accordance with the methodology described in guidance for disclosure 303-5, the volume
of water consumed corresponds to the differential between the volume of water withdrawn and the volume of water discharged. It should be noted that
this figure does not include the water discharged as steam because, although this is not measurable, it is in fact returned to the environment.
Annual Report 2023 · Management Report 322
GRI 304: BIODIVERSITY
304-1 Operational sites owned, leased, managed in, or adjacent to, protected areas and areas of high biodiversity value outside
protected areas
Chap. 6.3.3 Sustainable forestry management and conserving biodiversity
Chap. 9.2 Our performance (Environmental Indicators – Biodiversity)
Facilities in or close to protected areas and areas of high biodiversity value
2023
2022
2021
National Network of Protected Areas (RNAP)
Area (ha)
11,877
10,253
10,067
Proportion of total holdings managed (%)
11
10
10
Classified sites in Natura 2000 Network (ZEC)
Area (ha)
44,990
43,699
43,498
Proportion of total holdings managed (%)
42
41
42
Special Protection Zones (ZPE) in the Natura 2000 Network
Area (ha)
33,680
31,533
31,657
Proportion of total holdings managed (%)
31
30
30
Total classified areas
Area (ha)
56,684
53,738
53,563
Proportion of total holdings managed
(%)
53
51
51
304-2 Significant impacts of activities, products, and services on biodiversity
Chap. 6.3.3 Sustainable forestry management and conserving biodiversity
There is no record of any occurrences with significant impacts.
The potential impacts on biodiversity, negative or positive, are duly identified and preventive and mitigation measures have been defined for the
potential negative impacts. Measures have also been designed to help maintain or improve the biodiversity existing on our land holdings and the
respective state of conservation. These measures are implemented in forestry projects and operations, from planning through to execution in the field.
304-3 Habitats protected or restored
Chap. 6.3.3 Sustainable forestry management and conserving biodiversity
Chap. 9.2 Our performance (Environmental Indicators – Biodiversity)
Habitats protected or restored In Portugal (ha)
2023
2022
2021
Protected habitats
4,420
4,243
4,076
Restored habitats
191.3
71.2
53.1
Total
4,611
4,314
4,129
NB: The reduction in area in 2021 was largely due to the smaller area of properties under management and adjustments to the boundaries of habitat areas.
304-4 Number of IUCN Red List species and national conservation list species with habitats in areas affected by operations
Chap. 6.3.3 Sustainable forestry management and conserving biodiversity
No. species by degree of extinction risk in Mainland Portugal
2023
2022
2021
Critically endangered
5
5
4
Endangered
17
13
13
Vulnerable
43
39
36
Near threatened
26
24
21
Least concern
192
195
182
Annual Report 2023 · Management Report 323
GRI 305: EMISSIONS
305-1 Direct (Scope 1) GHG emissions
Chap. 6.3.2 Climate Change
Chap. 9.2 Our performance (Environmental Indicators – Emissions)
Direct GHG emissions – Scope 1 (tCO
2
e)
2023
2022
2021
Assets at plants (CELE scope)
456,689
552,587
539,332
Fluorinated gases
598
598
973
Fuel for travel and kilometres travelled
2,421
2,143
2,114
Natural Gas used in BPPs (auxiliary fuel)
11,235
3,304
2,578
CH
4
from combustion processes
5,970
5,270
4,576
N
2
O from combustion processes
24,627
21,435
27,471
Diesel and gasoline consumed at plants
6,458
6,036
5,788
Fertilisers and phyto-fertilisers in soil
1,495
1,056
1,259
Total
509,494
592,428
584,090
Note 1: The GHG Protocol guidelines have been followed.
Note 2: The baseline (2018) figure considered for calculating direct CO2 emissions, in the Climate and Nature focus area, is 774,464 t CO2, corresponding to emissions recorded
for EU ETS (European Emissions Trading Scheme) purposes. Since 2020, Navigator has adopted the methodology of the GHG Protocol, resulting in a more comprehensive
inventory of greenhouse gas (GHG) emissions, due to the inclusion of new emissions categories, in addition to those already reported for EU ETS purposes.
Note 3: The 2022 figures, including EU ETS emissions, fluorinated gases, fleet emissions, methane and nitrous oxide, have been updated, incorporating the EU ETS verification
prior to publication of the 2022 Sustainability Report, information nor previously available, and the updated Global-Warming Potentials (GWP) published by the IPCC.
Note 4: The scope 1 inventory does not consider the international offices or Mozambique, due to the low significance of the data (these emissions account for less than 0.2%).
Note 5: Figures for 2023 include emissions at the Ejea Tissue mill, which has been part of the Navigator group since April 2023.
305-2 Energy indirect (Scope 2) GHG emissions
Chap. 6.3.2 Climate Change
Chap. 9.2 Our performance (Environmental Indicators – Emissions)
Indirect emissions - Scope 2 (tCO
2
e)
2023
2022
2021
Electricity (location based)
234,597
352,517
389,919
Electricity (market based)
317,389
307,355
246,860
Note 1: The GHG Protocol guidelines have been followed
Note 2: The 2022 location-based and market-based emissions were revised on the basis of information that became available after publication of the 2022 Sustainability Report.
Note 3: Market-based emissions consider the emission factors of the vendors as well as the supply of 115 GWh/year under a Power Purchase Agreement (PPA), supplying 100%
renewable energy. The 2023 figures are provisional, as the final emission factor values are not yet available.
Note 4: In 2023, the more recent emission factors of the International Energy Agency (IEA) were used to calculate scope 2 (location-based) emissions, instead of the energy
mix of the ERSE (Energy Services Regulatory Authority) in previous years.
Note 5: The scope 2 inventory does not consider the international offices or Mozambique, due to the low significance of the data (these emissions account for less than 0.02%).
Note 6: Figures for 2023 include emissions at the Ejea Tissue mill, which has been part of the Navigator group since April 2023.
Annual Report 2023 · Management Report 324
305-3 Other indirect (Scope 3) GHG emissions
Chap. 6.3.2 Climate Change
Chap. 9.2 Our performance (Environmental Indicators – Emissions)
Indirect emissions – Scope 3 (tCO
2
)
2023
2022
2021
Category 1 - Purchased goods and services
790,801.2
1,006,540.2
1,013,199.8
Category 3 - Fuel- and energy-related activities (Location-based)
99,413.9
107,035.7
144,105.0
Category 4 - Upstream transportation and distribution
90,997.6
124,565.9
72,746.5
Category 9 - Downstream transportation and distribution
116,732.2
81,182.0
103,266.0
Category 10 - Processing of sold products
154,223.6
108,080.2
57,349.2
Category 12 - End-of-life treatment of sold products
144,667.2
161,733.8
179,900.7
Total
1,396,835.7
1,589,137.6
1,570,567.2
Note 1: The GHG Protocol guidelines have been followed. Reporting of scope 3 emissions considers the six relevant categories of the ten applicable to Navigator: category 1
(purchase of goods and services); category 3 (emissions related to fuel and electricity (location based)); category 4 (transport and distribution (upstream)); category 9
(transport and distribution (downstream)); category 10 (processing of products sold); category 12 (end of life of products sold).
Note 2: As from 2022, scope 3 of the corporate inventory of emissions has included the materials “cellulose pulp” purchased on the market and “waste forestry biomass”
(category 1), as well as transportation upstream associated with these raw materials (category 4).
Note 3: The scope 3 inventory does not consider the international offices or Mozambique, due to their low significance (these emissions account for less than 0.03%).
Note 4: Figures for 2023 include emissions at the Ejea Tissue mill, which has been part of the Navigator group since April 2023.
305-4 GHG emissions intensity
Chap. 6.3.2 Climate Change
Chap. 9.2 Our performance (Environmental Indicators – Emissions)
Emissions intensity
2023
2022
2021
GHG emissions intensity per ton of output (tCO
2
e/t)
(1)
Portugal
0.175
0.181
0.186
Spain
0.287
-
-
Total
0.176
0.181
0.186
GHG emissions intensity by turnover (tCO
2
e/M€)
(2)
381.0
383.3
610.3
Note 1: In order to calculate the emissions intensity per ton of output, scope 1 emissions (excluding Biomass Power Plant (BPP) emissions) and the total quantity of products
manufactured are considered, in line with the calculation of energy intensity.
Note 2: The methodology for calculating emissions intensity by turnover considers total scopes 1 and 2 emissions. The 2023 figures include Navigator's operations in Portugal
and Spain (Ejea). Those for previous years include only Portugal.
Note 3: Figures for 2023 include emissions at the Ejea Tissue mill, which has been part of the Navigator group since April 2023.
305-5 Reduction of GHG emissions
Chap. 6.3.2 Climate Change
Chap. 9.2 Our performance (Environmental Indicators – Emissions)
Reduction of GHG emissions as direct result of initiatives undertaken (tCO
2
e)
2023
2022
2021
Reduction in GHG emissions
12,230
4,576
184,606
In calculating this indicator, we took into consideration the energy efficiency projects with an impact on power consumption, decarbonisation projects
such as the new biomass boiler in Figueira da Foz (2021) and Steam connection from Aveiro Renewable Cogeneration to Tissue Aveiro (2023) and new
solar facilities in Figueira da Foz (2021) and Setúbal (2022).
Note 1: Starting in 2023, the indicator is now calculated on the basis of energy efficiency and decarbonisation projects implemented in the current year, seeking improved
alignment with reporting and transparency recommendations. The figures for 2021 and 2022 in the table have been adjusted in line with the new methodology.
Note 2: The figures include only Navigator's operations in Portugal.
305-6 Emissions of ozone-depleting substances (ODS)
Emissions of ozone-depleting substances (ODS) (kg CFC-11e)
2023
2022
2021
Production
0.0
0.0
0.0
Imports
0.0
0.0
0.0
Exports
0.0
0.0
0.0
Annual Report 2023 · Management Report 325
305-7 Nitrogen oxides (NO
x
), sulphur oxides (SO
x
), and other significant air emissions
Chap. 9.2 Our performance (Environmental Indicators – Emissions)
Atmospheric emissions (t)
2023
2022
2021
NO
X
1,780
1,737
1,687
SO
2
64
83
76
Particles
198
261
262
Note 1: For emissions sources subject to continuous monitoring, reporting data is obtained through online monitoring of flow and pollutant parameters. There are low emissions
sources where emissions are counted through occasional monitoring, conducted twice a year, by an Accredited Laboratory. The findings from this occasional monitoring may be
influenced in each instance by the type of fuels used. When a facility is not subject to monitoring in the year in question, (for example, sources monitored every 3 years),
annual emissions are calculated on the basis of the last monitoring, taking into account the operating hours in the years to which the emissions relate.
Note 2: Figures for 2023 include emissions at the Ejea Tissue mill, which has been part of the Navigator group since April 2023.
GRI 306: WASTE
306-1 Waste generation and significant waste-related impacts
Chap. 6.3.5 Use of resources and circular economy
There is a series of materials in the inputs and outputs from Navigator's operations which may have impacts related to the waste generated. In terms
of inputs, Navigator receives a number of materials needed for the production process, such as chemicals for the pulp cooking and bleaching process,
packaging materials for products purchased, lubricants and gear oil, among others. In relation to outputs, some of the by-products / waste generated,
which may cause an impact, include used oils, empty composite packaging, process waste, and also end products. The activities which may generate
waste-related impacts are chemicals recovery activities (causticisation and lime kiln), energy production activities, effluent treatment activities and
maintenance activities.
In forestry and nursery operations, the waste generated is separated at the storage locations and duly forwarded to authorised Waste Management
Operators. Service Providers for forestry operations remove their own waste, and Navigator conducts local monitoring to check whether there is any
waste at the work fronts. The information on how to proceed is contained in the documentation delivered at the start of operations. In Mozambique,
waste management is a “tricky” issue. The law is similar in all regards to Portugal, but the country lacks the authorities and infrastructures to follow up
the legal requirements. The situation is even worse in operations in rural areas, such as ours.
306-2 Management of impacts
Chap. 6.3.5 Use of resources and circular economy
306-3 Waste generated
Chap. 6.3.5 Use of resources and circular economy
Chap. 9.2 Our performance (Environmental Indicators – Waste)
Waste generated (t)
2023
2022
2021
Hazardous Waste
Generated
933
697
565
Directed to recovery operations
662
532
396
Directed to disposal operations
271
165
169
Non-hazardous waste
Generated
440,709
410,021
397,457
Directed to recovery operations
295,687
279,330
280,204
Directed to disposal operations
148,316
133,177
126,316
Total
Generated
441,642
410,717
398,022
Directed to recovery operations
296,348
279,862
280,599
Directed to disposal operations
148,587
133,342
126,486
Note 1: The difference between waste generated and the sum of waste directed to recovery and disposal operations in 2022 is the result of recovery of waste produced in 2021
that was in temporary storage. In addition, some of the waste generated in 2022 was temporarily stored on our premises, as permitted under the respective environmental
licenses and the new Legal Framework for Waste Management (Decree-Law -102D/2020).
Note 2: The figures for 2021 and 2022 were corrected due to the inclusion of waste from forestry operations.
Note 3: The 2023 figures include Navigator's operations in Portugal and Spain (Ejea). Those for previous years include only Portugal.
Annual Report 2023 · Management Report 326
306-4 Waste diverted from disposal
Here we present waste generated which is sent for recovery operations. This is considered onsite when within the physical boundaries or under the
administrative control of the reporting organisation, and offsite when outside the physical boundaries or not under the administrative control of the
reporting organisation. Whenever possible, waste is managed onsite.
In the case of recycling, the type of operation is composting and soil treatment for the benefit of farming. In the case of recovery operations, Navigator
sends waste to be incorporated in other value chains as secondary raw materials.
Hazardous waste directed to recovery operations (t)
2023
2022
2021
Preparation for reuse (R2, R6, R9)
Onsite
0.0
0.0
0.0
Offsite
54.4
49.0
45.5
Subtotal
54.4
49.0
45.5
Recycling (R3, R4, R5)
Onsite
0.0
0.0
0.0
Offsite
90.8
17.8
15.6
Subtotal
90.8
17.8
15.6
Other recovery operations (R7, R8,
R10, R11, R12, R13)
Onsite
0.0
0.0
0.0
Offsite
502.6
465.1
334.6
Subtotal
502.6
465.1
334.6
Total
Onsite
0.0
0.0
0.0
Offsite
647.9
531.9
395.7
Total
647.9
531.9
395.7
Non-hazardous waste directed to recovery operations (t)
2023
2022
2021
Preparation for reuse (R2, R6,
R9)
Onsite
0.0
0.0
0.0
Offsite
0.0
0.0
0.0
Subtotal
0.0
0.0
0.0
Recycling (R3, R4, R5)
Onsite
0.0
0.0
0.00
Offsite
170,310.5
176,895.3
160,218.08
Subtotal
170,310.5
176,895.3
160,218.08
Other recovery operations (R7,
R8, R10, R11, R12, R13)
Onsite
0.0
0.0
0.00
Offsite
122,364.7
102,434.6
119,985.52
Subtotal
122,364.7
102,434.6
119,985.52
Total
Onsite
0.0
0.0
0.0
Offsite
292,675.2
279,329.9
280,203.6
Total
292,675.2
279,329.9
280,203.6
Note 1: The figures for 2021 and 2022 were corrected due to the inclusion of waste from forestry operations.
Note 2: The 2023 figures include Navigator's operations in Portugal and Spain (Ejea). Those for previous years include only Portugal.
306-5 Waste directed to disposal
Here we present waste generated which is sent for recovery operations. This is considered onsite when within the physical boundaries or under the
administrative control of the reporting organisation, and offsite when outside the physical boundaries or not under the administrative control of the
reporting organisation.
Waste stated under “Other disposal operations” relates to temporary storage operations, whilst awaiting the most appropriate form of disposal. In
cases where a reclamation destination cannot be found, Navigator disposes of these materials at a specific landfill site, duly monitored and licensed.
Although reuse for energy is considered under the GRI as a disposal operation, it makes it possible to replace virgin raw materials and to reduce
consumption of fossil fuels.
Annual Report 2023 · Management Report 327
Hazardous waste directed to disposal operations (t)
2023
2022
2021
Incineration with energy recovery (R1)
Onsite
0.0
0.0
0.0
Offsite
0.0
0.0
0.0
Subtotal
0.0
0.0
0.0
Incineration without energy recovery (D10, D11)
Onsite
0.0
0.0
0.0
Offsite
0.0
0.0
0.0
Subtotal
0.0
0.0
0.0
Landfilling (D1, D5)
Onsite
0.0
0.0
0.0
Offsite
83.0
68.5
35.4
Subtotal
83.0
68.5
35.4
Other disposal operations (D2 to D4, D6 to D9, D12 to D15)
Onsite
0.0
0.0
0.0
Offsite
98.1
96.4
133.9
Subtotal
98.1
96.4
133.9
Total
Onsite
0.0
0.0
0.0
Offsite
181.1
165.0
169.3
Total
181.1
165.0
169.3
Non-hazardous waste directed to disposal operations (t)
2023
2022
2021
Incineration with energy recovery (R1)
Onsite
96 297.4
88,590.9
70,056.1
Offsite
0.0
0.0
1,232.0
Subtotal
96 297.4
88,590.9
71,288.2
Incineration without energy recovery (D10, D11)
Onsite
0.0
0.0
0.0
Offsite
0.0
0.0
0.0
Subtotal
0.0
0.0
0.0
Landfilling (D1, D5)
Onsite
51 422.9
43,895.6
54,277.2
Offsite
288.8
353.1
644.0
Subtotal
51 711.7
44,248.7
54,921.2
Other disposal operations (D2 to D4, D6 to D9, D12 to D15)
Onsite
0.0
0.0
0.0
Offsite
306.6
337.5
107.0
Subtotal
306.6
337.5
107.0
Total
Onsite
147 720.2
132,486.5
124,333.4
Offsite
595.4
690.6
1,983.0
Total
148 315.6
133,177.1
126,316.4
Note 1: The figures for 2021 and 2022 were corrected due to the inclusion of waste from forestry operations.
Note 2: The 2023 figures include Navigator's operations in Portugal and Spain (Ejea). Those for previous years include only Portugal.
GRI 308: SUPPLIER ENVIRONMENTAL ASSESSMENT
308-1 New Suppliers that were screened using environmental criteria
Chap. 6.5.1 Responsible business conduct
Chap. 6.5.4 Supply chain management
308-2 Negative environmental impacts in the supply chain and actions taken
Chap. 6.5.1 Responsible business conduct
Chap. 6.5.4 Supply chain management
In late 2022 we approved out Human Rights Policy, which provides for implementation of due diligence procedures, and in 2023 a new Third-Party
Integrity Verification System was implemented, which entails identifying the ESG risks of business partners with which we have dealings.
GRI 400: SOCIAL PERFORMANCE
GRI 401: EMPLOYMENT
401-1 New employee hires and employee turnover
Annual Report 2023 · Management Report 328
Chap. 9.3 Our performance (Social Indicators – Human Resources)
Employees joining and leaving, by gender (No.)
2023
2022
2021
Employees
joining
Employees
leaving
Employees
joining
Employees
leaving
Employees
joining
Employees
leaving
Men
194
177
248
192
123
210
Women
103
48
105
66
52
47
Total Employees Joining and Leaving
297
225
353
258
175
257
Employees joining and leaving, by gender (%)
2023
2022
2021
Employees
joining
Employees
leaving
Employees
joining
Employees
leaving
Employees
joining
Employees
leaving
Men
7
7
9
7
5
8
Women
16
8
18
11
10
9
Total Employees Joining and Leaving
9
7
11
8
6
8
Employees joining and leaving, by age group (No.)
2023
2022
2021
Employees
joining
Employees
leaving
Employees
joining
Employees
leaving
Employees
joining
Employees
leaving
Under 30 years
135
43
188
30
79
24
Aged 30 to 50 years
156
103
158
118
90
98
Over 50 years
6
79
7
110
6
135
Total Employees Joining and Leaving
297
225
353
258
175
257
Employees joining an leaving, by age group (%)
2023
2022
2021
Employees
joining
Employees
leaving
Employees
joining
Employees
leaving
Employees
joining
Employees
leaving
Under 30 years
31
10
46
7
25
7
Aged 30 to 50 years
8
5
8
6
5
5
Over 50 years
1
9
1
13
1
15
Total Employees Joining and Leaving
9
7
11
8
6
8
Note 1: The figures refer to the number of Employees at 31 December each year. The figures presented do not include Employees at the new Tissue unit, in Spain (Ejea).
Note 2: The figures for 2021 and 2022 were corrected due to the inclusion of Employees in Mozambique.
401-2 Benefits provided to full-time employees that are not provided to temporary or part-time employees
Chap. 6.4.1 Talent management and developing human capital
We do not normally hire part-time staff, and there is consequently no specific policy or practice in place for benefits for workers employed on this basis.
Annual Report 2023 · Management Report 329
401-3 Parental leave
Chap. 6.5.1 Responsible business conduct
Parental leave (No.)
2023
2022
2021
No. Employees who started parental leave during reporting period
Men
131
113
117
Women
42
37
38
Subtotal
173
150
155
No. Employees returning to work after parental leave
Men
131
113
117
Women
42
37
38
Subtotal
173
150
155
No. of Employees who returned to work and were still employed 12 months later
Men
100
110
-
Women
33
36
-
Subtotal
133
146
-
Return to work and retention rates after parental leave (%)
2023
2022
2021
Return to work rate (after leave)
Men
100
100
100
Women
100
100
100
Total
100
100
100
Retention rate (12 months after returning to work after leave)
Men
88
94
-
Women
89
95
-
Total
89
94
-
Note 1: Due to adjustments in methodology, the figures reported last year for the number of Employees who returned to work and were still employed 12 months later and the
respective rate have been corrected. The calculation is made considering the number of Employees still in the Company after 12 months, and for this reason, figures are not
presented for 2021, as it was only possible to start doing this calculation as from the following year (2022).
Note 2: The figures include Navigator's operations in Portugal and Mozambique. The figures presented do not include the activities of the international offices and the new unit in
Spain (Ejea).
Note 3: The legislation applicable, in this regard, to operations in Mozambique is different from that applicable in Portugal.
GRI 402: LABOUR/MANAGEMENT RELATIONS
402- 1 Minimum notice periods regarding operational changes
In the event of definitive transfer from place of work, Employees are notified no less than four weeks in advance - in the case of the UWF business
area, there are express provisions in the collective labour agreements for the purposes of transfers to a new place of work; in Tissue business, the
notification period is not stipulated in the collective agreement, but is that established in general employment legislation for the purposes of transfers
from one workplace to another.
Other significant operational changes are analysed case by case and adapted accordingly; there may be a variable minimum implementation period, of
six or twelve months.
GRI 403: OCCUPATIONAL HEALTH AND SAFETY
403-1 Occupational health and safety management system
Chap. 6.4.2 Health, safety and well-being
We have an Occupational Health and Safety Management System (OHSMS) governed by ISO 45001 and applying to internal and external Employees.
External employees have been integrated into all OHS initiatives over the past five years, especially in the case of resident external employees.
403-2 Hazard identification, risk assessment, and incident investigation
Chap. 6.4.2 Health, safety and well-being
We have a procedure (PG 138) for Hazard Identification and Risk Assessment, applicable across all the Company's units and forestry sectors. The aims
of this procedure are: to identify the hazards associated with all activities carried on by the Company, by furnishing hazard identification guidelines, to
assess and record the associated risks, setting prioritisation levels that enable them to be managed. Hazards are identified by the operational teams
responsible for the activities, in direct coordination with the OHS teams, with recourse whenever necessary to internal and external consultancy
services.
Annual Report 2023 · Management Report 330
In terms of methodological approach, this assessment takes the form of risk evaluation matrices which are reviewed periodically (at least once a year)
or else in specific situations, such as when incidents occur, when there are new raw materials, processes or products, when there are changes in the
legislation, and in other cases. The results of these processes are assessed through internal and external audits, as well as inspections and checks, by
official entities and by Navigator's teams. Monitoring is conducted on the basis of performance indicators, so that it is possible to follow up the results
of processes. In cases where they do not take a direct part in reviewing the matrix, the Employees involved are informed of the changes. In terms of
reporting, all Employees are able to report hazards, hazardous situations or safety incidents, anonymously if they so wish. Navigator has several
procedures in place, such as PG28 – Reporting and Investigation of Incidents, recording of unsafe conditions, safety walks and also the Codes of Ethics
and Conduct, which make it possible to safeguard Employees against any reprisals. All Employees are aware that they can refuse to carry out tasks
posing a high risk and which could lead to injuries without the due mitigation measures being implemented. There are several procedures in force
which serve as a guide in these situations. One of these is PG 55, the procedure that defines authorisation for carrying out work, safeguarding a prior
risk assessment in which the whole team involved takes cognizance of the measures to be adopted. Incidents at work are analysed in accordance with
PG28, as well as the procedures for Hazard Identification and Risk Assessment. PG 28 determines how incidents should be classified and reported, the
investigation team to be appointed, the root causes which led to the incident and the corrective measures to be implemented, the persons responsible
and time limits for implementation. These reports are widely disseminated throughout the Company, so that the different industrial complexes and
forestry sectors, with similar operations and tasks, can assess and debate the reports, identifying the possibility of similar situations occurring, or even
application of the measures identified.
403-3 Occupational Health Services
Chap. 6.4.2 Health, safety and well-being
At Navigator we have a set of corporate initiatives designed to improve working practices, procedures and conditions across the company, in order to
make operations healthier and safer.
The relationship between the OHS and Occupational Medicine teams ensures that relevant information is shared, in particular risk assessments, the
findings of monitoring operations (for chemical, physical and biological agents and ionising radiation) and, more recently, issues related to CRM
chemicals which can affect fertility. This ensures that the medical teams are aware of the risks to which each Employee is subject, making it possible to
monitor other complementary parameters at periodic check-ups, and to decide jointly on one-off and/or permanent mitigating measures. The Medical
and OHS teams conduct periodic joint visits to the industrial units, offering the chance to work together in the field on assessing conditions and
validating the measures implemented or planned.
403-4 Worker participation, consultation, and communication on occupational health and safety
We use an online survey to consult all Employees. This survey is conducted twice a year and widely publicised within the company so as to encourage
as many employees as possible to take part. The questions address several OHS issues, including the level of hazards and risks, workplace conditions,
reporting of monitoring results, awareness of procedures, training needs and the quality of personal protective equipment (PPE) The findings of this
consultation process are published so that everyone has access to the information and is aware of the action taken, designed on the basis of the
responses obtained. In addition to this, the Health and Safety Committees at each of the industrial complexes are also consulted. All the complexes
(except Vila Velha de Ródão and forestry operations) have Occupational Health and Safety Committees. The committees meet periodically, and at least
once a year. One of their specific powers is to discuss risk assessments, hazards and procedures, and also to convey employee concerns. The
composition of these committees is established by Portuguese law, and Navigator ensures the rules are correctly applied.
403-5 Worker training on occupational health and safety
Chap. 6.4.2 Health, safety and well-being
We provide a series or mandatory training courses (as required under Portuguese law) and provide additional training from time to time. The Learning
Center provides Employees with a series of training courses addressing various Safety issues.
For 2023-2024, a training plan addressing OHS topics at Navigator is currently being implemented. Onboarding sessions have been redesigned, and
new Employees are invited to learn in greater detail about the Company’s operations, the associated hazards and emergency situations, and the
collective and individual measures adopted, as well as the main procedures in force. The sharing of incidents and experience is also an important
component of the programme in place.
As from the 2
nd
half of 2023, all Navigator's Employees have been invited to take a Safety course: SAFEPRO, in an e-learning format. This course
consists of more than 11 hours of intensive training content, divided into 10 modules, addressing all the most critical and important topics. An uptake
rate of 85% has been achieved for this training, exceeding the original target of 80%.
This OHS training plan will continue to evolve, offering specific training courses for different functional areas, on more technical topics.
Eight Safety Leadership workshops have also been held, reaching a total of 300 Employees throughout Navigator's hierarchical chain, from the EB down
to supervisors.
When they attend training outside working hours, Employees receive additional pay. In sectors considered more critical, where the working risks are
highest, additional training is provided by the local OHS team.
External employees are required to attend compulsory training developed by Biond, known as the Paper Industry Safety Card (PISC). Navigator has
been working with its Training division to develop a skills matrix by job description, identifying the tasks assigned to each Employee, and the obligatory
training to be provided. Navigator has been working with its Training division to develop a skills matrix by job description, identifying the tasks
assigned to each Employee, and the obligatory training to be provided. This project will be developed further in 2024/2025.
403-6 Promotion of worker health
Annual Report 2023 · Management Report 331
Chap. 6.4.2 Health, safety and well-being
We have a team of medical professionals, comprising occupation medicine specialists, doctors and nurses, to which all Employees in industrial and
forestry sectors have access. The industrial units have a Medical Unit, where all Employees have access to a team of health professionals. The nursing
team is available to Employees on site at all times (24/7), except in Vila Velha de Ródão, where nurses are only available during daytime hours. The OH
team consists of a psychologist, a nutritionist, a social worker and five physiotherapists, who all work in partnership with the occupational and curative
medicine team, comprising 6 occupational medicine professionals, 4 curative medicine professionals and 20 nurses. These teams work together on
health and welfare programmes, and in assessing and following up Employees needing help from any of the specialities offered. The resident team
provides its services at the medical units and runs programmes to reach out to Employees, such as workplace physical exercise, sleep analysis,
nutrition for shift workers, welfare support and others. October each year is celebrated as Health month, with a range of activities designed to bring the
medical team closer to operations; feedback from these initiatives has been very positive. Complementing our work to promote Employee wellness, we
provide Health Insurance offering access to an extensive network of health services and specialists.
403-7 Prevention and mitigation of occupational health and safety impacts directly linked by business relationships
Navigator does not vary its approach to preventing or mitigating significant occupational health and safety impacts directly linked to its operations,
insofar as OHS is a function coordinated across the group at corporate level, despite each complex having a local team coordinating OHS issues.
403-8 Workers covered by an occupational health and safety management system
Chap. 6.4.2 Health, safety and well-being
Navigator has an Occupational Health and Safety Management System (OHSMS), implemented in accordance with ISO 45001 and certified by an
external body. In Portugal, the OHSMS covers the following:
No. and percentage
of Employees and
other workers
covered by a
management system
2023
2022
2021
Employees
Other workers
Total
Employees
Other workers
Total
Employees
Other workers
Total
No.
%
No.
%
No.
%
No.
%
No.
%
No.
%
No.
%
No.
%
No.
%
Total persons
3,187
-
12,863
-
16,050
-
3,115
-
10,324
-
13,439
-
3,021
-
14,293
-
17,314
-
Coverage by a certified
occupational health and
safety management
system
2,947
92
12,863
100
15,810
99
2,904
93
10,324
100
13,228
98
2,780
92
13,896
97
16,676
96
Note 1: There are various activities in the organisation not covered by certified OHS systems, in particular Forest Management, Wood Supply and RAIZ, which are not
encompassed by the certification. However, activities in these sectors are subject to the same principles and procedures.
Note 2: The figures presented do not include Employees in Spain (Ejea) and Mozambique, and in the international offices.
403-9 Work-related injuries
Chap. 6.4.2 Health, safety and well-being
Chap. 9.3 Our performance (Social Indicators – Health and Safety)
Work-related injuries (Employees)
2023
2022
2021
Total no. of
Fatalities as a result of work-related injury
0
0
0
High consequence work-related injuries
(1)
(excluding
fatalities)
0
1
3
Recordable work-related injuries (
2)
133
178
132
Work-related injuries with sick leave
35
51
49
Days lost
1,286
2,667
3,443
Hours worked
5,237,695
5,725,135
5,866,472
Rate of
Fatalities as a result of work-related injury
0.0
0.0
0.0
High-consequence work-related injuries
(excluding fatalities)
0.0
0.2
0.5
Recordable work-related injuries
25.4
31.1
22.5
Rate of
Frequency
6.7
8.9
8.4
Severity
245.4
465.8
587.0
Annual Report 2023 · Management Report 332
Work-related injuries (Other workers)
2023
2022
2021
Total no. of
Fatalities as a result of work-related injury
0
0
0
High consequence work-related injuries
(1)
(excluding
fatalities)
0
0
0
Recordable work-related injuries (
2)
95
84
15
Work-related injuries with sick leave
21
23
15
Days lost
0
0
0
Hours worked
4,493,836
4,448,055
3,858,480
Rate of
Fatalities as a result of work-related injury
0.0
0.0
0.0
High-consequence work-related injuries
(excluding fatalities)
0.0
0.0
0.0
Recordable work-related injuries
21.1
18.9
3.9
Rate of
Frequency
4.7
5.2
3.9
Severity
0.0
0.0
0.0
Accidents at work (Overall)
2023
2022
2021
Total no. of
Fatalities as a result of work-related injury
0
0
0
High consequence work-related injuries
(1)
(excluding
fatalities)
0
1
3
Recordable work-related injuries (
2)
228
262
147
Work-related injuries with sick leave
56
74
64
Days lost
1,286
2,667
3,443
Hours worked
9,731,531
10,173,190
9,724,952
Rate of
Fatalities as a result of work-related injury
0.0
0.0
0.0
High-consequence work-related injuries
(excluding fatalities)
0.0
0.1
0.3
Recordable work-related injuries
23.4
25.8
15.1
Rate of
Frequency
5.8
7.3
6.6
Severity
132.1
262.2
354.1
(1)
In accordance with GRI criteria, work-related injuries are those from which the work will not recover, i.e. he or she is not expected to recover fully within 6 moths to their
state of health prior to the accident.
(2)
In accordance with GRI criteria, this includes all accidents resulting in one of the following possibilities: fatalities, accidents leading to sick leave, accidents resulting in loss or
reduction of ability to work or transfer to another function, accidents leading to medical treatment other than first aid, loss of consciousness, serious injury diagnosed by a
physician or other qualified health professional. This may also be called TRI (Total Recordable Incidents). Coincides with the total reported in the Single Report.
Note 1: Hours worked by Employees in commercial subsidiaries outside Portugal are not included in this indicator, insofar as there is no structured reporting system for
incidents. The figures presented do not include Employees in Ejea or Mozambique, or in the international offices.
Note 2: For the purpose of calculating indexes, a normalisation factor of 1,000,000 worked was used.
Methodological notes on the calculations:
GRI Formulas:
• Rate of fatalities as a result of work-related injury = (No. of fatalities as a result of work-related
injury/No. of hours worked) x 1 000 000
• Rate of high-consequence work-related injuries* (excluding fatalities) = (No. high-consequence work related injuries (excluding fatalities)/No. hours worked) x 1 000
000
• Rate of recordable work-related injuries = (No. work related injuries/No. hours worked) x 1 000 000
Single Report Formulas:
• Frequency Rate = (No. work-related injuries leading to sick leave / No. hours worked) x 1,000,000
• Severity Rate = (No. days lost / No. hours worked) x 1,000,000
The Work Ability Index (WAI) is an indicator that Navigator uses to assess its Employees in relation to occupational health and well-being. The index
was developed by the Finnish Institute of Occupational Health. It presupposes that promoting work ability is a way of improving the quality of work, the
quality of life and well-being in general. The WAI is calculated on the basis of a questionnaire answered by the Employee him or herself, comprising ten
distinct areas concerning his or her physical capabilities.
Work Ability Index (%)
2023
2022
2021
-
-
39.8
NB: Insofar as this index is monitored every 4 years, the WAI will next be reassessed in 2025.
Annual Report 2023 · Management Report 333
403-10 Work-related ill health
Chap. 6.4.2 Health, safety and well-being
Occupational diseases
2023
2022
2021
Total number of
Fatalities as a result of work-related injury
0
0
0
Cases of work-related ill health reported
7
10
1
NB: The figures presented do not include Employees in Ejea or Mozambique, or in the international offices.
Our industrial operations involve a series of risks which are constantly monitored; preventive measures are also adopted at the different industrial
units. Attention is drawn to the risks of developing pulmonary diseases, dermatitis, musculoskeletal diseases, conjunctivitis and deafness.
GRI 404: EDUCATION AND TRAINING
404-1 Average hours of training per year per employee
Chap. 6.4.1 Talent management and developing human capital
Chap. 9.3 Our performance (Social Indicators – Training and Development)
Training by functional category and
gender
2023
2022
2021
No. training
hours
Average
training hours
No. training
hours
Average
training hours
No. training
hours
Average
training hours
Top Management
Men
1,558
54
534
15
385
15
Women
330
66
215
54
911
182
Subtotal
1,888
56
749
19
1,296
42
Senior Management
Men
19,813
47
16,188
40
11,951
31
Women
11,975
44
8,801
33
8,046
37
Subtotal
31,788
46
24,989
37
19,996
33
Middle Management
Men
14,482
44
8,760
30
6,653
23
Women
4,393
28
2,326
20
1,423
14
Subtotal
18,875
39
11,086
27
8,076
21
Operatives
Men
189,776
99
92,690
48
88,865
46
Women
16,793
87
7,155
38
6,232
30
Subtotal
206,570
98
99,846
47
95,097
45
Total
Men
225,629
84
118,173
44
107,853
41
Women
33,492
53
18,497
32
16,612
31
Total
259,121
78
136,671
42
124,465
40
Note 1: The figures refer to the number of Employees at 31 December each year.
Note 2: In 2023, these figures do not include 22,467 training hours provided to 113 Interns/Trainees in the Company at 31 December.
Note 3: The figures for 2021 and 2022 were corrected due to the inclusion of figures for Mozambique. The 2023 figures include all Navigator Group activities except Employees
at the new Tissue unit in Spain (Ejea).
404-2 Programs for upgrading employee skills and transition assistance programs
Chap. 6.4.1 Talent management and developing human capital
404-3 Percentage of employees receiving regular performance
and career development reviews
Chap. 6.4.1 Talent management and developing human capital
Chap. 9.3 Our performance (Social Indicators – Training and Development)
Annual Report 2023 · Management Report 334
Performance assessment by functional category and gender (%)
2023
2022
2021
Top Management
Men
100
100
68
Women
100
100
80
Subtotal
100
100
70
Senior Management
Men
100
100
98
Women
100
99
100
Subtotal
100
99
99
Middle Management
Men
100
100
99
Women
100
98
100
Subtotal
100
99
99
Operatives
Men
98
97
100
Women
100
96
97
Subtotal
99
97
99
Total
Men
99
97
99
Women
100
98
98
Total
99
98
99
Note 1: The 2023 figures include all Navigator Group activities except Employees at the new Tissue unit in Spain (Ejea).
Note 2: Only Employees who meet the following eligibility criteria are considered for performance assessment: i) all Employees working for Navigator on the basis of an
employment contract (with or without fixed term); ii) who joined the Group at least 6 months previously (up to and including 30 June of the year in question); iii) who have
effectively worked for more than 1/4 of the working days in the year in question, i.e. for 66 working days or more; iv) Employees not hired on a temporary basis and/or as
service providers, who are not bursary holders, interns or trainees.
Note 3: The performance assessment report for Employees in each year (N) relates to their performance in the previous year (N-1), insofar that at the reporting date not all the
data referring to Employee assessments was yet consolidated.
GRI 405: DIVERSITY AND EQUAL OPPORTUNITY
405-1 Diversity of governance bodies and employees
Chap. 3.2 Governance Model
Chap. 9.3 Our performance (Social Indicators – Diversity)
Diversity by age group per employee category:
Employees by functional category and gender (%)
2023
2022
2021
Governance Bodies
Men
64.3
75.0
76.9
Women
35.7
25.0
23.1
Top Management
Men
84.8
89.5
83.3
Women
15.2
10.5
16.7
Senior Management
Men
60.6
60.1
64.4
Women
39.4
40.0
35.6
Middle Management
Men
68.3
72.7
74.9
Women
31.7
27.3
25.1
Operatives
Men
90.8
91.2
90.0
Women
9.2
8.8
10.0
Total
Men
81.0
82.3
83.0
Women
19.0
17.7
17.0
Employees by functional category and age (%)
2023
2022
2021
Governance Bodies
<30 years
0.0
0.0
0.0
30-50 years
21.4
0.0
15.4
> 50 years
78.6
100.0
84.6
Top Management
<30 years
0.0
0.0
0.0
30-50 years
27.3
31.6
50.0
> 50 years
72.7
68.4
50.0
Senior Management
<30 years
12.9
11.6
8.0
30-50 years
61.9
63.0
65.0
> 50 years
25.2
25.5
26.9
Middle Management
<30 years
11.7
11.5
9.5
30-50 years
56.7
54.4
52.4
> 50 years
31.5
34.1
38.0
Operatives
<30 years
13.7
13.3
11.1
30-50 years
63.7
62.7
62.7
> 50 years
22.6
24.0
26.2
Total
<30 years
13.0
12.5
10.2
30-50 years
61.8
61.1
61.5
> 50 years
25.2
26.4
28.3
Note 1: The figures refer to the number of Employees at 31 December each year.
Note 2: The figures for 2021 and 2022 were corrected due to the inclusion of figures for Employees in Mozambique. The 2023 figures include all Navigator Group activities
except Employees at the new Tissue unit in Spain (Ejea).
405-2 Ratio of basic salary and remuneration of women to men
Annual Report 2023 · Management Report 335
Chap. 9.3 Our performance (Social Indicators – Diversity)
Gender pay ratio
2023
2022
2021
Portugal
Governance Bodies
0.25
0.31
0.28
Top Management
0.72
0.74
0.68
Senior Management
0.75
0.68
0.75
Middle Management
0.67
0.66
0.66
Operatives
0.84
0.89
0.88
Subtotal
0.47
0.51
0.47
Mozambique
Governance Bodies
-
-
-
Top Management
-
-
-
Senior Management
0.60
0.79
0.86
Middle Management
0.68
0.66
0.48
Operatives
0.98
1.10
0.96
Subtotal
0.62
0.78
0.81
Note 1: This indicator is calculated considering the remuneration at 31 December of the reporting year. In Portugal, this remuneration includes five items: basic salary,
exemption from working hours allowance, shift allowance, complementary remuneration and performance of duties allowance. In calculating the indicator for Mozambique, the
following items were considered: base salary, meal allowance, extended travel allowance, expense allowance, monthly bonus, overtime, salary adjustment (paid once every two
months), availability.
Note 2: In the case of Employees on operations in Mozambique, only Mozambican Employees were considered for the functional categories of Middle and Senior Management.
There is only one Employee in the top management category, and so this is not considered in reporting this category.
Note 3: The data included in this indicator do not consider Employees in the international offices or in operations at the new Tissue unit (Ejea) in Spain.
At Navigator we apply no pay differential between men and women, and the entry-level salary is the same for both genders, male and female. The pay
ratio presented considers the macro level aggregator, and so, for each of these levels, we naturally have different sub-groups and distinct professional
pathways, which has an impact on the average figures obtained for the pay ratio and as such the values reported .
GRI 406: DISCRIMINATION
406-1 Incidents of discrimination and corrective actions taken
Incidents of discrimination during the reporting period
2023
2022
2021
No. incidents reviewed by the organisation
0
1
0
No. remediation plans being implemented
0
0
0
No. remediation plans that have been implemented, with results reviewed through
routine internal management review processes
0
0
0
No. incidents resolved (incidents for which no other action is needed or where the
underlying circumstances that gave rise to it have ceased to exist)
0
1
0
Confirmed incidents of discrimination are established through the receipt, analysis and investigation of reports through the Whistleblowing Channel.
Reports are processed as established in the Whistleblowing Regulation and responsibility for the procedure lies with the Whistleblowing Committee.
GRI 407: FREEDOM OF ASSOCIATION AND COLLECTIVE BARGAINING
407-1 Operations and Suppliers in which the right to freedom of association and collective bargaining may be at risk
Chap. 6.5.1 Responsible business conduct
In late 2022 we approved out Human Rights Policy, which provides for implementation of due diligence procedures, and in 2023 a new Third-Party
Integrity Verification System was implemented, which entails identifying the ESG risks of business partners with which we have dealings.
GRI 408: CHILD LABOUR
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408-1 Operations and Suppliers at significant risk for incidents of child labour
Chap. 6.5.1 Responsible business conduct
In late 2022 we approved out Human Rights Policy, which provides for implementation of due diligence procedures, and in 2023 a new Third-Party
Integrity Verification System was implemented, which entails identifying the ESG risks of business partners with which we have dealings.
GRI 409: FORCED OR COMPULSORY LABOUR
409-1 Operations and Suppliers at significant risk for incidents of forced or compulsory labour
Chap. 6.5.1 Responsible business conduct
In late 2022 we approved out Human Rights Policy, which provides for implementation of due diligence procedures, and in 2023 a new Third-Party
Integrity Verification System was implemented, which entails identifying the ESG risks of business partners with which we have dealings.
GRI 410: SECURITY PRACTICES
As per standard published in 2016
410-1 Security personnel trained in human rights policies or procedures
At Navigator, we recognise the fundamental importance of Human Rights and of training our Employees in these issues. Although nor specific training
was provided in Human Rights policies or procedures for security staff in the last year, training was provided to all Employees in several internal
procedures that include these topics. Training on this topic will be stepped up in the next two years.
GRI 413: LOCAL COMMUNITIES
413-1 Operations with local community engagement, impact assessments, and development programs
Chap. 6.4.3 Community relations
Considering a total of five operations (four industrial complexes and forestry operations as a whole), 100% of Navigator's operations feature
Community engagement, impact assessment and/or local development programmes, in particular:
Types of programmes considered
i. Social impact assessments, including gender impact assessments, based on participatory processes
No
ii. Environmental impact assessments and ongoing monitoring
Yes
iii. Public disclosure of results of environmental and social impact assessments
Yes
iv. Local community development programs based on local communities’ needs
Yes
v. Stakeholder engagement plans based on stakeholder mapping
Yes
vi. Broad based local community consultation committees and processes that include vulnerable groups
Yes
vii. Works councils, occupational health and safety committees and other worker representation bodies to deal with impacts
Yes
viii. Formal local community grievance processes
Yes
NB: In the case of Portucel Moçambique, there are type 1. programmes, and no type iii. programmes.
413-2 Operations with significant actual and potential negative impacts on local Communities
Chap. 6.4.3 Community relations
At Navigator, we have identified operations with significant negative impacts (real and potential) on local Communities, in Aveiro, Figueira da Foz and
Setúbal.
Paper and pulp production companies are classified as establishments with a high hazard level under Directive 2012/18/EU, of the European Parliament
and of the Council, of 4 July 2012 (Seveso Directive III), transcribed by Decree-Law 150/2015 of 5 August. The negative impacts have to do with the
fact that the facilities store chemical substances which may affect the environment and human health in general. Our mills with this classification
implement methodologies and procedures to ensure that hazards are identified, to assess the associated risks and to analyse the impact of these risks
to the surrounding area. These methodologies and procedures are assessed and validated by the national authority with powers in this area
(Portuguese Environment Agency), and confirmed each year by an audit.
GRI 414: SUPPLIER SOCIAL ASSESSMENT
414-1 New Suppliers that were screened using environmental criteria
Chap. 6.5.1 Responsible business conduct
Chap. 6.5.4 Supply chain management
414-2 Negative environmental impacts in the supply chain and actions taken
Chap. 6.5.1 Responsible business conduct
Chap. 6.5.4 Supply chain management
In late 2022 we approved out Human Rights Policy, which provides for implementation of due diligence procedures, and in 2023 a new Third-Party
Integrity Verification System was implemented, which entails identifying the ESG risks of business partners with which we have dealings.
GRI 415: PUBLIC POLICY
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415-1 Political contributions
Chap. 6.5.1 Responsible business conduct
We make no contributions to political parties.
GRI 417: MARKETING AND LABELLING
417-1 Requirements for product and service information and labelling
Chap. 6.5.3 Customer Management
We comply with Regulation (EU) 453/2010, of 20 May, publishing a technical safety datasheet for each product detailing its main features, applications
and recommendations for use and recycling. We accordingly use logos on all our products referring to certifications, such as Ecolabel, FSC, PEFC, and
others.
417-2 Incidents of non-compliance concerning product and service information and labelling
Chap. 6.5.3 Customer Management
There were no recorded instances in the reporting period of non-conformity in relation to labelling and product/service information.
417-3 Incidents of non-compliance concerning marketing communications
Chap. 6.5.3 Customer Management
There were no recorded instances in the reporting period of non-conformity in relation to marketing communication.
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10.3. ESRS Correspondence Table
Dimension
ESRS Standard
Material issue
Location
Environmental
ESRS E1 Climate change
Climate change and CO
2
sequestration
Energy and raw material management
Chap. 6.3.2
ESRS E2 Pollution
Not identified as material
---
ESRS E3 Water and marine
resources
Water management
Chap. 6.3.4
ESRS E4 Biodiversity and
ecosystems
Biodiversity conservation
Chap. 6.3.3
ESRS E5 Resource use and circular
economy
Circular economy
Energy and raw material management
Chap. 6.3.5
No correspondence
Sustainable forest management
Chap. 6.3.3
Social
ESRS S1 Own workforce
Talent management and development of human
capital
Health, safety and well-being
Responsible governance
(*)
Chap. 6.4.1
Chap. 6.4.2
Chap.6.5.1
ESRS S2 Workers in the value chain
Supply chain management
Chap. 6.5.4
ESRS S3 Affected communities
Community relations
Chap. 6.4.3
ESRS S4 Consumers and end-users
Customer Management
Chap. 6.5.3
Governance
ESRS G1 Business conduct
Responsible governance
(*)
Supply chain management
Chap. 6.5.1
Chap. 6.5.4
No correspondence
Creating sustainable value
Bioproducts
Innovation, technology and R&D; and Management
Chap. 5
Chap. 6.5.2
Chap. 6.5.2
(*)
Encompasses the following topics: diversity, fairness and inclusion, human rights, ethics and transparency and risk management and
business continuity.
Standard
Ref.
Name of requirement
Location
ESRS 2 GENERAL
DISCLOSURES
BP-1
General basis for preparation of sustainability statements.
Chap. 6.1
GRI Table (2-2)
BP-2
Disclosures in relation to specific circumstances.
Chap. 6.1
GOV-1
The role of the administrative, management and supervisory bodies.
Chap. 3.2, 6.2.1
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Standard
Ref.
Name of requirement
Location
GOV-2
Information provided to and sustainability matters addressed by the
undertaking’s administrative, management and supervisory bodies.
Chap. 6.2.1
GOV-3
Integration of sustainability-related performance in incentive schemes.
Chap. 6.2.1
GOV-4
Statement on due diligence.
Not reported
GOV-5
Risk management and internal controls over sustainability reporting.
Not reported
SBM-1
Strategy, business model and value chain.
Chap. 2.2, 3.1, 6.2.4,
6.2.5, 6.4.1
GRI Table (2-7, 401-1)
SBM-2
Interests and views of Stakeholders.
Chap. 6.2.6
SBM-3
Material impacts, risks and opportunities and their interaction with
strategy and business model.
Chap. 6.2.2, 6.2.4
IRO-1
Description of the processes to identify and assess material impacts,
risks and opportunities.
Chap. 3.3, 6.2.2, 6.2.3
IRO-2
Disclosure requirements in ESRS covered by the undertaking’s
sustainability statement.
This table
MDR-P
Policies adopted to manage material sustainability matters.
Chap. 6.2.1
MDR-A
Actions and resources in relation to material sustainability matters.
Chap. 5, 6.3.2, 6.3.3,
6.3.4, 6.3.5, 6.4.1, 6.4.2,
6.4.3, 6.5.1, 6.5.2, 6.5.3,
6.5.4
MDR-M
Metrics in relation to material sustainability matters.
Chap. 5, 6.2.4, 6.3.2,
6.3.3, 6.3.4, 6.3.5, 6.4.1,
6.4.2, 6.4.3, 6.5.1, 6.5.2,
6.5.3, 6.5.4
MDR-T
Tracking effectiveness of policies and actions through targets.
Chap. 5, 6.2.4, 6.3.2,
6.3.3, 6.3.4, 6.3.5, 6.4.1,
6.4.2, 6.4.3, 6.5.2, 6.5.3,
6.5.4
ESRS E1
CLIMATE CHANGE
GOV-3
(ESRS 2)
Integration of sustainability-related performance in incentive schemes.
Chap. 6.2.1, 10.6
E1-1
Transition plan for mitigating climate change
Chap. 6.3.2
SBM-3
(ESRS 2)
Material impacts, risks and opportunities and their interaction with
strategy and business model.
Chap. 6.2.2, 6.3.2, 10.6
IRO-1
(ESRS 2)
Description of the processes to identify and assess climate-related
material impacts, risks and opportunities.
Chap. 3.3, 10.6
E1-2
Policies related to climate change mitigation and adaptation.
Chap. 6.3.2
E1- 3
Actions and resources in relation to climate change policies.
Chap. 6.3.2
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Standard
Ref.
Name of requirement
Location
E1-4
Targets related to climate change mitigation and adaptation.
Chap. 6.3.2
E1-5
Energy consumption and mix.
Chap. 6.3.2
GRI Table (302-1/3)
E1-6
Gross Scopes 1, 2, 3 and Total GHG emissions.
Chap. 6.3.2
GRI Table (305-1/2/3/4)
E1-7
GHG removals and GHG mitigation projects financed through carbon
credits.
Not reported
E1-8
Internal carbon pricing.
Not reported
E1-9
Anticipated financial effects from material physical and transition risks
and potential climate-related opportunities.
Chap. 10.6
ESRS E2
POLLUTION
IRO-1
(ESRS 2)
Description of the processes to identify and assess pollution-related
material impacts, risks and opportunities.
Non-material
E2-1
Policies related to pollution.
Non-material
E2-2
Actions and resources related to pollution
Non-material
E2-3
Targets related to pollution.
Non-material
E2-4
Pollution of air, water and soil.
Non-material
E2-5
Substances of concern and substances of very high concern.
Non-material
E2-6
Anticipated financial effects from pollution-related impacts, risks and
opportunities.
Non-material
ESRS E3
WATER AND
MARINE
RESOURCES
IRO-1
(ESRS 2)
Description of the processes to identify and assess material water and
marine resources-related impacts, risks and opportunities.
Chap. 3.3, 10.6
E3-1
Policies related to water and marine resources.
Chap. 6.3.4
E3-2
Actions and resources related to water and marine resources.
Chap. 6.3.4
E3-3
Targets related to water and marine resources.
Chap. 6.3.4
E3-4
Water consumption.
Chap. 6.3.4
GRI Table (303-3/4/5)
E3-5
Anticipated financial effects from water and marine resources-related
impacts, risks and opportunities.
Chap. 6.3.4
ESRS E4
BIODIVERSITY
AND
ECOSYSTEMS
E4-1
Transition plan and consideration of biodiversity and ecosystems in
strategy and business model
Not reported
SBM 3
(ESRS 2)
Material impacts, risks and opportunities and their interaction with
strategy and business model.
Chap. 6.2.2, 6.3.3
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Standard
Ref.
Name of requirement
Location
IRO-1
(ESRS 2)
Description of the processes to identify and assess biodiversity and
ecosystems-related material impacts, risks and opportunities.
Chap. 3.3
E4-2
Policies related to biodiversity and ecosystems.
Chap. 6.3.3
E4-3
Actions and resources related to biodiversity and ecosystems.
Chap. 6.3.3
E4-4
Targets related to biodiversity and ecosystems.
Chap. 6.3.3
E4-5
Impact metrics related to biodiversity and ecosystems.
Chap. 6.3.3
E4-6
Anticipated financial effects from biodiversity and ecosystems-related
impacts, risks and opportunities.
Not reported
ESRS E5
RESOURCE USE
AND CIRCULAR
ECONOMY
IRO-1
(ESRS 2)
Description of the processes to identify and assess material resource
use and circular economy-related impacts, risks and opportunities.
Chap. 3.3
E5-1
Policies related to resource use and circular economy.
Chap. 6.3.5
E5-2
Actions and resources related to resource use and circular economy.
Chap. 6.3.5
E5-3
Targets related to resource use and circular economy.
Chap. 6.3.5
E5-4
Resource inflows.
Chap. 6.3.5
GRI Table (301-1/2)
E5-5
Resource outflows.
Chap.6.3.5
GRI Table (306-3/4/5)
E5-6
Anticipated financial effects from resource use and circular economy-
related impacts, risks and opportunities.
Not reported
ESRS S1
OWN
WORKFORCE
SBM-2
(ESRS 2)
Interests and views of Stakeholders.
Chap. 6.2.6, 6.4.1, 6.5.1
SBM-3
(ESRS 2)
Material impacts, risks and opportunities and their interaction with
strategy and business model.
Chap. 6.4.1, 6.4.2
S1-1
Policies related to own workforce.
Chap. 6.4.1, 6.4.2
S1-2
Processes for engaging with own workers and workers’ representatives
about impacts.
Chap. 6.2.6, 6.4.1, 6.4.2
S1-3
Processes to remediate negative impacts and channels for own workers
to raise concerns.
Chap. 6.5.1
S1-4
Taking action on material impacts on own workforce, and approaches
to mitigating material risks and pursuing material opportunities related
to own workforce, and effectiveness of those actions.
Chap. 6.4.1, 6.4.2
S1-5
Targets related to managing material negative impacts, advancing
positive impacts, and managing material risks and opportunities.
Chap. 6.4.1, 6.4.2
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Standard
Ref.
Name of requirement
Location
S1-6
Characteristics of the undertaking’s employees.
Chap. 6.4.1
GRI Table (2-7, 401-1)
S1-7
Characteristics of non-employee workers in the undertaking’s own
workforce.
GRI Table (2-8)
S1-8
Collective bargaining coverage and social dialogue.
Chap. 6.4.1
GRI Table (2-30)
S1-9
Diversity metrics.
Chap. 6.5.1
GRI Table (405-1)
S1-10
Adequate wages.
GRI Table (202-1)
S1-11
Social protection.
GRI Table (401-2)
S1-12
Persons with disabilities.
Not reported
S1-13
Training and skills development metrics.
Chap. 6.4.1
GRI Table (404-1/3)
S1-14
Health and safety metrics.
Chap. 6.4.2
GRI Table (403-8/9.10)
S1-15
Work-life balance metrics.
Chap. 6.5.1
GRI Table (401-3)
S1-16
Compensation metrics (pay gap and total compensation)
GRI Table (2-21, 405-2)
S1-17
Incidents, complaints and severe human rights impacts.
Chap. 6.5.1
GRI Table (406-1)
ESRS S2
WORKERS IN THE
VALUE CHAIN
SBM-2
(ESRS 2)
Interests and views of Stakeholders.
Chap. 6.2.6
SBM-3
(ESRS 2)
Material impacts, risks and opportunities and their interaction with
strategy and business model.
Chap. 6.2.2, 6.3.3, 6.4.2,
6.5.4
S2-1
Policies related to value chain workers.
Chap. 6.3.3, 6.4.2, 6.5.4
S2-2
Processes for engaging with value chain workers about impacts.
Chap. 6.2.6, 6.3.3, 6.5.4
S2-3
Processes to remediate negative impacts and channels for value chain
workers to raise concerns.
Chap. 6.5.1
S2-4
Taking action on material impacts on value chain workers, and
approaches to managing material risks and pursuing material
opportunities related to value chain workers, and effectiveness of those
actions.
Chap. 6.5.4
GRI Table (403-7)
S2-5
Targets related to managing material negative impacts, advancing
positive impacts, and managing material risks and opportunities.
Chap. 6.2.6
ESRS S3
AFFECTED
SBM-2
(ESRS 2)
Interests and views of Stakeholders.
Chap. 6.4.3
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Standard
Ref.
Name of requirement
Location
COMMUNITIES
SBM-3
(ESRS 2)
Material impacts, risks and opportunities and their interaction with
strategy and business model.
Chap. 6.4.3
S3-1
Policies relating to affected communities.
Chap. 6.4.3
S3-2
Processes for engaging with affected communities about impacts.
Chap. 6.2.6, 6.3.3, 6.4.3
S3-3
Processes to remediate negative impacts and channels for affected
communities to raise concerns.
Chap. 6.5.1
S3-4
Taking action on material impacts on affected communities, and
approaches to managing material risks and pursuing material
opportunities related to affected communities, and effectiveness of
those actions.
Chap. 6.4.3
S3-5
Targets related to managing material negative impacts, advancing
positive impacts, and managing material risks and opportunities.
Chap. 6.4.3
ESRS S4
CONSUMERS AND
END-USERS
SBM-2
(ESRS 2)
Interests and views of Stakeholders.
Chap. 6.5.3
SBM-3
(ESRS 2)
Material impacts, risks and opportunities and their interaction with
strategy and business model.
Chap. 6.5.3
S4-1
Policies related to consumers and end-users.
Chap. 6.5.1
S4-2
Processes for engaging with consumers and end-users about impacts.
Chap. 6.2.6
S4-3
Processes to remediate negative impacts and channels for consumers
and end-users to raise concerns.
Chap. 6.5.1
S4-4
Taking action on material impacts on consumers and end-users, and
approaches to managing material risks and pursuing material
opportunities related to consumers and end-users, and effectiveness of
those actions.
Chap. 6.5.3
S4-5
Targets related to managing material negative impacts, advancing
positive impacts, and managing material risks and opportunities.
Chap. 6.5.3
ESRS G1
BUSINESS
CONDUCT
GOV-1
(ESRS 2)
The role of the administrative, supervisory and management bodies.
Chap. 6.5.1
IRO-1
(ESRS 2)
Description of the processes to identify and assess material impacts,
risks and opportunities.
Chap. 6.5.1
G1-1
Corporate culture and business conduct policies.
Chap. 6.5.1
G1-2
Managing relations with Suppliers.
Chap. 6.5.4
G1-3
Prevention and detection of corruption and bribery.
Chap. 6.5.1
GRI Table (205-2)
G1-4
Confirmed incidents of corruption or bribery.
Chap. 6.5.1
GRI Table (2-27, 205-3)
G1-5
Political influence and lobbying activities.
Chap. 6.5.1
GRI Table (415-1)
G1-6
Payment practices.
Not reported
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10.4. Table summarising World Economic Forum’s Stakeholder
Capitalism core metrics
The following table presents The Navigator Company's response to the WEF framework (“core metrics”), through alignment
between the metrics established by WEF and the GRI metrics (on which the new framework is based).
Although for some of these metrics there is no corresponding GRI metric, the Company responds indirectly through the content
concerning the topics in question, presented in its sustainability reporting.
Pillar
Topic
Metrics
Alignment with GRI
Governance
Governance Purpose
Purpose established
GRI 2-12
Quality of Governance Body
Governance Body Composition
GRI 2-9
GRI 405-1
Stakeholder Engagement
Stakeholder Engagement
GRI 2-12
GRI 2-29
GRI 3-2
Ethical behaviour
Anti-corruption
GRI 205-2
GRI 205-3
Ethical behaviour
Advice mechanisms
GRI 2-26
Risks and Opportunities
Integration of risks and opportunities
No associated GRI
Planet
Climate Change
Greenhouse Gas Emissions (GHG)
GRI 305-1/2/3
Implementation of the recommendations from the TCFD
(Task Force on Climate-related Financial Disclosures)
No associated GRI
Biodiversity Loss
Land use and ecological protection focused on protected
areas or key biodiversity areas.
GRI 304-1
Fresh water availability
Water consumption and withdrawal in water-stressed
areas
GRI 303-3/5
People
Dignity and equality
Diversity and inclusion: % of Employees by occupational
category, gender, age
range and other diversity categories
GRI 405-1 and 405-2
Pay ratio between men and women, ethnic minorities and
majorities, and other groups.
Ratio (%) of entry-level wage compared to national
minimum wage, by gender.
GRI 202-1
Ratio (%) of CEO’s total annual compensation to median
total annual compensation of all Employees (excluding
the CEO)
GRI 2-21
Risk for incidents of child, forced or compulsory labour
GRI 408-1 and 409-1
Health and well-being
Health and safety (%).
Number and rate of work-related injuries, high-
consequence injuries and fatalities.
GRI 403-9
An explanation of how the organization facilitates
workers’ access to non-occupational medical and
healthcare services and the scope of access provided.
GRII 403-6
Skills for the future
Training hours (no.) per Employee
GRI 404-1
Training investment (€) per Employee
No associated GRI
Prosperity
Employment and wealth
generation
Rate of Employee turnover (%), by age group, gender, or
other indicators of diversity.
GRI 401-1
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Pillar
Topic
Metrics
Alignment with GRI
Economic contribution: Direct economic value generated
and distributed (EVG&D) by revenue; operating costs;
employee wages and benefits, payments to providers of
capital, payments to government (by country) and
community investment.
GRI 201-1
Financial assistance received from government: tax
benefits and credits; subsidies; grants for investment,
research and development and other relevant types of
assistance, among others.
GRI 201-4
Financial investment contribution Total capital
expenditures or investment in capital goods (CapEx)
undepreciated, supported by narrative to describe the
company’s investment strategy.
No associated GRI
Share buybacks + Dividend payments supported by
narrative to describe the Company’s strategy for returns
of capital to shareholders.
No associated GRI
Innovation in better
products and services
R&D expenditure
No associated GRI
Total costs relating to development
Community and social
vitality
Taxes: The total global tax borne by the company,
including corporate income taxes, property taxes, non-
creditable VAT and other sales taxes, employer-paid
payroll taxes and other taxes that constitute costs to the
company, by category of taxes.
GRI 201-1 and 207-4
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10.5. Verification of information - Independent Limited Reliability
Assurance Report – KPMG
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10.6. Alignment with TFCD (Task Force on Climate-related
Financial Disclosures) recommendations
Introduction
Climate change is perhaps the most fundamental challenge faced by modern society, as its impacts are felt across society, the
economy and natural resources. Stakeholders are increasingly interested in consulting consistent, comparable, reliable and clear
information related to climate risks and opportunities, and their financial impact on an organisation.
In 2015, the Financial Stability Board (FSB) set up the Task Force on Climate-
related Financial Disclosures (TCFD) with the aim of promoting transparency and
helping financial entities and investors to understand climate risks, opportunities
and impacts, by developing a set of clear and consistent recommendations on the
disclosure of information related to climate change.
The Navigator Company has continued to align its reporting with the TCFD
recommendations, which are organised around four pillars, representing the
central elements in how organisations operate: Governance, Strategy, Risk
Management and Metrics and Targets.
To this end, the Group discloses information on its strategic approach and its
processing for managing corporate climate risks, in accordance with the TCFD
recommendations, assessing the impacts of climate change and presenting the
responses for adaptation.
Our journey
The timeline below gives an overview of how we have integrated management of climate issues into the Group’s strategy and
operations over the years. We have striven to develop our assessment of risks and opportunities relating to climate change, to
improve the quality of our scenario modelling and to develop our approach to managing and mitigating risks throughout the
Group.
2005
2017
2021
2023
Publication of 1
st
sustainability report:
“The Road to
Sustainability”
Submission and
publication of first
response
to CDP Climate Change
Full inventory of
GHG emissions and
participation in SBTi
Publication of first report
aligned with TCFD
2016
2020
2022
2035
Approval of
corporate energy
efficiency
programme
Launch of Navigator’s
2030 Agenda and
Carbon Neutrality
Roadmap
Validation of targets
and reduction of GHG
emissions, scopes 1, 2
and 3, by SBTi
Targets for reducing
scope 1, 2 and 3
emissions(and limiting
temperature increase
to 1.5ºC)
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In 2023, Navigator continued to implement the TCFD disclosure recommendations, consolidating the Company’s management of
climate risks and opportunities, through its strategic approach and risk management processes which enable it to respond to the
impacts. Achievements in this area in 2023 included:
• Fresh analysis of climate scenarios, in order to reassess Navigator’s strategies for adaptation and resilience to climate
change.
• More robust processes for identifying and assessing climate-related risks, ensuring these procedures are aligned with the
framework recommendations.
Reporting Recommendations
Reporting Recommendations
Additional reporting location
Governance
a) Describe the Board's oversight of climate-related risks and opportunities
Chapter 3.3
Corporate Governance Report
Part I C. III
b) Describe the role of Management in assessing and managing climate-related
risks and opportunities
Chapter 3.3
Corporate Governance Report
Part I C. III
Strategy
a) Describe the climate-related risks and opportunities the organisation has
identified over the short, medium, and long term
Chapters 3.3 and 6.2.2
Corporate Governance Report
Part I C. III
b) Describe the impact of climate-related risks and opportunities on the
organisation’s businesses, strategy, and financial planning
Chapter 6.2.2
Corporate Governance Report
Part I C. III
c) Describe the resilience of the organization’s strategy, taking into
consideration different climate-related scenarios, including a 2°C or lower
scenario
Chapters 3.1 and 6.2.2
Corporate Governance Report
Part I C. III
Risk Management
a) Describe the organization’s processes for identifying and assessing climate-
related risks
Chapter 3.3
Corporate Governance Report
Part I C. III
b) Describe the organization’s processes for managing climate-related risks
Chapter 3.3
Corporate Governance Report
Part I C. III
c) Describe how processes for identifying, assessing, and managing climate-
related risks are integrated into the organization’s overall risk management.
Chapter 3.3
Corporate Governance Report
Part I C. III
Metrics and Targets
a) Disclose the metrics used by the organization to assess climate-related risks
and opportunities in line with its strategy and risk management process
Chapters 6.2.2, 6.2.4, 6.3.2, 9.2, 10.1 and 10.2.3
Corporate Governance Report
Part I C. III
b) Disclose greenhouse gas (GHG) emissions (scopes 1, 2 and 3) and the
related risks
Chapters 6.3.2, 9.2, 10.1 and 10.2.3
Corporate Governance Report
Part I C. III
c) Describe the targets used by the organization to manage climate-related
risks and opportunities and performance against targets
Chapters 6.2.2, 6.2.4, 6.3.2 and 10.1
Corporate Governance Report
Part I C. III
Annual Report 2023 · Management Report 351
Governance
The Board of Directors (BD) is responsible for approving climate-related matters - which includes approval of plans and macro
measures relating to climate change - and delegates those powers to the Executive Board (EB).
The BD considers the impact of climate change-related issues as part of its decision-making process, both in terms of strategy and
with regard to structural capex projects able to equip the industrial units with the best available technologies for reducing climate
impacts.
During 2023, the Group improved its internal risk management process, reinforcing the Governance Model with the creation of
two additional bodies: the Risk Management Board and the Risk Management Committee.
The Risk Management Board, which reports to the BD, is principally responsible for overseeing the application of the risk policies
established by the Navigator Group, including climate-related risk policies.
The EB has powers to resolve on climate issues in connection with macro-decisions approved by the BD and is supported in its
decision-making by the Sustainability Division, the Risk Management Committee, the Risk Management Division and by two
bodies with “commission” status: the Sustainability Forum and the Environmental Council.
The topic of Risk Management is addressed and explored in the Group's Corporate Governance Report. This is the responsibility of
the Risk Management Division whose role is to monitor and control the main risks, which include climate risks, through a
systematic and structured approach that involves all operational areas, and identifies the control activities needed for each
situation.
In addition, the Risk Management Division and the Sustainability Division are jointly responsible for coordinating action related to
the Group climate change-related risks and opportunities and for submitting reports to the Executive Board to support its decision-
making.
The Risk Management Committee is principally focussed on: (1) permanent monitoring of Group risks, including climate risks; (2)
the need to empower the risk management process; (3) the specific expertise needed in risk management; (4) coordination
between the different Risk Management areas and subsystems.
Climate-related risks are monitored as part of our regular procedures for ensuring that appropriate mitigation measures are in
place and that they are regularly reviewed by the Risk Management Committee and the EB.
On the EB, the CEO and two other executive directors, with responsibility for Sustainability, Forestry, Wood Supplies, Research &
Development and the Environment, oversee climate-related issues in the exercise of their direct responsibilities.
The EB meets every week, and regularly addresses ESG and climate issues and the impact of climate change in its work. Climate
is one of the strategic focus areas of Navigator’s 2030 Agenda, and so climate commitments, goals and targets are regularly
monitored by the EB and submitted for its consideration. The commitments and targets contained in the Group’s 2030 Responsible
Business Agenda are also reviewed annually by the different business sectors and submitted for approval by the EB in the
Sustainability Report by the director responsible for Sustainability.
For further information on the directors’ qualifications and experience in the field of sustainability, we refer to the biographical
details, in chapter 3.3.
A training programme was designed in 2022 addressing the fundamental components of the ESG approach, including topics
relating to climate, such as the TCFD recommendations. This programme went into operation in 2023 and was provided in the first
instance to the executive directors and a number of Employees from key areas in the Group. Over the course of 2023, the training
was extended to other Group managers and those reporting directly to them. The purpose of this training is to build knowledge
and expertise on sustainability issues and in particular on climate change topics.
Annual Report 2023 · Management Report 352
The Board monitors and issues opinions on environmental aspects of
Navigator’s operations and draws up recommendations relating to the
environmental impact of our main ventures, on the basis of legal
provisions and the Navigator Group’s policy.
Environmental Council
Headed by the CEO, this initiative seeks to promote dialogue and
cooperation with Navigator's main Stakeholders, on relevant
Sustainability topics, bringing together an array of Portuguese and
international specialists. The members of the Environmental Council
also belong to the Sustainability Forum
Sustainability Forum
Oversees application of the risk management policy and operational
implementation of the risk management model (ERM - Enterprise Risk
Management) defined by the group, helping to promote a risk culture
within Navigator.
Risk Management Board
Executive Board
Board of Directors
Environmental Division
Central design of group-wide policies and implementation in the fields
of the Environment, Energy and Decarbonisation Projects, ensuring
alignment and synergies (includes corporate inventory of GHG
emissions, renewable energy programmes and management of carbon
neutrality roadmap).
Sustainability Division
The driving force behind the programmes for promoting sustainable
development, ensuring that Sustainability takes root in The Navigator
Company's corporate culture. The ESG topics include climate change.
Works under the supervision of the EB, coordinating its activities with
the Sustainability Forum and other Company divisions.
Risk Management Division
Responsible for identifying, assessing and reviewing risks, for
maintaining organisational structures, processes and controls, for
annual internal audit planning and implementation of a business
continuity management plan and coordination of the plan for
mitigating the risks identified.
Audit Board
Risk Management Committee
Responsible for managing the Group’s risks, ensuring implementation
of the Enterprise Risk Management model and coordination between
the different Risk Management areas and sub-systems.
Annual Report 2023 · Management Report 353
Set up in 2015, the mission of Navigator’s Sustainability Forum's is to promote dialogue and cooperation with its main
Stakeholders on relevant sustainable issues, including climate change, and to pave the way for successful management of these
issues, by assisting and advising the directors and executive directors as they carry through Navigator's sustainability agenda.
The Sustainability Forum is chaired by the Group’s CEO and its members comprise the other executive directors and a number of
external members, notably Prof. Filipe Duarte Santos, chairman of the National Council for the Environment and Sustainable
Development and an international expert in the field of climate change.
Meetings of the Sustainability Forum are generally held twice a year, with one session for permanent members only and the other
open to a range of Stakeholders, as an opportunity to build bridges of understanding and cooperation between these and the
Navigator Group. The impacts of climate change feature directly and indirectly on the agendas of Sustainability Forum meetings.
In 2023, the internal session of the Forum held a debate on “Climate and Nature: Challenges on issues of disclosure” and the
external session was given over to “Sustainability of Forest Raw Materials”, highlighting the importance of the role of forests in a
low carbon economic model.
In view of the specific nature of the Group’s business and the corresponding environmental concerns, the BD decided in 2008 to
set up an Environmental Council, to monitor and issue its opinion on environmental aspects of the Company’s operations, and to
make recommendations concerning the environmental impact of its main ventures, paying special attention to legal requirements,
licensing terms and the Navigator Group's policy in this area.
The Environmental Council has four members: Maria da Conceição Cunha (Chair), Ana Isabel Miranda, Maria Margarida Tomé and
Joaquim Poças Martins, all of them independent academics with an established technical and scientific reputation, whose areas of
expertise coincide with central environmental concerns relating to the Navigator Group’s operations as they exist today.
The Environmental Council deals directly with the Navigator Group's business divisions, through meetings at industrial sites, in the
main forestry plantations and at the Group's research institute, RAIZ.
One meeting of the Environmental Council was held in 2023, which among other issues addressed questions such as compliance
with legal obligations relating to the environment and Raiz’ research into the material topic of water.
Strategy
One of the most important aspects of building a Company that is resilient and prepared for the future is to define a robust
strategy that follows a long-term approach to management of climate risks. Through its responsible business strategy, Navigator
recognises the importance that climate-related issues can have for the sustainability of its business, and has sought to integrate
the TCFD recommendations into its management of the impacts of climate risks, in particular by:
• Disclosing information on climate risks and the steps taken to manage them, ensuring consistency and transparency in
clear reporting and helping to increase Stakeholder trust;
• Improving risks management, by identifying and monitoring climate risks, in order to support decision-making and the
implementation of measures to minimise the Company’s exposure to the risks identified and the associated impacts;
• Identifying business opportunities, by anticipating and responding to climate trends, seeking to make Navigator more
competitive;
• Respond to the expectations and needs of Stakeholders, including Investors and Customers committee to climate issues.
Annual Report 2023 · Management Report 354
Climate-related Risks and Opportunities
Navigator recognises the importance of disclosing the real and potential impacts of climate-related risks and opportunities on its
Business, Strategy and Financial Planning, in order to ensure consistency and transparency in reporting, contributing positively to
the company’s reputations on climate issues. Through a clear understanding of climate opportunities and risks, the Group will be
able to implement appropriate measures able to secure the sustainability of its business, at the same time as it develops solutions
and products that support its climate ambitions.
Climate change-related risks are also reflected in the Group’s accounting policies and financial reporting. The impact of climate
change is considered in estimates of future cash flows used to assessment impairment of goodwill, as indicated in note 3.1 to the
Consolidated Financial Statements. As mentioned in note 3.8, climate change is also included as a factor affecting the assumptions
used in valuing the Group's biological assets. The Group's accounting policies also reflect the impact of considerations resulting
from climate change on valuation of the estimated useful economic lives of Tangible fixed assets, as stated in note 3.7.
As recommended by the TCFD, in 2002 Navigator identified and assessed the main physical risks, acute or chronic, and the
transition risks, which consist of regulatory, technological, market and reputational risks. In addition, the Group identified climate-
related opportunities, with potential positive impacts for business:
Transition Risks
Category
Description of Risk
Potential Impact
Legal and
Regulatory
New and stricter environmental and
climate regulations due to increasing
maturity of global targets
• Increased capex and investment needed to comply with
environmental, climate and energy transition regulations.
• Increased logistical costs, due to regulations promoting
decarbonisation in transportation (ETS).
• Adverse effect on business due to approval of regulations
limiting or discriminating against production forests as
source of wood raw materials, in relation to other land
uses, without taking consideration of criteria of good
management or economic and environmental value.
• Increase in costs associated with compliance with
standards requiring rehabilitation of woodlands and
improved management of native forests as national
measures for combating climate change.
• Reduction in production of raw material and consequent
increase in acquisition costs, as a result of legal restrictions
on forestry production.
Higher carbon price and reduction in
availability of licenses under EU-ETS.
• Increased costs of CO
2
emissions for paper and cellulose
industry.
Biomass ceasing to be considered a
sustainable alternative to fossil fuels
• Increase in costs of CO
2
emissions, due to emissions of
biogenic carbon being counted as fossil emissions for the
purposes of EU-ETS.
Market
Reputation
Increase in cost of raw materials
• Difficulties in securing supplies of raw materials (e.g.
wood), energy and water.
• Increase in requirements imposed on production (e.g.
quality of waste water, solid waste, associated emissions,
and others).
• Increase in capex directly related to operations or, indirectly,
through higher prices for transport, energy and other
inputs/raw materials needed to produce paper, cellulose and
other forest-based products.
Annual Report 2023 · Management Report 355
Changing consumer preferences
• Need to adapt portfolio in view of consumer expectations
and demand
• Reduction in revenues associated with demand from
consumers for other market solutions substituting paper
Pressure from society to restrict/impose
limits on production forest areas as
opposed to conservation forests/forests
without wood extraction.
• Adverse effect on business due to implementation of
restrictions/limits on production forest areas as opposed to
conservation forests/forests without wood extraction.
Legal and
Regulatory
New and stricter environmental and
climate regulations due to increasing
maturity of global targets
• Increased capex and investment needed to comply with
environmental, climate and energy transition regulations.
• Increased logistical costs, due to regulations promoting
decarbonisation in transportation (ETS).
• Adverse effect on business due to approval of regulations
limiting or discriminating against production forests as
source of wood raw materials, in relation to other land
uses, without taking consideration of criteria of good
management or economic and environmental value.
• Increase in costs associated with compliance with
standards requiring rehabilitation of woodlands and
improved management of native forests as national
measures for combating climate change.
• Reduction in production of raw material and consequent
increase in acquisition costs, as a result of legal restrictions
on forestry production.
Physical Risks
Category
Climate Element
Description of Risk
Potential Impact
Acute
Temperature
Increase in severity and
frequency of forest fires.
• Reduction in production capacity due to loss of or
damage to forests.
• Failure in wood supplies.
• Loss of biodiversity in woodlands.
• Reduction in revenues due to reduction in output
and sales.
• Increased silviculture costs for replanting
damaged forests.
Water resources
Drought conditions as a result of
water shortages at the site of the
Group’s industrial complexes.
• Restrictions on withdrawal and use of water, as a
result of reduced precipitation, halting operations
at the Group’s industrial complexes and resulting
in production losses and, consequently, reduced
revenues.
Wind
Water resources
Increased frequency and severity
of extreme climate events such
as storms or floods
• Reduction in production capacity and revenues,
due to losses in plantations and forestry output,
interruption of supply chains and production
operations, and transport difficulties.
• Damages and/or losses at existing facilities and
assets, and related costs.
Chronic
Water resources
Water shortages and changes in
quality of water sources used by
industrial complexes
• Reduction in quality and output due to
restrictions on water withdrawal and use which
may have an impact on operations of the Group's
industrial complexes.
• Need to invest in research into adaptation to
different chemical compositions in water sources
for cellulose mills.
Annual Report 2023 · Management Report 356
Category
Climate Element
Description of Risk
Potential Impact
Water resources
Rising average sea level
• Reduction in production capacity due to reduced
availability of land suitable for farming or
forestry.
• Damage to facilities and assets in coastal areas
(e.g., industrial complexes) and logistical
problems in distribution networks.
• Increase in insurance premiums and reduction in
potential availability of insurance for assets
located in areas subject to a high-risk risk of rising
average sea levels.
Temperature
Increase in the average
temperature leading to changes
in distribution of tree species and
increase susceptibility of forests
to outbreaks of pests and
diseases.
• Loss or damage of forests and plantations and
consequent reduction in revenues as a result of
low output and sales of products.
• Increase in silviculture costs to replant degraded
forests and replace with species adapted to pests.
Water resources
Change in precipitation patterns
and other climate factors leading
to loss of yields in production
forests.
• Reduction in production capacity due to loss of or
damage to forests and plantations and limitations
on use of water as a result of low rainfall
frequency, leading to consequent reduction in
revenues.
• Increase in cost of raw materials.
Opportunities
Category
Description of Opportunity
Potential Impact
Energy Source
Participation in voluntary carbon
market.
• Development of new revenue flows.
Substitution of fossil fuels by
renewable fuels (e.g., biomass and
hydrogen)
• Competitive positioning, in view of new climate regulations.
• Reduction in dependence on energy from fossil fuels, including
reduction in related costs and fluctuations in market prices.
Resilience
Regulations providing incentives for
reforestation and tree planting in
degraded areas
• Steps to preserve forests and raw material, contributing to
resilience to climate change.
Participation in renewable energy
programmes and adoption of energy
efficiency measures.
• Increase in market value through resilience planning (e.g.
infrastructure, land, buildings)
• Greater reliability of supply chain and capacity to operate under
varying conditions.
Products and
Services
Investment in R&D to develop new
forest-based products, low in carbon,
or which can substitute forest-based
products
• Adaptation of portfolio to impacts of climate change which
respond to consumer preferences, reinforcing competitive
advantage in the market.
• Increase in revenues due to demand for products with lower
emissions.
• Promotion of forest-based circular bioeconomy.
In 2023, as a result of collaboration between several sectors of the organisation, the company quantified the potential financial
impacts of four climate risks and one opportunity, on the basis of 3 climate scenarios and 2 time horizons. 2035 and 2050.
Annual Report 2023 · Management Report 357
Climate Scenarios
In keeping with the good practices in the TCFD Guidance on Scenario Analysis, the company used exploratory analyses
that describe a diverse range of plausible future states, which are used to assess potential climate-related risks and
uncertainties, and also to test the resilience of Navigator's strategy for the different future conditions adjacent to these same
scenarios.
Three climate scenarios were accordingly defined, on the basis of the IPCC scenarios, or Representative Concentration
Pathways (RCP) – RCP 2.6, RCP 4.5 and RCP 8.5. These were complemented by narratives of plausible futures, from the
“Sustainable Development Scenario” developed by the International Energy Agency and the Climate Scenario Tool for the
food, forestry and farming products sector, developed by the WBCSD, respectively called the green, yellow and red
scenario.
Physical risks tend to be more severe in the 4ºC climate scenario (red scenario), given that in this scenario the likelihood
of the occurrence and severity of extreme climate events is greater. However, in the 1.5°C and 2°C scenarios it is still
possible that some physical risks will be moderately severe. The transition risks are general more severe in the scenarios
which comply with the aims of the Paris Agreement, i.e., the 1.5ºC scenario (green scenario) and the < 2ºC scenario
(yellow scenario).
The table below provides details of the scenarios considered to analyse the resilience of the Navigator Group's business
strategy.
Scenario
Description of narrative
Time
horizon
Base model
Green
Rapid and orderly climate action.
Orderly transition path (emissions are reduced in line with climate
targets). Fair transition, balanced with SDGs, supported by innovation,
R&D and regeneration, high demand for BECCS.
2035-2050
• IPCC SSP 1- 2.6
(RCP 2.6)
• WBCSD – 1.5ºC
scenario based on
innovation
Yellow
Sudden and uncoordinated climate action
Disorderly transition pathway in which the response is abrupt, late and
neither early nor planned. Transformation of society under strong
legislative pressure regulating production forests and imposing of
restrictions and carbon taxes, BECCS.
2035-2050
• IPCC SSP 2- 4.5
(RCP 4.5)
• WBCSD – <2°C
scenario based on
planned policies
Red
Slow and uncoordinated climate action
Business-as-usual pathway without mitigation measures or clear and
coordinated transition policies. Very high energy and water costs, severe
damage resulting from extreme climate events.
2035-2050
• IPCC SSP 5-8.5
(RCP 8.5)
• WBCSD – >3ºC
scenario based on
historical tendencies
Annual Report 2023 · Management Report 358
Resilience of Navigator's strategy
For the financial year of 2023, the resilience of the Group’s strategy was studied by quantifying the financial impact of one
transition risks, three physical risks and one opportunity, considered as material for the business.
The results obtained from our analysis of climate scenarios suggest that our current strategy is resilient to climate-related risks
and opportunities. Nonetheless, these results have enabled us to identify critical areas to be monitored, in order to implement
mitigation and adaptation measures and also targets to strengthen Navigator's resilience to climate change.
In the future, the Group intends to continue to develop a more robust analysis of climate-related risks and opportunities, and also to
make progress in the analysis of financial impacts from climate change on its business in line with its sustainable business strategy.
Risks
Mitigation measures
implemented / planned
Time
horizon
Estimated
Impact
(M€/year)
Climate Scenario
Green
Yellow
Red
Physical
Risks
Change in
precipitation patterns
and other climate
factors leading to loss
of yields in forests
managed by
Navigator
75
• Geographical diversification of
wood supply
• Use of plants from genetic
improvement programme
• Sharing of technical know-how
concern best silviculture practices
with forestry producers
• Explore other sources of raw
material in order to ensure
business continuity.
2035
2050
2 – 5
●●
●●●
●●●●●
Water scarcity at the
locations of the
Group’s industrial
complexes
76
• Implementation of Water Use
Reduction Programme (WURP)
• Assessment of reuse of industrial
effluents in industrial processes
• Assessment of new sources of
fresh water
2035
2050
8 – 40
●●
●●●
●●●●●
Increase in severity
and frequency of
forest fires
77
• Geographical diversification of
wood supply
• Implement of best silviculture
practices for reducing the fire risk
• Use best available technologies for
fire fighting
2035
2050
2.5 - 4
●
●●●
●●●●
Transitional
Risks
Increased cost of
emission licenses in
EU-ETS system
78
• Setting of specific targets for
industrial operations based on
climate science
• Implementation of Navigator’s
Decarbonisation Roadmap
2035
2050
3 – 12
●●●●
●●●
●
Potential financial impact of climate-related risks
15.5 - 61
Caption:
●●●●● Most severe ● Least severe
75
Reduction in forest yields due to climate change (e.g. change in resulting pattern), resulting from analysis conducted internally by Raiz for scenarios RCP 4.5 and 8.5.
Annual impact calculated on the basis of opportunity costs associated with import of wood from outside Iberia, also considering lower pulp yields.
76
Reduction in water withdrawal licenses as a result of less water being available in the drainage basins and aquifers from which Navigator supplies itself. Analysis based on
hydrological modelling conducted by APA for RCP scenarios 4.5 and 8.5. Annual impact calculated on the basis of lost production resulting from lower volume of water
authorised for withdrawal.
77
Loss of wood in areas managed by Navigator as a result of forest fires. Annual impact calculated on the basis of opportunity costs associated with import of wood from
outside Iberia, and historical data for burned area in past 10 years.
78
Impact calculated on the basis of estimated estimated in Navigator's Decarbonisation Roadmap, award of free licenses up to 2035 and CO2 prices between 4 €/tCO2 (red
scenario) and 188 €/tCO2 (green scenario).
Annual Report 2023 · Management Report 359
Opportunities
Mitigation
measures
implemented /
planned
Time
horizon
Estimated
Impact
(M€/year)
Climate Scenario
Green
Yellow
Red
Opportunities
Investment in R&D to
develop new forest-
based products
79
2035
2050
30 - 40
●●●●●
●●●
●
Potential financial impact of climate-related opportunities
30-40
Caption:
●●●●● Most severe ● Least severe
Risk management
Process for identifying and assessing climate-related risks and opportunities.
In 2022, Navigator conducted a double materiality exercise to ensure that the Group’s sustainability priorities are still aligned with
those of its Stakeholders. This exercise entailed identifying material topics associated with climate change and the transition to a
low-carbon economy, energy efficiency, efficient water management, sustainable forestry management, biodiversity protection
and the circular economy.
All these topics, categorised as ‘critically important”, were addressed when identifying climate-related risks and opportunities.
As a member of the “Climate and Energy” and “Sustainable Reporting and Finance” working parties of BCSD Portugal, we took
part in a task-force (TF) on the subject to climate risks and opportunities, resulting in a new “Business guide to climate risks
and opportunities”. The expertise acquired in this process and from the WBCSD's “Climate-related Financial Impact Guide”
has been applied in the “impact pathways” approach. This is a way of calculating the financial impact of the risks and opportunities
identified, on the basis of different risk implications or opportunities for the Group. These implications may be socio-economic or
physical, such as the effects of climate change on ecosystems, market changes or new legal environmental requirements.
In prioritising climate-related risks and analysing their relative importance in relation to the organisation's other risks, climate-
related risk factors were assessed in the broader context of the Group's man risks (see chapter 3.3), given that they may amplify
or attenuate some of the main risks. This integrated approach ensures that climate-related risks and opportunities are
incorporated in Enterprise Risk Management, the Group’s risk management tool.
Integration of climate risks in management of Navigator’s general risks
Climate change-related risks are incorporated into the wider risks identified by Navigator. The management of these risks,
through mitigation controls and monitoring processes, is reflects on multiple fronts in the Group's risk management structure.
79
Development of new forest-based products and solutions to replace fossil-based plastic is an opportunity that may represent new business areas for Navigator, in the
short and medium term. In connection with the From Fossil 2 Forest Mobilising Agenda, Navigator has estimated potential Gross Value Added to be achieved in 2027 in
relation to 2020 as a result of these new products.
Annual Report 2023 · Management Report 360
The relevant climate risks and opportunities are identified and assessed by a multidisciplinary team, by means of a process of
continuous improvement. The annual review of these risks looks at the breadth of Group businesses, in all locations where it
operates and throughout its product portfolio. This entails consulting technical experts, whenever necessary.
Climate change-related risks and mitigation measures are viewed and updated annually, together with the Group’s other main
risks, and approved by the Executive Board.
The Group has several procedures for monitoring and mitigating these risks, through proactive management and early detection.
The Group has incorporated climate change considerations into its reforestation practices, biodiversity conservation and increased
monitoring during fire risk periods. Climate change-related risks and opportunities are managed and, whenever possible,
mitigated by the operational teams and through the capex programme.
For further information on the Navigator Group's risk management methodology, see chapter 3.3.
Metrics and goals
In order to face the challenges and opportunities of the decade ahead, Navigator has drawn up its 2030 Agenda, a responsible
business management agenda that seeks to increase the Group's positive contribution to creating value and sustainable growth in
a changing world. The 2030 Agenda has been built on the basis of the results of a listening exercise involving 540 internal and
external Stakeholders, a benchmarking analysis of international trends and the framework of the United Nations Sustainable
Development Goals. The GHG emissions reduction targets - approved by the Science Based Targets (SBTi) initiative and aligned
with the global challenge of limiting the average temperature increase to 1.5ºC - are among the goals set in the 2030 Agenda.
Navigator has identified the climate metrics presented in the following table as those most relevant to its business. Performance of
these metrics is assessed regularly and published annually in the Group’s Annual Report.
Metrics
Indicators
Reference
Greenhouse Gas Emission GHG
• Absolute scope 1 GHG emissions
• Absolute scope 2 GHG emissions
• Absolute scope 3 GHG emissions
2030 Roadmap (Chap. 6.2.4)
Water and Effluent Management
• Water withdrawal
• Organic load in Effluents
2030 Roadmap (Chap. 6.2.4)
Raw Materials Management
• Use of certified wood
2030 Roadmap (Chap. 6.2.4)
Forest Management Dep.
• Burned area
2030 Roadmap (Chap. 6.2.4)
Waste Management
• Waste recovery
2030 Roadmap (Chap. 6.2.4)
Annual Report 2023 · Management Report 361
Remuneration policies
The basic criteria for assessing the performance of executive directors (in force 2023-2025) are those defined in item 2.2 of
chapter 2 of the Remuneration Policy for setting the variable remuneration component. These criteria are applied by using
a system of qualitative and quantitative KPIs, related to the performance of the Company and the director in question. The
most important of these general business indicators are EBITDA (with a 35% weighting), net income (10% weighting), cash
flow (10% weighting) and Total Shareholder Return vs. Peers (10% weighting). In terms of behavioural skills, importance it
attached to each director’s alignment with the Company's long-term interests and sustainability.
In addition to these criteria, in line with the commitments made by the Company in its sustainability strategy, and in
recognition of the importance of efficient use of energy and the need to reduce emissions of fossil CO2 from business
operations, the weighting also takes into account implementation of the corporate programme for energy efficiency, approved
in 2016. This means that the specific aims will always include ESG indicators, such as the results of the organisational climate
survey in the Company, reduction of CO2 emissions, certified wood and consumption of water, energy and wood.
2023 Annual Report • Consolidated Financial Statements 363
Consolidated Income Statement
For the periods ended 31 December 2023 and 31 December 2022
Amounts in Euro
Note
2023
2022
Revenue
2.1
Other operating income
2.2
Fair value adjustments of biological assets
3.8
(6,907,896 )
(24,824,186 )
Costs of goods sold and materials consumed
4.1
(848,515,663 )
(968,849,205 )
Variation in production
4.1
(23,719,799 )
External services and supplies
2.3
(422,373,519 )
(626,158,733 )
Payroll costs
7.1
(172,252,203 )
(186,239,235 )
Other operating expenses
2.3
(58,241,591 )
(73,837,092 )
Net provisions
10.1
(1,621,447 )
Depreciation, amortisation and impairment losses in non-financial assets
3.7
(136,198,800 )
(161,277,579 )
Operating profit/(loss)
Financial income and gains
5.11
Financial expenses and losses
5.11
(33,353,202 )
(58,671,991 )
Financial profit/(loss)
(19,319,918 )
(56,983,010 )
Group share of (losses)/gains of associates and joint ventures
Profit before income tax
Income tax
6.1
(72,086,123 )
(123,937,812 )
Net profit for the period
Attributable to Navigator's equity holders
Attributable to non-controlling interests
5.6
Earnings per share
Basic earnings per share, Eur
5.3
Diluted earnings per share, Euro
5.3
2023 Annual Report • Consolidated Financial Statements 364
Consolidated statement of comprehensive income
For the periods ended 31 December 2023 and 31 December 2022
Amounts in Euro
Note
2023
2022
Net profit for the period
before non-controlling interests
Items that may be reclassified to the income statement
Hedging derivative financial instruments
Changes in fair value
8.2
(29,102,154 )
Tax effect
(15,021,412 )
Currency translation differences
(34,683 )
Tax on conventional capital remuneration
(77,000 )
(1,020,250 )
Items that may not be reclassified to the income statement
Remeasurement of post-employment benefits
Remeasurement
7.2.5
Tax effect
7.2.5
(115,461 )
Comprehensive income of associates and joint ventures
(1,511,704 )
Total other comprehensive income net of taxes
(19,099,144 )
Total comprehensive income
Attributable to:
Navigator's equity holders
Non-controlling interests
2023 Annual Report • Consolidated Financial Statements 365
Consolidated statement of financial position
As at 31 December 2023 and 31 December 2022
Amounts in Euro
Note
2023
2022
ASSETS
Non-current assets
Goodwill
3.1
Intangible assets
3.2
Property, plant and equipment
3.3
Right-of-use assets
3.6
Biological assets
3.8
Investment properties
3.4
Non-current receivables
4.2
Deferred tax assets
6.2
Current assets
Inventories
4.1
Current receivables
4.2
Income tax
6.1
Cash and cash equivalents
5.9
Total assets
EQUITY AND LIABILITIES
Capital and Reserves
Share capital
5.2
Currency translation reserve
5.5
Fair value reserves
5.5
Legal reserve
5.5
Other reserves
5.5
Retained earnings
5.5
Net profit for the period
Prepaid dividends
5.4
Equity attributable to Navigator's equity holders
Non-controlling interests
5.6
Total Equity
Non-current liabilities
Interest-bearing liabilities
5.7
Lease liabilities
5.8
Pensions and other post-employment benefits
7.2
Deferred tax liabilities
6.2
Provisions
10.1
Non-current payables
4.3
Current liabilities
Interest-bearing liabilities
5.7
Lease liabilities
5.8
Current payables
4.3
Income tax
6.1
Total liabilities
Total Equity and Liabilities
2023 Annual Report • Consolidated Financial Statements 366
Statement of Changes in Equity
For the periods ended 31 December 2023 and 31 December 2022
Amounts in Euro
Note
Share
capital
Currency
translation
reserve
Fair value
reserves
Legal
reserves
Other
reserves
Retained
earnings
Net profit for
the period
Prepaid
dividends
Total
Non-
controlling
interests
Total
Equity as at 1 January
2023
Net profit for the period
Other comprehensive
income (net of taxes)
(34,683 )
(21,099,061 )
(19,102,863 )
(19,099,144 )
Total comprehensive
income for the period
(34,683 )
(21,099,061 )
Appropriation of 2022 net
profit for the period:
- Dividends paid
5.4
(199,984,679 )
(199,984,679 )
(199,984,679 )
- Appropriation of prior
period’s net profit
(392,537,070 )
- Bonus to employees
(34,000,000 )
(34,000,000 )
(34,000,000 )
Total transactions with
shareholders
(392,537,070 )
(199,984,679 )
(199,984,679 )
Equity as at 31 December
2023
Amounts in Euro
Note
Share
capital
Currency
translation
reserve
Fair value
reserves
Legal
reserves
Other
reserves
Retained
earnings
Net profit for
the period
Prepaid
dividends
Total
Non-
controlling
interests
Total
Equity as at 01 January
2022
(24,346,001 )
(5,604,076 )
(49,996,170 )
Net profit for the period
Other comprehensive
income (net of taxes)
Total comprehensive
income for the period
Appropriation of 2021 net
profit for the period:
- Dividends paid
5.4
(131,632,875 )
(131,632,875 )
(131,632,875 )
- Appropriation of prior
period’s net profit
(171,411,455 )
- Bonus to employees
(11,000,000 )
(11,000,000 )
(11,000,000 )
Distribution of reserves
(118,355,086 )
(118,355,086 )
(118,355,086 )
Total transactions with
shareholders
(118,355,086 )
(10,217,590 )
(171,411,455 )
(249,987,961 )
(249,987,961 )
Equity as at 31 December
2022
2023 Annual Report • Consolidated Financial Statements 367
Consolidated Statement of Cash Flows
For the periods ended 31 December 2023 and 31 December 2022
Amounts in Euro
Notes
2023
2022
OPERATING ACTIVITIES
Receipts from customers
Payments to suppliers
(1,539,344,186 )
(1,704,131,480 )
Payments to employees
(145,375,584 )
(127,038,497 )
Cash flow from operations
Income tax received/ (paid)
6.1
(162,921,486 )
(64,765,380 )
Other receipts / (payments) relating to operating activities
Cash flows from operating activities (1)
INVESTING ACTIVITIES
Inflows:
Property, plant and equipment
Interest and similar income
Outflows:
Property, plant and equipment
(201,067,497 )
(120,784,217 )
Intangible assets
(522,645 )
(3,288,016 )
Investments In subsidiaries
(55,210,602 )
(256,800,744 )
(124,072,233 )
Cash flows from investing activities (2)
(256,142,217 )
(122,152,763 )
FINANCING ACTIVITIES
Inflows:
Interest-bearing liabilities
5.10
Government grants
5.10
Outflows:
Interest-bearing liabilities
5.10
(107,276,122 )
(533,070,676 )
Amortisation of lease agreements
3.6
(10,694,178 )
(8,837,422 )
Interest and similar expense
(4,861,601 )
(33,816,287 )
Distribution of dividends
5.4
(199,984,679 )
(131,632,875 )
Distribution of reserves
5.4
(118,355,086 )
Repayable grants
5.10
(7,219,438 )
(5,636,313 )
(330,036,018 )
(831,348,659 )
Cash flows from financing activities (3)
(287,506,862 )
(401,252,604 )
CHANGES IN CASH AND CASH EQUIVALENTS (1)+(2)+(3)
(174,509,309 )
Effect of exchange rate differences
CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE PERIOD
5.9
CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD
5.9
2023 Annual Report • Consolidated Financial Statements 368
Notes to the Consolidated Financial Statements
As at 31 December 2023
1. Introduction 370
1.1. The Group 370
1.2. Acquisition of the Gomà-Camps Group's consumer tissue business in Spain 372
1.3. Subsequent events 374
1.4. Basis for preparation 374
1.5. New IFRS standards adopted and to be adopted 379
1.6. Significant accounting estimates and judgments 383
2. Operational performance 384
2.1. Revenue and segment reporting 384
2.2. Other operating income 391
2.3. Other operating expenses 392
3. Investments 394
3.1. Goodwill 394
3.2. Intangible assets 397
3.3. Property, plant and equipment 399
3.4. Investment properties 402
3.5. Government grants 403
3.6. Right-of-use assets 406
3.7. Depreciation, amortisation and impairment losses 407
3.8. Biological assets 408
4. Working capital 411
4.1. Inventories 411
4.2. Receivables 413
4.3. Payables 417
5. Capital structure 418
5.1. Capital management 418
5.2. Share Capital and treasury shares 419
5.3. Earnings per share 420
5.4. Dividends and reserves distributed 420
5.5. Reserves and retained earnings 421
5.6. Non-controlling interests 422
5.7. Interest-bearing liabilities 423
5.8. Lease liabilities 427
5.9. Cash and cash equivalents 429
5.10 Cash flows from financing activities 429
5.11. Net financial results 430
2023 Annual Report • Consolidated Financial Statements 369
6. Income tax 431
6.1. Income tax for the period 431
6.2. Deferred taxes 435
7. Payroll 437
7.1. Payroll costs 437
7.2. Employee benefits 438
7.3. Remuneration of corporate bodies 444
8. Financial instruments 444
8.1. Financial risk management 444
8.2. Derivative financial instruments 453
8.3. Financial assets and liabilities 457
9. Operational risk management 459
9.1. Specific risks inherent to the sectors of activity in which the Navigator Group
operates 459
10. Provisions, commitments, and contingencies 475
10.1. Provisions 475
10.2. Commitments 476
10.3. Contingent assets and liabilities 477
11. Group structure 479
11.1. Companies included in the consolidation perimeter 479
11.2. Changes in the consolidation perimeter 480
11.3. Transactions with related parties 480
12. Explanation added for translation 481
2023 Annual Report • Consolidated Financial Statements 370
1. Introduction
The following symbols are used in the presentation of the Notes to the financial statements:
Accounting policies
This symbol indicates the disclosure of accounting policies specifically applicable to the items
in the respective Note.
Significant Estimates and Judgements
This symbol indicates the disclosure of the estimates and/or judgements made regarding the
items in the respective Note. Significant estimates and judgements are indicated in Note 1.6.
References
This symbol indicates a reference to another Note or another section of the Financial
Statements were more information about the items disclosed is presented.
1.1. The Group
The Navigator Group was created in 1953, when a group of technicians from “Companhia Portuguesa de Celulose de Cacia” made
this company the first in the world to produce bleached eucalyptus sulphate pulp.
In 1976 Portucel EP was created as a result of the nationalisation of all of Portugal’s cellulose industry. As such, Portucel –
Empresa de Celulose e Papel de Portugal, E.P. resulted from the merger with CPC – Companhia de Celulose, S.A.R.L. (Cacia),
Socel – Sociedade Industrial de Celulose, S.A.R.L. (Setúbal), Celtejo – Celulose do Tejo, S.A.R.L. (Vila Velha de Ródão), Celnorte
– Celulose do Norte, S.A.R.L. (Viana do Castelo) and Celuloses do Guadiana, S.A.R.L. (Mourão) incorporated Portucel - Empresa
de Celulose e Papel de Portugal, E.P., converted into a Public Limited Company of mainly public capital by Decree-Law 405/90, of
21 December.
Years after, as a result of the restructuring of Portucel – Empresa de Celulose e Papel de Portugal, S.A., which was renamed
Portucel, SGPS, S.A., towards to its privatisation, Portucel S.A. was created, on 31 May 1993, through Decree-law 39/93, of 13
February, with the former assets of the two main companies, based in Aveiro and Setúbal.
In 1995, the Company was privatised, and became a publicly traded company.
2023 Annual Report • Consolidated Financial Statements 371
Aiming to restructure the paper industry in Portugal, Portucel acquired Papéis Inapa, S.A. (Setúbal), in 2000, and Soporcel –
Sociedade Portuguesa de Papel, S.A. (Figueira da Foz), in 2001. Those key strategic decisions resulted in the Portucel Soporcel
Group (currently Navigator Group), which is currently the largest European and one of the world’s largest producers of bleached
eucalyptus pulp and the largest European producer of uncoated wood-free paper (UWF), with a capacity of 1.6 and 1.6 millions of
tons, respectively, and it sells approximately 462 thousand tons of pulp (255 thousand tons in 2022), annually, integrating the
remainder in the production of UWF paper and Tissue paper.
In June 2004, the Portuguese State sold 30% of Portucel's equity, which was acquired by Semapa Group. In September of the
same year, Semapa launched a public acquisition offer tending to assure the Group’s control, which was accomplished by
guaranteeing a 67.1% stake of Portucel’s equity.
In November 2006, the Portuguese State concluded the third and final stage of the sale of Portucel, S.A., and Párpublica, SGPS,
S.A. and Párpublica, SGPS, S.A. (formerly Portucel, SGPS, S.A.) sold the remaining 25.72% it still held, thus increasing the free-
float.
From 2009 to July 2015, more than 75% of the company’s share capital was held directly and indirectly by Semapa – Sociedade
de Investimento e Gestão SGPS, S.A.. (excluding treasury shares) having the percentage of voting rights been reduced to 70%
following the conclusion of the offer for the acquisition, in the form of an exchange offer, of the ordinary shares of Semapa, SGPS,
S.A., in July 2015. The voting rights currently amount to 69.97%.
In February 2015, the Group started its activity in the Tissue segment with the acquisition of AMS-BR Star Paper, S.A. (currently
denominated Navigator Tissue Ródão, S.A.), a Company that holds and explores a tissue paper mill, located in Vila Velha de
Ródão. A new industrial facility was built in Aveiro, in August 2018, being operated by Navigator Tissue Aveiro, S.A., which is
currently the largest Portuguese producer and the third in the Iberian Peninsula, with a production and transformation capacity of
130 thousand tons and 120 thousand tons, respectively.
On 31 March 2023 the acquisition of the Gomà-Camps Group's consumer Tissue business in Spain was concluded, with a view to
strengthening the Group's presence in this business segment. The integration of this new mill has elevated Navigator to the
position of second largest Iberian tissue producer, with a production and converting capacity of 180 thousand tonnes.
The Navigator Company, S.A. (hereafter referred to as The Navigator Company or Company) is a publicly traded company, listed
in Euronext Lisbon, with its share capital represented by nominal shares.
Company: The Navigator Company, S.A.
Head Office: Mitrena – Apartado 55 | 2901 - 861 Setúbal | Portugal
Legal Form: Public Limited Company
Share Capital: €500,000,000
TIN: 503 025 798
2023 Annual Report • Consolidated Financial Statements 372
A more detailed description of the activity in each business line of the Group is disclosed in Note 2.1 - Revenue
and segment reporting.
Navigator is included in the consolidation perimeter of Semapa – Sociedade de Investimento e Gestão, SGPS,
In turn, Filipa Mendes de Almeida de Queiroz Pereira, Mafalda Mendes de Almeida de Queiroz Pereira and Lua
Mónica Mendes de Almeida de Queiroz Pereira hold joint control of Sodim - SGPS, S.A. (Sodim) through the
combination of a shareholders' agreement. (Sodim) with their respective direct and indirect shareholdings in the
share capital of this company, joint control of Sodim, Semapa and Navigator is attributable to each of them and
to Sodim, under the terms of Article 20 of the Portuguese Securities Code, 83.221% of the non-suspended voting
rights relating to shares representing the share capital of Semapa and also to each of them, Sodim and Semapa,
69.970% of the non-suspended voting rights relating to shares representing the share capital of Navigator.
2023 Annual Report • Consolidated Financial Statements 373
2023 Annual Report • Consolidated Financial Statements 374
1.4. Basis for preparation
2023 Annual Report • Consolidated Financial Statements 375
2023 Annual Report • Consolidated Financial Statements 376
2023 Annual Report • Consolidated Financial Statements 377
2023 Annual Report • Consolidated Financial Statements 378
2023 Annual Report • Consolidated Financial Statements 379
2023 Annual Report • Consolidated Financial Statements 380
2023 Annual Report • Consolidated Financial Statements 381
2024
2023 Annual Report • Consolidated Financial Statements 382
2023 Annual Report • Consolidated Financial Statements 383
2023 Annual Report • Consolidated Financial Statements 384
2. Operational performance
2023 Annual Report • Consolidated Financial Statements 385
2023 Annual Report • Consolidated Financial Statements 386
2023 Annual Report • Consolidated Financial Statements 387
2023 Annual Report • Consolidated Financial Statements 388
2023 Annual Report • Consolidated Financial Statements 389
2023 Annual Report • Consolidated Financial Statements 390
2023 Annual Report • Consolidated Financial Statements 391
2023 Annual Report • Consolidated Financial Statements 392
2023 Annual Report • Consolidated Financial Statements 393
80
CO
2
emissions from assets in mills, Scope 1 - EU ETS basis.
2023 Annual Report • Consolidated Financial Statements 394
3. Investments
2023 Annual Report • Consolidated Financial Statements 395
2023 Annual Report • Consolidated Financial Statements 396
2023 Annual Report • Consolidated Financial Statements 397
2023 Annual Report • Consolidated Financial Statements 398
2023 Annual Report • Consolidated Financial Statements 399
2023 Annual Report • Consolidated Financial Statements 400
2023 Annual Report • Consolidated Financial Statements 401
2023 Annual Report • Consolidated Financial Statements 402
2023 Annual Report • Consolidated Financial Statements 403
2023 Annual Report • Consolidated Financial Statements 404
2023 Annual Report • Consolidated Financial Statements 405
2023 Annual Report • Consolidated Financial Statements 406
2023 Annual Report • Consolidated Financial Statements 407
2023 Annual Report • Consolidated Financial Statements 408
2023 Annual Report • Consolidated Financial Statements 409
2023 Annual Report • Consolidated Financial Statements 410
2023 Annual Report • Consolidated Financial Statements 411
4. Working capital
2023 Annual Report • Consolidated Financial Statements 412
2023 Annual Report • Consolidated Financial Statements 413
2023 Annual Report • Consolidated Financial Statements 414
2023 Annual Report • Consolidated Financial Statements 415
2023 Annual Report • Consolidated Financial Statements 416
2023 Annual Report • Consolidated Financial Statements 417
2023 Annual Report • Consolidated Financial Statements 418
5. Capital structure
2023 Annual Report • Consolidated Financial Statements 419
2023 Annual Report • Consolidated Financial Statements 420
2023 Annual Report • Consolidated Financial Statements 421
2023 Annual Report • Consolidated Financial Statements 422
2023 Annual Report • Consolidated Financial Statements 423
2023 Annual Report • Consolidated Financial Statements 424
2023 Annual Report • Consolidated Financial Statements 425
2023 Annual Report • Consolidated Financial Statements 426
2023 Annual Report • Consolidated Financial Statements 427
2023 Annual Report • Consolidated Financial Statements 428
2023 Annual Report • Consolidated Financial Statements 429
2023 Annual Report • Consolidated Financial Statements 430
2023 Annual Report • Consolidated Financial Statements 431
6. Income tax
2023 Annual Report • Consolidated Financial Statements 432
2023 Annual Report • Consolidated Financial Statements 433
2023 Annual Report • Consolidated Financial Statements 434
2023 Annual Report • Consolidated Financial Statements 435
2023 Annual Report • Consolidated Financial Statements 436
2023 Annual Report • Consolidated Financial Statements 437
7. Payroll
2023 Annual Report • Consolidated Financial Statements 438
2023 Annual Report • Consolidated Financial Statements 439
2023 Annual Report • Consolidated Financial Statements 440
2023 Annual Report • Consolidated Financial Statements 441
2023 Annual Report • Consolidated Financial Statements 442
2023 Annual Report • Consolidated Financial Statements 443
2023 Annual Report • Consolidated Financial Statements 444
8. Financial instruments
2023 Annual Report • Consolidated Financial Statements 445
2023 Annual Report • Consolidated Financial Statements 446
2023 Annual Report • Consolidated Financial Statements 447
2023 Annual Report • Consolidated Financial Statements 448
2023 Annual Report • Consolidated Financial Statements 449
2023 Annual Report • Consolidated Financial Statements 450
2023 Annual Report • Consolidated Financial Statements 451
2023 Annual Report • Consolidated Financial Statements 452
2023 Annual Report • Consolidated Financial Statements 453
2023 Annual Report • Consolidated Financial Statements 454
2023 Annual Report • Consolidated Financial Statements 455
2023 Annual Report • Consolidated Financial Statements 456
2023 Annual Report • Consolidated Financial Statements 457
2023 Annual Report • Consolidated Financial Statements 458
2023 Annual Report • Consolidated Financial Statements 459
2023 Annual Report • Consolidated Financial Statements 460
2023 Annual Report • Consolidated Financial Statements 461
2023 Annual Report • Consolidated Financial Statements 462
2023 Annual Report • Consolidated Financial Statements 463
2023 Annual Report • Consolidated Financial Statements 464
2023 Annual Report • Consolidated Financial Statements 465
2023 Annual Report • Consolidated Financial Statements 466
2023 Annual Report • Consolidated Financial Statements 467
2023 Annual Report • Consolidated Financial Statements 468
2023 Annual Report • Consolidated Financial Statements 469
2023 Annual Report • Consolidated Financial Statements 470
2023 Annual Report • Consolidated Financial Statements 471
2023 Annual Report • Consolidated Financial Statements 472
2023 Annual Report • Consolidated Financial Statements 473
2023 Annual Report • Consolidated Financial Statements 474
2023 Annual Report • Consolidated Financial Statements 475
10. Provisions, commitments, and contingencies
2023 Annual Report • Consolidated Financial Statements 476
2023 Annual Report • Consolidated Financial Statements 477
2023 Annual Report • Consolidated Financial Statements 478
2023 Annual Report • Consolidated Financial Statements 479
11. Group structure
11.1. Companies included in the consolidation perimeter
2023 Annual Report • Consolidated Financial Statements 480
11.2. Changes in the consolidation perimeter
During the period ended 31 December 2023, the consolidation perimeter was changed from the previous period by the following
corporate reorganisation operations:
• Acquisition of Navigator Tissue Ejea, S.L.U. (formerly Gomà-Camps Consumer, S.L.U.)
• Acquisition of Navigator Tissue France SAS (formerly Gomà-Camps France SAS)
• Merger by incorporation of Sociedade de Vinhos da Herdade de Espirra - Produção e Comercialização de Vinhos, S.A. into
The Navigator Company, S.A.
• Incorporation of Portucel Nigeria Limited, Navigator Green Fuels Setúbal, S.A., Navigator Green Fuels Figueira da Foz, S.A.
and Navigator Fiber Solutions, S.A.
2023 Annual Report • Consolidated Financial Statements 481
12. Explanation added for translation
These financial statements are a translation of the financial statements originally issued in Portuguese. In the event of
discrepancies, the Portuguese language version shall prevail.
2023 Annual Report • Consolidated Financial Statements 482
BOARD OF DIRECTORS
Ricardo Miguel dos Santos Pacheco Pires
Chairman of the Board of Directors
António José Pereira Redondo
Chairman of the Executive Board
José Fernando Morais Carreira de Araújo
Executive Board Member
Nuno Miguel Moreira de Araújo Santos
Executive Board Member
João Paulo Cabete Gonçalves Lé
Executive Board Member
Dorival Martins de Almeida
Executive Board Member
António Quirino Vaz Duarte Soares
Executive Board Member
Ana Teresa Cunha de Pinto Tavares Lehmann
Board Member
Hugo Alexandre Lopes Pinto
Board Member
Maria Isabel da Silva Marques Abranches Viegas
Board Member
Maria Teresa Aliu Presas
Member
Mariana Rita Antunes Marques dos Santos
Member
Sandra Maria Soares Santos
Member
Vítor Paulo Paranhos Ferreira
Board Member
2023 Annual Report • Statutory Auditor’s Report and Audit Report 484
2023 Annual Report • Statutory Auditor’s Report and Audit Report 485
2023 Annual Report • Statutory Auditor’s Report and Audit Report 486
2023 Annual Report • Statutory Auditor’s Report and Audit Report 487
2023 Annual Report • Statutory Auditor’s Report and Audit Report 488
2023 Annual Report • Statutory Auditor’s Report and Audit Report 489
2023 Annual Report • Statutory Auditor’s Report and Audit Report 490
2023 Annual Report • Statutory Auditor’s Report and Audit Report 491
2023 Annual Report • Statutory Auditor’s Report and Audit Report 492
2023 Annual Report • Report and Opinion of the Supervisory Board 493
The Navigator Company, S.A.
Report and Opinion of the Supervisory Board
Consolidated Financial Statements
2023 Financial Year
(Free translation from a report originally issued in Portuguese language. In case of doubt, the Portuguese version will always
prevail.)
Shareholders,
1. In accordance with the Law, the Articles of Association of the Company and the terms of our mandate, we hereby submit
the report on our supervisory activities carried out in 2023 and issue our opinion on the Consolidated Management Report
and Consolidated Financial Statements presented by the Board of Directors of the Navigator Company, S.A., for the
financial year ended 31 December 2023.
2. Over the course of the year we regularly monitored the affairs of the Company and its most significant affiliates and
associates, with the frequency and to the extent we deemed appropriate, through periodic meetings with the Company’s
Board Members and directors. We monitored the verification of the accounting records and respective supporting
documentation, as well as the effectiveness of the risk management, internal control and internal audit. We monitored
compliance with the Law and the Articles of Association. In the course of our activities we encountered no constraints
whatsoever.
3. We met several times with the Statutory Auditor and External Auditor, KPMG & Associados, SROC, Lda, monitoring the
audit activities carried out and checking its independence. We assessed the Statutory Auditor’s Report and Auditor’s Report,
with which we agree.
4. The Supervisory Board analyzed the proposals submitted to it for the provision of non-audit services by the Statutory
Auditor, and approved those that concerned permitted services, did not affect the independence of the Statutory Auditor
and complied with additional legal requirements.
5. In the scope of our work we verified that:
a) The Consolidated Income Statement, the Consolidated Statement of Financial Position, the Consolidated Statement
of Comprehensive Income, the Consolidated Statement of Changes in Equity, the Consolidated Statement of Cash
Flows and the accompanying Notes to the Consolidated Financial Statements, provide an adequate understanding of
the Company's financial position and results, comprehensive income, changes in equity, and cash flows;
b) The accounting policies and valuation criteria adopted comply with the International Financial Reporting Standards
(IFRS) as adopted in the European Union and are suitable to ensure that such criteria lead to a correct valuation of
the Company’s assets and profits, taking due account of the analyses and recommendations of the External Auditor;
c) The Management Report provides a sufficient description of the business affairs of the Company and its affiliates
included in the consolidated accounts, offering a clear account of the most significant developments in its activities;
d) The Corporate Governance Report includes the information required by Article 29.º-H of the Securities Code and takes
into account the recommendations of the Code of the Portuguese Institute for Corporate Governance (IPCG).
6. Accordingly, taking into consideration the information received from the Board of Directors and the Company departments,
and also the conclusions of the Statutory Auditor’s Report and Auditor’s Report, we recommend that:
a) The Management Report be approved;
b) The Consolidated Financial Statements be approved.
2023 Annual Report • Statutory Auditor’s Report and Audit Report 494
7.
Finally, the members of the Supervisory Board wish to acknowledge and express their appreciation for the assistance
received from the Board of Directors, the senior managers of the Company and other staff, as well as the Statutory Auditor,
KPMG & Associados, SROC, Lda.
8.
This Report and Opinion has not been signed by the Member of the Supervisory Board, Mrs. Graça Gonçalves, as, on this
date, she is unable to do so. Despite this circumstance, the Supervisory Board confirms that Mrs. Graça Gonçalves
collaborated in the preparation of this Report and Opinion, having monitored, throughout the year just ended and in the
current year, the activities of the Company and the Supervisory Board and contributed to the performance of the duties
and powers of this body.
Lisbon, 15 April 2024
The Chairman of the Supervisory Board
José Manuel Oliveira Vitorino
Member
Gonçalo Nuno Palha Gaio Picão Caldeira
2023 Annual Report • Report and Opinion of the Supervisory Board 495
2023 Annual Report • Separate Financial Statements 496
Separate Income Statement
For the periods ended 31 December 2023 and 31 December 2022
Amounts in Euro
Note
2023
2022
Revenue
2.1
2,659,705,827
3,531,205,717
Other operating income
2.2
5,115,697
3,478,417
Costs of goods sold and materials consumed
4.1
(2,339,940,354)
(3,138,646,788)
External services and supplies
2.3
(221,634,640)
(318,009,546)
Payroll costs
7.1
(7,186,383)
(13,521,497)
Other operating expenses
2.3
(2,400,470)
(7,339,126)
Net provisions
9.1
1,789,744
857,042
Income from subsidiaries
10.1
224,727,140
349,940,785
Depreciation, amortisation and impairment losses in non-financial assets
3.3
(580,489)
(573,331)
Operating profit/(loss)
319,596,072
407,391,673
Financial income and gains
5.10
36,416,925
22,095,577
Financial expenses and losses
5.10
(58,664,258)
(33,204,745)
Profit before income tax
297,348,739
396,282,505
Income tax
6.1
(22,424,919)
(3,745,435)
Net profit for the period
274,923,820
392,537,070
Earnings per share
Basic earnings per share, Eur
5.3
0.387
0.241
Diluted earnings per share, Euro
5.3
0.387
0.241
The accompanying notes form an integral part of these separate financial statements.
2023 Annual Report • Separate Financial Statements 497
Separate statement of comprehensive income
For the periods ended 31 December 2023 and 31 December 2022
Amounts in Euro
Note
2023
2022
Net profit for the period
274,923,820
392,537,070
Items that may be reclassified to the income statement
Hedging derivative financial instruments
Changes in fair value
8.2
(29,102,154)
54,623,316
Tax effect
6.2
8,003,092
(15,021,412)
Other changes in equity of subsidiaries
10.1
1,013,513
28,416,539
Items that may not be reclassified to the income statement
Remeasurement of post-employment benefits
7.2
248,140
(823,821)
Other comprehensive income
734,546
4,838,622
Total other comprehensive income net of taxes
(19,102,863)
72,033,244
Total comprehensive income
255,820,957
464,570,314
The accompanying notes form an integral part of these separate financial statements.
2023 Annual Report • Separate Financial Statements 498
Separate statement of financial position
As at 31 December 2023 and 31 December 2022
Amounts in Euro
Note
2023
2022
ASSETS
Non-current assets
Property, plant and equipment
3.1
909,232
855,022
Right-of-use assets
3.2
1,787,685
2,256,124
Investments in subsidiaries
10.1
1,751,528,123
2,093,159,574
Investments in associates
46,225
45,860
Non-current receivables
4.2
27,956
6,684
Deferred tax assets
6.2
3,937,992
7,074,922
1,758,237,213
2,103,398,186
Current assets
Inventories
4.1
32,116,019
25,927,585
Current receivables
4.2
816,521,582
900,006,340
Income tax
6.1
17,510,098
15,341,107
Cash and cash equivalents
5.8
310,150,771
390,640,161
1,176,298,470
1,331,915,193
Total assets
2,934,535,683
3,435,313,379
EQUITY AND LIABILITIES
Capital and Reserves
Share capital
5.2
500,000,000
500,000,000
Reserves by applying the equity method
5.5
(404,214,827)
(405,228,340)
Fair value reserves
5.5
12,898,767
33,997,828
Legal reserve
5.5
100,000,000
100,000,000
Other reserves
5.5
1,103,749
1,103,749
Retained earnings
5.5
830,534,306
636,999,230
Net profit for the period
274,923,820
392,537,070
Total Equity
1,315,245,815
1,259,409,537
Non-current liabilities
Interest-bearing liabilities
5.6
536,857,472
613,031,822
Lease liabilities
5.7
1,371,022
1,866,759
Pensions and other post-employment benefits
7.2
167,936
400,299
Deferred tax liabilities
6.2
5,013,621
13,021,836
Provisions
9.1
16,344,333
18,132,790
559,754,384
646,453,506
Current liabilities
Interest-bearing liabilities
5.6
360,172,883
372,414,631
Lease liabilities
5.7
540,140
515,211
Current payables
4.3
677,666,895
1,048,887,425
Income tax
6.1
21,155,566
107,633,069
1,059,535,484
1,529,450,336
Total liabilities
1,619,289,868
2,175,903,842
Total Equity and Liabilities
2,934,535,683
3,435,313,379
The accompanying notes form an integral part of these separate financial statements.
2023 Annual Report • Separate Financial Statements 499
Statement of Changes in Equity
31 December 2023 and 31 December 2022
2023
Amounts in Euro
Note
Share
capital
Reserves by
applying the
equity method
Fair value
reserves
Legal
reserve
Other
reserves
Retained
earnings
Net profit for
the period
Prepaid
dividends
Total
Equity as at 1 January 2023
500,000,000
(405,228,340)
33,997,828
100,000,000
1,103,749
636,999,230
392,537,070
-
1,259,409,537
Net profit for the period
-
-
-
-
-
-
274,923,820
-
274,923,820
Other comprehensive income
(net of taxes)
-
1,013,513
(21,099,061)
-
-
982,685
-
-
(19,102,863)
Total comprehensive income
for the period
-
1,013,513
(21,099,061)
-
-
982,685
274,923,820
-
255,820,957
Appropriation of 2022 net profit for
the period:
- Dividends paid
5.4
-
-
-
-
-
(199,984,679)
-
-
(199,984,679)
- Appropriation of prior period’s net
profit
-
-
-
-
-
426,537,070
(392,537,070)
-
34,000,000
- Bonus to employees
-
-
-
-
-
(34,000,000)
-
-
(34,000,000)
Total transactions with
shareholders
-
-
-
-
-
192,552,391
(392,537,070)
-
(199,984,679)
Equity as at 31 December 2023
500,000,000
(404,214,827)
12,898,767
100,000,000
1,103,749
830,534,306
274,923,820
-
1,315,245,815
2022
Amounts in Euro
Note
Share
capital
Reserves by
applying the
equity method
Fair value
reserves
Legal
reserve
Other
reserves
Retained
earnings
Net profit for
the period
Prepaid
dividends
Total
Equity as at 1 January 2022
500,000,000
(437,672,593)
(5,604,076)
100,000,000
119,458,835
647,229,733
171,411,455
(49,996,170)
1,044,827,184
Net profit for the period
-
-
-
-
-
-
392,537,070
-
392,537,070
Other comprehensive income
(net of taxes)
-
32,444,253
39,601,904
-
-
(12,913)
-
-
72,033,244
Total comprehensive income
for the period
-
32,444,253
39,601,904
-
-
(12,913)
392,537,070
-
464,570,314
Appropriation of 2021 net profit
for the period:
- Dividends paid
5.4
-
-
-
-
-
(131,632,875)
-
-
(131,632,875)
- Appropriation of prior period’s
net profit
5.4
-
-
-
-
-
132,415,285
(171,411,455)
49,996,170
11,000,000
- Bonus to employees
-
-
-
-
-
(11,000,000)
-
-
(11,000,000)
Distribution of reserves
-
-
-
-
(118,355,086)
-
-
-
(118,355,086)
Total transactions with
shareholders
-
-
-
-
(118,355,086)
(10,217,590)
(171,411,455)
49,996,170
(249,987,961)
Equity as at 31 December 2022
500,000,000
(405,228,340)
33,997,828
100,000,000
1,103,749
636,999,230
392,537,070
-
1,259,409,537
The accompanying notes form an integral part of these separate financial statements.
2023 Annual Report • Separate Financial Statements 500
Separate Statement of Cash Flows
For the periods ended 31 December 2023 and 31 December 2022
Amounts in Euro
Note
2023
2022
OPERATING ACTIVITIES
Receipts from customers
2,916,796,392
3,960,422,577
Payments to suppliers
(3,141,110,037)
(4,186,123,618)
Payments to employees
(8,581,366)
(4,095,315)
Cash flow from operations
(232,895,011)
(229,796,356)
Income tax received/ (paid)
(44,563,608)
(64,445,158)
Other receipts / (payments) relating to operating activities
292,731,522
445,117,777
Cash flows from operating activities (1)
15,272,903
150,876,263
INVESTING ACTIVITIES
Inflows:
Property, plant and equipment
184,016
14,342
Loans to subsidiaries
68,106,083
507,014
Interest and similar income
26,395,411
15,278,082
Investments in subsidiaries
10.1
372,038,000
-
Dividends from subsidiaries
243,131,096
92,799,990
709,854,606
108,599,428
Outflows:
Investments in subsidiaries
(62,651,861)
(8,909,329)
Loans to subsidiaries
(26,313,809)
(105,311,036)
Property, plant and equipment
(146,821)
-
(89,112,491)
(114,220,365)
Cash flows from investing activities (2)
620,742,115
(5,620,937)
FINANCING ACTIVITIES
Inflows:
Interest-bearing liabilities
5.9
15,000,000
430,000,000
Loans to subsidiaries
-
120,650,000
15,000,000
550,650,000
Outflows:
Interest-bearing liabilities
5.9
(75,075,396)
(545,218,254)
Amortisation of lease agreements
5.7
(589,098)
(591,252)
Interest and similar expense
(54,635,392)
(30,443,814)
Distribution of dividends
5.4
(199,984,679)
(131,632,875)
Distribution of reserves
5.4
-
(118,355,086)
Loans to subsidiaries
(372,850,000)
(2,000,000)
(703,134,565)
(828,241,281)
Cash flows from financing activities (3)
(688,134,565)
(277,591,281)
CHANGES IN CASH AND CASH EQUIVALENTS (1)+(2)+(3)
(52,119,547)
(132,335,955)
Effect of exchange rate differences
145,219
1,075,735
Merger by incorporation of Soc. Vinhos Herdade Espirra, S.A.
690,972
-
CASH AND CASH EQUIVALENTS AT THE BEGINNING OF THE PERIOD
5.8
93,300,927
224,561,148
CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD
5.8
42,017,571
93,300,927
The accompanying notes form an integral part of these separate financial statements.
2023 Annual Report • Separate Financial Statements 501
Notes to the Separate Financial Statements
31 December 2023
1. Introduction 503
1.1. Disclosure 503
1.2. Acquisition of the Gomà-Camps Group's consumer tissue business in Spain 506
1.3. Subsequent events 507
1.4. Basis for preparation 508
1.5. New IFRS standards adopted and to be adopted 510
1.6. Significant accounting estimates and judgments 513
2. Operational performance 514
2.1. Revenue and segment reporting 514
2.2. Other operating income 517
2.3. Other operating expenses 518
3. Investments 520
3.1. Property, plant and equipment 520
3.2. Right-of-use assets 522
3.3. Depreciation, amortisation and impairment losses 523
4. Working capital 524
4.1. Inventories 524
4.2. Receivables 526
4.3. Payables 527
5. Capital structure 529
5.1. Capital management 529
5.2. Share Capital and treasury shares 530
5.3. Earnings per share 531
5.4. Dividends 531
5.5. Reserves and Retained earnings 532
5.6. Interest-bearing liabilities 534
5.7. Lease liabilities 537
5.8. Cash and cash equivalents 538
5.9. Cash flows from financing activities 539
5.10. Net financial results 539
6. Income tax 540
6.1. Income tax for the period 540
6.2. Deferred taxes 544
7. Payroll 546
7.1. Payroll costs 546
2023 Annual Report • Separate Financial Statements 502
7.2. Employee benefits 547
7.3. Remuneration of Corporate Bodies 551
8. Financial instruments 552
8.1. Financial risk management 552
8.2. Derivative financial instruments 560
8.3. Financial assets and liabilities 564
9. Provisions, commitments and contingencies 566
9.1. Provisions 566
9.2. Commitments 567
9.3. Contingent assets and liabilities 568
10. Group structure 570
10.1. Investments in subsidiaries 570
10.2. Transactions with related parties 575
11. Explanation added for translation 577
2023 Annual Report • Separate Financial Statements 503
1. Introduction
The following symbols are used in the presentation of the Notes to the financial statements:
Accounting policies
This symbol indicates the disclosure of accounting policies specifically applicable to the
items in the respective Note.
Significant Estimates and Judgements
This symbol indicates the disclosure of the estimates and/or judgements made regarding
the items in the respective Note. Significant estimates and judgements are indicated in
Note 1.6.
References
This symbol indicates a reference to another Note or another section of the Financial
Statements were more information about the items disclosed is presented.
1.1. Disclosure
The Navigator Company, S.A. (Navigator or the Company) is a publicly traded company with its head office in Mitrena, 2901-861
Setúbal, and it is listed on NYSE Euronext Lisbon under the ISIN PTPTI0AM0006.
Company: The Navigator Company, S.A.
Head Office: Mitrena – Apartado 55 | 2901-861 Setúbal | Portugal
Legal Form: Public Limited Company
Share Capital: €500,000,000
TIN: 503 025 798
Navigator is the parent company of the Navigator Group (Group), comprising Navigator and Subsidiaries, as presented in the
consolidated financial statements.
The Navigator Company, S.A. (until 2015 designated Portucel, S.A.), hereinafter referred to as Company or Navigator, is a
publicly traded company with its share capital represented by nominal shares and was incorporated on 31 May 1993, under
Decree- Law no. 39/93 of 13 February, as a result of the restructuring process of Portucel - Empresa de Celulose e Papel de
Portugal, E.P.
2023 Annual Report • Separate Financial Statements 504
The Group it currently leads was created in 1953, when a group of technicians from “Companhia Portuguesa de Celulose de Cacia”
made this company the first in the world to produce bleached eucalyptus sulphate pulp.
In 1976 Portucel EP was created as a result of the nationalisation of all of Portugal’s cellulose industry. As such, Portucel –
Empresa de Celulose e Papel de Portugal, E.P. resulted from the merger with CPC – Companhia de Celulose, S.A.R.L. (Cacia),
Socel – Sociedade Industrial de Celulose, S.A.R.L. (Setúbal), Celtejo – Celulose do Tejo, S.A.R.L. (Vila Velha de Ródão), Celnorte
– Celulose do Norte, S.A.R.L. (Viana do Castelo) and Celuloses do Guadiana, S.A.R.L. (Mourão) incorporated Portucel - Empresa
de Celulose e Papel de Portugal, E.P., converted into a Public Limited Company of mainly public capital by Decree-Law 405/90, of
21 December.
Years after, as a result of the restructuring of Portucel – Empresa de Celulose e Papel de Portugal, S.A., which was renamed
Portucel, SGPS, S.A., towards to its privatisation, Portucel S.A. was created, on 31 May 1993, through Decree-law 39/93, of 13
February, with the former assets of the two main companies, based in Aveiro and Setúbal.
In 1995, the Company was again privatised, and became a publicly traded company.
Aiming to restructure the paper industry in Portugal, Portucel acquired Papéis Inapa, S.A. (Setúbal), in 2000, and Soporcel –
Sociedade Portuguesa de Papel, S.A. (Figueira da Foz), in 2001. These strategic moves were decisive and gave rise to the Portucel
Soporcel Group (now The Navigator Group), which is currently the largest European producer of bleached eucalyptus pulp and one
of the largest European producers of uncoated wood-free paper (UWF).
In June 2004, the Portuguese Government sold 30% of Portucel's capital, which was acquired by the Semapa Group. In
September of the same year, Semapa launched a public acquisition offer tending to assure the Group’s control, which was
accomplished by guaranteeing a 67.1% stake of Portucel’s equity.
In November 2006, the Portuguese State concluded the third and final stage of the sale of Portucel, S.A., and Párpublica, SGPS,
S.A. sold the remaining 25.72% it still held, thus increasing the free float.
In 2007 the Group invested in a new paper machine located at the Setúbal industrial site which started operating on a regular
basis in October 2009.
From 2009 to July 2015, more than 75% of the company’s share capital was held directly and indirectly by Semapa – Sociedade
de Investimento e Gestão SGPS, S.A. (excluding treasury shares) having the percentage of voting rights been reduced to less
than 70% following the conclusion of the offer for the acquisition, in the form of an exchange offer, of the ordinary shares of
Portucel shares for Semapa shares, carried out in July 2015.
In February 2015, the Group started its activity in the Tissue segment with the acquisition of AMS-BR Star Paper, S.A. (currently
denominated Navigator Tissue Ródão, S.A.), a Company that holds and explores a production unit, located in Vila Velha de Ródão.
A new industrial facility was built in Aveiro, in August 2018, operated by Navigator Tissue Aveiro, S.A.
Also in 2015, the company sold the industrial assets used in the production of BEKP at the Setúbal Industrial Complex to its
indirect subsidiary Navigator Pulp Setúbal, S.A., thus ceasing to have any industrial activity, as it had already sold the industrial
assets used in the production to the current Navigator Paper Setúbal, S.A. in 2009.
On 6 February 2016, the PortucelSoporcel Group changed its corporate brand to The Navigator Company. This new corporate
identity represents the union of companies with a history of more than 60 years, aiming to give the Group a more appealing and
modern image.
Following this event, and after approval in the General Shareholder’s Meeting, held on 19 April 2016, Portucel S.A. changed its
designation to The Navigator Company, S.A.
2023 Annual Report • Separate Financial Statements 505
Also, in 2016, the Company carried out a capital increase in kind in Enerpulp - Cogeração Energética da Pasta, S.A., through the
delivery of the two biomass power generation plants located at the Setúbal and Aveiro industrial sites, and also carried out a
capital increase in kind in Navigator Parques Industriais, S.A. through the incorporation of the industrial land and buildings located
in Aveiro and Setúbal.
On 1 January 2017, the Company started to concentrate its sales of paper, cellulose pulp and Tissue products, becoming the
Group's product distributor. As a result, it quickly became one of the main national exporters, and certainly the one with the
highest added value for the national economy.
In October 2017, it started to centralise supplies to the Group, with the Group's pulp producers starting to sell pulp exclusively to
Navigator, which supplies the Group's paper producers, in addition to the sales to the market it had already been developing. As
from January 2018, it strengthened this new activity, centralising its foreign purchases and the supply of most of the raw
materials used in the production process.
Also, in 2017, Navigator started to prepare its separate financial statements in accordance with IFRS - International Financial
Reporting Standards.
Thus, from 2017 onwards, and with reinforcement in 2018, the Company focused its activities on selling paper and related
products, supplying industrial products, as well as providing administration and management services to its direct and indirect
subsidiaries, and on managing its shareholdings. In addition, the Company manages the brands of the former Papéis Inapa, S.A.,
rents equipment and transfers personnel within the group.
On 31 March 2023 the acquisition of the Gomà-Camps Group's consumer Tissue business in Spain was concluded, with a view to
strengthening the Navigator Group's presence in this business segment. The integration of this new mill has elevated the Group to
the position of second largest Iberian tissue producer, with a production and converting capacity of 180 thousand tonnes.
The Navigator Group’s main business is the production and sale of writing and printing uncoated woodfree paper (UWF) and
domestic consumption paper (Tissue), as well as pulp, and it is present in the whole value-added chain, from research and
development of forestry and agricultural production, to the purchase of wood and the production and sale of bleached eucalyptus
kraft pulp – BEKP and electric and thermal energy, as well as its commercialisation.
A more detailed description of the activity in each business line of Navigator is disclosed
in Note 2.1 - Revenue and segment reporting.
Navigator is included in the consolidation perimeter of Semapa – Sociedade de Investimento e Gestão, SGPS, S.A., the Parent
Company, and Sodim - SGPS, S.A., the final controlling entity.
In turn, Filipa Mendes de Almeida de Queiroz Pereira, Mafalda Mendes de Almeida de Queiroz Pereira and Lua Mónica Mendes de
Almeida de Queiroz Pereira hold joint control of Sodim - SGPS, S.A. (Sodim) through the combination of a shareholders'
agreement. (Sodim) with their respective direct and indirect shareholdings in the share capital of this company, joint control of
Sodim, Semapa and Navigator is attributable to each of them and to Sodim, under the terms of Article 20 of the Portuguese
Securities Code, 83.221% of the non-suspended voting rights relating to shares representing the share capital of Semapa and also
to each of them, Sodim and Semapa, 69.970% of the non-suspended voting rights relating to shares representing the share
capital of Navigator.
2023 Annual Report • Separate Financial Statements 506
1.2. Acquisition of the Gomà-Camps Group's consumer tissue
business in Spain
On 31 March 2023, Navigator acquired all the shares representing the share capital of Gomà-Camps Consumer, S.L.U., based in
Zaragoza, Spain, which in turn holds the entire share capital of Gomà-Camps France SAS, based in Castres, France. These
companies have been renamed Navigator Tissue Ejea, S.L.U. and Navigator Tissue France SAS, respectively.
This acquisition is part of the Navigator Group's ambitious growth and diversification plan and is expected to generate synergies in
the tissue segment, increase the Group's market share through access to Gomà-Camps' customer portfolio and reduce costs
through economies of scale. The goodwill arising from this transaction is not expected to be tax deductible.
Transferred consideration
In the context of the acquisition of Gomà-Camps Consumer, S.L.U., which in turn holds the entire share capital of Gomà-Camps
France SAS, the consideration transferred by the Company amounted to Euro 58,551,811 and was paid entirely in cash and cash
equivalents, with no contingent consideration associated with this acquisition.
Identification of assets and liabilities acquired and goodwill
As at this date, the necessary procedures to recognise and measure the identifiable assets acquired, the liabilities assumed and
consequently the calculation of the goodwill, in accordance with IFRS 3, have been concluded. This valuation was carried out by
specialised, independent external valuers and resulted in an increase in the fair value of the customer portfolio and property, plant
and equipment. Given the value of the net assets acquired of Euro 54,395,269, a goodwill of Euro 4,156,542 was calculated (Note
10.1).
The valuation techniques used to determine the fair value of the assets acquired were as follows:
Customer portfolio
In determining the fair value of the customer portfolio, the multi-period excess earnings method (MPEE) was used,
which considered the present value of the expected net cash flows of the portfolio
Property, plant and
equipment
The fair value of the property, plant and equipment acquired, namely land, buildings and factory equipment, was
determined in accordance with the replacement cost method, which consisted of identifying the replacement value of
the assets acquired adjusted for depreciation, in accordance with the useful life of the assets at the date of purchase.
According to the study, the following useful lives were considered:
- Buildings and other constructions - 40 years;
- Manufacturing equipment - between 25 and 30 years
2023 Annual Report • Separate Financial Statements 507
The net assets acquired, the fair value attributed, and the goodwill calculated at the date of acquisition are summarised as
follows:
Amounts in Euro
Group
Gomà-Camps
Consumer, S.L.U
Value allocation to
net assets acquired
Group Gomà-Camps
Consumer, S.L.U
Adjusted
Non-current assets
-
Other intangible assets - customer portfolio
-
1,600,000
1,600,000
Other intangible assets
404,765
-
404,765
Property, plant and equipment
42,966,095
38,240,800
81,206,895
Deferred tax assets
92,481
-
92,481
Other non-current assets
45,171
-
45,171
Current assets
Inventories
11,201,641
-
11,201,641
State
45,747
-
45,747
Other current receivables
16,295,513
-
16,295,513
Cash and cash equivalents
5,741,209
-
5,741,209
Non-current liabilities
Deferred tax liabilities
(162,596)
(9,960,200)
(10,122,796)
Provisions
(105,854)
-
(105,854)
Current liabilities
Interest-bearing liabilities
(32,672,968)
-
(32,672,968)
State
(2,165,791)
-
(2,165,791)
Government grants
(463,290)
-
(463,290)
Other payables
(16,707,454)
-
(16,707,454)
Total identifiable assets and liabilities
24,514,669
29,880,600
54,395,269
Goodwill
34,037,142
(29,880,600)
4,156,542
Total acquisition value
58,551,811
-
58,551,811
Acquisition-related costs
The Group incurred costs related to this acquisition amounting to Euro 493,741, related to legal fees and other due diligence
costs. These costs are recorded under external supplies and services in the Separate income statement.
1.3. Subsequent events
On March 22, 2024, through its subsidiary Navigator Paper UK Limited, the Navigator Group launched a public all-cash firm offer
(OPA) to acquire the entire issued and to-be-issued share capital of Accrol, a British company operating in the paper conversion
segment.
Accrol is a leader in the Tissue paper conversion segment in the UK, producing own-brand toilet paper rolls, kitchen rolls, and
facial tissues for most major retailers in the UK. In its last fiscal year, ending April 30, 2023, the turnover amounted to £242
million, with EBITDA reaching £15.6 million and Net Debt (pre-IFRS16) of £26.8 million.
Navigator Group sees this Offer as an attractive opportunity to enter the British market by acquiring a leading company in the
Tissue paper conversion sector, with competitive advantages, complementary values, strong alignment with Navigator, and a
strategic opportunity for sustained expansion of its Tissue business in the Western European market.
2023 Annual Report • Separate Financial Statements 508
The Offer was set at 38 pence (GBX) per share, representing a premium of 11.8% over the closing price of the British company on
March 21, 2024, which is the last trading day immediately preceding the Offer announcement, and values Accrol's equity at
approximately £127.5 million.
1.4. Basis for preparation
1.4.1. Authorisation to issue financial statements
These separate financial statements were approved by the Board of Directors on 26 March 2024. However, they are still subject to
approval by the General Shareholders Meeting, in accordance with the Portuguese commercial legislation.
The Company’s senior management, which are the members of the Board of Directors who sign this report, declare that, to the
best of their knowledge, the information contained herein was prepared in compliance with the applicable accounting standards,
providing a true and fair view of the assets and liabilities, the financial position and results of the Company.
1.4.2. Accounting Standards
The separate financial statements for the period ended 31 December 2023 were prepared in accordance with the International
Financial Reporting Standards (IFRS), effective 1 January 2023 and as adopted by the European Union.
1.4.3. Presentation currency and transactions in a currency other than the presentation currency
The items included in the Separate Financial Statements are measured using the currency of the economic environment in which
the entity operates (functional currency).
These financial statements are presented in Euro, which is the functional and reporting currency.
Transactions in currencies other than Euro are translated into the functional currency using the exchange rates at the date of the
transactions (Note 8.1.1).
The currency differences arising from differences between the exchange rates ruling at the transaction date and those ruling on
collection, payment or at the separate statement of financial position date, are recorded as income and expenses in the period
(Note 5.10).
The amounts recorded in profit or loss of subsidiaries were translated using the exchange rates prevailing at the dates of the
transactions. Where this is not possible, or where the cost of such a procedure exceeds the benefits to be derived therefrom, they
have been translated at the average exchange rate for the period. The differences resulting from the application of these rates
compared with the previous values were reflected as a separate component of Equity, under Other reserves (Note 5.5).
2023 Annual Report • Separate Financial Statements 509
Exchange rates used
31-12-2023
31-12-2022
Appreciation /
(Depreciation)
GBP (Sterling pound)
Average exchange rate for the period
0.87
0.85
-1.99%)
Closing exchange rate for the period
0.87
0.89
2.01%)
USD (American dollar)
Average exchange rate for the period
1.08
1.05
-2.71%)
Closing exchange rate for the period
1.11
1.07
-3.60%)
PLN (Polish zloti)
Average exchange rate for the period
4.54
4.69
3.09%)
Closing exchange rate for the period
4.34
4.68
7.29%)
SEK (Swedish krona)
Average exchange rate for the period
11.48
10.63
-7.98%)
Closing exchange rate for the period
11.10
11.12
0.23%)
CZK (Czech koruna)
Average exchange rate for the period
24.00
24.57
2.29%)
Closing exchange rate for the period
24.72
24.12
-2.52%)
CHF (Swiss franc)
Average exchange rate for the period
0.97
1.00
3.26%)
Closing exchange rate for the period
0.93
0.98
5.96%)
DKK (Danish krone)
Average exchange rate for the period
7.45
7.44
-0.15%)
Closing exchange rate for the period
7.45
7.44
-0.22%)
MZN (Mozambican metical)
Average exchange rate for the period
69.11
67.20
-2.83%)
Closing exchange rate for the period
70.65
68.18
-3.62%)
MAD (Moroccan dirham)
Average exchange rate for the period
10.96
10.69
-2.52%)
Closing exchange rate for the period
10.94
11.16
1.92%)
MXN (Mexican peso)
Average exchange rate for the period
19.18
21.18
9.42%)
Closing exchange rate for the period
18.72
20.86
10.23%)
AED (Dirham)
Average exchange rate for the period
3.97
3.87
-2.68%)
Closing exchange rate for the period
4.06
3.92
-3.60%)
CAD (Canadian dollar)
Average exchange rate for the period
1.46
1.37
-6.59%)
Closing exchange rate for the period
1.46
1.44
-1.40%)
ZAR (South African rand)
Average exchange rate for the period
19.96
17.21
-15.96%)
Closing exchange rate for the period
20.35
18.10
-12.43%)
BRL (Brazilian real)
Average exchange rate for the period
5.40
5.44
0.68%)
Closing exchange rate for the period
5.36
5.64
4.91%)
EGP (Egyptian pound)
Average exchange rate for the period
33.11
20.18
-64.05%)
Closing exchange rate for the period
34.27
26.31
-30.27%)
TRY (Turkish lira)
Average exchange rate for the period
25.76
17.42
-47.90%)
Closing exchange rate for the period
32.65
19.96
-63.55%)
2023 Annual Report • Separate Financial Statements 510
1.4.4. Basis for measurement
The accompanying separate financial statements have been prepared on a going concern basis from Navigator's books and
accounting records and based on historical cost, except for financial instruments measured at fair value through profit or loss or at
fair value through other comprehensive income (Note 8.3), in which derivative financial instruments are included (Note 8.2).
1.4.5. Comparability
These financial statements are comparable in all material respects with those of the previous year.
1.5. New IFRS standards adopted and to be adopted
1.5.1. Other standards, amendments and interpretations adopted or to be adopted
Standards, amendments and interpretations adopted in 2023
No impacts on the financial statements
Amendment
Date of
application
Standards and amendments endorsed by the European Union
Disclosure of Accounting policies
(Amendments to IAS 1
Presentation of Financial
Statements and IFRS Practice
Statement 2)
Following feedback that more guidance was needed to help companies decide what accounting
policy information should be disclosed, the IASB issued on 12 February 2021 amendments to
IAS 1 Presentation of Financial Statements and IFRS Practice Statement 2 Making Materiality
Judgements.
The key amendments to IAS 1 include: i) requiring companies to disclose their material
accounting policies rather than their significant accounting policies; ii) clarifying that
accounting policies related to immaterial transactions, other events or conditions are
themselves immaterial and as such need not be disclosed; and iii) clarifying that not all
accounting policies that relate to material transactions, are themselves material to a
company’s financial statements.
The IASB also amended IFRS Practice Statement 2 to include guidance and two additional
examples on the application of materiality to accounting policy disclosures. The amendments
are consistent with the refined definition of material:
“Accounting policy information is material if, when considered together with other information
included in an entity’s financial statements, it can reasonably be expected to influence
decisions that the primary users of general-purpose financial statements make on the basis of
those financial statements”.
1 January 2023
Amendments to IAS 8
Accounting policies, Changes in
Accounting Estimates and Errors:
Definition of Accounting
Estimates
The IASB has issued amendments to IAS 8 Accounting Policies, Changes in Accounting
Estimates and Errors to clarify how companies should distinguish changes in accounting
policies from changes in accounting estimates, with a primary focus on the definition of and
clarifications on accounting estimates.
The amendments introduce a new definition for accounting estimates: clarifying that they are
monetary amounts in the financial statements that are subject to measurement uncertainty.
The amendments also clarify the relationship between accounting policies and accounting
estimates by specifying that a company develops an accounting estimate to achieve the
objective set out by an accounting policy. The effects of changes in such inputs or
measurement techniques are changes in accounting estimates.
The amendments are effective for periods beginning on or after 1 January 2023, with earlier
application permitted, and will apply prospectively to changes in accounting estimates and
changes in accounting policies occurring on or after the beginning of the first annual reporting
period in which the company applies the amendments.
1 January 2023
Amendments to IAS 12: deferred
tax related to assets and
liabilities arising from a single
The IASB issued amendments to IAS 12 Income Taxes on 7 May 2021.
The amendments require companies to recognise deferred tax on transactions that, on initial
1 January 2023
2023 Annual Report • Separate Financial Statements 511
Amendment
Date of
application
transaction
recognition, give rise to equal amounts of taxable and deductible temporary differences.
In specified circumstances, companies are exempt from recognising deferred tax when they
recognise assets or liabilities for the first time. Previously, there had been some uncertainty
about whether the exemption applied to transactions such as leases and decommissioning
obligations—transactions for which companies recognise both an asset and a liability. The
amendments clarify that the exemption does not apply and that companies are required to
recognise deferred tax on such transactions. The aim of the amendments is to reduce diversity
in the reporting of deferred tax on leases and decommissioning obligations.
IFRS 17 — Insurance Contracts
The IASB issued on 18 May 2017 a standard that superseded IFRS 4 and completely reformed
the treatment of insurance contracts. The standard introduces significant changes to the way
in which the performance of insurance contracts is measured and presented with various
impacts also at the level of the financial position.
1 January 2023
Amendments to IFRS 17 -
Insurance Contracts: First-time
Adoption of IFRS 17 and IFRS 9 -
Comparative Information
The IASB has issued an amendment to the scope of the transitional requirements of IFRS 17 -
Insurance Contracts, which provides insurers with an option to improve the usefulness of
information to investors on first-time adoption of the new standard.
The change does not affect any other requirements of IFRS 17. IFRS 17 and IFRS 9 - Financial
Instruments have different transition requirements. For some insurers, these differences can
cause temporary accounting mismatches between financial assets and insurance contract
liabilities in the comparative information they present in the financial statements when
applying IFRS 17 and IFRS 9 for the first time.
The amendment helps insurers to avoid these temporary accounting mismatches and will
therefore increase the usefulness of comparative information for investors.
1 January 2023
Amendments to IAS 12 -
International Tax Reform - Pillar
Two Model Rules
On 23 May 2023, the IASB issued International Tax Reform - Pillar Two Model Rules -
Amendments to IAS 12 to clarify the application of IAS 12 - Income Taxes to income taxes
arising from tax legislation enacted or substantively enacted to implement the OECD Pillar Two
model rules.
The amendments introduce:
a) a mandatory temporary exception to accounting for deferred taxes arising from the
jurisdictional implementation of Pillar Two model rules; and
b) Disclosure requirements for affected entities to help users of financial statements
understand an entity's exposure to Pillar Two income tax arising from that legislation,
especially before its effective date.
The mandatory temporary exception—the use of which must be disclosed—is effective
immediately. The remaining disclosure requirements apply to annual reporting periods
beginning on or after 1 January 2023
1 January 2023
2023 Annual Report • Separate Financial Statements 512
Standards, amendments and interpretations to be adopted in subsequent periods
Amendment
Date of
application
Standards and amendments endorsed by the European Union which the Group has
opted not to apply early
Clarification requirements for
classifying liabilities as current
or non-current (amendments
to IAS 1 – Presentation of
Financial Statements)
The IASB issued on 23 January 2020 an amendment to IAS 1 Presentation of Financial
Statements to clarify how to classify debt and other liabilities as current and non-current.
The amendments clarify an IAS 1 criteria for classifying a liability as non-current: the
requirement for an entity to have the right to defer the liability’s settlement at least 12
months after the reporting period.
The amendments aim to:
a) specify that an entity's right to defer settlement must exist at the end of the reporting
period;
b) clarify that the classification is not affected by the Board's intentions or expectations as
to whether the entity will exercise its right to postpone settlement;
c) clarify how loan conditions affect classification; and
d) clarify the requirements to classify the liabilities that an entity will settle, or may settle,
by issuing its own equity instruments.
This amendment is effective for periods starting after 1 January 2024.
1 January 2024
Lease liabilities in sale and
leaseback transactions
(amendments to IFRS 16 -
Leases)
The IASB issued amendments to IFRS 16 - Leases in September 2022 that introduce a new
accounting model for variable payments in a sale and leaseback transaction. The
amendments confirm that:
- On initial recognition, the seller-lessee includes variable lease payments in measuring
a lease liability arising from a sale and leaseback transaction;
- After initial recognition, the seller-lessee applies the general requirements for
subsequent accounting for the lease liability so that it does not recognise any gain or
loss relating to the right of use it retains.
A seller-lessee may use different approaches to comply with the new requirements for
subsequent measurement.
The Amendments are applied for annual periods beginning on or after 1 January 2024, with
earlier application permitted.
In accordance with IAS 8 - Accounting Policies, Changes in Accounting Estimates and
Errors, a seller-lessee shall apply the amendments retrospectively to sale and leaseback
transactions entered into on or after the date of initial application of IFRS 16. This means
that it will have to identify and reassess sale and leaseback transactions entered into since
the implementation of IFRS 16 in 2019, and potentially restate those that include variable
lease payments.
1 January 2024
Standards and amendments not yet endorsed by the European Union
Amendments to IAS 7
Statement of Cash Flows and
IFRS 7 Financial Instruments:
Disclosures - Supplier Finance
Arrangements
On 25 May 2023, the International Accounting Standards Board (IASB) published Supplier
Finance Arrangements with amendments to IAS 7 - Statement of Cash Flows and IFRS 7 -
Financial Instruments Disclosures.
The amendments refer to the disclosure requirements relating to supplier finance
arrangements—also known as supply chain financing, accounts payable financing or
recourse factoring arrangements.
The new requirements supplement those already included in the IFRS standards and include
disclosures on:
- Terms and conditions of supplier finance agreements;
- The amounts of the liabilities which are the subject of such arrangements, for which part
of them the suppliers have already received payments from the providers of funds and
under which caption these liabilities are presented in the balance sheet;
- Maturity date intervals; and
- Information on liquidity risk.
The amendments are effective for periods beginning on or after 1 January 2024.
1 January 2024
Amendments to IAS 21 - The
Effects of Changes in Foreign
Exchange Rates: Lack of
Exchangeability
On 15 August 2023, the International Accounting Standards Board (IASB or Board) issued
Lack of Exchangeability (Amendments to IAS 21 - The Effects of Changes in Foreign Exchange
Rates) (the amendments).
The amendments clarify how an entity should assess whether a currency is exchangeable or
not and how it should determine a spot exchange rate in situations of lack of exchangeability.
1 January 2025
2023 Annual Report • Separate Financial Statements 513
Amendment
Date of
application
A currency is exchangeable for another currency when a company is able to exchange that
currency for another currency on the measurement date and for a specific purpose. When a
currency is not exchangeable, the company has to estimate a spot exchange rate.
According to the amendments, companies will have to provide new disclosures to help users
assess the impact of using an estimated exchange rate on financial statements. These
disclosures could include:
a) the nature and financial impacts of the currency not being exchangeable;
b) the spot exchange rate used;
c) the estimation process; and
d) the risks to the company because the currency is not exchangeable.
The amendments are effective for annual reporting periods beginning on or after 1 January
2025. Earlier application is permitted.
With respect to the above standards, which are not yet mandatory, the Company has not yet completed the calculation of all
impacts arising from their application and has therefore elected to apply them early, although these impacts are not expected to
be material.
1.6. Significant accounting estimates and judgments
The preparation of separate financial statements requires management to make judgements and estimates that affect the amount
of revenue, costs, assets, liabilities and disclosures at the date of the statement of financial position. To that effect, the
management's estimates and judgements are based on:
(i) the best information and knowledge of current events and in certain cases on the reports of independent experts; and
(ii) the actions that the Company considers it may have to take in the future.
On the date on which the operations take place, the outcome could differ from those estimates.
Significant estimates and judgements
The estimates and assumptions which present a significant risk of generating a material adjustment to the book value of assets
and liabilities in the following financial period are presented below:
Estimates and judgements
Notes
Uncertainty over Income Tax Treatments
6.1 - Income tax for the period
6.2 - Deferred taxes
Valuation of financial investments
10.1 – Investments in subsidiaries
2023 Annual Report • Separate Financial Statements 514
2. Operational performance
2.1. Revenue and segment reporting
Accounting policies
Within the Navigator Group, the Company operates as a trader of the Group's products and supplier of most of
the Group's raw materials.
In preparing the separate financial statements, the accounting policies used by the Company in the areas of revenue and segment
reporting are consistent with the policies applied in the consolidated financial statements, as described below.
Navigator Group business areas
The Navigator Group’s main business is the production and sale of writing and printing uncoated woodfree paper (UWF) and
domestic consumption paper (tissue) as well as pulp, and it is present in the whole value-added chain, from research and
development of forestry and agricultural production, to the purchase and sale of wood and the production and sale of bleached
eucalyptus kraft pulp – BEKP – and electric and thermal energy, as well as its commercialisation.
The Navigator Group has five industrial plants. BEKP, energy and UWF paper are produced in two plants located in Figueira da Foz
and Setúbal. BEKP energy and tissue paper are also produced in a plant located in Aveiro and the fourth plant, located in Vila
Velha de Ródão, only produces tissue paper. On 31 March, with the acquisition of the companies Gomà-Camps Consumer, S.L.U.
(Note 1.2), it now has a new industrial complex in Zaragoza, Spain, where it manufactures tissue paper.
Wood and cork are produced from woodlands from subsidiaries or leased in Portugal and Spain, and also form granted lands in
Mozambique. The production of cork and pine wood are sold to third parties while the eucalyptus wood is mainly consumed in the
production of BEKP.
A significant portion of the Group’s own BEKP production is consumed in the production of UWF and tissue paper. Sales of BEKP,
UWF and tissue paper are made to more than 130 countries around the world.
With regard to energy and steam production, the Group has three cogeneration plants, integrated in the production of pulp
producing steam and electricity, the former being consumed internally, and the latter sold to the national energy grid (RESP -
“Rede Elétrica Nacional de Serviço Público”). The Navigator Group also owns another two cogeneration units using natural gas,
integrated in the production of paper in Figueira da Foz (usually inactive) and in Setúbal, and two thermal power stations fueled
by residual forest biomass, with the output of the latter two sold to the national energy grid. It also has five photovoltaic plants for
self-consumption, two in Setúbal, one in Figueira da Foz, one at Raíz and one at Herdade de Espirra.
In 2023, we should also highlight the start of construction of new photovoltaic plants for self-consumption at the Figueira da Foz,
Aveiro and Vila Velha de Rodão industrial sites, which will make it possible to triple the installed capacity at the Group's sites from
the current 12MWp to around 38MWp.
Segment reporting
In accordance with IFRS 8, the Company considers an operating segment as a component of the group that develops business
activities from which it can obtain revenue and incur expenses, whose operating profit or loss are regularly reviewed by the
Executive Committee, which is primarily responsible for the operational decision-making for allocation of resources to the segment
and the assessment of its performance and for which separate financial information is available.
2023 Annual Report • Separate Financial Statements 515
The information used in segment reporting corresponds to the financial information prepared by the Company.
Although the Group has defined a series of segments, Navigator is only responsible for the marketing of the products produced by
its subsidiaries and for the management of those subsidiaries. Therefore, it is considered that all the Company's activities fall into
one single segment and so no further breakdown is required.
Revenue
Revenue is presented by goods and services sold and by geographical area, based on the country of destination of the goods and
services sold by the Company.
Commercial contracts with Customers refer essentially to the sale of goods such as tissue paper and pulp, and to an extent, to the
transportation inherent to those goods, when applicable.
Revenue recognition by group of materials is described as follows:
BEKP pulp
Pulp revenue results from sales made to the Company's subsidiaries and international producers of paper and decoration.
Revenue is recognised at a specific time, by the amount of the performance obligation satisfied, the price of the transaction
corresponding to a fixed amount invoiced on the basis of quantities sold, less cash discounts and quantity discounts, which are
reliably determinable. On the export side, the transfer of control of the products generally occurs when the products are
transferred to the control of the customer, in accordance with the negotiated Incoterms.
The Company is solely responsible for selling BEKP pulp produced by Navigator Group companies, intended for sale to the market
and to the Group's UWF paper and tissue producers.
UWF
Paper revenue refers to sales made through Commercial Distributors (B2B), which include large distributors, wholesalers or
commercial operators, as well as producers and processors of paper products. Revenue is recognised at a specific time, on the
date of delivery of the product to the customer when the transfer of control occurs, by the amount of the performance obligation
satisfied, and the price of the transaction corresponds to a fixed amount invoiced according to the quantities sold, less cash
discounts and quantity discounts, which are reliably determinable.
Tissue
Tissue revenue results from sales of tissue paper produced for the private label of national and international retail chains.
Revenue is recognised at a specific moment, by the amount of the performance obligation satisfied, and the price of the
transaction corresponds to a fixed amount invoiced according to quantities sold, less cash discounts and quantity discounts,
which are reliably determined. Revenue is recognised against the delivery of the product, at which time the transfer of control
over the product is deemed to take place.
Central
purchasing
operations
The revenue from goods purchased from producers and distributors to supply the Group's mills that use them as raw materials
for processing is recognised on the date of delivery of the product to the customer, for the amount of the performance obligation
satisfied, where the transaction price corresponds to a fixed amount invoiced based on the quantities sold that can be reliably
determined.
2023 Annual Report • Separate Financial Statements 516
Detail of revenue by materials/services groups and geographical areas
During the periods ended 31 December 2023 and 2022, the revenue from sales of goods and rendering of services is detailed as
follows:
Amounts in Euro
2023
2022
Sales
UWF Paper
Portugal
68,015,492
86,483,079
Rest of Europe
858,105,848
1,107,618,863
United States of America
35,416,136
164,176,085
Rest of World
260,278,799
383,126,808
1,221,816,275
1,741,404,835
Tissue Paper
Portugal
105,623,826
93,322,231
Rest of Europe
115,323,793
113,103,140
Rest of World
5,937,111
4,182,605
226,884,730
210,607,976
BEKP pulp to market
Portugal
3,312,700
4,043,366
Rest of Europe
90,461,707
162,456,528
Rest of World
155,707,960
30,916,880
249,482,367
197,416,774
BEKP pulp supplied to subsidiaries
Portugal
545,441,729
854,575,688
Rest of Europe
12,365,173
-
557,806,902
854,575,688
Sales of goods - subsidiaries
310,890,035
454,602,177
Total sales
2,566,880,309
3,458,607,450
Services rendered
Management and administrative services of subsidiaries
92,825,518
72,598,267
Total services rendered
92,825,518
72,598,267
Total revenue
2,659,705,827
3,531,205,717
In 2023, the Company had a turnover of Euro 2,659,705,827, with sales of UWF paper accounting for around 46% of turnover
(2022: 49%), pulp sales 30% (2022: 30%), tissue paper sales 9% (2022: 6%) and sales of raw materials to supply the Group's
mills 12% (2022: 13%).
The year 2023 compares to a unique year, in which prices reached historic levels, due to an imbalance between supply and
demand, justified by logistical limitations and a significant increase in costs throughout the year.
In the first half of the year there was a sharp reduction in pulp reference prices, compared to historical highs reached in 2022, due
to a drop in demand, particularly in Europe. Nevertheless, the volume of pulp sales to the market increased, due to the greater
availability of pulp, considering the lower need for integration by the Group's paper mills.
In the UWF paper segment, the first few months of 2023 were affected by the accumulation, during 2022, of a high volume of
inventories throughout the distribution chain, which significantly affected demand. As a result, there was a historically low level of
incoming orders, but by the end of the year there was already an improvement in line with the decrease in inventories.
The tissue segment, with shorter supply chains and therefore less tendency to build up inventories, performed better, also
benefiting from market share gains and positive synergies from the integration of the new tissue mill in Espanha.
2023 Annual Report • Separate Financial Statements 517
Services rendered to subsidiaries include corporate services related to the strategic orientation of holdings and an intermediation
fee for managing the wood supply of the Group's pulp producers.
2.2. Other operating income
For the periods ended 31 December 2023 and 31 December 2022, Other operating income is detailed as follows:
Amounts in Euro
2023
2022
Gains on disposal of non-current assets
178,601
-
Supplementary gains
14,400
-
Impairment reversal on receivables
1,934,771
1,283
Impairment reversal on inventories (Note 4.1.3)
133,717
1,484,115
Discounts received on purchases
237,959
805,593
Gains on inventories
-
7,518
Compensations
1,359,235
10
Other operating income
1,257,014
1,179,898
5,115,697
3,478,417
The amount of Euro 1,359,235 refers to compensation received from an insurance company in 2023 associated with the pellet
business in the United States which was sold in 2018.
2023 Annual Report • Separate Financial Statements 518
2.3. Other operating expenses
Amounts in Euro
2023
2022
Cost of goods sold and materials consumed (Note 4.1.2)
2,339,940,354
3,138,646,788
External services and supplies
Transportation of goods
112,666,024
196,480,608
Specialised services
76,347,831
74,683,026
Royalties
22,826,264
34,346,641
Fees
1,251,496
5,918,051
Insurance
2,300,454
2,011,567
Rentals
1,972,532
1,074,581
Fees
1,861,555
896,480
Travel and accommodation
1,174,127
1,140,931
Advertising and marketing
394,109
471,462
Energy and fluids
131,472
178,533
Communications
105,514
129,715
Materials
113,855
104,174
Subcontracts
104,710
240,455
Maintenance and repair
22,659
19,407
Other
362,038
313,915
221,634,640
318,009,546
Payroll costs (Note 7.1)
7,186,383
13,521,497
Other operating expenses
Impairment losses on inventories (Note 4.1.4)
465,150
429,713
Impairment losses on receivables
-
3,268,851
Other inventory losses
979,581
2,661,376
Donations
95,985
154,864
Membership fees
352,990
301,707
Losses on disposal of non-current assets
3,489
-
Cash discounts granted
184,648
252,457
Indirect taxes
177,825
86,637
Other operating expenses
140,802
183,521
2,400,470
7,339,126
Net provisions (Note 9.1)
(1,789,744)
(857,042)
Total operating expenses
2,571,161,847
3,477,516,957
There was a generalised reduction in the costs borne by the company, largely explained by the reduction in quantities sold, with
the biggest impacts in the Transportation of goods, Royalties and Fees captions.
With regard to logistics costs, the reduction is also due to the fact that in 2022 there was a major shortage of means of
transporting goods, especially by sea, and the first half of that year was marked by increased congestion in the ports.
On the other hand, in 2023, there was a reverse trend in rental expenses due to the greater use of warehouses as a result of the
slow reduction of inventories of printing and packaging paper accumulated throughout the distribution chain in 2022.
The Specialised services caption includes costs for marketing and sales agency services of Euro 19,914,058 (31 December 2022:
Euro 22,195,277).
2023 Annual Report • Separate Financial Statements 519
Audit fees
Amounts in Euro
2023
2022
Expenses in the
period
Fees invoiced
Expenses in the
period
Fees invoiced
KPMG (SROC) and other entities belonging to the same
network
Audit fees
195,000
169,000
166,962
145,462
Other assurance services
13,260
34,010
12,378
17,750
Other services
475
475
129,748
114,250
208,735
203,485
309,088
277,462
The services indicated as "Other assurance services" relate to the reporting of financial information and financial ratio verification
services.
The Board of Directors believes there are adequate procedures safeguarding the independence of auditors, through the
Supervisory Board process analysis of the work proposed and careful definition of the work to be performed by the auditors.
2023 Annual Report • Separate Financial Statements 520
3. Investments
3.1. Property, plant and equipment
Movements in property, plant and equipment
Land
Buildings
and other
constructions
Basic
equipment
Transportation
equipment
Administrative
equipment
Other
property,
plant and
equipment
Assets
under
construction
Total
Amounts in Euro
Gross amount
Balance as at 1 January 2022
12,872
693,726
1,392,678
4,056,768
8,118,401
10,531,603
15,028
24,821,076
Acquisitions
-
-
-
-
-
-
-
-
Disposals
-
-
-
-
(3,651,224)
-
-
(3,651,224)
Adjustments, transfers
and write-offs
-
-
-
-
-
15,028
(15,028)
-
Balance as at 31 December 2022
12,872
693,726
1,392,678
4,056,768
4,467,177
10,546,631
-
21,169,852
Acquisitions
-
-
-
-
-
117,300
-
117,300
Disposals
(5,415)
-
-
-
-
-
-
(5,415)
Adjustments, transfers
and write-offs
-
-
(18,179)
(392,191)
(342,055)
(81,293)
-
(833,718)
Balance as at 31 December 2023
7,457
693,726
1,374,499
3,664,577
4,125,122
10,582,638
-
20,448,019
Accumulated depreciation
and impairment losses
Balance as at 1 January 2022
-
(62,772)
(1,368,100)
(3,929,168)
(8,043,410)
(10,509,121)
-
(23,912,571)
Depreciation for the period
(Note 3.7)
-
(14,791)
(12,634)
(13,014)
(8,217)
(2,545)
-
(51,201)
Disposals
-
-
-
-
3,648,943
-
-
3,648,943
Adjustments, transfers
and write-offs
-
-
-
-
-
-
-
-
Balance as at 31 December 2022
-
(77,563)
(1,380,734)
(3,942,181)
(4,402,684)
(10,511,665)
-
(20,314,830)
Depreciation for the period
(Note 3.7)
-
(14,791)
(9,267)
(13,014)
(9,588)
(7,525)
-
(54,185)
Disposals
-
-
-
-
-
-
-
-
Adjustments, transfers
and write-offs
-
-
16,180
392,166
336,147
85,735
-
830,228
Balance as at 31 December 2023
-
(92,354)
(1,373,821)
(3,563,029)
(4,076,125)
(10,433,455)
-
(19,538,787)
Net book value as at
1 January 2022
12,872
630,954
24,578
127,600
74,991
22,483
15,028
908,505
Net book value as at
31 December 2022
12,872
616,163
11,944
114,587
64,493
34,966
-
855,022
Net book value as at
31 December 2023
7,457
601,372
678
101,548
48,997
149,183
-
909,232
2023 Annual Report • Separate Financial Statements 521
Accounting policies
Recognition and initial measurement
Property, plant and equipment acquired up to 1 January 2004 (transition date to IFRS) are recorded at acquisition
cost, or revalued acquisition cost in accordance with generally accepted accounting principles in Portugal until that
date, net of amortisation and accumulated impairment losses.
Property, plant and equipment acquired after the transition date are shown at cost, less accumulated depreciation and impairment
losses.
Depreciation and impairment
We use the straight-line method from the moment the asset is available for use and using the rates that best reflect their
estimated useful life.
Average useful life
2023
2022
Buildings and other constructions
20 – 50
20 – 50
Basic equipment
7 – 35
7 – 35
Transportation equipment
4 – 9
4 – 9
Administrative equipment
4 – 8
4 – 8
Other property, plant and equipment
3 – 21
3 – 21
The residual values of the assets and respective useful lives are reviewed and adjusted, on the date of the Separate statement of
financial position. When the carrying amount of the asset exceeds its realisable value, the asset is written down to the estimated
recoverable amount, and an impairment charge is booked.
Subsequent costs
Scheduled maintenance expenses are considered a component of the acquisition cost of property, plant and equipment and are
fully depreciated by the next forecasted maintenance date.
All other repairs and maintenance costs are charged to the income statement in the financial period in which they are incurred.
Write-offs and disposals
Gains or losses arising from write-offs or disposals are determined by the difference between the proceeds from the disposals
when applicable less transaction costs and the carrying amount of the asset and are recognised in the income statement as Other
operating income (Note 2.2) or Other operating expenses (Note 2.3).
2023 Annual Report • Separate Financial Statements 522
3.2. Right-of-use assets
Movements in right-of-use assets
Amounts in Euro
Buildings
Vehicles
Total
Gross amount
Balance as at 1 January 2022
4,277,508
44,313
4,321,821
Acquisitions
-
-
-
Adjustments, transfers and write-offs
-
10,583
10,583
Balance as at 31 December 2022
4,277,508
54,896
4,332,404
Acquisitions
-
-
-
Adjustments, transfers and write-offs
53,743
(35,612)
18,131
Balance as at 31 December 2023
4,331,251
19,284
4,350,535
Accumulated depreciation and impairment losses
-
Balance as at 1 January 2022
(1,514,857)
(38,305)
(1,553,162)
Depreciation
(510,028)
(13,090)
(523,118)
Balance as at 31 December 2022
(2,024,884)
(51,396)
(2,076,280)
Depreciation
(518,682)
(8,610)
(527,292)
Adjustments, transfers and write-offs
-
40,722
40,722
Balance as at 31 December 2023
(2,543,566)
(19,284)
(2,562,850)
Net book value as at 1 January 2022
2,762,651
6,008
2,768,659
Net book value as at 31 December 2022
2,252,624
3,500
2,256,124
Net book value as at 31 December 2023
1,787,685
-
1,787,685
The caption Buildings refers to the lease agreement entered into between The Navigator Company, S.A. e a MaxiRent - Fundo de
Investimento Imobiliário Fechado for the building located at Avenida Fontes Pereira de Melo 27, in Lisbon, for use as an office until
May 2027.
Accounting policies
At the date the lease enters into force, the Company recognises right-of-use assets at its cost, which corresponds
to the initial amount of the lease liability adjusted for: i) any prepayments; ii) lease incentives received; and iii)
initial direct costs incurred.
To the right-of-use asset, the estimate of removing and/or restoring the underlying asset and/or the location where it is located
may be added, when required by the lease agreement.
The right-of-use asset is subsequently depreciated using the straight-line method, from the start date until the lower between the
end of the asset's useful life and the lease term. Additionally, the right-of-use asset reduced of impairment losses, if any, and
adjusted for any remeasurement of the lease liability. The useful life considered for each class of right-of-use asset is equal to the
useful life of Property, plant and equipment (Note 3.1) in the same class when there is a call-option and the Company expects to
exercise it.
Short-term leases and low-value asset leases
The Company recognises payments for leases of 12 months or less and for leases of assets whose individual acquisition value is
less than USD 5,000 directly as operating expenses of the period (Note 2.3), on a straight-line basis.
2023 Annual Report • Separate Financial Statements 523
3.3. Depreciation, amortisation and impairment losses
Amounts in Euro
2023
2022
Depreciation of property, plant and equipment for the period (Note 3.1)
54,185
51,201
Use of government grants
(988)
(988)
Depreciation of property, plant and equipment, net of grants charged-off
53,197
50,213
Depreciation of right-of-use assets for the period (Note 3.2)
527,292
523,118
580,489
573,331
2023 Annual Report • Separate Financial Statements 524
4. Working capital
4.1. Inventories
4.1.1. Inventories - detail by nature
Amounts net of accumulated impairment losses
31-12-2023
31-12-2022
Amounts in Euro
Gross amount
Impairment
Net amout
Gross amount
Impairment
Net amout
BEKP pulp
10,621,680
(136,092)
10,485,588
14,800,385
(226,674)
14,573,711
UWF Paper
16,002,438
(963,739)
15,038,699
6,904,701
(516,528)
6,388,173
Tissue Paper
2,586,851
(24,967)
2,561,884
1,565,233
(7,029)
1,558,204
Goods supplied to the Group's mills
4,170,909
(141,061)
4,029,848
3,591,693
(184,196)
3,407,497
Total
33,381,878
(1,265,859)
32,116,019
26,862,012
(934,427)
25,927,585
Inventories – distribution by geographical area
Amounts in Euro
31-12-2023
%
31-12-2022
%
Portugal
BEKP pulp
7,463,479
22.36%)
3,002,606
11.18%)
UWF Paper
8,220,029
24.62%)
1,169,870
4.36%)
Tissue Paper
437,634
1.31%)
600,413
2.24%)
Goods used for Group supply
4,170,909
12.49%)
3,591,693
13.37%)
20,292,051
60.79%)
8,364,582
31.14%)
Rest of Europe
BEKP pulp
3,158,201
9.46%)
11,797,779
43.92%)
UWF Paper
7,782,409
23.31%)
5,734,831
21.35%)
Tissue Paper
2,149,217
6.44%)
964,820
3.59%)
13,089,827
39.21%)
18,497,430
68.86%)
33,381,878
100.00%)
26,862,012
100.00%)
The Company's inventories include Euro 14,673,749 (31 December 2022: Euro 1,770,283) relating to UWF paper, tissue paper
and pulp for which invoices have already been issued but whose control has not been transferred to Trade receivables.
As at 31 December 2023 and 31 December 2022, there are no inventories in which ownership is restricted and/or pledged as
collateral for liabilities.
4.1.2. Cost of goods sold and materials consumed in the period
Amounts in Euro
2023
2022
Opening balance
25,927,585
18,548,495
Purchases
2,347,439,802
3,147,625,333
Gains / (losses) on inventories (Notes 2.2 and 2.3)
(979,581)
(2,653,858)
Gains / (losses) by impairment (Notes 2.2 and 2.3)
(331,433)
1,054,403
Closing balance
(32,116,019)
(25,927,585)
Cost of goods sold and materials consumed (Note 2.3)
2,339,940,354
3,138,646,788
2023 Annual Report • Separate Financial Statements 525
Costs of goods and materials consumed by type
Amounts in Euro
2023
2022
BEKP Pulp - sales to market
255,196,325
172,783,247
BEKP Pulp - included in the Group
559,539,342
853,094,541
UWF Paper
979,105,940
1,445,591,986
Tissue Paper
238,255,673
213,120,626
Goods supplied to the Group's mills
307,843,074
454,056,388
2,339,940,354
3,138,646,788
4.1.3. Movements in impairment losses in inventories
Amounts in Euro
2023
2022
Opening balance
(934,426)
(1,988,828)
Increases (Note 2.3)
(465,150)
(429,713)
Reversals (Note 2.2)
133,717
1,484,115
Impact in profit or loss for the period
(331,433)
1,054,402
Charge-off
-
-
Closing balance
(1,265,859)
(934,426)
The impairment losses in inventories recorded in 2023 and 2022 are related to adjustments in the stock of UWF paper and
Eucalyptus pulp.
Accounting policies
Goods
The goods held by Navigator correspond essentially to eucalyptus pulp, UWF paper and tissue paper acquired from
its subsidiaries, for sale to the market. It also includes materials acquired from third parties to supply subsidiaries as part of the
Navigator Group's central purchasing functions.
The Company acts as the Navigator Group's central purchasing body, and most of the Group's purchases of raw materials are
made centrally by the Company, which then supplies the manufacturing companies, except for wood supply.
Goods and raw, subsidiary and consumable materials are valued at the lower of their purchase cost or their net realisable value.
The purchase cost includes ancillary costs and it is determined using the weighted average cost as the valuation method.
2023 Annual Report • Separate Financial Statements 526
4.2. Receivables
31-12-2023
31-12-2022
Amounts in Euro
Non-current
Current
Total
Non-current
Current
Total
Trade receivables
-
203,679,470
203,679,470
-
273,900,581
273,900,581
Receivables - related companies (Note 10.2)
-
490,767,984
484,121,863
-
409,610,821
409,610,821
State
-
38,961,563
38,961,563
-
42,335,090
42,335,090
Tax consolidation - related parties (Note 10.2)
-
59,649,931
59,649,931
-
123,679,484
123,679,484
Accrued income
-
547,437
547,437
-
645,515
645,515
Deferred expenses
-
30,209
30,209
-
1,033
1,033
Derivative financial instruments (Note 8.2)
-
19,458,938
19,458,938
-
48,514,443
48,514,443
Advances to suppliers
-
3,276,567
3,276,567
-
891,489
891,489
Other receivables
27,956
149,483
177,439
6,684
427,884
434,568
27,956
816,521,582
809,903,417
6,684
900,006,340
900,013,024
The amounts above are net of accumulated impairment losses. Analysis of impairment for receivables is presented
in Note 8.1.4 - Credit risk.
Other - non-current
The amount recognised as non-current in 2023 relates to financial incentives receivable, namely under the RRP (Recovery and
Resilience Plan) and a VAT guarantee related to the Company's VAT registration in Switzerland, amounting to Euro 6,684.
State
Amounts in Euro
31-12-2023
31-12-2022
Value added tax - recoverable
-
-
Value Added Tax - repayment requests
38,961,563
42,335,090
38,961,563
42,335,090
Up to the date of issuing this report, Euro 38,961,563 of the outstanding amounts as at 31 December 2023, had already been
received. The amounts requested as at 31 December 2022 were received during the first half of 2023.
Accrued income
Amounts in Euro
31-12-2023
31-12-2022
Interest receivable
212,424
-
Interest receivable - related companies (Note 10.2)
-
645,515
Other
335,013
-
547,437
645,515
2023 Annual Report • Separate Financial Statements 527
Accounting policies
Trade receivables and other debtors
Classification
Trade receivables balances result from the Company's main activities and the business model followed is the collection of
contractual cash flows.
Balances from other debtors generally assume the business model of collecting contractual cash flows.
Initial measurement
At fair value.
Subsequent measurement
At amortised cost, net of impairment losses.
Impairment from Trade receivables
Impairment losses are recorded based on the simplified model provided for in IFRS 9, recording expected losses until maturity.
The expected losses are determined on the basis of the experience of historical actual losses over a statistically significant period
and representative of the specific characteristics of the underlying credit risk (Note 8.1.4).
Impairment from other debtors
Impairment losses are recorded on the basis of the general estimated credit loss model of IFRS 9.
4.3. Payables
Amounts in Euro
31-12-2023
31-12-2022
Trade payables
64,536,033
107,305,035
Payables - related companies (Note 10.2)
545,994,019
874,390,872
State
2,227,427
3,976,192
Advances from customers
6,473,115
-
Other payables
239,850
258,905
Derivative financial instruments (Note 8.2)
5,691,817
4,682,533
Accrued expenses - payroll
9,165,030
15,204,544
Accrued expenses - interest payable
4,192,903
4,032,371
Accrued expenses - logistics and sales commissions
11,665,248
18,203,760
Accrued expenses - related companies (Note 10.2)
25,094,238
18,906,986
Other accrued expenses
2,325,765
1,918,689
Deferred income - operating grants
61,450
7,539
677,666,895
1,048,887,425
2023 Annual Report • Separate Financial Statements 528
The decrease in the caption is mainly due to the reduction in balances with related parties, namely the subsidiaries Navigator
Papel Setúbal, S.A., Navigator Pulp Setúbal, S.A. and Navigator Parques Industriais, S.A., with which there were also share capital
decreases at the end of the year.
The decrease in Accrued expenses - payroll results from the recognition of a higher amount for bonuses to employees in 2022
compared to 2023.
State
Amounts in Euro
31-12-2023
31-12-2022
Personal income tax withheld (IRS)
349,695
832,566
Value added tax
1,456,503
2,757,958
Social Security contributions
421,229
385,557
Other
-
111
2,227,427
3,976,192
As at 31 December 2023 and 31 December 2022, there were no arrears with the State.
Accounting policies
Trade payables and other current liabilities are initially recorded at their fair value and subsequently measured at
amortised cost.
2023 Annual Report • Separate Financial Statements 529
5. Capital structure
5.1. Capital management
Capital management policy
For capital management purposes, the Company defines capital as including equity and net debt.
The Company's objectives in relation to capital management are:
i. To safeguard the Company's ability to continue as a going concern and thus provide returns for Shareholders and
benefits for its remaining Stakeholders;
ii. To keep a solid capital structure to support the growth of its business; and
iii. To maintain an optimal capital structure that enables it to reduce the cost of capital.
In order to maintain or adjust its capital structure, the Company can adjust the amount of dividends payable to its
Shareholders, return capital to its Shareholders, issue new shares or sell assets to lower its borrowings.
In line with the sector, the Company monitors its capital based on the gearing ratio, defined as the proportion between net
debt and total capital.
Net interest-bearing debt is calculated by adding the total amount of loans (including the current and non-current portions
as disclosed in the statement of financial position) and deducting all cash and cash equivalents. Total equity is calculated by
adding Shareholders’ equity (as shown in the statement of financial position), to interest-bearing net debt, and excluding
treasury shares and non-controlling interests.
The Company calculates the gearing ratio as follows:
Amounts in Euro
31-12-2023
31-12-2022
Interest-bearing liabilities (Note 5.6)
897,030,355
985,446,453
Cash and cash equivalents (Note 5.8)
(310,150,771)
(390,640,161)
Net debt
586,879,584
594,806,292
Equity
1,315,245,815
1,259,409,537
Treasury shares
-
-
Equity, except for treasury shares
1,315,245,815
1,259,409,537
Total equity
1,902,125,399
1,854,215,829
Gearing
30.85%
32.08%
2023 Annual Report • Separate Financial Statements 530
5.2. Share Capital and treasury shares
The Navigator Company, S.A. is a public company with its shares quoted on the Euronext Lisbon.
As at 31 December 2023, The Navigator Company, S.A.’s share capital of Euro 500,000,000 was fully subscribed and is
represented by 711,183,069 shares without nominal value (31 December 2022: 711,183,069 shares).
As at 31 December 2023 and 31 December 2022, the Shareholders with qualified shareholdings in the Company’s capital were as
follows:
31-12-2023
31-12-2022
Entity
No. of shares
%
No. of shares
%
Semapa, SGPS, S.A.
497,617,299
69.97%)
497,617,299
69.97%)
Floating shares
213,565,770
30.03%)
213,565,770
30.03%)
711,183,069
100.0%)
711,183,069
100.0%)
As at 31 December 2023, the unit value of each share was Euro 3.55 (31 December 2022: Euro 3.454) and the market
capitalisation of the Company at this date amounted to Euro 2,524,699,895 (31 December 2022: Euro 2,456,426,320), compared
to equity of Euro 1,315,245,815 (31 December 2022: Euro 1,259,409,537).
Accounting policies
Ordinary shares are classified in Shareholders’ equity.
Costs directly attributable to the issue of new shares or other equity instruments are reported as a deduction, net
of taxes, from the proceeds of the issue.
Costs directly attributable to the issue of new shares or options for the acquisition of a new business are deducted from the
amount issued.
When such shares are subsequently disposed or reissued, any proceeds, net of the directly attributable transaction costs and
taxes, is directly reflected in the Shareholders’ equity and not in profit or loss for the period.
2023 Annual Report • Separate Financial Statements 531
5.3. Earnings per share
2023
2022
Profit attributable to Navigator's shareholders (Euro)
274,923,820
392,537,070
Total number of shares issued
711,183,069
711,183,069
Weighted average number of shares
711,183,069
711,183,069
Basic earnings per share (Euro)
0.387
0.552
Diluted earnings per share (Euro)
0.387
0.552
Accounting policies
Basic earnings per share are determined based on the division of profits or losses attributable to the ordinary
Shareholders of the Company by the weighted average number of common shares outstanding during the period.
For the purpose of calculating diluted earnings per share, the Company adjusts the profits or losses attributable to ordinary equity
holders, as well as the weighted average number of outstanding shares for the purposes of all potential dilutive common shares.
5.4. Dividends
Amounts in Euro
Amount
approved
Dividends per share
(Euro)
Allocations in 2023
Distribution of retained earnings
199,984,679
0.281
Allocations in 2022
Distribution of retained earnings
131,632,875
0.185
Distribution of reserves
118,355,086
0.166
At the General Shareholders Meeting held on 17 May 2023, The Navigator Company, S.A. resolved to distribute dividends in the
amount of Euro 199,984,679.
At the General Shareholders Meeting held on 27 May 2022, The Navigator Company, S.A. resolved to distribute dividends in the
amount of Euro 99,992,340.
At the General Shareholders Meeting held on 21 November 2022, The Navigator Company, S.A. resolved to distribute reserves
amounting to Euro 149,995,621, of which Euro 118,355,086 came from the Other reserves and Euro 31,640,535 was recorded in
Retained earnings.
Accounting policies
The distribution of dividends to equity holders is recognised as a liability in the Financial Statements in the period
in which the dividends are approved by the Shareholders at the General Shareholders Meeting and up until the
time of their payment or, in the case of anticipated distributions, when approved by the Board of Directors.
2023 Annual Report • Separate Financial Statements 532
5.5. Reserves and Retained earnings
Amounts in Euro
31-12-2023
31-12-2022
Reserves by applying the equity method
(404,214,827)
(405,228,340)
Fair value reserves
12,898,767
33,997,828
Legal reserve
100,000,000
100,000,000
Free reserves
3,481,014
3,481,014
Other reserves
(2,377,265)
(2,377,265)
Retained earnings
830,534,306
636,999,230
Reserves and retained earnings
540,321,995
366,872,467
Reserves by applying the equity method – details
Company
31-12-2023
31-12-2022
Subsidiaries
Soc. Vinhos Herdade Espirra, S.A.
-
(352)
Navigator Brands, S.A.
(489,989,689)
(493,026,037)
Navigator Pulp Aveiro, S.A.
(7,936,300)
(7,936,300)
Enerpulp, S.A.
154,000
154,000
Navigator Parques Industriais, S.A.
(1,499,368)
(1,499,368)
Portucel Moçambique, S.A.
26,069,669
24,336,582
Navigator Pulp Setúbal, S.A.
154,000
154,000
Navigator Pulp Figueira, S.A.
615,954
615,945
Navigator Forest Portugal, S.A.
754,578
(735,406)
Navigator Paper Setúbal, S.A.
(15,238,322)
(11,396,307)
Navigtor Tissue Aveiro, S.A.
2,117,121
2,117,121
Navigator Paper Figueira, S.A.
79,783,696
79,783,696
Raíz - Inst. Investigação Floresta e Papel
816,570
666,739
Empremédia - Corretores de Seguros, S.A.
245,721
234,017
Empremedia DAC
(222,470)
1,325,871
Navigator Paper Mexico
(40,150)
(22,522)
Navigator Egypt
161
(19)
Subsidiaries
(404,214,827)
(405,228,340)
2023 Annual Report • Separate Financial Statements 533
Fair value reserves– details
31-12-2023
31-12-2022
Amounts in Euro
Gross amount
Tax
Net amout
Gross amount
Tax
Net amout
Interest rate risk hedging
16,015,134
(4,404,162)
11,610,972
30,899,904
(8,497,474)
22,402,430
Hedging exchange rate risk and others
1,776,268
(488,473)
1,287,795
15,993,652
(4,398,254)
11,595,398
17,791,402
(4,892,635)
12,898,767
46,893,556
(12,895,728)
33,997,828
Fair value reserves - movements
Amounts in Euro
31-12-2023
31-12-2022
Opening balance
33,997,828
(5,604,076)
Changes in the fair value of derivative financial instruments (Note 8.2)
(29,102,154)
54,623,316
Deferred tax (Note 6.2)
8,003,093
(15,021,412)
Closing balance
12,898,767
33,997,828
The amount transferred from reserves to profit or loss as a result of the settlement or maturity of hedging instruments is broken
down as follows:
a) Transfer to profit or loss of: i) energy and pulp hedging instruments included in Sales with a positive impact on profit or
loss of Euro 28,523,595; and ii) interest rate hedging instruments, which had a positive impact on financial profit or loss
of Euro 9,722,523 (Note 5.10);
b) Changes in the fair value of hedging derivative financial instruments amounted to negative Euro 9,143,964.
Accounting policies
Reserves by applying the equity method
Corresponds to the accumulated change in changes in equity in the Company's subsidiaries whose investment is
measured by the equity method (Note 10.1). In accordance with the Portuguese commercial legislation, these reserves are not
distributable.
Fair value reserves
It corresponds to the accumulated change in fair value of derivative financial instruments classified as hedging instruments (Note
8.2), net of deferred taxes.
Changes related to derivatives are reclassified to profit or loss for the period (Note 5.10) as the hedged instruments affect profit
or loss for the period. The fair value adjustments of financial investments recorded under this caption is not recycled to profit or
loss.
Legal reserve
The Portuguese commercial legislation prescribes that at least 5% of annual net profit must be transferred to the legal reserve,
until this is equal to at least 20% of the share capital. This reserve cannot be distributed unless the company is liquidated. It may,
however, be drawn on to absorb losses, after other reserves are exhausted, or incorporated in the share capital.
The legal reserve is constituted by its maximum amount in the periods presented.
2023 Annual Report • Separate Financial Statements 534
Other reserves
This caption corresponds to reserves constituted through the transfer of prior period’s profit and other movements. The portion of
the balance corresponding to the acquisition value of treasury shares held (Note 5.2), if any, is not distributable.
5.6. Interest-bearing liabilities
31-12-2023
31-12-2022
Amounts in Euro
Non-current
Current
Total
Non-current
Current
Total
Bond loans
397,500,000
22,500,000
420,000,000
420,000,000
22,500,000
442,500,000
Commercial paper
70,000,000
35,000,000
105,000,000
105,000,000
35,000,000
140,000,000
Bank loans
71,972,222
34,539,683
106,511,905
91,511,905
17,575,396
109,087,301
Charges with bond issuances
(2,614,750)
-
(2,614,750)
(3,480,083)
-
(3,480,083)
Cash pooling Grupo Navigator
-
268,133,200
268,133,200
-
297,339,235
297,339,235
Debt securities and bank debt
536,857,472
360,172,883
897,030,355
613,031,822
372,414,631
985,446,453
Average interest rate, considering
charges for annual fees and hedging
operations
5.0%
2.7%
At the end of June 2022, Navigator issued a Euro 150 million bond loan maturing in 2028, under the Sustainability-Linked Bonds
Framework, having simultaneously repaid early a loan of the same amount valid until 2023.
This operation contributed to extending the average life of the Group's debt, as well as reducing the Company's financing cost, in
addition to having conditions adjusted to the fulfilment of sustainability commitments. The loan conditions are indexed to three
ESG indicators already included in the Company's Sustainability Agenda and, in turn, aligned with the Sustainable Development
Goals of the United Nations.
In December 2023, Navigator signed a new long-term loan agreement with the European Investment Bank (EIB) for Euro 115
million, maturing in 12 years. This amount will be received in up to 3 instalments within 18 months of signing the contract. The
loan will support the project to build and operate the high-efficiency recovery boiler at the Setúbal Industrial Complex, a key step
in the decarbonisation roadmap. This green loan is part of the REPowerEU Plan, which aims to increase financing for green energy
and support the autonomy and competitiveness of the European Union.
The maturity analysis of interest-bearing liabilities is presented in the Note 8.1.3 - Liquidity risk.
2023 Annual Report • Separate Financial Statements 535
Interest-bearing liabilities – details
31-12-2023
Amounts in Euro
Amount
Outstanding
amount
Maturity
Interest rate
Current
Non-current
Bond loans
Navigator 2022-2028 ESG
150,000,000
150,000,000
June 2028
Variable rate indexed to Euribor, with
fixed rate swap
-
150,000,000
Navigator 2019-2026
50,000,000
50,000,000
January 2026
Fixed rate
-
50,000,000
Navigator 2019-2025
30,000,000
30,000,000
March 2025
Variable rate indexed to Euribor, with
fixed rate swap
20,000,000
10,000,000
Navigator 2021-2026
15,000,000
15,000,000
April 2026
Variable rate indexed to Euribor
2,500,000
12,500,000
Navigator 2020-2026
75,000,000
75,000,000
December 2026
Variable rate indexed to Euribor, with
fixed rate swap
-
75,000,000
Navigator 2021-2026 ESG
100,000,000
100,000,000
August 2026
Variable rate indexed to Euribor, with
fixed rate swap
-
100,000,000
Fees
-
(2,614,750)
-
(2,614,750)
European Investment Bank (EIB)
EIB Loan - Energy
10,625,000
7,083,333
December 2024
Variable rate indexed to Euribor
7,083,333
-
EIB Loan - Cacia
13,888,889
12,500,000
May 2028
Fixed rate
2,777,778
9,722,222
EIB Loan - Figueira
31,428,572
31,428,572
February 2029
Fixed rate
5,714,286
25,714,286
EIB Loan - Biomass Boiler
27,500,000
27,500,000
March 2031
Fixed rate
1,964,286
25,535,714
EIB Loan
115,000,000
-
up to 12 years after
disbursement
Rate indexed to the cost of EIB funds on
disbursement
-
-
Commercial Paper Programme
Commercial Paper Programme 175M
105,000,000
105,000,000
February 2026
Fixed rate
35,000,000
70,000,000
Commercial Paper Programme 65M ESG
42,250,000
-
February 2026
Variable rate indexed to Euribor
-
-
Commercial Paper Programme 75M
75,000,000
-
January 2026
Variable rate indexed to Euribor
-
-
Commercial Paper Programme 50M
50,000,000
-
December 2025
Variable rate indexed to Euribor
-
-
Loans
Long-term investment
15,000,000
13,000,000
March 2026
Variable rate indexed to Euribor
2,000,000
11,000,000
Other
3,648,804
-
-
-
Bank credit facilities
Short-term facility 20M
20,450,714
15,000,000
15,000,000
-
Cash pooling
Linha de Cash Pooling Grupo Navigator
268,133,200
268,133,200
-
268,133,200
-
897,030,355
360,172,883
536,857,472
31-12-2022
Amounts in Euro
Amount
Outstanding
amount
Maturity
Interest rate
Current
Non-current
Bond loans
Navigator 2022-2028 ESG
150,000,000
150,000,000
June 2028
Variable rate indexed to Euribor, with
fixed rate swap
-
150,000,000
Navigator 2019-2026
50,000,000
50,000,000
January 2026
Fixed rate
-
50,000,000
Navigator 2019-2025
50,000,000
50,000,000
March 2025
Variable rate indexed to Euribor, with
fixed rate swap
20,000,000
30,000,000
Navigator 2021-2026
17,500,000
17,500,000
April 2026
Variable rate indexed to Euribor
2,500,000
15,000,000
Navigator 2020-2026
75,000,000
75,000,000
December 2026
Variable rate indexed to Euribor, with
fixed rate swap
-
75,000,000
Navigator 2021-2026
100,000,000
100,000,000
August 2026
Variable rate indexed to Euribor, with
fixed rate swap
-
100,000,000
Fees
-
(3,480,083)
-
(3,480,083)
European Investment Bank (EIB)
EIB Loan - Energy
14,166,667
14,166,667
December 2024
Variable rate indexed to Euribor
7,083,333
7,083,334
EIB Loan - Cacia
15,277,778
15,277,777
May 2028
Fixed rate
2,777,777
12,500,000
EIB Loan - Figueira
37,142,857
37,142,857
February 2029
Fixed rate
5,714,286
31,428,571
EIB Loan - Biomass Boiler
27,500,000
27,500,000
March 2031
Fixed rate
-
27,500,000
Commercial Paper Programme
Commercial Paper Programme 175M
140,000,000
140,000,000
February 2026
Fixed rate
35,000,000
105,000,000
Commercial Paper Programme 65M
65,000,000
-
February 2026
Variable rate indexed to Euribor
-
-
Commercial Paper Programme 75M
75,000,000
-
January 2026
Variable rate indexed to Euribor
-
-
Commercial Paper Programme 50M
50,000,000
-
December 2025
Variable rate indexed to Euribor
-
-
Loans
Long-term investment
15,000,000
15,000,000
March 2026
Variable rate indexed to Euribor
2,000,000
13,000,000
Bank credit facilities
Short-term facility 20M
20,450,714
-
-
-
Cash pooling
Linha de Cash Pooling Grupo Navigator
297,339,235
297,339,235
-
297,339,235
-
985,446,453
372,414,631
613,031,823
2023 Annual Report • Separate Financial Statements 536
As at 31 December 2023, the average cost of debt, considering interest rate, the annual fees and hedging operations, was 5.0%
(31 December 2022: 2.7%).
As at 31 December 2023, the Company had contracted Commercial Paper Programmes, contracted and undisbursed Long-term
financing, as well as available and undrawn credit facilities of Euro 287,700,714 (31 December 2022: 210,450,714).
Financial Covenants in force
Ratio
Definition
Loans
Limit
Interest coverage
EBITDA 12M / Annual net interest
Bank
>= 4.5 - 5.5
Indebtedness
Interest-bearing debt / EBITDA 12M
Bank
<= 4.5
Net Debt / EBITDA
(Interest-bearing debt - Cash) / EBITDA 12M
Bank
Commercial Paper
Bonds
<= 4.0
<= 4.0 - 5.0
<= 4.0
Considering the contracted limits, in 2023 and 2022, the Company is in compliance with the covenants negotiated. As at 31
December 2023 and 31 December 2022, the company presents a minimum safety margin above 80% on the fulfilment of its
covenants.
Accounting policies
Interest-bearing liabilities includes Bonds, Commercial Paper, bank loans and other financing.
Initial measurement
At fair value, net of transaction costs incurred.
Subsequent measurement
At amortised cost, using the effective interest rate method.
The difference between the repayment amount and the initial measurement amount is recognised in the Income statement over
the debt period under “Interest expenses on interest-bearing liabilities” in Note 5.10 – Net financial results.
Fair value
The book value of short-term interest-bearing liabilities or loans contracted at variable interest rates are close to their fair value.
The fair value of interest-bearing liabilities that are remunerated at a fixed rate is disclosed in Note 8.3 – Financial assets and
liabilities.
Disclosure
As a current liability, except when the Company has an unconditional right to defer the settlement of the liability for at least 12
months after the reporting date.
2023 Annual Report • Separate Financial Statements 537
Estimates and judgements
Commercial paper
The Company has several commercial paper programs negotiated, of agreements with which it is frequent to carry
out emissions with contractual maturity of less than one year but with revolving nature. Where the Company
expects to extend these loans (roll over), it classifies them as non-current liabilities.
5.7. Lease liabilities
Lease liabilities– nature
31-12-2023
31-12-2022
Amounts in Euro
Non-current
Current
Total
Non-current
Current
Total
Buildings
1,371,022
540,140
1,911,162
1,866,759
511,666
2,378,425
Vehicles
-
-
-
-
3,545
3,545
1,371,022
540,140
1,911,162
1,866,759
515,211
2,381,970
Lease liabilities – movements
Amounts in Euro
31-12-2023
31-12-2022
Balance as at 1 January
2,381,970
2,883,977
Contract amortisation
(589,098)
(591,251)
Interest expense
64,546
78,661
Other changes
53,744
10,583
Total changes in related liabilities
(470,808)
(502,007)
Balance as at 31 December
1,911,162
2,381,970
Lease liabilities – future liabilities
Amounts in Euro
31-12-2023
31-12-2022
Less than 1 year
491,279
451,843
1 to 2 years
524,289
479,584
2 to 3 years
558,307
511,808
3 to 4 years
239,558
545,016
4 to 5 years
-
234,948
More than 5 years
-
-
1,813,433
2,223,199
Interest on liabilities
97,729
158,771
Present value of liabilities
1,911,162
2,381,970
2023 Annual Report • Separate Financial Statements 538
Accounting policies
At the start date of the lease, the Company recognises lease liabilities measured at the present value of future
lease payments, which include fixed payments less lease incentives, variable lease payments, and amounts
expected to be paid as residual value. Lease payments also include the price of exercise of renewal options
reasonably certain to be exercised by the Company or lease termination penalty payments if the lease term reflects the
Company's option to terminate the agreement.
In calculating the present value of future lease payments, the Company uses an incremental financing rate if the implied interest
rate on the lease transaction is not easily determinable.
Subsequently, the value of the lease liabilities is increased by the interest amount (Note 5.10 - Net financial results) and
decreased by the lease payments (rents).
5.8. Cash and cash equivalents
Amounts in Euro
31-12-2023
31-12-2022
Cash
3,050
5,540
Short-term bank deposits
9,661,172
189,407,443
Other short-term investments
135,000,000
146,997,320
Cash pooling (Note 10.2)
165,486,549
54,229,858
Cash and cash equivalents in the statement of financial position
310,150,771
390,640,161
Bank overdrafts - cash pooling (Notes 5.6 and 10.2)
(268,133,200)
(297,339,235)
Cash and cash equivalents in the statement of cash flows
42,017,571
93,300,926
In 2023 and 2022, Other short-terms investments corresponds to amounts invested by Navigator in a portfolio of short-term,
highly liquid deposits and issuers with adequate ratings.
As at 31 December 2023 and 31 December 2022, there are no significant balances of cash and cash equivalents that are subject
to restrictions on use by the Company.
Accounting policies
Cash and cash equivalents include cash, bank accounts and other short-term investments with an initial maturity
of up to 3 months, which can be mobilised immediately without any significant risk in value fluctuations.
For cash flow statement purposes, this caption will also include, when applicable, bank overdrafts, which are presented in the
Statement of financial position as a current liability, under the caption Interest-bearing liabilities (Note 5.6).
2023 Annual Report • Separate Financial Statements 539
5.9. Cash flows from financing activities
Movements in liabilities for financing activities
Amounts in Euro
2023
2022
Balance as at 1 January
985,446,453
933,165,633
Payment of interest-bearing liabilities
(75,075,396)
(545,218,254)
Receipts of interest-bearing liabilities
15,000,000
430,000,000
Cash pooling
(29,206,035)
167,563,736
Changes in borrowing costs
865,333
(64,662)
Changes in interest-bearing debt
(88,416,098)
52,280,820
Gross interest-bearing debt
897,030,355
985,446,453
5.10. Net financial results
Amounts in Euro
2023
2022
Interest paid on debt securities and bank debt
(21,303,488)
(9,418,150)
Interest paid on other interest-bearing liabilities
(31,272,805)
(11,366,018)
Commissions on loans and expenses with the opening of credit facilities
(2,219,631)
(4,370,449)
Interest paid using the effective interest method
(54,795,924)
(25,154,617)
Interest paid on lease liabilities
(64,546)
(78,661)
Financial expenses related to the Group's capital structure
(54,860,470)
(25,233,278)
Unfavourable exchange rate differences
(1,515,057)
-
Gains / (Losses) on financial instruments - interest-rate hedging (Note 8.2)
-
(1,504,772)
Gains / (Losses) on financial instruments - trading (Note 8.2)
(960,636)
(4,289,597)
Losses on compensatory interest
(671,591)
-
Other expenses and financial losses
(656,504)
(2,177,098)
Financial expenses and losses
(58,664,258)
(33,204,745)
Interest received from loans granted
18,276,509
8,404,238
Favourable exchange rate differences
-
6,875,033
Gains on financial instruments - hedging (Note 8.2)
9,722,523
-
Gains on compensatory interest
86,567
341,349
Other income and financial gains
8,331,326
6,474,957
Financial income and gains
36,416,925
22,095,577
Financial profit/(loss)
(22,247,333)
(11,109,168)
Accounting policies
The Company classifies as “Financial income” the income and gains resulting from treasury management activities
such as: i) interest obtained from the application of cash surplus; and ii) changes in the fair value in derivative
financial instruments negotiated to hedge interest rate and exchange rate risk on loans, regardless of the formal
designation of hedge.
2023 Annual Report • Separate Financial Statements 540
6. Income tax
6.1. Income tax for the period
6.1.1. Income tax recognised in the income statement
Amounts in Euro
2023
2022
Current tax
(17,607,069)
(9,680,009)
Change in uncertain tax positions in the period
(1,690,823)
3,906,564
Deferred tax (Note 6.2)
(3,127,027)
2,028,010
(22,424,919)
(3,745,435)
Nominal tax rate
In the periods presented, the Company considers a nominal tax rate in Portugal of 27.5%, resulting from the tax legislation as
follows:
2023
2022
Portugal
Nominal income tax rate
21.0%
21.0%
Municipal surcharge
1.5%
1.5%
22.5%
22.5%
State surcharge - on the share of taxable profits between Euro 1,500,000 and Euro 7,500,000
3.0%
3.0%
State surcharge - on the share of taxable profits between Euro 7,500,000 and Euro 35,000,000
5.0%
5.0%
State surcharge - on the share of taxable profits above Euro 35,000,000
9.0%
9.0%
Reconciliation of the effective income tax rate for the period
Amounts in Euro
2023
2022
Profit before income tax
297,348,739
396,325,899
Expected tax at nominal rate (21%)
62,443,235
83,228,439
Municipal surcharge (2023: 0.31%; 2022: 0.13%)
910,583
526,084
State surcharge (2023: 1.30%; 2022: 0.39%)
3,868,496
1,561,503
Income tax resulting from the applicable tax rate
67,222,314
85,316,026
Nominal tax rate for the period
22.61%)
21.53%)
Differences (a)
2,701,389
(4,540,176)
Effect of application of equity method
(47,192,699)
(73,487,565)
(Excess)/ Insufficiency of income tax estimate
(958,103)
(3,906,564)
Autonomous taxation
652,018
363,714
22,424,919
3,745,435
Effective tax rate
7.54%)
0.95%)
2023 Annual Report • Separate Financial Statements 541
(a) This amount concerns mainly:
2023
2022
Taxable provisions and impairment
14,622,035
3,540,136
Tax benefits
(8,103,954)
(331,996)
Employee benefits
32,687
21,108
Liquidation of subsidiaries
-
(14,741,302)
Other
4,042,916
(6,292,558)
10,593,684
(17,804,612)
Tax effect (25.5%)
2,701,389
(4,540,176)
6.1.2. Tax recognised in the statement of financial position
Amounts in Euro
31-12-2023
31-12-2022
Assets
Amounts pending repayment (tax proceedings decided in favour of the Company)
17,510,098
15,341,107
17,510,098
15,341,107
Liabilities
Corporate Income Tax - IRC
4,081,875
96,139,000
Additional tax liabilities (IRC)
17,073,691
11,494,069
21,155,566
107,633,069
Detail of Corporate Income Tax - IRC (net)
Amounts in Euro
31-12-2023
31-12-2022
Income tax for the period
(17,607,069)
(9,680,009)
Payments on account, special and additional payments on account
71,548,624
37,184,040
Withholding tax recoverable
1,626,501
36,453
Corporate Income Tax of companies included in the RETGS
(59,649,931)
(123,679,484)
(4,081,875)
(96,139,000)
Amounts pending repayment
Amounts in Euro
31-12-2023
31-12-2022
2005 Corporate Income Tax (RETGS) - Proceeding 1259/ 09.BESNT
13,886,728
13,886,728
RFAI 2010 to 2012 - compensatory interest
494,856
1,076,611
2016 Corporate Income Tax - Proceeding CAAD 7/2022
-
272,697
2020 Corporate Income Tax (RETGS)
-
62,867
2018 Corporate Income Tax (RETGS) - Proceeding CAAD 103/2023
1,749,389
-
2017 Corporate Income Tax - Proceeding CAAD 756/2022
1,379,125
-
Other
-
42,204
17,510,098
15,341,107
2023 Annual Report • Separate Financial Statements 542
The movements in the period are detailed as follows:
Amounts in Euro
2023
2022
Balance at the beginning of the period
15,341,107
1,118,815
Increases
3,128,514
14,222,292
Charge-off
(959,523)
-
Reversals
-
-
17,510,098
15,341,107
Uncertain tax positions - liabilities
Amounts in Euro
2023
2022
Balance at the beginning of the period
11,494,069
11,741,764
Increases
7,428,212
5,836,617
Charge-off
(198,590)
(3,599,451)
Reversals
(1,650,000)
(2,484,861)
Changes in the period
5,579,622
(247,695)
17,073,691
11,494,069
Taxes paid in litigation
As at 31 December 2023 and 31 December 2022, the additional tax assessments that are already paid and contested, not
recognised in assets, are summarised as follows:
Amounts in Euro
31-12-2023
31-12-2022
Aggregate Corporate Income Tax 2005 - Proceeding no. 88/13.4BEALM
10,394,386
10,394,386
Aggregate Corporate Income Tax 2006 - Proceeding no. 909/11.6BEALM
8,150,146
8,150,146
Aggregate Corporate Income Tax 2018 - Proceedings no. 103/2023 and no. 648/23.5BEALM
11,138,180
8,014,795
State Surcharge 2015 II - Proceeding no. 453/23.9BEALM
6,970,541
-
State Surcharge 2016 - Proceeding no. 457/21.6BEALM
3,761,397
3,761,397
State Surcharge 2017 - Proceeding no. 456/21.8BEALM
8,462,724
8,462,724
State Surcharge 2018 - Proceeding no. 707/21.9 BEALM
12,223,705
12,223,705
State Surcharge 2019 - Proceeding no. 557/23.8BEALM
2,466,974
-
State Surcharge 2020 - Proceeding no. 26/24.9BEALM
5,183,000
-
CDTJI IRC 2016 and 2017 - Proceeding no. 7/2022 and no. 756/2022-T
-
1,522,660
68,751,053
52,529,813
Accounting policies
Current income tax is calculated based on net profit, adjusted in conformity with tax legislation in force at the
Statement of financial position date.
Taxation group
In Portugal, the Navigator Group is subject to the special tax regime for groups of companies (RETGS), comprising companies in
which the shareholding is equal to or more than 75% and which meet the conditions laid down in articles 69 and following of the
Corporate Income Tax Code (IRC Code).
2023 Annual Report • Separate Financial Statements 543
These companies included in the RETGS calculate income taxes as if they were taxed independently. Liabilities are recognised as
due to the controlling company of the tax business Group, currently The Navigator Company, S.A. which is responsible for the
Group’s overall assessment and payment of the corporate income tax. Where there are gains on the use of this regime, these are
recorded as income in the controlling company’s financial statements.
The amounts the Company has receivable from or payable to other companies in the tax business group in respect of their
liabilities are presented under Receivables and Payables.
Estimates and judgements
The Company recognises liabilities for additional tax assessments that may result from reviews by the tax
authorities. When the final result of these situations is different from the amounts initially recorded, the
differences will have an impact on income tax in the period in which they are calculated.
In Portugal, annual income statements are subject to review and possible adjustment by the tax authorities for a period of 4
years. However, if tax losses are presented, they may be subject to review by the tax authorities for a period of 6 years.
The Board of Directors considers that any corrections to those declarations as a result of reviews/inspections by the Portuguese
Tax Authorities will not have a significant impact in the financial statements as at 31 December 2023, although the periods up to
and including 2018 have already been reviewed.
Uncertain tax positions
The amount of assets and liabilities recorded for tax proceedings arises from an assessment made by the Company, as at the date
of the Statement of Financial Position, regarding potential differences of understanding with the Portuguese Tax Authorities,
considering the developments in tax matters.
The Company, in relation to the measurement of uncertain tax positions, considers the provisions of IFRIC 23 - “Uncertainty over
Income Tax Treatments”, namely the measurement of risks and uncertainties in the definition of the best estimate of the expense
required to settle the obligation, by weighing all the possible results that are controlled by them and their associated probabilities.
Pillar Two Model Rules - OECD
The Navigator Group is subject to the OECD Pillar Two model rules from 1 January 2024. It has applied the exception to the
recognition and disclosure of information on deferred tax assets and liabilities related to Pillar Two income taxes, as provided for in
the amendments to IAS 12.
As at the date of this report, the Group is currently assessing the impact of this change. However, based on the current
understanding of the interpretation of the new rules, no significant impacts are expected.
2023 Annual Report • Separate Financial Statements 544
6.2. Deferred taxes
Movements in deferred taxes
As at 1
January
2023
Merger
effect Soc.
Vinhos
Income Statement
Equity
As at 31
December
2023
Amounts in Euro
Increases
Decreases
Temporary differences originating deferred tax assets
Taxed provisions
410,869
-
2,569,725
(410,869)
-
2,569,725
Adjustments to investments in subsidiaries
25,316,119
-
1,561,458
(15,127,333)
-
11,750,244
25,726,988
-
4,131,183
(15,538,202)
-
14,319,969
Temporary differences originating deferred tax liabilities
Adjustments to investments in subsidiaries
(177,644)
-
-
18,629
-
(159,015)
Financial instruments
(47,174,485)
-
-
-
29,102,154
(18,072,331)
Pensions and other post-employment benefits
-
(17,386)
-
17,386
-
-
(47,352,129)
(17,386)
-
36,015
29,102,154
(18,231,346)
Deferred tax assets
7,074,922
-
1,136,075
(4,273,006)
-
3,937,992
Deferred tax liabilities
(13,021,836)
(4,781)
-
9,904
8,003,092
(5,013,621)
As at 1
January 2022
Income Statement
Equity
As at 31
December
2022
Amounts in Euro
Increases
Decreases
Temporary differences originating deferred tax assets
Taxed provisions
-
410,869
-
-
410,869
Adjustments to investments in subsidiaries
18,752,796
9,366,282
(2,802,959)
-
25,316,119
Financial instruments
7,448,830
-
-
(7,448,830)
-
Conventional capital remuneration
140,000
-
(140,000)
-
-
26,341,626
9,777,151
(2,942,959)
(7,448,830)
25,726,988
Temporary differences originating deferred tax liabilities
Adjustments to investments in subsidiaries
(718,030)
802,383
(261,997)
-
(177,644)
Financial instruments
-
-
-
(47,174,485)
(47,174,485)
(718,030)
802,383
(261,997)
(47,174,485)
(47,352,129)
Deferred tax assets
7,243,947
2,688,717
(809,314)
(2,048,428)
7,074,922
Deferred tax liabilities
(197,458)
220,655
(72,049)
(12,972,983)
(13,021,836)
In the measurement of the deferred taxes as at 31 December 2023 and 31 December 2022, the rate of 27.50% was used.
2023 Annual Report • Separate Financial Statements 545
Accounting policies
Deferred tax is calculated based on the liability of the Statement of financial position on the temporary differences
between the book values of the assets and liabilities and their respective tax base. To determine the deferred tax,
the tax rate expected to be in force in the period in which the temporary differences will be reversed is used.
Deferred tax assets are recognised whenever there is a reasonable likelihood that future taxable profits will be generated against
which they can be offset. Deferred tax assets are revised periodically and decreased, whenever it is likely that tax losses will not
be used.
Deferred taxes are recorded as an income or expense for the year, except where they result from amounts recorded directly
under equity, situation in which deferred tax is also recorded under the same caption. Tax benefits attributed to the Company
regarding its investment projects are recognised through the income statement as there is sufficient taxable income to allow its
use.
2023 Annual Report • Separate Financial Statements 546
7. Payroll
7.1. Payroll costs
Amounts in Euro
2023
2022
Remuneration of Corporate Bodies - fixed (Note 7.3)
1,157,161
1,355,315
Remuneration of Corporate Bodies - variable
1,319,093
3,968,843
Employee remuneration
3,479,121
3,455,070
Social Security contributions
957,547
1,017,117
Post-employment benefits (Note 7.2.2)
127,261
108,938
Other payroll costs
146,200
3,616,214
Payroll costs
7,186,383
13,521,497
In 2023, there was an excess estimate of the Corporate Bodies' performance bonus for 2022. The excess is mainly due to a
different allocation by company compared to the estimate and the timing of its settlement.
Number of employees at the end of the period
As at 31 December 2023 and 31 December 2022, the number of Employees under contractual employment with the Company
was 331 and 379, respectively, of which 318 were employed by other Group companies (31 December 2022: 347). The company
employed—via multiple employment contracts—36 employees (31 December 2022: 38).
Accounting policies
Short-term employee benefits
Acquired rights - holidays and holiday allowance
In accordance with the collective agreement applicable to The Navigator Company, S.A., Workers are entitled to 25 working days
leave, as well as one month's holiday allowance, acquired in the year preceding that of the payment.
Bonuses
According to the current Performance Management System (Sistema de Gestão de Desempenho), employees have the right to a
bonus, based on annually defined objectives. The entitlement of this bonus is usually acquired in the year preceding its payment.
These liabilities are recorded in the year in which the Employees acquire the respective right, irrespective of the date of payment,
whilst the balance payable at the date of the Statement of financial position is shown under the caption Payables (Note 4.3).
Benefits arising from termination of employment
The benefits arising from termination of employment are recognised when the Company can no longer withdraw the offer of such
benefits or in which the Company recognises the cost of restructuring under the provisions recording. Benefits due more than 12
months after the end of the reporting period are discounted to their present value.
2023 Annual Report • Separate Financial Statements 547
7.2. Employee benefits
7.2.1. Defined benefit plan
Policy for managing the risk associated with defined benefit plans
For capital management purposes, the Company defines capital as including equity and net debt.
The Company's exposure to risk is limited to the number of existing beneficiaries and will tend to decrease, since there are
no defined benefit plans open to new employees in the Company.
The most significant risks to which the Company is exposed through defined benefit plans include:
i) Risk of change in the longevity of participants.
ii) Market rate variation risk – rate variation impacts the rate used to discount liabilities (technical interest rate) which is
based on yield curves of highly rated bonds with maturities similar to the liabilities' expiry dates and the fixed rate of
return of the assets. The Company uses yield curves in order to monitor the evolution of rates and performs sensitivity
analyses of interest rate variations with the aim of foreseeing and preventing the consequent impact on the fund's
funding level.
iii) Risk of change in the wage and pension growth rate.
iv) Return on the fund's financial assets – the Company closely monitors the evolution of the fund's assets, as well as the
evolution of the main financial market indicators, revisiting the investment policy approved for the management of the
assets whenever justifiable, and at least every three years. The investment policy is aligned with a conservative view of
asset management and defined on the basis of the responsibilities to be financed by the fund.
Net liabilities
Net liabilities reflected in the Statement of financial position and the number of beneficiaries of the defined benefit plans in force in
the Company are detailed as follows:
31-12-2023
31-12-2022
No. of
Beneficiaries
Amount
No. of
Beneficiaries
Amount
Past service liabilities
Active employees, including individual accounts
13
752,992
13
696,188
Alumni
-
-
1
391,388
Retired employees
130
12,571,121
133
12,672,980
Market value of pension funds
(13,156,177)
(13,360,257)
Total net liabilities
143
167,936
147
400,299
Historical information - last five years
Amounts in Euro
2019
2020
2021
2022
2023
Present value of liabilities
17,339,850
17,087,861
16,354,196
13,760,556
13,324,113
Fair value of assets and reserves
16,409,644
15,924,756
16,798,826
13,360,257
13,156,177
Surplus / (deficit)
(930,206)
(1,163,105)
444,631
(400,299)
(167,936)
2023 Annual Report • Separate Financial Statements 548
Evolution of defined benefit plan liabilities
2023
Opening
balance
Current
services cost
Interest
expense
Actuarial
deviations
Payments
performed
Closing
balance
Amounts in Euro
Pensions with autonomous fund
13,760,556
18,879
461,493
303,971
(1,220,785)
13,324,113
13,760,556
18,879
461,493
303,971
(1,220,785)
13,324,113
2022
Opening
balance
Current
services cost
Interest
expense
Actuarial
deviations
Payments
performed
Closing
balance
Amounts in Euro
Pensions with autonomous fund
16,354,196
26,336
197,163
(1,624,388)
(1,192,751)
13,760,556
16,354,196
26,336
197,163
(1,624,388)
(1,192,751)
13,760,556
The average expected duration of the defined benefit liabilities is 9 years (31 December 2022: 8 years).
Funds
Funds allocated to the defined benefit pension plans - evolution
Amounts in Euro
2023
2022
Opening balance
13,360,257
16,798,826
Expected income for the period
447,684
202,391
Remeasurement
552,111
(2,448,209)
Pensions paid
(1,220,785)
(1,192,751)
Merger effect Soc. Vinhos
16,910
-
Closing balance
13,156,177
13,360,257
Funds allocated to defined benefit plan - estimated contributions in the following period
The contributions planned for the next annual reporting period are, among other factors, dependent on the profitability of the
funds' assets.
2023 Annual Report • Separate Financial Statements 549
Funds allocated to defined benefit plans - composition of assets
Amounts in Euro
31-12-2023
%
31-12-2022
%
Securities listed in the market
Bonds
7,988,842
60.7%
8,215,933
61.5%
Shares
3,095,335
23.5%
3,279,544
24.5%
Public debt
1,413,678
10.7%
1,199,699
9.0%
Liquidity
230,232
1.7%
217,119
1.6%
Other short-term investments
428,090
3.3%
447,962
3.4%
13,156,177
100%)
13,360,257
100%
The assets of the pension fund do not include any assets of the Group.
7.2.2. Expenses incurred with post-employment benefit plans
2023
2022
Amounts in Euro
Current
services
cost
Net
interest
Defined
contribution -
Contributions
for the period
Impact on
net result
(Note 7.1)
Current
services
cost
Net
interest
Defined
contribution -
Contributions
for the period
Impact on net
result
(Note 7.1)
Pensions with autonomous fund
18,879
13,808
-
32,687
26,336
(5,229)
-
21,107
Defined contributions plans
-
-
94,574
94,574
-
-
87,831
87,831
18,879
13,808
94,574
127,261
26,336
-
87,831
108,938
As at 31 December 2023, the Defined Contribution plans covered 388 participants (31 December 2022: 420 participants).
Accounting policies
Post-employment benefits - defined benefit plan
The Company has assumed the commitment to make payments to their employees in the form of complementary
retirement pensions, disability, early retirement, and survivors’ pensions, having constituted defined-benefit plans.
The Company set up autonomous pension funds as a means of funding most of the liabilities. Based on the projected credit unit
method, the Company recognises the costs with the attribution of these benefits as the services are provided by the employees.
The total liability is estimated separately for each plan at least once every six months, on the date of closing of the interim and
annual accounts, by a specialised and independent entity.
The liability thus determined is presented in the Statement of financial position, less the fair value of the funds set up, under
Pensions and other post-employment benefits.
Actuarial deviations resulting from changes in the value of estimated liabilities, as a consequence of changes in the financial and
demographic assumptions used and experience gains, added to the differential between the actual return on fund assets and the
estimated share of net interest, are designated as re-measurements and recorded directly in the statement of comprehensive
income, under retained earnings.
Net interest corresponds to the application of the discount rate to the value of net liabilities (value of liabilities less the fair value of
fund assets) and is recognised in the income statement for the period under Payroll costs (Note 7.1).
2023 Annual Report • Separate Financial Statements 550
The gains and losses generated by a curtailment or settlement of a defined-benefit plan are recognised in the income statement
for the period when the curtailment or settlement occurs. A curtailment occurs when there is a material reduction in the number
of employees.
Costs for past liabilities resulting from the implementation of a new plan or increases in benefits attributed are recognised
immediately in profit or loss for the period.
Post-employment benefits - defined contribution plan
The Company assumed commitments regarding payments to a defined contribution plan in a percentage of the employees’ salary,
in order to provide retirement, disability, early retirement and survivors’ pensions.
To this end, Pension Funds have been set up to capitalise on those contributions, for which employees may still make voluntary
contributions, but for which the Company does not assume any additional contribution responsibilities or a pre-fixed return. Thus,
the contributions made are recorded as expenses of the period in which they are recognised, regardless of the time of their
settlement.
Estimates and judgements
Actuarial assumptions
31-12-2023
31-12-2022
Social Security Benefits Formula
Decree Law no 187/2007 of 10 May
Disability table
EKV 80
EKV 80
Mortality table
TV 88-90
TV 88-90
Technical interest rate
3.50%)
3.50%)
Wage growth rate
2.00%)
2.00%)
Return rate on plan assets
3.50%)
3.50%)
Pensions growth rate
2.00%)
2.00%)
2023 Annual Report • Separate Financial Statements 551
Sensitivity analysis
The Company considers the technical interest rate and the expected pension growth rate as the most significant variables in the
calculation of liabilities for defined benefit plans.
As at 31 December 2023, a downward change of 0.5 percentage points in the discount rate used (3.5%) in the calculation of
pension liabilities would result in an increase in liabilities of approximately Euro 570,146 (31 December 2022: Euro 543,485).
As at 31 December 2023, an upward change of 0.5 percentage points in the discount rate used (3.5%) in the calculation of
pension liabilities would result in a decrease in liabilities of approximately Euro 528,393 (31 December 2022: Euro 540,589).
As at 31 December 2023, a downward change of 0.5 percentage points in the pension growth rate used (2%) in the calculation of
pension liabilities would result in a decrease in liabilities of approximately Euro 462,032 (31 December 2022: Euro 489,928).
As at 31 December 2022, an upward change of 0.5 percentage points in the pension growth rate used (2%) in the calculation of
pension liabilities would result in an increase in liabilities of approximately Euro 489,876 (31 December 2022: Euro 520,239).
7.3. Remuneration of Corporate Bodies
Amounts in Euro
2023
2022
Navigator Corporate Bodies
Board of Directors
985,890
1,244,781
Supervisory Board
83,521
46,284
Environment Board
79,750
57,250
Board of the General Shareholders Meeting
8,000
7,000
1,157,161
1,355,315
Remuneration of the members of the Board of Directors
Full details of the remuneration policy for the members of Navigator's Board of Directors are described in the Company's
Corporate Governance Report.
Three of the current directors are members of pension plans of Navigator Brands, S.A., a subsidiary of the Company, as
Employees of that company, before joining management positions.
As at 31 December 2023 and 31 December 2022, regarding the members of the Board of Directors of Navigator, there were no: i)
any additional liabilities allocated to other long-term benefits, ii) employment termination benefits, iii) share-based payments and
iv) any outstanding balances.
2023 Annual Report • Separate Financial Statements 552
8. Financial instruments
8.1. Financial risk management
The Company, at the level of the Navigator Group, has a risk-management programme, which focuses its analysis on the financial
markets with a view to mitigate the potential adverse effects on its financial performance. Risk management is undertaken by the
Group's Financial Management in accordance with the policies approved by the Board of Directors and monitored by the Risks and
Control Commission.
The Company adopts a proactive approach to risk management, as a way to mitigate the potential adverse effects associated with
those risks, namely the exchange rate risk and interest rate risk.
8.1.1. Exchange rate risk
Exchange rate risk management policy
A significant part of the Company’s sales is priced in currencies other than the Euro, therefore its evolution can have a
significant impact on the cash flows obtained from the Company's future sales, with the currency with the greatest impact
being the USD. Also, sales in GBP, PLN and CHF have some weight, having sales in other currencies less expression.
Purchases of some raw materials are also made in USD, namely part of wood and long-fibre pulp imports of wood and
acquisitions of long-fibre pulp. Therefore, changes in USD may have an impact on acquisition values.
Moreover, once a sale or purchase is made in a currency other than the Euro, the Company becomes exposed to exchange
rate risk until the receipt or payment of such sale or purchase, if no hedging instruments are in place. As a result, there is a
significant number of receivables and payables, the latter with lesser expression, exposed to exchange rate risk.
The Company has foreign subsidiaries that expose it to exchange rate risk, namely Navigator North America in the United
States and Portucel Moçambique. Besides those operations, the Company does not hold materially relevant investments in
foreign operations, the net assets of which are exposed to exchange rate risk.
Use of derivative financial instruments
The Company manages exchange rate risk by using derivative financial instruments, in accordance with a policy that is
subject to periodic review and whose purpose is to limit the exchange rate risk associated with future sales and purchases,
receivables and payables, as well as other assets expressed in currencies other than the Euro.
In the periods presented, the Company holds derivatives that are hedging the exchange rate risk of future operations in
currencies other than the presentation currency.
2023 Annual Report • Separate Financial Statements 553
Exposure of financial assets and liabilities to exchange rate risk and sensitivity analysis
31 December 2023
US
dollar
Sterling
pound
Polish
zloti
Swiss
franc
Total
(Euro)
Amounts in foreign currency
Cash and cash equivalents
3,782,459
811,936
78,273
2,731
4,378,306
Receivables
120,943,141
21,697,447
14,349,866
1,572,289
139,422,401
Total financial assets
124,725,600
22,509,383
14,428,139
1,575,020
143,800,707
Payables
(6,517,284)
(48,356)
-
(70,250)
(6,029,501)
Total financial liabilities
(6,517,284)
(48,356)
-
(70,250)
(6,029,501)
Financial net position in foreign currency
118,208,316
22,461,027
14,428,139
1,504,770
137,771,206
Financial net position in Euro
106,975,852
25,845,495
3,324,839
1,625,022
137,771,207
Impact of + 10% change in all exchange rates
on profit or loss for the period
12,524,654
Impact of - 10% change in all exchange rates on
profit or loss for the period
(15,307,912)
31 December 2022
US
dollar
Sterling
pound
Polish
zloti
Swiss
franc
Total
(Euro)
Amounts in foreign currency
Cash and cash equivalents
834,228
600,459
524,784
60,783
1,632,988
Receivables
95,245,898
27,203,259
22,284,073
3,171,682
127,951,572
Total financial assets
96,080,126
27,803,718
22,808,857
3,232,465
129,584,560
Payables
(51,526)
(234,729)
-
(30,685)
(344,124)
Total financial liabilities
(51,526)
(234,729)
-
(30,685)
(344,124)
Financial net position in foreign currency
96,028,600
27,568,989
22,808,857
3,201,780
129,240,436
Financial net position in Euro
90,032,440
31,083,613
4,872,854
3,251,528
129,240,435
Impact of + 10% change in all exchange rates
on profit or loss for the period
11,749,131
Impact of - 10% change in all exchange rates on
profit or loss for the period
(14,360,048)
In this Note, the Company discloses the exposure of financial assets and liabilities to exchange rate risk, as well as the respective
sensitivity analysis. There are currencies in which the Company has carried out transactions but in which, at the balance sheet
date, it does not have relevant foreign exchange exposures, which is why the exchange rates disclosed in Note 1.4.3 are more
numerous than the currencies presented in this note.
2023 Annual Report • Separate Financial Statements 554
8.1.2. Interest rate risk
Interest rate risk management policy
A significant share of the Company’s financial liabilities cost are indexed to short-term reference interest rates,
which are reviewed more than once a year (generally every six months for medium and long-term debt). Hence,
changes in interest rates can have an impact on the Company’s income statement.
The strategy for interest rate risk management is reviewed annually by the Company, and currently the Company
maintains the majority of its debt traded at fixed rate.
Use of derivative financial instruments
When deemed appropriate by the Board, the Company uses derivative financial instruments (Note 8.2), namely
swaps, with the purpose of fixing the interest rate on loans obtained, within certain parameters, deemed
appropriate by the Company's risk management policies.
Exposure to interest rate risk
As at 31 December 2023, approximately 5% (31 December 2022: 6%) of the Company’s financial liabilities are indexed to short-
term reference interest rates, revised in periods below one year (usually 6-month rates for long-term debt), plus duly negotiated
risk spreads. Hence, changes in interest rates can impact the Company’s earnings.
Navigator has favoured the contracting of fixed rate debt and has derivative financial instruments to cover its interest rate risk,
namely interest-rate swaps, with the purpose of fixing the interest rate on the Company’s borrowings within certain limits.
As at 31 December 2023 and 31 December 2022, the detail of the financial assets and liabilities with interest rate exposure,
considering the maturity or the next interest-fixing date is as follows:
Amounts in Euro
Up to 1 month
1-3 months
3-12 months
1-5 years
More than 5 years
Total
31 December 2023
Assets
Current
Cash and cash equivalents
310,150,771
-
-
-
-
310,150,771
Total financial assets
310,150,771
-
-
-
-
310,150,771
Liabilities
Non-current
Interest-bearing liabilities
-
-
-
492,801,587
123,710,317
616,511,905
Current
-
Interest-bearing liabilities
268,133,200
49,857,143
25,218,254
-
-
343,208,597
Total financial liabilities
268,133,200
49,857,143
25,218,254
492,801,587
123,710,317
959,720,502
Cumulative differential
42,017,571
(7,839,572)
(33,057,826)
(525,859,413)
(649,569,731)
2023 Annual Report • Separate Financial Statements 555
Amounts in Euro
Up to 1 month
1-3 months
3-12 months
1-5 years
More than 5 years
Total
31 December 2022
Assets
Current
Cash and cash equivalents
390,640,161
-
-
-
-
390,640,161
Total financial assets
390,640,161
-
-
-
-
390,640,161
Liabilities
Non-current
Interest-bearing liabilities
-
-
-
492,801,587
123,710,317
616,511,904
Current
-
Interest-bearing liabilities
297,339,235
49,857,143
25,218,254
-
-
372,414,632
Total financial liabilities
297,339,235
49,857,143
25,218,254
492,801,587
123,710,317
988,926,536
Cumulative differential
93,300,926
43,443,783
18,225,529
(474,576,058)
(598,286,375)
Estimates and judgements
Sensitivity analysis
Navigator uses the sensibility analysis technique to measure impacts on the income statement and equity of
increase or decrease on interest rates maintaining the other variables constant. This is an illustrative analysis only, since changes
in market rates rarely occur separately.
The sensitivity analysis is based on the following assumptions:
i) Changes in market interest rates affect interest income and expenses arising from variable financial instruments;
ii) Changes in market interest rates affect the fair value of derivative financial instruments as well as other financial assets or
liabilities;
iii) Changes in fair value of derivative financial instruments and other financial assets and liabilities are measured using the
discounted cash flows method, with market interest rates at year end.
A 0.50% increase in interest rates on which interest on loans are calculated would have an impact on profit before taxes, for the
period ended 31 December 2023 by approximately Euro 175,417 million (31 December 2022: Euro 233,333).
2023 Annual Report • Separate Financial Statements 556
8.1.3. Liquidity risk
Liquidity risk management policy
The Company manages the liquidity risk in two ways:
i. ensuring that its financial debt has a high medium- and long-term component with maturities appropriate to the
characteristics of the industries where it operates, and
ii. by contracting with financial institutions credit facilities available at all times for an amount that guarantees
adequate liquidity.
Available but not used credits
The Company's policy is to maintain credit facilities at adequate levels to, together with the amount of Cash and Cash
Equivalents in order to guarantee, with some comfort margin, the cash cycle expected for the next 12 months.
Contractual maturity of financial liabilities (undiscounted flows, including interest)
Amounts in Euro
Up to 1
month
1-3
months
3-12
months
1-5
years
More than 5
years
Total
31 December 2023
Liabilities
Interest-bearing liabilities
Bond loans
420,000
10,721,500
30,895,000
432,923,500
-
474,960,000
Commercial paper
-
745,500
35,745,500
71,491,000
-
107,982,000
Bank loans
15,000,000
5,189,218
16,188,037
62,679,270
12,840,786
111,897,311
Payables
Derivative financial instruments
-
-
(10,087,985)
(14,934,263)
-
(25,022,248)
Total liabilities
15,420,000
16,656,218
72,740,553
552,159,507
12,840,786
669,817,063
Of which interest (at the rates prevailing
at that date)
63,327,406
Amounts in Euro
Up to 1
month
1-3
months
3-12
months
1-5
years
More than 5
years
Total
31 December 2022
Liabilities
Interest-bearing liabilities
Bond loans
420,000
10,257,500
19,942,100
341,457,650
101,310,000
473,387,249
Commercial paper
-
35,994,000
745,500
107,733,500
-
144,472,999
Bank loans
-
5,150,218
21,558,721
100,892,855
25,150,601
152,752,396
Payables
Derivative financial instruments
-
(1,074,976)
(5,527,508)
(23,610,571)
(620,632)
(30,833,687)
Total liabilities
420,000
50,326,742
36,718,813
526,473,434
125,839,969
739,778,957
Of which interest (at the rates prevailing
at that date)
41,830,841
The table considers the debt issued and the long-term debt contracted and not disbursed that will refinance the debt maturing in
2024 (Available and undrawn credit facilities).
2023 Annual Report • Separate Financial Statements 557
The contractual maturity of the interest-bearing liabilities presupposes the fulfilment of financial covenants, as
detailed in Note 5.6 - Interest-bearing liabilities.
Available and undrawn credit facilities
Amounts in Euro
31-12-2023
31-12-2022
Undrawn credit facilities
Commercial paper (with long term underwriting)
167,250,000
190,000,000
EIB Loan
115,000,000
-
Other credit facilities
5,450,714
20,450,714
287,700,714
210,450,714
Commercial paper used (Note 5.6)
105,000,000
140,000,000
Other credit facilities used
537,091,265
551,587,302
Contracted credit facilities (nominal value)
929,791,979
902,038,016
8.1.4. Credit risk
Credit risk management policy
The Company is exposed to credit risk on balances receivable from Trade receivables and other debtors and has adopted a
policy of managing risk coverage within certain levels through credit insurance with a specialised independent company.
Most sales that are not covered by credit insurance are covered by bank guarantees and documentary credits, and any
exposure that is not covered remains within the limits previously approved by the Executive Committee.
However, the worsening of global economic conditions or adversities affecting only economies on a local scale may lead to
deterioration in the ability of the Company’s Customers to settle their liabilities, leading entities providing credit insurance to
significantly decrease the amount of credit facilities that are available to those Customers. This scenario may result in
limitations on the amounts that can be sold to some customers without directly incurring credit risk levels that are not
compatible with the risk policy in this area.
Cash equivalents
The Company adopts strict policies in approving its financial counterparties, limiting its exposure in accordance with an
individual risk analysis and within previously approved limits.
2023 Annual Report • Separate Financial Statements 558
Maximum exposure to credit risk
The Company's maximum exposure to the credit risk of financial assets corresponds to their net amount, as follows:
Amounts in Euro
31-12-2023
31-12-2022
Non-current
Receivables (Note 4.2)
27,956
6,684
Current
Receivables (Note 4.2)
795,611,182
899,000,085
Cash and cash equivalents (Note 5.8)
310,150,771
390,640,161
1,105,789,909
1,289,646,930
Ageing structure of Trade receivables balances
As at 31 December 2023 and 31 December 2022, Trade receivables showed the following ageing structure, considering the due
dates for the balances outstanding before impairment:
Amounts in Euro
31-12-2023
31-12-2022
Amounts not due
197,615,035
243,223,269
from 1 to 90 days
16,962,609
30,108,471
from 91 to 180 days
14,983
330,827
from 181 to 360 days
-
176,147
from 361 to 540 days
-
58,893
from 541 to 720 days
-
2,974
more than 721 days
-
-
203,679,470
273,900,581
Balances considered impaired
2,593,323
5,893,593
Impairment
(2,593,323)
(5,893,593)
Net balance of trade receivables (Note 4.2)
203,679,470
273,900,581
Trade receivables covered by credit insurance
172,422,513
248,861,097
Trade receivables covered by bank guarantees
1,300,000
3,061,913
Trade receivables covered by title retention agreements
7,046,082
12,511,283
Trade receivables covered by letters of credit / documentary remittances
22,910,875
9,466,288
Covered receivables
203,679,470
273,900,581
Available and undrawn credit facilities
483,461,612
493,330,233
Credit coverage facilities contracted
687,141,082
798,325,298
The amounts shown above correspond to the amounts outstanding according to the contracted due dates.
Despite some delays in the settlement of those amounts, that does not result, in accordance with the available information, in the
identification of impairment losses other than the ones considered through the respective losses. These are calculated based on
the information periodically collected on the financial behaviour of the Company’s Customers, which allow, in conjunction with the
experience obtained in the client portfolio analysis and with the history of credit defaults, in the part not attributable to the
insurance company, to define the amount of losses to be recognised in the period. The guarantees in place for a significant part of
outstanding and long-term balances, justify the fact that no impairment loss has been recorded for those balances. The rules
defined by the credit risk insurance policy applied by the Company, ensure a significant hedge of all outstanding balances.
2023 Annual Report • Separate Financial Statements 559
Movements in impairment losses in Trade receivables
Amounts in Euro
2023
2022
Accumulated impairment at beginning of the period
(5,893,593)
(1,452,954)
Changes due to:
Amounts recognised in the income statement
-
(3,268,851)
Reversal of unused amounts
3,214,133
1,283
Changes recognised in the income statement
3,214,133
(3,267,568)
Derecognition of uncollectible assets
86,137
(1,173,071)
Accumulated impairment at end of the period
(2,593,323)
(5,893,593)
Accounting policies
Impairment of debt instruments
The Company assesses, on a prospective basis, the expected credit losses associated with its financial assets measured at
amortised cost and at fair value through other comprehensive income, in accordance with IFRS 9.
On this basis, Navigator recognises expected credit losses throughout the lifetime of financial instruments that have been subject
to significant increases in credit risk since its initial recognition, assessed either individually or collectively, considering all
reasonable and sustainable information, including available prospective information.
If, at the reporting date, the credit risk associated with a financial instrument has not increased significantly since its initial
recognition, the Company measures the impairment of that financial instrument by an amount equivalent to the expected credit
losses.
IFRS 9 provides that for the calculation of these impairments, one of two models is used: the 3-step method or the use of a
matrix, the distinguishing component being the existence or not of a significant financing component. For Navigator's financial
assets, since it is not a financial institution and there are no assets that have a significant financing component, the use of a
matrix was chosen.
The model adopted for the impairment assessment in accordance with IFRS 9 is as follows:
i. Calculate the total credit sales made by the Group over the last 12 months, as well as the total amount of bad debts
relating to them;
ii. Determine the Customers’ payment profile, by setting buckets of receipt frequency;
iii. Based on I. and II. above, estimate the probability of default (i.e., the amount of bad debts calculated at I. compared to
the balance of outstanding sales in each bucket calculated at II);
iv. Adjust the percentages of future forecasts obtained in III.;
v. Apply the default percentages as calculated in IV. to the balances of Customers still outstanding at the reporting date.
Although IFRS 9 assumes 90 days as “default”, Navigator considered a period of 180 days, since the experience of real losses
before this period is low. This period is aligned with the current risk management policies of the company, namely in what regards
the credit insurance hired, and to the fact that there is no sales with significant components of funding in light of IFRS 15.
2023 Annual Report • Separate Financial Statements 560
Additionally, the company evaluated the impact of considering 180 days of “default” instead of the 90 days and the Expected
Credit Loss would not change significantly.
In the event of an accident in the credit insurance company, the model considers the limit paid, by Navigator, of 10% for national
Customers and 5% for international Customers.
In addition, the Company recognises impairment on a case-by-case basis, based on specific balances and specific past events,
considering the historical information of the counterparties, their risk profile and other observable data in order to assess whether
there are objective indicators of impairment for these financial assets. The Company uses the write-off procedure only when the
credit is considered to be definitely uncollectible by a court decision.
8.2. Derivative financial instruments
Movements in derivative financial instruments
2023
2022
Amounts in Euro
Trading
derivatives
Hedging
derivatives
Net total
Trading
derivatives
Hedging
derivatives
Net total
Balance at the beginning of the period
(3,106,233)
46,938,143
43,831,910
(1,728,458)
(4,771,149)
(6,499,607)
New contracts / settlements
(1,999)
(9,722,523)
(9,724,522)
2,911,822
(1,409,252)
1,502,569
Change in fair value through profit or loss (Note 5.10)
(960,636)
9,722,523
8,761,887
(4,289,597)
(1,504,772)
(5,794,369)
Change in fair value through other comprehensive
income (Note 5.5)
-
(29,102,154)
(29,102,154)
-
54,623,316
54,623,316
Balance at the end of the period
(4,068,868)
17,835,989
13,767,121
(3,106,233)
46,938,143
43,831,910
Hedging derivative contracts entered into for pulp and paper sales had a positive impact of Euro 1,973,497 on sales margin. (31
December 2022: negative impact of Euro 28,405,470).
8.2.1. Detail and maturity of derivative financial instruments by nature
31 December 2023
Amounts in Euro
Notional
Currency
Maturity
Positive
(Note 4.2)
Negative
(Note 4.3)
Net
amount
Hedging
Hedging (future sales)
287,500,000
USD
2024
1,348,010
(608,037)
739,973
Interest rate swaps - Bonds
355,000,000
EUR
2028
17,064,360
-
17,064,360
BHKP pulp
7,092,000
USD
2024
31,655
-
31,655
18,444,025
(608,036)
17,835,989
Trading
Foreign exchange forwards (future sales)
(46,000,000)
USD
2024
1,014,913
(4,987,262)
(3,972,349)
Foreign exchange forwards (future sales)
(6,099,807)
GBP
2024
-
(96,519)
(96,519)
1,014,913
(5,083,781)
(4,068,868)
19,458,938
(5,691,817)
13,767,121
2023 Annual Report • Separate Financial Statements 561
31 December 2022
Amounts in Euro
Notional
Currency
Maturity
Positive
(Note 4.2)
Negative
(Note 4.3)
Net
amount
Hedging
Hedging (future sales)
345,000,000
USD
2023
6,011,256
-
6,011,256
Hedging (future sales)
144,000,000
GBP
2023
1,294,665
-
1,294,665
Interest rate swaps - Bonds
375,000,000
EUR
2028
31,949,130
-
31,949,130
BHKP pulp
50,521,199
EUR
2023
7,683,092
-
7,683,092
46,938,143
-
46,938,143
Trading
Foreign exchange forwards (future sales)
76,977,456
USD
2023
1,325,016
(4,679,289)
(3,354,273)
Foreign exchange forwards (future sales)
18,800,000
GBP
2023
251,284
-
251,284
Foreign exchange forwards (future sales)
1,750,000
CHF
2023
-
(3,244)
(3,244)
1,576,300
(4,682,533)
(3,106,233)
48,514,443
(4,682,533)
43,831,910
Cash flow hedge | Exchange rate risk EUR/USD
During the last 6 months of 2023, the Group contracted derivative financial instruments by acquiring USD 287,500,000 in Zero
Cost Collar, thus guaranteeing total coverage of the estimated value of exposure for 2024.
Interest rate hedge
During the first quarter of 2022, the Group contracted two swaps in the amount of Euro 75,000,000 each, to fix the interest rate
associated with the Navigator 2022-2028 bond loan in the amount of Euro 150,000,000, starting in June 2022.
Energy Hedging
In view of the Group's exposure to energy prices, during the last quarter of 2022, swaps were contracted to set the price of
energy sold for a volume of approximately 253,716 MWh, which ended on 31 December 2023.
Commodities Hedging – BHKP
During the second quarter of 2023, the Group entered into a swap valued at USD 7,092,000 to fix the price of short fibre pulp
(BHKP) starting in January 2024.
Estimates and judgements
Fair value of derivative financial instruments
Whenever possible, the fair value of derivatives is estimated on the basis of quoted instruments. In the absence of market prices,
the fair value of derivatives is estimated through the discounted cash-flow method and option valuation models, in accordance
with prevailing market assumptions.
2023 Annual Report • Separate Financial Statements 562
Accounting policies
The fair value of derivative financial instruments is included under Payables (Note 4.3), when negative, and under
Receivables (Note 4.2), when positive.
In accordance with IFRS 9 - Financial Instruments, the Group has opted to continue applying the hedge accounting requirements
of IAS 39 - Financial Instruments, until there is greater visibility on the Dynamic Risk Management (macro hedging) project
currently in progress.
Whenever expectations of changes in interest or exchange rates so justify, the Group hedges these risks through derivative
financial instruments, such as interest rate swaps (IRS), interest rate and foreign exchange collars, forwards, etc.
Trading derivative financial instruments
Although the derivatives contracted by the Company represent effective economic hedges of risks, not all of them qualify as
hedging instruments in accounting terms to satisfy the applicable rules and requirements. Instruments that do not qualify as
hedging instruments are recorded in the Separate statement of financial position at their fair value and changes in fair value are
recognised in Net financial results (Note 5.10), when related to financing operations, or in External services and supplies (Note
2.3) or Revenue (Note 2.1), when referring to hedging of sales receivable flows in a currency other than the presentation
currency.
Hedging derivative financial instruments
Derivative financial instruments used for hedging purposes may be recognised as hedging instruments provided that they comply,
cumulatively, with the conditions set out in IAS 39.
Cash flow hedging (interest rate, exchange rate and commodity risk - BHKP)
In order to manage its exposure to interest rate risk and exchange rate risk, the Company enters into cash flow hedges.
Those transactions are recorded in the Interim consolidated statement of financial position at their fair value, if considered
effective hedges. The effective portion of changes in the fair value of derivatives that are designated and qualify as cash flow
hedges is recognised in other comprehensive income. The gain or loss relating to the ineffective portion is recognised immediately
in the income statement.
Accumulated amounts in equity are reclassified to profit or loss in the periods when the hedged item affects the Income statement
(for example, when the forecast sale that is hedged takes place). The gain or loss relating to the effective portion of interest rate
swaps hedging variable rate borrowings is recognised in the income statement under Net financial results (Note 5.10). However,
when the forecast transaction that is hedged results in the recognition of a non-financial asset (for example, inventory or
property, plant and equipment), the gains and losses previously deferred in equity are transferred from equity and included in the
initial measurement of the cost of the asset.
When a hedging instrument expires or is sold, or when a hedge no longer meets the criteria for hedge accounting, any cumulative
gain or loss existing in equity is recycled to the income statement, unless the hedged item is a forecast transaction, in which case
any cumulative gain or loss existing in equity at that time remains in equity and is recognised when the forecast transaction is
ultimately recognised in the Income statement.
2023 Annual Report • Separate Financial Statements 563
Derivative financial instruments used by Navigator Group
Foreign exchange trading derivatives
The Navigator Group has a currency exposure on sales invoiced in foreign currencies, namely US dollars (USD) and pounds
sterling (GBP). As the Group’s financial statements are presented in Euro, it is exposed to an economic risk on the conversion of
these currency flows to the Euro. The Group is also required, albeit to a lesser degree, to make certain payments in those same
currencies which, for currency exposure purposes, act as a natural hedge. Thus, the hedge is aimed at safeguarding the net value
of items in the statement of financial position denominated in a currency other than the presentation currency against the
respective currency fluctuations.
The hedging instruments used in this operation are foreign exchange forward contracts covering the net exposure to currencies
other than the presentation currency, for amounts and due dates close to that exposure. The nature of the risk hedged is the
change in the book value on sales and purchases expressed in currencies other than the presentation currency. At the end of each
month, the balances of Trade receivables and Trade payables expressed in foreign currency are updated, with the gain or loss
offset against the fair value change of the forwards negotiated.
Cash flow hedge | Exchange rate risk EUR/USD and EUR/GBP
The Company makes use of derivative financial instruments in order to limit the net exchange risk associated with sales and
future purchases estimated at USD and GBP.
Cash flow hedge | Interest rate
Navigator hedges future interest payments associated with commercial paper issues by hiring an interest rate swap, which pays a
fixed rate and receives a floating rate. This instrument is designated as hedge of cash flows from the commercial paper
programme and the bond loan.
Cash flow hedge | Commodities - BHKP
Navigator uses derivative financial instruments in order to minimise the exposure risk associated with the variation of the pulp
price, indexed to PIX, in USD.
2023 Annual Report • Separate Financial Statements 564
8.3. Financial assets and liabilities
8.3.1. Categories of financial instruments of the Group
The financial instruments included in each caption of the separate statement of financial position are classified as follows:
Amounts in Euro
Note
Financial
assets at
amortised cost
Hedging
derivative
financial
instruments
Trading
derivative
financial
instruments
Non-
financial
assets
Total
31 December 2023
Non-current receivables
4.2
27,956
-
-
-
27,956
Current receivables
4.2
757,523,435
18,444,025
1,014,913
39,539,209
816,521,582
Cash and cash equivalents
5.8
310,150,771
-
-
-
310,150,771
Total assets
1,067,702,163
18,444,025
1,014,913
39,539,209
1,126,700,309
31 December 2022
Non-current receivables
4.2
6,684
-
-
-
6,684
Current receivables
4.2
808,510,259
46,938,143
1,576,300
42,981,638
900,006,340
Cash and cash equivalents
5.8
390,640,161
-
-
-
390,640,161
Total assets
1,199,157,105
46,938,143
1,576,300
42,981,638
1,290,653,186
Amounts in Euro
Note
Financial
liabilities at
amortised cost
Hedging
derivative
financial
instruments
Trading
derivative
financial
instruments
Financial
liabilities
outside the
scope of IFRS
9
Total
31 December 2023
Interest-bearing liabilities
5.6
897,030,355
-
-
-
897,030,355
Lease liabilities
5.7
-
-
-
1,911,162
1,911,162
Payables
4.3
671,975,078
608,036
5,083,781
-
677,666,895
Total liabilities
1,569,005,433
608,036
5,083,781
1,911,162
1,576,608,412
31 December 2022
Interest-bearing liabilities
5.6
985,446,453
-
-
-
985,446,453
Lease liabilities
5.7
-
-
-
2,381,970
2,381,970
Payables
4.3
1,044,204,892
-
4,682,533
-
1,048,887,425
Total liabilities
2,029,651,345
-
4,682,533
2,381,970
2,036,715,848
2023 Annual Report • Separate Financial Statements 565
8.3.2 Fair value of financial assets and liabilities
Financial assets and liabilities measured at fair value
31-12-2023
31-12-2022
Amounts in Euro
Level 1
Level 2
Level 3
Level 1
Level 2
Level 3
Financial assets at fair value through profit and loss
Hedging derivatives (Note 8.2)
-
1,014,913
-
-
1,576,300
-
Hedging financial instruments (Note 8.2)
-
18,444,025
-
-
46,938,143
-
Total assets
-
19,458,938
-
-
48,514,443
-
Financial liabilities at fair value through profit or loss
Trading derivatives
-
(5,083,781)
-
-
(4,682,533)
-
Hedging financial instruments
-
(608,036)
-
-
-
-
Total liabilities
-
(5,691,817)
-
-
(4,682,533)
-
Estimates and judgements
Fair value of fixed-interest interest-bearing liabilities
The fair value of these liabilities is calculated using the discounted cash flow method at the reporting date, using a
discount rate in accordance with the characteristics of each financing, belonging to level 2 of the fair value hierarchy of IFRS 13.
Accounting policies
The fair value of financial instruments is classified according to the fair value hierarchy of IFRS 13 - Fair Value
Measurement:
Level 1 Based on quotes from active net markets at the reporting date.
Level 2 Determined using evaluation models, the main inputs of which are observable in the market.
Level 3 Determined using evaluation models, the main inputs of which are not observable in the market.
2023 Annual Report • Separate Financial Statements 566
9. Provisions, commitments and contingencies
9.1. Provisions
Movements in provisions
Amounts in Euro
Legal
proceedings
Investments in
subsidiaries
Other provisions
Total
1 January 2022
637,984
-
18,351,848
18,989,832
Increases
194,806
-
107,837
302,643
Reversals
-
-
(1,159,685)
(1,159,685)
Impact in profit or loss for the period
194,806
-
(1,051,848)
(857,042)
Other transfers and adjustments
-
-
-
-
31 December 2022
832,790
-
17,300,000
18,132,790
Increases
10,256
-
-
10,256
Reversals
-
-
(1,800,000)
(1,800,000)
Impact in profit or loss for the period
10,256
-
(1,800,000)
(1,789,744)
Other transfers and adjustments
-
1,287
-
1,287
31 December 2023
843,046
1,287
15,500,000
16,344,333
No repayments of any nature are expected in respect of these provisions.
Legal proceedings
The balance as at 31 December 2023 is essentially comprised of labour lawsuits. The outcome of provisions for legal proceedings
depends on the labour or civil court decisions.
Investments in subsidiaries
The amount recognised as provisions for subsidiaries relates solely to the shareholding in the subsidiary Navigator Paper Southern
Africa (Note 10).
Other provisions
The amount presented includes provisions to cover risks related to events of a different nature, the resolution of which may result
in outflows of cash, in particular organisational restructuring processes, risks of contractual positions assumed in investments,
among others.
In 2023, Other provisions include Euro 15,500,000 related to the Mozambique project. Although the Memorandum of
Understanding (MoU) signed with the Mozambican Government provided for a “best effort” commitment to create the necessary
conditions to carry out the investment until last 31 December 2018, that was not possible until 31 December 2023, and both
parties continued to work towards that goal.
The Group's uncertain income tax positions are disclosed in Note 6.1 - Income Tax.
2023 Annual Report • Separate Financial Statements 567
Accounting policies
Provisions are recognised whenever the Company has a present legal or constructive obligation, as a result of past
events, in which it is probable that an outflow of resources will be required to settle the obligation and the amount
has been reliably estimated.
Provisions for future operating losses are not recognised. Provisions are reviewed on the date of the statement of financial position
and are adjusted to reflect the best estimate at that date.
Investments in subsidiaries
Provisions are recognised for the Company's liabilities for losses on investments in subsidiaries (Note 10), after the related book
value has been reduced to zero, to the extent that the Company may have incurred legal or constructive obligations or made
payments on behalf of such subsidiaries.
9.2. Commitments
Guarantees provided to third parties
Amounts in Euro
31-12-2023
31-12-2022
Guarantees provided
Navigator guarantees for EIB loans
22,083,333
37,708,333
Ocean Network Express
2,751,947
-
Simria
338,829
338,829
Agência Portuguesa Ambiente
-
83,148
Administration Fédérale de Contributions
76,585
83,274
Other
74,473
51,008
25,325,167
38,264,592
Moreover, the Company has entered into energy purchase commitments amounting to Euro 125,753,200.
2023 Annual Report • Separate Financial Statements 568
9.3. Contingent assets and liabilities
Public Debt Settlement Fund
According to Decree-Law 36/93 of 13 February, the tax debts of privatised companies relating to periods prior to the privatisation
date (25 November 2006) are the responsibility of the Public Debt Settlement Fund (FRDP). The Navigator Company submitted an
application to the FRDP on 16 April 2008, requesting the payment of the tax debts until then settled by the Tax Authorities. On 13
December 2010, the company filed a new request for payment of debts assessed by the Tax Authorities for the periods of 2006
and 2003, which was supplemented, on 13 October 2011, with the amounts already paid and uncontested relating to these same
debts, as well as the expenses directly related thereto, pursuant to the ruling dated 24 May 2011 (Case 0993A/02), which
confirmed the company's position regarding the enforceability of such expenses.
On 13 December 2017, The Navigator Company, S.A. has made an extra-judicial agreement with the Portuguese Tax Authorities,
in which was recognised the responsibility of the Public Debt Settlement Fund (PDSF) for repaying the amount of Euro 5,725,771
corresponding to the amount of Corporate Income Tax improperly paid, resulting from the alleged incorrect qualification /
consideration, by the tax administration, of the tax loss calculated as a result of the operations performed by Soporcel, S.A. in
2003, as well as to promote restitution to Navigator of the mentioned amount.
In this context, FRDP is liable for Euro 22,140,855, detailed as follows:
Amounts in Euro
Period
Amounts
requested
Decrease due to
RERD
Proceedings
decided in
favour of the
Group
Outstanding
amounts
Proceedings confirmed in court
Corporate income tax
2002
18,923
-
-
18,923
Corporate income tax (FR)
2004
3,324
-
-
3,324
Corporate income tax
2004
766,395
-
(139,023)
627,372
Expenses
314,957
-
-
314,957
1,103,599
-
(139,023)
964,576
Proceedings not confirmed in court
Corporate income tax
2005
11,754,680
(1,360,294)
-
10,394,386
Corporate income tax
2006
11,890,071
(1,108,178)
-
10,781,893
23,644,751
(2,468,472)
-
21,176,279
24,748,350
(2,468,472)
(139,023)
22,140,855
Regarding the aggregate corporate income tax proceedings of 2005 and 2006, if Courts come to a decision in favour of Navigator
Group, the Group will withdraw the request made to FRDP.
Public Debt Settlement Fund - proceeding no. 774/11.3 BEALM
Additionally, a new petition was filed in the Administrative Court of Almada on 11 October 2011, which called for the repayment of
various amounts, amounting to Euro 136,243,949. These amounts regard adjustments in the financial statements of the Group
after its privatisation that had not been considered in formulating the price of its privatisation as they were not included in the
documentation made available for consultation by the bidders.
On 24 May 2014, the Court denied the Navigator Group’s proposal to present testimony evidence, alternatively proposing written
submissions. On 30 June 2014, the Group appealed against this decision, but continuously presented written evidence. The Court
subsequently confirmed the Navigator Group’s views on this matter, both parts appointed experts and the partial expert report
2023 Annual Report • Separate Financial Statements 569
was issued on July 2017, being required either by The Navigator Company, S.A. either by the Ministério das Finanças, the
attendance of both designated experts in court hearing, in order to provide oral explanations on the expert report.
Following claims filed by Navigator on 11 September 2017 and 15 January 2019, the experts submitted redrafted Expert Reports
on 27 December 2018 and 19 March 2019, respectively.
The trial hearing sessions took place between May and June 2019, with the parties filing closing arguments in September 2019.
In January 2023, the Court, while rejecting in their entirety the defendants' pleas in law, issued a judgment against the Navigator
Group and acquitted the defendants. Following this decision, the Group appealed to the Supreme Administrative Court in February
2023.
2023 Annual Report • Separate Financial Statements 570
10. Group structure
10.1. Investments in subsidiaries
31-12-2023
31-12-2022
Denominação Social
Head Office
Equity
% held
Balance
Equity
% held
Balance
Soc. Vinhos Herdade Espirra, S.A.
(D)
Portugal
-
-
-
1,837,953
100
1,837,953
Navigator Brands, S.A.
(A)
Portugal
32,643,937
100
409,400,324
31,444,601
100
408,200,985
Navigator Pulp Aveiro, S.A.
(B)
Portugal
106,248,123
100
106,123,853
124,266,347
100
120,880,817
Enerpulp, S.A.
Portugal
74,509,637
100
74,509,637
72,975,632
100
72,975,632
Navigator Parques Industriais, S.A.
Portugal
85,415,275
100
85,415,275
127,522,607
100
127,522,607
Portucel Moçambique, S.A.
Mozambique
11,122,922
90
11,122,922
1,365,602
90
1,365,602
Navigator Pulp Setúbal, S.A.
Portugal
72,929,757
100
72,929,757
233,217,325
100
233,217,325
Navigator Pulp Figueira, S.A.
Portugal
188,359,928
100
188,359,927
208,528,502
100
208,528,502
Navigator Abastecimento de Madeira, ACE
Portugal
-
97
-
-
97
-
Navigator Forest Portugal, S.A.
Portugal
59,013,396
100
59,013,396
40,205,331
100
40,205,331
Navigator Paper Setúbal, S.A.
(B)
Portugal
420,074,069
100
415,217,443
623,646,952
100
613,841,320
Navigator Tissue Aveiro, S.A.
(B)
Portugal
135,189,631
100
134,813,112
115,180,815
100
114,837,623
Raíz - Inst.Investigação Floresta e Papel
Portugal
10,900,584
97
10,573,566
9,849,186
97
9,604,970
Navigator Tissue Ejea, S.L.
(C)
Spain
68,206,977
100
72,363,519
-
-
-
Navigator Paper Figueira, S.A.
(B)
Portugal
102,186,284
100
98,565,420
145,585,816
100
129,934,579
Pulpchem Logistics, A.C.E.
Portugal
-
50
-
-
50
-
Empremédia - Corretores de Seguros, S.A.
Portugal
5,193,421
100
5,193,421
4,855,247
100
4,855,247
Empremedia DAC
Ireland
7,828,845
100
7,828,845
5,342,757
100
5,342,757
Navigator Paper Mexico
Mexico
2,698
25
674
32,340
25
8,085
Navigator Egypt
Egypt
35,229
1
352
23,874
1
239
Navigator Green Fuels Setúbal, S.A.
Portugal
48,339
100
48,339
-
-
-
Navigator Green Fuels Figueira da Foz, S.A.
Portugal
48,339
100
48,339
-
-
-
Navigator Fiber Solutions , S.A.
Portugal
2,049
0
2
-
-
-
Navigator Paper Southern Africa
South Africa
(128,742)
1
(1,287)
-
-
-
Portucel Nigeria Limited
Nigeria
-
1
-
-
-
-
1,751,526,836
2,093,159,574
Provisions for subsidiaries
with negative equity
1,287
-
Investments in subsidiaries
1,751,528,123
2,093,159,574
(A) Includes Goodwill generated on the acquisition of the Figueira da Foz integrated pulp and paper business
(B) Balance sheet value reflects elimination of unrealised internal margins
(C) Includes goodwill generated on the acquisition of the consumer tissue business in Zaragoza, Spain
(D) In 2023, Sociedade de Vinhos da Herdade de Espirra - Produção e Comercialização de Vinhos, S.A. was merged into The Navigator
Company, S.A.
The goodwill associated with the integrated pulp and paper production activity in Figueira da Foz, in the amount of Euro 376,756,383,
and with the tissue production activity in Zaragoza, in the amount of Euro 4,156,542, is disclosed in the table above as part of the
value of the financial investment under the equity method, in accordance with the requirements of IAS 27 and IAS 28.
2023 Annual Report • Separate Financial Statements 571
Movements in the period
Movements in investments in subsidiaries - summary
Amounts in Euro
2023
2022
Opening balance
2,093,159,574
1,919,170,450
Acquisitions, incorporations and disposal of shareholdings
58,651,861
1,859,329
Mergers, demergers and liquidations
(1,838,305)
(120,477,540)
Additional capital contributions
36,300,000
7,050,000
Share of (loss)/gains from the application of the equity method
224,727,140
349,940,785
Other comprehensive income
1,013,513
28,416,539
Dividends distributed
(295,340,074)
(92,799,990)
Capital increases and decreases
(372,038,000)
-
Transfer to provisions (Note 9.1)
1,287
-
Other movements
6,891,127
-
Closing balance
1,751,528,123
2,093,159,574
In 2023, the General Shareholders Meeting approved the increase in Navigator Forest Portugal, S.A.'s equity through the payment
of additional pecuniary and gratuitous capital contributions in the amount of Euro 25,000,000.
Also for the subsidiary Portucel Moçambique, S.A., additional pecuniary and gratuitous capital contributions were made in the
amount of Euro 4,000,000, and shareholder loans were also converted into additional capital contributions in the amount of Euro
7,300,000.
2023 Annual Report • Separate Financial Statements 572
Movements in investments in subsidiaries - details
Amounts in Euro
2023
2022
Opening balance
2,093,159,574
1,919,170,450
Mergers, demergers and liquidations
Navigator Participações Holding SGPS, S.A.
-
(120,477,540)
Soc. Vinhos Herdade Espirra, S.A.
(1,838,305)
-
Mergers, demergers and liquidations
(1,838,305)
(120,477,540)
Additional capital contributions
Navigator Forest Portugal, S.A.
25,000,000
-
Portucel Moçambique, Lda.
11,300,000
7,050,000
Additional capital contributions
36,300,000
7,050,000
Acquisition, incorporation and disposal of shareholdings
Navigator Tissue Ejea, S.L.
58,551,811
-
Soc. Vinhos Herdade Espirra, S.A.
-
1,859,329
Navigator Green Fuels Setúbal, S.A.
50,000
-
Navigator Green Fuels Figueira da Foz, S.A.
50,000
-
Navigator Fiber Solutions, S.A.
50
-
Acquisition, incorporation and disposal of shareholdings
58,651,861
1,859,329
Share of (loss)/gains from the application of the equity method
Navigator Internacional Holding SGPS, S.A.
-
250,677
Soc. Vinhos Herdade Espirra, S.A.
-
(21,024)
Navigator Brands, S.A.
19,937,534
23,726,365
Navigator Pulp Aveiro, S.A.
12,990,920
25,832,155
Enerpulp, S.A.
14,586,595
23,471,317
Navigator Parques Industriais, S.A.
7,526,789
4,157,859
Portucel Moçambique, Lda.
(3,275,767)
(39,466,616)
Navigator Paper Southern Africa
(1,287)
-
Navigator Pulp Setúbal, S.A.
17,362,431
59,022,877
Navigator Pulp Figueira, S.A.
21,604,252
57,135,635
Navigator Forest Portugal, S.A.
3,053,803
14,278,823
Navigator Tissue Aveiro, S.A.
41,459,179
22,393,445
Navigator Paper Setúbal, S.A.
39,734,372
98,740,914
Raiz - Inst.Investigação Floresta e Papel
818,765
60,166
Navigator Tissue Ejea, S.L.
13,811,707
-
Navigator Paper Figueira, S.A.
29,914,903
56,920,887
Empremédia - Corretores de Seguros, S.A.
1,161,734
1,142,384
Empremedia DAC
4,034,429
2,276,468
Navigator Paper Mexico
10,217
18,397
Navigator Egypt
(66)
56
Navigator Green Fuels Setúbal, S.A.
(1,661)
-
Navigator Green Fuels Figueira da Foz, S.A.
(1,661)
-
Navigator Fiber Solutions, S.A.
(48)
-
Share of (loss)/gains from the application of the equity method
224,727,140
349,940,785
Changes in the investee's equity not recognised in the income statement
Soc. Vinhos Herdade Espirra, S.A.
352
(352)
Navigator Brands, S.A.
3,036,349
3,729,483
Navigator Forest Portugal, S.A.
1,489,984
(162,410)
Navigator Paper Setúbal, S.A.
(3,842,014)
(1,439,556)
Navigator Pulp Figueira, S.A.
9
-
Raiz - Inst.Investigação Floresta e Papel
149,831
268,489
Portucel Moçambique, S.A.
1,733,087
24,475,978
Empremédia - Corretores de Seguros, S.A.
11,704
(15,735)
2023 Annual Report • Separate Financial Statements 573
Empremedia DAC
(1,548,341)
1,572,063
Navigator Paper Mexico
(17,628)
(11,442)
Navigator Egypt
180
21
Changes in the investee's equity not recognised in the income statement
1,013,513
28,416,539
Distribution of dividends/reserves
Navigator Brands, S.A.
(21,774,546)
(6,065,810)
Navigator Pulp Aveiro, S.A.
(27,747,883)
(10,495,391)
Navigator Parques Industriais, S.A.
(6,646,121)
(6,386,346)
Navigator Forest Portugal, S.A.
(10,735,721)
-
Navigator Pulp Setúbal, S.A.
(53,600,000)
(24,921,806)
Navigator Pulp Figueira, S.A.
(41,772,835)
-
Navigator Paper Setúbal, S.A.
(30,541,422)
(20,016,922)
Navigator Tissue Aveiro, S.A.
(21,483,691)
(8,501,356)
Navigator Paper Figueira, S.A.
(67,150,000)
(15,321,642)
Empremédia - Corretores de Seguros, S.A.
(835,265)
(1,090,717)
Enerpulp, S.A.
(13,052,590)
-
Distribution of dividends/reserves
(295,340,074)
(92,799,990)
Share capital increases/(decreases)
Navigator Parques Industriais, S.A.
(42,988,000)
-
Navigator Paper Setúbal, S.A.
(205,000,000)
-
Navigator Pulp Setúbal, S.A.
(124,050,000)
-
Share capital increases/(decreases)
(372,038,000)
-
Other movements and reclassifications
6,891,127
-
Closing balance
1,751,526,836
2,093,159,574
Provisions for subsidiaries (Note 9.1)
1,287
-
Closing balance considering Provisions
1,751,528,123
2,093,159,574
Estimates and judgements
As at 31 December 2023 the amount of equity interests recognised in the separate financial statements of The
Navigator Company, S.A., by applying the equity method amounts to Euro 1,758 million (31 December 2022: Euro
2,093 million), which includes goodwill allocated to the integrated paper cash-generating unit in Figueira da Foz
and the tissue paper cash-generating unit in Zaragoza. Goodwill is not amortised and is subject to impairment tests, at least
annually, and whenever there are changes in the assumptions underlying the test performed at the date of the statement of
financial position which result in a possible loss of value. The recoverable amounts of cash-generating units have been determined
based on value-in-use calculations. These calculations require the use of estimates.
As at 31 December 2023, a possible increase of 0.5% in the discount rate used in the impairment test of Goodwill allocated to the
cash-generating unit in Figueira da Foz integrated Paper, would imply a decrease in the assessment in the amount of Euro
214,028,739 (31 December 2022: Euro 269,081,488), which is still approximately 4 times higher than the book value of this
cash-generating unit.
Accounting policies
Subsidiaries are all entities over which the Company has control, which occurs when the Company is exposed or
entitled to the variable returns resulting from its involvement with the entities and has the capacity to affect that
return through the exercise of power over the entities, regardless of the percentage they hold over equity.
The existence and the effect of potential voting rights which are currently exercisable or convertible are considered when the
Company assesses whether it has control over another entity.
2023 Annual Report • Separate Financial Statements 574
Measurement
Investments in subsidiaries are accounted under the equity method.
In accordance with the equity method, financial investments are recorded at their acquisition cost, subsequently adjusted by the
amount corresponding to the Company's share of changes in shareholders' equity (including net profit) of the subsidiaries, against
results for the period or against shareholders' equity, as applicable, and by dividends received.
The accounting policies of joint ventures are amended, when necessary, to ensure that they are applied consistently with those of
Navigator.
When the Company’s share in the subsidiary’s losses is equal to or exceeds its investment in the subsidiary, the Company ceases
to recognise additional losses, except where it has assumed liability or made payments in the subsidiary’s name, as detailed in
Note 9.1 - Provisions. If they subsequently report profits, the Company resumes recognising its share of those profits only after its
share of the profits equals the share of unrecognised losses.
2023 Annual Report • Separate Financial Statements 575
10.2. Transactions with related parties
Balances with related parties
31-12-2023
31-12-2022
Amounts in Euro
Cash - Cash
Pooling
(Note 5.8)
Receivables
(Note 4.2)
Payables
(Note 4.3)
Interest-bearing
liabilities - Cash
Pooling
(Note 5.6)
Cash - Cash
Pooling
(Note 5.8)
Receivables
(Note 4.2)
Payables
(Note 4.3)
Interest-bearing
liabilities - Cash
Pooling
(Note 5.6)
Shareholder
Semapa - Soc. de Investimento e Gestão, SGPS, S.A.
-
-
952,804
-
-
-
-
-
Subsidiaries
Portucel Moçambique, Lda.
-
7,962,778
179,039
-
-
16,074,124
179,813
-
Soc. Vinhos Herdade Espirra, S.A.
-
-
-
-
-
137,500
1,264,631
690,972
Eucaliptusland, S.A.
-
986,623
19,738,746
7,940,382
1,958,236
2,696,522
19,629,984
-
Enerpulp, S.A.
37
22,015,848
21,151
12,085,595
-
27,623,849
18,714
2,155,999
Navigator Forest Portugal, S.A.
4,189,275
177,428,142
14,311,715
4,354,853
1,056,508
223,976,223
4,161,311
-
Empremédia, S.A.
-
348,905
2,500,000
-
-
314,738
2,500,000
-
Navigator Tissue Aveiro, S.A.
1,030,176
118,950,221
11,056,819
19,828,089
9,224,157
109,574,524
12,567,088
-
Viveiros Aliança, S.A.
1,098,500
13,415
23,155
-
295,549
12,452
10,077
-
Navigator Paper Setúbal, S.A.
29,403,323
43,037,658
65,939,575
111,673,946
-
12,670,235
210,032,758
68,427,985
Navigator Paper Figueira, S.A.
23,187,277
52,052,846
98,180,797
-
-
41,300,795
50,254,735
42,374,812
Navigator Pulp Setúbal, S.A.
20,279,862
11,259,662
21,224,420
-
-
22,841,348
160,586,837
94,232,683
Navigator Tissue Ródão, S.A.
168
14,747,039
130,985,491
3,848,014
7,132,582
3,712,464
117,628,515
-
Navigator Pulp Figueira, S.A.
6,833,461
6,833,962
42,229,134
19,850,089
-
23,032,555
50,049,785
88,027,911
Raiz - Instituto de Investigação da Floresta e Papel
-
125,753
6,489,243
1,437,234
517,219
41,636
6,430,576
-
Navigator Brands, S.A.
-
28,092,201
32,366,089
38,671,413
-
7,273,557
63,612,814
366,639
Navigator Pulp Aveiro, S.A.
52,106,399
4,930,641
13,955,564
-
13,543,290
8,759,225
19,438,091
-
Navigator Parques Industriais, S.A.
-
11,589,317
609,665
19,141,996
-
4,115,708
41,076,624
170,665
Navigator Abastecimento de Madeira, ACE
27,358,071
132,356
877,541
27,723,654
20,502,318
1,044,979
15,184,766
-
Bosques do Atlantico, S.L.
-
-
28,848,149
178,975
-
252
28,848,149
514,238
PulpChem Logístics, ACE
-
-
877,377
-
-
-
3,364,800
-
Navigator North America
-
12,021
58,349,528
-
-
-
67,774,364
-
Navigator Eurasia
-
25,208
-
-
-
15,249
-
-
Navigator Afrique du Nord
-
15,584
-
-
-
9,371
-
-
Navigator United Kingdom, Ltd
-
-
17,301,073
-
-
-
16,738,877
-
Gavião - Sociedade de Caça e Turismo, S.A.
-
17,996
1,336,474
527,653
-
3,902
1,333,210
6,594
Navigator Tissue Ibérica
-
14,907,513
2,723,669
-
-
13,014,830
363,134
-
Navigator Itália, SRL
-
2,000
-
-
-
-
2,068
-
Navigator Deutschland, GmbH
-
-
1,753
-
-
-
243,419
-
Navigator Austria
-
10,083
-
-
-
53,857
-
-
Navigator Paper Poland SP Zoo
-
9,332
-
-
-
16,893
-
-
Navigator Tissue Ejea, S.L.
-
27,290,211
-
-
-
-
-
-
Navigator Egypt, ELLC
-
-
58
-
-
-
58
-
Navigator Paper Southern Africa
-
128,742
-
-
-
-
-
-
Empremedia DAC
-
7,491,858
100
-
-
15,619,032
100
-
EMA Cacia - Engenharia e Manutenção Industrial, ACE
-
-
219
150,601
-
-
586
119,629
EMA Setúbal - Engenharia e Manutenção Industrial, ACE
-
-
257
230,822
-
-
941
37,375
EMA Figueira - Engenharia e Manutenção Industrial, ACE
-
-
750
379,599
-
-
1,033
213,733
Navigator Green Fuels Setúbal, S.A.
-
-
-
48,130
-
-
-
-
Navigator Green Fuels Figueira da Foz, S.A.
-
-
-
48,130
-
-
-
-
Navigator Fiber Solutions, S.A.
-
-
148
14,025
-
-
-
-
Other related parties
Secil Britas, S.A.
-
-
6,082
-
-
-
-
-
Hotel Ritz, S.A.
-
-
1,672
-
-
-
-
-
165,486,549
550,417,915
571,088,257
268,133,200
54,229,859
533,935,820
893,297,858
297,339,235
2023 Annual Report • Statutory Auditor’s Report and Audit Report 576
Transactions with related parties
2023
2022
Amounts in Euro
Purchase of
goods and
services
Sales and
services
rendered
Payroll costs
Other
operating
income
Other
operating
expenses
Financial
(expenses) /
income
Purchase of
goods and
services
Sales and
services
rendered
Payroll costs
Other
operating
income
Other
operating
expenses
Financial
(expenses) /
income
Shareholder
Semapa - Soc. de Investimento e Gestão,
SGPS, S.A.
9,730,534
-
-
-
-
-
8,936,416
-
-
-
-
-
9,730,534
-
-
-
-
-
8,936,416
-
-
-
-
Subsidiaries
-
-
Soc. Vinhos Herdade Espirra, S.A.
-
-
-
-
-
-
569
32,658
282
-
-
(22,134)
Eucaliptusland, S.A.
-
477,942
-
-
-
(1,018,275)
-
656,187
-
-
-
(233,481)
Enerpulp, S.A.
(216,984)
3,821,165
(100,050)
-
-
183,888
(321,700)
1,935,323
(200,490)
-
-
133,801
Navigator Brands, S.A.
22,836,745
3,614,698
3,211,813
-
-
(1,776,882)
34,399,411
1,377,349
3,523,458
-
-
(301,434)
Navigator Forest Portugal, S.A.
(11,129)
691,259
(477,898)
(7,540)
264
7,532,631
217,341
584,317
(527,474)
-
-
2,393,990
Empremédia, S.A.
-
-
-
-
-
13,035
-
-
-
-
-
22,177
Navigator Tissue Aveiro, S.A.
115,236,411
55,660,935
-
-
-
4,409,273
103,652,798
60,689,534
-
-
-
1,293,145
Viveiros Aliança, S.A.
206,340
-
-
-
-
26,181
323,165
5,535
-
-
-
5,750
Navigator Paper Setúbal, S.A.
544,360,541
346,969,016
(6,581,076)
-
-
(6,400,644)
733,822,652
570,211,403
(8,356,770)
1,892
-
(1,218,144)
Navigator Tissue Ejea, S.L.
-
18,451,438
-
-
-
970,322
-
-
-
-
-
-
PulpChem Logístics, ACE
30,033,011
-
-
-
-
40,096,793
-
-
-
-
-
Navigator Pulp Setúbal, S.A.
256,271,792
40,816,709
(4,597,528)
-
-
(3,968,120)
384,410,300
67,418,680
(5,654,152)
4,640
-
(724,554)
Navigator Tissue Ródão, S.A.
123,970,800
64,860,817
(90,552)
-
-
(4,830,849)
110,496,905
67,060,494
(32,368)
-
-
(809,863)
Navigator Pulp Figueira, S.A.
384,802,531
58,339,089
(6,797,105)
501
-
(1,799,480)
450,587,728
68,247,435
(8,821,980)
6,421
(1,498)
646,227
Raiz
2,820
309,293
(56,837)
-
-
(286,781)
(1,116)
25,874
(120,961)
-
-
(45,707)
Navigator International Holding SGPS, S.A.
-
-
-
-
-
-
-
-
-
-
-
(488,608)
Navigator United Kingdom, Ltd
19,321,400
-
-
-
-
-
22,260,940
-
-
-
-
-
Navigator Tissue Ibérica
1,282,063
52,736,006
-
-
-
-
975,732
46,177,550
-
-
-
-
Navigator Paper Figueira, S.A.
438,089,123
331,413,041
-
-
-
(1,622,832)
703,891,494
527,449,696
-
-
-
32,847
Navigator Pulp Aveiro, S.A.
205,362,516
28,918,450
(2,361,485)
-
-
1,715,993
235,212,127
42,625,554
(3,924,177)
-
-
389,434
Navigator Parques Industriais, S.A.
-
2,547,324
-
-
-
(1,923,467)
-
874,712
-
2,988
-
222,990
Navigator North America
-
37,220,675
-
-
-
-
4,869,511
164,038,824
-
-
-
-
Portucel Moçambique, Lda.
(8,277)
-
-
16,560
-
-
-
-
-
-
-
-
Bosques do Atlantico, S.L.
(2,701)
-
-
-
-
-
(866)
-
-
-
-
-
Empremedia DAC
-
-
-
-
-
75,698
-
-
-
-
-
684,313
Navigator Afrique du Nord
-
-
-
8,459
-
-
-
-
-
3,275
-
-
Gavião - Sociedade de Caça e Turismo, S.A.
-
-
-
-
-
(63,028)
-
-
-
-
-
(16,292)
Navigator Itália, SRL
160
-
-
-
-
-
302
-
-
-
-
-
Navigator Paper – Southern Africa
-
-
-
128,742
-
-
-
-
-
-
-
-
Navigator Deutschland, GmbH
79,111
-
-
-
-
-
-
-
-
-
-
-
Navigator Austria
-
-
-
16,006
-
-
-
-
-
21,857
-
-
Navigator Paper Poland SP Zoo
-
-
-
17,457
-
-
-
-
-
16,893
-
-
Navigator Eurasia
-
-
-
9,959
-
-
-
-
-
7,643
-
-
Navigator Abastecimento de Madeira, ACE
(42,914)
(782,889)
(411,030)
-
-
303,842
(38,087)
(11,985,153)
(512,245)
-
-
772,728
About the Future, S.A.
-
-
-
-
-
-
-
-
-
-
-
(536)
Navigator Fiber Solutions, S.A.
-
-
-
-
-
(148)
-
-
-
-
-
-
Navigator Tissue France
-
471,828
-
-
-
-
-
-
-
-
-
-
EMA Cacia - Engenharia e Manutenção
Industrial, ACE
-
-
-
-
-
(7,758)
-
-
-
-
-
(2,126)
EMA Setúbal - Engenharia e Manutenção
Industrial, ACE
-
-
-
-
-
(10,363)
-
-
-
-
-
(2,573)
EMA Figueira - Engenharia e Manutenção
Industrial, ACE
-
-
-
-
-
(13,023)
-
-
-
-
-
(2,977)
2,141,573,358
1,046,536,795
(18,261,748)
190,144
264
(8,490,787)
2,824,855,999
1,607,425,972
(24,626,877)
65,609
(1,498)
2,728,973
Other related parties
Secil Britas, S.A.
68,865
-
-
-
-
-
-
-
-
-
-
-
Hotel Ritz, S.A.
3,836
-
-
-
1,106
-
-
-
-
-
-
-
72,701
-
-
-
1,106
-
-
-
-
-
-
-
2023 Annual Report • Statutory Auditor’s Report and Audit Report 577
The remuneration of the Group's key management personnel is detailed in Note 7.3 - Remuneration of
corporate bodies.
11. Explanation added for translation
These financial statements are a translation of the financial statements originally issued in Portuguese. In the event of discrepancies, the Portuguese language
version shall prevail.
2023 Annual Report • Separate Financial Statements 578
BOARD OF DIRECTORS
Ricardo Miguel dos Santos Pacheco Pires
Chairman of the Board of Directors
António José Pereira Redondo
Chairman of the Executive Board
José Fernando Morais Carreira de Araújo
Executive Board Member
Nuno Miguel Moreira de Araújo Santos
Executive Board Member
João Paulo Cabete Gonçalves Lé
Executive Board Member
Dorival Martins de Almeida
Executive Board Member
António Quirino Vaz Duarte Soares
Executive Board Member
Maria Teresa Aliu Presas
Member
Mariana Rita Antunes Marques dos Santos
Member
Sandra Maria Soares Santos
Member
Vítor Paulo Paranhos Ferreira
Board Member
Ana Teresa Cunha de Pinto Tavares Lehmann
Board Member
Hugo Alexandre Lopes Pinto
Board Member
Maria Isabel da Silva Marques Abranches Viegas
Board Member
2023 Annual Report • Statutory Auditor’s Report and Audit Report 579
2023 Annual Report • Statutory Auditor’s Report and Audit Report 580
2023 Annual Report • Statutory Auditor’s Report and Audit Report 581
2023 Annual Report • Statutory Auditor’s Report and Audit Report 582
2023 Annual Report • Statutory Auditor’s Report and Audit Report 583
2023 Annual Report • Statutory Auditor’s Report and Audit Report 584
2023 Annual Report • Statutory Auditor’s Report and Audit Report 585
2023 Annual Report • Report and Opinion of the Supervisory Board 586
2023 Annual Report • Report and Opinion of the Supervisory Board 587
The Navigator Company, S.A.
Report and Opinion of the Supervisory Board
Separate Financial Statements
2023 Financial Year
(Free translation from a report originally issued in Portuguese language. In case of doubt, the Portuguese version will always
prevail.)
Shareholders
9. In accordance with the Law, the Articles of Association and the terms of our mandate, we hereby submit the report on our
supervisory activities carried out in 2023 and issue our opinion on The Individual Management Report and Separate
Financial Statements presented by the Board of Directors of the Navigator Company, SA, for the financial year ended 31
December 2023.
10. Over the course of the year we regularly monitored the affairs of the Company and its most significant affiliates and
associates, with the frequency and to the extent we deemed appropriate, through periodic meetings with the Company’s
Board Members and directors. We monitored the verification of the accounting records and respective supporting
documentation, as well as the effectiveness of the risk management, internal control and internal audit systems. We
monitored compliance with the Law and the Articles of Association. In the course of our activities we encountered no
constraints whatsoever.
11. We met several times with the Statutory Auditor and External Auditor, KPMG & Associados, SROC, Lda, monitoring its
auditing activities and checking its independence. We assessed the Statutory Auditor’s Report and Auditor’s Report, with
which we agree.
12. The Supervisory Board analyzed the proposals submitted to it for the provision of non-audit services by the External
Auditor, and approved those that concerned permitted services, did not affect the independence of the External Auditor
and complied with additional legal requirements.
13. In the scope of our work we verified that:
e) The Separate Statement of Income by Nature, the Separate Statement of Financial Position, the Separate Statement
of Comprehensive Income, the Separate Statement of Changes in Equity, the Separate Statement of Cash Flows and
the accompanying Notes to the Separate Financial Statements, provide an adequate understanding of the Company's
financial position and results, comprehensive income, changes in equity, and cash flows;
f) The accounting policies and valuation criteria adopted comply with the International Financial Reporting Standards
(IFRS) as adopted in the European Union and are suitable to ensure that such criteria lead to a correct valuation of
the Company’s assets and results, following the analyses and recommendations issued by the External Auditor;
g) The Management Report is sufficiently clear as to the evolution of the business and the situation of the Company,
offering a clear account of the most significant developments in its activities;
h) The Corporate Governance Report includes the information required by Article 29.º-H of the Securities Code and takes
into account the recommendations of the Code of the Portuguese Institute for Corporate Governance (IPCG).
14. We are of the opinion that the proposal for application of results presented by the Board of Directors is not contrary to the
applicable legal and statutory provisions.
2023 Annual Report • Report and Opinion of the Supervisory Board 588
15. Accordingly, taking into consideration the information received from the Board of Directors and the Company departments,
and also the conclusions of the Statutory Auditor’s Report and Auditor’s Report, we are of the opinion that:
c) The Management Report be approved;
d) The Separate Financial Statements be approved;
e) The proposal for the application of results presented by the Board of Directors be approved.
16.
Finally, the members of the Supervisory Board wish to acknowledge and express their appreciation for the assistance
received from the Board of Directors, the senior managers of the Company and other staff, as well as the Statutory Auditor,
KPMG & Associados, SROC, Lda.
17.
This Report and Opinion has not been signed by the Member of the Supervisory Board, Mrs. Graça Gonçalves, as, on this
date, she is unable to do so. Despite this circumstance, the Supervisory Board confirms that Dr. Graça Gonçalves
collaborated in the preparation of this Report and Opinion, having monitored, throughout the year just ended and in the
current year, the activities of the Company and the Supervisory Board and contributed to the performance of the duties
and powers of this body.
Lisbon, 15 April 2024
The Chairman of the Supervisory Board
José Manuel Oliveira Vitorino
Member
Gonçalo Nuno Palha Gaio Picão Caldeira
2023 Annual Report • Corporate Governance 590
Part I
Information on Shareholder Structure, Organisation
and Corporate Governance
A. SHAREHOLDER STRUCTURE
I. CAPITAL STRUCTURE
1. Capital structure (share capital, number of shares, capital distribution among shareholders, etc.),
including indication of shares not admitted to trading, different categories of shares, rights and duties
attached to the same, and the percentage of the capital represented by any such category (article
29-H, no. 1, para. a) of the CVM)
The Navigator Company, S.A. has a share capital of Euro 500,000,000, fully paid up, represented solely by 711,183,069 ordinary
shares, without nominal value, the same rights and duties being attached to all shares.
All shares representing the Company’s share capital are listed on the regulated Euronext Lisbon market, managed by Euronext
Lisbon – Sociedade Gestora de Mercados Regulamentados, S.A.
At the end of 2023, the Company carried out a new analysis of its shareholder base, identifying and characterising its main
institutional shareholders.
In addition to the Semapa Group, the majority shareholder with 69.67% of Navigator’s share capital, about 185 institutional
shareholders were identified and characterised, representing about 15% of the shares issued.
Thus, in December 2023, the shareholder composition identified was as follows:
Shareholder composition
* Others does not include non identified, brokerage/trading and several
Semapa
,
70%
Institutional
investors
,
15%
Private
investors
,
12%
Others*
,
3%
Semapa
Institutional investors
Private investors
Others*
2023 Annual Report • Corporate Governance 591
Navigator's institutional shareholders, excluding the majority shareholder, at the end of 2023 were mainly from the United States
of America (USA) and Europe. The weight of US-based shareholders remains stable after the increase in exposure recorded in
2022. It currently stands at 37 per cent (vs. 38 per cent in 2022 and 26 per cent in 2021).
With regard to Shareholders from Europe, we highlight Portuguese Shareholders, with 31% (vs. 33%), Shareholders based in
Spain, who after reducing their exposure last year, increased their position to 12% (vs. 5%), UK Shareholders, around 5% (vs.
6%), and Shareholders based in the Netherlands, with close to 3%. On the other hand, we saw a reduction in the weight of
German-based Shareholders, which last year was 13 per cent.
In addition, in terms of investment style characterisation, around 31% of the shares were held by institutional investors with a
Growth strategy, 30% were Index Funds, 17% of investors had a Value strategy and around 12% had GARP (Growth at
Reasonable Price) strategies.
USA
,
37%
Portugal
,
31%
Spain
,
12%
United
Kingdom
,
5%
Netherlands
,
3%
Rest of Europe
,
11%
Rest of the World
,
1%
Shareholders by Geography
(Institutional– excluding Semapa)
Growth
,
31%
Index
,
30%
Value
,
17%
GARP
,
12%
Hedge
Funds
,
2%
Others
,
8%
Shareholders by Investment Style
(Institutional)
2023 Annual Report • Corporate Governance 592
2. Restrictions on the transferability of shares, such as consent clauses for disposal, or limitations on
ownership of shares (Art. 29-H, no. 1, para. b))
The shares representing Navigator's share capital are freely transferable.
3. Number of own shares, corresponding percentage of share capital and percentage of voting rights
which would correspond to own shares (Art. 29-H, no. 1, para. b))
As at 31 December 2023, Navigator did not hold any own shares.
4. Significant agreements to which the Company is a party and which take effect, are amended or
terminate in the event of a change in the control of the Company as a result of a takeover bid,
together with the respective effects, unless, due to its nature, disclosure of such agreements would be
seriously detrimental to the Company, except if the Company is specifically required to disclose such
information by other mandatory provisions of law (Art. 29-H, no. 1, para. j)).
The Company is not a party to any significant financing agreements, debt issuance instruments or others that come into force, are
amended or terminate in the event of a change of control of the Company following a takeover bid.
Nor has Navigator adopted any measures requiring payments or the assumption of charges by the Company in the event of a
change of control or of the composition of the management body, which could jeopardise the economic interest in the transfer of
shares and the free assessment by the Shareholders of the performance of the Directors.
5. Rules applicable to the renewal or revocation of defensive measures, in particular those providing for
limits on the number of votes which can be held or cast by a single shareholder individually or in a
concerted manner with other shareholders
There are no defensive measures in place within the Company, particularly those that limit the number of votes that can be held
or exercised by a single shareholder individually or in concert with other shareholders.
6. Shareholders’ agreements known to the Company or which might lead to restrictions on the transfer
of securities or voting rights (Art. 29-H, no. 1, para. g).
The Company is not aware of any shareholders' agreement that could lead to restrictions on the transfer of securities or voting
rights.
2023 Annual Report • Corporate Governance 593
II. SHAREHOLDING AND BONDHOLDING POSITIONS
7. Identification of persons and organisations who, directly or indirectly, own qualifying holdings
(articles 29-H, no. 1, para. c) and d) and 16), detailing the attributable percentage of the share capital
and votes and the respective grounds
The holders of qualifying holdings in Navigator on 31 December 2023 are those identified in the table below:
Qualifying Holdings of The Navigator Company, S.A. (The Navigator Company)
calculated under the terms of Article 20 of the Portuguese Securities Code
Holder
Attribution
No. Shares
% shares and
voting rights
Filipa Mendes de Almeida de Queiroz Pereira (Filipa
Queiroz Pereira),
Mafalda Mendes de Almeida de Queiroz Pereira
(Mafalda Queiroz Pereira), and
Lua Mónica Mendes de Almeida de Queiroz Pereira
(Lua Queiroz Pereira)
Jointly, through companies held directly and
indirectly by them and described below, in
conjunction with the shareholders´ agreement they
entered into in relation to their holdings in
companies that own shares of Semapa - Sociedade
Investimento e Gestão, SGPS, S.A.
-
-
Target One Capital, S.A.
Controlled by Filipa Queiroz Pereira; holds 21,56% of
the share capital of Sodim, SGPS, S.A. (Sodim)
-
-
Keytarget Investments - Consultoria e
Investimentos, S.A.
Controlled by Mafalda Queiroz Pereira; holds 21,56%
of Sodim´s share capital
-
-
Premium Caeli, S.A.
Controlled by Lua Queiroz Pereira; holds 21,56% of
Sodim´s share capital
-
-
Sodim, SGPS, S.A.
Indirectly controlled by Filipa Queiroz Pereira,
Mafalda Queiroz Pereira and Lua Queiroz Pereira;
holds 100% of the share capital of Cimo - Gestão de
Participações, SGPS, S.A.(Cimo)
-
-
Cimo - Gestão de Participações, SGPS, S.A.
Indirectly controlled by Filipa Queiroz Pereira,
Mafalda Queiroz Pereira and Lua Queiroz Pereira and
directly by Sodim
-
-
Semapa - Sociedade de Investimento e Gestão,
SGPS, S.A.
Indirectly controlled by Filipa Queiroz Pereira,
Mafalda Queiroz Pereira and Lua Queiroz Pereira and
directly by Sodim and Cimo; direct ownership of
shares
497,617,299
69.970%
Total:
497,617,299
69.970%
8. Indication of the number of shares and bonds held by members of the management and supervisory
bodies
This information is provided in Annex I of Part II of this Report.
9. Special powers of the management board, in particular concerning resolutions to increase capital
(article 29-H (1) (i)) indicating, with regard to these, the date on which they were granted, the period
during which such powers may be exercised, the upper limit for the increase in share capital, shares
already issued under the powers granted and the manner in which the powers granted are
implemented.
The Articles of Association do not authorise the Board of Directors to pass resolutions approving capital increases.
2023 Annual Report • Corporate Governance 594
10. Information on the existence of significant dealings of a commercial nature between holders of
qualifying holdings and the Company.
All the transactions that took place in 2023 between the Company and the holders of qualifying holdings are described in Note
11.3 of the Notes to the consolidated financial statements and Note 10.2 of the Notes to the individual financial statements. There
were no significant commercial relationships between the holders of qualifying holdings and the Company in 2023 - due to the
application of the Regulation on Conflicts of Interest and Transactions with Related Parties and under the terms and conditions set
out therein at any given time, as described in paragraphs 89 et seq. of this Report.
B. GOVERNING BODIES AND COMMISSIONS
I. GENERAL MEETINGS
a) Composition of the general meeting *
* Over the reporting period
11. Officers of the General Meeting and their term of office (starting and ending dates).
The officers of the Board of the General Meeting are:
Chairman: Rui Manuel Pinto Duarte (mandate from 17/05/2023 to 31/12/2025).
Secretary: Luís Nuno Pessoa Ferreira Gaspar (mandate from 17/05/2023 to 31/12/2025).
b) Exercise of voting rights
12. Any restrictions on voting rights, such as limitations on the exercise of voting rights based on the
ownership of a given number or percentage of shares, time limits for exercising voting rights, or
systems for detaching voting rights from ownership rights (Art. 29-H, no. 1, para. f).
In the Company there are no restrictions on the exercise of voting rights by its shareholders.
Navigator's Articles of Association stipulate that each share in the Company corresponds to one vote.
Despite the existence of statutory deadlines for participation in the General Meeting, provided for in the Company's Articles of
Association, mandatory legal provisions apply to this matter, such as Article 23-C of the Portuguese Securities Code. The statutory
deadline for postal voting is the day before the General Meeting.
The Company's Articles of Association were amended at the annual general meeting held on 17 May 2022, at which time they
specifically regulated voting by electronic or postal means, with the Chairman of the Board of the General Meeting being
responsible for verifying their authenticity and regularity and ensuring their confidentiality until the time of the vote, observing the
following:
a) Explanations of vote must be addressed to the Chairman of the General Meeting and received at the registered office no later
than the day before the General Meeting;
b) If the right to vote is exercised electronically, the e-mail addressed to the Chairman of the Board of the General Meeting of
Shareholders must contain an attached document in PDF format, signed in accordance with the signature on the valid
identification document of the respective holder, containing the voting declarations for each of the items on the agenda as
well as a copy of the holder's identification document. The Chairman of the Board of the General Meeting of Shareholders
2023 Annual Report • Corporate Governance 595
may establish in the notice convening the meeting in question a system other than that set out in this paragraph that
ensures equivalent security and reliability;
c) If the right to vote is exercised by post, the envelope must contain a letter addressed to the Chairman of the Board, duly
signed in accordance with the signature on the holder's valid identification document and containing the explanations of vote
relating to each of the items on the agenda, as well as a copy of the holder's identification document;
d) Votes cast by these means shall be counted together with any votes cast at the General Meeting, and shall count as negative
votes in relation to proposals submitted after they have been cast.
The General Meeting may also be held by telematic means, whenever this proves to be appropriate and convenient, provided that
the Chairman of the Board of the General Meeting confirms that, for the purposes of holding the meeting, the respective means,
the authenticity of the declarations and the security of the communications are ensured, and the Company records the content
and the respective participants.
For the purposes of identifying the Company's Shareholders and final Investors, the Company has the right, under the terms and
for the purposes of the Securities Code, to be provided with information on the identity of its Shareholders by the entity managing
the centralised system or by the relevant financial intermediaries at any time, so as to be able to communicate directly with them
and facilitate the exercise of the rights inherent in their shares and their involvement in the Company.
Until this amendment, the Articles of Association authorised the Board of Directors to regulate ways of exercising voting rights
other than by paper ballots, provided that they also ensured the authenticity and confidentiality of the votes until the moment of
voting.
Although the Board of Directors has not made use of this option, the Chairman of the Board of the General Meeting has always
accepted voting by electronic mail, provided that it is received under conditions equivalent to voting by post, in terms of time,
intelligibility, guarantee of authenticity, confidentiality and other formalities.
There are no systems for highlighting property rights.
13. Indication of the maximum percentage of the voting rights which can be exercised by a single
shareholder or by shareholders connected in any of the forms envisaged in article 20 (1).
There are no statutory rules establishing rules in this regard.
14. Identification of shareholder resolutions which, under the Articles of Association, can only be adopted
with a qualified majority, in addition to those provided for by law, and details of the majorities
required.
The Company's Articles of Association do not contain specific rules regarding the constitutive or deliberative quorum at General
Meetings, so the legal provisions of the Commercial Companies Code apply in full.
2023 Annual Report • Corporate Governance 596
II. CORPORATE BOARDS AND SUPERVISION
(Board of Directors, Executive Committee and General and Supervisory Board)
a) COMPOSITION *
* Over the reporting period
15. Identification of the governance model adopted.
The Company adopted in its Articles of Association a one-tier management model, i.e. with a Board of Directors made up of
executive and non-executive members, a Supervisory Board and a Statutory Auditor, under the terms of Article 278(1)(a) and
Article 413(1)(b) of the Commercial Companies Code.
16. Rules in the Articles of Association on procedural and material requirements applicable to the
appointment and replacement of members, as the case may be, of the Board of Directors, the
Executive Committee and the General and Supervisory Board (article 29-H, no. 1, para. h).
Diversity Policy.
The Company currently has no special rules in its Articles of Association regarding the appointment and replacement of directors.
In this respect, the general supplementary rules set out in the Portuguese Companies Code apply, i.e. the power to appoint
directors (between three and seventeen) and the supervisory body rests with the shareholders.
However, the Articles of Association provide that a director may be elected individually if there are proposals subscribed and
presented by groups of shareholders, provided that none of these groups holds shares representing more than twenty per cent
and less than ten per cent of the share capital. If such proposals are submitted, the election will be held separately and before the
election of the other Directors. The same shareholder may not subscribe to more than one list. Each proposed list must identify at
least two eligible persons.
If lists are presented by more than one group, the vote will be on all of these lists.
In 2020, Navigator's Board of Directors approved the following Company Diversity Principles, which were revised in 2021, setting
out the requirements and criteria for the profile of new members of corporate bodies and senior managers. :
- Inclusion of members with different academic qualifications and professional experience in different areas, appropriate and
relevant to the position to be held;
- Promoting gender diversity;
- Inclusion of members of different ages, combining acquired experience with new perspectives; and
- Inclusion of members with different geographical backgrounds or experiences.
These principles are published on the Company's website (www.thenavigatorcompany.com/investidores/governo-da-sociedade).
These Diversity Principles constitute the Company's formal recognition of the benefits of diversity in its governing bodies, namely
as a way of ensuring greater balance in its composition, enhancing the performance of each member and, as a whole, of each
body, improving the quality of decision-making processes and contributing to its sustainable development.
To this end, the competences matrix below shows that there is a fairly reasonable degree of diversity in its various dimensions
and with regard to the members of Navigator's Board of Directors:
2023 Annual Report • Corporate Governance 597
SKILLS MATRIX
Gender
Year
of Birth
Position
Engineering
Economy
Management
Mathematics
Other
training
Business
Administration
and
Management
Governance
Mergers
and
Acquisitions
Internationalization
Academic
Talent
Management
Research and
Development
Information
Technology
Environment and
Sustainability*
Pulp
and
paper
Energy
Industry
Ricardo
Miguel dos
Santos
Pacheco
Pires
M
1976
PCA
•
•
•
•
•
•
•
•
•
•
•
•
António
José
Pereira
Redondo
M
1964
CEO
•
•
•
•
•
•
•
•
•
•
•
•
José
Fernando
Morais
Carreira de
Araújo
M
1964
CFO
•
•
•
•
•
•
•
•
•
•
•
Nuno
Miguel
Moreira de
Araújo
Santos
M
1970
•
•
•
•
•
•
•
•
•
•
•
João Paulo
Cabete
Gonçalves
Lé
M
1963
•
•
•
•
•
•
•
•
•
•
Dorival
Martins de
Almeida
M
1966
•
•
•
•
•
•
•
•
•
•
•
•
•
António
Quirino
Soares
M
1974
•
•
•
•
•
•
•
•
Ana Teresa
Cunha de
Pinho
Tavares
Lehmann
F
1972
•
•
•
•
•
•
•
•
•
•
•
Hugo
Alexandre
Lopes
Pinto
M
1978
•
•
•
•
•
•
•
•
•
Maria
Isabel da
Silva
Marques
Abranches
Viegas
F
1958
•
•
•
•
Maria
Teresa Aliu
Presas
F
1952
•
•
•
•
•
•
•
•
Mariana
Rita
Antunes
Marques
dos Santos
F
1966
•
•
•
•
•
•
•
Sandra
Maria
Soares
Santos
F
1971
•
•
•
•
•
•
•
•
•
•
Vitor Paulo
Paranhos
Pereira
M
1957
•
•
•
•
•
•
•
•
* Includes skills in topics related to (i) sustainable forest management (risk and opportunity management, good practices and certification) and (ii) climate action (risk and opportunity management, impact assessment
and strategies).
2023 Annual Report • Corporate Governance 598
It should also be noted that the Appointments Committee is the committee with advisory functions in terms of appointing
governing bodies, with powers to support the identification of potential members of the governing bodies and to assess the
suitability of each candidate for the position to be filled. It must ensure transparent selection processes and that candidates are
proposed who have the greatest merit, are best suited to the requirements of the position and promote appropriate diversity
within the organisation, including between men and women.
In this way, the Company believes that all the objectives resulting from the formal adoption of a diversity policy have been
achieved, which is also demonstrated by reality.
It should also be noted, and reinforcing the promotion of diversity, that in 2023 the Company approved the 2024 Equality Plan,
with progress compared to the 2023 Equality Plan approved in 2022, and has communicated this Plan to the CMVM, which has
also published it on Navigator's website
(https://www.thenavigatorcompany.com/var/ezdemo_site/storage/original/application/41523bdbec982fd5e7008e7663530e3d.pdf).
Navigator recognises the benefits of diversity in corporate bodies and management positions, particularly in the Board of
Directors, Audit Board and management positions, as a way of ensuring greater balance in their composition, enhancing the
performance of each member, and of each body as a whole, improving the quality of decision-making processes and contributing
to the sustainable development of the Company.
Similarly, Navigator is committed to promoting gender equality across the board. It recognises that contributing to the goal of
parity between men and women requires a continuous focus on increasing the number of women in our workforce, creating the
internal conditions - by strengthening policies and practices - so that they can increasingly move into leadership roles.
Navigator does not differentiate between men and women in terms of salary, and the starting salary is the same for both male
and female employees. The salary ratio presented considers macro-level framework groups, and for each of these groups there
are different salary positions resulting from different career paths, which has an impact on the average values obtained for the
reported salary ratio.
Navigator continues to endeavour to strengthen its policies and practices to promote equal opportunities through a culture of
meritocracy, eliminating any form of discrimination and aiming to improve the distribution of the population in leadership
positions. To this end, it has sought to develop the skills of its leaders (current and potential) through training and coaching
programmes. These instruments, as well as career paths and plans for women, including for operational functions, help to support
women professionals with potential in accessing leadership positions and achieve a better gender balance in all functions of the
organisational pyramid. Although the number of female managers at Navigator amounts to 15.2% of the total number of women,
this indicator is expected to evolve over time with the natural progression of careers. In 2023, new female directors were
appointed for key areas in the Company, with effect from January 2024, resulting in a significant increase in the representation of
female managers over the last five years. Information on how compliance with the more balanced representation regime
contributes to the promotion of equality between men and women at Navigator, with regard to members of corporate bodies and
their employees, is detailed in the Annual Report chapter in Chapter 6.5.1.
17. Composition, as the case may be, of the Board of Directors, the Executive Committee and the General
and Supervisory Board, detailing the provisions of the Articles of Association concerning the minimum
and maximum number of directors, duration of term of office, number of full members, and the date
when first appointed and the end of their terms of office for each member.
The Company's Articles of Association stipulate that the Board of Directors comprises three to seventeen members, elected for
three-year, renewable terms.
On 17 May 2023, the Company's General Meeting approved a resolution electing the members of the Company's Board of
Directors for the three-year period 2023-2025, with co-option taking effect on 1 August 2023. Thus, on 31 December 2023, the
Board of Directors comprised fourteen members - a chairman and thirteen members.
2023 Annual Report • Corporate Governance 599
The date of the first appointment and the end of the term of office are individualised for each member:
Name
Date of First appointment
and end of term in office
Ricardo Miguel dos Santos Pacheco Pires
2015-2025
António José Pereira Redondo
2007-2025
José Fernando Morais Carreira de Araújo
2007-2025
Nuno Miguel Moreira de Araújo Santos
2015-2025
João Paulo Cabete Gonçalves Lé
2020-2025
Dorival Martins de Almeida
2023-2025
António Quirino Vaz Duarte Soares
81
2023-2025
Adriano Augusto da Silva Silveira
82
2007-2022
João Paulo Araújo Oliveira
83
2015-2023
Ana Teresa Cunha de Pinho Tavares Lehmann
2023-2025
Hugo Alexandre Lopes Pinto
2023-2025
Maria Isabel da Silva Marques Abranches Viegas
2023-2025
Maria Teresa Aliu Presas
2019-2025
Mariana Rita Antunes Marques dos Santos
2019-2025
Sandra Maria Soares Santos
2019-2025
Vítor Paulo Paranhos Pereira
2020-2025
Manuel Soares Ferreira Regalado
2004-2022
Vítor Manuel Rocha Novais Gonçalves
84
2015-2022
The composition of the Board of Directors is freely available for consultation on the Company's website at
www.thenavigatorcompany.com/Investidores/Governo-da-Sociedade.
81
Started functions on 1 August 2023.
82
Term in office ended on 17 May 2023.
83
Term in office ended on 31 July 2023.
84
Term in office ended on 17 May 2023.
2023 Annual Report • Corporate Governance 600
18. Distinction between executive and non-executive members of the Board of Directors and, in relation
to non-executive directors, identification of those who can be regarded as independent or, if
applicable, identification of the independent members of the General and Supervisory Board.
(A) Executive and non-executive Directors; identification of independent directors
As of 2023, six members of the Board of Directors held executive positions and formed an Executive Committee, which was
elected and whose powers were delegated by the Board of Directors, and eight of the Directors hold non-executive positions.
The executive members of the Board of Directors belong to the Executive Committee and are identified below in point 28, while
the other members are non-executive.
Given that, throughout 2023, the number of non-executive directors represented 57.1% of the members of the Board of
Directors, we consider this percentage to be adequate for the size of the Company and the complexity of the risks inherent in its
activity, and sufficient to efficiently ensure the duties entrusted to them.
This judgement of suitability took into account, in particular, the size of the Executive Committee and the delegation of powers
entrusted to it by the Board of Directors, the profile, age, professional background and experience and integrity of the members of
this body, their diverse skillset and the availability of the non-executive members to carry out their duties, which, through the
close co-operation developed with the Chairman of the Board of Directors and the members of the Executive Committee, ensure
effective monitoring, supervision and assessment of the activity of the executive members of the Board of Directors, the
Company's activities, its family nature and the stability of its shareholder capital structure.
At the Annual General Meeting held on 17 May 2023, which elected the members of the governing bodies for the current term,
three new non-executive members of the Board of Directors were elected - Ana Teresa Cunha de Pinho Tavares Lehmann, Hugo
Alexandre Lopes Pinto and Maria Isabel da Silva Marques Abranches Viegas - the first of whom can be considered independent,
thus increasing the number of independent directors to four in accordance with the criteria for measuring independence defined in
point 18.1 above and in Recommendation IV.2.4 of the IPCG Corporate Governance Code. The Company thus has 50%
independent non-executive directors, more than a third of the non-executive directors, in accordance with the Recommendations
of the IPCG Corporate Governance Code.
The remaining four non-executive directors, although not independent in accordance with the above criteria, have the necessary
suitability, experience and proven professional competence, which makes it possible to enrich and optimise the Company's
management with a view to creating value, as well as ensuring the effective defence of the interests of all shareholders and
supervising and assessing the activity of the executive directors in an impartial, independent and objective manner and, at the
same time, ensuring that there are no conflicts of interest between the interests and position of the Shareholder and the
Company.
(B) Coordination mechanism which is equivalent to the appointment of a Lead Independent Director
In view of the specific characteristics of the Company, namely its family nature and the concentration of its capital structure, the
total number of non-executive Directors and, among these, independent Directors, as well as the characteristics and current
position of the Chairman of the Board of Directors, the Company considers that the appointment of a coordinator would be
inappropriate and would merely aim at formal compliance with this recommendation, which the Company does not agree with.
In reality, and as already mentioned in this report, the Company has a number of rules and procedures in place which allow for
close and regular coordination between the various members of the Board of Directors, particularly between the Chairman and the
other Directors, and the existence of the conditions and means necessary for them to carry out their duties in an independent,
informed and efficient manner, guaranteeing the supervisory and oversight role of executive management.
In this regard, we would like to highlight the various mechanisms provided for in the Regulations of the Board of Directors and the
various internal committees of the Company, under which:
2023 Annual Report • Corporate Governance 601
a) The members of the Board of Directors, including the non-executive members, may have access to all the information
necessary to assess the Company's performance, situation and development prospects, including, in particular, the minutes,
the documentation supporting the decisions taken, the convening notices and the archives of the meetings of the other
governing bodies, without prejudice to access to any other documents or persons from whom clarification may be requested;
b) The Chairman of the Board of Directors shall inform the Company's Directors, at the beginning of each Board meeting, of the
most relevant resolutions and acts carried out by the Executive Committee since the previous meeting, which are not yet
known to the other Directors;
c) Minutes shall be drawn up of all meetings of the Executive Committee, which shall be kept by the Company Secretary and
made available to any member of the Board of Directors who requests them;
d) The Chairman of the Executive Committee shall, as far as possible, promote the involvement of non-executive directors in
specific projects and acts so as to enable non-executive directors to be more closely involved in the Company's activities,
depending on the matters in question and the specific qualifications and preferences of each one;
e) All executive directors must be available to provide any clarification and information requested by non-executive directors;
f) The Chairman of each of the Company's Internal Committees must inform the Board of Directors of the resolutions of the
Committee of which he is a member, which in view of their relevance should be brought to its attention. In the case of the
Executive Committee, this task falls to the Chairman of the Executive Committee;
g) All members of the Company's Internal Committees must be available to provide any clarification and information requested
by the other Directors;
h) Supporting documents relating to the various items on the agenda for meetings of the Board of Directors and the Company's
Internal Committees must be distributed to all members in advance so that they can be analysed in good time, preferably
when the meeting is convened.
In addition, at least three non-executive directors are members of the Talent Committee - the Chairman of the Board of Directors
is also chairman of the Talent Committee and the Corporate Governance Committee - thus reinforcing the coordination and
performance of the work of the non-executive members.
The Company has therefore established a mechanism equivalent to the coordination of non-executive directors by appointing a
lead independent director.
19. Professional qualifications and other relevant biographical details of each member, as applicable, of
the Board of Directors, the General and Supervisory Board and the Executive Committee.
Ricardo Miguel dos Santos Pacheco Pires
Ricardo Pires has a degree in Business Administration and Management from Universidade Católica Portuguesa, a specialisation in
Corporate Finance from ISCTE and an MBA in Business Management from Universidade Nova de Lisboa. He began his career in
management consultancy between 1999 and 2002, first at BDO Binder and then at GTE Consultores. Between 2002 and 2008 he
worked in the Corporate Finance Department of ES Investment, where he carried out various M&A and capital markets projects in
the Energy, Pulp and Paper and Food & Beverages sectors. He has worked with Semapa since 2008, initially as Director of
Strategic Planning and New Businesses and then, from 2011, as Chief of Staff to the Chairman of the Board of Directors. Since
2014, he has been an Executive Director of Semapa and, since 2022, Chairman of its Executive Committee, while also holding
positions in other related companies. Since 2015, he has held management positions at The Navigator Company and Secil, and in
2022 he will become Chairman of the Board of Directors of these companies. In 2017, he was appointed CEO of Semapa Next,
2023 Annual Report • Corporate Governance 602
and in 2022 he became Chairman of the Board of Directors of that company. Since 2020, he has been Chairman of the Board of
Directors of ETSA. In 2021, he taught a master's programme at the Catholic University of Lisbon.
António José Pereira Redondo
António Redondo has a degree in Chemical Engineering from the FCT of the University of Coimbra, a degree in Business
Management and an MBA with a specialisation in Marketing from UCP. He joined Soporcel in 1987, where he held various positions
in the technical, production, marketing and commercial management areas. He has been a member of the Board of Directors and
Executive Committee of The Navigator Company since April 2007, having been Chief Commercial Officer from 2007 to 2019, with
responsibilities in the areas of Marketing, Sales, Revenue Management, Supply Chain, Logistics and Product Development. In
2020, he was appointed CEO of the Company. He is also Chairman of Biond - Forest Fibers from Portugal, Director of CIP
(Business Confederation of Portugal), member of the Boards of CEPI (Confederation of European Paper Industries) and Euro-
Graph (European Association of Graphic Paper Producers) and Member of the Board of COTEC Portugal - Business Association for
Innovation.
José Fernando Morais Carreira de Araújo
Fernando Araújo has a degree in Law from Universidade Lusíada do Porto (2000) and a bachelor's degree in Accounting and
Administration from Instituto Superior de Contabilidade e Administração do Porto (ISCAP - 1986) and a Specialised Higher Studies
Course in Financial Control from the same institution (1992). He has been a Chartered Accountant since 1995. Certified
Accountant since 1987. He has been Vice-Chairman of the Board of the General Meeting of Biond - Forest fibers from Portugal
since 2022. He has been a member of the Audit Board of the Portuguese Institute of Chartered Accountants since January 2021
and a member of the Board of the Portuguese Tax Association since 2019. He has a postgraduate degree in Advanced Financial
Accounting (ISCTE - 2002/2003), a postgraduate degree in Tax Law from the Lisbon Faculty of Law (FDL - 2002/2003) and a
postgraduate degree in Corporate Governance from the Lisbon Institute of Economics and Management (ISEG - 2006/2007). He
completed an MBA in Corporate Reporting at ISCTE - IUL in 2016. He began his professional career in 1987 at Sportrade, where
he was responsible for accounting at Eurofer between 1988 and 1993 and was head of Administrative Services at COLEP from
1991 to 1993. Between 1993 and 2001, he worked in the tax area at KPMG, where he was Senior Tax Manager between 1993 and
2001. He was Director of Tax and Accounting at Secil between 2001 and 2005, at Semapa between 2002 and 2006, and at the
company between 2006 and 2007. He has been an executive director of the company since April 2007.
Nuno Miguel Moreira de Araújo Santos
Nuno Santos has a degree in Civil Engineering from Instituto Superior Técnico (1993) and an MBA from INSEAD (1996). He began
his professional career at McKinsey & Company in 1993 and, until March 2015, was Senior Partner and leader of the Energy,
Commodities & Industry Practice in McKinsey's Iberia Office. He was also a member of the Leadership Committee of the Energy,
Commodities & Industrials Global Practice. He became an executive director of The Navigator Company in April 2015. He is
currently President of APIGCEE (Portuguese Association of Large Electricity Consumers).
João Paulo Cabete Gonçalves LéS
João Lé has a degree in Agronomy specialising in Agricultural Economics from the Instituto Superior de Agronomia (ISA) of the
Universidade Técnica de Lisboa, a post-graduate degree in Silviculture of Fast-Growing Species from the ISA and the Universidade
de Trás-os-Montes e Alto Douro and a post-graduate degree in Management specialising in Finance from ISCTE, Universidade de
Lisboa. He has been with the Navigator Group for around 30 years, having taken on responsibility for the Forestry Area in August
2007 and, in July 2016, he was appointed CEO of Portucel Moçambique, responsible for the project to implement a forestry-based
industry in Mozambique through DUATs (areas allocated by the government), with around 360,000 hectares in two provinces. He
has been an executive director of the Company since January 2020.
2023 Annual Report • Corporate Governance 603
Dorival Martins de Almeida
Dorival Almeida has a degree in Chemical Production Engineering from the Federal University of São Carlos, a postgraduate
degree in Business Management from the Armando Álvares Penteado Foundation, a specialist degree in Quality Engineering from
the State University of Campinas, a postgraduate degree in Production Management from the Federal University of São Carlos, a
postgraduate degree in Pulp and Paper Technology from the Federal University of Viçosa, a postgraduate degree in People and
Talent Management from the University of Coimbra and an MBA in Business Management from the Getúlio Vargas Foundation. He
worked at Votorantim Celulose e Papel from 1992 to 2007, at International Paper between 2007 and 2019 and at CMPC between
2019 and 2021. He joined Navigator in 2021 as Industrial Director of the Figueira da Foz Mill. He became an executive director of
The Navigator Company in April 2023.
António Quirino Vaz Duarte Soares
António Quirino Soares has a degree in Business Management from the University of Coimbra and a Master's degree in Economics
from the University of Exeter, UK. He joined The Navigator Company in 2001, where he held various positions in the Sales and
Marketing areas for 13 years. This was followed by five years as Marketing Director, during which time he boosted the
international presence of the Company's mill brands and promoted the production of knowledge on market and sociological trends
in paper consumption on a global scale, including the Horizon 2030 study. Before joining the Executive Committee, Quirino Soares
was Supply Chain Director, a position in which he managed the logistical challenges arising from the global disruptions during the
pandemic. During his two years in charge of this area, he also launched the supply chain operations associated with Navigator's
new sustainable packaging line. António Quirino Soares has been a member of The Navigator Company's Executive Board since 1
August 2023. He is an Executive Director responsible for Logistics, Marketing, Supply Chain, Product Technology, European Sales,
International Sales, E-Commerce, Moulded Pulp, Packaging and Pricing.
Ana Teresa Cunha de Pinho Tavares Lehmann
Ana Lehmann has a degree in Management from FEP-Universidade do Porto and a Masters and PhD in Economics (International
Business) from the University of Reading (UK). She is a non-executive member of the Board of Directors of The Navigator
Company, TAP-Transportes Aéreos Portugueses, S.A. and TAP-SGPS, S.A., and Chairman of the Board of Directors of the Iberian
group Zolve-Logifrio. She chairs the General Board of the Fund for Internationalisation, the Finance, Audit and Risk Committee of
TAP-S.A. and TAP SGPS-S.A., and is a member of the Advisory Board of the Orkestra-Basque Competitiveness Institute and the
U.Fribourg Competitiveness Institute, the Strategic Council for the Digital Economy (CIP) and collaborates regularly with various
international organisations. She was Secretary of State for Industry (XXI Constitutional Government). She is a Professor at FEP-
U.Porto and has taught/researched at various European and American universities (Columbia University of New York, Glasgow,
Reading, Uppsala, among others) in the areas of Foreign Direct Investment, Internationalisation and Innovation. She was Vice-
President of CCDR-N, President of the Managing Authority of the European Union's Atlantic Area Programme, Pro-Rector of
U.Porto, President of the Investment Committee of the Social Innovation Fund and a member of the Supervisory Board of the
European Institute of Innovation and Technology (EIT) Manufacturing. She supported the founding of API-Portuguese Investment
Agency and InvestPorto. He was President of the European International Business Academy.
Hugo Alexandre Lopes Pinto
Hugo Pinto has a degree in Civil Engineering from Instituto Superior Técnico, an Executive Master's Degree in Real Estate
Management and Finance from ISCTE - Instituto Universitário de Lisboa and an MBA from INSEAD. Between 2001 and 2007 he
was a structural engineer and project manager at J. L. Câncio Martins - Projecto de Estruturas, Lda. From 2007 to 2013 he was
project manager at SONAGI. From 2018 to 2020 he was Director and Member of the Semapa Next, S.A. Investment Committee.
Since March 2013 he has held various positions in the SEMAPA Group, having been Director of Planning and Strategic
Development (07/2020-12/2021), Director of the CEO's Office (01/2019-06/2020), Deputy Director of the CEO's Office (04/2016-
12/2018), Deputy Director of Finance (11/2014-03/2016) and Deputy Director of Strategic Planning and New Business (03/2013-
10/2014). He is a director of Quotidian Podium, S.A., Secil - Companhia Geral de Cal e Cimentos, S.A., Semapa Next, S.A., ETSA
- Investimentos, SGPS, S.A., Capital Hotels - Soc. De Investimentos e Gestão, S.A. and Hotel Ritz, S.A. She is also a member of
2023 Annual Report • Corporate Governance 604
Semapa's Executive Management Committee, a member of the Supervisory Board of Fundação Nossa Senhora do Bom Sucesso
and a member of the Remuneration Committee of Sonagi, SGPS, S.A. She joined Navigator as a non-executive director in May
2023.
Maria Isabel da Silva Marques Abranches Viegas
Maria Isabel Viegas has a degree in psychology from the Instituto Superior de Psicologia Aplicada (ISPA) and a master's degree in
Human Resources Policies and Management from ISCTE. She joined Marconi between 1990 and 1999, where she was Head of
Recruitment and Development Services (between 90 and 94), Head of Labour Relations and Social Policy (between 95 and 98)
and Head of Personnel Management (between June 98 and September 1999). From 1999 to 2003, she worked at Jazztel as
Human Resources Director. At the Banco Santander Totta Group, from 2003 to 2017, she was Coordinating Director of Human
Resources for the Santander Group and Director of Santander Pensions. Between 2018 and 2021, she held consultancy positions:
she was an Advisor to some companies within ECS Capital (Montalva Group, Vale de Lobo, Moretextile) and Semapa in the Talent
area; she carried out consultancy projects in Strategic Human Resources Management (e.g. Montellano Group, Pestana Group,
Infraestruturas de Portugal) and was also a mentor to top executives in several companies and, on a pro bono basis, in the PWN
Mentoring Programme, where she accompanies young Executive Women. She is also a regular lecturer at the Católica Lisbon
School of Business and Economics, particularly in the Executive Masters and Executive Training, where she has been teaching and
coordinating various programmes since 2006. She was recognised with the Career Award in 2017 as part of the HR Awards 2017
by the IIRH. She is also dedicated to philanthropic activities, as Co-Founder and member of the Board of the dNovo Association
(since 2020), which supports highly qualified professionals over the age of 50 who are unemployed. She joined the Semapa Group
in January 2022 as Chief People Officer, as a member of the Executive Management Committee and as a member of Semapa's
Talent Committee. At Secil she is a non-executive director and a member of the remuneration committee. She is a director of
Semapa Next, a member of the Remuneration Committee of Semapa Next, a member of the Remuneration Committee of ETSA
Investimentos and a member of Quotidian Podium. He has been a member of SONAGI's Remuneration Committee since 2022.
She joined Navigator in May 2023 as a non-executive director.
Maria Teresa Aliu Presas
Maria Teresa Aliu Presas has a degree from the Instituto Superior de Psicologia Aplicada in Lisbon. She made her career in the
paper industry and joined the Tetra Pak Group in 1982, where she held various positions in Portugal, Switzerland, the
international headquarters, and Brussels, in the areas of Marketing and Communication, Environment and European Affairs,
namely vice-president of the Europe Region and head of environment for the entire group. From 2003 to 2011, he headed the
European Confederation of the Paper Industry (CEPI). She has been a member of the board of directors of various European
associations and a non-executive director of the company Powerflute Oy. She currently works for the consultancy Magellan in
Brussels, is a non-executive director of the World Bioeconomy Forum and has been a non-executive director of Navigator since
2019.
Mariana Rita Antunes Marques dos Santos
Mariana Marques dos Santos graduated in Business Management from Universidade Católica Portuguesa and complemented her
training with an MBA from INSEAD (Fontainebleau), having also attended the same programme at Kellogg - Northwestern
University in Chicago. From 1989 to 2006, she taught quantitative methods at ISCTE and strategy and internationalisation policies
at the IBS-ISCTE Business School. Alongside her academic activities, she has developed a business career linked to various areas
and functions. Starting out by experiencing the dynamics of the financial markets, he collaborated with Lloyds Bank in the area of
securities portfolio management. She then joined a venture capital team - SFIR - where she was a project analyst in 1991 and
1992. She was also a consultant in Madrid for a multinational company, Arthur D.Little, where she was involved in various
projects, including the launch of the Portuguese branch in 1995 and 1996. She then took on a succession of international roles
within the Abrantina Group between 1996 and 2007, namely in Mozambique and Germany, managing projects in various areas,
such as food or the production and distribution of building materials. At the end of 2007, she took on a business project of her
own, launching NBC Medical, in the area of international trade in medicines, where she was involved as managing partner until
June 2021. She has been a non-executive director of The Navigator Company since May 2019. She has been a member of the
2023 Annual Report • Corporate Governance 605
board of FAE - Fórum de Administradores e Gestores de Empresas since March 2022. Since January 2024, she has been vice-
chairman of the International Trade Committee at the World Trade Centre Lisboa.
Sandra Maria Soares Santos
Sandra Maria Soares Santos has a degree in management from the Faculty of Economics in Porto (1989-94) and an MBA from
PBS - Porto Business School (1999). She began her career at Banco Espírito Santo and the University of Porto in 1994, where she
was a guest lecturer. At BES she held various technical and commercial positions, at a time when the bank was incorporating
young managers and substantially transforming its organisational structure and way of doing business. She began her career at
BA Group at the end of 1999 as Controller, a position she took on at a time when the group was starting to expand
geographically. Since then, she has held various positions, such as Finance Director, Human Resources Director, Factory Director
and CFO. It was as CFO (2007) that she played an active role in the acquisition and integration processes of the acquired
companies. In 2012, she was seconded to be CFO of another business, plastic packaging, in which BA's shareholders decided to
invest, an assignment she completed a year later. Since 2014, she has been CEO and a member of the BA Group's Board of
Directors. Today, the BA Group has industrial operations in 9 European countries, 14 industrial units, more than 5000 employees
and an annual turnover of 1600 million euros. She has been a non-executive director of Navigator since April 2019. She is
currently on the Board of the Business Roundtable Portugal Association, created in 2021 with the ambition of helping Portugal
grow. She has also been a non-executive director of BPI and chair of its appointments and remuneration committee since 2023.
Vítor Paulo Paranhos Pereira
Vítor Paranhos Pereira has a degree in Economics from the Portuguese Catholic University and attended AESE (University of
Navarre). He began his professional career in 1982 at Gaspar Marques Campos Correia & C.ª, Lda. as Finance Director until 1987.
From 1987 to 1989, he held the position of Deputy Finance Director at the Instituto do Comércio Externo de Portugal (ICEP). In
1989, he joined the Group as CFO of Sodim, having been appointed a member of its Board of Directors in 2009, a position he held
until May 2018 and then from March 2020 to the present. He has also held management positions in various companies related to
Sodim, namely Hotel Ritz since 1998. Between 2001 and 2016, he also held management positions at Hotel Villa Magna. He has
been a director of Sonagi since 1995 and has been Chairman of the Board of Directors since June 2020. He was appointed a
director of Refundos in 2005, serving as Chairman of the Board of Directors of that company from 2018 until May 2020. From
2006 to 2015, he was Chairman of the Supervisory Board of the Hotel Association of Portugal (AHP) and, in April 2019, he was
appointed Chairman of the Board of the General Meeting of this organisation. From 2007 to 2016, he was Chairman of the General
Meeting of the Portuguese Association of Investment Funds, Pensions and Assets (APFIPP). He was a member of the Supervisory
Board of Eurovida - Companhia de Seguros, S.A. and Popular Seguros - Companhia de Seguros, S.A. from 2009 to 2018. In 2014,
he was appointed a member of the Board of Directors of Semapa. Since March 2020, he has been an executive director of
Semapa and other related companies, and since February and March 2020 he has also held management positions at Secil and
The Navigator Company, respectively.
Adriano Augusto da Silva Silveira
Adriano Silveira has a degree in Chemical Engineering from the Faculty of Engineering of the University of Porto. He began his
career at the Environmental Studies Service, having worked at Empresa Nacional de Urânio (1979) and Empresa Minas de Jales
(1983). He joined Soporcel in 1983, where he held various positions of responsibility in the areas of energy recovery, pulp and
paper production, project management, maintenance and engineering. He was a member of the Company's Board of Directors
between 2007 and 17 May 2023. He was an Executive Director between April 2007 and July 2015, having rejoined the Executive
Committee between 1 January 2020 and 17 May 2023.
João Paulo Araújo Oliveira
João Paulo Oliveira has a degree in Industrial Production Engineering from the Faculty of Science and Technology of Universidade
Nova de Lisboa (1988) and an MBA in Commercial Engineering and Management from AEP - ESADE, Spain (1994). He began his
career with the Bosch group in 1989. Between 1994 and 1996, he was industrial director of Bosch in China. Subsequently, he was
2023 Annual Report • Corporate Governance 606
involved in the project to acquire a company in Chile and also took on roles in the Bosch Group's operations in France and
Germany. Between 2002 and 2015, he was managing director of Bosch Termotecnologia S.A. For the last 8 years he was
President of the group's Hot Water Business Unit, whose worldwide competence centre is in Aveiro. He was president of the
Portuguese-German Chamber of Commerce and Industry between 2009 and 2012. He is also a member of the Advisory Board of
AICEP and a member of the Supervisory Board of the Fraunhofer Institute in Portugal. He was an executive director of the
Company from July 2015 to May 2023.
Manuel Soares Ferreira Regalado
Manuel Regalado has a degree in Finance from the Instituto Superior de Economia e Gestão (ISEG) in Lisbon (1972) and
completed the Senior Executive Programme at the London Business School (1997). He began his professional career in 1971 and,
between then and 1984, he held various positions in internal auditing, management planning and control and investment project
analysis. Between 1984 and 1994 and from 1998 to 2004, he held administrative and management positions in organisations
operating in different sectors, namely banking, insurance, industry and energy, such as Edinfor, COSEC, IAPMEI, Hidroelétrica de
Cahora-Bassa and Banco BPI (in Portugal, Africa and Latin America). Between 1994 and 1998, he was a member of the Board of
Directors of Portucel, and was also a member of the governing bodies of Inapa and CELPA. He was a member of the Board of
Directors of The Navigator Company from 2004 to 17 May 2023, having been an executive director until 2016.
Vítor Manuel Rocha Novais Gonçalves
Vítor Novais Gonçalves has a degree in Business Management from ISC-HEC in Brussels and over 30 years' professional
experience with executive management responsibilities in the Consumer Products, Telecommunications and Financial sectors. He
began his professional career in 1984 at Unilever as a Management Trainee and later as a Product Manager and Market Manager.
From 1989 to 1992, he worked at Citibank Portugal as a Business Manager in the Venture Capital area, where he was responsible
for Corporate Finance and a member of the Management Committee. Between 1992 and 2000, in the financial area of the José de
Mello group, he was a director in various companies and, among others, General Director of Companhia de Seguros Império.
Between 2001 and 2009, he worked in the telecommunications area of the SGC group, as a director of SGC Comunicações,
responsible for International Business Development. He was a non-executive director of Semapa until 27 May 2022. He is a
director, among others, of Zoom Investment. He was a director of The Navigator Company from 2015 to 17 May 2023.
20. Regular and significant family, professional or business relationships of the members, as applicable,
of the Board of Directors, General and Supervisory BSoard and Executive Committee with
shareholders with qualified holdings exceeding 2% of voting rights.
Among the members of the Company's Board of Directors, during the year under review, Directors Ricardo Miguel dos Santos
Pacheco Pires, Vítor Paulo Paranhos Pereira were also Directors of the shareholder Semapa, while Hugo Alexandre Lopes Pinto and
Maria Isabel da Silva Marques Abranches Viegas were managers at Semapa.
2023 Annual Report • Corporate Governance 607
21. Organisational or functional charts showing the division of powers between the different corporate
boards, committees and/or company divisions, including information on delegated powers, in
particular with regard to delegation of the daily management of the Company.
Organisational chart of committees within the Company
* Changes with effect from July 2023:
- The Appointments and Appraisals Commission has been renamed the Talent Commission
- The Ethics Commission has been renamed the Ethics and Integrity Commission
- Extinction of the Asset Risk Analysis and Monitoring Commission
- Creation of the Risk Management Commission
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2023 Annual Report • Corporate Governance 609
EXECUTIVE COMMITTEE
Between 1 January and 17 May 2023, the Executive Committee (which, according to the Articles of Association, can have between
three and nine members) was made up of six members, who shared the following list of responsibilities:
António José Pereira Redondo
- Communication and Brand Management
- Risk Management Department
- Talent Management and Organisational Development Department
Adriano Augusto da Silva Silveira
- Environmental Management
- Aveiro Industrial Department
- Figueira da Foz Industrial Department
- Setúbal Industrial Department
- Central Technical Department
João Paulo Araújo Oliveira
- Logistics Management
- Marketing Management
- Revenue Management Department
- Supply Chain Management
- Technical Product Management
- Paper Sales Manager Europe
- International Paper Sales Manager
João Paulo Cabete Gonçalves Lé
- Wood Supply Department
- Forest Management Department
- Portucel Mozambique
- RAIZ - Forest and Paper Research Institute
- Sustainability Department
José Fernando Morais Carreira de Araújo
- Accounting and Remuneration Department
- Management Control Department
- Financial Management
- Tax Department
- Human Resources Department
- Legal, Compliance and Public Affairs
- Information Systems Management
- Digital Transition Direction
- Empremédia - Insurance Brokers
- Investor Relations
Nuno Miguel Moreira de Araújo Santos
- Business Development and New Business Management
- Tissue Commercial Management
- Energy
- Tissue Industrial Management
- Materials Management
2023 Annual Report • Corporate Governance 610
- Supply Chain Tissue
- Sales Management Folder
Between 17 May and 31 December 2023, and following the election of the Governing Bodies at the General Meeting of
17/05/2023, the elected Board of Directors appointed a new Executive Committee with the following composition, which divided
the following list of responsibilities:
António José Pereira Redondo
- Communication and Brand Department
- Risk Management Department
- Talent Management and Organisational Development Department
José Fernando Morais Carreira de Araújo
- Accounting and Remuneration Department
- Management Control Department
- Empremédia - Insurance Brokers
- Finance Department
- Legal, Compliance and Public Affairs Department
- Materials Management Department
- Human Resources Department
- Investor Relations
Nuno Miguel Moreira de Araújo Santos
- Environment and Energy Department
- Business Development and New Business Department
- Business Intelligence Tissue
- Tissue Sales Department
- Tissue Operations Department
- RAIZ - Forest and Paper Research Institute
- Pulp Sales Department
João Paulo Araújo Oliveira (*) and, with effect from 1 August 2023,
António Quirino Soares
- Logistics Department
- Marketing Department
- Revenue Management
- Supply Chain Department
- Technical Product Management
- Paper Sales Europe
- International Paper Sales Department
- Packaging Project
- E-Commerce
- Moulded Pulp Project
João Paulo Cabete Gonçalves Lé
- Wood Supply Department
- Forestry Business Intelligence
- Forest Management Department
- Portucel Moçambique
- Forestry Project
2023 Annual Report • Corporate Governance 611
- Sustainability Department
- Cinegetics Gavião
Dorival Martins de Almeida
- Aveiro Industrial Directorate
- Figueira da Foz Industrial Directorate
- Setúbal Industrial Directorate
- Projects Department
- Security and Support Systems Department
- Digital Technology Department
(*) João Paulo Oliveira resigned as a Director and António Quirino Soares was appointed by co-option, with effect from 1 August
2023.
The powers delegated to the Executive Committee are as follows:
a) To propose to the Board of Directors the Company's policies, objectives and strategies;
b) To propose operating budgets and medium and long-term investment and development plans to the Board of Directors,
and to implement them once approved;
c) Approving budget changes during the year, including transfers between cost centres, provided that they do not exceed
twenty million euros in any one year;
d) Approve contracts for the purchase of goods or services, the total value of which does not exceed twenty million euros
per year;
e) Approve financing contracts, request bank guarantees, or take on any other responsibilities that represent an increase in
indebtedness, with an overall value of less than twenty million euros each year;
f) Acquire, dispose of or encumber fixed assets of the Company up to an individual value of five per cent of the paid-up
share capital;
g) To take or lease any immovable property;
h) To represent the Company in or out of court, actively or passively, as well as to propose and pursue any legal or arbitration
actions, to confess and withdraw from them, to compromise;
i) Acquire, dispose of or encumber shares in other companies up to a maximum of twenty million euros each year;
j) To decide on the acquisition and disposal of own shares, when this has been decided by the General Meeting, and in
compliance with what has been decided by the General Meeting;
k) Manage shareholdings in other companies, in conjunction with the Chairman of the Board of Directors, namely by
appointing, with the latter's agreement, representatives on the respective governing bodies, and defining guidelines for
the actions of these representatives;
l) Concluding, amending and terminating employment contracts;
m) Opening, operating and closing bank accounts;
2023 Annual Report • Corporate Governance 612
n) Appointing agents for the Company;
o) In general, all powers that may be delegated by law, subject to any limitations resulting from the provisions of the
preceding paragraphs.
Together with the Chairman of the Board of Directors, the Executive Committee may also decide on the matters referred to in
paragraphs c), d), e) and i) above, when the respective amounts, calculated in accordance with the terms referred to therein,
exceed twenty million euros, but do not exceed fifty million euros.
The Chairman of the Board of Directors has the powers attributed to him by law and the Articles of Association. The power to
amend any conditions of contracts previously entered into and covered by the aforementioned points c), d), e) and i) shall lie with
the body or bodies that would have had the power to enter into them.
The Executive Committee may discuss all matters within the remit of the Board of Directors, although it may only decide on
matters delegated to it.
The Regulations of the Executive Committee, approved by the Board of Directors, also establish the rules governing the actions of
executive directors.
Resolutions regarding the definition of the Company's strategy, as well as its general policies and the Navigator Group's corporate
structure, are a matter for the Board of Directors, and the Executive Committee has no delegated powers in this regard. The non-
executive directors are therefore involved in defining the strategy, main policies, corporate structure and decisions that should be
considered strategic by virtue of their amount or risk, as well as assessing their fulfilment.
Company management is centred on coordination between the Board of Directors and the Executive Committee. Coordination and
rapprochement have been ensured by the close co-operation developed by the Chairman of the Board of Directors, Ricardo Pires,
with the executive team, by the availability of the members of the Executive Committee to regularly pass on all relevant or urgent
information, or that is requested, relating to the day-to-day management of the Company to the non-executive members of the
Board of Directors, in order to allow permanent monitoring of Company life, and by convening meetings of the Board of Directors
for all strategic decisions or those considered especially relevant, even if these fall within the scope of the general powers
delegated, and also by the presence of the Chairman of the Board of Directors at some meetings of the Company's Executive
Committee.
Also with regard to the other members of the governing bodies, the information requested is provided by the members of the
Executive Committee in a timely and appropriate manner.
In order to ensure regular transmission of information, the notices convening meetings and the minutes of these meetings are
available for consultation by the Supervisory Board. The Company's other committees and governing bodies also ensure the inter-
organisational flow of information and documentation necessary for the exercise of the legal and statutory powers of each of the
other bodies and committees in a timely and appropriate manner, under the terms of their respective operating regulations and in
accordance with the law and the articles of association.
With regard to strategic planning and investment policy, and without prejudice to the portfolio to which reference is made, it
should be clarified that this is by nature an area in which the non-executive members have a greater say and that the Chairman of
the Board of Directors has been significantly involved. The non-executive directors are therefore involved in defining the strategy,
main policies, corporate structure and decisions that should be considered strategic, due to their amount or risk, as well as
assessing their fulfilment.
The Company has internal regulations for the Board of Directors and Supervisory Board, as well as for the internal committees
identified below, which contain rules of operation, competence and coordination between the various bodies and committees.
2023 Annual Report • Corporate Governance 613
Under the terms of these regulations and other applicable rules, the aforementioned governing bodies and other Company
committees draw up full minutes of their meetings.
The corporate bodies and internal committees identified above are obliged, under the terms of their respective internal operating
regulations, to make available to each other, under the terms required by law and the articles of association, all the information
and documentation necessary for the exercise of the legal and statutory powers of each of the other bodies and committees, and
the various departments and services of the Company must collaborate in the production, processing and dissemination of this
information, in an appropriate, rigorous and timely manner.
The regulations of the Board of Directors and the Supervisory Board also establish, in particular, mechanisms that guarantee,
within the limits of the applicable legislation and regulations, their members' access to all the information necessary to assess the
Company's performance, situation and development prospects, including, in particular, minutes, supporting documentation for
decisions taken, convening notices and archives of meetings of the other governing bodies, without prejudice to access to any
other documents or persons from whom clarification may be requested.
It should be noted that the internal regulations of the Board of Directors and the Supervisory Board were revised in 2024,
following the revision in 2023 of the 2018 IPCG Corporate Governance Code.
With regard to sustainability, it is important to mention the competences of the Sustainability Department - which, together swith
the Company's different departments and the Sustainability Forum, forms various working groups to deal with specific issues -
which has carried out its activity under the supervision of the Executive Committee and involving all the Group's companies across
the board. As a result of this activity, each year the Company produces its "Annual Report" which, from a consolidated perspective
and in response to the legal requirements introduced by Decree-Law 89/2017 of 28 July, provides a detailed analysis of the
Company's approach and commitment to sustainability issues. In this way, and through the observance and realisation of the
aforementioned strategic principles, and in the terms further developed in the aforementioned Report, the Company ensures long-
term success, with a significant contribution to the community in general.
Navigator has a 2030 Responsible Management Agenda, anchored in the concept of "Creating Value with Responsibility" (Chap.
6.2.4), in line with the United Nations 2030 Agenda (Chap. 6.2.5). This was defined with the aim of increasing the Company's
positive contribution in the long term - towards 2030 - and is organised around two strategic axes of action, which reflect the two
dimensions of its purpose, People and Planet (Chap. 2).
It is supported by a 2030 Roadmap, comprising a set of 21 commitments (Chap.6.2.4), structured according to 15 material topics,
as a result of the dual materiality analysis carried out in 2022 (Chap.6.2.3).
The 2030 Agenda and Roadmap aim to maximise performance, contributing to business resilience, corporate reputation and
image, creating the conditions for sustainability to become a strategic competitive advantage, while creating value for its different
stakeholders (Chap. 5).
Underpinning the various positive impacts generated by Navigator, which are intended to be maximised through its strategy and
business model, are sustainable forest management and the development of forest-based products and solutions. In fact, these
contribute to a circular, low-carbon bioeconomy, to the valorisation of the entire forestry value chain, as well as to the
development of the rural economy and the promotion of employability and qualifications. We should also highlight the fact that we
are the Company with the greatest contribution to National Value Added, directly impacting the country's economy and its wealth
generation.
Navigator has defined a set of policies and codes (Chap. 6.2.1), among other structuring documents, as well as actions to support
the achievement of its goals and targets and materialise its approach to each material issue. All of Navigator's material topics
have associated commitments and objectives, action plans and KPIs, the vast majority of which are supported by policies and
codes.
2023 Annual Report • Corporate Governance 614
It should be emphasised that the 2030 Responsible Management Agenda is divided into two dimensions - People and Planet - and
that the sustainability report details the management approach followed by the Company, the actions undertaken in each
reporting year and the performance achieved - in line with the goals and targets set out in the 2030 Roadmap (Chapter 6 and
respective sub-chapters of the Management Report).
The sustainability report has been prepared in accordance with the Global Reporting Initiative Standards (Chap. 10.2.3) since
2006/2007, and Navigator has set up processes to collect, process and analyse sustainability information, with special emphasis
on the data supporting the 2030 Roadmap (Chap. 6.2.4), but not limited to them (i.e. the information reported is broader than
the KPIs defined within the scope of the Roadmap, covering a diversified set of indicators, in line with the material topics defined).
Navigator has a sustainability governance structure supported by various corporate bodies and committees with well-defined
functions. External stakeholders are also involved in some of these bodies, which support the Organisation in analysing its
performance, identifying risks and making recommendations, among other things (Chap. 6.2.1).
The Executive Committee delegates management of the 2030 Roadmap to the heads of the Company's different departments, and
there is a team of sustainability key users who monitor the action plans set out therein. These departments and key users, with
the guidance and support of the Sustainability Department, assess Navigator's performance against the goals set. All proposals for
changes to the 2030 Roadmap arising from this process are submitted by the Sustainability Department to the Executive Board
for appraisal and approval, and are subsequently made public in the Annual Report.
Risk assessment (Chap. 3.3) is also supported by its own governance structure and duly defined processes, aligned with the IIA -
Institute of Internal Auditors' 3-Line Model. It involves the Sustainability Department and addresses sustainability-related risks.
It should be noted that data related to sustainability can be consulted in context throughout Chapter 6 of the Management Report,
and a compilation of the main performance indicators is also available in Chapter 9 and the respective details and methodological
notes in the GRI Table (Chapter 10.2.3).
[Recommendation VII.8.] Navigator, as an industrial group that produces pulp, paper, tissue and sustainable packaging solutions,
manages forestry assets and produces renewable electricity, has climate change at the centre of its concerns and therefore has a
governance structure supported by various bodies with well-defined functions with regard to sustainability management, including
climate-related impacts (Chap.6.2.1). It should be noted that within the scope of the remuneration policy, monetary incentives
are established for EC members, promoting the management of climate-related issues. These incentives are dependent on
Navigator's environmental performance, in order to achieve the targets and objectives set.
The 2030 Roadmap (Chap. 6.2.4) expresses a commitment to invest in low carbon solutions towards carbon neutrality, supported
by a set of objectives and targets aimed at reducing GHG emissions and increasing renewable energy in total primary energy
consumption. It should be noted that since 2019, Navigator has voluntarily adopted a roadmap for carbon neutrality, which
reflects the ambition to decarbonise industrial complexes in Portugal by 2035 (EU ETS emissions). The commitment to reducing
CO2 emissions was extended by joining the Science Based Targets initiative (SBTi) and approving the targets submitted in 2022
(Chap. 6.2.1).
The positive contribution to combating climate change and its effects is also expressed in other Roadmap commitments associated
with promoting the forest-based circular bioeconomy, with an impact on the value chain - e.g. sustainable forest management and
the development of bioproducts. Also noteworthy is the importance of promoting efficiency in the use of energy, water and
materials, as well as the reduction and recovery of waste.
With regard to climate risks (and opportunities), Navigator has been implementing the recommendations of the Task Force on
Climate-related Financial Disclosures (TCFD) since 2022. The aim is to be able to integrate these recommendations into the
strategy and processes for managing corporate risks and opportunities, as well as assessing the potential financial and strategic
implications of climate change and developing appropriate responses (Chap. 10.6).
2023 Annual Report • Corporate Governance 615
b) OPERATION
22. Existence of rules of procedure for the Board of Directors, the General and Supervisory Board and the
Executive Committee, as the case may be, and place where these may be consulted.
The internal rules of procedure for Navigator's Board of Directors are published on the Company's website, in the Investors area,
in relation to Corporate Governance, and are freely available for consultation at
www.thenavigatorcompany.com/Investidores/Governo-da-Sociedade.
The Regulations of the Board of Directors provide for the exercise of its powers, chairmanship, frequency of meetings, operation
and the duties of its members.
In accordance with these Regulations, within the limits of the applicable legislation:
a) The members of the Board of Directors shall be guaranteed access at all times to all the information necessary to assess the
Company's performance, situation and development prospects, including, in particular, the minutes, the documentation
supporting the decisions taken, the notices convening meetings and the archives of the meetings of the other governing
bodies, without prejudice to access to any other documents or persons from whom clarification may be requested;
b) The Board of Directors must make available to the other governing bodies and committees, in a timely and appropriate
manner, under the terms required by law and the articles of association, the inter-organisational flow of information and
documentation necessary for the exercise of the legal and statutory powers of each of the other bodies and committees;
c) Non-executive directors must participate in the definition by the management body of the strategy, main policies, corporate
structure and decisions that should be considered strategic for the Company due to their amount, risk or special
characteristics, as well as in the assessment of their fulfilment.
Directors who are members of the Executive Committee may not carry out executive management duties in entities outside the
Company's corporate group, unless the activity of these entities is considered ancillary or complementary to the Group's activity
or does not involve a significant amount of time.
Directors who are not members of the Executive Committee may carry out management duties (executive or otherwise) in entities
outside the Company's Group, provided that they do not involve companies that carry out activities in competition with those of
the Company, or companies directly or indirectly in which it has a stake, and they must inform the Chairman of the Board of
Directors prior to commencing such duties.
The following powers cannot be delegated generically:
(a) the definition of the Company's strategy and main policies, without prejudice to the Board of Directors being able to delegate
to the Executive Committee the preparation, for approval by the Board of Directors, of the proposed strategic plan and
investment policy;
(b) The organisation and coordination of the Company's corporate structure; and
(c) Matters that are, at any given time, considered strategic due to their amount, risk or special characteristics.
The Board of Directors shall assess its performance annually, as well as the performance of the Executive Committee and other
Committees and of the Managing Directors, if any, taking into account the fulfilment of the Company's strategic plan and budget,
risk management, its internal functioning and the contribution of each member to this end, and the functioning between the
Company's bodies and committees, identifying possibilities for improving this performance.
2023 Annual Report • Corporate Governance 616
23. Number of meetings held and rate of meeting attendance of each member of the Board of Directors,
General and Supervisory Board and Executive Committee, as applicable.
During the 2023 financial year, the Board of Directors held eight meetings, the minutes of which were drawn up. All the members
of the Board of Directors attended the eight meetings, corresponding to 100 per cent attendance.
In accordance with the Regulations of the Board of Directors, detailed minutes of the respective meetings are drawn up.
The number of Board meetings held is freely available for consultation on the Company's website at
www.thenavigatorcompany.com/Investidores/Governo-da-Sociedade.
24. Indication of the company bodies empowered to assess the performance of executive directors.
The Remuneration Committee draws up the Remuneration Policy, which defines how the system works, and prepares the entire
framework for the assessment of executive directors. The performance appraisal of each executive director follows an internal
process structured under the leadership of the person in charge (i.e. under the responsibility of the person who chairs the team, in
the case of the members of the Executive Committee, and under the responsibility of the Chairman of the Board of Directors, in
the case of the Chairman of the Executive Committee) and in which the non-executive directors that the person in charge sees fit
to involve also take part.
Also involved in this process is the Appointments and Appraisals Committee, currently made up of three non-executive members
of the Board of Directors, which is responsible for monitoring the performance appraisal system of the executive management and
the awarding of remuneration by the Company and for giving its opinion on the proposals for individual performance appraisals of
the executive management, which makes it unnecessary for the Board of Directors itself to be involved in the performance
appraisal of the executive directors.
Lastly, the Remuneration Committee is responsible for confirming the respective achievement factors in the performance appraisal
and ensuring the overall coherence of the process by setting the variable remuneration.
Thus, in 2023 and for the 2022 financial year, the Appointments and Assessments Committee met and gave its opinion on the
individual performance proposals of the members of the Executive Committee, Adriano Augusto da Silva Silveira, João Paulo
Araújo Oliveira, João Paulo Cabete Gonçalves Lé, José Fernando Morais Carreira Araújo and Nuno Miguel Moreira Araújo Santos,
issued by the respective Chairman. José Fernando Morais Carreira de Araújo and Nuno Miguel Moreira de Araújo Santos, issued by
the respective Chairman, and António José Pereira Redondo, issued by the Chairman of the Board of Directors, communicating his
opinion to the Remuneration Committee. These evaluation proposals were based on the application of the basic criteria for
evaluating the performance of executive directors in force at Navigator and further described in point 25.
For its part, and under the terms of the Regulations of the Board of Directors and the Regulations of the Remuneration
Committee, the Board of Directors, accompanied by the Remuneration Committee, must annually assess its performance, as well
as the performance of its committees, including the Executive Committee, taking into account compliance with the Company's
strategic plan and budget, risk management, its internal functioning and the contribution of each member to this effect, and the
relationship between the Company's bodies and committees. Under the terms of the respective regulations, the Appointments and
Assessment Committee monitors the overall assessment of the Board of Directors' performance.
The assessment of the executive directors, as well as the self-assessment of the Board of Directors and its committees, took place
in 2023, in relation to 2022 performance, and will take place in 2024, in relation to 2023, under the terms described above.
25. Predetermined criteria for assessing the performance of executive directors.
The basic criteria for assessing the performance of executive directors in force in 2023-2025 are those defined in point 2.2 of
chapter 2 of the Remuneration Policy for defining the variable component of remuneration. These criteria are materialised through
a system of quantitative and qualitative KPIs related to the performance of the Company and the director in question. The general
2023 Annual Report • Corporate Governance 617
business indicators include EBITDA (with a weighting of 35%), net profits (with a weighting of 10%), cash flow (with a weighting
of 10%) and Total Shareholder Return vs. Peers (with a weighting of 10%), and the behavioural competences include the
alignment of each Director with the long-term interests and sustainability of the Company.
In addition to these criteria, in line with the commitments made by the Company in its sustainability strategy and recognising the
importance of efficient energy use and the need to reduce fossil CO
2
emissions from economic activities, the implementation of
the corporate energy efficiency programme approved in 2016 is also taken into account. Therefore, the specific objectives will
always include ESG indicators, such as the result of the Company's annual climate study, the reduction of CO
2
emissions, certified
wood and the consumption of water, energy and wood.
26. Availability of each of the members of the Board of Directors, the General and Supervisory Board and
the Executive Committee, as the case may be, indicating office held simultaneously in other
companies, inside and outside the Group, and other relevant activities carried out by the members of
these bodies during the period.
The members of the Board of Directors have adequate availability to carry out their duties. In fact, the other activities carried out
by the directors in the course of the financial year, outside the economic group of which Navigator is a part, do not constitute an
obstacle to the availability required to carry out their duties in the Navigator Group.
In addition to the activities mentioned in point 19, the members of the Board of Directors hold the following corporate positions:
Ricardo Miguel dos Santos Pacheco Pires
Positions held in Navigator Group companies
Chairman of the Board of Directors of The Navigator Company, S.A.
Positions held in other companies/entities
Chairman of the Board of Directors of Aphelion, S.A.
Member of the Board of Directors of Cimo - Gestão de Participações, SGPS, S.A.
Chairman of the Board of Directors of Etsa - Investimentos, SGPS, S.A.
Member of the Board of Directors of Pyrus Agricultural LLC
Member of the Board of Directors of Pyrus Investments LLC
Member of the Board of Directors of Pyrus Real Estate LLC
Chairman of the Board of Directors of Secil - Companhia Geral de Cal e Cimento, S.A.
Member of the Board of Directors and member of the Executive Committee of Semapa - Sociedade de Investimento e
Gestão, SGPS, S.A.
Member of the Board of Directors of Semapa Inversiones, S.L.
Member of the Board of Directors of Semapa Next, S.A.
Member of the Board of Directors of Sodim, SGPS, S.A.
Member of the Board of Directors of Upsis, S.A.
António José Pereira Redondo
Positions held in Navigator Group companies
Chairman of the Board of Directors of Bosques Do Atlantico, S.L.
Chairman of the Board of Directors of Enerpulp - Cogeração Energética de Pasta, S.A.
Chairman of the Board of Directors of Eucaliptusland - Sociedade de Gestão de Património Florestal, S.A.
Chairman of the Board of Directors of Navigator Brands, S.A.
Chairman of the Board of Directors of Navigator Forest Portugal, S.A.
Chairman of the Board of Directors of Navigator Green Fuels Figueira da Foz, S.A.
Chairman of the Board of Directors of Navigator Green Fuels Setúbal, S.A.
Chairman of the Board of Directors of Navigator North America, INC.
Chairman of the Board of Directors of Navigator Paper Figueira, S.A.
Manager of Navigator Paper México S. de R.L. de C.V.
2023 Annual Report • Corporate Governance 618
Chairman of the Board of Directors of Navigator Paper Setúbal, S.A.
Chairman of the Board of Directors of Navigator Parques Industriais, S.A.
Chairman of the Board of Directors of Navigator Pulp Aveiro, S.A.
Chairman of the Board of Directors of Navigator Pulp Figueira, S.A.
Chairman of the Board of Directors of Navigator Pulp Setúbal, S.A.
Chairman of the Board of Directors of Navigator Tissue Aveiro, S.A.
Chairman of the Board of Directors of Navigator Tissue Ejea, S.L.
Chairman of the Board of Directors of Navigator Tissue Iberica, S.A.
Chairman of the Board of Directors of Navigator Tissue Ródão, S.A.
Chairman of the Board of RAIZ - Forest and Paper Research Institute
Positions held in other companies/entities
In 2023 he did not hold any positions in other companies/entities.
José Fernando Morais Carreira de Araújo
Director and member of the Executive Committee of The Navigator Company, S.A.
Director of Bosques do Atlantico, S.L.
Director of Empremedia Re Designated Activity Company
Chairman of the Board of Directors of Empremédia - Corretores de Seguros, S.A.
Director of Enerpulp - Cogeração Energética de Pasta, S.A.
Director of Eucaliptusland - Sociedade de Gestão de Património Florestal, S.A.
Director of Navigator Africa, S.R.L.
Manager of Navigator Afrique du Nord, SARLAU
Director of Navigator Brands, S.A.
Director of Navigator Deutschland GMBH
Director of Navigator Egypt (LLC)
Vice-Chairman of the Board of Directors of Navigator Eurasia Kağit Ve Kağit Ürünleri Sanayi Ve Ticaret Anonim Şirketi
Director of Navigator Forest Portugal, S.A.
Managing Director of Navigator France SAS
Director of Navigator Green Fuels Figueira Da Foz, S.A.
Director of Navigator Green Fuels Setúbal, S.A.
Director of Navigator Italia, S.R.L.
Director of Navigator Middle East Trading DMCC
Director of Navigator Netherlands B.V.
Director of Navigator North America, INC.
Director of Navigator Paper Austria GMBH
Director of Navigator Paper España S.A.
Director of Navigator Paper Figueira, S.A.
Manager of Navigator Paper México S. DE R.L. DE C.V.
Director of Navigator Paper Setúbal, S.A.
Manager of Navigator Paper Southern Africa Proprietary Limited
Director of Navigator Paper UK LTD.
Director of Navigator Parques Industriais, S.A.
Manager of Navigator Poland Paper Spółka Z Ograniczoną Odpowiedzialnością
Director of Navigator Pulp Aveiro, S.A.
Director of Navigator Pulp Figueira, S.A.
Director of Navigator Pulp Setúbal, S.A.
Director of Navigator Tissue Aveiro, S.A.
Director of Navigator Tissue Ejea, S.L.
Managing Director of Navigator Tissue France SAS
Director of Navigator Tissue Iberica, S.A.
Director of Navigator Tissue Ródão, S.A.
2023 Annual Report • Corporate Governance 619
Director of Portucel Moçambique - Sociedade de Desenvolvimento Florestal e Industrial, S.A.
Director of Portucel Nigeria Limited
Director of Pulpchem Logistics, ACE
Member of the Board of Raiz - Forest and Paper Research Institute
Positions held in other companies/entities
Vice-Chairman of the Board of the General Meeting of Biond - Associação das bioindústrias de base florestal,
representing Navigator Paper Figueira, S.A.
Member of the Board of AFP - Portuguese Tax Association
Member of the Audit Board of the Portuguese Institute of Statutory Auditors
Nuno Miguel Moreira de Araújo Santos
Positions held in Navigator Group companies
Director and member of the Executive Committee of The Navigator Company, S.A.
Director of Bosques do Atlantico, S.L.
Director of Enerpulp - Cogeração Energética de Pasta, S.A.
Director of Eucaliptusland - Sociedade de Gestão de Património Florestal, S.A.
Chairman of the Board of Directors of Navigator Africa, S.R.L.
Director of Navigator Brands, S.A.
Director of Navigator Forest Portugal, S.A.
Director of Navigator Green Fuels Figueira da Foz, S.A.
Director of Navigator Green Fuels Setúbal, S.A.
Director of Navigator North America, INC.
Director of Navigator Paper Figueira, S.A.
Director of Navigator Paper Setúbal, S.A.
Director of Navigator Parques Industriais, S.A.
Director of Navigator Pulp Aveiro, S.A.
Director of Navigator Pulp Figueira, S.A.
Director of Navigator Pulp Setúbal, S.A.
Director of Navigator Tissue Aveiro, S.A.
Director of Navigator Tissue Ejea, S.L.
Chairman of the Board of Directors of Navigator Tissue France SAS
Director of Navigator Tissue Iberica, S.A.
Director of Navigator Tissue Ródão, S.A.
Chairman of the Board of Pulpchem Logistics, ACE
Member of the Board of Raiz - Forest and Paper Research Institute
Positions held in other companies/entities
Member of the General Council of Biond - Associação das bioindústrias de base florestal, representing Navigator Tissue
Ródão, S.A.
João Paulo Cabete Gonçalves Lé
Positions held in Navigator Group companies
Director and member of the Executive Committee of The Navigator Company, S.A.
Director of Bosques do Atlantico, S.L.
Director of Enerpulp - Cogeração Energética de Pasta, S.A.
Director of Eucaliptusland - Sociedade de Gestão de Património Florestal, S.A.
Director of Navigator Abastecimento de Madeira, ACE
Director of Navigator Africa, S.R.L.
Director of Navigator Brands, S.A.
2023 Annual Report • Corporate Governance 620
Chairman of the Board of Directors of Navigator Forest Portugal, S.A.
85
Director of Navigator Forest Portugal, S.A.
Director of Navigator Green Fuels Figueira da Foz, S.A.
Director of Navigator Green Fuels Setúbal, S.A.
Director of Navigator North America, INC.
Director of Navigator Paper Figueira, S.A.
Director of Navigator Paper Setúbal, S.A.
Director of Navigator Parques Industriais, S.A.
Director of Navigator Pulp Aveiro, S.A.
Director of Navigator Pulp Figueira, S.A
Director of Navigator Pulp Setúbal, S.A.
Director of Navigator Tissue Aveiro, S.A.
Director of Navigator Tissue Ejea, S.L.
Director of Navigator Tissue Iberica, S.A.
Director of Navigator Tissue Ródão, S.A.
Chairman of the Board of Directors of Portucel Moçambique - Sociedade de Desenvolvimento Florestal e Industrial, S.A.
Chairman of the Board of RAIZ - Forest and Paper Research Institute
86
Member of the Board of RAIZ - Forest and Paper Research Institute
Chairman of the Board of Directors of Sociedade de Vinhos da Herdade de Espirra - Produção e Comercialização de
Vinhos, S.A.
Chairman of the Board of Directors of Viveiros Aliança - Empresa Produtora de Plantas, S.A.
Positions held in other companies/entities
Member of the General Council of Biond - Associação das bioindústrias de base florestal, representing Navigator Forest
Portugal, S.A.
Dorival Martins de Almeida
Positions held in Navigator Group companies
Director and member of the Executive Committee of The Navigator Company, S.A.
Director of Bosques do Atlantico, S.L. - 02-11-2023
Director of EMA Figueira da Foz - Engenharia e Manutenção Industrial, ACE
Director of Enerpulp - Cogeração Energética de Pasta, S.A.
Director of Eucaliptusland - Sociedade de Gestão de Património Florestal, S.A.
Director of Navigator Abastecimento de Madeira, ACE
87
Director of Navigator Brands, S.A.
Director of Navigator Forest Portugal, S.A.
Director of Navigator Green Fuels Figueira da Foz, S.A.
Director of Navigator Green Fuels Setúbal, S.A.
Director of Navigator North America, INC.
Director of Navigator Paper Figueira, S.A.
Director of Navigator Paper Setúbal, S.A.
Director of Navigator Parques Industriais, S.A.
Director of Navigator Pulp Aveiro, S.A.
Director of Navigator Pulp Figueira, S.A.
Director of Navigator Pulp Setúbal, S.A.
Director of Navigator Tissue Aveiro, S.A.
85
Until 1 September 2023.
86
Until 15 June 2023.
87
Until 1 August 2023.
2023 Annual Report • Corporate Governance 621
Director of Navigator Tissue Ejea, S.L.
Director of Navigator Tissue Iberica, S.A.
Director of Navigator Tissue Ródão, S.A.
Director of Raiz - Forest and Paper Research Institute
Positions held in other companies/entities
In 2023, he did not hold any positions in other companies/entities.
António Quirino Vaz Duarte Soares
Positions held in Navigator Group companies
Director and Member of the Executive Committee of The Navigator Company, S.A.
Director of Bosques do Atlantico, S.L.
Director of Enerpulp - Cogeração Energética de Pasta, S.A.
Director of Eucaliptusland - Sociedade de Gestão de Património Florestal, S.A.
Director of Navigator Brands, S.A.
Chairman of the Board of Directors of Navigator Eurasia Kağit Ve Kağit Ürünleri Sanayi Ve Ticaret Anonim Şirketi
Chairman of the Board of Directors of Navigator Fiber Solutions, S.A.
Director of Navigator Forest Portugal, S.A.
Chairman of the Board of Directors of Navigator France SAS
Director of Navigator Green Fuels Figueira da Foz, S.A.
Director of Navigator Green Fuels Setúbal, S.A.
Chairman of the Board of Directors of Navigator Netherlands B.V.
Director of Navigator North America, Inc.
Director of Navigator Paper Austria GMBH
Chairman of the Board of Directors of Navigator Paper España S.A.
Director of Navigator Paper Figueira, S.A.
Director of Navigator Paper Setúbal, S.A.
Director of Navigator Paper UK Ltd.
Director of Navigator Parques Industriais, S.A.
Chairman of the Management Board of Navigator Poland Paper Spółka Z Ograniczoną Odpowiedzialnością
Director of Navigator Pulp Aveiro, S.A.
Director of Navigator Pulp Figueira, S.A.
Director of Navigator Pulp Setúbal, S.A.
Director of Navigator Tissue Aveiro, S.A.
Director of Navigator Tissue Ejea, S.L.
Director of Navigator Tissue Iberica, S.A.
Director of Navigator Tissue Ródão, S.A.
Director of Portucel Nigeria Limited
Member of the Board of RAIZ - Forest and Paper Research Institute
Positions held in other companies/entities
In 2023, he did not hold any positions in other companies/entities.
Ana Teresa Cunha de Pinho Tavares Lehmann
Positions held in Navigator Group companies
Director of The Navigator Company, S.A.
Positions held in other companies/entities
Director of TAP - Transportes Aéreos Portugueses, S.A.
Director of TAP - Transportes Aéreos Portugueses, SGPS, S.A.
Chairman of the Finance, Audit and Risk Committee of TAP Transportes Aéreos Portugueses, S.A.
Chairman of the Finance, Audit and Risk Committee of TAP Transportes Aéreos Portugueses, SGPS, S.A.
Chairman of the Board of Directors of Zolve - Logística e Transporte, S.A.
Chairman of the General Council of the Fund for Internationalisation Funds
2023 Annual Report • Corporate Governance 622
Member of the Advisory Board of the Orkestra-Basque Competitiveness Institute
Member of the Advisory Board of the University of Fribourg Competitiveness Institute
Member of the Advisory Board of Vibe Capital Partners
Member of the Strategic Council for the Digital Economy (CIP)
Hugo Alexandre Lopes Pinto
Positions held in Navigator Group companies
Director of The Navigator Company, S.A.
Positions held in other companies/entities
Director of Quotidian Podium, S.A.
Member of the Talent Commission at The Navigator Company, S.A.
Director of Secil – Companhia Geral de Cal e Cimentos, S.A.
Director of Semapa Next, S.A.
Director of ETSA – Investimentos, SGPS, S.A.
Member of the Executive Diretors Commission at Semapa – Soc. de Investimento e Gestão, SGPS, S.A.
Member of the RemunerationCommission at Sonagi, SGPS, S.A.
Member of the Audit Board at Fundação Nossa Senhora do Bom Sucesso
Director of Capital Hotels – Soc. De Investimentos e Gestão, S.A.
Director of Hotel Ritz, S.A.
Maria Isabel da Silva Marques Abranches Viegas
Positions held in Navigator Group companies
Director of The Navigator Company, S.A.
Positions held in other companies/entities
Chief People Officer at Semapa (Member of the Executive Diretors Commission)
Member of the Talent Commission at Semapa
Non executive director at Secil
Member of the Remuneration Commission at Secil
Director at Semapa Next
Member of the Remuneration Commission at Semapa Next
Member of the Remuneration Commission at ETSA Investimentos
Director at Quotidian Podium
Member of the Remuneration Commission at SONAGI
Maria Teresa Aliu Presas
Positions held in Navigator Group companies
Member of the Board of Directors of The Navigator Company, S.A.
Positions held in other companies/entities
Non-executive director at the World Bioeconomy Forum.
Senior consultant at the Magellan Association.
Mariana Rita Antunes Marques dos Santos
Positions held in Navigator Group companies
Member of the Board of Directors of The Navigator Company, S.A.
Positions held in other companies/entities
Member of the board of FAE - Forum of Business Administrators and Managers.
Sandra Maria Soares Santos
Positions held in Navigator Group companies
Member of the Board of Directors of The Navigator Company, S.A.
2023 Annual Report • Corporate Governance 623
Positions held in other companies/entities
Member of the Board of Directors of BA Glass I - Serviços de Gestão e Investimentos, S.A.
Member of the Board of Directors of BPI - Banco Português de Investimento
Member of the Audit Committee and Chairman of BPI's Appointments, Appraisals and Remuneration Committee
Vítor Paulo Paranhos Pereira
Positions held in Navigator Group companies
Member of the Board of Directors of The Navigator Company, S.A.
Positions held in other companies/entities
Member of the Board of Directors of Aphelion, S.A.
Member of the Board of Directors of Antasobral - Sociedade Agropecuária, S.A.
Member of the Board of Directors of Capital Hotels - Sociedade de Investimentos e Gestão, S.A.
Member of the Board of Directors of Cimo - Gestão de Participações, SGPS, S.A.
Chairman of the Board of Directors of Galerias Ritz, S.A.
Member of the Board of Directors of Hotel Ritz, S.A.
Chairman of the Board of Directors of Parque Ritz, S.A.
Member of the Board of Directors of Secil - Companhia Geral de Cal e Cimento, S.A.
Chairman of the Board of Directors of Semapa Inversiones, S.L.
Member of the Board of Directors and member of the Executive Committee of Semapa - Sociedade de Investimento e
Gestão, SGPS, S.A.
Member of the Board of Directors of Sodim, SGPS, S.A.
Manager of Sociedade Agrícola da Herdade dos Fidalgos, Unip., Lda
Chairman of the Board of Directors of Sonagi, SGPS, S.A.
Chairman of the Board of Directors of Sonagi - Imobiliária, S.A.
Chairman of the General Meeting of the Hotel Association of Portugal
c) Committees belonging to the management or supervisory bodies and managing directors
27. Identification of committees set up by the Board of Directors, the General and Supervisory Board and
the Executive Committee, as the case may be, and place where the rules of procedure may be
consulted.
The Board of Directors includes the following commissions:
(i) Executive Committee
(ii) Corporate Governance Committee
(iii) Talent Committee
(iv) Environmental Council
(v ) Sustainability Forum
(vi ) Ethics and Integrity Committee
(vii) Risk Management Committee
(viii) Asset Risk Analysis and Monitoring Committee (until June 2023)
The Operating Regulations of the Internal Committees provide for the exercise of their respective powers, chairmanship,
frequency of meetings, operation and the duties of their members. Detailed minutes of the respective meetings are drawn up and
can be consulted on the Company's website at www.thenavigatorcompany.com/ Investors/Corporate-Governance.
The composition and number of annual meetings of the Internal Committees are publicised on the Company's website at
www.thenavigatorcompany.com/ Investors/Corporate-Governance.
In accordance with their respective Operating Regulations, the Internal Committees must ensure, in a timely and appropriate
manner, the flow of information, starting with the respective convening notices and minutes, necessary for the exercise of the
legal and statutory competences of each of the other bodies and committees.
2023 Annual Report • Corporate Governance 624
28. Composition, if applicable, of the Executive Committee and/or identification of the Managing
Director(s)
On 31 December 2023, the Executive Committee comprised the following directors:
Chairman:
- António José Pereira Redondo
Members:
- José Fernando Morais Carreira de Araújo
- Nuno Miguel Moreira de Araújo Santos
- João Paulo Cabete Gonçalves Lé
- Dorival Martins de Almeida
- António Quirino Soares
29. Indication of the powers of each of the committees created and summary of the activities carried on
the exercise of these responsibilities.
EXECUTIVE COMMITTEE
The powers of the Executive Committee are listed in point 21 of this report.
The Executive Committee is the Company's executive management body and has developed its competences within the scope of
the delegation of powers entrusted to it by the Board of Directors. This Committee meets regularly and whenever necessary,
depending on the business in progress and monitoring the Company's activity, and met 48 times during the 2023 financial year.
In addition to the members of the Executive Committee, whenever matters so warrant, these meetings are attended by non-
executive directors, directors of Group companies and members of Navigator's various departments.
CORPORATE GOVERNANCE COMMITTEE
The Corporate Governance Committee is made up of four members: Ricardo Miguel dos Santos Pacheco Pires (Chairman), António
José Pereira Redondo, António Pedro Gomes Paula Neto Alves and Rui Tiago Trindade Ramos Gouveia.
The Corporate Governance Committee, in addition to permanently supervising the Company's compliance with the legal,
regulatory and statutory provisions applicable to corporate governance, is responsible for critically analysing the Company's
practices and behaviour in the field of corporate governance, and for taking the initiative to propose the discussion, alteration and
introduction of new procedures aimed at improving corporate structure and governance. The Corporate Governance Committee
must also assess the Company's governance situation on an annual basis and submit any proposals it deems appropriate to the
Board of Directors.
In 2023, in addition to the day-to-day work and communications carried out by telematic means, the Committee held five
meetings, which analysed the following topics:
1. Analysing and commenting on the Corporate Governance Report for 2022.
2. Analysis of the assessment of compliance with the Corporate Governance Code of the Portuguese Institute of Corporate
Governance (IPCG) conducted by the Executive Follow-up and Monitoring Committee (CEAM), with reference to 2022;
3. Comparison analysis of the fulfilment of the recommendations of the IPCG GSB by other listed companies
4. Analysing the amendment to the IPCG Corporate Governance Code from 2023.
5. Presentation of activities to the Supervisory Board.
2023 Annual Report • Corporate Governance 625
TALENT COMMITTEE
The Talent Committee is made up of three to seven members, including a majority of non-executive directors, one of whom will
be chairman, appointed by the Board of Directors for a period of four years, coinciding with the term of office of the Board of
Directors.
In 2023, the Committee had five members: Ricardo Miguel dos Santos Pacheco Pires (Chairman), António José Pereira Redondo,
Hugo Alexandre Lopes Pinto, Maria Isabel da Silva Marques Abranches Viegas and Mariana Rita Antunes Marques dos Santos.
In accordance with its Internal Regulations, the Talent Committee is responsible for monitoring and supporting the appointment of
senior executives of the Company and the Navigator Group, as well as assessing the performance of these executives.
In the performance of its duties, and without prejudice to other competences assigned to it by the Company's Board of Directors,
the Talent Committee is particularly responsible for the corporate bodies:
In terms of appointments:
- Assisting the Board of Directors in identifying and assessing the suitability of the profile, knowledge and curriculum vitae
of members of the governing bodies to be appointed, namely the appointment by co-option to fulfil the duties of a
member of the Company's Board of Directors, as well as the choice of directors to fulfil executive duties;
- Making its terms of reference available and, to the best of its ability, introduce transparent selection processes that
include effective mechanisms for identifying potential candidates, and that those who are most meritorious, best suited
to the requirements of the position and promote appropriate diversity within the organisation, including gender
diversity, are chosen for proposals;
- Whenever deemed appropriate, to be aware of and monitor the selection processes for potential candidates to fulfil
executive management functions in subsidiary companies of the Group, in cases where the Company intends to submit
the respective elective proposal.
In terms of evaluation:
- To monitor the system for assessing management performance and awarding Company remuneration;
- To give its opinion on the proposals for the annual individual performance appraisal of the members of the Executive
Committee, issued by the respective Chairman, and of the latter, issued by the Chairman of the Board of Directors;
- To monitor the overall assessment of the performance of the Board of Directors as a body, taking into account the
fulfilment of the Company's strategic plan and budget, risk management, its internal functioning and the contribution of
each member to this end.
In addition to other duties expressly assigned to it by the Board of Directors, it is the responsibility of the Appointments and
Appraisals Committee, particularly with regard to the other managerial staff:
- To monitor and issue recommendations on the Group's internal talent management policies and procedures;
- Periodically assessing the need for and availability of talent at Group level and recommending the appropriate actions to
ensure the Group's ability to respond to the challenges that arise, namely monitoring and issuing recommendations on
internal policies and procedures relating to selection, hiring, remuneration, ongoing assessment, remuneration and
incentive policies, as well as the succession plan for senior management, and making any recommendations it deems
appropriate in this regard.
The Committee is also responsible for talent management, especially with regard to senior management: (i) monitoring and
issuing recommendations on the Group's internal talent management policies and procedures and (ii) periodically assessing the
need for and availability of talent at Group level and recommending the appropriate actions to ensure the Group's ability to
respond to the challenges that arise.
By virtue of its members and its competences in terms of remuneration, performance assessment and appointments, the
existence of this Committee reflects adherence to Recommendation II.2.5. of the IPCG Corporate Governance Code.
2023 Annual Report • Corporate Governance 626
In line with its competences, in 2023, in addition to its day-to-day work and communications carried out by telematic means, the
Talent Committee held TWO meetings in which the following topics were discussed: (a) performance appraisals for the 2022
financial year; (b) the performance appraisal process for the 2023 financial year; (c) succession plans and (d) the presentation to
the Supervisory Board of proposals for a talent development plan and a succession plan.
ENVIRONMENTAL COUNCIL
Given the specific nature of the Navigator Group's business and the environmental concerns inherent in it, the Board of Directors
set up an Environmental Board, which is responsible for monitoring and issuing opinions on the environmental aspects of the
Company's business and making recommendations on the environmental impact of its main undertakings, taking particular
account of the legal provisions, licensing conditions and the Navigator Group's policy on the matter.
The Environmental Council has four members: Maria da Conceição Cunha (Chairman), Ana Isabel Miranda, Maria Margarida Tomé
and Joaquim Poças Martins, all of whom are independent academic personalities of recognised technical and scientific competence,
particularly in the most important areas of environmental concern in the Navigator Group's current activity.
The Environmental Council has direct contact with the Navigator Group's business community, through meetings held at its
industrial sites, its main forestry plantations and its research institute, RAIZ.
In 2023, two meetings of the Environmental Council were held, at which the following topics were addressed: safety in the Group;
analysis of environmental issues and legal framework; energy situation and impact on Navigator; New Parque Madeiras Line:
operational and environmental performance; NVG Environmental Performance and proposals for 2024; CDP Water: Approach at
NVG; Monitoring communities; PRR, applications under the mobilising agendas and decarbonisation; and PRUA Project: reducing
water use.
SUSTAINABILITY FORUM
Recognising the fundamental role that sustainability plays in the Navigator Group's strategic development, the Navigator
Sustainability Forum was set up in 2015.
The main aim of the Forum is to foster collaboration between the Navigator Group and personalities who are part of its sphere of
activity, from non-governmental organisations to universities, social organisations, Customers and Suppliers.
This is an initiative that seeks to strengthen dialogue with its main stakeholders, promoting debate and active listening on issues
that are relevant to the Company and society.
Generally speaking, the Sustainability Forum meets twice a year: a session dedicated to permanent members and another session
open to various stakeholders. The extended sessions have a central theme, which is debated and discussed in depth, contributing
to the formulation of corporate and strategic policy on matters of social and environmental responsibility, fostering platforms for
understanding and co-operation between the Navigator Group and its main stakeholders.
The Sustainability Forum is made up of internal and external members, and is chaired by the Chairman of the Executive
Committee, António Redondo, with Teresa Presas as Secretary General.
The following are members or internal members: Ana Miranda, António Quirino Soares, Dorival Almeida, João Paulo Cabete
Gonçalves Lé, Joaquim Poças Martins, José Fernando Morais Carreira de Araújo, Margarida Tomé, Maria da Conceição Cunha,
Nuno Miguel Moreira de Araújo dos Santos and Vitor Paranhos Pereira.
The following people are external members of the Sustainability Forum, linked to the activities of the Company's main stakeholder
groups: Cristina Tomé, Filipe Duarte Santos, Francisco Ferreira, Francisco Gomes da Silva, José Júlio Norte, Luís Neves da Silva,
Rosário Alves and Helena Freitas.
2023 Annual Report • Corporate Governance 627
In 2023, two sessions of the Sustainability Forum were held, one internal, attended by permanent members of the Forum,
members of the Board of Directors, managers and staff from various areas of Navigator's activity, and the other external,
attended by a wide range of the Company's stakeholders.
The Forum's internal session took place at the Figueira da Foz Industrial Complex on 26 June and was entitled "Climate and
Nature: Disclosure Challenges", while the external session took place in Santarém on 31 October and was dedicated to the theme
"Sustainability of Forestry Raw Materials".
ETHICS AND INTEGRITY COMMISSION
Following the drafting and approval of the Code of Ethics and Conduct by the Executive Committee in 2010, the Ethics and
Integrity Commission was set up to draw up an annual report on compliance with the rules contained in the Code of Ethics. This
report must explain all irregular situations of which the Committee is aware, as well as the conclusions and follow-up proposals it
has adopted in the various cases analysed.
The Ethics and Integrity Commission is responsible for providing impartial and independent support to the Company's bodies in
publicising and complying with the Code of Ethics in all Navigator Group companies.
The Ethics and Integrity Commission is particularly responsible for carrying out its duties:
a) Check that the Code of Ethics and Conduct is integrated into the Company's usual internal control systems;
b) To analyse the conclusions drawn by the Risk Management Department from any audits it carries out in relation to issues
covered by the Code of Ethics and Conduct;
c) Ensuring the operation of a mechanism for reporting breaches of the Code of Ethics and Conduct, as part of the
Company's whistleblowing mechanism;
d) Assessing and evaluating any situation that arises in relation to compliance with the precepts included in the Code of
Ethics and Conduct in which a member of a corporate body is involved;
e) To submit to the Corporate Governance Committee the adoption of any measures it deems appropriate in this area,
including the review of internal procedures;
f) To submit to the Board of Directors, should it deem it necessary, proposals for amendments to the Company's Code of
Ethics and Conduct;
g) Draw up an annual report on its performance in complying with the rules contained in the Code of Ethics and Conduct in
Navigator Group companies.
In carrying out its duties, the Ethics and Integrity Commission may obtain information and reports from the Compliance Area on
matters and initiatives related to the Code of Ethics and Conduct.
The Ethics and Integrity Commission also acts as an advisory body to the Board of Directors on matters concerning the application
and interpretation of the Code of Ethics and Conduct.
Under the terms of the Whistleblowing Regulations, the Ethics and Integrity Commission is informed whenever a communication
involving a member of the Board of Directors or the Supervisory Board is received.
RISK MANAGEMENT COMMISSION
In July 2023, the Board of Directors set up the Risk Management Commission as part of the implementation of a new risk
management system (ERM NVG) that will allow closer, continuous and integrated monitoring of operations, carrying out real
actions that will help mitigate the risks that exist within the scope of the Group's activities.
2023 Annual Report • Corporate Governance 628
The Commission includes the CEO, the Financial Director, a non-executive Director appointed by the Board of Directors, the Risk
Management Director, the Sustainability Director, the Legal, Compliance and Public Affairs Director and the head of Empremédia -
Insurance Brokers.
The Commission's competences and responsibilities are:
- Supervising the application of the risk policy defined for The Navigator Company Group, including the definition of the risk
appetite and the maximum tolerance levels to be respected;
- Supervising the operationalisation of the Risk Management Model (ERM - Enterprise Risk Management) defined by the
Group, specifically with regard to the inventorying of risks and the selection of the main business risks;
- Anticipating the existence of new exogenous risks, specifically those related to the use of new information technologies
and artificial intelligence mechanisms;
- Monitoring the implementation of the Risk Management Committee's activity plans;
- To take cognisance of the risk management monitoring reports issued by the Risk Management Committee and to
propose the adoption of the necessary or appropriate measures in the light of these reports;
- Contribute to the promotion of a risk culture in The Navigator Company Group.
COMMISSION FOR ANALYSING AND MONITORING ASSET RISKS
Until July 2023, the Company had an Asset Risk Analysis and Monitoring Commission, coordinated by the Directors then
responsible for Finance, Risk and Assets, Fernando Araújo, Adriano Silveira and Dorival Martins de Almeida, and made up of
factory directors Alexandre Vale, Carlos Brás, Carlos Zurrinha Ferreira, Joaquim Belfo and António Estudante de Oliveira, finance
director Manuel Arouca, risk management director Gonçalo Monteiro Duarte and management control director Gonçalo Veloso de
Sousa. It has also been regularly attended by Alexandra Fernandes, Empremédia's operational manager.
This Commission met whenever necessary, and its objectives were to give an opinion on the asset risk prevention systems in
place at the Company, in particular on the measures taken to meet the recommendations resulting from inspections carried out by
reinsurers, as well as to give an opinion on the adequacy, in terms of scope, type of cover and capital, of the insurance taken out
by the Navigator Group; discuss and issue opinions or recommendations on policies, procedures, significant risks, risk limits and
extraordinary situations in terms of asset risk; promote and monitor the maintenance of the inventory of the most significant risks
of an asset nature, in close liaison with the risk governance system in force in the Navigator Group.
In 2023, the Asset Risk Analysis and Monitoring Commission held a meeting, which analysed various topics, including: the status
of the Recommendations as at July 2023, the identification and quantification of claims over the last 10 years (2014-2023), the
evolution of the All Risks Programme 2019-2023, reflection on Navigator's risk retention policy for 2024, capital to be insured in
2024, gross profit insured in 2023 and the estimate for 2024;
In July 2023, the functions of this Committee were transferred to the Risk Management Committee.
III. AUDITING
(Supervisory Board, Audit Committee or General Supervisory Board)
a) COMPOSITION*
* During the reporting period
30. Identification of the supervisory body (Supervisory Board, Audit Committee or General Supervisory
Board) corresponding to the model adopted.
Under the single-tier management model adopted, the Company’s supervisory body is the Supervisory Board and the Statutory
Auditor, in accordance with section b) of no. 1 of article 413 of the Companies Code.
2023 Annual Report • Corporate Governance 629
31. Composition, as applicable, of the Supervisory Board, the Audit Committee, the General and
Supervisory Board or the Committee for Financial Affairs, indicating the minimum and maximum
numbers of members and duration of their term of office, as established in the Articles of Association,
number of full members, date of first appointment and end date of the term of office of each member;
reference may be made to the item in the report where this information is contained in accordance
with paragraph 18.
Under the Articles of Association, the Company’s Supervisory Body includes three full members, one of whom is Chairman, and
one substitute member. The terms of office of the governing bodies last three years, and are renewable.
The present members of the Supervisory Board were appointed for the ongoing term in office, from 2023 to 2025, at the general
meeting held on 17 March 2023, where the members of the corporate bodies of Navigator were elected.
Name
Date of first appointment
and end of term in office
José Manuel Oliveira Vitorino
(Chairman)
2016
88
-2025
Gonçalo Nuno Palha Gaio Picão Caldeira
(Full Member)
2007-2025
Maria da Graça Torres Ferreira da Cunha Gonçalves
(Full Member)
2018-2025
Maria da Luz Gonçalves de Andrade Campos
(Substitute Member)
2023-2025
Ana Isabel Moraes Nobre de Amaral Marques
(Substitute Member)
2017-2022
The Company believes that the number of members of the Supervisory Board is perfectly adequate in view of its size and the
complexity of risks inherent to its activity, efficiently ensuring the duties entrusted to them. This suitability judgment took into
account, in particular, the activities of the Company, the stability of the shareholder structure, as well as the set of diversified skills
and the availability of the members of the Audit Board to carry out their duties, namely, through close collaboration with the
remaining bodies and commissions of the Company and the External Auditor and Statutory Auditor.
32. Identification, as applicable, of the members of the Supervisory Board, the Audit Committee, the
General and Supervisory Board or the Committee for Financial Affairs who are deemed independent, in
accordance with article 414 (5) of the Companies Code; reference may be made to the item in the
report where this information is contained in accordance with item 19.
The members of the Audit Board Jose Manuel Oliveira Vitorino (Chairman) and Maria da Graca Torres Ferreira da Cunha Goncalves
are considered by Navigator to be independent, in the light of the criteria laid down in Article 414 no. 5 of the Companies Code, with
the former serving his third term in office and the latter her second.
88
Foi Vogal suplente de 2015 a 2016. Integrou o Conselho Fiscal como Vogal efetivo, em 2016, e como Presidente, desde 2018.
2023 Annual Report • Corporate Governance 630
Goncalo Nuno Palha Gaio Picão Caldeira, appointment at the Annual General Meeting of 17 May 2023 for a fifth term in office as a
member of the Audit Board, is a non-independent member of the said corporate body, as is clear from the application of Article
414.5(b) of the Companies Code.
33. Professional qualifications, as applicable, of each of the members of the Audit Board, the Audit
Committee or the General and Supervisory Board or the Committee for Financial Affairs and other
relevant biographical details; reference may be made to the item in the report where this information
is contained in accordance with item 21.
José Manuel Oliveira Vitorino
(Chairman of the Audit Board)
José Manuel Vitorino graduated in Business Administration and Organisation from the University of Lisbon’s Instituto Superior de
Economia. He is qualified as a statutory auditor, and in the executive training programme of Universidade Nova de Lisboa. He was
Assistant Lecturer at the Faculty of Economics of the University of Coimbra where he remained until 1980, having then joined
PricewaterhouseCoopers and divided his activity between auditing and financial advisory areas, both in national and foreign
companies and groups, as well as in projects in which he integrated international teams. He was also Chairman of the Audit Board
of Novo Banco, S.A. until 2017 and is a member of the Audit Board of ANA - Aeroportos de Portugal, S.A. He is a member of the
internal control committee of Jerónimo Martins, SGPS, SA. since May 2022. He has been a member of the Audit Board of The
Navigator Company since 2015 and of Semapa and Secil since 2016, serving as Chairman of these supervisory bodies since 2018.
Gonçalo Nuno Palha Gaio Picão Caldeira
(Full member of the Audit Board)
Gonçalo Picão Caldeira has a degree in Law and was admitted to the Portuguese Bar Association in 1991, after completing his law
practice. He has a post-graduate degree in Management (MBA - Universidade Nova de Lisboa) and attended the Real Estate
Management and Valuation course at ISEG. He has been working in real estate management and development through family
companies since 2004. Before that, he collaborated with the BCP Group from 1992 to 1998 and with the Sorel Group from October
1998 to March 2002. He was also an employee of Semapa from April 2002 to February 2004. He has been a member of the Audit
Board of the Company since 2007, of Semapa since 2006, and of Secil since 2013.
Maria da Graça Torres Ferreira da Cunha Gonçalves
(Full member of the Audit Board)
Maria da Graça Torres Ferreira da Cunha Gonçalves has a degree in Company Organization and Management from the Instituto de
Ciências do Trabalho e da Empresa (ISCTE) and is a chartered accountant. From June 1978 to November 1985, she performed
various functions in the areas of General Accounting, Analytical and Financial Planning and Analysis at Magnetic Peripherals Inc.
Portugal. She was a financial analyst at Shell Portuguesa, S.A. between December 1985 and November 1989. Between December
1989 and July 1994, was Controller and CFO at United Distillers Comp. Velha, Ld.ª, with responsibility for all Financial, IT and
Procurement areas. Between August 1994 and July 1995, she was CFO of ITT Automotive Europe GmbH, with responsibility for all
Finance and Personnel. From August 1995 to June 2015, she was Back Office Director at Pernod Ricard Portugal, with
responsibility for Finance, Management Control, Purchasing, Logistics, Production, Human Resources and Legal. In 2001 and
2002, she was responsible in Portugal for the acquisition process of Seagram (Sandeman & Co.). Later, in 2005 and 2006, she
was responsible for the Financial and Human Resources areas of the acquisition process of Allied Domecq (Cockburn Smithes &
2023 Annual Report • Corporate Governance 631
C.ª). She was vice-president in the sector's Association, ACIBEV, as representative of Pernod Ricard. She has been a member of
the Audit Board of the Company, Semapa and Secil since 2018.
b) OPERATION
34. Existence of operating regulations, and place where they can be consulted, as applicable, of the
Supervisory Board, the Audit Committee, the General and Supervisory Board or the Committee for
Financial Affairs; reference may be made to the item in the report where this information is contained
in accordance with item 24.
The Company's Supervisory Board has its own internal rules of procedure, which are published on the Company's website, in the
Investors area, relating to Corporate Governance, and are freely available for consultation via the following link
www.thenavigatorcompany.com/Investidores/Governo-da-Sociedade.
The annual report issued by the Supervisory on its activities is published together with the Annual Report , and is available on the
Navigator Group's website.
35. Number of meetings held and rate of attendance at meetings of the Supervisory Board, the Audit
Committee or the General and Supervisory Board and the Committee for Financial Affairs, as the case
may be; reference may be made to the item in the report where this information is contained in
accordance with item 25.
During the 2023 financial year, the Supervisory Board held twenty-four meetings. All the agendas and the respective minutes
were sent to the Chairman of the Board of Directors and are also available to the Risk Management Department.
Its members were present at all the meetings held while they were in office, so there was a 100 per cent attendance rate.
The number of Supervisory Board meetings held is freely available for consultation on the Company's website at
www.thenavigatorcompany.com/Investidores/Governo-da-Sociedade.
In accordance with the Regulations of the Supervisory Board, detailed minutes of the respective meetings are drawn up.
36. Availability of each of the members of the Audit Board, the Audit Committee or the General and
Supervisory Board and the Committee for Financial Affairs, as the case may be, indicating offices held
simultaneously in other companies, inside and outside the group, and other relevant activities carried
out by the members of these bodies during the period; reference may be made to the item in the
report where this information is contained in accordance with item 26.
This information is available in the previous point 33, which refers to the professional qualifications and other relevant curricular
elements of each member of the governing bodies.
The members of the Supervisory Board have the appropriate availability to carry out their duties.
In addition to the activities mentioned in point 33, the members of the Supervisory Board perform the duties described below:
José Manuel Oliveira Vitorino
Positions held in Navigator Group companies
He does not hold any positions in other Navigator Group companies.
Positions held in other companies/entities
Member of the Supervisory Board of ANA - Aeroportos de Portugal, S.A.
Member of the Internal Control Committee of Jerónimo Martins, SGPS, SA.
Chairman of the Supervisory Board of Secil - Companhia Geral de Cal e Cimento, S.A.
Chairman of the Supervisory Board of Semapa - Sociedade de Investimento e Gestão, SGPS, S.A.
2023 Annual Report • Corporate Governance 632
Gonçalo Nuno Palha Gaio Picão Caldeira
Positions held in Navigator Group companies
He does not hold any positions in other Navigator Group companies.
Positions held in other companies/entities
Manager of Linha do Horizonte Investimentos Imobiliários, Lda.
Manager of Loftmania - Gestão Imobiliária, Lda.
Member of the Supervisory Board of Secil - Companhia Geral de Cal e Cimento, S.A.
Member of the Supervisory Board of Semapa - Sociedade de Investimento e Gestão, SGPS, S.A.
Maria da Graça Torres Ferreira da Cunha Gonçalves
Positions held in Navigator Group companies
He does not hold any positions in other Navigator Group companies.
Positions held in other companies/entities
Member of the Supervisory Board of Secil - Companhia Geral de Cal e Cimento, S.A.
Member of the Supervisory Board of Semapa - Sociedade de Investimento e Gestão, SGPS, S.A.
c) POWERS AND RESPONSIBILITIES
37. Description of applicable procedures and criteria for the supervisory body’s involvement in hiring
additional services from the external auditor
In accordance with the rules laid down in the European Audit Regulation, article 77
s
10 and 11 of the Statute of the Portuguese
Institute of Statutory Auditors, approved by Law no. 140/2015, the Internal Regulations of the Audit Board, as amended, and the
Internal Regulations on the approval of non-audit services, approved on 1 June 2016.º 140/2015, of 7 September, the Internal
Regulations of the Audit Board, in the version in force, and the Internal Regulations on the approval of non-audit services,
approved on 1 June 2016, the contracting of non-audit services - which are neither required by law nor constitute prohibited
services for the External Auditor and Statutory Auditor or any member of their network, by Navigator or by companies in a control
or group relationship with it - is subject to prior approval by Navigator's Audit Board, duly substantiated.
Under these terms, the proposals submitted by the external auditor are sent to the Audit Board for analysis and validation,
essentially seeking to safeguard (i) that these are permitted services, (ii) that this provision of services does not affect the
independence and impartiality of the External Auditor, which is necessary for the provision of audit services, (iii) that the
cumulative value of the fees received for the provision of non-audit services does not exceed the limit defined in the EOROC and
(iv) that the additional services in question are provided with high quality and autonomy.
The Supervisory Board has therefore applied the rules laid down in the Statute of the Order of Statutory Auditors, approved by
Law 140/2015 of 7 September, in the version in force until 31 December 2021, and observes the internal procedures laid down in
the Internal Regulations on the approval of non-audit services to ensure that the legal provisions are complied with.
38. Other duties of the supervisory bodies and, if applicable, of the Committee for Financial Affairs
1. The Supervisory Board has the competences that result from the law, and there are no delegated powers or assigned areas of
responsibility. The functions and duties of the Supervisory Board are expressly set out in its Operating Regulations, which provide
for the exercise of its powers, chairmanship, frequency of meetings, operation and the duties of its members. Detailed minutes of
the respective meetings are drawn up and can be consulted on the Company's website at www.thenavigatorcompany.com/
Investors/Corporate-Governance.
In accordance with the Operating Regulations, revised in December 2020, the Supervisory Board ensures, in a timely and
appropriate manner, the flow of information, starting with the respective convening notices and minutes, necessary for the
exercise of the legal and statutory competences of each of the other bodies and committees.
2023 Annual Report • Corporate Governance 633
2. In carrying out its duties, and without prejudice to other competences attributed to it by law, namely in article 420 of the
Companies Code, in accordance with its operating regulations, the Audit Board is particularly responsible for:
a) Supervising the management of the Company, including, in this context, annually assessing the budget, the internal
functioning of the Board of Directors and its committees, as well as the relationship between the various bodies and
committees of the Company;
b) To ensure compliance with the law and the articles of association;
c) Checking that the books, accounting records and supporting documents are in order;
d) Verify, when it deems it appropriate and in the manner it deems appropriate, the extent of cash and stocks of any kind of
goods or valuables belonging to the Company or received by it as a guarantee, deposit or other security;
e) Checking the accuracy of the accounting documents;
f) Verify that the accounting policies and valuation criteria adopted by the Company lead to a correct assessment of assets
and results;
g) Draw up an annual report on its supervisory activities and issue an opinion on the report, accounts and proposals
presented by the board of directors;
h) To convene the general meeting when the chairman of the general meeting does not do so;
i) Evaluate and comment on the strategic guidelines and risk policy prior to their final approval by the board of directors;
j) Supervising and evaluating the effectiveness of the internal control system, comprising risk management, compliance and
internal audit functions, and may propose any necessary Adjustments;
k) To give its opinion on the work plans and resources allocated to the services of the internal control system, including the
risk management, compliance and internal audit functions, and to propose any necessary adjustments;
l) Receiving reports of irregularities submitted by shareholders, Company employees or others;
m) To hire experts to assist one or more of its members in the performance of their duties, and the hiring and remuneration
of experts shall take into account the importance of the matters entrusted to them and the economic situation of the
Company;
n) Supervising the adequacy of the process of preparation and disclosure of financial information by the Board of Directors,
including the adequacy of accounting policies, estimates, judgements, relevant disclosures and their consistent
application between financial years, in a duly documented and communicated manner;
o) Propose to the General Meeting the appointment of the statutory auditor and the respective remuneration, indicating the
criteria that led to the choice of the proposed statutory auditor and describing the selection process conducted by the
auditor;
p) To propose to the General Meeting the dismissal of the statutory auditor or the termination of the contract for the
provision of their services whenever there is just cause for this;
q) Supervising the audit of the Company's financial statements;
2023 Annual Report • Corporate Governance 634
r) To supervise the independence of the statutory auditor, in particular with regard to the provision of additional services,
and to assess annually the work carried out by the statutory auditor and its suitability for the performance of the duties
assigned to it;
s) To certify that the report on the structure and practices of corporate governance disclosed includes the elements referred
to in article 29-H of the Securities Code;
t) To issue a prior and binding opinion on the Regulation on Conflicts of Interest and Transactions with Related Parties to be
drawn up and approved by the Board of Directors or, in the absence of such a regulation, on the definition to be made by
the management as to whether the transactions that the Company carries out with related parties are carried out within
the scope of its current activity and under market conditions;
u) To issue, within a reasonable period of time, a prior opinion on any business with related parties that is not carried out
within the scope of the Company's current activity and under market conditions;
v) Verify that the transactions with related parties that the Company carries out are carried out within the scope of the
Company's current activity and under market conditions;
w) To fulfil the other duties laid down by law or the Articles of Association.
3. In accordance with its operating regulations, in the performance of its duties, and without prejudice to other powers attributed
to them by law, the members of the Supervisory Board may, acting jointly or separately:
a) To obtain from the management the presentation, for examination and verification, of the books, records and documents
of the Company, as well as to verify the stocks of any class of valuables, namely money, securities and merchandise;
b) Obtain from management, or from any of the Directors, information or clarification on the course of the Company's
operations or activities or on any of its businesses;
c) To have access to all the Company's information and employees in order to assess the Company's performance, situation
and development prospects, including, in particular, the minutes, the documentation supporting the decisions taken, the
notices convening meetings and the archives of the meetings of the other governing bodies, without prejudice to access
to any other documents or persons from whom clarification may be requested;
d) Obtain the reports made by the Company's internal control services, including the risk management, compliance and
internal audit functions, in particular those on matters relating to the rendering of accounts, the identification or
resolution of conflicts of interest and the detection of potential irregularities;
e) Obtain from the Company's statutory auditor the clarifications necessary for the annual assessment by the Audit Board of
the work carried out by the statutory auditor, as well as their independence and suitability to carry out their duties;
f) Obtain from third parties who have carried out transactions on the Company's behalf the information they need to
properly clarify such transactions;
g) Attend board meetings whenever they see fit.
4. In order to carry out its duties, the Audit Board may be assisted by experts specially appointed for this purpose and also by a
Company specialising in auditing work, and may decide to hire the services of experts to assist one or more of its members in
carrying out their duties.
2023 Annual Report • Corporate Governance 635
5. In the performance of their duties, and without prejudice to other duties imposed on them by law, in accordance with their
operating regulations, the members of the Supervisory Board have the duty to:
a) Be informed and diligently prepare for Council meetings;
b) Participate in board meetings and attend general meetings, as well as board meetings called by the chairman or at which
the accounts for the financial year are examined;
c) Carry out conscientious and impartial supervision;
d) To keep secret the facts and information they become aware of as a result of their duties;
e) To inform the board of the checks, inspections and due diligence they have carried out and of the results;
f) To report, at the first meeting held, all irregularities and inaccuracies that they have verified, as well as whether they
have obtained the clarifications they need to carry out their duties;
g) Record in writing all the checks, inspections, complaints received and endeavours that have been carried out and the
results of these;
h) Inform the management body of the results of the statutory audit and explain how it contributed to the integrity of the
process of preparing and disclosing financial information, as well as the role that the supervisory body played in this
process;
i) Monitor the process of preparing and disclosing financial information and make recommendations or proposals to ensure
its integrity;
j) Supervising the effectiveness of the internal quality control and risk management systems and, if applicable, internal
auditing, with regard to the process of preparing and disclosing financial information, without violating their
independence;
k) Monitoring the statutory audit of the individual and consolidated annual accounts, including their execution;
l) Verify and monitor the independence of the statutory audit firm in the exercise of its statutory audit activity or in the
provision of other legally permitted services under the terms defined in the applicable law and regulations, namely
through:
i. Demonstration, during the selection process for the firm of statutory auditors, that the firm has internal mechanisms
in place to ensure independence and avoid conflicts of interest;
ii. Regular proof by the audit firm that these internal mechanisms are adequate and comply with the applicable
legislation and regulations;
iii. Obtaining an annual declaration of independence;
iv. Annual communication of the separate audit services that have been provided;
v. A reasoned proposal as to whether the statutory audit firm's duties should be extended beyond the maximum legal
period, weighing up the respective conditions of independence and the advantages and costs associated with its
replacement;
2023 Annual Report • Corporate Governance 636
vi. Communication from the audit firm about exceeding the fee threshold; and
vii. The joint analysis of possible threats to its independence and the application of safeguards to mitigate them;
m) Select the firms of statutory auditors to propose to the General Meeting for election and justifiably recommend a
preference for one of them;
n) Treating confidentially all Company documentation to which they have access in the performance of their duties, including
the content of meetings of the Board and other governing bodies in which they participate and information preparatory
thereto; and
o) To make available to the other governing bodies and committees, as required by law and the articles of association, all
the information and documentation necessary for the exercise of the legal and statutory competences of each of these
bodies and committees.
6. Members of the Supervisory Board must report to the Public Prosecutor's Office any offences of which they become aware and
which constitute public offences.
7. Whenever any member of the Supervisory Board becomes aware of facts that reveal difficulties in the normal pursuit of the
Company's object, they must immediately notify the statutory auditor.
The Supervisory Board is also the main interlocutor of the External Auditor and Statutory Auditor, having direct access to and
knowledge of their work. The Company believes that this direct supervisory action by the Audit Board is possible, without
interference from the Board of Directors, in relation to the work carried out by the External Auditor and Statutory Auditor, as long
as it does not jeopardise the timely and adequate knowledge of the management body, which is ultimately responsible for what
happens in the Company and for the financial statements, in relation to this same work.
Respecting this principle, the reports of the External Auditor and Statutory Auditor are sent to the Supervisory Board and
discussed at joint meetings of this body with a member of the Board of Directors, including the results of the statutory audit, and
the Supervisory Board ensures that the necessary conditions for the provision of auditing services are in place within the
Company. The Supervisory Board is also responsible for proposing and monitoring, with the support of the Company's internal
services, the remuneration of the External Auditor and Statutory Auditor.
The Statutory Auditor also co-operates with the Supervisory Board in order to provide, immediately and in accordance with the
applicable laws and regulations, information on irregularities relevant to the performance of the Supervisory Board's duties that it
has detected, as well as any difficulties it has encountered in carrying out its duties.
In accordance with the Regulation of the Supervisory Board, the Statutory Auditor and the Company maintain permanent and
adequate channels of communication, namely by holding regular meetings with the management, the Statutory Audit Board and
the departments and directorates with responsibilities in the matters in question, and with the consequent discussion and analysis
of all the information that is pertinent to the exercise of the corresponding activity.
The Supervisory Board is also close to the Risk Management Committee. In fact, according to this committee's regulations, its
chairman must inform the Supervisory Board of any resolutions which, given their relevance, it should be aware of. On the other
hand, all the members of the Committee must be available to provide any clarification and information requested by the members
of the Supervisory Board; however, requests for information and clarification should preferably be made through the Chairman of
the Committee. Finally, the members of the Supervisory Board may attend meetings of the Committee at the request of its
Chairman or at the request of the Supervisory Board, depending on the item on the agenda.
2023 Annual Report • Corporate Governance 637
IV. STATUTORY AUDITOR
39. Identification of the statutory audit firm and the partner and statutory auditor representing the same
The Company's Statutory Auditor is KPMG & Associados - Sociedade de Revisores Oficiais de Contas, S.A., registered with the
Portuguese Association of Statutory Auditors under no. 189 and with the CMVM under no. 20161489, represented by Rui Filipe
Dias Lopes (ROC no. 1715).
The substitute Statutory Auditor is Vítor Manuel da Cunha Ribeirinho (ROC no. 1081).
40. Indication of the consecutive number of years for which the statutory audit firm has held office in the
Company and/or Group
The Statutory Auditor mentioned in point 39 has been working for the Company since 2018.
41. Description of other services provided by the statutory auditor to the company
In addition to the statutory audit services provided to the Company and its subsidiaries, the Statutory Auditor also provided other
assurance and reliability services, as well as financial information review services, in accordance with the provisions of Law
140/2015 of 7 September.
The amounts paid for these services throughout 2023 are detailed in points 46 and 47 below.
V. EXTERNAL AUDITOR
42. Identification of the external auditor appointed for the purposes of article 8 and the partner and
statutory auditor representing such firm in the performance of these duties, together with their
respective registration number with the Portuguese Securities Market Commission.
The Company's external auditor is KPMG & Associados - Sociedade de Revisores Oficiais de Contas, S.A., registered with the
Portuguese Institute of Statutory Auditors under no. 189 and with the CMVM under no. 20161489, represented in the fulfilment of
these duties by partner Rui Filipe Dias Lopes (ROC no. 1715).
43. Indication of the consecutive number of years for which the external auditor and the respective
partner and statutory auditor representing the same in the performance of these duties has held office
in the Company and/or Group.
The External Auditor and the respective Statutory Auditor who represents him in carrying out these duties were appointed at the
General Meeting in September 2017, for the financial year starting on 1 January 2018. They were re-elected to office at the
General Meeting held on 9 April 2019. Thus, 2023 was their sixth year in office with the Company and/or the Group.
44. Policy on rotation of the external auditor and the respective partner and statutory auditor
representing the same in the performance of these duties, and the respective frequency of rotation.
The policy and frequency of rotation of the External Auditor and Statutory Auditor and their representative is determined by article
54 of Law 140/2015 of 7 September (Statute of the Portuguese Institute of Statutory Auditors), which establishes the legal
regime applicable to the mandatory rotation of Statutory Auditors in public interest companies such as Navigator.
In 2023, at the proposal of the Supervisory Board, which considered that the applicable legal conditions had been met, the
Shareholders' General Meeting approved the reappointment of KPMG & Associados - Sociedade de Revisores Oficiais de Contas,
S.A. as the Company's Statutory Auditor for the three-year period 2023-2025, under the terms of the Statute of the Portuguese
Institute of Statutory Auditors and the maximum time limits for carrying out statutory audit duties laid down therein.
2023 Annual Report • Corporate Governance 638
45. Indication of the body responsible for assessing the external auditor and the intervals at which this
assessment is conducted.
As part of its supervisory role and its review of the Company's financial statements, the Audit Board assesses the External Auditor
and Statutory Auditor on an ongoing basis, particularly in the context of the preparatory work for its Report and Opinion on the
annual accounts.
As well as being responsible for proposing the appointment of the Statutory Auditor and the respective remuneration to the
General Meeting, the Supervisory Board is the body responsible for assessing and monitoring all the audit work carried out by the
External Auditor on an ongoing basis, with the possibility of proposing its dismissal with just cause at the General Meeting,
provided the appropriate formalities are met. To this end, throughout the year the Supervisory Board meets regularly with the
Statutory Auditor and External Auditor, establishing a permanent and direct relationship between these two bodies, the latter
being the recipient of their reports, including when matters relating to the rendering of accounts and the detection of potential
irregularities are at issue. At these meetings, the Supervisory Board will be able to analyse all the accounting and financial
information it deems necessary at any given time, and may request from them any information it deems necessary for its
supervision.
In addition, the Supervisory Board, in carrying out its supervisory duties and reviewing the Company's financial statements,
carries out an overall assessment of the External Auditor's performance each year as part of the preparatory work for its Report
and Opinion on the annual accounts and also monitors its independence, namely by obtaining written confirmation of the auditor's
independence; confirming compliance with the rotation requirements of the partner responsible and identifying threats to
independence and the safeguard measures adopted to mitigate them.
To this end, the Supervisory Board has unrestricted access to the documentation produced by the Company's auditors, being able
to request any information it deems necessary and being the first recipient of the final reports drawn up by the external auditors.
In accordance with the provisions of Article 420(2) of the Companies Code, the Supervisory Board is responsible for proposing the
appointment of the Company's Statutory Auditor to the General Meeting.
46. Identification of work, other than auditing, done by the external auditor for the company and/or for
companies in a control relationship with it, together with internal procedures for approving the hiring
of such services, specifying the reasons for doing so.
As described in point 47, in the year ended 31 December 2023, KPMG & Associados - Sociedade de Revisores Oficiais de Contas,
S.A. and other entities belonging to the same network billed for fees relating to the statutory audit of annual accounts, limited
audit of interim accounts and reliability assurance services and services other than audits. The breakdown of the invoicing for
these services is detailed below in point 47.
The services indicated as "reliability assurance services" relate to the issuing of reports on financial information and verification
services for Sustainability Information. With regard to services other than auditing, they refer to opinions on merger operations as
part of the role of Statutory Auditor for Navigator Group companies. As mentioned above, these services are not included in the
list of prohibited services set out in Article 5(1) of Regulation (EU) No 537/2014 of the European Parliament and of the Council.
537/2014 of the European Parliament and of the Council, of 16 April 2014, and the legal requirements for independence, threats
to it and safeguards to limit these threats were guaranteed by the auditor.
In 2023, the provision of non-audit services by the Chartered Accountants Firm to the Company and subsidiaries is regulated in
the Internal Regulations on the approval of non-audit services, approved on 1 June 2016, which provide for non-audit services
that cannot be provided by the SROC and prior control and authorisation processes for these services by the Supervisory Board.
The regime defined in this internal rule is fully in line with the provisions of the Statute of the Order of Statutory Auditors,
approved by Law no. 99-A/2021, the Legal Regime for Audit Supervision, approved by Law no. 148/2015 and Regulation (EU) no.
537/2014 of the European Parliament and of the Council of 16 April 2014.
2023 Annual Report • Corporate Governance 639
Therefore, the services provided by the External Auditor and Statutory Auditor, other than auditing, were always approved by the
Supervisory Board, in compliance with the applicable legal rules in force in 2023 and the internal procedures put in place for this purpose.
47. Indication of the annual remuneration paid by the company and/or controlled, controlling or group
entities to the auditor and other individuals or organisations belonging to the same network,
specifying the percentage relating to the following services (for the purposes of this information, the
concept of network is as defined in Commission Recommendation No. C [2002] 1873 of 16 May 2002)
By the Company*
Value of audit services (€)
169,000
83%
Value of reliability assurance services (€)
34,010
17%
Value of tax consultancy services (€)
0
0%
Value of services other than audits (€)
475
0%
By entities that are part of the Group*
Value of audit services (€)
191,534
76%
Value of reliability assurance services (€)
58,000
23%
Value of tax consultancy services (€)
0
0%
Value of services other than audits (€)
2,000
1%
* Including individual and consolidated accounts
In 2023, services other than auditing services billed to the Company or to entities in a control relationship with it by the External
Auditor and Statutory Auditor, including entities in a holding relationship with them or which are part of the same network,
accounted for 21 per cent of the total services provided.
C. INTERNAL ORGANIZATION
I. ARTICLES OF ASSOCIATION
48. Rules applicable to amendment of the Company’s Articles of Association (art. 29-H, no. 1, al. h).
The Company's Articles of Association do not define any specific rules for amending them, so the general rules of the Commercial
Companies Code apply.
II. REPORTING OF IRREGULARITIES (WHISTLEBLOWING)
49. Means and policy for reporting of irregularities (whistleblowing) occurring in the company.
The Navigator Company, as a listed company with a rigorous governance system, has implemented a Whistleblowing Channel,
which is available through a portal accessible from its websites, thus reinforcing the Company's objective of having an internal
mechanism in which reports of irregularities are submitted in an effective system, in accordance with the rules of conduct
established by Navigator and the principles of guaranteeing anonymity, confidentiality, safeguarding and non-retaliation in
relations with whistleblowers, and complying with data protection and information security standards.
This Whistleblowing Channel is an independent service for reporting possible irregular practices, managed by an external entity
representing Navigator and aimed at communications from Employees, Suppliers, Customers, Service Providers or any other
interested parties, as provided for in the Whistleblowing Regulations.
2023 Annual Report • Corporate Governance 640
The Whistleblowing Regulations enshrine the general duty to report alleged irregularities within the Navigator Group, helping it to
continue to position itself as an upstanding, reputable and credible business group, as well as a fair, honest and safe place to
work.
Under the terms of these Regulations, irregularities include violations of the rules set out in the Code of Ethics and Conduct and
other internal regulations, as well as non-compliance with external legislation or regulations to which The Navigator Company is
subject (e.g. violation of rules of conduct or ethics, fraud, corruption and related offences, protection of privacy and personal data,
health and safety, environmental protection, human rights, among others).
The Regulation appoints a multidisciplinary team with the power to follow up on complaints received, known as the Whistleblowing
Committee (CDI), which is made up of the Director of Legal, Compliance and Public Affairs (DLC), the Director of Risk
Management (DGR) and the Compliance Officer. In cases where the complaint may concern any member of the aforementioned
Committee, it is referred to the Supervisory Board.
The person responsible for following up the complaint must determine whether the complaint contains the minimum grounds to
trigger an investigation process, as well as determine the involvement of other bodies, departments or Employees, when certain
requirements are met.
If the report has the minimum grounds, the investigation procedure is initiated, which consists of verifying all the facts necessary
to assess the alleged irregularity. This process ends with either the closure of the case or a proposal to apply the most appropriate
measures to the irregularity in question.
All persons with a conflicting interest in the situation being reported are excluded from the investigation and decision process, in
order to ensure that it is received, screened, analysed and filed independently, autonomously and impartially.
Reflecting a proactive approach on the part of our Stakeholders in identifying and reporting issues relevant to the Company, over
the course of 2023, the Whistleblowing Channel received a total of 34 reports of irregularities, covering critical issues such as
ethics and conduct, policies and procedures, bullying, harassment or discrimination, as well as issues related to health, safety,
environmental protection and transport . Of these communications, 2 turned out to be substantiated, concerning violation of
policies and procedures by a service provider and excessive noise .
All the cases were identified and dealt with due seriousness and diligence, and the appropriate measures were taken to resolve
them. The channel has proved to be a vital tool for promoting a culture of transparency, responsibility and compliance within the
organisation.
Following the events that took place in 2020 and 2021, underpinned by the 2020 criminal investigation into alleged corruption in
the wood reception activity at one of our manufacturing centres, which led to the dismissal with just cause of the workers involved
in that activity, legal proceedings are still underway in the labour and criminal courts. In fact, during 2023 and as a result of the
aforementioned investigation, Navigator continued to monitor, in the competent labour courts, the actions challenging the
regularity and lawfulness of the dismissals of 28 workers, and to date there have been no further developments in these cases. On
the other hand, in criminal proceedings, Navigator, as an assistant, accompanied the investigation phase of the case, which
resulted in an indictment and confirmation that the case would proceed to trial.
III. INTERNAL CONTROL AND RISK MANAGEMENT
50. People, bodies or committees responsible for internal audits and/or implementation of internal control
systems.
Risk management is considered by the Company to be central to its activity and is, by its nature, a dynamic and continuous
process.
2023 Annual Report • Corporate Governance 641
In 2023 the Group improved its internal risk management process by implementing a new Enterprise Risk Management tool
aligned with the guidelines of COSO - Committee of Sponsoring Organisations of the Treadway Commission and the ISO 31000
standard. The implementation of this tool was carried out in conjunction with the Group's different departments and initially
focussed on the UWF Pulp and Paper business lines. This tool has brought greater alignment with the Group's strategy and
objectives, as well as targeted and continuous monitoring of risks, with the responsibilities of the different players in the process
clearly defined.
The Governance Model was also improved with the creation of two additional bodies: the Risk Management Commission and the
Risk Management Committee.
The Governance Model is aligned with the Institute of Internal Auditors (IIA) 3-line model, which involves: (1) in the first line, all
the business units responsible for carrying out daily risk management activities; (2) in the second line, the Chairman of the
Executive Committee, the Risk Management Department, the Compliance Area, Empremédia - Corretores de Seguros, the
Sustainability Department and the Risk Management Committee; (3) in the supervisory line, the Supervisory Board, the Risk
Management Committee, Internal Audit and the Company Secretary.
This system is based on a systematic and explicit assessment of business risks by all the Navigator Group's organisational
departments and the identification of the main controls in place in all business processes. This basis will enable the Company to
constantly assess the adequacy of its internal control system to the risks perceived as most critical at any given time.
As part of this periodic assessment, an annual internal audit programme is established, to be carried out by the DGR in
conjunction with each directorate involved, to monitor and assess the adequacy of said internal control system to the perceived
risks and to support the organisation in implementing improvement programmes to that same system.
The supervisory bodies for this risk management governance model are the General Meeting and the Board of Directors, as
detailed below.
BOARD OF DIRECTORS
The responsibilities of the Board of Directors in this regard are:
- Review and approve the risk policy defined for The Navigator Company Group, including risk appetite and tolerance;
- Setting risk-taking objectives and ensuring that they are met;
- To approve the risk governance model adopted by The Navigator Company Group;
- Supervising the application of the risk policy in The Navigator Company Group;
- Discuss and approve the Company's strategic plan and risk policy, including the definition of acceptable risk levels;
- Approve strategies for dealing with risks, particularly very high risks;
- Promoting a risk culture in The Navigator Company Group.
SUPERVISORY BOARD
The powers and responsibilities of the Supervisory Board in this regard are:
- Supervising and evaluating the effectiveness of the internal control system, comprising risk management, compliance and
internal auditing functions, and may propose any necessary adjustments;
- Evaluate and propose improvements to the risk management and internal control model, processes and procedures;
- Monitoring the implementation of activity plans within the scope of risk management and internal control;
- Monitoring, evaluating and commenting on the strategic lines and objectives and the risk policy defined by the Board of
Directors, proposing and implementing mechanisms and periodic control procedures to ensure that the risks actually
incurred by the Company are consistent with the objectives set by the management body;
- To give its opinion on the work plans and resources allocated to the internal control services, including the control of
compliance with the rules applied to the Company and internal auditing;
2023 Annual Report • Corporate Governance 642
- To take cognisance of the internal control and risk assessment reports issued by the SROC and to propose the adoption of
the measures deemed necessary or appropriate in the light of these reports;
- To take cognisance of the risk management monitoring reports issued by the Risk Management Department and to
propose the adoption of the measures deemed necessary or appropriate in the light of these reports in terms of internal
control;
- To take cognisance of and express an opinion on the activity carried out in this area by the Risk Management
Department, on the resources allocated to the services that also perform internal control functions, and to be the
recipient, where available, of the reports or opinions produced by these services when matters relating to the rendering of
accounts, the identification or resolution of conflicts of interest and the detection of potential illegalities and irregularities
are concerned;
- Receiving reports of irregularities submitted by shareholders, Company employees or others, under the terms of the
Whistleblowing Regulations in force.
RISK MANAGEMENT COMMITTEE
The Risk Management Committee is made up of the following members:
- Chairman of the Executive Committee
- Financial Administrator
- A non-executive director appointed by the Board of Directors
- Risk Management Department
- Sustainability Department
- Legal, Compliance and Public Affairs
- Empremédia - Insurance Brokers
The powers and responsibilities of the Risk Management Committee are:
- Supervising the application of the risk policy defined for The Navigator Company Group, including the definition of the risk
appetite and the maximum tolerance levels to be respected;
- Supervising the operationalisation of the Risk Management Model (ERM - Enterprise Risk Management) defined by the
Group, specifically with regard to the inventorying of risks and the selection of the main business risks;
- Anticipating the existence of new exogenous risks, specifically those related to the use of new information technologies
and artificial intelligence mechanisms;
- Monitoring the implementation of the Risk Management Committee's activity plans;
- To take cognisance of the risk management monitoring reports issued by the Risk Management Committee and to
propose the adoption of the necessary or appropriate measures in the light of these reports;
- Contribute to the promotion of a risk culture in The Navigator Company Group.
INTERNAL AUDIT
Internal Audit's responsibilities in this area are:
- Defining a systematic and disciplined approach to evaluating the effectiveness of the internal control system, including the
risk management and compliance functions, and being able to propose any necessary recommendations;
- Defining and executing the annual audit plan within the scope of risk management and internal control;
- Test risk management and internal control procedures and propose improvements;
- Regularly report on the status of audits, as well as the main conclusions of the audits carried out and propose
recommendations for improvement in the light of these reports.
CHIEF EXECUTIVE OFFICER
The responsibilities of the Chief Executive Officer in this regard are:
- Defining The Navigator Company Group's risk policy, including risk appetite;
2023 Annual Report • Corporate Governance 643
- Take risk policy into account when defining the Navigator Group's strategic objectives;
- Provide means and resources for effective and efficient risk management;
- Approve the risk management model, processes and procedures;
- Define the risk management governance model to be adopted by the Navigator Group, including the responsibilities to be
assigned;
- Approve risk management activity plans;
- Ensuring that the main risks to which The Navigator Company Group is exposed are identified and reduced to acceptable
levels, in line with the defined risk appetite and tolerance;
- Discuss and approve risk treatment options where the residual risk level is above the risk tolerance levels;
- To monitor and review the work carried out by the Risk Management Department in the field of risk management;
- Communicate results to the Board of Directors.
RISK MANAGEMENT DEPARTMENT
The responsibilities of the Risk Management Department in this area are:
- Define the risk management model, processes and procedures;
- Draw up risk management activity plans;
- Identify and implement means and resources (human, procedural and technological) to facilitate risk identification,
analysis and management;
- Alerting to potential risks in the definition of strategic and operational objectives;
- Supporting the definition of risk appetite and risk tolerance;
- Supporting the definition of responsibilities to be assigned within the scope of risk management;
- Supporting the identification and characterisation of risks;
- Monitoring risk indicators;
- Supporting the definition of risk mitigation measures;
- Evaluate the effectiveness of risk mitigation measures;
- Assessing compliance with risk tolerance;
- Ensuring compliance with risk mitigation action plans;
- Drawing up risk management monitoring reports.
COMPLIANCE AREA (LEGAL, COMPLIANCE AND PUBLIC AFFAIRS DEPARTMENT)
In line with the evolution of international best practice, Navigator has set up a Compliance Department, integrated into the Legal,
Compliance and Public Affairs Department, emphasising the importance of pursuing a compliance policy that frames its activity
throughout the entire legal and regulatory value chain, with a view to transparency and fairness, in the context of preventing and
combating illegal acts.
Navigator therefore considers it a structural element for the proper management and mitigation of compliance risks associated
with its business and economic activities to have a system that promotes legal compliance and ethical conduct.
The compliance system aims to ensure compliance with the applicable legal requirements, especially with regard to the prevention
of corruption, money laundering, terrorist financing, violation of international sanctions, protection of human rights and protection
of personal data, as well as to reinforce the ethical culture of and several of its stakeholders, namely members of governing
bodies, employees and suppliers, by promoting training and communication activities on matters of legal compliance and ethical
conduct.
This system is crucial if the Company is to have adequate capacity to pursue its activities in accordance with the legal
requirements applicable in the aforementioned areas and to promote ethical behaviour on the part of the relevant stakeholders,
fostering respect for the most appropriate standards and practices in the decision-making process, in the context of the challenges
posed by the business environment, also contributing to the creation of value and the sustainability of the Navigator Group.
2023 Annual Report • Corporate Governance 644
To achieve these objectives, the compliance system is aligned with the following fundamental organisational dimensions of the
Group :
- the governance model established in the respective articles of association and in the internal regulations of the
management and supervisory bodies ;
- business strategy and objectives, in particular by focussing on the prevention, detection and remediation of non-
conformities that may impact its economic and financial value ;
- the risk management and internal control system, to allow the second line of defence of the COSO model (Committee of
Sponsoring Organisations of the Treadway Commission) to incorporate and act effectively in the management of
compliance risks to which the Company is exposed; and
- the organisational culture, to promote the assimilation of the importance of compliance matters for the functioning,
resilience and reputation of the organisation and simultaneously encourage the adoption of conduct that minimises the
tangible and intangible costs of non-compliance for the Company and its people.
In order to make its compliance system effective, Navigator has implemented an effective and efficient compliance system
governance model which clearly identifies the competencies of the various players involved in the processes associated with its
business and which fosters adequate coordination and communication between them, based on simple processes and procedures
guided by business objectives, so as to avoid bureaucratisation and loss of agility in business development.
The structure and organisation of the Navigator Group's compliance system is based on the coordinated action of the functional
units of the Group's internal structure, in conjunction with the management and supervisory bodies and in accordance with
generally accepted best practices, with a view to supporting the decision-making process. It should be noted that, with regard to
the prevention of corruption and related offences, we have an executive director of the Company responsible for regulatory
compliance.
In 2023, the Internal Regulations of the Ethics and Integrity Committee were revised at , the Regulations of the Corporate
Governance Committee were revised at and the Internal Regulations of the Supervisory Board were revised at the proposal of the
Compliance Area, with a view to bringing these instruments into line with the set of Compliance Policies implemented and with the
reformulation of the Whistleblowing Channel.
Within the scope of internal control and risk management, the responsibilities of the Compliance Area are as follows:
- Preventing and detecting situations of legal non-compliance or inappropriate ethical conduct;
- Presenting and coordinating the implementation of corrective or remedial measures for situations of legal non-compliance
or inappropriate ethical conduct;
- Draw up and propose a three-year plan for developing and updating the Compliance system, assessing the need to
update/amend this plan on an annual basis;
- Preparing and proposing internal compliance standards and procedures;
- Carry out an integrity assessment of third parties that have dealings with the Navigator Group;
- Identify and manage compliance risks relevant to Navigator;
- Define compliance guidelines;
- Coordinating the activity of compliance officers and establishing the appropriate communication and reporting
mechanisms for their respective functions;
- Promote training and other capacity-building initiatives on compliance issues for employees, members of governing
bodies and other relevant stakeholders;
- Ensuring compliance with the duty to provide periodic information to the Supervisory Authorities and other requests from
these entities in matters within their remit;
- Supporting the Ethics Committee in dealing with reports of irregularities concerning breaches of the Code of Ethics and
Conduct;
- Monitoring the treatment of irregularities reported through the Whistleblowing Channel, via integration of the Compliance
Area Manager n the Whistleblowing Committee;
- Monitoring the level of compliance of Navigator Group companies.
2023 Annual Report • Corporate Governance 645
EMPREMÉDIA - INSURANCE BROKERS
As part of the review of The Navigator Company Group's Risk Management Governance Model, it was decided to abolish the
previous "Asset Risk Analysis and Monitoring Committee" and integrate this component into the current Governance Model, in
terms of risk monitoring, to be carried out by Empremédia, the Group company responsible for insurance management.
In this context, Empremédia's responsibilities include commenting on the risk prevention systems in place within the Group and
assessing the suitability of the risk insurance policies and the policies they represent.
RISK MANAGEMENT COMMITTEE
In order to implement the Risk Management Model (ERM), the Risk Management Committee was set up:
- Chairman of the Executive Committee
- Financial Administrator
- Representatives from each monitoring area (e.g. Risk Management Department, Sustainability Department, Empremédia
- Insurance Brokers)
- Representatives from each of the defined risk families (e.g. Commercial, Reputational, Productive, Resilient and Capacity
Building)
The responsibilities of the Risk Management Committee are:
- Propose the definition of risk appetite and maximum tolerance levels to be respected;
- Review and approve the risk inventory;
- Review the Group's risk matrix;
- Monitoring the follow-up and effectiveness of action plans for mitigation measures;
- Monitoring risk indicators;
- Evaluate the effectiveness of the risk management process;
- Define who is responsible for the risks identified;
- Promote coordination between different Risk Management areas and subsystems;
- Regularly inform the Executive Committee and the Risk Management Committee of its activities and decisions.
BUSINESS AREAS/DEPARTMENTS
The responsibilities of the business areas/directorates in this area are:
- Define risk tolerance;
- Identify and characterise risks;
- Define and monitor risk indicators;
- Defining, implementing and executing risk mitigation measures in accordance with risk mitigation action plans;
- Carry out risk and control assessments.
51. Description of the lines of command in this area in relation to other bodies or committees; an
organisational chart may be used to provide this information.
It is clear from the previous point that risk management in the Company is the responsibility of the entire organisation, with the
functions detailed therein.
In terms of the hierarchical and functional framework, it should be emphasised that Internal Audit (Risk Management
Department), in addition to reporting functionally to the Chairman of the Executive Committee, also reports to the Supervisory
Board, thus ensuring the necessary support for the proper execution of its competences. These relationships are shown
schematically in the organisational chart below:
2023 Annual Report • Corporate Governance 646
2023 Annual Report • Corporate Governance 647
52. Existence of other divisions with responsibilities in the field of risk control
The Company has the following committees, which complement the work of the Supervisory Board and the Chief Executive Officer
in terms of controlling and monitoring specific risks:
- Corporate Governance Committee - supervises the application of the Navigator Group's Corporate Governance rules and
the Code of Ethics, as well as overseeing internal procedures relating to conflicts of interest, particularly with regard to
relations between the Navigator Group and its Shareholders or other Stakeholders.
- Ethics and Integrity Committee - supervises compliance with the provisions of the Code of Ethics and identifies
situations that condition compliance.
- Talent Committee - responsible for monitoring and supporting the appointment of senior managers in the Company and
the Navigator Group, as well as assessing the performance of senior managers.
- Sustainability Forum - implements corporate and strategic policy in matters of social and environmental responsibility,
and the prevention of potential risks affecting these matters.
53. Identification of the main risks (economic, financial and legal) to which the company is exposed in the
course of its business.
The Navigator Group's matrix of main risks in terms of impact and probability of occurrence is as follows:
2023 Annual Report • Corporate Governance 648
2023 Annual Report • Corporate Governance 649
2023 Annual Report • Corporate Governance 650
Many of the risk factors listed are not controllable by the Navigator Group, namely market factors that can fundamentally and
unfavourably affect the market price of the Company's shares, regardless of the Group's operational and financial performance.
The risks brought about by climate change, along with the evolution of ESG issues, have taken on particular prominence in the
Navigator Group's risk management. As well as being directly linked to Navigator's business processes, with mitigation controls
described and subject to monitoring, climate change is reflected on multiple fronts in our risk management structure. For
example, the risk of access to raw materials or CO licenses
2
can, to a large extent, derive from drought phenomena or the issues
of the (de)carbonisation of economies, which Navigator aims to anticipate and which are dealt with at length in another section of
this report.
54. Description of the process of identification, assessment, monitoring, control and management of risks
For the Navigator Group, risk management is an essential tool for decision-making by constantly monitoring the risks to which it is
exposed, sensitising the Group across the board to a risk culture that includes the perspective of avoiding risks, but also the
positive perspective of taking risks.
On the other hand, the various areas/departments benefit from risk management by being able to anticipate situations of
uncertainty, mitigating the risks of adverse consequences and maximising the risks that in themselves present opportunities. The
Navigator Group also gains greater and more sustained decision-making capacity in the face of risk events, responding in a
coordinated and integrated manner to risks with causes, impacts or vulnerabilities that cover more than one area.
Finally, from the point of view of Internal Audit and the control environment, risk management is particularly important, as it
enables the Navigator Group's risk profile to be continually assessed and the level of internal control to be strengthened. Equally
important is the contribution of risk management to Internal Audit, focussing its action on the areas/processes of greatest risk and
concern to the business "Risk-based Internal Audit". As an immediate result of this approach, it will be possible to plan and carry
out audits that take into account the most relevant risks for the Navigator Group, through an audit planning methodology.
The Navigator Group's risk management process follows internationally accepted risk management best practices, models and
frameworks, including "COSO II - Integrated Framework for Enterprise Risk Management" and the ISO 31000 standard.
In order to draw up the risk management process, the ISO 31000 standard was taken into account with regard to its main
phases, and COSO II for the systematisation and structuring of risks. This process is made up of a set of seven interrelated
phases, encompassing in itself an iterative process of continuous improvement, embodied by a communication and consultation
process and a monitoring and review process. The following figure schematically represents the flow of the risk management
process.
2023 Annual Report • Corporate Governance 651
The external audit is carried out by KPMG. The Company's External Auditor checks, in particular, the application of remuneration
policies and systems, as well as the effectiveness and functioning of internal control mechanisms, using the information provided
by the Company.
The conclusions of the checks carried out are reported by the External Auditor to the Supervisory Board, which, where
appropriate, reports the deficiencies found.
In view of the main risks identified, the monitoring and control function carried out by the Risk Management Department through
internal control audits was maintained. In this context, a series of internal control audits were carried out in 2023 and open issues
from previous audits were followed up.
The main focus of this year's work was on internal control processes, namely strengthening the assessment of operational
information systems in the Cybersecurity component, analysing customer credit processes and forest protection performance. In
addition, the internal control issues identified by the External Auditor continued to be monitored.
55. Main components of internal control and risk management systems implemented at the company for
the disclosure of financial information (art. 29-H, no. 1, para. l).
The Company has an internal control system for the preparation and disclosure of financial information, which is carried out by the
Company's Departments/Business Areas, namely the Accounting Department, the Tax Department, the Management Control
Department, the Risk Management Department and the Investor Relations Department, and is regularly monitored by the
Supervisory Board. As part of this system, the Supervisory Board assesses the financial information each quarter on the basis of
the reports prepared by the management and, on a half-yearly and annual basis, on the basis of the opinion issued by the
Statutory Auditor and External Auditor. In this context, meetings are also held with the participation of the Risk Management
Department, members of the Executive Committee, the Statutory Auditor and External Auditor, and those responsible for
2023 Annual Report • Corporate Governance 652
accounting and management planning and control, with a view to monitoring the processes underway. The elements of the
internal control and risk management system are described in point 54.
IV. Investor Suppport
56. Office responsible for investor support, composition, functions, information provided and contact
details
The Company has had an Investor Relations Office since 1995, whose mission is to prepare, manage and coordinate all the
necessary activities with the aim of ensuring permanent and appropriate contact with the financial community - Investors,
Shareholders, Financial Analysts and regulatory bodies - and to promote the communication of the Company's financial
information, or other information that is relevant to the evolution of the performance of Navigator's shares on the capital market.
In accordance with the principles of coherence, integrity, regularity, fairness, credibility and timeliness, it contributes to facilitating
the investment decision-making process and the sustained creation of shareholder value.
The Investor Relations Office is responsible for complying with its legal obligations to inform the regulator and the market, namely
to disclose the Group's results and activities, to respond to requests for information from investors, financial analysts and other
agents, and to support the Executive Committee in publicising The Navigator Company's growth and development strategy.
This office thus ensures the production, processing and timely disclosure of information to the Board of Directors, shareholders,
investors and other stakeholders, financial analysts and the market in general, in an appropriate and rigorous manner.
The Investor Relations Office has one person, who also acts as a representative for the capital markets, and whose contact details
are detailed in the next point.
All mandatory information, such as information on the company name, public company status, registered office and other details
mentioned in article 171 of the Companies Code, is available on the Navigator Group's website at
www.thenavigatorcompany.com. Disclosures of quarterly results, half-yearly and annual reports and accounts, the respective
announcements and press releases, a description of the governing bodies, the financial calendar, the Company's Articles of
Association, notices convening General Meetings, proposals submitted for discussion and voting at General Meetings, resolutions
passed and attendance statistics, as well as all relevant facts are also available on Navigator's website, in the Investors area, in
Portuguese and English.
57. Investor Relations Officer
The Company's Market Relations representative is Ana Rosa Pinelo Esteves Canha and can be contacted via the Company's
general telephone number (+351 21 901 7300) or the following email address: ana.canha@thenavigatorcompany.com.
These contacts are available on Navigator's website, in the Investors area.
58. Information on the proportion and response time to information requests during the year or pending
from previous years
Navigator is keen to ensure proximity to the capital market community, through transparent, objective and consistent
communication of the Company's strategy. Accordingly, over the course of 2023, the Company took part in eight events bringing
together investors, financial analysts and other organisations, one of which consisted of a visit to the Setúbal Industrial Complex,
giving participants the opportunity to get to know the Company's business on the ground. These events resulted in a total of 90
meetings, of which 37 were face-to-face and 53 virtual. In addition, four conference calls were held to present the results,
attended by analysts and institutional investors.
2023 Annual Report • Corporate Governance 653
Alongside these events, several follow-up meetings were held throughout the year with the 8 analysts who cover Navigator, as
well as contacts and meetings with private and institutional investors.
Investor support also received questions and requests by electronic means (email and telephone contact), with an average of 20
contacts/month. As a result, around 240 requests were received and answered throughout 2023, with an estimated average
response time of less than 3 working days. There were no outstanding requests for information at the end of the year.
V. Website
59. Address(es).
Navigator's website address is: www.thenavigatorcompany.com.
60. Location information on the company name, public company status, registered office and other items
referred to in article 171 the Companies Code
The above information is available on Navigator's website, in the Investors area, at
https://www.thenavigatorcompany.com/Investidores/Accao-Navigator#modulo4303.
61. Location of the articles of association and operating regulations of boards and/or committees
The above information is available on Navigator's website, in the Investors area, in the Corporate Governance section, at
www.thenavigatorcompany.com/Investidores/Governo-da-Sociedade.
62. Location of information on the identities of members of statutory bodies, the market relations officer
and the Investor Support Office or equivalent structure, and their respective duties and means of
access
The aforementioned information is available on Navigator's website, in the Investors area, specifically in the section on Corporate
Governance, as well as in the section entitled Profile, available at www.thenavigatorcompany.com/Investidores/Governo-da-
Sociedade and www.thenavigatorcompany.com/Investidores/Contactos respectively.
63. Location for consultation of financial statements and reports, which must be accessible for no less
than five years, together with the six-monthly corporate diary, disclosed at the start of each
semester, including, amongst other things, General Meetings, disclosure of annual, half-yearly and (if
applicable) quarterly accounts
Navigator's quarterly, half-yearly and annual results, published since 2003, are available in the Investors area, in the section
entitled "Financial information", available at www.thenavigatorcompany.com/Investidores/Informacao-Financeira. The calendar of
Company events for the current year has its own tab in the Investors area entitled "Calendar", available at
www.thenavigatorcompany.com/Investidores/Calendario.
64. Location for publishing the meeting notice for the General Meeting and all preparatory and subsequent
information related to it
The notice for the General Meeting, as well as all the preparatory and subsequent information related to it, is available in the
Investors' area, in a separate tab entitled "General Meetings", available at
www.thenavigatorcompany.com/Investidores/Assembleias-Gerais.
65. ocation for publishing a historical archive of decisions made at the company’s general meetings, share
capital representation and voting results for the 3 preceding years
2023 Annual Report • Corporate Governance 654
The aforementioned information is available in the same place as the information on General Meetings, i.e. in the Investors' area,
in a separate tab entitled "General Meetings", available at www.thenavigatorcompany.com/Investidores/Assembleias-Gerais.
D. REMUNERATION
I. Powers to determine remuneration
66. Indication of the powers for determining the remuneration of statutory bodies, members of the
executive committee or managing director and company managers
The body responsible for determining the remuneration of the Board of Directors and the Supervisory Board is the Remuneration
Committee.
With regard to the Company's directors, this competence belongs to the Board of Directors.
II. Remuneration Committee
67. Composition of the Remuneration Committee, including identification of individuals or organisations
contracted to provide support, and declaration regarding the independence of each member and
adviser
The Remuneration Committee is made up of Maria Eduarda Faria e Maia de Oliveira Luna Pais, João do Passo Vicente Ribeiro and
Carlota Infante da Câmara Albergaria Caldeira.
The Company considers that all members of the Remuneration Committee are independent.
The Remuneration Committee does not have any people hired to assist it. The Company is free to appoint the services it deems
necessary or convenient, within the Company's budgetary limits, a right it has exercised in the past, in which case it must ensure
that the services are provided independently and that the respective providers are not contracted to provide other services to the
Company itself or others in a controlling or group relationship without the express authorisation of the committee. The Company
believes that the composition of the Remuneration Committee ensures its independence from management, as all its members
are independent.
At the Company, the Remuneration Committee provides all information or clarification to the Shareholders at the respective
Annual General Meetings or at any other General Meetings, if the respective agenda includes a matter related to the remuneration
of the members of the Company's bodies and committees or if such attendance is requested by the Shareholders, doing so
through the presence of at least one of its members. This was the case at the Annual General Meeting of 17 May 2023, which was
attended by all its members.
68. Expertise and experience of the members of the Remuneration Committee in the field of remuneration
policy
Two of the members of the Remuneration Committee, Eduarda Luna Pais and Carlota Albergaria Caldeira, have extensive
knowledge and experience of remuneration policy.
Eduarda Luna Pais was a consultant at Egon Zehnder for several years and subsequently Office Leader and Partner at this
Company, which has extensive experience and is a leader in executive recruitment, involving in-depth and constantly updated
knowledge of assessment processes and criteria and the associated remuneration packages.
2023 Annual Report • Corporate Governance 655
For her part, Carlota Albergaria Caldeira has solid experience in human resources consultancy with a focus on managing executive
search projects (national and international markets) and assessments. For several years, she carried out various consultancy
projects for companies providing services in the area of talent management and executive recruitment, such as Jason Associates,
Argo Talents and Mercer. He was also a Senior Associate at Heidrick & Struggles, where he managed several Human
Capital/Leadership Services consultancy projects.
III. Remuneration Structure
69. Description of the remuneration policy of the management and supervisory bodies referred to in
article 2 of Law no. 28/2009, of June 19.
The remuneration policy for the management and supervisory bodies ("Remuneration Policy") for the 2023 financial year, drawn
up by the Remuneration Committee, was approved at the Annual General Meeting of 17 May 2023, and corresponds to Annex 2 of
this Report, and there is no departure from the procedure for applying the approved remuneration policy or derogations from it.
70. Information on the means of structuring remuneration to align the interests of managing board’s
members with the long-term interests of the company, and how this is based on performance
assessment, discouraging the assumption of excessive risk
The way in which the remuneration of the governing bodies was structured and how the assessment of the performance of the
executive management in 2023 was based complied with the model and principles - duties performed, the Company's economic
situation and market criteria - set out in the Remuneration Policy for members of Navigator's management and supervisory bodies
in force, to which reference is made. Point 24 above describes the process and the bodies involved in assessing the performance
of executive directors.
The remuneration system in force at Navigator ensures its business strategy and also, in the long term, the alignment of the
interests of the members of the board of directors with the interests of the Company and its sustainability, in particular, because it
is a remuneration that seeks to be fair and equitable, within the scope of the principles set out, and because it associates the
members of the board of directors with results, through a variable component of remuneration that has results as the
preponderant factor, but also takes into account the behavioural skills of each director, such as their alignment with the long-term
interests of the Company and its sustainability.
Regarding the components of remuneration:
(i) Non-executive directors
The remuneration of the non-executive members of the Board of Directors consists only of a fixed component, corresponding to
an annual amount, payable 12 times a year, which may be differentiated due to the accumulation of functions and increased
responsibilities (for example, members of specialised commissions or committees, or a predetermined amount for each
attendance at a Board meeting). The remuneration of the non-executive members of the Board of Directors does not include any
component whose value depends on the Company's performance or its value.
(ii) Executive directors
The remuneration of the executive members of the Board of Directors consists of a fixed component, corresponding to an annual
amount, payable 12 times a year.
The annual variable remuneration of executive directors is occasional and, overall, may correspond to a percentage not exceeding
five per cent of the net profit for the previous financial year, in accordance with the Company's Articles of Association.
2023 Annual Report • Corporate Governance 656
The Remuneration Committee is responsible for setting this component, and the performance assessment of each executive
director follows an internal process structured under the responsibility/leadership of the person in charge (i.e. under the
responsibility of the person who chairs the team, in the case of the members of the Executive Committee, and under the
responsibility of the Chairman of the Board of Directors, in the case of the Chairman of the Executive Committee) and in which the
non-executive directors who the person in charge deems relevant are also involved. Also involved in this process is the Talent
Committee, which is responsible for monitoring the system for assessing management performance and awarding remuneration,
and for giving its opinion% on the proposals for individual performance assessments for executive management. Finally, the
Remuneration Committee is responsible for confirming the respective achievement factors in the performance appraisal and
ensuring the overall coherence of the process by setting the variable remuneration.
The annual variable remuneration is based on a target value applicable to each director, which is paid under conditions of
performance by the director and the Company that correspond to the expectations and objectives previously set. This target value
is defined by weighing up the general principles mentioned above -%market, specific functions, the Company's situation -%with
emphasis on comparable market situations in functions of equivalent relevance.
The weightings of actual performance in relation to expectations and objectives, which determine the variation in relation to the
target, are based on a set of quantitative and qualitative KPIs related to the Company's performance (corresponding to general
business indicators, with a weight of 65%) and the performance of the Director in question (corresponding to specific objectives,
with a weight of 20%, and behavioural indicators, with a weight of 15%).
The general business indicators and their relative weightings, which may be adjusted annually by a maximum of 5 per cent, are as
follows:
a) EBITDA, with a weight of 35%
b) Net results, with a weight of 10%
c) Cash flow, with a weight of 10 per cent, and
d) Total Shareholder Return vs Peers, with a weight of 10%.
The specific objectives will always include ESG indicators, such as the result of the Company's annual climate survey, the
reduction of CO2 emissions
2
, certified wood and the consumption of water, energy and wood.
On the other hand, and within the behavioural indicators, the alignment of each executive director with the existing leadership
model and the Company's long-term interests stands out.
The performance criteria referred to above are applied mathematically in their quantitative part -%using the values of the business
plans approved by the Board of Directors as a reference, and at the end of each period these commitments are compared with the
results actually obtained -%and through evaluative assessments with regard to the qualitative part.
In addition to the statutory limit on management's share of profits for the year, the Company also has mechanisms in place to
limit variable remuneration: (i) the variable component is eliminated if the results show a significant deterioration in the
Company's performance in the last financial year or when this is expected in the current financial year and (ii) the amount of
annual variable remuneration attributable has a defined cap, corresponding to 1.8 times the target, in order to prevent good
performance at one time, with immediate remuneration advantages for management, from being made at the expense of good
future performance.
The determination of the annual variable remuneration may take into account reasonable adjustments relating to exogenous
factors and unforeseen economic decisions, as defined in advance by the Remuneration Committee.
2023 Annual Report • Corporate Governance 657
The nature of the indicators, their respective weight in determining the effective variable remuneration and the limits on the
application of variable remuneration create a remuneration model based on recognising merit by reference to the Company's
actual performance and discouraging excessive risk-taking, while at the same time contributing to the realisation of the strategy
defined by The Navigator Company and ensuring that the interests of the executive members of the board of directors are aligned
with the company's long-term interests.
(ii) The remuneration of the members of the Supervisory Board consists only of a fixed component, which will consist of a fixed
annual amount, payable 12 times a year, with the remuneration of the Chairman of the Supervisory Board being higher than that
of the other members of the Supervisory Board, taking into account the special duties he performs. There are not and never have
been any agreements set by this Committee regarding payments by The Navigator Company for the dismissal or termination of
office of members of the Supervisory Board.
(iii) The remuneration of the members of the Board of the General Meeting consists only of a fixed component, consisting of a
predetermined amount for each meeting that actually takes place, with a lower amount for the second and subsequent meetings
that take place during the same year. The remuneration of those who chair the Board of the General Meeting shall be higher than
that of those who act as secretaries, taking into account the greater responsibility of the duties performed.
Although there is no independent remuneration mechanism in the Company with the specific aim of discouraging excessive risk-
taking, Navigator does not include any specific objectives in the directors' performance objectives that promote excessive risk-
taking, nor has it instituted any mechanism that allows for advance payments of future remuneration. Risk is an inherent
characteristic of any act of management and, as such, inevitably and permanently subject to consideration in any management
decision. Its qualitative or quantitative assessment as good or bad cannot be made in isolation in itself, but only in its result on the
Company's performance over time, thus blending in with long-term interests, and therefore benefiting from the incentives for
general long-term alignment and sustainability mentioned above.
71. Reference, if applicable, to the existence of a variable remuneration component and information on
any impact on this from performance assessments.
The existence of a variable component in the remuneration of executive directors and information on the possible impact of
performance appraisals on this component are described above, in point 70, and in the Remuneration Policy in Annex 2, to which
reference is made.
The remuneration of the members of the Supervisory Board does not include any variable component.
72. Deferred payment of the variable remuneration component, with reference to the deferral period
The Company does not defer payment of the variable component of remuneration.
73. Criteria applied in allocating variable remuneration in shares and on the continued holding by
executive directors of these shares, on any contracts concluded with regard to these shares,
specifically hedging or transferring risk, the respective limits and the respective proportion
represented of total annual remuneration
The Company's variable remuneration does not include any share component.
74. Criteria applied on the allocating of variable remuneration in options and an indication of the deferral
period and value
The Company's variable remuneration does not include any options.
2023 Annual Report • Corporate Governance 658
75. Main parameters and grounds for any annual bonus system and any other non-cash benefits
The criteria used to set annual bonuses are those relating to variable remuneration, as described in point 2.2.2 of chapter 2 of the
Remuneration Policy, and in points 25 and 70 above.
In addition to the variable component that may be attributed to members of the executive management bodies, no other non-
pecuniary benefits are attributed to members of the management and supervisory bodies, without prejudice to the means made
available to them for the performance of their duties, life insurance, health insurance and personal accident insurance in line with
market practices.
76. Main features of complementary or early retirement schemes for directors, and the date of approval
by the General Meeting for each individual
The Company currently has no supplementary pension or early retirement schemes for directors.
In 2019, a proposal was submitted to the Insurance and Pension Funds Supervisory Authority (ASF) to amend the Pension Fund's
Constitutive Contract, whereby The Navigator Company Pension Plan was altered and the Directors were no longer entitled to a
retirement supplement under the Plan. This amendment was approved by the ASF for 2022 with retroactive effect from 2
December 2021.
However, under the terms of the Regulations of The Navigator Company Pension Plan (formerly Portucel S.A. Pension Plan) in
force until the effective date of the amendment to the Articles of Association, the Company's Directors who were paid as such, and
who had served at least one full term of office in accordance with the articles of association, were entitled, upon retirement or
disability, if this occurred during their term of office, to a monthly supplement to their old-age or disability pension, respectively.
If the invalidity occurred after the end of their term of office, these members of the Board of Directors would only be entitled to
the invalidity pension supplement if they were awarded the corresponding invalidity pension by the social security organisation
with which they were registered and if they requested this from the Company.
This supplement was defined according to a formula that takes into account gross monthly pay and the number of years of
service, with a minimum of 10 years and a maximum of 30 years.
The directors António José Pereira Redondo, João Paulo Cabete Gonçalves Lé and António Quirino Vaz Duarte Soares are members
of the pension plans of Navigator Brands, S.A., a subsidiary of the Company, as employees of that company, before taking up
management positions.
Due to the specific nature of the Navigator Group's pension plan, there has been no intervention by the General Meeting to date in
approving the main features of the specific rules applicable to the retirement of Directors.
It should be noted in this regard that the Company was a state-owned company until 1991, with its activity and form of operation
regulated by the special law applicable to this type of company, and during this period the specific rules applied to the retirement
of the members of the Board of Directors were approved.
However, it should be noted that the supplementary pension plans in force at the Company are described in Note 7 of the notes to
the consolidated accounts for the financial year , which form part of the Annual Report subject to approval by the General
Meeting.
2023 Annual Report • Corporate Governance 659
IV. Disclosure of Remuneration
77. Indication of the annual amount of remuneration earned, in aggregate and individual form, by the
members of the management bodies of the company, from the company, including fixed and variable
remuneration and, in relation to this, mention of the different components that gave rise to it
The amount of remuneration earned in 2023 is shown below, where the variable remuneration was paid in 2023 but relates to
2022 performance, by the members of the Company's management body, from Navigator, with a distinction between fixed and
variable remuneration, and relative percentages, but without distinguishing the different components that gave rise to the variable
remuneration, because the variable component is defined as a whole, weighting the elements explained in the Remuneration
Policy, without identifying components .
Fixed Remuneration
Variable Remuneration
Amount
(Euros)
Relative
Percentage
Amount
(Euros)
Relative
Percentage
António José Pereira Redondo
707,196
41.85%
982,603
58.15%
Adriano Augusto da Silva Silveira
238,006
23.09%
792,842
76.91%
José Fernando Morais Carreira de Araújo
329,854
31.50%
717,151
68.50%
Nuno Miguel Moreira de Araújo Santos
329,850
30.83%
740,185
69.17%
João Paulo Araújo Oliveira
190,193
20.92%
718,958
79.08%
João Paulo Cabete Gonçalves Lé
329,855
30.95%
735,822
69.05%
Dorival Martins de Almeida
230,946
100%
-
0%
António Quirino Vaz Duarte Soares
139,656
100%
-
0%
Manuel Soares Ferreira Regalado
32,083
100%
-
0%
Maria Teresa Aliu Presas
77,000
100%
-
0%
Mariana Rita Antunes Marques dos Santos
105,000
100%
-
0%
Sandra Maria Soares Santos
77,000
100%
-
0%
Ana Teresa Cunha de Pinho Tavares Lehmann
47,707
100%
-
0%
Vítor Manuel Galvão Rocha Novais Gonçalves
40,833
100%
-
0%
The table above shows the annual amount corresponding to the period in which the members of the Board of Directors held office.
The tables below show, for the purposes of Article 26-G(2)(c) of the Securities Code, the annual variations over the last five
financial years in the remuneration paid individually by the Company to the members of the Board of Directors, as well as the
average remuneration of the Company's full-time equivalent Employees, and the Company's performance indicators:
2023 Annual Report • Corporate Governance 660
Board of Directors
2019
2020
2021
2022
2023
António José Pereira
Redondo
Fixed remuneration (€)
319,203
655,699
668,349
651,780
707,196
Variable remuneration (€)
548,702
185,984
839,967
777,486
982,603
Total remuneration (€)
867,905
841,683
1,508,316
1,429,266
1,689,799
% variation
3.6%
-3.0%
79.2%
-5.2%
18.2%
Adriano Augusto da Silva
Silveira
Fixed remuneration (€)
297,108
313,172
319,214
319,214
238,006
Variable remuneration (€)
-
117,000
628,891
625,240
792,842
Total remuneration (€)
297,108
430,172
948,105
944,454
1,030,848
% variation
-25.2%
44.8%
120.4%
-0.4%
9.1%
José Fernando Morais
Carreira de Araújo
Fixed remuneration (€)
319,213
313,171
319,213
319,213
329,854
Variable remuneration (€)
554,110
175,663
599,173
623,780
717,151
Total remuneration (€)
873,324
488,834
918,386
942,993
1,047,005
% variation
8.6%
-44.0%
87.9%
2.7%
11.0%
Nuno Miguel Moreira de
Araújo Santos
Fixed remuneration (€)
319,199
313,157
319,199
319,199
329,850
Variable remuneration (€)
415,447
128,915
474,022
612,855
740,185
Total remuneration (€)
734,646
442,073
793,221
932,054
1,070,035
% variation
-16.2%
-39.8%
79.4%
17.5%
14.8%
João Paulo Araújo Oliveira
Fixed remuneration (€)
319,190
313,157
319,806
319,199
190,193
Variable remuneration (€)
485,485
121,627
582,448
567,308
718,958
Total remuneration (€)
804,675
434,784
902,254
886,507
909,151
% variation
4.4%
-46.0%
107.5%
-1.7%
2.6%
João Paulo Cabete
Gonçalves Lé
Fixed remuneration (€)
-
315,392
319,214
319,214
329,855
Variable remuneration (€)
-
15,074
524,141
602,857
735,822
Total remuneration (€)
-
330,466
843,355
922,071
1,065,677
% variation
-
100.0%
155.2%
9.3%
15.6%
Dorival Martins de Almeida
Fixed remuneration (€)
-
-
-
-
230,946
Variable remuneration (€)
-
-
-
-
-
Total remuneration (€)
-
-
-
-
230,946
% variation
-
-
-
-
100.0%
António Quirino Vaz Duarte
Soares
Fixed remuneration (€)
-
-
-
-
139,656
Variable remuneration (€)
-
-
-
-
-
Total remuneration (€)
-
-
-
-
139,656
% variation
-
-
-
-
100.0%
Manuel Soares Ferreira
Regalado
Fixed remuneration (€)
77,000
75,543
77,000
77,000
32,083
Variable remuneration (€)
-
-
-
-
-
Total remuneration (€)
77,000
75,543
77,000
77,000
32,083
% variation
0.0%
-1.9%
1.9%
0.0%
-58.3%
Maria Teresa Aliu Presas
Fixed remuneration (€)
56,023
75,522
77,000
77,000
77,000
Variable remuneration (€)
-
-
-
-
-
Total remuneration (€)
56,023
75,522
77,000
77,000
77,000
% variation
100.0%
34.8%
2.0%
0.0%
0.0%
Mariana Rita Antunes
Marques dos Santos
Fixed remuneration (€)
76,395
102,984
105,000
105,000
105,000
Variable remuneration (€)
-
-
-
-
-
Total remuneration (€)
76,395
102,984
105,000
105,000
105,000
% variation
100.0%
34.8%
2,0%
0.0%
0.0%
Sandra Maria Soares Santos
Fixed remuneration (€)
56,023
75,522
77,000
77,000
77,000
Variable remuneration (€)
-
-
-
-
-
Total remuneration (€)
56,023
75,522
77,000
77,000
77,000
% variation
100.0%
34.8%
2.0%
0.0%
0.0%
Ana Teresa Cunha de Pinho
Tavares Lehmann
Fixed remuneration (€)
-
-
-
-
47,707
Variable remuneration (€)
-
-
-
-
-
Total remuneration (€)
-
-
-
-
47,707
% variation
-
-
-
-
100.0%
Vítor Manuel Galvão Rocha
Novais Gonçalves
Fixed remuneration (€)
98,000
96,145
77,000
98,000
40,833
Variable remuneration (€)
-
-
-
-
-
Total remuneration (€)
98,000
96,145
77,000
98,000
40,833
% variation
0.0%
-1.9%
-19.9%
27.3%
-58.3%
Diogo António Rodrigues da
Silveira
Fixed remuneration (€)
259,033
-
-
-
-
Variable remuneration (€)
653,534
-
-
-
-
Total remuneration (€)
912,566
-
-
-
-
% variation
-19.8%
-
-
-
-
Luís Alberto Caldeira
Deslandes
Fixed remuneration (€)
77,000
-
-
77,000
-
Variable remuneration (€)
77,000
-
-
-
-
Total remuneration (€)
154,000
-
-
77,000
-
% variation
31.0%
-
-
100.0%
-100.0%
2023 Annual Report • Corporate Governance 661
Supervisory Board
2019
2020
2021
2022
2023
José Manuel Vitorino
Fixed Remuneration (€)
21,994
21,994
21,994
21,994
35,147
% variation
10.78%
0.00%
0.00%
0.00%
59.80%
Gonçalo Picão Caldeira
Fixed Remuneration (€)
16,002
16,002
16,002
16,002
25,593
Variação em %
0.00%
0.00%
0.00%
0.00%
59.94%
Maria da Graça Gonçalves
Fixed Remuneration (€)
16,002
16,002
16,002
16,002
25,593
% variation
70.26%
0.00%
0.00%
0.00%
59.94%
78. Amounts paid on any basis by other controlled, controlling or group companies or companies under
common control
It should be made clear that the amounts referred to in this paragraph relate only to companies not controlled by Navigator. Also
included are amounts to which Navigator and its governing bodies are not privy, as they relate to its shareholders, shareholders of
shareholders and other companies controlled by shareholders, provided that there are control relationships.
In 2023, the directors Ricardo Miguel dos Santos Pacheco Pires (1,499,519.51 euros), Hugo Alexandre Lopes Pinto (451,720.80
euros), Maria Isabel da Silva Marques Abranches Viegas (276,558.39 euros) and Vítor Paulo Paranhos Pereira (1,085,092.53
euros) earned remuneration in other companies in a control relationship or subject to common control. It should be clarified that
the other members of the Board of Directors did not receive remuneration from other companies in a group relationship with
Navigator, based on the definition of group as defined in Article 2(1)(g) of Decree-Law 158/2009 of 13 July, in accordance with
the provisions of Article 26g(2)(d) of the CVM.
79. Remuneration paid in the form of profit sharing and/or payment of bonuses, and the grounds on
which these bonuses and/or profit sharing were granted
The amount of remuneration paid by the Company in the form of profit-sharing and/or bonus payments corresponds to the
variable remuneration set out in point 77 of this Report, and these amounts were set on the basis of the Remuneration
Committee's actual application of the criteria described in chapter 2 of the Remuneration Policy.
80. Compensation paid or due to former executive directors for their dismissal during the year
No compensation was paid during the year, nor is any due from the Company to former executive directors for leaving office.
81. Indication of the annual remuneration earned, on an aggregate and individual basis, by the members
of the Company’s supervisory bodies, for the purposes of Law 28/2009 of 19 June
Fixed Remuneration
Variable Remuneration
Amount
(Euros)
Relative
Percentage
Amount
(Euros)
Relative
Percentage
José Manuel Vitorino
35,147
100%
0
0%
Gonçalo Picão Caldeira
25,593
100%
0
0%
Maria da Graça Gonçalves
25,593
100%
0
0%
82. Indication of remuneration earned in the reporting period by the Chairman of the General Meeting
The Chairman of the Board of the General Meeting only receives fixed remuneration, taking into account the number of meetings
of the General Meeting each year.
During 2023, the Chairman of the General Meeting received a fixed remuneration of €7,000 (seven thousand euros).
2023 Annual Report • Corporate Governance 662
V. Agreements with implications for remuneration
83. Contractual limits on severance pay for directors, and the respective relationship with the variable
remuneration component.
The Company has no contract with directors that limits or otherwise alters the supplementary legal regime for cases of
termination of office, with or without just cause. The Remuneration Policy approved by the Company's Remuneration Committee
stipulates that, in the event of directors leaving office, the supplementary legal regime in this area will apply.
Therefore, considering the absence of individual contracts with Directors in this area and the provisions of the aforementioned
Remuneration Policy, in the event of dismissal that is not due to a serious breach of duty by the Director or to the Director's
inability to fulfil his duties normally, the Company will be obliged to pay compensation under the general terms of the law, without
this compensation exceeding the amount of remuneration that he would presumably receive until the end of the period for which
he was elected.
Leaving office before the end of the term of office does not therefore give rise, directly or indirectly, to the payment to the
Director of any amounts other than those provided for by law.
84. Reference to the existence and description, with an indication of the amounts involved, of agreements
between the company and members of the board of directors and senior managers, within the
meaning of Article 29-R(3) of the Securities Code, which provide for compensation in the event of
resignation, unfair dismissal or termination of the employment relationship following a change of
control of the company (Article 29-H(1)(k)).
There are also no agreements between the Company and members of the board of directors and senior managers that provide for
compensation in the event of resignation, unfair dismissal or termination of the employment relationship following a change of
control of the Company.
VI. Stocks or stock option plans
85. Identification of plan and beneficiaries.
Not applicable, as there are no remuneration payments through share award plans or stock option plans.
86. Description of plan (terms of allocation, non-transfer of share clauses, criteria on the price of shares
and the price of exercising options, the period during which the options may be exercised, the
characteristics of the shares to be distributed, the existence of incentives to purchase shares and/or
exercise options).
Not applicable.
87. Stock-option rights for which the company’s workers and Employees are the beneficiaries.
Not applicable.
88. Control mechanisms in an employee ownership scheme insofar as voting rights are not directly
exercised by Employees (article 29-A (1) (e)).
There is no employee ownership scheme in Navigator.
2023 Annual Report • Corporate Governance 663
E. RELATED PARTY TRANSACTIONS AND CONFLICTS OF INTEREST
I. Control mechanisms and procedures
89. Procedures implemented by the Company for controlling related party transactions (reference is made
for this purpose to the concept deriving from IAS 24).
The Company has a Regulation on Conflicts of Interest and Related Parties Transactions, which defines the rules on conflicts of
interest and related parties transactions to which the Company is a party, in addition to the internal mechanisms the Company
has in place, for the purposes of complying with international accounting standard IAS 24 (Related Party Disclosures), and is
applicable, without prejudice to the obligations of the Company and its directors in terms of Insider Information, the legal regime
of the Company's business with directors, and the internal regulations on the Communication of Irregularities and other applicable
legislation in this area.
This Regulation was approved with the favourable and binding opinion of the Audit Board, taking into account the applicable legal
and regulatory framework in force on this matter, namely Law no. 50/2020, of 25 August, and Law no. 99-A/2021, of 31
December.
This Regulation is available for consultation on the Company's website (www.thenavigatorcompany.com/Investidores/Governo-da-
Sociedade).
Under the terms of the Regulation on Conflicts of Interest and Related Party Transactions, transactions between the Company and
related parties - qualified as such by the international accounting standards adopted under Regulation (EC) 1606/2002 of the
European Parliament and of the Council of 19 July, namely by the international accounting standard IAS 24 (Related Party
Disclosures) - are subject to the following approval procedures:
The following transactions are approved by the Executive Committee:
a) Loans made to the Company by its shareholder companies for an amount equal to or less than one hundred million
euros;
b) Transactions within the scope of the group taxation regime, with a value equal to or less than one hundred million euros;
c) Transactions carried out with controlled companies that consolidate accounts with the Company, with an individual or
cumulative annual value equal to or less than two per cent of the controlled company's turnover, calculated in accordance
with the last approved annual accounts;
d) Loans to controlled companies that consolidate accounts with the Company, as well as underwriting their debt, (i) with a
term of less than six months, (ii) with an individual or cumulative annual value of less than one fifth of the turnover of the
respective controlled company, calculated in accordance with the last approved annual accounts, and which does not
exceed one hundred million euros, and (iii) provided that the controlled company guarantees credit lines for the
repayment of the operation; and
e) Any other transactions whose individual or cumulative annual value is equal to or less than one million euros.
Transactions that (i) do not fall within the scope of the preceding paragraphs, or (ii) fall within those paragraphs but are not
carried out as part of the Company's day-to-day business, are approved by resolution of the Board of Directors, preceded by a
favourable opinion from the Audit Board.
Under the terms of the aforementioned Regulation, transactions may only be carried out under market conditions and if there is a
justified self-interest on the part of the Company.
2023 Annual Report • Corporate Governance 664
With regard to the procedures for informing, verifying and formalising related parties transactions, the Regulation states that:
a) The Board of Directors is informed every six months of resolutions relating to transactions in which it has not
participated;
b) The Audit Board is informed of transactions carried out by the Company for the purposes of verifying that the transactions
comply with the regime described above and with the applicable legislation and regulations, and related parties may not
take part in the verification in question;
c) It is also the responsibility of the Company's managers who intervene in the formalisation of transactions with related
parties to ensure that the transactions are previously submitted to the resolutions required by the regulations and
applicable laws and regulations; and
d) The formalisation and execution of resolutions on related parties transactions must be particularly monitored by the
Executive Committee.
The Company will disclose transactions that must be disclosed under the terms of the applicable legislation and regulations,
namely because they have not fulfilled any of the legal requirements, and according to the value in question, under the terms and
within the timeframe laid down in the applicable legislation and regulations.
The Regulation shall not apply to transactions treated as exempt under applicable laws and regulations.
As part of its ongoing commitment to ethics and integrity, Navigator is responsible for adopting measures to ensure impartiality in
decision-making processes, preventing cases of potential conflict of interest involving the Company or its employees.
This commitment is reflected in the way the Company manages conflicts of interest and is materialised through:
- Implementation of clear policies and procedures that define what constitutes a conflict of interest and establish guidelines
for its identification, disclosure and resolution;
- Promoting an organisational culture that values transparency, honesty and integrity in all business interactions and
decisions made;
- Regular training for all employees on how to recognise, report and resolve conflicts of interest appropriately;
- Maintaining communication channels where employees and interested parties can report concerns about possible conflicts
of interest.
With regard to the procedures applicable to conflicts of interest, the Regulation on Conflicts of Interest and Related Parties
Transactions stipulates that a situation of conflict exists whenever a manager is in a position which, viewed objectively, is likely to
compromise their independence and cause their judgement to be influenced by interests other than the interests of the Company,
whether or not these interests are in their own assets or those of third parties. For the purposes of their adequate prevention,
identification and resolution, the manager must:
- Communicate the existence of a conflict of interest, even if potential, to their hierarchical superior or, in the case of a
member of a collegiate body, to the body in question, under the terms of the respective operating regulations; and
- Refrain from interfering or participating in the event of a conflict of interest and, in the case of a decision-making process,
record this impediment in the minutes or other written document documenting the decision, without prejudice to the duty
to provide the information and clarifications requested by the body in question and its members.
- In addition, all the operating regulations of the governing bodies and internal committees contain provisions on conflicts
of interest, in line with the rules described above.
2023 Annual Report • Corporate Governance 665
In 2023, the Company strengthened its internal control mechanisms with regard to identifying situations of potential conflict of
interest by implementing an additional procedure for reporting and verifying these situations. It has mapped out the employees
who, by virtue of their duties, are in situations that may give rise to conflicts of interest, and then identified third parties who may
constitute related parties in transactions with Navigator, periodically updating this analysis.
In addition, all the operating regulations of the governing bodies and internal committees contain provisions on conflicts of
interest, in line with the rules described above.
90. Indication of transactions subject to control in the reporting period.
In 2023, there were no other transactions subject to control given that, in accordance with the criteria referred to in item 91
below, none of the Company’s transactions with qualifying shareholders or any other related entities, under article 20 of the
Securities Code, were subject to prior clearance by the Audit Board. It should also be noted that there was no business between
the Company and qualifying shareholders outside normal market conditions.
91. Description of the procedures and criteria applicable to intervention by the supervisory body for the
purposes of prior evaluation of transactions to be carried out between the Company and qualifying
shareholders or related entities, under article 20 of the Securities Code
The procedures and criteria applicable to intervention by the supervisory body for the purposes of prior evaluation of transactions
to be carried out between the Company and qualifying shareholders or related entities, under article 20 of the Securities Code, are
described in item 89.
II. Details of Transactions
92. Indication of the place in the financial reports and account where information is available on related
party transactions, in accordance with IAS 24, or, alternatively, reproduction of this information.
The information available on related party transactions is included in the Company’s Report and Accounts, in Note 11.3 of the
Notes to the Consolidated Financial Statements.
2023 Annual Report • Corporate Governance 666
Part II
Corporate Government Assessment
1. IDENTIFICATION OF THE CORPORATE GOVERNANCE CODE ADOPTED
In 2023, Navigator adopted the Corporate Governance Code of the Portuguese Institute of Corporate Governance (“IPCG”) of
2018, as it has done since 2018, in accordance with and for purposes of article 2 of CMVM Regulation no. 4/2013.
The adopted Code was revised by the IPCG in 2020 and 2023. It is released by the IPCG and can be accessed on the respective
website, at https://cgov.pt/images/ficheiros/2023/en_cgs_revisao-de-2023_ebook.pdf.
2. ANALYSIS OF COMPLIANCE WITH THE CORPORATE GOVERNANCE CODE
ADOPTED
Navigator has adopted most of the IPCG Corporate Governance Code Recommendations. The Principles and Recommendations of
this Code are listed in the table below, with indication of the Recommendations adopted, not applicable and not adopted, and
reference is made to the points in this Report where the matter is developed. In relation to the Recommendations not adopted,
justification for non-adoption and a mechanism equivalent to the adopted “explain”.
Compliance
Comments
General Principles
A. Corporate governance promotes and fosters the pursuit of the respective long-term interests, performance and sustained development, and is
structured in order to allow the interests of shareholders and other investors, staff, clients, creditors, suppliers and other stakeholders to be weighed,
contributing to the strengthening of confidence in the quality, transparency and ethical standards of administration and supervision, as well as to the
sustainable development of the community the companies form part of and to the development of the capital market.
B. The Code is voluntary and compliance is based on the comply or explain principle, applicable to all Recommendations.
CHAPTER I – Company’s relationship with Shareholders, Interested Parties and the Community at Large
Principles
I.A. In their organisation, operation and in the definition of their strategy, companies shall contribute to the pursuit of the Sustainable
Development Goals defined within the framework of the United Nations Organisation, in terms that are appropriate to the nature of their activity and
their size. In their organisation, operation and in the definition of their strategy, companies shall contribute to the pursuit of the Sustainable
Development Goals defined within the framework of the United Nations Organisation, in terms that are appropriate to the nature of their activity and
their size.
I.B. The company periodically identifies, measures and seeks to prevent negative effects related to the environmental and social impact of the
operation of its activity, in terms that are appropriate to the nature and size of the company.
I.C. In its decision-making processes, the management body considers the interests of shareholders and other investors, employees, suppliers
and other stakeholders in the activity of the company.
Recommendations
I.1. The company specifies in what terms its strategy seeks to ensure the fulfilment of its long-term
objectives and what are the main contributions resulting herefrom for the community at large.
Adopted
Part I, no. 21
Annnual Report, Ch.
6.2.4 – Our Agenda and
Route 2030 and Ch. 10.1
Route 2030
2023 Annual Report • Corporate Governance 667
Compliance
Comments
I.2. The company identifies the main policies and measures adopted with regard to the
fulfilment of its environmental and social objectives.
Adopted
Part I, no. 21, 29, 49 and
53
Annual Report Section 6.
Sustainability Statement,
esp. policies mentioned
in Ch. 6.2.1 –
Sustainability
Governance
CHAPTER II – Composition and Functioning of the Corporate Bodies
II.1 – Information
Principle
II.1.A. Companies and, in particular, their Directors treat shareholders and other investors in an equitable manner, namely by ensuring mechanisms and
procedures for the adequate treatment and disclosure of information.
Recommendation
I.1.1. The company establishes mechanisms to adequately and rigorously ensure the timely
circulation or disclosure of the information required to its bodies, the company secretary,
shareholders, investors, financial analysts, other stakeholders and the market at large.
Adopted
Part I, no. 21, 22, 38
and 56 to 65
Annual Report, 3.1, 4.5,
5 and 6.2.3
II.2 – Diversity in the Composition and Functioning of the Corporate Bodies
Principles
II.2.A. Companies have adequate and transparent decision-making structures, ensuring maximum efficiency in the functioning of their bodies and
committees
89
.
II.2.B. Companies ensure diversity in the composition of their management and supervisory bodies and the adoption of individual merit criteria in the
respective appointment processes, which shall be the exclusive responsibility of shareholders.
II.2.C. Companies ensure that the performance of their bodies and committees is duly recorded, namely in minutes of meetings, that allow for
knowing not only the sense of the decisions taken but also their grounds and the opinions expressed by their members.
Recommendations
II.2.1. Companies establish, previously and abstractly, criteria and requirements regarding the
profile of the members of the corporate bodies that are adequate to the function to be performed,
considering, notably, individual attributes (such as competence, independence, integrity, availability
and experience), and diversity requirements (with particular attention to equality between men and
women), that may contribute to the improvement of the performance of the body and of the
balance in its composition.
Adopted
Part I no. 16
II.2.2. The management and supervisory bodies and their internal committees are governed by
regulations – notably regarding the exercise of their powers, chairmanship, the frequency of
meetings, operation and the duties framework of their members – fully disclosed on the website of
the company, whereby minutes of the respective meetings shall be drawn up.
Adopted
Part I no. 22, 27, 29, 34
and 38
II.2.3. The composition and number of meetings for each year of the management and
supervisory bodies and of their internal committees are disclosed on the website of the company.
Adopted
Part I no. 22, 27, 34 and
61
II.2.4. The companies adopt a whistle-blowing policy that specifies the main rules and
procedures to be followed for each communication and an internal reporting channel that also
includes access for non- employees, as set forth in the applicable law.
Adopted
Part I no. 49, 50, 54 and
89
89
Committees, company committees, specialised committees or internal committees are understood to mean committees made up for the most part of members of the
corpo- rate bodies, to whom the company attributes company functions within the company ambit, excluding the Remuneration Committee appointed by the General
Meeting, pursuant to Article 399 of the Portuguese Commercial Companies Code, unless the Code expressly states otherwise.
2023 Annual Report • Corporate Governance 668
Compliance
Comments
II.2.5. The companies have specialised committees for matters of corporate governance,
remuneration, appointments of members of the corporate bodies and performance assessment,
separately or cumulatively. If the Remuneration Committee provided for in Article 399 of the
Portuguese Commercial Companies Code has been set up, the present Recommendation can be
complied with by assigning to said committee, if not prohibited by law, powers in the above
matters.
Adopted
Part I no. 21, 27 and 29
II.3 – Relations between Corporate Bodies
Principle
II.3.A. The corporate bodies create the conditions for them to act in a harmonious and articulated manner, within the scope of their responsibilities, and
with information that is adequate for carrying out their functions.
Recommendations
II.3.1. The Articles of Association or equivalent means adopted by the company set out the
mechanisms to ensure that, within the limits of the applicable laws, the members of the
management and supervisory bodies have permanent access to all necessary information to assesss
the performance, situation and development prospects of the company, including, specifically, the
minutes of the meetings, the documentation supporting the decisions taken, the convening notices
and the archive of the meetings of the executive management body, without prejudice to access to
any other documents or persons who may be requested to provide clarification.
Adopted
Part I no. 21, 22 and 38
II.3.2. Each body and committee of the company ensures, in a timely and adequate manner,
the interorganic flow of information required for the exercise of the legal and statutory powers of
each of the other bodies and committees.
Adopted
Part I no. 21, 22, 27 and
38
II.4 – Conflicts of Interests
Principle
II.4.A. The existence of current or potential conflicts of interest between the members of bodies or committees and the company shall be prevented,
ensuring that the conflicted member does not interfere in the decision-making process.
Recommendations
II.4.1. By internal regulation or an equivalent hereof, the members of the management and
supervisory bodies and of the internal committees shall be obliged to inform the respective body or
committee whenever there are any facts that may constitute or give rise to a conflict between their
interests and the interest of the company.
Adopted
Part I no. 89
II.4.2. The company adopts procedures to ensure that the conflicted member does not interfere
in the decision-making process, without prejudice to the duty to provide information and
clarification requested by the body, committee or respective members.
Adopted
Part I no. 89
II.5 – Related Party Transactions
Principle
II.5.A. Transactions with related parties shall be justified by the interest of the company and shall be carried out under market conditions, being subject
to principles of transparency and adequate supervision.
Recommendation
II.5.1. The management body discloses, in the corporate governance report or by other publicly
available means, the internal procedure for verification of transactions with related parties.
Adopted
Part I no. 38 and 89 to
81
Chapter III – SHAREHOLDERS AND GENERAL MEETING
2023 Annual Report • Corporate Governance 669
Compliance
Comments
Principles
III.A. The adequate involvement of shareholders in corporate governance constitutes a positive factor for the efficient functioning of the company and
the achievement of its corporate objective.
III.B. The company promotes the personal participation of shareholders at general meetings as a space for reflection on the company and for
shareholders to communicate with the bodies and committees of the company.
III.C. The company implements adequate means for shareholders to attend and vote at the general meeting without being present in person, including
the possibility of sending in advance questions, requests for clarification or information on the matters to be decided on and the respective proposals.
Recommendations
III.1. The company does not set an excessively large number of shares to be entitled to one
vote and informs in the corporate governance report of its choice whenever each share does not
carry one vote.
Adopted
Part I no. 12 and 13
III.2. The company that has issued special plural voting rights shares identifies, in its
corporate governance report, the matters that, pursuant to the company’s Articles of Association,
are excluded from the scope of plural voting.
Not applicable
Not applicable
III.3. The company does not adopt mechanisms that hinder the passing of resolutions by its
shareholders, specifically fixing a quorum for resolutions greater than that foreseen by law.
Adopted
Part I, no. 14
III.4. The company implements adequate means for shareholders to participate in the general
meeting without being present in person, in proportion to its size.
Adopted
Part I, no. 12
III.5. The company also implements adequate means for the exercise of voting rights without
being present in person, including by correspondence and electronically.
Adopted
Part I, no. 12
III.6. The Articles of Association of the company that provide for the restriction of the number
of votes that may be held or exercised by one single shareholder, either individually or jointly with
other shareholders, shall also foresee that, at least every five years, the general meeting shall
resolve on the amendment or maintenance of such statutory provision – without quorum
requirements greater than that provided for by law – and that in said resolution, all votes issued
are to be counted, without applying said restriction.
Not applicable
Not applicable
III.7. The company does not adopt any measures that require payments or the assumption of
costs by the company in the event of change of control or change in the composition of the
management body and which are likely to damage the economic interest in the transfer of shares
and the free assessment by shareholders of the performance of the Directors.
Adopted
Parte I, no. 4, 83 and 84
Chapter IV – MANAGEMENT
IV.1 – Management Bodies and Executive Directors
Principles
IV.1.A. The day-to-day management of the company shall be the responsibility of executive directors with the qualifications, skills, and experience
appropriate for the position, pursuing the corporate goals and aiming to contribute to its sustainable development.
IV.1.B. The determination of the number of executive directors shall take into account the size of the company, the complexity and geographical
dispersion of its activity and the costs, bearing in mind the desirable flexibility in the running of the executive management.
Recommendations
IV.1.1. The management body ensures that the company acts in accordance with its object and
does not delegate powers, notably with regard to:
i) definition of the corporate strategy and main policies of the company;
ii) organisation and coordination of the corporate structure;
iii) matters that shall be considered strategic due to the amounts, risk and particular characteristics
involved.
Adopted
Part I, no. 21 and 22
IV.1.2. The management body approves, by means of regulations or through an equivalent
mechanism, the performance regime for executive directors applicable to the exercise of executive
functions by them in entities outside the group.
Adopted
Part I, no. 22
IV.2 – Management Body and Non-Executive Directors
2023 Annual Report • Corporate Governance 670
Compliance
Comments
Principles
IV.2.A. For the full achievement of the corporate objective, the non-executive directors shall exercise, in an effective and judicious manner, a function of
general supervision and of challenging the executive management, whereby such performance shall be complemented by commissions in areas that are
central to the governance of the company.
IV.2.B. The number and qualifications of the non-executive directors shall be adequate to provide the company with a balanced and appropriate diversity
of professional skills, knowledge and experience.
Recommendations
IV.2.1. Notwithstanding the legal duties of the chairman of the board of directors, if the latter is
not independent, the independent directors – or, if there are not enough independent directors, the
non- executive directors – shall appoint a coordinator among themselves to, in particular (i) act,
whenever necessary, as interlocutor with the chairman of the board of directors and with the other
directors, (ii) ensure that they have all the conditions and means required to carry out their duties,
and (iii) coordinate their performance assessment by the administration body as provided for in
Recommendation VI.1.1.; alternatively, the company may establish another equivalent mechanism
to ensure such coordination.
Adopted
Part I no. 18
IV.2.2. The number of non-executive members of the management body shall be adequate to
the size of the company and the complexity of the risks inherent to its activity, but sufficient to
ensure the efficient performance of the tasks entrusted to them, whereby the formulation of this
adequacy judgement shall be included in the corporate governance report.
Adopted
Part I, no. 18, 31, 50,
51 and 54
IV.2.3. The number of non-executive directors is greater than the number of executive
directors.
Adopted
Part I, no. 18
IV.2.4. The number of non-executive directors that meet the independence requirements is plural
and is not less than one third of the total number of non-executive directors. For the purposes of
the present Recommendation, a person is deemed independent when not associated to any specific
interest group in the company, nor in any circumstances liable to affect his/her impartiality of
analysis or decision, in particular in virtue of:
i. Having carried out, continuously or intermittently, functions in any corporate body of the
company for more than twelve years, with this period being counted regardless of whether or not it
coincides with the end of the mandate;
ii. Having been an employee of the company or of a company that is controlled by or in a group
relationship with the company in the last three years;
iii. Having, in the last three years, provided services or established a significant business
relationship with the company or with a company that is controlled by or in a group relationship
with the company, either directly or as a partner, director, manager or officer of a legal person;
iv. Being the beneficiary of remuneration paid by the company or by a company that is controlled
by or in a group relationship with the company, in addition to remuneration stemming from the
performance of the functions of director;
v. Living in a non-marital partnership or being a spouse, relative or kin in a direct line and up to
and including the 3rd degree, in a collateral line, of directors of the company, of directors of a legal
person owning a qualifying stake in the company or of natural persons owning, directly or indirectly,
a qualifying stake;
vi. Being a holder of a qualifying stake or representative of a shareholder that is holder of a
qualifying stake.
Adopted
Part I, no. 18
IV.2.5. The provisions of paragraph (i) of the previous Recommendation do not prevent the
qualification of a new Director as independent if, between the end of his/her functions in any
corporate body and his/her new appointment, at least three years have elapsed (cooling-off
period).
Adopted
Part I, no. 18
Chapter V – SUPERVISION
Principles
V.A. The supervisory body carries out permanent supervision activities of the administration of the company, including, also from a preventive
perspective, the monitoring of the activity of the company and, in particular, the decisions of fundamental importance for the company and for the full
achievement of its corporate object.
V.B. The composition of the supervisory body provides the company with a balanced and adequate diversity of professional skills, knowledge and
experience.
2023 Annual Report • Corporate Governance 671
Compliance
Comments
Recommendations
V.1. With due regard for the competences conferred to it by law, the supervisory body takes
cognisance of the strategic guidelines and evaluates and renders an opinion on the risk policy, prior
to its final approval by the administration body.
Adopted
Part I, no. 38 and 50
V.2. The number of members of the supervisory body and of the financial matters committee
should be adequate in relation to the size of the company and the complexity of the risks inherent
to its activity, but sufficient to ensure the efficiency of the tasks entrusted to them, and this
adequacy judgement should be included in the corporate governance report.
Adopted
Part I, no. 18, 31, 50,
51 and 54
Chapter VI – PERFORMANCE ASSESSMENT, REMUNERATION AND APPOINTMENTS
VI.1. Annual Performance Assessment
Principle
VI.1.A. The company promotes the assessment of performance of the executive body and its individual members as well as the overall performance of
the management body and its specialised committees.
Recommendation
VI.1.1. The management body – or committee with relevant powers, composed of a majority of
non-executive members – evaluates its performance on an annual basis, as well as the performance
of the executive committee, of the executive directors and of the company committees, taking into
account the compliance with the strategic plan of the company and of the budget, the risk
management, its internal functioning and the contribution of each member to that end, and the
relationship between the bodies and committees of the company.
Adopted
Part I, no. 22, 24
and 25
VI.2. Remunerações
Principles
VI.2.A. The remuneration policy for members of the management and supervisory bodies shall allow the company to attract qualified professionals at a
cost that is economically justified by their situation, provide for the alignment with the interests of the shareholders – taking into consideration the
wealth effectively created by the company, the economic situation and the market situation – and shall constitute a factor for developing a culture of
professionalism, sustainability, merit promotion and transparency in the company.
V.2.B. Taking into consideration that the position of directors is, by nature, a remunerated position, directors shall receive a remuneration:
i) that adequately rewards the responsibility undertaken, the availability and competence placed at the service of the company;
ii) that ensures a performance aligned with the long-term interests of shareholders and promotes the sustainable performance of the company; and
iii) that rewards performance.
Recommendations
VI.2.1. The company constitutes a remuneration committee, whose composition shall ensure its
independence from the board of directors, whereby it may be the remuneration committee
appointed pursuant to Article 399 of the Portuguese Commercial Companies Code.
Adopted
Part I no. 24, 27, 66 and
67
VI.2.2. The remuneration of the members of the management and supervisory bodies and of
the company committees is established by the remuneration committee or by the general meeting,
upon proposal of such committee.
Adopted
Part I no. 24, 27, 66 and
67
VI.2.3. The company discloses in the corporate governance report, or in the remuneration
report, the termination of office of any member of a body or committee of the company, indicating
the amounts of all costs related to the termination of office borne by the company, for any reason,
during the financial year in question.
Adopted
VI.2.3.(I) Part I no. 17,
18 and 21
VI.2.3.(II) Not applicable
VI.2.4. In order to provide information or clarification to shareholders, the president or another
member of the remuneration committee shall be present at the annual general meeting and at any
other general meeting at which the agenda includes a matter related to the remuneration of the
members of bodies and committees of the company, or if such presence has been requested by
shareholders.
Adopted
Part I no. 76
2023 Annual Report • Corporate Governance 672
Compliance
Comments
VI.2.5. Within the budget constraints of the company, the remuneration committee may freely
decide to hire, on behalf of the company, consultancy services that are necessary or convenient for
the performance of its duties.
Adopted
Part I no. 67
VI.2.6. The remuneration committee ensures that such services are provided independently.
Adopted
Part I no. 67
VI.2.7. The providers of said services are not hired by the company itself or by any company
controlled by or in group relationship with the company, for the provision of any other services
related to the competencies of the remuneration committee, without the express authorisation of
the committee.
Adopted
Part I no. 67
VI.2.8. In view of the alignment of interests between the company and the executive directors,
a part of their remuneration has a variable nature that reflects the sustained performance of the
company and does not encourage excessive risk-taking.
Adopted
Part I no. 70 and 71
Part III Annex II
VI.2.9. A significant part of the variable component is partially deferred over time, for a period
of no less than three years, and is linked to the confirmation of the sustainability of performance, in
terms defined in the remuneration policy of the company.
Not adopted
Explanation of not
adopted
Recommendation below
VI.2.10. When the variable remuneration includes options or other instruments directly or
indirectly subject to share value, the start of the exercise period is deferred for a period of no less
than three years.
Not applicable
Not applicable
VI.2.11. The remuneration of non-executive directors does not include any component whose
value depends on the performance of the company or of its value.
Adopted
Part I no. 71
VI.3. Appointments
Principle
VI.3.A. Regardless of the method of appointment, the knowledge, experience, professional background, and availability of the members of the corporate
bodies and of the senior management
90
shall be adequate for the job to be performed.
Recommendations
VI.3.1. The company promotes, in the terms it deems adequate, but in a manner susceptible of
demonstration, that the proposals for the appointment of members of the corporate bodies are
accompanied by grounds regarding the suitability of each of the candidates for the function to be
performed.
Adopted
Part I no. 16
VI.3.2. The committee for the appointment of members of corporate bodies includes a majority
of independent directors.
Not adopted
Explanation of not
adopted
Recommendation below
VI.3.3. Unless it is not justified by the size of the company, the task of monitoring and
supporting the appointments of senior managers shall be assigned to an appointment committee.
Adopted
Part I no. 29
VI.3.4. The committee for the appointment of senior management provides its terms of
reference and promotes, to the extent of its powers, the adoption of transparent selection
processes that include effective mechanisms for identifying potential candidates, and that for
selection those are proposed who present the greatest merit, are best suited for the requirements
of the position and promote, within the organisation, an adequate diversity including regarding
gender equality.
Adopted
Part I no. 16 and 29
Chapter VII – INTERNAL CONTROL
90
In this Code, senior management is understood as persons who are part of the senior management as defined (under the name “management”) by European and
national legislation regarding listed companies, excluding members of the corporate bodies.
2023 Annual Report • Corporate Governance 673
Compliance
Comments
Principle
VII.A. Based on the medium and long-term strategy, the company shall establish a system of internal control, comprising the functions of risk
management and control, compliance and internal audit, which allows for the anticipation and minimisation of the risks inherent to the activity
developed.
Recommendations
VII.1. The management body discusses and approves the strategic plan and risk policy of the
company, which includes setting limits in matters of risk-taking.
Adopted
Part I no. 22, 24 and 50,
54,
VII.2. The company has a specialised committee or a committee composed of specialists in risk
matters, which reports regularly to the management body.
Adopted
Part I no. 27, 29 and 50
VII.3. The supervisory body is organised internally, implementing periodic control mechanisms
and procedures, in order to ensure that the risks efectively incurred by the company are consistent
with the objectives set by the administration body.
Adopted
Part I no. 38, 50 and 54
VII.4. The internal control system, comprising the risk management, compliance, and internal
audit functions, is structured in terms that are adequate to the size of the company and the
complexity of the risks inherent to its activity, whereby the supervisory body shall assess it and,
within the ambit of its duty to monitor the effectiveness of this system, propose any adjustments
that may be deemed necessary.
Adopted
Part I no. 50 to 52, 54
and 55
VII.5. The company establishes procedures of supervision, periodic assessment and
adjustment of the internal control system, including an annual assessment of the degree of internal
compliance and performance of such system, as well as the prospects for changing the previously
defined risk framework.
Adopted
Part I no. 38 and 49 to
55
VII.6. Based on its risk policy, the company sets up a risk management function, identifying (i)
the main risks to which it is subject in the operation of its business, (ii) the probability of their
occurrence and respective impact, (iii) the instruments and measures to be adopted in order to
mitigate such risks, and (iv) the monitoring procedures, aimed at following them up.
Adopted
Part I no. 38 and 49 to
55
VII.7. The company establishes processes to collect and process data related to the
environmental and social sustainability in order to alert the management body to risks that the
company may be incurring and propose strategies for their mitigation.
Adopted
Part I no. 21, 25, 29, 30
and 50 to 54
VII.8. The company reports on how climate change is considered within the organisation and
how it takes into account the analysis of climate risk in the decision-making processes.
Adopted
Part I no. 21, 29, 30 and
50 to 54
Annual Report Ch. 6.3.1.
EU Taxonomy,6.3.2.
Climate change, and
10.6. Alignment with
TCFD (Task Force on
Climate-related Financial
Disclosures)
recommendations
VII.9. The company informs in the corporate governance report on the manner in which
artificial intelligence mechanisms have been used as a decision-making tool by the corporate
bodies.
Adopted
Part I no. 29, 50 and 53
VII.10. The supervisory body pronounces on the work plans and resources allocated to the
services of the internal control system, including the risk management, compliance, and internal
audit functions, and may propose adjustments as deemed necessary.
Adopted
Part I no. 38 and 50
VII.11. The supervisory body is the addressee of reports made by the internal control services,
including the risk management, compliance, and internal audit functions, at least when matters
related to accountability, identification or resolution of conflicts of interest and detection of potential
irregularities are concerned.
Adopted
Part I no. 45 and 50
Chapter VIII – INFORMATION AND STATUTORY AUDIT OF THE ACCOUNTS
VIII.1. Information
2023 Annual Report • Corporate Governance 674
Compliance
Comments
Principles
VIII.1.A. The supervisory body, diligently and with independence, ensures that the management body observes its responsibilities in choosing policies
and adopting appropriate accounting criteria and establishing adequate systems for financial and sustainability reporting, and for internal control,
including risk management, compliance and internal audit.
VIII.1.B. The supervisory body promotes a proper articulation between the work of the internal audit and that of the statutory audit of accounts.
Recommendation
VIII.1.1. The regulations of the supervisory body requires that the supervisory body monitors the
suitability of the process of preparation and disclosure of information by the management body,
including the appropriateness of accounting policies, estimates, judgements, relevant disclosures
and their consistent application from financial year to financial year, in a duly documented and
reported manner.
Adopted
Part I no. 38
VIII.2. Statutory Audit and Supervision
Principle
VIII.2.A. It is the responsibility of the supervisory body to establish and monitor formal, clear, and transparent procedures as to the relationship between
the company and the statutory auditor and the supervision of compliance, by the statutory auditor, with the rules of independence imposed by law and
by professional standards.
Recommendations
VIII.2.1. By means of regulation, the supervisory body defines, in accordance with the applicable
legal regime, the supervisory procedures to ensure the independence of the statutory auditor.
Adopted
Part I no. 37, 38 and 46
VIII.2.2. The supervisory body is the main interlocutor of the statutory auditor within the
company and the first addressee of the respective reports, and is competent, namely, for proposing
the respective remuneration and ensuring that adequate conditions for the provision of the services
are in place within the company.
Adopted
Part I no. 38 and 45
VIII.2.3. The supervisory body annually evaluates the work carried out by the statutory auditor,
its independence and suitability for the exercise of its functions and shall propose to the competent
body its dismissal or termination of the contract for the provision of its services whenever there is
just cause to do so.
Adopted
Part I no. 38 and 45
2023 Annual Report • Corporate Governance 675
COMPLY OR EXPLAIN
Explanation of non adoption of recommendations
VI.2.9. A significant part of the variable component is partially deferred over time, for a period of no less
than three years, and is linked to the confirmation of the sustainability of performance, in terms
defined in the remuneration policy of the company.
The explanation for the non-adoption of this recommendation is set out in the statement on the remuneration policy in force,
which corresponds to Annex 2 to this Report, and reads as follows:
“Several writings sustain profusely the deferral of the payment of the variable part of remuneration to a later time, which will
enable the establishment of a direct relation between remuneration and the impact of management on the Company over a longer
period.
We accept this principle as theoretically sound, but the historical element, associated to the stability and the practice that has
been followed successfully for years without the element of deferral, leads us to not adopt that option for the time being.”
The Company has not therefore accepted this recommendation, without prejudice to ensuring the substance which justifies it to
an even greater extent than would result from compliance with it.
It should also be noted that Navigator's consolidated results for the financial year have repeatedly and consistently been very
positive, demonstrating the sustainability of performance which the Recommendation seeks to safeguard. It follows from this
background that the possible partial deferral for a period of no less than three years of the variable component of remuneration
would have no impact on the right to the variable component for Navigator's directors.
However, it should be clarified that Navigator is currently analyzing the model for deferring payment of part of the variable
remuneration with a view to its possible implementation.
VI.3.2. The committee for the appointment of members of corporate bodies includes a majority of
independent directors.
The Company's Nominations and Evaluation Committee includes four non-executive directors, but only one is independent -
Mariana Rita Antunes Marques dos Santos. In choosing the members of this Committee, preference was given to a diversity of
profiles (age, gender, qualifications, experience and professional career), ensuring that all of them have full impartiality of analysis
and decision, and demonstrated integrity of character.
The Company believes that this diversity of profiles, together with the fact that the Nominations and Evaluation Committee uses,
whenever necessary, market studies and the analysis of comparable situations within the Group, is sufficient to guarantee that its
analyses are in line with the best practices and strengthen independent and impartial decision-making.
2023 Annual Report • Corporate Governance 676
Part III
Other Information
There are no other elements or additional information that are relevant to the understanding of the governance model and
practices adopted.
2023 Annual Report • Corporate Governance 677
ANNEX 1
1) DISCLOSURES REFERRED TO IN ARTICLES 447 OF THE COMPANIES’ CODE (WITH REFERENCE TO 2023)
Securities issued by Company and held by company officers:
António José Pereira Redondo: 6000 shares
Adriano Augusto da Silva Silveira: 2000 shares
2) INFORMATION ON OWN SHARES (required by Articles 66 and 324 no. 2 of the Companies Code)
On 31 December 2023, Navigator did not hold any own shares.
2023 Annual Report • Corporate Governance 678
ANNEX 2
REMUNERATION POLICY OF THE DIRECTORS AND THE AUDITORS
OF THE NAVIGATOR COMPANY (2023 TO 2025)
The Remuneration Committee of The Navigator Company,
S.A. (The Navigator Company) has analysed and reviewed
the Remuneration Policy for its directors and auditors
adopted at The Navigator Company's Annual General
Meeting of 2021 to be in force from 2021 to 2024, in view of
strengthening its alignment with sustainability and
preserving Company's long-term interests in line with good
market practices, having decided to replace the current
Policy with a new Remuneration Policy to be in force from
2023 to 2025, in order to make its period of application
coincide with the mandate of the governing bodies.
The remuneration policy is the exclusive responsibility of the
Remuneration Committee, which has three members, all
independent from the Board. According to the law, it must
be approved by the General Meeting at least every four
years and whenever a relevant change occurs.
In its work, namely in determining, reviewing and applying
the Policy, the Remuneration Committee complies with
applicable legislation and The Navigator Company's current
policies and regulations, namely the regulation on Conflicts
of Interest and Related Party Transactions, which sets out
rules for preventing, identifying and resolving conflicts of
interest between the Company and its managers.
1. General Principles
This Remuneration Policy is founded on the following general
principles that guide the setting of the remuneration of the
governing bodies:
(a) Duties performed.
The duties performed by each member of the governing
bodies cover both the functions in a formal sense and the
duties in the broader sense of the concrete level of
responsibility of the position held, considering different
criteria, such as the commitment and time dedicated, the
nature, size, complexity, and skills required for the function,
or the added value to the company that results from a
specific intervention or institutional representation.
The fact that time is spent by the officer on duties performed
in other controlled companies also cannot be taken out of
the equation, due to the added responsibility this represents
and to the existence of another source of income.
(b) The state of the company’s affairs.
The size of the company and the inevitable complexity of the
related management responsibilities are clearly relevant
aspects of the economic situation, understood in the
broadest sense. These aspects have implications for the
need to suitably remunerate directors holding high
managerial duties, considering the size and complexity of
the business models.
(c) Market criteria.
It is essential to be able to attract, develop and retain the
best professionals. Consequently, the Remuneration Policy
must competitive and appealing in order to ensure the
legitimate interests of individuals are aligned with The
Navigator Company’s interests and the creation of
sustainable value for shareholders.
Given its characteristics and size, the market criteria and
practices to be taken into account are, in The Navigator
Company 's case, both national and international. In order to
keep up to date with these practices, The Navigator
Company regularly uses market research and benchmarking.
In this context, the different components of the directors’
remunerations are calculated at least based on the
remuneration of the directors of the Portuguese companies
listed on the PSI Index, while also taking into account, at
each moment, the remuneration conditions applied in other
companies with characteristics similar to those of The
Navigator Company.
2023 Annual Report • Corporate Governance 679
The remuneration system in place at The Navigator
Company, in particular this Policy, contributes to the
implementation of the business strategy of The Navigator
Company and, in the long term, to the alignment of the
interests of members of the management body with those of
the Company and its sustainability, in particular for the
reasons set out below.
Firstly, because the remuneration is intended to be fair and
equitable in the light of the principles set out, and secondly,
because it lays down the evaluation criteria (indicators
defined by the Remuneration Committee), which are aligned
with the Company’s own strategic objectives. Such indicators
help to align the performance of the members of its
corporate bodies with the long-term interests and
sustainability of the Company.
The alignment between this Policy and the remuneration
scheme and employment conditions of The Navigator
Company employees is assured, given that both
remuneration systems are based on the same General
Principles set out in this Remuneration Policy, in particular
the market conditions in the reference markets for the duties
performed. Furthermore, the annual variation of the
compensation paid individually by the Company to the
members of the Board of Directors, as well as the average
compensation of the company's full-time equivalent
Employees is analysed.
Accordingly, this Policy aligns The Navigator Company with
market best practices on remuneration, and with the
recommendations of the IPCG Governance Code.
2. Board
2.1. Non
-
Executive Directors
The remuneration of non-executive directors shall comprise
only a fixed component of an annual amount, paid 12 times
per year, which may vary according to the piling on of added
responsibilities, e.g. committee and specialised committee
members, or a fixed amount per Board meeting attended.
The remuneration of non-executive members of the Board of
Directors does not include components dependent on the
performance of the Company or on its value.
2.2. Executive Directors
The remuneration of the Executive Directors consists of two
components: fixed and variable.
2.2.1. Fixed Remuneration
The remuneration of the executive Directors consists of a
fixed component, corresponding to an annual amount
payable 12 times per year.
2.2.2. Annual Variable Remuneration
The annual variable remuneration of the executive directors
is contingent, and may amount, globally, to a percentage
that does not exceed five per cent of the previous year’s net
profit, in accordance with the Company's articles of
association.
The Remuneration Committee decides on this component,
and the performance of each executive director is assessed
following an internal process lead by the respective person in
charge (i.e. the responsibility of the person who manages
the team in the case of the members of the Executive Board,
and the responsibility of the Chairman of the Board of
Directors in the case of the CEO) and with the participation
of the non-executive directors that the person in charge
deems pertinent to involve.
The Nomination and Assessment Committee is also involved
in this process. It is responsible for monitoring the system
for assessing management performance and distributing the
remuneration, and delivering its opinion on the proposals for
individual performance assessment of the executive board.
Finally, the Remuneration Committee must confirm that the
factors have been met for the performance evaluation, and
ensure the overall consistency of the process by setting the
variable remuneration.
The annual variable remuneration is based on the target
amount applied to each director and is paid according to the
individual's performance and performance of the Company
that meet the expectations and the criteria set previously.
The target amount is weighted by the aforementioned
general principles - market, specific functions, state of the
Company -, in particular comparable market circumstances
in equivalent functions. Another important factor taken into
account when setting the targets is The Navigator
Company’s option not to provide any stock or stock option
plans.
Actual performance compared to the expectations and goals,
which determine target variations is weighed against a set of
quantitative and qualitative KPIs of the company's
performance (which consist of general business indicators
2023 Annual Report • Corporate Governance 680
weighing 65%) and of the relevant director performance
(which consists of specific objectives weighing 20% and
behavioural indicators that account for 15%).
Overall business indicators and their relative weights, which
may be adjusted annually up to 5% in relative terms, are as
follows:
- EBITDA, accounting for 35%
- Net results, accounting for 10%
- Cash flow, accounting for 10%, and
- Total Shareholder Return vs Peers, accounting for 10%.
The specific objectives always include ESG indicators, such
as the findings of the annual Corporate environment survey,
the reduction of CO2 emissions, the certified wood and the
consumption of water, energy and wood.
On the other hand, within the behavioural indicator, the
alignment of each executive director with the existing
leadership model and the long-term interests of the
Company is relevant.
The performance criteria mentioned in the previous
paragraph are applied mathematically for their quantitative
part - based on the values of the business plans approved by
the Board of Directors, and at the end of each period these
commitments are compared with the actual income - and
using value assessments for the qualitative part.
In addition to the statutory limit on management's share of
profits for the year, the Company also has mechanisms in
place to limit variable compensation: (i) the variable
remuneration is eliminated in the event of the results
showing a significant deterioration in the company’s
performance in the last reporting period or when such
deterioration may be expected in the period underway, and
(ii) the amount of the annual variable remuneration
attributable has a cap corresponding to 1.8 times the target,
to prevent good performance at one moment, with
immediate remuneration benefits for the Board, from being
achieved to the detriment of good performance in the future.
The annual variable remuneration is subject to reasonable
adjustments related to exogenous factors and unforeseen
economic decisions, as decided in advance by the
Remuneration Committee.
The nature of the indicators, their weight in determining
actual variable remuneration and the limits on the
application of variable remuneration create a remuneration
model based on recognising merit against the actual
performance of the Company and discouraging excessive
risk-taking, whilst helping to implement the strategy defined
by The Navigator Company and ensuring that the interests
of the executive directors are aligned with the Company's
long-term interests.
3. Other benefits
In addition to the variable component that may be paid to
the members of the management bodies, no other non-cash
benefits are paid to directors and auditors, without prejudice
to the means made available to them for the performance of
their duties, a life insurance, a personal health insurance,
and an accident insurance policy in line with market
practices.
4. Other Considerations
There are no agreements, and no such provisions have been
defined by this Committee, on payments by The Navigator
Company relating to dismissal or termination of Directors’
duties. This fact is the natural result of the particular
situations existing in the Company, and not a position of
principle taken by this Committee against the existence of
agreements of this nature. Only the supplementary legal rule
in this matter applies here, as established in the Companies
Code, which governs the payment to the Directors of any
amounts before the end of the mandate.
Similarly, there are no complementary or early retirement
arrangements for directors currently in place in the
company.
With regard to the obligation to return variable remuneration
that has been paid, and without prejudice to the applicable
legal provisions, if, by final court decision, The Navigator
Company or the members of the Executive Board of The
Navigator Company are found liable for unlawful and wilful
acts of misconduct resulting in the need to restate its
financial statements or to record reductions in the value of
assets unfavourable to The Navigator Company, the
Remuneration Committee may, at its discretion and by
means of a resolution, demand from the executive directors
the refund of the variable remuneration in respect of the
period when such depreciation of the assets occurred or
another period deemed relevant, in order to compensate The
Navigator Company for the damage caused.
2023 Annual Report • Corporate Governance 681
5. Audit Board
The remuneration of the members of the Audit Board shall
consist only of a fixed component, i.e. a fixed annual
amount, payable 12 times a year; the remuneration of the
Chairman of the Audit Board is higher than that of the other
board members, taking into account the special functions
performed by him/her.
There are no agreements, and no such provisions have been
defined by this Committee, on payments by The Navigator
Company relating to dismissal or termination of duties by
the Members of the Audit Board.
6. General Meeting
The remuneration of the officers of the General Meeting shall
consist of a fixed amount only (as decided) for each meeting
held, whereas the remuneration of the second and
subsequent meetings held in the same year shall be lower
than that of the first general meeting. The remuneration of
the Chairman of the General Meeting shall be higher than
that of the Secretary, taking into account the greater
responsibility of the duties performed.
Lisbon, 24 April 2023
The Remuneration Committee
2023 Annual Report • Corporate Governance 682
ANNEX 3
CODE OF ETHICS AND CONDUCT
I. General Objectives and Values
1. The Code of Ethics and Conduct as the basis of the
culture of The Navigator Group
The pursuit of the objectives, respect for the values and
compliance with the rules of conduct set out in this Code of
Ethics and Conduct constitute the ethical culture of The
Navigator Company, S.A. (hereinafter "Navigator").
The Code of Ethics and Conduct is to be viewed as setting
standards of conduct interpreted as a benchmark for
behaviour, which Navigator and all those who work for it
should follow and respect.
2. Fundamental Mission and Objectives
The Navigator Group aspires to extend the leadership earned
in the printing and writing paper business to other
businesses, thereby asserting Portugal in the world, as a
global company, renown for developing, in an innovative and
sustainable manner, the forest and providing products and
services which contribute to the prosperity of individuals.
The fundamental aims pursued by Navigator are based on
the sustained creation of value and the protection of
shareholders’ interests, with an appropriate level of investor
return, by offering the highest standards of quality in the
supply of goods and services to customers, and through the
recruitment, motivation and development of the most able
and highly skilled professionals. Navigator will always
promote a meritocratic culture which allows the personal and
professional development of its Collaborators and, through
their commitment, position Navigator's business at the
forefront of the markets in which it operates, maintaining a
policy on the sustainable management of natural resources,
mitigation of environmental impacts and fostering social
development in the areas in which it carries on its business
operations.
Due to their being core principles and of a general nature,
the matters governed in the Code of Ethics and Conduct may
be detailed in internal guidelines, policies and procedures, or
in specific codes of conduct.
3. Values
The principles and rules of conduct set out in the Code of
Ethics and Conduct result from the establishment of values
deemed to be fundamental to Navigator, and which should
be permanently pursued within its corporate activity, in
particular:
(a) Trust – We believe in people, we welcome everyone’s
contribution, we respect their identity, promoting
development, cooperation and communication;
(b) Integrity – We are guided by principles of transparency,
ethics and respect in our dealings amongst ourselves and
with others;
(c) Entrepreneurship – We are passionate about what we do,
we like to get out of our comfort zone, we have the
courage to take decisions and to accept risks in a
responsible way;
(d) Innovation – We seek to bring out everyone’s skills and
creative potential to do the impossible;
(e) Sustainability – Corporate, social and environmental
sustainability is our business model;
(f) Excellence –In our work we focus on quality, efficiency,
safety and getting it right.
II. Scope of Application and Interpretation
4. Scope of Application
The Code of Ethics and Conduct applies to all Collaborators
of all entities in Navigator Group.
The rules set out herein should govern the ethical and
professional conduct of all those working in The Navigator
Group, in the pursuance of its corporate activity and in their
relationships with third parties and are an essential tool of the
corporate policy and culture followed and fostered by
Navigator.
2023 Annual Report • Corporate Governance 683
5. Interpretation
For the purposes of this Code of Ethics and Conduct, the
following defined terms shall have the following meanings:
(a) Collaborators – Any person who, irrespective of their
position at Navigator, has a permanent or temporary
employment relationship with Navigator, as well as any
person with employment and/or regular employment
relationship with companies subcontracted by Navigator
who, directly or indirectly, perform duties for Navigator
(members of corporate bodies, employees, service
providers, agents, auditors and consultants);
(b) Clients – natural or legal persons to whom Navigator
Group companies supply their products or provide their
services;
(c) Suppliers – natural or legal persons who supply products
or provide services to any Navigator Group entity;
(d) Group – the Navigator Group comprises all legal persons
over which The Navigator Company exercises, directly or
indirectly, a dominant influence, including, but not limited
to, all companies in a control or group relationship with
The Navigator Company;
(e) Stakeholders – natural or legal persons with whom the
Navigator Group companies relate in their business,
institutional or social activities, including shareholders,
members of governing bodies, Employees, Customers,
Suppliers, business partners or members of the
community with which the Navigator Group interacts.
III. Rules of Conduct
6. Compliance with Legislation and Regulation
The activities of Navigator and its employees shall be guided
by strict compliance with the legal, statutory and regulatory
rules applicable to the Navigator Group's business and
companies in the jurisdictions in which they operate, as well
as strict compliance with the internal instruments it has
implemented.
7. Public Authorities
Navigator's conduct and that of its Employees shall be
guided by ongoing cooperation with the public authorities, in
particular the regulatory authorities, complying with
requests legitimately addressed to them and within their
reach, and adopting behaviour that enables them to exercise
the powers entrusted to those authorities.
8. Integrity
Any practice of corruption and bribery, in all its active and
passive forms, whether through acts and omissions or
through the creation and maintenance of favourable or
irregular situations, as well as the adoption of behaviour that
may create expectations of favouritism in interlocutors in their
relations with Navigator, as set out in the Policy for the
Prevention of Corruption and Related Offences.
9. Transparency
Navigator is committed to report its performance in a
transparent way, taking into consideration applicable legal
duties and good practices of the capital and financial
markets.
10. Confidentiality
Collaborators must keep the confidentiality of all information
concerning The Navigator Group, other Collaborators,
Clients, Suppliers or Stakeholders, of which they have
knowledge by virtue of carrying out their duties and which is
not publicly known or notorious. Such information is
restricted and only for internal use in The Navigator Group.
Collaborators must maintain confidential the information
mentioned in the previous paragraph, even after termination
of their functions in Navigator and regardless of the cause of
such termination.
Confidential information may only be disclosed to third
parties in accordance with legal requirements or provided
disclosure thereof is previously authorized, in writing, by the
Board of Directors.
11. Business information, insider information and
Securities Transactions
11.1 Employees must not use business information obtained
in the course of their duties at Navigator to take advantage
of illicit business opportunities.
11.2 Employees in possession of specific and concrete
information concerning The Navigator Company that has not
been made public, but which, if made public, would be likely
to have a significant influence on The Navigator Company's
2023 Annual Report • Corporate Governance 684
share price, may not, during the period prior to its
disclosure, trade in securities of Navigator, strategic partners
or companies involved in transactions or relations with
Navigator, nor disclose such information to third parties.
11.3 Types of inside information include estimates of results,
decisions regarding acquisitions, sales or significant
partnerships and the acquisition or loss of relevant contracts.
12. Conflicts of Interest
12.1 Navigator undertakes to adopt measures to ensure that
it is exempt from acting in decision-making processes in
cases of potential conflict of interest involving Navigator or
its Employees. For the purposes of this Code, an Employee
shall be in conflict whenever he/she has a personal or
private interest in a particular business relationship or
activity carried out, which may constitute an advantage for
him/herself or for a third party related to him/her, in
particular to whom he/she is linked by kinship, proximity or
influence.
12.2 Employees may not pursue private objectives in
competition with Navigator, and are also prevented from
obtaining personal benefits, advantages or favours by virtue
of the position held or duties performed.
12.3 Employees must immediately report to their superior
any situation that may constitute a conflict of interest as
soon as they become aware of it, particularly if, in the
course of their duties, they are called upon to intervene in
proceedings or decisions involving, directly or indirectly,
organisations, entities or persons with whom they
collaborate or have collaborated, or to whom they are linked
by ties of kinship, proximity or influence. In addition to
these, in any other cases where their impartiality may be
questioned, they must make that communication, as
detailed in the Policy for the Prevention of Corruption and
Related Offences and in the Regulation on Conflicts of
Interest and Related Party Transactions.
13. Shareholder relations and governance
13.1 Navigator's primary objective is to protect the interests
of shareholders and investors, and to seek to create value
for shareholders.
13.2 Navigator undertakes to respect the principle of equal
treatment of shareholders, taking into account their
proportions in the share capital of The Navigator Company,
namely by ensuring that information is made available in a
timely manner, in compliance with applicable legal duties.
13.3 Navigator discloses annually in its corporate
governance report the governance practices applied and
incorporates national and international best practices in this
area.
14. Competition
The competition practices of Navigator shall comply strictly
with applicable competition laws, in accordance with market
rules and criteria, and with a view to promoting fair
competition.
15. Intellectual and Industrial Property
Navigator and its Collaborators must respect Intellectual and
Industrial Property of Suppliers, Clients and Stakeholders.
16. Relations with Clients, Suppliers, Services
Providers and Third Parties
16.1 Navigator shall ensure that the terms and conditions for
the sale of products to its Customers are clearly defined, and
Group companies and their Employees shall ensure that they
are complied with.
16.2. Navigator's Suppliers and service providers shall be
selected on the basis of objective criteria, taking into
account the conditions proposed, the guarantees actually
given and the overall optimisation of benefits for Navigator.
16.3 Navigator's Suppliers and service providers shall
comply with the provisions of The Navigator Company's
Code of Conduct for Suppliers.
16.4 Navigator and its Employees shall at all times negotiate
in compliance with the principles of good faith and the
applicable legal obligations and best practices.
16.5 In order to ensure that Customers, Suppliers, Service
Providers and other third parties pursue legitimate activities,
whose sources of income are lawful and which do not
represent a direct or indirect risk of criminal practices, the
relations established with them must comply with the
provisions of the applicable internal policies and procedures.
2023 Annual Report • Corporate Governance 685
17. Relations with Political Parties and Movements
17.1. Navigator's and its Employees' relations with political
movements or parties, where they exist, shall be conducted
in compliance with the legal provisions and internal
instruments in force.
17.2. If Navigator's Employees make contributions of the
nature described in their personal capacity, they must take
into account any conflict of interest with their professional
responsibility and refrain from invoking their relationship
with Navigator.
18. Social Responsibility and Sustainable Development
18.1. Navigator accepts its social responsibility to the
communities in which it carries on its business activities, as
a means of contributing to their advancement and well-
being.
18.2. Navigator undertakes to adopt, comply with and
promote a Policy on sustainability and environment
protection.
19. Safety and Working Conditions
19.1. Navigator will never employ child or forced labor, nor
will it ever collude with such practices, and it shall adopt the
measures deemed appropriate to combat such situations,
notably by public denunciation, whenever they come to its
attention.
19.2. The health and safety of its Collaborators is a priority
for Navigator, and accordingly all Collaborators shall seek to
know and comply with the legislation in force and with
internal rules and recommendations on such matters.
19.3. Employees must immediately report any accident or
situation that may compromise hygiene, safety and health in
the workplace, in accordance with the applicable rules, and
the preventive measures that prove necessary or
recommendable must be adopted.
20. Professional development and progression
20.1. Navigator provides appropriate training activities to its
Collaborators and fosters their continued training, as a driver
of their motivation and improved performance, recognizing
the added value of their professional and personal
development.
20.2. Navigator values and holds responsible Collaborators
in the performance of their functions, taking into
consideration their individual merit, allowing them to assume
the level of independence and responsibilities associated
with their skills and commitment.
20.3. The selection, hiring, remuneration and professional
development policies adopted are guided by merit criteria
and market reference practices.
20.4 Navigator shall ensure equality of opportunities and
respect for gender equality in recruitment, hiring and
professional development, attaching value only to
professional aspects. To that effect, all Collaborators shall
adopt the measures deemed appropriate to combat and
prevent any form of discrimination or differentiated
treatment based on, notably, ethnic or social origin, religious
beliefs, nationality, gender, marital status, sexual orientation
or physical disability.
21. Respect
In their relations with other Collaborators and Suppliers,
counterparts, Clients and Stakeholders, all Collaborators
shall proactively act in a correct, respectful, loyal and civil
manner.
22. Non-discrimination and harassment
22.1. Collaborators may not act in a discriminatory manner
in relation to other Collaborators or other persons, notably
based on race, religion, gender, sexual orientation, origin,
age, language, territory of origin, political or ideological
convictions, economic situation, social and economic
situation or type of contract, and must foster respect for
human dignity as one of the basic principles of the culture
and policy of Navigator.
22.2. Any practice which may correspond to a form of
harassment, notably through personal offence, mobbing,
moral or sexual harassment or bullying is strictly forbidden,
under the terms of the Whistleblowing Regulation and the
Code of Good Conduct on Preventing and Combating
Harassment at Work.
23. Use of Assets
23.1. Collaborators shall make sensible and reasonable use
of the working resources at their disposal, avoiding waste
and undue use.
2023 Annual Report • Corporate Governance 686
23.2. Collaborators shall care for the property of Navigator,
and not behave wilfully or negligently in any manner which
might undermine its state of repair.
24. Personal Data Protection
24.1. Navigator understands the key role of privacy and
protection of personal data of its Clients, Stakeholders,
Suppliers, Collaborators or any other natural persons or
collaborators of any other entities. Accordingly, Navigator
and its Collaborators undertake to use such information in a
responsible manner, in strict compliance with laws and
regulations governing the protection of personal data.
24.2 Collaborators must not collect personal data, create
lists of personal data or process or transfer personal data
without prior consultation and authorisation from the area
which is responsible for data protection.
25. External Communication – Media
and Advertising
Information provided by Navigator and its Collaborators to
the media, including for advertising purposes, shall:
(a) Be released exclusively by management and divisions
authorised for that purpose and to act as representative
or spokesman of Navigator;
(b) Comply with the principles of legality, accuracy,
opportunity, objectivity, truthfulness and clarity;
(c) Protect the secrecy and confidentiality of the information,
in order to protect the interests of Navigator;
(d) Respect cultural and ethical parameters of the
community and human dignity;
(e) Contribute to an image of consistency, creation of value
and dignity of Navigator, promoting its good name in
society.
26. Communicating in social networks
and media
Collaborators are fully aware that the new forms of
communication, which are continually evolving, may have a
strong impact on Navigator and its Collaborators and that
the dissemination and distribution of information through
those channels may easily represent loss of control over
those contents.
Accordingly, Collaborators undertake as their commitment
that, when using social networks and means of
communication (both traditional and recent), they:
(a) Shall act in an ethically responsible way, contributing to
the creation of value and dignity of The Navigator Group
and to reinforce its image in society;
(b) Shall respect, comply with and reflect the principles,
values and rules of conduct established in this Code of
Ethics and Conduct;
(c) Shall not post or otherwise disclose confidential or
internal information of Navigator;
(d) Shall not communicate, identifying themselves as
Collaborators of Navigator, without authorization for that
purpose.
IV. Supervision, Default and Communication
27. Non-compliance
Failure to comply with the rules of conduct established in
this Code of Ethics and Conduct shall constitute serious
misconduct, subject to disciplinary proceedings, in addition
to any possible civil, administrative or criminal liability, in
accordance with applicable laws and regulations.
28. Reporting
28.1 Collaborators should report the occurrence of any
conduct which is not compatible with the rules set out in this
Code of Ethics and Conduct, of which they are aware or
justifiably suspicious, in a timely and efficient way, through
the proper channels, in accordance with the internal rules of
the Whistleblowing Regulation and the Code of Good
Conduct for Preventing and Combating Harassment at Work.
28.2. Navigator guarantees the confidentiality of information
conveyed in reports, in accordance with the internal rules of
the Whistleblowing Regulation.
28.3. Navigator shall not retaliate, in any way, against a
person who reports any non-compliance with the Code of
Ethics and Conduct or another irregularity, shall ensure a fair
treatment of the persons addressed therein and will not
allow the resulting detrimental treatment where a
Collaborator has acted in good faith, thoughtfully and
diligently.
2023 Annual Report • Corporate Governance 687
28.4. In accordance with the general terms of the law,
misuse or abuse of the arrangements for reporting
irregularities may render the author of a report liable to
disciplinary measures and/or legal proceedings.
29. Criteria for action, doubts and questions
29.1 Employees must act in accordance with this Code of
Ethics and Conduct and with good judgment, assessing the
alignment of their conduct with the company's risk culture
and policy, including from the point of view of reputational
risk, and its appropriateness in the event of public
disclosure.
29.2 Employees may submit doubts and questions regarding
the interpretation or application of the Code of Ethics and
Conduct to the Compliance Area, through the following email
address: compliance@thenavigatorcompany.com.
30. Reporting of Irregularities
Any non-compliance with the provisions of this Code must be
reported in accordance with The Navigator Company's
Whistleblowing Regulations.
31. Annual Report
31.1. The Ethics Committee shall draw up an annual report
on compliance with the rules established in this Code of
Ethics and Conduct, detailing all irregularities of which it is
aware, and setting out the conclusions and follow-up
proposals adopted in the different cases which it examined.
31.2. For the purposes of the preceding paragraph, the Risk
Management and Compliance Area shall report to the Ethics
Committee all relevant facts which come to their attention.
V. Communication
32. Communication of the Code of Ethics and Conduct
32.1. The Navigator Company's Code of Ethics and Conduct
shall be disclosed on Navigator's digital internet platform and
together with the annual financial statements, so that it may
be known to Shareholders, Customers, Suppliers,
Stakeholders, Investors and other entities with whom the
Navigator relates.
32.2. Navigator shall make the Code of Ethics and Conduct
available to all Collaborators and will promote its
dissemination, widespread awareness and mandatory
practice.
[Lisbon, 21 July 2023]
The Board of Directors,
688
Acknowledgements
We would like to include a special word of thanks to all the Employees who contributed with information to
the drafting of this Report, which is the result of the joint and shared efforts of many people.
Publication details
Publication cycle and period covered by report
This report refers to activities during 2023 (1 January to 31 December 2023) and is issued annually.
Publication date
April 2024
Developed and coordination
Sustainability Division
Accounts and Payroll Division
Legal, Compliance and Public Affairs Division
Investor Relations
Risk Management Division
Corporate Communications and Brand
Technical support for sustainability reporting
Stravillia Sustainability Hub
Translation from the original in Portuguese
Traduzdiálogo, Lda
Creative Strategy
White Way®
Opinions and contact details
We value your opinion. If you have any questions, please contact:
The Navigator Company
Av. Fontes Pereira de Melo 27, 1050-117 Lisboa
Contact details: +351 219 017 300