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Home › Dodgy Deals ›
Dodgy Deal
Navigator CompanyPortugal

Company – On record

This profile is no longer actively maintained, with the information now possibly out of date
Profile by:
BankTrack
Contact:

nature@banktrack.org

Last update: 2020-11-17 00:00:00
The Navigator Company's industrial complex at Setubal, Portugal. Photo: Gustavo Verissimo via Wikimedia Commons (CC BY-SA 2.0)

Company – On record

This profile is no longer actively maintained, with the information now possibly out of date
Profile by:
BankTrack
Contact:

nature@banktrack.org

Last update: 2020-11-17 00:00:00
Why this profile?

Why this profile?

The Navigator Company, formerly Portucel, operates the Portucel pulp mill in Mozambique. Investors should not support this project until Portucel has developed satisfactory measures to protect forests and biodiversity, to assure the integrity of water table and hydrological conditions, to implement Free Prior and Informed Consent (FPIC) and fully respect customary land rights, address social conflicts, implement full transparency and pursue stakeholder engagement.

About
Sectors Pulp, Paper and Paperboard Mills
Headquarters
Ownership

The Navigator Company, S.A. is a public limited company, with registered offices at Península da Mitrena, Freguesia do Sado, Setúbal. The Navigator Company S.A. is issued in Euronext Lisbon, being a part of its stock index, PSI 20. It is listed as NVG. The company has a controlling shareholder, Semapa, who owns 69,4% of its share capital.

Subsidiaries
Colombo Energy – United States
Portucel Moçambique – Mozambique
Website http://www.thenavigatorcompany.com

Formerly know as The Portucel Soporcel Group the Navigator Company is a Portuguese pulp and paper company, which originally resulted from the 2001 merger of the firms Portucel and Soporcel. Portucel is Europe's largest producer of bleached eucalyptus kraft pulp. It is also one of the five largest European producers of uncoated wood-free paper. The Navigator Company has a production capacity of 1.6 million tonnes of paper and 1.4 million tonnes of pulp yearly, with 1,380 squared kilometres of forest. The company uses eucalyptus as the prime raw material for the production of pulp and fine printing and writing paper. In 2016 the company had a turnover of EUR 1.577 billion.

Impacts

Social and human rights impacts

Some of the social impacts related to plantations have been identified in the Environmental Impact Assessment report released by Impacto. The main issues raised by communities were as follows:

  • Land that is critical for food security and traditional life has been taken from local communities. (The Oakland Institute).
  • Consultation meetings between the company and the local communities have not been held in traditional language. As a result the majority of the people was unable to understand most of the meetings. In different cases, possible impacts have not been properly outlined. In some cases, temporary jobs were promised in exchange for land, in others land has been acquired without compensation. Some people have been relocated to fields far away from roads and basic services, such as medical care. Other people have had to rent land at their own expense
  • In this environment, already marked by water stress, the expansion of eucalyptus plantations will inevitably affect the surrounding areas bringing a severe decline to local agriculture, and threatening food security
  • The Environmental Impact Assessment report for the Zambezia forestry project states that "communities reported elevated concern with regard to their perception of lack of land for the project implementation, occupation of lands without consent and due compensation, lack of clarity in relation to the project and the lack of transparent communication mechanisms between the company and the communities." It identifies the following socio-economic impacts: conflicts in the process of access to land, loss of agricultural areas, risk of malnourishment and malnutrition and loss of ecosystem services for communities. It also lists mitigation measures
  • A local chief has forbidden community leaders to voice their concerns regarding the project, while pressure to accept the project has been reported. In some cases, temporary jobs have been promised in exchange of land, in other land has been acquired without compensation. People have been relocated to other fields far away from roads and basic services such as medical care. Others had to rent land at their own expense (Justica Ambiental).

The description of impacts on this page is sourced from the report A Land Grab for Pulp. For more information about these impacts read this report here.

 

The consultations held with local communities did not comply with international standard of FPIC (Free Prior and Informed Consent) as laid down in the UN Declaration of Indigenous Rights. Community members told Justiça Ámbiental that only one meeting was held, at which none of them had been informed about the project, and in which potential social and environmental impacts of the project were not discussed. In other cases, communities confirmed that there had been a meeting with the company, but the majority (80%) reported that they did not understand most of the meeting, because of the language used.

Portucel should adopt a specific policy on security. Any security company that is contracted should not be implicated in past abuses. Human rights education and a strict non-violence policies should be part of core trainings. For expressions of concerns a grievance mechanism should be in place, about the security arrangements and for reporting any abuses in a confidential way, so as to ensure the security of affected people.


Environmental and climate impacts

The plantation is expected to have adverse impacts such as pollution, soil erosion, loss of biodiversity, increased risks of forest fires, modification of the aesthetic value of the landscape. It will further impact remaining forest ecosystems of miombo woodlands, and possibly fragments of afromontane and eastern African coastal forests. Both the pulp mill and plantations will be located close to the Deforestation Fronts as outlined by WWF. Landscapes will not be protected and natural forests will be converted including 114,000 ha of densely wooded 'sensitive areas' (only 10% of the area will be set-aside, mostly located in areas unsuitable for plantations). Furthermore, the conversion into plantations will displace traditional forest uses, creating more pressure on the remaining fragments of natural forests.

Roads, forest tracks and fire breaks, that come along with the project, will also impact the natural forests. To establish the Zambezia plantations, 1,200 km of forest tracks will be opened, as well as 280 km of perimeter firebreaks of 6 meters in width.

Financiers

The Navigator Company is controlled by Semapa (Portugal), which holds 69% of its shares. The remaining shares of the group are held by a group of institutional shareholders, including Banco Português de Investimento, Commerzbank, Santander, JPMorgan Chase and the Norwegian Government Pension Fund (Thomson EIKON database, viewed in October 2016). The company is also financed by bondholders and bank loans. 

Institution type
Finance type
Year
Projects
There are no active project profiles for Navigator Company now.

Portucel pulp mill

Mozambique
Project
On record
Pulp, Paper and Paperboard Mills

Portucel pulp mill

Mozambique
Governance
Norms & standards

Applicable norms and standards

FSC Principles and Criteria
ISO 14001
News
BankTrack
Partners
Blog
External
BankTrack news BankTrack blog Partner news Partner blog

A Land Grab for Pulp – a report on Portucel Mozambique

2017-11-17 | EPN
BankTrack news BankTrack blog Partner news Partner blog

Portucel Soporcel becomes The Navigator Company

2016-02-08 | The Office Times
BankTrack news BankTrack blog Partner news Partner blog

Portucel Moçambique assina acordos com instituição do Banco Mundial para

Portuguese only
2015-03-19 | Jornal de Negócios
Resources
Documents
Links
2011-12-31 00:00:00

Understanding land investment deals in Africa: Mozambique

NGO document
2011-12-31 00:00:00 | The Oakland Institute
2017-07-31 00:00:00

Integrated annual report 2016

Annual report
2017-07-31 00:00:00 | Navigator Company
2016-10-31 00:00:00

Industrial Tree Plantations Invading Eastern and Southern Africa

Briefing compiled by the World Rainforest Movement (WRM) and the Timberwatch Coalition (TW)
NGO document
2016-10-31 00:00:00 | World Rainforest Movement, Timberwatch Coalition
2016-03-01 00:00:00

Navigator Company annual report 2015

Annual report
2016-03-01 00:00:00 | Navigator Company
2015-07-01 00:00:00

The Navigator Company sustainability report 2014/2015

Annual report
2015-07-01 00:00:00 | Navigator Company
2013-05-16 00:00:00

Portucel - Listing Memorandum

Company document
2013-05-16 00:00:00 | Portucel

Ejatlas- Portucel Moçambique

EPN webpage on Portucel Mozambique

FSC Watch

Updates

2016

2016-02-08 00:00:00 | Portucel Soporcel becomes The Navigator Company

Portuguese paper manufacturer Portucel Soporcel has changed its name to The Navigator Company. (source: The Office Times).

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