Bracell’s Sustainability Steering Committee is responsible for decisions and initiatives related to climate change, and for short-, medium-, and long-term strategic planning in this area.

Bracell is advancing its Climate Action strategy by quantifying and managing corporate emissions, setting climate targets, and planning initiatives across operations, all aligned with our Bracell 2030 targets.

2030 Targets

As part of the Bracell 2030 roadmap, we have set two commitments tied to the material topic Climate Change. Our climate goals were developed based on an analysis of the risks and impacts – both positive and negative – Bracell’s operations have on climate change. Our operations emit greenhouse gases (GHG) and also capture CO₂ from the atmosphere by growing and preserving forest areas managed by Bracell, including planted eucalyptus forests and native forests.

By 2030, we have committed to reducing our carbon emissions per metric ton of product by 75% from a 2020 baseline. This means reaching 0.122 tCO₂e/adt. In addition, we will remove 25 MtCO₂e from the atmosphere over the course of a decade—from 2020 to 2030.

For 2024, our interim targets were to close the year with 0.151 tCO2e/adt and 22.19 MtCO2e in removals. Measured results are detailed below:

Target 1: reduce carbon emissions per metric ton of product by 75%, targeting 0.122 tCO₂e/adt

From 2020 to 2024, we reduced carbon emissions per metric ton of product by 61%, reaching 0.208 tCO₂e/adt.

Although we achieved a 63% reduction in our emissions intensity over that period, a number of factors prevented us from meeting our 2024 target. The main negative impacts on emissions reduction came from increased mobile combustion in our operations and a higher occurrence of wildfires. On the positive side, we achieved significant operational gains this year, such as reducing natural gas consumption and expanding the use of biomass in our gasifiers. These initiatives helped reduce emissions from stationary combustion—our largest Scope 1 emissions category—and put us on track to meet our long-term targets.

We are also implementing several initiatives to mitigate climate-change impacts and keep moving forward on decarbonizing our operations. Examples include investments in electric trucks for pulp transport, currently in the trial phase, and in generating and sourcing renewable energy, as detailed in the Energy Efficiency chapter.

Target 2: 25 MtCO₂e removed from the atmosphere between 2020 and 2030

From 2020 to 2024, we removed 4,229,568 tCO₂e. This figure reflects the carbon balance of our operations—i.e. the difference between total removals and emissions (including anthropogenic and biogenic LULUCF—Land Use, Land-Use Change, and Forestry—emissions.

In 2024, we faced the most challenging hydrological scenario of the past five years in the state of São Paulo. The extreme conditions were primarily caused by rising temperatures and a significant decrease in rainfall. Water deficits directly impact forest yields: the greater the deficit, the slower the eucalyptus forest growth, which in turn reduces their ability to remove CO₂ from the atmosphere during the growth process.

Additionally, the adverse climate conditions significantly increased the occurrence of forest fires.

As a result of these extreme weather events, we reached only 19% of our CO₂ removal target for 2024.

Bracell has developed a range of initiatives to mitigate these impacts and increase the resilience of our operations to climate change. Key initiatives include monitoring carbon and water flux in eucalyptus plantations; investing in forest research and development (R&D); integrated climate-related risk and impact management; and conducting climate zoning studies. Learn more in Monitoring Carbon and Water Flux in Eucalyptus Plantations and Climate Zoning Study.

Impacts and risks

Bracell conducts an assessment of the actual and potential impacts related to each material topic in a materiality matrix, considering both positive and negative effects on the economy, the environment, and people—including impacts on human rights. For the topic climate change, the following impacts have been identified:

CDP

In 2024, we responded for the first time to CDP questionnaires and received a B rating across all three evaluated topics: Climate Change; Forests and Water Security. A B rating is strong for companies in their first year of reporting and demonstrates our commitment to transparency and responsible environmental management.

CDP is one of the world’s leading environmental disclosure platforms, recognized for helping companies produce standardized and comparable reporting used by a wide range of stakeholders, including banks, customers, partners, and civil society. Our CDP reporting reflects our commitment to continuously improving environmental management and aligning with international best practices.

GHG Inventory

As a key part of our climate agenda, Bracell annually prepares a corporate inventory of greenhouse gas (GHG) emissions and removals. In 2024, our inventory covered the entire pulp value chain, including emissions from mill operations in Lençóis Paulista (SP) and Camaçari (BA), forestry operations in these states and in Mato Grosso do Sul, and related logistics operations (see more about our forestry operations in the section GRI 2-6 About Bracell).

The data in our GHG Inventory is externally audited by an independent third party, with an Assurance Statement published in our Sustainability Report and in the Disclosures of (see more on page GRI 305 Emissions).

Bracell’s Greenhouse Gas Inventories cover Scopes 1, 2 and 3 and are prepared in accordance with guidance provided in the latest edition of ISO 14064, the GHG Protocol, and the quantification methodologies published by the Intergovernmental Panel on Climate Change (IPCC). Since 2022, Bracell has published its GHG Inventory data in the Public Emissions Registry.

As a member of the Brazilian GHG Protocol Program (PBGHG), Bracell publishes GHG Inventory data in the Public Emissions Registry, having been awarded the Program’s Gold badge in 2024.

The PBGHG recognizes participating organizations for voluntary accountability to stakeholders who are increasingly concerned with corporate social and environmental responsibility. The Gold badge is 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).

Carbon balance

Bracell’s planted eucalyptus forests and native forest areas play a crucial role in capturing CO2 from the atmosphere, absorbing and storing carbon throughout the trees’ growth cycle. This natural process helps partially offset our greenhouse gas (GHG) emissions.

In 2024, our carbon balance showed that our removals exceeded our emissions—an improvement on previous years. Our closing carbon balance was -175,471.36 tCO₂e. See details in the table below.

We removed -4,119,009.65 tCO₂e from the atmosphere in 2024, and our net carbon balance was -175,471.36 tCO₂e

Monitoring Carbon and Water Flux in Eucalyptus Plantations

We are a member of the Eucflux-IPEF Cooperative Program, which studies carbon and water flux in eucalyptus plantations in Brazil. This research is enhancing our understanding of these processes in a Bracell-managed eucalyptus plantation in Itatinga, São Paulo, where we have set up a flux tower equipped with advanced monitoring technology.

Eucflux is led by the Institute for Forest Research and Studies (IPEF) and the French Agricultural Research Centre for International Development (CIRAD), with participation from academic institutions such as the Federal University of Lavras (UFLA), São Paulo State University (UNESP), and the University of São Paulo (ESALQ/USP).

Our Monitoring Investments

Bracell monitors water and carbon flux in five areas of eucalyptus and native forests.

As part of our commitments within the Bracell 2030 roadmap, we have invested in building five flux towers to monitor water and carbon flux in our operations. In 2024, we installed two towers—one in a native forest area in São Paulo and another in a eucalyptus area in Bahia. Two more towers will be installed in Mato Grosso do Sul—one in each type of forested area—and another tower in a native forest in Bahia. The data is managed and analyzed by our Forestry Research and Development team.

Forestry R&D, risk management and climate change impacts

We invest in classical genetic improvement, silviculture, forest management, extension services, and technology transfer to ensure a sustainable supply of high-quality pulpwood over the medium and long term—and ultimately business continuity and product excellence.

The Forest R&D team’s key research endpoints are to improve the MAI (Mean Annual Increment of Wood) and MACI (Mean Annual Increment of Pulp) sustainably. Each year, a research pipeline is created with this goal in mind, taking into account the specific conditions and characteristics of each region where we operate.

Classical Genetic Improvement

Bracell does not use genetically modified organisms (GMOs) and develops its eucalyptus clones through classical genetic improvement. This process involves the generation, evaluation and selection of clones improved in successive cycles. The focus of genetic improvement is also on developing techniques aimed at improving cloning efficiency, guaranteeing high-quality pulpwood that is more sustainable in the long term.  

In 2024, our Forestry R&D team recommended the commercial planting of two clonal blends—one in São Paulo and one in Bahia. These are unique cultivars formed by a blend of clones, which reduces vulnerability and offers greater protection against pests, diseases, and adverse weather events. The clonal blends were tested in our nurseries, and are now ready to be planted commercially starting in 2025.

In addition to the two clonal blends, two new classical clones were also recommended—one for operations in São Paulo and another for Bahia. 

Silviculture and Forest Management

At Bracell, we seek to continually improve our monitoring and climate-zoning processes, and use best-practice soil conservation, preparation and fertilization practices. Sustainable control of pests, diseases and weeds is also a priority, ensuring healthy, productive forests in the long term.

Biological control using natural enemies

In 2024, we produced 6 million natural enemies in São Paulo and 89 million in Bahia, totaling 95 million for the year—an increase of 46% compared to 65 million in 2023. Biological control replaces the use of chemicals, preventing emissions of N2O greenhouse gases.

Forestry extension and technology transfer 

We provide specialized technical assistance and promote technology transfer in our forestry operations, advancing best practices and continuous process improvement.

Climate zoning studies

We continuously conduct climate zoning studies using historical climate data such as precipitation, temperature, and latitude. This analysis helps us identify optimal areas for eucalyptus planting and make region-specific technical recommendations, including clone allocation and fertilization strategies.

In 2024, we introduced a new zoning parameter in Bahia: altitude. As a result of these studies, region-specific planting methods and cultivar recommendations will be provided.

Energy Efficiency

Our facilities in Lençóis Paulista (SP) are energy self-sufficient. At our mills, recovery boilers produce steam that is fed to turbine-generator sets to generate electricity. We only source electricity from the national grid during equipment maintenance shutdowns. In these cases, we source electricity from the national grid, which derives approximately 85% of its electricity from renewable sources—mainly hydro, wind, and solar.

We also purchase electricity for forestry operations and nurseries, where diesel is additionally used in power generators.

At our storage yards in Lençóis Paulista (SP), we use electric forklifts to reduce fossil fuel consumption in these operations. In 2024, we continued testing electric trucks to transport pulp from our mill in Lençóis Paulista (SP) to the road-rail terminal in Pederneiras (SP).

Renewable Energy

The new flexible lines at our Lençóis Paulista (SP) mill are equipped with a recovery boiler that generates renewable energy from eucalyptus biomass, composed of trimmings from the plant and other substances originating from the production of dissolving pulp, including black liquor—a byproduct of pulp production.

These lines have been developed to be fossil fuel-free, with on-site capacity to generate clean and renewable electricity for operations and a surplus that is fed into the national grid.

The Lençóis Paulista (SP) site has a 440 kV substation with an installed capacity of 409 MW, enough to supply the full electricity requirement of the mill and a surplus of approximately 150 to 180 MW that is sold to the national grid, enough to supply clean renewable electricity to around 750,000 homes or approximately 3 million people.

Our Bahia plant is also equipped with a recovery boiler that generates renewable electricity from eucalyptus biomass.

In 2024, we generated 192,803,255.26 GJ of renewable energy. We sold 2,718,409.21 GJ of eucalyptus biomass-generated electricity to the Brazilian free energy market (see more in GRI 302).

Bracell holds International Renewable Energy Certificates (I-RECs) as proof that the electricity we use in our operations and sell is renewably sourced.

Sustainability Attributes at Bracell Papéis

Bracell Papéis’ plants feature technologies that enable the use of renewable energy in our operations and help prevent greenhouse gas emissions during pulp transportation to the tissue plant at our Lençóis Paulista (SP) site. 

Solar Power

The Bracell Papéis facility in Lençóis Paulista (SP) has a 50,000 m² solar panel array covering the entire roof of the industrial plant, generating 7.21 MW of renewable, fossil fuel–free energy. This generation capacity meets 20% of the site’s total electricity requirement. 

Automated Vertical Warehouse and Energy Efficiency 

The products manufactured at the site are stored in an automated vertical warehouse that uses robot-operated elevators to optimize goods handling. This system ensures greater energy efficiency in the process. Automation reduces the need for lighting and air-conditioning, resulting in energy savings in warehousing operations.

The system also enables better logistics control, allowing for optimized storage and fast product handling, which reduces waste and increases productivity.

It also improves safety and efficiency. Automation minimizes human intervention, making the process safer, more precise and more sustainable.

Biomass boiler

At the Bracell Papéis plant in Feira de Santana (BA), we commissioned a new biomass boiler, which came online in December. The new unit, which is safer and more efficient, was installed as part of our Inovar program—representing the largest investment in the facility’s history.

Pulp Transportation for Tissue Production

The Bracell Papéis mill in Lençóis Paulista (SP) is located on the same site as Bracell’s flexible lines, where the kraft pulp used in Tissue manufacture is produced. This logistics integration allows the pulp to be transported via pipeline, eliminating the need for drying and road transport, thereby saving GHG emissions and optimizing processes.

Electric Trucks

Since 2023, Bracell has been testing electric trucks for pulp transport, as part of our commitment to sustainable practices across the entire operation. Although still in a trial phase, the initiative supports GHG emissions reductions in our logistics and uses renewable electricity generated in our own production process.

In 2024, the electric trucks transported 33.2 thousand metric tons of product, covering a total of 91,500 kilometers.

O post GRI 3-3 Management of the material topics: Climate Change apareceu primeiro em Bracell - Central de Indicadores.

To this end, our operations follow procedures and control mechanisms that are part of our management system, with a focus on mitigating the risks and impacts of our forestry, mill, and logistics operations. We also carry out long-term structured projects through Bracell Social, with clear goals and targets focused on promoting entrepreneurship, education, and well-being in local communities—as part of our Bracell 2030 commitments.

Our approach to stakeholder engagement includes informing communities and neighbors near our forestry and mill operations about the actual and potential impacts of our operations. Initiatives are structured around open communication with stakeholders and the following goals:

• Inform neighboring communities about upcoming forestry operations in their vicinity, including potential risks and both positive and negative impacts from these operations
• Strengthen our relations with communities and neighbors
• Enhance communication with our communities and neighbors
• Contribute to strengthen initiatives and increase responsiveness to requests from local communities
• Identify, prevent and minimize potential impacts caused by operations on these communities and neighbors
• Mitigate the risk of potential community issues that could affect our operations
• Address inquiries and concerns regarding operational aspects and the company as a whole.

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.

The objectives of the standard is to establish continuous two-way communication, provide up-to-date and transparent information, identify and evaluate social aspects, establish measures to control and mitigate potential negative impacts, and identify positive impacts.

In managing this material topic, identified potential positive impacts include increased job creation and opportunities for partnerships; improved quality of life and/or living conditions in the areas where we operate, due to increased private social investment—through initiatives across education, inclusion, entrepreneurship, and community development; and improved local infrastructure as a result of company-driven investments and collaborations.

In terms of negative impacts, our management approach includes addressing the risk of conflicts with neighboring communities over impacts from operations. This risk is managed through our impact mitigation practices and close engagement with local communities.

Promoting Women’s Entrepreneurship, Education, and Income Generation

As part of the social targets in our Bracell 2030 roadmap, we have committed to promoting women’s entrepreneurship, expanding income opportunities and strengthening public education in the regions where we operate.

Our goal is for at least 60% of “impact business” projects to be led by women—reinforcing our commitment to gender equity and female leadership (see more about Bracell Social, our social investment platform, on page GRI 203-1 Infrastructure investments and services supported).

We also aim to raise the income of families involved in income-generation initiatives in priority areas by 20% by 2030.

In education, Bracell is helping to improve learning outcomes in communities with historically low academic performance. We have set a target to increase Portuguese and math proficiency by 30% in the public schools participating in our programs.

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

As part of efforts to advance our Bracell 2030 social targets, we launched the following local community initiatives in 2024:

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. Assessment of Continuing Education Program in Bahia – 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 in Mato Grosso do Sul – We conducted a study to analyze the potential, challenges, and opportunities for strengthening sustainable territorial development in municipalities located within the area of influence of our operations in the state of Mato Grosso do Sul.
4. Framework for Tracking Bracell 2030 Social Targets – 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.

O post GRI 3-3 Management of material topics: Community engagement and local development apareceu primeiro em Bracell - Central de Indicadores.

Risk management process

Our Corporate Risk Management and Business Continuity Policy provides guidelines on identifying, assessing, addressing, and monitoring corporate risks through a structured Enterprise Risk Management (ERM) process. This process follows international standards such as ISO 31000, BSI 31100, and COSO ERM, covering operational, social, environmental, governance, technological, strategic, political, and financial risks.

Climate-related risks with financial impacts are categorized and classified in accordance with Bracell’s Risk Classification Matrix. A clear implementation schedule has been established for deploying ERM across departments by 2025, supported by strategic indicators to ensure identified risks are reduced to acceptable levels.

In 2025, we will complete (100%) ERM implementation across all 18 departments listed in the plan, including manufacturing, forestry, logistics, and corporate. We plan to implement all proposed actions to reduce identified risks, with a goal to bring at least seven of the major risks to acceptable criticality levels by year-end.

Methods Used to Manage Climate Change Risks or Opportunities

In our operations, we adopt management practices and invest in technologies aimed at preventing and mitigating climate change impacts, such as carbon capture and storage, fossil fuel replacement, the use of renewable and low-carbon energy, energy efficiency improvements, renewable energy certificates, among other methods (see more in GRI 3-3 Management of the material topic: Climate Change).

O post GRI 201-2 Financial implications and other risks and opportunities due to climate change apareceu primeiro em Bracell - Central de Indicadores.

Bracell Papéis currently has two senior management executives, both of whom are internal hires from Bracell Papéis Sudeste. Their leadership responsibilities include oversight of our Northeast paper operations. No local hires were made for senior-level positions within Bracell Papéis during the reporting period (for more details, see GRI 405-1).

O post GRI 202-2 Proportion of senior management hired from the local community apareceu primeiro em Bracell - Central de Indicadores.

Bracell Social is built around three main pillars:

• Education: Bracell believes in education as the cornerstone for societal development. Through projects and initiatives that engage both children and adults in our areas of operation, our efforts have helped improve educational practices in public schools. These programs also foster environmental civics, develop leadership skills, and support the professional development of adolescents and young adults. This further underscores our belief in the transformational role of education.
• Empowerment: Bracell works to strengthen production collectives and social enterprises through training initiatives focused on leadership, empowerment, and creating employment and income opportunities. We work to develop and strengthen productive activities, invest in training and technical assistance, develop community leaders, promote cooperativism, and facilitate social participation mechanisms including public calls for projects and public-private partnerships.
• Well-being: we provide community residents with free leisure, culture, health promotion, and civics activities that foster well-being and civic engagement in the communities around our facilities.

Bracell Social Center

On November 13, 2024, we opened the Bracell Social Center—a dedicated space for hosting community initiatives and welcoming Bracell stakeholders. The Bracell Social Center is located in Lençóis Paulista (SP).

The space will host a range of community training and empowerment initiatives. Starting in 2025, in addition to ongoing social programs, the Bracell Social Center will host our Mãos Dadas volunteer program and a full calendar of workshops, training, and discussions on topics such as Bracell’s social impact pillars and the United Nations 2030 Agenda.

Stand-out projects in 2024

Leitura Viva

Leitura Viva is a project sponsored by Bracell, carried out by A Taba, and supported by the municipal governments of Lençóis Paulista (SP) and Macatuba (SP). The goal of the project is to support training and awareness raising among elementary school teachers (grades 1–5) and Portuguese language teachers from middle school in public schools, encouraging reading practices.

The project comprises a series of initiatives such as content curation, delivery of textbooks and supporting materials for teachers and students, and online activities for the continuous development of participating educators. The project achieved significant results: 9,064 kits were distributed, benefiting 8,753 students and 311 teachers. The program also included a kickoff lecture and training workshops, as well as reading circles and training sessions. In total, the training activities provided 16 hours of certified instruction for educators, delivering positive impact on the school community.

Mãos Dadas program

Our Mãos Dadas volunteering program aims to engage employees and their families in activities that benefit the community, encouraging them to donate their time and skills to social causes—fostering civics, self-esteem, a sense of belonging, and the development of new skills and competencies.

In 2024, 17 social organizations were benefited, impacting more than 6,700 people. The program also collected and distributed over 3 metric tons of food and involved more than 3,000 volunteers, illustrating the power of social engagement.

Dona Della

Our Dona Della program helps women become financially independent by supporting the growth and development of women-led businesses and helping them gain a foothold in the market.

In 2024, the project delivered 48 hours of online and in-person training and mentoring sessions for 20 female business owners. It included a Pitch Day and granted seed capital of R$ 10,000 to each of the 10 selected businesses. The project was implemented in collaboration with Rede Mulher Empreendedora.

Also in 2024, the project received support from SEBRAE, which helped organize a visit to a Small Business Fair in São Paulo and offered two workshops on pitching at business rounds hosted by Bracell. At these events, participating businesses generated over R$ 3,000 in sales and projected short-term deals exceeding R$ 20,000.

Bracell Social Collective Fair

To boost supported business, we hosted the Bracell Social Collective Fair. This initiative invites employees to learn about these businesses, engage with community members, and purchase their products, generating income for supported groups.

In 2024, businesses participating in the Dona Della program exhibited at the fair and reported total sales of over R$ 7,000, further strengthening their market presence.

Social Impact Business Development

The Impact Business Development Program (FNI) provides technical and operational support to productive associations and/or groups in the Northern Coast and Agreste regions of Bahia, helping to build the institutional and entrepreneurial capabilities of organizations and their leaders. The FNI supports initiatives aimed at improving processes, products, market access, and public policies geared toward business growth.

In total, the program reaches 6,976 people directly and indirectly. FNI is active in the municipalities of Alagoinhas, Araçás, Aramari, Catu, Entre Rios, Esplanada, Inhambupe, and Olindina, all in the state of Bahia. In 2024, FNI initiatives generated R$ 492,481.30 in income for participants, along with more than R$ 800,000 in funding secured by four associations through calls for proposals from Companhia de Ação e Desenvolvimento Regional (CAR) and Fundação Banco do Brasil.

O post GRI 203-1 Infrastructure investments and services supported apareceu primeiro em Bracell - Central de Indicadores.

Through Bracell Social, we develop enabling projects in the areas of education, entrepreneurship, and civic engagement:

Education: we help to improve educational practices in public schools. These programs foster environmental civics, develop leadership skills, and support the professional development of adolescents and young adults, underscoring our belief in the transformational role of education.

Empowerment: Bracell works to strengthen production collectives and social enterprises by creating learning environments focused on creating employment and income opportunities. We invest in training and technical assistance, develop community leaders, promote cooperativism, and facilitate social participation mechanisms including public calls for projects and public-private partnerships.

Estar Bem: we provide free access to leisure, cultural activities, health services, and civics initiatives for local residents.

Discover more about our Bracell 2030 goals for women’s entrepreneurship, income generation, and education on page GRI 3-3: Management of material topics: Community engagement and local development.

Below are some of the outcomes from Bracell Social’s key projects in São Paulo in 2024.

Bracell Social Center

On November 13, 2024, we opened the Bracell Social Center—a dedicated space for hosting community initiatives and welcoming Bracell stakeholders. The Bracell Social Center is located in Lençóis Paulista (SP).

The space will host a range of community training and empowerment initiatives. Starting in 2025, in addition to ongoing social programs, the Bracell Social Center will host our Mãos Dadas volunteer program and a full calendar of workshops, training, and discussions on topics such as Bracell’s social impact pillars and the United Nations 2030 Agenda.

O post GRI 203-2 Significant indirect economic impacts apareceu primeiro em Bracell - Central de Indicadores.

We sourced 91% of our supplier spend locally in São Paulo—for both Bracell and Bracell Papéis operations—and 61% in Bahia, for Bracell operations. At Bracell Papéis Nordeste, 53.15% of supplier spend with local—for operations in Feira de Santana (BA), São Gonçalo dos Campos (BA), and Pombos (PE).

Local suppliers are defined as those based in the states where our operational sites are located. The percentage of spending on local suppliers is calculated across all sites. For confidentiality reasons, Bracell does not report financial data.

O post GRI 204-1 Proportion of spending on locally-based suppliers apareceu primeiro em Bracell - Central de Indicadores.

Reducing energy intensity, improving energy efficiency, and investing in a low-carbon energy mix are some of the initiatives Bracell pursues to reduce greenhouse gas emissions (see more under GRI 305 Emissions).

Our mills are energy self-sufficient. We only use electricity from the national grid during maintenance shutdowns. In these cases, we source electricity from the national grid, which derives approximately 85% of its electricity from renewable sources—mainly hydro, wind, and solar. In addition, we sell our surplus electricity output to the free market with I-REC certification, contributing to Brazil’s high share of clean energy.

At the pulp yard in our Lençóis Paulista (SP) mill, we use electric forklifts to reduce fossil fuel consumption in these operations. In 2024, we continued testing electric trucks to transport pulp from our mill in Lençóis Paulista (SP) to the road-rail terminal in Pederneiras (SP).

Energy management in our operations:

• biomass boiler at our Lençóis Paulista (SP) pulp mill generates renewable energy using eucalyptus biomass—composed of plant residues and byproducts from the dissolving pulp production process, including black liquor.
• All production lines at the site were designed to run entirely on fossil-free energy, producing clean energy on-site not only for internal use but also a surplus sold to Brazil’s energy grid.
• The Lençóis Paulista (SP) site has a 440 kV substation with an installed capacity of 409 MW, sufficient to power the mill and inject a clean energy surplus of 150 to 180 MW into the national grid—enough to supply 405,000 homes or around 1.6 million people.
• Our Lençóis Paulista Tissue paper mill, commissioned in 2024, features a 50,000 m² solar panel array that generates 7.21 MW of clean, fossil-free, renewable electricity—supplying around 20% of the plant’s total electricity requirement. This R$ 21 million investment is one of the largest recent initiatives in renewable energy within the sector. The solar array, consisting of 10,836 solar panels, was built over four months and involved 59 professionals in a highly coordinated operation, including lifting, distributing, and installing the equipment, and building a control center for real-time energy monitoring and management. The completion of this project marks an important milestone in our commitment to sustainable and efficient solutions.
• At the Bracell Papéis plant in Feira de Santana (BA), we commissioned a new biomass boiler, which came online in December. The new unit, which is safer and more efficient with its automated feed system, was installed as part of Inovar—the largest investment program in the facility’s history.

Note: Electricity consumption is calculated as total purchased and generated electricity, less any electricity sold to third parties.

Note: in 2024, Bracell adopted a new methodology for calculating energy generation and consumption across all operations. Unlike in 2022 and 2023, when only electricity consumption was taken into account, the new approach implemented in 2024 is broader in scope. This updated method includes all types of energy used in production processes—such as electricity, steam, fuels (both renewable and non-renewable), and other sources related to heating and steam generation.

Note: electricity from the national grid is used during general plant shutdowns and corrective maintenance within the production process. 

1. Bracell Papéis Sudeste uses electricity generated as part of the pulp production process. As a result, this site does not purchase energy from external sources.

Note: the reduction in electricity sales from the Lençóis Paulista (SP) site is due to a reduction in electricity exports caused by an increase in on-site electricity consumption. 

Total energy consumed within the organization, by type of energy (GJ)

O post GRI 302-1 Energy consumption within the organization apareceu primeiro em Bracell - Central de Indicadores.

Until 2023, we considered energy consumption outside the organization as referring to purchase electricity used in our own operations. Energy consumption at sites outside the operational boundary and not under Bracell’s direct control is not tracked withing our sustainability data management systems. We report energy use outside the organization through our greenhouse gas emissions inventory, under Scope 3 emissions, which cover pulp production and sales operations.

In 2024, Bracell Papéis began integrating its operations into the management processes and procedures of Bracell and the wider RGE Group. As a result, these operations were not included in the data collection scope of the emissions inventory and some operational data is unavailable due to priorities set for 2024. Unavailable data will be published starting with the 2025 performance report.

For the 2025 reporting cycle, Bracell will report data on energy consumption outside the organization and include paper production and sales operations in our GHG emissions inventory.

1. Energy intensity data is calculated based on the volume of electricity consumed per metric ton of product produced: kraft pulp and dissolving pulp. For confidentiality reasons, Bracell does not report production data. In 2024, Bracell Papéis began integrating its operations into the management processes and procedures used at Bracell and the wider RGE Group. As a result, operational data is unavailable for this report due to the processes prioritized in 2024. Unavailable data will be published starting with the 2025 performance report.

O post GRI 302-3 Energy intensity apareceu primeiro em Bracell - Central de Indicadores.

Starting in 2024, Bracell adopted a new energy accounting methodology that includes all energy types used in production processes—such as electricity, steam, renewable and non-renewable fuels, and other. In previous years (2022 and 2023), only electricity consumption was reported. As a result, energy consumption values from 2023 and 2024 are not directly comparable due to the change in measurement criteria.

This updated analysis enables a more accurate and comprehensive analysis of Bracell’s energy performance. Learn more under GRI 302-1 Energy consumption within the organization.

O post GRI 302-4 Reduction in energy consumption apareceu primeiro em Bracell - Central de Indicadores.

Inventories are conducted at the corporate level, covering our pulp mills in São Paulo and Bahia, as well as forestry operations in those two states and Mato Grosso do Sul.

In 2024, Bracell’s Scope 1 fossil emissions accounted for 43% of the total, amounting to 731,362.80 tCO_₂e—a 22.4% increase compared to the previous year. This increase was primarily driven by higher fossil fuel use in our logistics operations, especially due to longer transport distances between plantation areas and the mill, along with a significant rise in forest fire incidents.

The gases included in the Scope 1 emissions calculation are: CO₂, CH₄, N₂O, HFCs and _SF6.

Bracell reports biogenic CO_₂e emissions associated with forestry and mill operations. These include biomass combustion, the use of renewable biofuels in the logistics fleet, fire events, and the natural dynamics of eucalyptus forest management cycles. Unlike fossil-based emissions, biogenic emissions are generally considered carbon neutral over the long term, since they come from renewable biomass that absorbs CO_₂ from the atmosphere during its growth.

Carbon balance

In 2024, Bracell generated 1,716,315.84 tCO_₂e in anthropogenic emissions from fossil fuel combustion (across Scopes 1, 2, and 3) and 2,227,222.45 tCO_₂e in biogenic LULUCF emissions, and removed 4,119,009.65 tCO_₂e through its planted and native forests. As a result, the net emissions balance was -175,471.36 tCO_₂e, indicating a positive impact on climate.

In 2024 we achieved significant reductions in stationary combustion, including as a decrease in natural gas consumption and increased use of biomass in our gasifiers.

O post GRI 305-1 Direct (Scope 1) GHG emissions apareceu primeiro em Bracell - Central de Indicadores.

Inventories are conducted at the corporate level, covering our pulp mills in São Paulo and Bahia, as well as forestry operations in those two states and Mato Grosso do Sul.

In 2024, Scope 2 accounted for 1% of our total emissions. There was a 37.5% increase in electricity purchased from the national grid. This increase is due to factors such as the expansion of the MS Florestal offices, higher energy use at our port terminal, and operational variations such as turbine shutdowns at the São Paulo and Bahia sites. In our Bahia operation, the strategic decision to prioritize imported electricity over natural gas, combined with periods of lower efficiency in the evaporation area that limited liquor use for power generation, contributed to this increase.

In 2024, Bracell generated 1,716,315.84 tCO₂e in anthropogenic emissions from fossil fuel combustion (across Scopes 1, 2, and 3) and 2,227,222.45 tCO₂e in biogenic LULUCF emissions, and removed -4,119,009.65 tCO₂e through our planted and native forests. As a result, the net emissions balance was -175,471.36 tCO₂e, indicating a positive impact on climate.

O post GRI 305-2 Energy indirect (Scope 2) GHG emissions apareceu primeiro em Bracell - Central de Indicadores.

Inventories are conducted at the corporate level, covering our mills in São Paulo and Bahia, as well as forestry operations in those two states and Mato Grosso do Sul.

In 2024, Scope 3 accounted for 57% of our total emissions. There was an 11.2% reduction in emissions, mainly due to shorter average distances traveled per shipment in export operations.

During the reporting period, Bracell offset 10,936.50 tCO₂e in emissions generated by ocean freight to Europe through the purchase of emission allowances required under the EU ETS (European Union Emissions Trading System)—the European Union’s carbon pricing mechanism aimed at reducing GHG emissions by limiting and trading emission allowances, or European Union Allowances (EUAs). In 2024, maritime transport was added to the scope of the system. As a result, vessels accessing European ports are required to acquire allowances proportional to the CO₂ emissions generated throughout their routes, starting from their departure in Brazil.

Participation in the EU ETS marks a significant step forward in Bracell’s climate management practices across our logistics chain. In addition to ensuring compliance with European environmental regulations, this initiative will support carbon pricing compliance in other international logistics operations. Indirectly, the funds generated through the purchase of emission allowances are allocated by the European Union to initiatives in innovation, clean energy, and climate adaptation, supporting the region’s energy transition.

Carbon balance

In 2024, Bracell generated 1,716,315.84 tCO₂e in anthropogenic emissions from fossil fuel combustion (across Scopes 1, 2, and 3) and 2,227,222.45 tCO₂e in biogenic LULUCF emissions, and removed -4,119,009.65 tCO₂e through its planted and native forests. As a result, the net emissions balance was -175,471.36 tCO₂e, indicating a positive impact on climate.

O post GRI 305-3 Other indirect (Scope 3) GHG emissions apareceu primeiro em Bracell - Central de Indicadores.

Inventories are conducted at the corporate level, covering our pulp mills in São Paulo and Bahia, as well as forestry operations in those two states and Mato Grosso do Sul.

In 2024, our Scope 1 and 2 GHG emissions intensity increased by approximately 19% compared to 2023. The increase was primarily driven by greater use of fossil fuels in our logistics operations and a significant rise in forest fires. It was also influenced by increased electricity purchases from the national grid to accommodate the expansion of our operations.

Note: Bracell’s emissions intensity metric covers scopes 1 and 2 emissions from our São Paulo, Bahia and Mato Grosso do Sul operations, as it refers to emissions from the pulp production process.

O post GRI 305-4 GHG emissions intensity apareceu primeiro em Bracell - Central de Indicadores.

O post GRI 305-5 Reduction of GHG emissions apareceu primeiro em Bracell - Central de Indicadores.

These substances, upon reaching the stratosphere, degrade ozone, which acts as a shield against the sun’s ultraviolet (UV) radiation. Controlling these emissions is crucial to preserving life on Earth and mitigating global environmental imbalances.

O post GRI 305-6 Emissions of ozone-depleting substances (ODS) apareceu primeiro em Bracell - Central de Indicadores.

1. The data include disclosures as part of the EU Ecolabel and Nordic Swan schemes for kraft pulp. 
2. Volatile Organic Compounds (VOCs) are not measured in air emissions reporting.

These substances impact the environment and human health by contributing to acid rain—which damages ecosystems and infrastructure—and causing respiratory issues. This underscores the need to control and reduce their emissions to mitigate their effects.

In the state of São Paulo, Bracell’s air emissions were calculated using emission factors provided by the state environmental regulator, CETESB. The methodology followed Board Decision No. 10/2010/P dated January 12, 2010. Emission calculations were performed through direct measurement, using continuous analyzers installed on the production line. All reported values are expressed in metric tons per year.

In Bahia, the methodology followed the guidelines of Ordinance No. 18.841 (dated August 3, 2019) on maintaining air emissions monitoring plans to ensure compliance with daily average limits for TRS, PM, SOx, and NOx. The provisions of CONAMA Resolution No. 382 (dated December 26, 2006) were also followed.

As in São Paulo, emissions in Bahia were calculated through direct measurement, using continuous analyzers installed on the production line. The goal is to ensure full compliance with Ordinance No. 18.841 and other regulatory standards through proper emissions monitoring, and to achieve zero deviations from the regulated parameters.

O post GRI 305-7 Nitrogen oxides (NOx), sulfur oxides (SOx), and other significant air emissions apareceu primeiro em Bracell - Central de Indicadores.

In 2024, Bracell did not develop any formal consultation protocols for indigenous peoples. Seven meetings were held during the year between Bracell representatives, FUNAI, and indigenous leaders. These meetings presented our operational activities around the Araribá Indigenous Territory, the activity schedule, operational details, our complaint channel, and measures to prevent and mitigate potential impacts. The meetings also included sessions to gather feedback from indigenous communities to improve Bracell’s mitigation strategies.

Topics also included hiring a consultancy to conduct a study in the indigenous territory, as suggested by FUNAI, Bracell’s forest management practices, conservation of springs within the Indigenous area, and donation requests. All meetings were documented via attendance lists, photographs, and minutes, with consent for data collection from participants—a total of 33 individuals and 79 total participations: 10 in March, 8 in May, 28 in June, 21 in August, and 12 in September.

In the Tekoa Nhanderu Porã village, Bracell held a meeting with the community leadership to present a nearby forest management area and explain our forestry management processes in the region. We also gathered feedback from indigenous leaders on perceived social impacts of operations on the village. In addition, we created a community database with summary social and environmental information.

This engagement is conducted before the start of operations. During these meetings, we provide relevant information about the company’s activities, providing an opportunity for indigenous representatives to express their concerns, which are then reviewed and addressed by Bracell.

The stakeholder engagement process is inclusive of the entire community, including women and elders, and allows sufficient time for the community to be informed about issues and for Bracell to address the needs, aspirations and concerns shared by indigenous peoples during interactions with the company.

Meetings with indigenous communities are documented in minutes that record the agreements reached with community leaders. All villages are consulted through their leaders, and 100% have chiefs or vice-chiefs as representatives.

In 2024, the meetings with villages were scheduled by the Brazilian indigenous authority, FUNAI, which attempted to schedule meetings during hours that accommodated indigenous communities’ routine activities, and informed them in advance of the start and end times of meetings, as well as the topics to be discussed. Bracell did not invite city residents to participate in these meetings.

During the year, we identified and mapped actual and potential impacts from our operations on indigenous communities, and no cases of indigenous rights violations were identified. Bracell also engaged a qualified and specialized consulting firm to conduct a study in the Araribá Indigenous Territory and to develop an action plan with recommendations to safeguard the human rights, customary rights, and safety of indigenous peoples, particularly in relation to their access to fisheries adjacent to Bracell’s forestry operations. To carry out this study, Bracell obtained formal permission from indigenous leadership to conduct fieldwork, as agreed during community engagement.

O post GRI 411-1 Incidents of violations involving rights of indigenous peoples apareceu primeiro em Bracell - Central de Indicadores.

The results of our environmental and social impact assessments are shared with our stakeholders, as part of our commitment to transparency and corporate responsibility.

Local development plans are built around the needs and priorities expressed by local communities, ensuring that initiatives reflect their interests.

Likewise, external stakeholder engagement plans are based on stakeholder mapping to ensure effective communication and alignment with stakeholder expectations.

To encourage active community participation in managing the impacts of our forestry operations, we have established committees and broad consultation processes involving members of local communities, including vulnerable groups. For communities located in the areas of influence of our forestry and mill operations, our Community Relations department engages regularly with local residents, keeping them informed about impacts and the mitigation measures in place.

We have formal procedures in place for documenting and addressing community concerns and complaints. Through ongoing engagement, the Community Relations team broadly disseminates information about our Contact Us hotline (0800 709 1490 in São Paulo, 0800 284 4747 in Bahia and Sergipe) to residents living near our forestry operations. Additional initiatives include awareness campaigns on forest fire prevention and the display of our contact channel on company vehicles operating in the field to receive feedback and complaints specifically related to our fleet operations.

O post GRI 413-1 Operations with local community engagement, impact assessments, and development programs apareceu primeiro em Bracell - Central de Indicadores.

In the Midwest, Southeast, and South, operational impacts identified included noise pollution around our industrial sites and, in forestry operations, excessive dust, road damage or blockages, speeding, chemical drift, and property damage—all of which were mitigated. In the Northeast, the main issues involved damage to neighboring properties in areas where we operate in Bahia.

Our preventive efforts helped reduce the number of incidents of operational impacts, which dropped from 71 in 2023 to 60 in 2024.

However, the number of complaints filed in São Paulo increased from 117 in 2023 to 363 in 2024. This increase was due to the expansion of forestry operations, which led to more complaints related to third-party property damage, dust from truck traffic, road maintenance issues, service road damage, and speeding. Complaints related to fence maintenance decreased. The rise in reported cases was also influenced by our efforts to advertise reporting channels and by the stronger relationships we have built with local communities.

O post GRI 413-2 Operations with significant actual and potential negative impacts on local communities apareceu primeiro em Bracell - Central de Indicadores.

Inventories are conducted at the corporate level, covering our pulp mills in São Paulo and Bahia, as well as forestry operations in those two states and Mato Grosso do Sul.

In 2024, Bracell’s Scope 1 fossil emissions accounted for 43% of total emissions and amounted to 731,362.80 tCO₂e, a 21.9% increase compared to the previous year. This increase was primarily driven by higher fossil fuel use in our logistics operations, especially due to longer transport distances between plantation areas and the mill, along with a significant rise in forest fire incidents.

The gases included in the Scope 1 emissions calculation are: CO₂, CH₄, N₂O, HFCs and SF₆.

Bracell reports biogenic CO_₂ emissions associated with forestry and mill operations. These emissions include biomass combustion, the use of renewable biofuels in the logistics fleet, fire events, and the natural dynamics of eucalyptus forest management cycles. Unlike fossil-based emissions, biogenic emissions are generally considered carbon neutral over the long term, since they come from renewable biomass that absorbs CO₂ from the atmosphere during its growth.

Note: The Scope 1 biogenic emissions above include stationary combustion (biomass), mobile combustion, agricultural activities, and land-use change.

O post RR-PP-110a.1 Total gross Scope 1 emissions apareceu primeiro em Bracell - Central de Indicadores.

Inventories are conducted at the corporate level, covering our pulp mills in São Paulo and Bahia, as well as forestry operations in those two states and Mato Grosso do Sul.

The material topic of climate change is addressed through policies, action plans, targets, and ongoing monitoring of the outcomes of our climate initiatives. We are working to advance a low-carbon economy that is adapted to a scenario of higher average global temperatures.

The Bracell 2030 agenda establishes commitments to reduce greenhouse gas emissions as part of the strategic lever “Climate Action.”

The table below presents our 2024 performance:

Note: Bracell’s carbon intensity target (tCO_₂e/adt of production) covers both kraft pulp and dissolving pulp production. The 2020 baseline was calculated by directly summing the physical volumes of both products, without applying a conversion factor.

Starting in 2022, with the launch of dissolving pulp production at our São Paulo site, a conversion factor was applied to express dissolving production in kraft equivalent. This adjustment better reflects actual emissions intensity in our mills, as it accounts for differences in product types and their respective energy use and emissions.

As part of the Bracell 2030 roadmap, we have set two commitments tied to the material topic Climate Change. Our climate goals were developed based on an analysis of the risks and impacts – both positive and negative – Bracell’s operations have on climate change. Our operations emit greenhouse gases (GHG) and also capture CO₂ from the atmosphere by growing and preserving forest areas managed by Bracell, including planted eucalyptus forests and native forests.

By 2030, we have committed to reducing our carbon emissions per metric ton of product by 75% from a 2020 baseline. This means reaching 0.122 tCO_₂e/adt. In addition, we will remove 25 MtCO₂e from the atmosphere over the course of a decade—from 2020 to 2030.

For 2024, our interim targets were to close the year with 0.151 tCO₂e/adt and 22.19 MtCO₂e in removals. Measured results are detailed below:

Target 1: reduce carbon emissions per metric ton of product by 75%, targeting 0.122 tCO₂e/adt

From 2020 to 2024, we reduced carbon emissions per metric ton of product by 61%, reaching 0.208 tCO₂e/adt.

Although we achieved a 63% reduction in our emissions intensity over that period, a number of factors prevented us from meeting our 2024 target. The main negative impacts on emissions reduction came from increased mobile combustion in our operations and a higher occurrence of wildfires. On the positive side, we achieved significant operational gains this year, such as reducing natural gas consumption and expanding the use of biomass in our gasifiers. These initiatives helped reduce emissions from stationary combustion—our largest Scope 1 emissions category—and put us on track to meet our long-term targets.

We are also implementing several initiatives to mitigate climate-change impacts and keep moving forward on decarbonizing our operations. Examples include investments in electric trucks for pulp transport, currently in the trial phase, and in generating and sourcing renewable energy, as detailed in the Energy Efficiency chapter.

Target 2: 25 MtCO2e removed from the atmosphere between 2020 and 2030

From 2020 to 2024, we removed 4,229,568 tCO₂e. This figure reflects the carbon balance of our operations, i.e. the difference between total removals and emissions (both anthropogenic and LULUCF biogenic).

In 2024, we faced the most challenging hydrological scenario of the past five years in the state of São Paulo. The extreme conditions were primarily caused by rising temperatures and a significant decrease in rainfall. Water deficits directly impact forest yields: the greater the deficit, the slower the eucalyptus forest growth, which in turn reduces their ability to remove CO_₂ from the atmosphere during the growth process.

Additionally, the adverse climate conditions significantly increased the occurrence of forest fires.

As a result of these extreme weather events, we reached only 19% of our CO_₂ removal target for 2024.

Bracell has developed a range of initiatives to mitigate these impacts and increase the resilience of our operations to climate change. Key initiatives include monitoring carbon and water flux in eucalyptus plantations; investing in forest research and development (R&D); integrated climate-related risk and impact management; and conducting climate zoning studies. Learn more in Monitoring Carbon and Water Flux in Eucalyptus Plantations and Climate Zoning Study.

O post RR-PP-110a.2: Discussion of long-term and short-term strategy or plan to manage Scope 1 emissions, emissions reduction targets, and an analysis of performance against those targets. apareceu primeiro em Bracell - Central de Indicadores.

Reducing these emissions is essential to protect human health, improve air quality, and mitigate environmental impacts, as they are linked to respiratory and cardiovascular diseases, cancer, and contribute to acid rain and secondary pollution. Reducing these pollutants also supports the protection of sensitive ecosystems.

In 2024, Bracell’s emissions remained within the limits established by Brazilian environmental regulations.

1. Volatile Organic Compounds (VOCs) are not measured in air emissions reporting.
2. The data include disclosures as part of the EU Ecolabel and Nordic Swan schemes for kraft pulp.

O post RR-PP-120a.1: Air emissions for the following pollutants: (1) NOx (excluding N2O), (2) SO2, (3) volatile organic compounds (VOCs), (4) particulate matter (PM), and (5) hazardous air pollutants (HAPs) apareceu primeiro em Bracell - Central de Indicadores.

Brazil’s energy mix is an important advantage for Bracell’s operations, with a high share of renewable sources such as hydro, wind, and solar. This improves operations efficiency and reflects our commitment to sustainable practices. Although variability in energy supply can affect availability and cost during dry periods, a diversified mix of predominantly renewable sources helps mitigate these impacts and ensure stable and sustainable operations.

1. Our Southeast paper operations use electricity generated as part of the pulp production process. As a result, this site does not purchase energy from external sources.
2. Energy consumed = energy generated + energy purchased – energy sold.
3. Both black liquor and biomass were included in the “Percentage biomass” metric.

O post RR-PP-130a.1: (1) Total energy consumed, (2) percentage grid electricity, (3) percentage biomass, (4) percentage from other renewable. apareceu primeiro em Bracell - Central de Indicadores.