The Sustainability Steering Committee, led by Bracell’s president, Praveen Singhavi, is responsible for strategic decision-making concerning key sustainability matters. The committee oversees and validates the management of environmental, social and governance risks and impacts, ensuring that sustainability is aligned with long-term business planning.

Among its responsibilities, the committee is also in charge of validating Bracell’s materiality matrix, ensuring that priority is given to the most important issues for stakeholders and company strategy.

Critical and emerging concerns are communicated to the Sustainability Steering Committee by means of:

• Periodic reports from the Executive Board
• Internal and external audit reports
• Risk and compliance reports

This continuous flow of information ensures a transparent and accurate evaluation of sustainability governance, enabling us to anticipate challenges and deliver on our commitment to corporate responsibility.

In 2024, for example, 76 crucial concerns were reported, relating to environmental, social, human rights and governance issues.

Crisis Committee

Bracell has a Crisis Committee  composed of permanent members who are convened whenever necessary to address crisis and emergency situations potentially affecting our stakeholders, operations, or reputation. This committee is composed of the senior management of the departments concerned, ensuring an agile, coordinated response to mitigate risks and minimize impacts.

The committee’s activities follow the guidelines of Bracell’s Crisis Prevention and Management Manual, a document that establishes protocols and best practices to ensure efficient incident management and operational continuity.

Sustainability Department

Bracell’s Sustainability Department is corporate and its head, the Sustainability Vice President, reports directly to the President and the Sustainability Steering Committee.

On a quarterly basis, the Vice President of Sustainability presents to the committee the progress made on the Bracell 2030 targets and commitments and sustainability projects across the pillars of Climate Action, Sustainable Landscapes and Biodiversity, Driving Sustainable Growth and Empowering Lives (see more in Bracell 2030).

Institutional Relations Department

Bracell also has an Institutional Relations, Community Relations and Corporate Social Responsibility Department. Its responsibility is to lead actions and relations with external stakeholders, like local communities, government and civil society organizations. The department’s work includes: addressing the concerns of underrepresented social groups, preserving our social license to operate, and implementing Bracell Social projects (see more in GRI 203-1).

Risk Management Program

Bracell’s approach to managing corporate risk aims to identify, evaluate and mitigate threats that could impact business goals. We use structured methodologies and continuous monitoring tools, fostering an organizational culture geared to risk prevention and mitigation.

The management process involves an integrated assessment of internal and external factors, covering operational, social, environmental and governance risk and ensuring strategic decisions are based on a broad, sustainable vision.

Bracell’s risk management practices follow the guidelines set out as part of our Risk Management Program (RMP), based on international methodologies. The RMP sets out guidelines and processes for:

• Management of information and continuous monitoring
• Role-specific training
• Use of technologies to mitigate risk
• Emergency response protocols

Through this structure, we ensure that our operations are prepared to anticipate challenges, minimize impacts and strengthen organizational resilience, in line with global sustainability best practices.

The RMP maps out the key impacts, risks and opportunities relating to our activities. Based on this data, we continually monitor potential risks to our operations, neighboring communities, and the environment. The Program also includes proactive plans for mitigating impacts—either neutralizing or minimizing them to the extent possible.

Processes that comprise the Risk Management Program

• Regularly updating identified aspects and impacts, in an exercise involving all operations, in order to identify, prevent and mitigate any and all negative impacts
• Conducting assessments to identify and map out social and environmental risks before initiating any operation
• Assessing products on health, safety and environmental risks
• Regularly monitoring impacts from operations and activities
• Implementing immediate mitigation measures focused on minimizing impacts

Risk management and due diligence governance

Bracell’s risk management practices are organized via committees at different levels of the organization, which convene recurrently:

• Departmental committees: responsible for identifying and managing operational risks specific to each department, promoting awareness and application of best mitigation practices.
• Business unit executive committees: these ensure that strategic and operational risks are managed in an integrated way, in line with each unit’s goals.
• Corporate Steering Committee: supervises and directs risk management at the corporate level, ensuring strategic decision-making that considers a broad view of business risks and opportunities.

Risk management at Bracell is structured in compliance with the law and with the requirements of technical and certification standards and international sustainability protocols (see more in ESG certifications and badges). All corporate policies and operational procedures cover internal standards governing our operations. These policies and procedures include management practices concerning environmental, social and governance issues and are incorporated in Bracell’s Integrated Management System (IMS). They are mandatory for all direct employees, contractors and suppliers.

To ensure compliance with procedures and policies, Bracell has a training schedule and monitors and evaluates compliance with legal requirements, technical and certification standards, and international sustainability protocols. Examples include mandatory technical and operational training for compliance with legal and regulatory standards (see more in GRI 404-1); annual training centered on ethics, integrity, bribery and corruption; continuous improvement program training; training to promote organizational culture; training centered on strategic issues for people management; and leadership development training (see more in GRI 404-2).

In 2024, we upgraded our SoftExpert certification management system, supporting greater efficiency and agility. We also reinforced the Elo program, which trains a team of employees to liaise with the relevant departments. This team is strategic to the ongoing monitoring of operations, providing real-time information for forestry and industrial certification purposes. A total of over 40 staff work on this team.

Reporting Channels

Bracell has two formal channels for receiving complaints, reports and concerns, available to all internal and external stakeholders.

Contato Seguro

Open to all Bracell stakeholders, Bracell Escuta is a platform for reporting misconduct and non-compliance with applicable laws and regulations, our Code of Conduct, or other company policies.

Reports are handled confidentially and whistleblowers are kept anonymous. Reports are investigated by an internal audit team, which reports directly to senior management at Bracell and the RGE Group.

Contact details:
denuncias.bracell@contatoseguro.com.br

www.contatoseguro.com.br/bracell

0800 810 8546

 

Contact Us

This channel is open to all stakeholders. It responds to queries, compliments and complaints from the community. Cases are directed to the relevant departments depending on the nature of the issue.

Contact details:
Bahia:
0800-284-4747
faleconosco@bracell.com

São Paulo:
0800-709-1490
faleconoscosp@bracell.com

Bracell systematically monitors all actual impacts. In our forestry and mill operations, the most significant potential impacts include odor emissions, noise, dust from truck traffic, machinery, and equipment, road degradation, as well as health risks from the use of crop protection products (pesticide drift).

 

 Mill (São Paulo)

Complaints 2022		Complaints 2023		Complaints 2024
Odor	1	Odor	1	Odor	0
Piping maintenance	1	Traffic accident risk	1	Traffic accident risk	0
Speeding	0	Speeding	0	Speeding	0
Road damage	0	Road damage	0	Road damage	1
Total for mill	2	Total for mill	2	Total for mill	1

 

Forestry (São Paulo)

Complaints 2022		Complaints 2023		Complaints 2024
Maintenance of roads, bridges and culverts	36	Road maintenance	63	Road maintenance	113
Damage to third-party property	33	Damage to third-party property	41	Damage to third-party property	88
Airborne dust caused by trucks or machinery	51	Airborne dust caused by trucks and machinery	37	Airborne dust caused by trucks and machinery	101
Fence maintenance	–	Fence maintenance	27	Fence maintenance	6
Speeding	19	Speeding	–	Speeding	26
Road damage	–	Road damage	–	Road damage	28
Total for forestry	139	Total for forestry	168	Total for forestry	362
Total	141	Total	170	Total	363

 

  Mill and forestry operations (Bahia)

Complaints 2022		Complaints 2023		Complaints 2024
Property damage	8	Property damage	12	Property damage	14
Roads	8	Roads	14	Roads	6
Dust (forestry operations only)	12	Dust (forestry operations only)	8	Dust (forestry operations only)	2
Contractors	11	Contractors	14	Contractors	18
Dangerous driving	12	Dangerous driving	11	Dangerous driving	9
Noise	1	Noise	2	Noise	0
Other	6	Other	16	Other	11
Total	58	Total	77	Total	60

Bracell’s Internal Audit department is responsible for continuously reviewing processes, in line with Standard Operating Procedures (SOP). It assesses compliance with internal policies, procedures, applicable laws and regulations, regulatory standards, certification requirements, and international protocols.

Based on these assessments, all processes are mapped out and the department draws up a risk and control matrix (risk assessment process), which informs the auditing processes. For critical risks, action plans are drawn up and followed up on monthly until their completion.

The Internal Audit risk assessment report is submitted to Bracell’s senior management and RGE Group’s Executive Board (see more about the approach to remediating negative impacts under GRI 2-25).

Sustainability Vision

Our commitment to sustainable development is grounded in circular bioeconomy principles. We aim to revolutionize the forest-based pulp industry and remain at its forefront, while providing diversified products from responsibly managed, renewable plantations. We believe in creating shared value as well as building impactful and long-lasting partnerships that enable us to continuously do good for our Communities, Country, Climate and Nature, Customers and Company.

Long-Term Strategy

Bracell 2030 is our long-term sustainability roadmap. Launched in 2023 as a public commitment, it outlines 14 goals across four strategic pillars, with an overarching objective to create positive impact and deliver value for our Community, Country, Climate, Customers, and Company—in line with our 5Cs Philosophy.

The Bracell 2030 roadmap includes 14 targets and commitments focused on four strategic priorities:

Climate Action

Climate-positive operations supporting a low-carbon economy

Sustainable Landscapes and Biodiversity

Build regenerative systems that benefit nature, biodiversity and ecosystem services

Promoting Sustainable Growth

Expand our business through increased efficiency, circularity and responsible production

Empowering Lives

Provide capacity building to our people and communities through transformational initiatives

In 2024, we shared the initial results from this journey, reflecting our commitment to a more efficient, responsible production model that meets the expectations of stakeholders.

Our prioritization of issues such as climate change, biodiversity, water management, waste, and social impact was validated through a double materiality assessment conducted this same year (learn more under GRI 3-1 Process to determine material topics).

Bracell 2030: Targets, Commitments, and 2024 Performance

 

CLIMATE ACTION

No	2030 Target	2020 Baseline	2030 Target	2024 Target	2024 Performance	SDGs Addressed
1	Reduce carbon emissions per metric ton of product by 75%, targeting 0.122 tCO₂e/adt	0.482 tCO2e/adt	0.122 tCO2e/adt	0.151 tCO2e/adt	0.208 tCO2 e	13, 14, 15
2	25 MtCO₂e removed from the atmosphere between 2020 and 2030	NA	25 MtCO2e	22.19 MtCO2e	4.30 MtCO2	13, 14, 15

 

SUSTAINABLE LANDSCAPES AND BIODIVERSITY

No	2030 Target	2020 Baseline	2030 Target	2024 Target	2024 Performance	SDGs Addressed
3	230,000 hectares of native forests preserved	NA	230,000 hectares	189,000 hectares	185,841 hectares	14, 15
4	Protection of endemic and threatened species	NA	Natural habitats and endemic threatened species monitored in priority areas for biodiversity conservation	Complete the following steps: 1. Hold a workshop with experts to define project guidelines 2. Identify Bracell’s priority areas for conservation 3. Define baseline areas within the surrounding landscape	Met	14, 15
5	Support for the reintroduction of animals into the wild	NA	Double the number of Bracell-owned areas certified by environmental regulators for releasing wild animals in native forests from 3 to 6 or more	Obtain certification for 4 designated areas for the release of wildlife	Met	14, 15
6	Research on biodiversity conservation	NA	Support 10 research projects on biodiversity conservation	8 projects	8 projects	14, 15

 

PROMOTING SUSTAINABLE GROWTH

No	2030 Target	2020 Baseline	2030 Target	2024 Target	2024 Performance	SDGs Addressed
7	47% reduction in water withdrawal in industrial operations	31.1 m3/adt	16.6 m3/adt	19.2 m3/adt	19.2 m3/adt	6
8	90% reduction in Class II industrial waste sent to landfills	51.7 kg/t	5 kg/adt	43.7 kg/adt	27.1 kg/adt	3, 11, 12
9	97% chemical recovery in our operations (lime and caustic soda in pulp production)	NA	97%	96.20%	96.20%	3, 11, 12

EMPOWERING LIVES

No	2030 Target	2020 Baseline	2030 Target	2024 Target	2024 Performance	SDGs Addressed
10	Promote equal opportunity for women (increase the proportion of women in leadership positions to 30%)	40 (18.2%)	30%	27%	29.40%	5, 8, 10
11	Promote an inclusive work environment for affinity groups and achieve a 90% positive evaluation from employees in these groups regarding respect and equity in the workplace	27% (based on the Diversity and Inclusion Census conducted in 2024)	90%	1) Finalize baseline 2) Define key performance indicators to measure respect and equity variables 3) Establish a framework for managing and monitoring implementation of action plans	Met	5, 8
12	Promote women’s entrepreneurship in communities (at least 60% of Bracell-supported “impact business” projects to be led by women)	Baseline under development	60%	1) São Paulo: carry out a social and economic assessment to inform strategies for advancing education and reducing poverty in the state of São Paulo 2) Bahia: conduct an Impact Assessment on our Continuing Education program and update the existing socioeconomic profile. 3) Mato Grosso do Sul: conduct a social and economic assessment with an emphasis on regional development 4) Develop a methodology for managing and monitoring social targets 5) Establish a baseline, built an Impact Framework, defined the rationale for measuring targets, and create a five-year roadmap	Met	1, 5, 8, 10
13	Promote income generation for families and communities (raise the incomes of families participating in Bracell’s income creation programs in priority areas by 20%)	Baseline under development	20%	1) Develop a methodology for managing and monitoring social targets 2) Define the baseline 3) Develop an impact framework, target calculation rationale, and five-year roadmap	Met	1, 8, 10
14	Advance high-quality public education (improve Portuguese and Mathematics proficiency by 30% in Bracell-supported public schools in areas with low school achievement rates)	Baseline under development	30%		Met	4

Note: the women in leadership target in our Bracell 2030 roadmap is based on the number of female leaders working directly in our pulp operations.

Bracell 2030 Highlights

The year 2024 marked the first full cycle of tracking progress on our Bracell 2030 roadmap. These metrics improved our management of each pillar of our long-term sustainability strategy and guided its ongoing improvement.

Climate Action

The Climate Action pillar reflects Bracell’s commitment to mitigating climate change effects by reducing GHG emissions and sequestering carbon dioxide from the atmosphere. Our 2030 targets focus on decarbonizing production operations and enhancing added value from our natural assets (read more under Climate Action).

GHG emission reduction

Bracell has set a target to reduce carbon emissions per metric ton of pulp produced by 75% by 2030. In 2024, our emissions intensity was 0.208 tCO₂e/adt (learn more under GRI 305-4 GHG emissions intensity).

Carbon sequestration
Also under the climate pillar, we have set a target to remove 25 million metric tons of CO₂ equivalent from the atmosphere between 2020 and 2030. Removals are achieved through planted eucalyptus forests and native vegetation areas designated for conservation under Bracell management. From 2020 to 2024, we removed -4.3 MtCO₂e (see more in Climate Change).

Beyond our Bracell 2030 targets, we have continued to invest in solutions that directly contribute to a low-carbon economy.

In 2024, our new Tissue mill in Lençóis Paulista (SP) began operations with several sustainable features:

– A 50,000-square-meter solar array, generating 7.21 MW of renewable, fossil-free energy. The electricity generated accounts for 20% of energy consumption at the site, where we produce consumer tissue paper, professional line products, and jumbo rolls.

Integration with the existing pulp mill in the same city, enabling raw material to be transported via pipeline. This eliminates the need for truck transport and the drying stage, reducing energy consumption and GHG emissions.

Sustainable Landscapes and Biodiversity

This pillar relates to our efforts to preserve natural ecosystems and protect biodiversity in Bracell’s operating regions, strengthening natural resource protection and more resilient landscapes. Each target under this pillar has a specific focus, with structured actions to drive tangible progress through 2030.

Conservation of native forests and landscapes

Bracell has set a target to support the conservation of 230,000 hectares of native forest on public land by 2025, in partnership with the state governments where we operate. In 2024, we reached 18,000 hectares conserved, across the states of São Paulo, Bahia, and Mato Grosso do Sul, fully meeting our annual target (learn more under Biodiversity and ecosystems).

Wildlife reintroduction

Another target is to double the number of areas certified by environmental agencies for wildlife reintroduction into native forests under Bracell’s management by 2030. In 2024, we ended the year with four areas certified in the Northeast (see more under GRI 101-2 Managing Impacts on Biodiversity).

Conservation research

We support and advance research on biodiversity conservation. In 2024, we supported eight environmental research projects, fully meeting the annual target (learn more on Biodiversity and ecosystems).

Protecting forests and biodiversity is intrinsic to our business. In our forestry operations, we implement targeted strategies to protect native vegetation and biodiversity within the Caatinga, Cerrado, and Atlantic Forest biomes hosting our operations (learn more about our management practices under Biodiversity and ecosystems).

Empowering Lives

The Empowering Lives pillar focuses on promoting diversity and inclusion, strengthening public education, and supporting livelihoods in Bracell’s areas of operation. Our 2030 targets reflect our commitment to human and social development, aligned with creating a fairer and more inclusive environment.

Women in Leadership

In 2024, we exceeded our target for women in leadership positions, ending the year with 29.4% of our employees in leadership roles, above our target of 27% for the year. A total of 117 women currently hold leadership positions at Bracell, as part of our commitment to gender equality.

Note: the women in leadership target in our Bracell 2030 roadmap is based on the number of female leaders working directly in our pulp operations.

Inclusive Work Environment

As part of our Diversity & Inclusion (D&I) targets, we aim to achieve 90% positive feedback from affinity group employees regarding respect and equity in the workplace by 2030. In 2024, the first year of implementing the Bracell 2030 roadmap, we established a satisfaction baseline for affinity groups and defined the key performance indicators that will guide future progress, based on a Diversity & Inclusion Census conducted during the year. The census surveyed employees in all business units who were part of affinity groups at the time of the survey. When asked about their overall satisfaction with Bracell, 27% of respondents expressed satisfaction.

Women-Owned Community Impact Businesses

Bracell aims to ensure that at least 60% of supported impact businesses are led by women by 2030. This initiative reflects our commitment to women’s leadership and income generation in the communities where we operate, through our Bracell Social investment platform (learn more under GRI 203-1 Infrastructure investments and services supported).

Income Generation in Priority Areas

We also aim to increase the income of families participating in our income-generation projects in priority areas by 20% by 2030, driving economic inclusion and sustainable local development.

Quality Public Education

In education, our target is to increase Portuguese and math proficiency by 30% in public schools supported by Bracell, improving learning outcomes in communities with low academic performance.

In 2024, we carried out the following initiatives focused on strengthening local communities as part of our Bracell 2030 roadmap:

1. Social and Economic Assessment in São Paulo: we conducted an assessment to identify opportunities for improving public education and reducing poverty in municipalities located within the area of influence of our operations.
2. Continuing Education Program assessment: we conducted an assessment of impact from our program supporting the professional development of public school teachers and principals, helping to strengthen local continuing education programs. The program is running in municipalities in the state of Bahia, where we also began updating the regional social and economic assessment.
3. Territorial development assessment: we carried out a comprehensive assessment to identify the region’s strengths, challenges, and opportunities for advancing sustainable development in municipalities where we operate in Mato Grosso do Sul.
4. Social Target Management and Monitoring Framework: we developed a comprehensive framework for tracking Bracell 2030 social targets, including baseline definitions, an impact framework, and rationale for calculating metrics—ensuring greater precision in measuring results and social impact over the coming years.

Promoting Sustainable Growth

The Promoting Sustainable Growth pillar comprises a set of targets and initiatives focused on resource efficiency, waste management, and continuous improvement of production processes, with a goal to reduce environmental impacts and drive operational innovation.

Reducing Water Consumption

Bracell has set a target to reduce water consumption per metric ton of pulp produced by 47% to 16.6 m³/adt by 2030. In 2024, we met the year’s target with a consumption of 19.2 m³/adt, a 38.2% reduction compared to our 2020 baseline of 31.1 m³/adt.

Reducing Landfill Waste

We are also working to reduce the volume of industrial solid waste sent to landfills per metric ton of pulp by 90%. In 2024, 27.1 kg/adt was sent to landfills, significantly outperforming the annual target of 43.7 kg/adt (learn more in GRI 306-5 Waste directed to disposal).

Efficiency in Chemical Recovery

With a focus on production efficiency and reducing waste in the pulp manufacturing process, we set a target to achieve 97% recovery of lime and caustic soda by 2030. In 2024, we reached 96.2%, meeting the target set for the year.

Integrated Sustainability Management

The initiatives under this pillar connect with key strategic topics such as climate change, biodiversity and ecosystems, water and effluent management, waste management, occupational health and safety, employee development, and community relations. These areas are all addressed by sustainability performance indicators that inform the continuous improvement of our management approach.

We align our business and sustainability objectives, targets, and commitments with our Purpose, Vision, Values and Sustainability Vision, ensuring that environmental, social, and governance (ESG) factors are fully integrated into our business strategy.

The Sustainability Steering Committee—Bracell’s highest governance body for ESG matters—is advised by our top operational leadership, including the heads of forestry operations, mill operations, logistics, legal, internal audit, corporate affairs, and human resources, along with the Vice President of Sustainability. This structure enables a comprehensive analysis of environmental, social and governance risks and impacts.

In addition, Bracell has a Crisis Committee that is convened to manage unexpected events and emergencies, ensuring rapid, coordinated responses to mitigate impacts on operations and stakeholders.

This model supports a governance structure that is both agile and aligned with Bracell’s commitment to sustainability and organizational resilience.

Regulation and Voluntary Commitments

Our strategy and corporate governance are fully compliant with Brazilian legislation, regulatory standards, certifications, and international sustainability standards. We have also subscribed to voluntary commitments. Our corporate policies and internal procedures additionally draw on:

• Brazilian Labor Ministry regulations and standards (NRs)
• the UN Global Compact’s Ten Universal Principles
• the UN Women’s Empowerment Principles (WEPs)
• the International Finance Corporation’s (IFC) Performance Standards on Environmental and Social Sustainability¹
• the International Bill of Human Rights
• the UN Guiding Principles on Business and Human Rights
• the International Labor Organization’s (ILO) Declaration on Fundamental Principles and Rights at Work
• the United Nations Declaration on the Rights of Indigenous Peoples.

¹ The largest global development institution focused on the private sector in developing countries.

As signatories of the Global Compact, we annually report on progress and results on topics linked to the 10 Universal Principles. Bracell’s Communication on Progress is available here.

We invest in cutting-edge technology throughout our value chain, and have set strategic targets across sustainable growth, climate change mitigation, biodiversity protection, and creating positive value for people.

Our commitments and policies reflect the principles that have guided Bracell’s sustainability journey. Learn about some of the key milestones in this journey:

2003

• Bahia Specialty Cellulose and Copener Florestal start operation, focused on specialty pulp production

2014

• First materiality assessment to identify Bracell’s priority sustainability topics, supported by stakeholder engagement

2018

• Materiality matrix updated and Sustainability Policy revised by an independent third party
• Our new pulp business unit in Lençóis Paulista (SP) starts operations
• Project Star is launched to expand and modernize the site, including the construction of two flexible lines for soluble and kraft pulp production

2019

• We launch Bracell’s Corporate Sustainability Policy, applicable to all operations in Bahia and São Paulo
• Bracell launches a corporate sustainability strategy, informed by stakeholder consultations and a risk and opportunity assessment in communities near our operations in Bahia
• We establish regional sustainability committees in Bahia and São Paulo
• Bracell publishes its first corporate Sustainability Report, prepared in accordance with the GRI Standards and assured by an independent third party

2020

• We launch our first public corporate sustainability commitment—our Sustainability Vision and Strategy: a roadmap with 17 corporate environmental, social, and governance programs designed through stakeholder consultations, desktop reviews, international sustainability protocols, and market research
• Bracell becomes a UN Global Compact signatory and commits to reporting annual progress in line with the Ten Principles
• We conduct a participatory social and economic assessment in 16 key municipalities in São Paulo, forming the basis for a targeted social action plan

2021

• Bracell joins the Brazilian Business Commitment to Sustainable Development (CEBDS), which advocates for sustainable development in collaboration with government and civil society and represents the World Business Council for Sustainable Development (WBCSD) network in Brazil
• We publish Bracell’s Sustainability Vision and Strategy and a roadmap comprising 17 ESG programs

–      Sustainability committees begin tracking progress on our sustainability strategy.

• Commissioning begins on the two flexible lines at our Lençóis Paulista site (SP), with renewable generation capacity and approval for commercial electricity operations, supplying between 150 MW and 180 MW to the national grid

2022

• We create the role of Sustainability VP to further strengthen sustainability practices, projects, goals, and governance across operations
• We launch an updated materiality matrix, informed by a survey of internal and external stakeholders
• Bracell publishes a Disclosures Hub as a supplement to our Sustainability Report – DH 2021, DH 2022 and DH 2023.
• We launch our One-to-One Commitment to support the conservation of native vegetation equivalent in area to our eucalyptus plantations—every hectare of eucalyptus forests we plant will be matched with another hectare of preserved native vegetation.
• We submit Bracell’s targets to the Brazilian Business Commitment for Biodiversity (CEBDS) and join the Action for Nature Platform and Net Zero Movement, also led by CEBDS.
• We revise our sustainability roadmap targets, covering topics relevant to ESG rating agencies, sustainability indices, and stakeholders

2023

• We develop and launch Bracell 2030, a long-term roadmap outlining commitments across climate, nature, sustainable pulp production, people, and community, aligned with the UN 2030 Agenda.
• We update our Sustainability Policy.
• Bracell introduces Human Rights, Pulpwood and Fiber Sourcing, and Anti-Corruption and Anti-Bribery Policies.
• The first independent audit reports are published on Bracell’s One-to-One Commitment and Greenhouse Gas (GHG) Emissions inventory for the period 2022.
• Bracell receives International Renewable Energy Certificates (I-RECs) as proof that the electricity sold from our on-site generation facilities in Lençóis Paulista (SP) is renewably sourced.
• We join the SDG Ambition Accelerator program, which supports companies participating in the UN Global Compact in setting ambitious targets supporting the SDGs within their core business strategies.
• Bracell joins Rede Mulher Florestal, a non-governmental, non-profit, non-partisan organization created to foster discussion about gender equity in the forestry sector, and is named vice president of the Network.
• Bracell acquires OL Papéis, now renamed as Bracell Papéis and incorporating our entire Tissue business.
• Bracell becomes a member of the Brazilian GHG Protocol Program (PBGHG) and publishes GHG inventory data in the Public Emissions Registry for the first time. The PBGHG recognizes participating organizations for voluntary accountability to stakeholders who are increasingly concerned with corporate social and environmental responsibility.
• Bracell is awarded the GHG Protocol Gold Badge, a distinction awarded to organizations that demonstrate high levels of accuracy and transparency in their greenhouse gas inventory submissions to the Brazilian GHG Protocol Program’s Public Emissions Register (RPE).

2024

• We conduct our first double materiality assessment of our sustainability agenda.
• We also begin reporting progress toward the Bracell 2030 targets and commitments.
• Our Forestry R&D team recommends the commercial planting of two novel clonal blends—one in São Paulo and one in Bahia.
• Bracell Papéis’ new facility in Lençóis Paulista (SP) begins operations. This facility includes key logistical and sustainability features, such as pulp transport via a pipeline for Tissue production, and a 50,000 square-meter solar array installed on the roof.
• We commission a new, safer, and more efficient biomass boiler at the Bracell Papéis mill in Feira de Santana (BA).
• A new cooking line is installed at our Bahia site, using more modern and efficient technology, with projected reductions in water and natural gas use, and consequently, greenhouse gas emissions.
• Bracell is again awarded the GHG Protocol Gold Badge, a distinction awarded to organizations that demonstrate high levels of accuracy and transparency in their greenhouse gas inventory submissions to the Brazilian GHG Protocol Program’s Public Emissions Register (RPE).
• We submit our first report to the CDP, earning “B” scores for our Climate, Forest, and Water reports.

Bracell’s Integrated Management System includes mechanisms for identifying and addressing complaints, reports, and concerns.

We offer two dedicated channels for receiving complaints, concerns, and reports—both covering the full scope of Bracell’s operations: Contato Seguro and Contact Us. These are available to all stakeholders. Through these channels, we maintain contact with whistleblowers to provide updates on the progress and status of their case.

We follow a standardized process for handling complaints, concerns, and reports. These cases are handled by an independent third party, which contacts the relevant Bracell departments based on the specific needs of each case. The Community Relations team, a component of the Corporate Relations team, is responsible for managing this process.

All case handling is tracked through a system that monitors service indicators, such as time taken to resolve the issue and time to provide feedback to the person who submitted the report regarding action taken.

For whistleblowing reports specifically, the Contato Seguro channel is managed by an independent third party, with the Internal Audit leading the investigation process, along with the Controllership and Legal teams. The investigations aim to identify the root causes of the incident, so that corrective and preventive actions can be implemented to avoid recurrence.

Bracell also plans and monitors the implementation of impact mitigation measures through our Sustainability Steering Committee—responsible for routine operational management—and Crisis Committee—responsible for managing emergencies (see more under GRI 2-16 Communication of critical concerns).

The Sustainability Steering Committee reviews the findings from all external audits and assessments on compliance with standards such as PEFC, ISO 9001, ISO 14001, IFC Performance Standards, and the Equator Principles.

The improvement measures identified through these audits and compliance reviews are followed up on by the Sustainability Steering Committee. This committee also plays a direct role in evaluating and deciding on strategic social and environmental issues submitted for risk and opportunity assessments.

In 2024, we did not record any cases requiring remedial action in our pulp operations in São Paulo.

Bracell Papéis Sudeste investigated five substantiated cases, which were addressed and resolved through disciplinary and administrative actions.

Our pulp operations in Bahia recorded 82 reports related to misconduct, inappropriate behavior, operational issues, fraud, contractor-related issues, and other matters. Of these: 14 are still under review, 15 were resolved without requiring remedial action, and 53 were resolved through remedial action.

Bracell Papéis Nordeste recorded 50 reports. Of those, 24 are still under review, seven were resolved without remedial action, and 19 were resolved with remedial action.

Contato Seguro

Open to all Bracell stakeholders, Bracell Escuta is a platform for reporting misconduct and non-compliance with applicable laws and regulations, our Code of Conduct, or other company policies.

Reports are handled confidentially and whistleblowers are kept anonymous. Submissions are received and managed by an independent third party. Cases are investigated by Bracell’s Internal Audit Department, which reports directly to the Executive Board and the RGE Group.

Contact details:
denuncias.bracell@contatoseguro.com.br

www.contatoseguro.com.br/bracell

0800 810 8546

 

Contact Us

Open to all stakeholders, this channel is used for submitting questions, suggestions, and compliments, as well as lodging complaints. Requests are received and managed by an independent third party and forwarded to the relevant departments depending on the topic. This process is overseen by the Community Relations team within Corporate Affairs.

Contact:
Bahia:
0800-284-4747
faleconosco@bracell.com

São Paulo:
0800-709-1490
faleconoscosp@bracell.com

Corporate processes and policies for preventing and mitigating impacts

Topic	Objectives and actions
Sustainability roadmap	Bracell has developed a sustainability roadmap with targets set for 2030 across climate, biodiversity, water consumption in mill processes, mill waste disposal, women in leadership, income generation, and improvement of public education.
Local community database	A formalized commitment to sustainable development and best social practices, with a goal to positively impact people and communities through our Human Rights Policy.
	Identifying potential impacts on communities near our operations, providing official communication channels, and addressing complaints and concerns raised by community members
	A community database supported by field visits for data collection. Based on the information gathered, we manage potential impacts caused by our operations, either preventing and/or mitigating them.
Operational risk and impact matrix	Developing zoning maps of impacts in our areas of operation, identifying plantation, conservation, and development areas.
	Using the double materiality approach to assess social and environmental impacts and associated financial risks.
Local community engagement	Regular meetings with local communities and neighbors to share information before, during, and after harvesting, transport, and forestry operations. The goal is to inform them about Bracell’s activities.
Stakeholder matrix	Mapping out and preparing a matrix of stakeholders, identifying people or groups directly or indirectly affected by our projects and activities, as well as those capable of positively or negatively influencing business outcomes.
Odor Perception Network	An Odor Perception Network in the area surrounding our mill, with 25 community representatives around the mill receiving training, attending periodic meetings and communicating directly with company representatives.
Disseminating information and our complaints channel	Distributing informational materials to local communities about forestry operations—presenting the eucalyptus cycle, community engagement procedures, and promoting Bracell’s Contact Us channel.
Internal and external audits	Annual internal and external audits to ensure compliance with PEFC standards, ISO 9001, ISO 14001, and IFC Performance Standards. An independent third party also audits processes and sustainability performance data: our Sustainability Reports, Disclosures Hub, Greenhouse Gas Inventory, and progress on our One-to-One Commitment.
Continuous Improvement Assessments	Assessment of social and environmental aspects and impacts, involving all our operations, in order to identify, prevent and address any issues.
	Continuous monitoring of operational impacts and ongoing preventive actions.
	Developing action plans to implement policies, procedures, and continuous improvement processes, working toward quality and operational efficiency targets.
Product quality and customer service management	Product assessments on consumer safety, health, and environmental risks.
	Monitoring product quality and customer service requirements at all stages of the production process—from forestry to delivery—with ongoing after-sales engagement.
Managing impacts on employees	Bracell’s Integrated Occupational Health and Safety Management System for both direct employees and contractors at our operations.
Managing impacts on suppliers	Policies such as our Code of Conduct, Ethics and Procurement Code, Sustainability Policy, and Pulpwood and Fiber Sourcing Policy, which outline guidelines on mitigating risks and human rights impacts. These policies also govern contracts with suppliers and contractors directly involved in our operations.

 

Read more about how we address and respond to stakeholder concerns, complaints, and reports under GRI 2-16 Communication of critical concerns.

Bracell has a structured set of policies, codes, and internal standards that guide employees on conduct aligned with our values and commitments (see more under GRI 2-13 Delegation of responsibility for managing impacts). To ensure these guidelines are effectively implemented and to promote responsible business conduct, Bracell provides training to leaders, employees, contractors, and suppliers directly involved in our operations.

This training cover topics such as ethics, integrity, compliance, and occupational health and safety, helping raise awareness and align all audiences with Bracell’s principles (see more under GRI 404-2 Programs for upgrading employee skills and transition assistance programs).

In addition to actively communicating these guidelines, we regularly evaluate whether trained audiences are complying with requirements, ensuring effective management.

Bracell also provides two dedicated channels for reporting concerns related to business conduct, ensuring transparency and a welcoming space for complaints or questions about organizational behavior.

We provide two mechanisms for raising concerns regarding business conduct:

Contato Seguro

Open to all Bracell stakeholders, Bracell Escuta is a platform for reporting misconduct and non-compliance with applicable laws and regulations, our Code of Conduct, or other company policies.

Reports are handled confidentially and whistleblowers are kept anonymous. Submissions are received and managed by an independent third party. Cases are investigated by Bracell’s Internal Audit Department, which reports directly to the Executive Board and the RGE Group.

Contact details:
denuncias.bracell@contatoseguro.com.br

www.contatoseguro.com.br/bracell

0800 810 8546

Contact Us

Open to all stakeholders, this channel is used for submitting questions, suggestions, and compliments, as well as lodging complaints. Requests are received and managed by an independent third party and forwarded to the relevant departments depending on the topic. This process is overseen by the Community Relations team within Corporate Affairs.

Contact:
Bahia: 0800-284-4747
faleconosco@bracell.com

São Paulo: 0800-709-1490
faleconoscosp@bracell.com

Bracell believes in and actively supports membership-based initiatives as a way to foster engagement and promote sustainable development in Brazil.

We are active members of a range of industry associations, councils, committees, forums, and labor unions. Key memberships include the Brazilian Tree Industry (Ibá), the Brazilian Business Council for Sustainable Development (CEBDS), the Women in Forestry Network, and the UN Global Compact.

Since 2021, Bracell has been a member of the Brazilian Business Council for Sustainable Development (CEBDS), which represents the World Business Council for Sustainable Development (WBCSD) in Brazil. As a member, Bracell contributes to working groups on Climate, Energy and Sustainable Finance, Biodiversity and Biotechnology, and Social Impact.

Associations and forums in which Bracell holds membership:

Industry and technical associations:

• Bahia Association of Forest Estate Companies (ABAF)
• Brazilian Association for Standardization (ABNT)
• Brazilian Pulp and Paper Association (ABTCP)
• Brazilian Association of Port Terminals (ABTP)
• Brazilian Association of Bonded Terminals and Warehouses (ABTRA)
• São Paulo Association of Planted Forest Producers, Suppliers and Consumers (Florestar SP)
• Brazilian Forestry Association (IBÁ)
• Forestry Research Institute (IPEF)
• Forestry Research Society (SIF)
• Bahia State Union of Paper and Pulp Industries (SINDPACEL)

Environment, water, and biodiversity:

• CETESB Environmental Committee – Pulp and Paper
• North Recôncavo and Inhambupe Watershed Committees (CBHRNI)
• State Environment Board (CEPRAM)
• State Board of Water Resources (CONERH)
• Management Committees of the Joanes-Ipitanga, Rio Batalha, Litoral Norte, and Cuesta Guarani Protected Areas
• Atlantic Forest Reserve Subcommittee
• Global Partners for the Future of our Forests (Camcore)
• Caetetus Ecological Station Council
• Member of the São Paulo Forest Forum

Infrastructure, energy, and industry:

• Brazilian Power Sector Regulator (ANEEL)
• National Association of Freight Transportation Users (ANUT)
• Wastewater Treatment Center (CETREL)
• São Paulo State Industry Center – Ciesp Botucatu
• Camaçari Industrial Development Committee (COFIC)
• COFIC Safety Council

Safety, community, and local governance:

• Environmental Councils of Alagoinhas, Entre Rios, and Esplanada (BA)
• Esplanada Public Safety Council (BA)
• Northeast Public Safety Council (CONSENE) – as an invited member
• Lençóis Watershed Management Committee
• Municipal Environmental Council of Botucatu

Sustainability and diversity networks:

• Brazilian Business Council for Sustainable Development (CEBDS)
• United Nations Global Compact
• Rede Mulher Florestal

Bracell is committed to consistently cultivating strategic, ethical, and enduring relationships with stakeholders. Supporting this commitment is a set of policies and guidelines including our Code of Conduct, which provides clear guidance to employees on interacting with stakeholders appropriately.

The Corporate Affairs team is responsible for efforts to engage and cultivate relationships with external stakeholders such as trade associations, government agencies, and local and traditional communities.

Priority stakeholder groups have been identified based on a comprehensive analysis of their impact and influence on Bracell’s operations. This analysis informed specific engagement recommendations tailored for the following stakeholders: employees (both internal and external), local communities, indigenous and traditional peoples, suppliers, government agencies, customers, trade associations, and financial institutions.

Stakeholders	Definition	Engagement practices
Bracell employees	Employees hired under a formal employment contract.	As a growing company, we continuously invest in people, with a focus on attracting and retaining talent that can contribute to sustainable business growth (see more in GRI 3-3: Management of material topics: Talent acquisition, development and retention). We offer professional development programs, a positive organizational culture, and robust health and safety protocols. All initiatives are aligned with our culture of diversity, equity, and inclusion.
Bracell contractors	Contractors working for Bracell.	We require all contractors to fully comply with Brazilian legislation and uphold our human rights practices. We provide training in key topics and include outsourced workers in our Health and Safety System.
Local communities	Social groups living within the area of influence of Bracell’s forestry or industrial operations. Even if located outside operational boundaries, these communities may be directly or indirectly impacted by our operations. They include both traditional populations and migrant groups settled in the region. “Area of influence” means the geographic territory where Bracell’s activities are perceived by communities.	Our community relationship management practices include: a matrix of social aspects and impacts social and economic assessments of potentially affected communities neighboring our forestry operations; influence maps showing the geographic coordinates of communities and neighbors affected by silviculture, harvesting, and pulpwood transport activities communication with communities and neighbors directly or indirectly impacted by forestry operations (such as soil preparation, planting, road operations, harvesting, and haulage). formal mechanisms for receiving and addressing concerns and complaints related to our operations.
Traditional peoples and communities	These are culturally distinctive groups who self-identify as such and have unique social structures and ways of life based on their collective occupation and use of territories and natural resources, which are essential for their survival and for preserving their cultural, social, religious, ancestral, and economic practices. They use knowledge, practices, and innovations passed down through tradition. Among the groups recognized as traditional communities are Remnant Quilombo Communities (Quilombolas), recognized by the Palmares Cultural Foundation, and Indigenous Communities, recognized by the Brazilian indigenous authority (FUNAI). This definition aligns with Brazil’s National Policy for the Sustainable Development of Traditional Peoples and Communities (Decree No. 6.040/2007).	Bracell’s Integrated Management System (IMS) includes a standard, available to all employees, on Relations with Traditional Peoples and Communities. The standard outlines criteria and requirements for establishing an integrated management process for engaging with communities neighboring Bracell’s forestry and mill operations. It also contains guidance on relations with traditional peoples and communities, in compliance with applicable laws and regulations (learn more under GRI 411-1 Incidents of violations involving rights of indigenous peoples)
Suppliers	These are companies or individuals engaged by Bracell to supply products or services essential to our operations.	Across the entire supply chain, we conduct assessments on management practices and social and environmental procedures. These assessments are conducted prior to onboarding and throughout the duration of supplier relationships (read more under GRI 3-3 Management of material topics: Supply chain management).
Government	This includes government entities at the municipal, state, and federal levels with which Bracell interacts to fulfill legal, regulatory, and institutional obligations.	Institutional inquiries from government bodies or associations follow the governance procedures of Bracell’s Institutional Affairs team (see GRI 413-1 Operations with local community engagement, impact assessments, and development programs).
Customers	These are companies or organizations that purchase Bracell products and with whom we maintain commercial and customer-service relationships.	We continually monitor customer satisfaction through mechanisms as part of our product quality control system and consumer health and safety indicators.
Trade associations	These include associations, committees, forums, unions, and civil society organizations of which Bracell is a member, helping to shape sustainability discussions at national and international levels. These associations strengthen stakeholder engagement through collaboration, institutional dialogue, and partnerships.	Bracell believes in and actively supports membership-based initiatives as a way to foster engagement and promote sustainable development in Brazil. Supporting this, we are active members of a range of industry associations, councils, committees, forums, and labor unions. We have formal mechanisms in place for receiving and addressing reports of non-compliance with laws or Bracell’s Code of Ethics.

Note: Stakeholders are individuals or organizations whose interests may be positively or negatively affected by Bracell’s activities. These include customers, NGOs, communities, suppliers, among others.

Bracell awarded the Jatobá Public Relations Trophy

Bracell’s communication and sustainability initiatives were recognized in 2024 with the Jatobá Public Relations Trophy. We received a special award as Company of the Year, a category that celebrates communication efforts combining innovation, strategy, and impact. We presented three case studies: “The Bracell 2030 Roadmap”; the documentary “Project Star: A Next-Generation Pulp Mill,” produced in partnership with Discovery, and an internal campaign against harassment and discrimination called “It’s Not Whining.”

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.

Bracell’s materiality matrix comprises the most important socio-environmental topics, according to the Company’s main stakeholders. The data disclosed in Bracell’s Sustainability Report and Disclosures Hub are verified by an independent third party, free from conflicts of interest and exempt from any legal or regulatory obligations, in accordance with the Limited Assurance Report (Sustainability Report and Indicators Center), the GHG Inventory Verification Statement, and the Limited Assurance Report (One-for-One Commitment).

Access the GRI Content Summary.

Climate Action: climate positive operations supporting a low-carbon economy

Material topic5	Climate change: planning, policies and initiatives to mitigate emissions, establish low-carbon production capabilities and adapt to a warming planet.
Scope	GRI Disclosure1	SASB2	ODS3	UNGC4
Scope of reporting	GRI 3-3	RR-PP-110a.1 RR-PP-110a.2 RR-PP-120a.1 RR-PP-130a.1	13	7, 8, 9
	201-2
	302-1		7, 12, 13
	302-2
	302-3
	302-4
	302-5
	305-1		3, 12, 13, 14, 15
	305-2
	305-3
	305-4		13, 14, 15
	305-5
	305-6		3, 12
	305-7		3, 12, 14, 15

 

Sustainable landscapes: build regenerative systems that benefit nature, biodiversity and ecosystem services

Material topic5	Biodiversity and ecosystems: strategies, policies, and programs to preserve biodiversity and natural ecosystems. This includes forest conservation and restoration practices, protection of plant and animal species, and preventing deforestation. It also involves using sustainable forest management practices and following certification standards to ensure effective ecosystem protection.
Scope	GRI Disclosure1	SASB2	ODS3	UNGC4
Scope of reporting	3-3	Not applicable	6, 14, 15	8
	101-1
	101-2
	101-4
	304-1
	304-2
	304-3
	304-4		14, 15

 

Sustainable growth: expand our business through increased efficiency, circularity and responsible production

Material topic5	Water and effluent management: strategies, policies, and programs to preserve water resources and watersheds, improve water efficiency, and manage risks and impacts associated with water availability and the treatment of production effluents
Scope	GRI Disclosure1	SASB2	ODS3	UNGC4
Scope of reporting	3-3	RR-PP-140a.1 RR-PP-140a.2	6, 12	7, 8
	303-1
	303-2		6
	303-3
	303-4
	303-5
Strategic topic	Waste management: circularity, waste reduction, and minimizing landfill disposal.
Scope of reporting	306-1	Not applicable	3, 6, 11, 12	7, 8
	306-2		3, 6, 8, 11, 12
	306-3		3, 6, 11, 12
	306-4		3, 11, 12
	306-5		3, 6, 11, 12, 15
Material topic5	Supply chain management: requiring, managing and enforcing high standards of supplier quality, including policies and procedures outlining social and environmental requirements in procuring goods and services.
Scope of reporting	3-3	RR-PP-430a.1	8, 12, 16	1, 2, 4, 5, 7, 8
	308-1		12
	308-2
	407-1		8
	408-1		5, 8, 16
	409-1		5, 8
	414-1		5, 8, 16
	414-2

 

Empowering lives: empower our people and communities through transformational initiatives

Material topic5	Talent acquisition, development and retention: initiatives and recognition programs that value human capital, along with strategies to attract and retain talent.
Scope	GRI Disclosure1	SASB2	ODS3	UNGC4
Scope of reporting	3-3	Not applicable	4, 5, 8, 10	3, 6
	201-3		8
	202-1		5, 8
	401-1		4, 5, 8, 10
	401-2		3, 5, 8
	401-3		5, 8
	404-1		4, 5, 8, 10
	404-2		8
	404-3		5, 8, 10
	405-1		5, 8
	405-2		5, 8, 10
	406-1		5, 8
Material topic5	Occupational health, well-being, and safety: initiatives and policies focused on employee health, workplace safety, and quality of life.
Scope of reporting	3-3	Not applicable	8	1, 2, 3
	403-1
	403-2
	403-3
	403-4		8, 16
	403-5		9
	403-6		3
	403-7		8
	403-8
	403-9		3, 8, 16
	403-10
Material topic5	Community engagement and local development: managing relationships with local communities to mitigate risks, prevent negative impacts, and create positive social value.
Scope of reporting	3-3	Not applicable	5, 8, 9, 11	1, 2, 7, 8, 9
	202-2		8
	203-1		5, 9, 11
	203-2		1, 3, 8
	204-1		8
	411-1		2
	413-1		1, 2
	413-2

 

Governance and risk management
Strategic topic	Compliance, ethical conduct, integrity, and transparency: implement good practices consistent with Company policies, applicable laws and regulations and industry standards, ensure compliance, and uphold ethics, integrity and transparency.
Scope	GRI Disclosure1	SASB2	ODS3	UNGC4
Scope of reporting	2-27	Not applicable	16	8, 10
	205-1
	205-2
	205-3
	206-1

Notes:

¹ Bracell-reported GRI disclosure linked to the relevant material topics.
² Bracell-reported SASB disclosures.
³ SDGs affected by Bracell’s material topics and Bracell 2030 targets.
⁴ Global Compact Principle related to the material topic.
⁵ In 2024, we updated our materiality assessment using the double materiality approach, considering both environmental/social and financial impacts (see GRI 3-1 Process to determine material topics). Bracell’s material topics have been mapped to the relevant Bracell 2030 drivers based on their contribution to climate, biodiversity, human rights, and sustainable development.

 

Compared to the previous matrix, the main changes in material topics were:

Bracell 2030	Material topics in 2022/2023	Material topics in 2024
CLIMATE ACTION Climate positive operations supporting a low-carbon economy	• Climate change • Energy efficiency	• Climate change
SUSTAINABLE LANDSCAPES AND BIODIVERSITY Build regenerative systems that support	• Biodiversity	• Biodiversity and ecosystems
PROMOTING SUSTAINABLE GROWTH Expand our business through increased efficiency, circularity and responsible production	• Water and effluents • Waste management • Supplier social and environmental assessment	• Water and effluent management • Supply chain management
EMPOWERING LIVES Provide capacity building to our people and communities through transformational initiatives	• Human rights in the value chain • Community engagement • Valuing human capital	• Talent acquisition, development and retention • Community engagement and local development • Occupational health, well-being, and safety
GOVERNANCE AND RISK MANAGEMENT	• Compliance, ethical conduct, integrity and transparency

 

GRI disclosure for each material topic

Topic 13.1 – Emissions	This topic addresses air emissions, including greenhouse gas (GHG) emissions. Emissions can have negative impacts on air quality, ecosystems, and on human and animal health. GHG emissions are also a major contributor to climate change.	Disclosure 3-3 Management of material topics Disclosure 305-2 Energy indirect (Scope 2) GHG emissions 13.1.3 Disclosure 305-3 Other indirect (Scope 3) GHG emissions 13.1.4 Disclosure 305-4 GHG emissions intensity 13.1.5 Disclosure 305-5 Reduction of GHG emissions 13.1.6
Topic 13.2 Climate adaptation and resilience (within the scope of the material topic Climate change)	Organizations contribute to climate change and are simultaneously affected by it. Climate adaptation and resilience refer to how an organization adjusts to current and anticipated climate change-related risks, as well as how it contributes to the ability of societies and economies to withstand impacts from climate change.	Disclosure 3-3 Management of material topics 13.2.1 Disclosure 201-2 Financial implications and other risks and opportunities due to climate change 13.2.2
Topic 13.3 Biodiversity	Biodiversity refers to the variability that exists among living organisms. It includes diversity within species, between species and of ecosystems. Biodiversity not only has intrinsic value, but is also vital to human health, food security, economic prosperity, and mitigation of climate change and adaptation to its impacts. This topic covers impacts on biodiversity, including on plant and animal species, genetic diversity, and natural ecosystems.	Disclosure 3-3 Management of material topics 13.3.1 Disclosure 304-1 Operational sites owned, leased or managed in or adjacent to protected areas and areas of high biodiversity value outside protected areas 13.3.2 Disclosure 304-2 Significant impacts of activities, products, and services on biodiversity 13.3.3 Disclosure 304-3 Habitats protected or restored 13.3.4 Disclosure 304-4 IUCN Red List species and national conservation list species with habitats in areas affected by the organization’s operations 13.3.5
Topic 13.7 Water and effluents	Recognized as a human right, access to fresh water is essential for human life and well-being. The amount of water withdrawn and consumed by an organization and the quality of its discharges can have impacts on ecosystems and people. This topic covers impacts related to the withdrawal and consumption of water and the quality of water discharged.	Disclosure 3-3 Management of material topics 13.7.1 Disclosure 303-1 Interactions with water as a shared resource 13.7.2 Disclosure 303-2 Management of water discharge-related impacts 13.7.3 Disclosure 303-3 Water withdrawal 13.7.4 Disclosure 303-4 Water discharge 13.7.5 Disclosure 303-5 Water consumption 13.7.6
Topic 13.8 Waste	Waste refers to anything that a holder discards, intends to discard, or is required to discard. When inadequately managed, waste can have negative impacts on the environment and human health, which can extend beyond the locations where waste is generated and discarded. This topic covers impacts from waste and the management of waste.	Disclosure 3-3 Management of material topics 13.8.1 Disclosure 306-1 Waste generation and significant waste-related impacts 13.8.2 Disclosure 306-2 Management of significant waste-related impacts 13.8.3 Disclosure 306-3 Waste generated13.8.4 Disclosure 306-4 Waste diverted from disposal 13.8.5 Disclosure 306-5 Waste directed to disposal 13.8.6
Topic 13.12 Local communities	Local communities comprise individuals living or working in areas that are affected or that could be affected by an organization’s activities. An organization is expected to conduct community engagement to understand the vulnerabilities of local communities and how they may be affected by the organization’s activities. This topic covers socioeconomic, cultural, health, and human rights impacts on local communities.	Disclosure 3-3 Management of material topics 13.12.1 Disclosure 413-1 Operations with local community engagement, impact assessments, and development programs 13.12.2 Disclosure 413-2 Operations with significant actual and potential negative impacts on local communities 13.12.3
Topic 13.14 Rights of indigenous peoples (within the scope of the material topic Community relations)	Indigenous peoples are at higher risk of experiencing negative impacts more severely as a result of an organization’s activities. Indigenous peoples have both collective and individual rights, as set out in the United Nations Declaration on the Rights of Indigenous Peoples and other authoritative international human rights instruments. This topic covers impacts on the rights of indigenous peoples.	Disclosure 3-3 Management of material topics 13.14.1 Disclosure 411-1 Incidents of violations involving rights of indigenous peoples 13.14.2
Topic 13.15 Non-discrimination and equal opportunity (within the scope of the material topic Human rights in the value chain)	Freedom from discrimination is a human right and a fundamental right at work. Discrimination can impose unequal burdens on individuals or deny fair opportunities on the basis of individual merit. This topic covers impacts from discrimination and an organization’s practices related to equal opportunity.	Disclosure 3-3 Management of material topics 13.15.1 Disclosure 405-1 Diversity of governance bodies and employees 13.15.2 Disclosure 405-2 Ratio of basic salary and remuneration of women to men 13.15.3 Disclosure 406-1 Incidents of discrimination and corrective actions taken 13.15.4
Topic 13.16 Forced or compulsory labor (within the scope of the material topic Human rights in the value chain)	Forced or compulsory labor is work or service which is exacted from any person under the menace of penalty and for which a person has not offered themselves voluntarily. Freedom from forced labor is a human right and a fundamental right at work.	Disclosure 3-3 Management of material topics 13.16.1 Disclosure 409-1 Operations and suppliers at significant risk for incidents of forced or compulsory labor 13.16.2
Topic 13.17 Child labor (within the scope of the material topic Human rights in the value chain)	Child labor is defined as work that deprives children of their childhood, their potential, and their dignity, and that is harmful to their development, including by interfering with their education. It is a violation of human rights and can lead to lifelong negative impacts. Abolition of child labor is a fundamental principle and right at work.	Disclosure 3-3 Management of material topics 13.17.1 Disclosure 408-1 Operations and suppliers at significant risk for incidents of child labor 13.17.2
Topic 13.19 Occupational health and safety (within the scope of the material topic Human rights in the value chain)	Healthy and safe work conditions are recognized as a human right. Occupational health and safety involves the prevention of physical and mental harm to workers and promotion of workers’ health. This topic covers impacts related to workers’ health and safety.	Disclosure 3-3 Management of material topics 13.19.1 Disclosure 403-1 Occupational health and safety management system 13.19.2 Disclosure 403-2 Hazard identification, risk assessment, and incident investigation 13.19.3 Disclosure 403-3 Occupational health services 13.19.4 Disclosure 403-4 Worker participation, consultation, and communication on occupational health and safety 13.19.5 Disclosure 403-5 Worker training on occupational health and safety 13.19.6 Disclosure 403-6 Promotion of worker health 13.19.7 Disclosure 403-7 Prevention and mitigation of occupational health and safety impacts directly linked by business relationships 13.19.8 Disclosure 403-8 Workers covered by an occupational health and safety management system 13.19.9 Disclosure 403-9 Work-related injuries 13.19.10 Disclosure 403-10 Work-related ill health 13.19.11
Topic 13.22 Economic inclusion (within the scope of the material topic Community relations)	Economic inclusion concerns an organization’s impacts on access to economic opportunities for local communities and the productive potential of actual and possible suppliers. This topic covers an organization’s approach to economic inclusion of farmers and fishers, and their communities.	Disclosure 3-3 Management of material topics Disclosure 203-1 Infrastructure investments and services supported 13.22.3 Disclosure 203-2 Significant indirect economic impacts 13.22.4
Topic 13.25 Anti-competitive behavior (within the scope of the material topic Compliance, ethical conduct, integrity and transparency)	Anti-competitive behavior refers to actions by an organization that can result in collusion with potential competitors, abuse of dominant market position or exclusion of potential competitors, thereby limiting the effects of market competition. This can include fixing prices or coordinating bids, creating market or output restrictions, imposing geographic quotas, and allocating customers, suppliers, geographic areas, or product lines. This topic covers impacts as a result of anti-competitive behavior.	Disclosure 3-3 Management of material topics Disclosure 206-1 Legal actions for anti-competitive behavior, anti-trust, and monopoly practices 13.25.2
Topic 13.26 Anti-corruption (within the scope of the material topic Compliance, ethical conduct, integrity and transparency)	Anti-corruption refers to how an organization manages the potential of being involved with corruption. Corruption means practices such as bribery, facilitation payments, fraud, extortion, collusion, money laundering, or the offer or receipt of an inducement to do something dishonest or illegal. This topic covers the potential for corruption to occur and the related impacts.	Disclosure 3-3 Management of material topics Disclosure 205-1 Operations assessed for risks related to corruption 13.26.2 Disclosure 205-2 Communication and training about anti-corruption policies and procedures 13.26.3 Disclosure 205-3 Confirmed incidents of corruption and actions taken 13.26.4

Materiality assessments are essential to ensure that our actions are truly representative and strategic. By identifying and prioritizing material topics—both for the business and for our stakeholders—we can steer our projects, initiatives, and operations more effectively. Materiality assessments also deepen our understanding of the impacts we generate and strengthen our ability to enhance positive outcomes. In addition, the disclosures and targets related to our material topics support informed decision-making, increase the credibility of our Annual Sustainability Reports, and contribute to more responsible management of ESG challenges facing our business.