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RISKS ASSOCIATED WITH IMAGE AND REPUTATION

Duratex’s Forest base absorbs more greenhouse gases than the volumes generated by its industrial processes, which guarantees the company the status of being a Carbon Free business, or free from the emission of carbon dioxide. This condition allows it to be a member of the Chicago Climate Exchange, where it can sell its carbon credits.

The process of updating and dissemination of the Code of Ethics of Conduct and the existence of a series of wide-ranging policies and norms are an integral part of Duratex’s efforts to broaden its best practices of corporate governance and contribute to the image of credibility, solidity and trust it has built over more than 50 years. The principles adopted by all its employees deal with the importance of working with ethics, legality, respect for human beings, repudiating all forms of discrimination, and with a sense of socio-environmental responsibility, among other things. This stance has contributed to preference shares in Duratex being included in the 2009 version of the Bovespa’s Business Sustainability Index (ISE). The company has been included in the Level 1 classification of the Bovespa’s corporate governance rating since 2005.

Duratex rigorously complies with all the pertinent federal, state and municipal legislation in its operations, even going beyond just meeting the obligatory requirements whenever possible. Before being launched, all the company’s products are tested individually and strictly follow the parameters of the bodies responsible for the definition of their characteristics.

Duratex also seeks certifications from independent organizations to legitimize the quality of its internal processes, such as the ISO 14001 standard (Environmental Management) and 9001 standard (Quality) - (see the complete table of certifications on page 95). In this sense, in the environmental area, the company was the first in Latin America to obtain certification from the Forest Stewardship Council (FSC) in 1995, which attests to the sustainable management of its forestry.

The company finalized the process of joining the Chicago Climate Exchange in 2008, a market where the carbon credits generated from its forests are traded, which absorb more greenhouse gases than its industrial operation generates, making the company effectively Carbon Free. In the same year, as a founding member, it joined the Brazilian Green Building Council - Brazil, an entity that seeks to motivate the development of real-estate projects that comply with the principles of sustainability. (GRI EC2)