Our approach to procurement and supplier management follows corporate policies and internal procedures within our Integrated Management System, which governs social (occupational health, workplace safety, labor rights, child and adolescent rights, Diversity & Inclusion, human rights, social risks and impacts) matters.

Social criteria are evaluated as part of our approach to managing contractors working directly in our facilities. Through our Contract Management System, we review and monitor contractor documentation demonstrating compliance with legal requirements, including clauses from collective bargaining agreements, mandatory technical and operational training, occupational health criteria, and operating licenses. This applies to all suppliers, including new suppliers.

Processes involved in supplier management:

• Third-party due diligence: before formal engagement, all suppliers undergo due diligence screening. This process is conducted in accordance with Bracell’s policies on Third-Party Due Diligence, Supplier Qualification and Evaluation, Sustainability, and Human Rights.
• Environmental compliance validation: as part of the onboarding and screening process, suppliers acknowledge and agree to follow Bracell’s Procurement Code of Ethics. In our operations, suppliers are evaluated regarding their management of environmental risks and impacts.
• Social compliance validation: social requirements and risks are assessed as part of our approach to managing contractors operating directly at our facilities. The contractor management process includes verifying compliance with labor rights such as compensation, collective bargaining agreements, training, occupational health and safety, among other mandatory requirements for managing social risks. This is done through the Contract Management System, where contractual documents are stored and compliance with legal requirements is verified.
• Supplier evaluation and qualification: we assess suppliers’ capability to deliver products and services in accordance with legal, certification, and technical standards.
• Audits: we perform audits on all operations employing contractors.

We use the Linkana platform to enhance supplier screening and monitoring on environmental management criteria, impact prevention, and fulfillment of commitments to sustainable practices. These assessments cover compliance with national and international environmental standards, public data from the Federal Revenue Service, clearance certificates, block lists, and sustainability indexes. After data validation, a confidence score informs risk recommendations and directs the process toward automatic or manual approval workflows.

In 2025, no suppliers were identified as being responsible for negative social impacts. Suppliers for whom negative social impacts were identified were not approved to continue providing services.

Percentage of new suppliers selected based on social criteria	2025
Total number of new suppliers considered for contracting	1,816
Total number of new suppliers contracted based on social criteria	1,776
Percentage of new suppliers contracted based on social criteria (%)	97.80%

Note: in 2025, 32 suppliers approved under Bracell’s procurement process were found to have environmental nonconformities. However, they remained approved based on Linkana’s structured risk-management methodology, which assigns supplier ratings from A to E across Compliance, Environmental Legal, and Financial dimensions. Following a comprehensive review—including Compliance validation (when applicable), environmental impact assessment, and materiality analysis—the nonconformities were deemed non-critical to operational risks. For each case, corrective action and follow-up plans were formalized in accordance with Bracell’s supplier approval documentation matrix.