We recognize that our operations may influence terrestrial ecosystems, particularly through planting, harvesting, and forestry logistics activities. Under the ENCORE (Exploring Natural Capital Opportunities, Risks and Exposure) framework, forestry operations are classified as having a very high impact on terrestrial ecosystems.

Our forestry properties are distributed across different Brazilian biomes, and different ecological settings. Approximately 67.9% of our properties are located within the Atlantic Forest biome, 31.7% in the Cerrado and 0.3% in the Caatinga. Operating across different biomes requires management practices tailored to the environmental characteristics of each region, ensuring that biodiversity and ecosystem conservation considerations are considered in our operations.

Bracell has adopted a sustainable forest management model grounded in integrated landscape assessments. Our plantation footprint is continuously assessed at the watershed level to ensure that the spatial distribution of managed eucalyptus forests is consistent with each area’s environmental carrying capacity. This approach is supplemented by a robust hydrological monitoring program, which uses weirs installed in both native and planted forests to track watershed hydrological responses.

Water withdrawal for irrigation is conducted exclusively at duly authorized abstraction points, ensuring compliance with environmental regulations and responsible resource use. Strict efficiency and control protocols are applied during irrigation operations to optimize water use and prevent waste. These practices reflect our commitment to conserving natural resources and ensuring the sustainability of our forestry operations.

We maintain fauna and flora monitoring programs that serve as environmental management tools. These programs enable us to monitor the presence and diversity of species, assess ecological integrity, and continuously improve forest management practices.

Regular fauna and flora monitoring is conducted across our operational sites.

• Fauna: annually in Bahia and every three years in São Paulo.
• Flora: every two years in Bahia and every five years in São Paulo.

Species identified as part of the monitoring program are classified using official conservation lists, applicable legislation, and scientific references to assess criteria such as threat status, rarity, endemism, economic relevance, and migration patterns.

Species are classified on extinction risk based on the following international, national and state-level frameworks:

• IUCN Red List (International Union for Conservation of Nature)
• MMA Ordinance No. 148/2022
• National List of Endangered Wildlife Species (MMA Ordinance No. 444/2014)
• Official National List of Endangered Flora Species (MMA Ordinance No. 443/2014)
• List of Threatened Brazilian Flora Species (MMA Ordinance No. 298/2019)
• National List of Invasive Alien Species (MMA Ordinance No. 2.546/2020)

To date, monitoring results have not indicated significant degradation trends attributable to forest management activities, suggesting that the management measures we apply are helping to maintain the ecological integrity of monitored areas.

IUCN Red List species and national conservation list species with habitats in areas affected by operations

Region	Extinction risk level	2023		2024		2025
		IUCN	ICMBio	IUCN	ICMBio	IUCN	ICMBio
São Paulo	Critically endangered	0	0	0	0	0	0
São Paulo	Endangered	0	5	10	5	10	5
São Paulo	Vulnerable	9	8	9	8	9	8
São Paulo	Near threatened	12	0	12	0	12	0
São Paulo	Least concern	625	0	643	0	643	0
Bahia	Critically endangered	1	2	1	2	3	3
Bahia	Endangered	6	10	5	9	9	9
Bahia	Vulnerable	11	13	13	18	26	26
Bahia	Near threatened	7	2	7	11	11	11
Bahia	Least concern *	252	250	1.306	1.080	1.948	1.948

Note: the number of species in this category increased due to a revision of the database.