Our materiality matrix is updated every two years. In 2024, we developed the latest version using the double materiality approach, which expands the traditional approach by considering two complementary dimensions:

1. the impacts the company has on the environment and society, and

2. the effects that external environmental, social, and governance factors may have on the business in the form of risks or opportunities.

This approach provides a broader view of our relationship with society and the environment, considering both inside-out and outside-in perspectives, and aligns with stakeholder expectations.

Double materiality also includes financial, social and environmental impacts, allowing us to more precisely set priorities and better align with stakeholder expectations.

It enables us to design broader impact mitigation plans and build more effective sustainability strategies. This ensures a risk and opportunity assessment that is more resilient to change and supports the business’s medium and long-term sustainability.

The double materiality approach also supports our Bracell 2030 targets and commitments, helping strengthen and align our ESG strategies.

The methodology used to update the materiality matrix was based on three key dimensions:

1. Financial and ESG materiality – Assesses how social and environmental issues can affect business finances. We conducted interviews with Bracell’s senior management, external experts, and industry leaders and evaluated risks and opportunities based on likelihood and magnitude.
2. Impact materiality – This dimension addresses the company’s impacts on society and the environment. Assessing this dimension involved working meetings with Bracell’s internal experts, including the VP of Sustainability and the Corporate Risk Management team. The assessment considered criteria such as likelihood, magnitude, scope, and reversibility of impacts.
3. Stakeholder perspective – We consulted key stakeholders based on a prioritization matrix ranking their influence and relationship with the business. Stakeholders consulted included:

1. Local communities and forestry partners
2. Suppliers
3. Trade associations
4. NGOs and environmental organizations
5. Employees in leadership positions

We also reviewed internal documents and industry benchmarks, drawing on internationally recognized frameworks such as:

1. SASB Sustainability Accounting Standard for Pulp & Paper Products
2. MSCI ESG Industry Materiality Map – Paper Products
3. S&P Global – The Sustainability Yearbook 2024 (Paper and Forest Products category)

By intersecting these three dimensions—financial materiality, impact materiality, and stakeholder input—we identified 18 material topics. From this list, seven material topics
 were prioritized:

1. Talent acquisition, development and retention

2. Biodiversity and ecosystems

3. Supply chain management

4. Water and effluent management

5. Climate change

6. Community relations and local development

7. Health, well-being, and occupational safety

The materiality assessment and final material topics were approved by Bracell’s President and Sustainability VP.