GRI GRI 414-1 New suppliers that were screened using social criteria

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UNGC
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PRINCIPLE 1Businesses should support and respect the protection of internationally proclaimed human rights.
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PRINCIPLE 2Make sure that they are not complicit in human rights abuses.
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PRINCIPLE 4The elimination of all forms of forced and compulsory labor.
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PRINCIPLE 5The effective abolition of child labor.
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PRINCIPLE 7Businesses should support a precautionary approach to environmental challenges.
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PRINCIPLE 8Undertake initiatives to promote greater environmental responsibility.

GRI 414-1 New suppliers that were screened using social criteria

Our approach to procurement and supplier management follows corporate policies and internal procedures within our Integrated Management System, which governs social (occupational health, workplace safety, labor rights, child and adolescent rights, Diversity & Inclusion, human rights, social risks and impacts) matters.

Social criteria are evaluated as part of our approach to managing contractors working directly in our facilities. Through our Contract Management System, we review and monitor contractor documentation demonstrating compliance with legal requirements, including clauses from collective bargaining agreements, mandatory technical and operational training, occupational health criteria, and operating licenses. This applies to all suppliers, including new suppliers.

Processes involved in supplier management:

  • Third-party due diligence: before formal engagement, all suppliers undergo due diligence screening. This process is conducted in accordance with Bracell’s policies on Third-Party Due Diligence, Supplier Qualification and Evaluation, Sustainability, and Human Rights.
  • Environmental compliance validation: as part of the onboarding and screening process, suppliers acknowledge and agree to follow Bracell’s Procurement Code of Ethics. In our operations, suppliers are evaluated regarding their management of environmental risks and impacts.
  • Social compliance validation: social requirements and risks are assessed as part of our approach to managing contractors operating directly at our facilities. The contractor management process includes verifying compliance with labor rights such as compensation, collective bargaining agreements, training, occupational health and safety, among other mandatory requirements for managing social risks. This is done through the Contract Management System, where contractual documents are stored and compliance with legal requirements is verified.
  • Supplier evaluation and qualification: we assess suppliers’ capability to deliver products and services in accordance with legal, certification, and technical standards.
  • Audits: we perform audits on all operations employing contractors.

Since December 2024, we have used the Linkana platform to enhance supplier screening and monitoring on environmental management criteria, impact prevention, and fulfillment of commitments to sustainable practices. These assessments cover compliance with national and international environmental standards, public data from the Federal Revenue Service, clearance certificates, block lists, and sustainability indexes. After data validation, a confidence score informs risk recommendations and directs the process toward automatic or manual approval workflows.

In 2024, no suppliers were identified as responsible or potentially responsible for negative social impacts.