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 2025, 983 critical concerns were reported to Bracell’s highest governance body. Of these, 704 were environment-related. Another 256 reports were related to conduct, including inappropriate behavior, operational failures, fraud, and contractor management. In addition, Bracell’s integrity system identified 22 cases related to corruption and one case of discrimination, all handled in accordance with established remediation and reporting procedures.

Crisis Committee

Bracell maintains a Crisis Committee with permanent members. The committee is convened whenever necessary to address crisis and emergency situations that may impact stakeholders, operations, and the company’s reputation. The Crisis Committee is composed of senior leaders from the departments potentially involved in managing such incidents—forestry operations, industrial operations and supporting functions—ensuring an agile and coordinated response to mitigate risks and 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 a corporate body headed by the Sustainability Vice President, who reports directly to the Chief Corporate Affairs Officer and to Bracell’s President via 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 under 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 under GRI 203-1 Infrastructure investments and services supported).

Risk Management Program

Bracell’s Risk Management Program (PGR) follows the regulatory guidelines issued by government authorities and establishes guidance and processes for:

• Information management and continuous risk 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 these 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

Corporate Risk Management

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.

We have a corporate department dedicated to Corporate Risk Management and Business Continuity Management. This department operates in accordance with recognized international standards, such as ISO 31000, BSI 31100, COSO ERM, ISO 22301 and NFPA 1600.

These guidelines are formalized in our Risk Management and Business Continuity Policy, approved by the Company’s President and senior management. Other related policy documents include our Corporate Risk Management Process, Business Continuity Risk Management Manual and Risk Classification Matrix.

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.

This governance structure ensures effective risk communication, reporting and response, as well as transparency and accountability in the risk management and resolution process. In addition, risk management indicators have been established and are tracked through Bracell’s Balanced Scorecard.

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 Average hours of training per year per employee); 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 – Programs for upgrading employee skills and transition assistance programs).

Due diligence is a key process within Bracell’s risk management governance framework. Established in our Third-Party Due Diligence Policy, this process evaluates suppliers and beneficiaries of donations or sponsorships and sets criteria for assessing identified risks. All suppliers are assessed using an automated tool that regularly tracks their performance indicators, which are specifically calibrated to flag risk alerts. Suppliers listed on federal government block lists, associated with negative media coverage, cited in notices of violations related to slave-like or child labor, convicted of administrative misconduct or subject to other alerts are automatically classified as critical risks and submitted for Compliance evaluation, followed by a risk governance process.

Bracell’s President and senior management periodically monitor risk management results, including related training initiatives. They serve as sponsors of these activities.

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 information:
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 and Pernambuco:
0800-284-4747
faleconoscoba@bracell.com

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

Read more at https://www.bracell.com/contato/

 

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 and Forestry (São Paulo)

Complaints	2023	2024	2025
Damage to third-party property	41	88	240
Airborne dust caused by trucks or machinery	37	101	116
Road maintenance	63	113	0
Damage to roads and access routes	0	28	236
Maintenance of roads, bridges, and cattle guards	0	0	0
Speeding	0	26	30
Fence maintenance	27	6	0
Others	3	1	1
Total	168	362	622
Total for Mill and Forestry	171	363	622

Note 1: The category “Others” includes occurrences related to industrial operations.

Note 2: In 2025, the increase in records in São Paulo compared to the previous year is due to the intensification of forestry operations. The main issues reported involved damage to third‑party structures, dust dispersion caused by truck traffic, and damage to roads and access routes, while complaints related to speeding decreased. The growth in the number of records also reflects the increased efficiency of communication channels and the strengthening of relationships with local communities, which encouraged the use of official mechanisms for reporting and addressing cases.

Mill and Forestry (Bahia)

Complaints	2023	2024	2025
Damage to third-party property	12	14	9
Road maintenance	14	6	13
Oil leakage	–	–	1
Dust (for forestry operations)	8	2	17
Third‑Party Workers (complaints submitted by outsourced employees to their contracting firms)	14	18	23
Traffic misconduct	11	9	7
Noise	2	0	1
Odor perception	1	1	1
Others	16	11	10
Total for Mill and Forestry	78	61	82

Note 1: the category “Oil leakage” was included as a reporting category starting in 2025. There are no previous records of this type of complaint. The complaint refers to an oil leak from machinery operated by a third‑party service provider during forestry activities. The incident was identified through the whistleblowing hotline (Contact Us channel) and was promptly mitigated by the contractor, which removed the affected soil and sent it for remediation by a specialized company. 

Note 2: the table format has been updated compared to 2024 cycle to enhance transparency and improve data visualization (GRI 2‑4).

Note 3: for Bahia operations reportings categories were revised and the cathegory “Odor perception” was included, updating the reports of former years. The “Environmental Damage” category was also included on impacts mapped for the operations, however, there were no records in previous years for that scope (GRI 2‑4).

Note 4: “Others” refers to complaints that were recorded only once during the year, regardless of whether they originated from forestry or industrial operations.

Note 5: there was a reduction in complaints related to property damage and traffic misconduct in 2025. Conversely, there was an increase in reports of road damage, dust incidence, and complaints from third‑party workers, driven by the implementation of new forestry projects and the expansion of operations from 42 to 44 municipalities. This increase is also attributed to improved communication following the implementation of the “Contact Us” channel and the strengthening of dialogue with local communities.

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).