In 2024, Bracell reported a total of ten monetary fines and five non-monetary sanctions related to non-compliance with laws and regulations applicable to our forestry operations in São Paulo. The total amount of fines was R$ 3,919,277.14, including R$ 24,716.64 associated with violations allegedly committed in prior reporting periods.

We consider a case of non-compliance significant where it exceeds R$ 1 million or involves non-compliance with requirements or legislation that could impact the continuity of our activities, cause damage to our reputation or compromise consumer loyalty or customer and employee trust.

In our industrial operations in São Paulo, there were no fines or non-monetary sanctions for non-compliance with laws and regulations in 2024.

Despite having been party to violation notices and labor proceedings, Bracell presented defenses, appeals or judicial proceedings to annul the violation notices, as well as holding a Conduct Adjustment Agreement (TAC) with the public authorities concerning the non-fulfillment of working hours requirements.

In 2024, Bracell received no significant fines relating to non-compliance with laws or regulations.

To ensure compliance, Bracell fulfills federal, state and municipal legislation application to operations and has specialized internal departments addressing these matters, such as Legal, Environment and Certifications, Tax, Workplace Health & Safety, Social, Governance and Compliance. Legal requirements are managed by means of the Verde Ghaia SOGI system, which monitors and ensures compliance with standards applicable to Bracell Bahia.

In the reporting period, no fines or non-monetary sanctions concerning non-compliance with laws or regulations were reported for Bracell Papéis, either in São Paulo or in the Northeast. There were no significant cases of non-compliance during the reporting period.