The Climate Transition and Adaptation Plan is primarily focused on the climate transition pillar, aiming to progressively structure the corporate strategy for reducing greenhouse gas (GHG) emissions, strengthening carbon removals, and increasing efficiency and the use of renewable sources in the energy matrix. Throughout 2025, Bracell continued its investments in structuring decarbonization actions across its businesses, using Bracell 2030 as a reference and adopting a medium- and long-term perspective.

The development of the plan is based on scientific principles and the use of internationally recognized methodologies and frameworks, including GRI, CDP, GHG Protocol, SASB, TCFD, IFRS, and the Transition Plan Taskforce (TPT). These frameworks guide methodological consistency, transparency, and comparability throughout the plan’s evolution.

As part of its intended pathway, the plan seeks progressive alignment with the 1.5°C global warming limit, supported by climate scenario analysis based on the Intergovernmental Panel on Climate Change (IPCC).

Bracell’s climate governance, within the scope of transition and adaptation, is structured across three levels to integrate climate-related issues into the business strategy.

At the strategic level, the Sustainability Steering Committee oversees climate targets and carbon reduction and adaptation projects, defines priorities, and promotes integration with corporate strategy, risk management, and long-term value creation.

At the tactical level, the Sustainability area acts as the link between strategy and execution, promoting the integration of climate data, monitoring climate targets, and leading mitigation and resilience-related topics.

At the operational level, Technical Working Groups are responsible for implementing climate guidelines through the development and monitoring of emissions, removals, and energy-related topics.

The Climate Transition and Adaptation Plan incorporates, as a developing guideline, the principles of a just transition, considering the social, environmental, economic, and territorial impacts of decarbonization, with a future outlook for the inclusion of guidelines, metrics, and integrated analyses on socio-environmental topics. Its scope is to progressively guide mitigation initiatives, such as emissions reduction, strengthening carbon removals, expanding the renewable energy matrix, and integrating climate criteria into decision-making across operations and the value chain.

The Climate Action pillar reflects Bracell’s commitment to contributing to the mitigation of climate change impacts and to enhancing the resilience of its operations. The Company has been building its climate strategy through the management of its greenhouse gas (GHG) emissions, the establishment of emissions reduction targets and carbon removal targets through its forests, as well as the implementation of actions that strengthen climate adaptation (GRI 3-3).

Bracell 2030 includes two commitments related to the material topic of Climate Change. Our targets were developed based on an assessment of risks and impacts—both positive and negative—of Bracell’s operations in the context of climate change. Our operations both emit greenhouse gases (GHG) and capture CO₂ from the atmosphere through the growth of planted eucalyptus forests and the conservation of native vegetation areas under the Company’s management.

By 2030, we have committed to reducing our carbon emissions per tonne of product manufactured by 75%, using 2020 as the base year for comparison. This corresponds to reaching 0.122 tCO₂e/adt. Additionally, we aim to remove 25 MtCO₂e from the atmosphere over a ten-year period—from 2020 to 2030 (GRI 3-3).

In addition, we conducted a comprehensive assessment of potential and actual (realized) impacts—both positive and negative—related to the material topic of Climate Change.

Impacts	Description	Details
Positive Actual Impacts	We remove carbon from the atmosphere through our eucalyptus plantations, native forests, and soil.	In 2025, our planted forests removed 1.8 MtCO₂e, while our native forests removed 1.6 MtCO₂e, totaling 3.4  MtCO₂e in removals.
Actual negative impacts	Greenhouse gas (GHG) emissions from our operations.	Scope 1 and 2 greenhouse gas emissions, whose impacts are limited in scale and moderate in intensity. We have effective internal control mechanisms in place to manage and reduce these emissions ((see more in our GHG inventory under GRI 305 – Emissions).
	Greenhouse gas (GHG) emissions from our operations.	Scope 3 greenhouse gas emissions, whose impacts are broad in scale and high in intensity. We have internal control mechanisms in place and recognize the importance of strengthening our strategy to mitigate Scope 3 GHG emissions. We actively participate in committees and working groups on this topic (see more in our GHG inventory under  GRI 305 – Emissions).