GRI 102-1 Climate Transition and Adaptation Plan
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). |
GRI 102-2 Climate change adaptation plan
In 2025, Bracell initiated the development of the climate change adaptation pillar within its Climate Transition and Adaptation Plan, focusing on strengthening the resilience of its operations, assets, and value chain in the face of climate risks. This pillar complements the Bracell 2030 program, which already establishes corporate climate-related targets.
The approach is science-based and aligned with international frameworks such as GRI, CDP, TCFD, IFRS, and IPCC, which guide the identification, assessment, and management of climate risks across different time horizons, with the gradual integration of these analyses into Enterprise Risk Management (ERM).
Governance of the adaptation pillar follows the corporate climate management structure: the Sustainability Steering Committee operates at the strategic level, the Climate & Carbon Hub at the tactical level, and operational areas contribute to data collection, vulnerability assessments, and the discussion of adaptive responses.
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 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, identified through a double materiality assessment. This process incorporates a risk perspective and analyzes the key topics that influence and are influenced by the Company’s operations. It considers both the impacts generated by the Company on the environment and society, as well as the associated financial effects.
| 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). |
Bracell systematically identifies and classifies risks and opportunities related to climate change. In this process, we categorize them as physical and regulatory and highlight their financial implications for the Company’s business. We also seek to detail the methods applied for managing each of them.
| Source of Risk | Risk | Scope |
| Physical Risks and Opportunities | Extreme weather events (floods, windstorms, and forest fires) | These may result in significant losses of forest assets, production disruptions, raw material supply disruptions, increased insurance costs, and additional operational risks. Our approach to managing these risks includes weather-resistant building and industrial facility designs, effective industrial fire suppression systems, forest fire response plans, and insurance coverage for facilities and equipment. |
| Physical Risks and Opportunities | Changes in rainfall patterns | These may lead to reduced water availability, increased costs for sourcing and treatment, and limitations on production capacity. Our approach to managing these risks includes strict monitoring of water consumption in line with water permits, setting reduction targets and performance indicators, and implementing water recycling projects and renewable energy solutions to improve operational efficiency. |
| Physical Risks and Opportunities | Water shortage | This poses both physical and regulatory risks, directly affecting groundwater usage permits and potentially limiting production and future expansion. Our approach to managing these risks includes continuous monitoring of water consumption and setting clear performance indicators and targets for consumption reduction, aiming to optimize processes and reduce losses. |
| Physical Risks and Opportunities | Strong winds and heavy rainfall | These events can cause serious damage to assets, limiting or halting production operations. We manage these risks by designing structures to withstand severe weather and maintaining emergency and business continuity plans. |
| Regulatory Risk and Opportunity | More stringent legal and regulatory climate-related requirements | These requirements could result in additional compliance costs. Our approach to managing these risks involves close monitoring and control of water consumption and permits, carrying out research and projects around water reduction and reuse in industrial processes, and expanding renewable energy and use of electric equipment (such as electric forklifts) to significantly reduce fossil fuel consumption. |
GRI 102-5 Scope 1 GHG Emissions
| 2025 | Bahia Pulp | São Paulo Pulp | Southeast Paper | Northeast Paper | Mato Grosso do Sul Forestry | Total | |
| Mobile combustion | 10,213.96 | 237,527.19 | 588.36 | 84,643.02 | 35,641.96 | 368,614.50 | |
| Stationary combustion | 182,456.76 | 181,392.54 | 4.30 | 1,099.23 | 61.78 | 365,014.61 | |
| Waste and wastewater generated | 0.00 | 13,838.01 | 0.00 | 0.00 | 0.00 | 13,838.01 | |
| Fugitive emissions | 5,474.48 | 2,072.37 | 0.00 | 118.82 | 289.86 | 7,955.53 | |
| Agricultural activities | 15,534.84 | 65,679.52 | 0.00 | 0.00 | 94,389.03 | 175,603.38 | |
| Industrial processes | 8,124.34 | 30,634.80 | 0.00 | 0.00 | 0.00 | 38,759.14 | |
|
Land-use change |
1,855.87 | 4,379.40 | 0.00 | 0.00 | 0.45 | 6,235.71 | |
| Bracell | 223,660.25 | 535,523.83 | 592.66 | 85,861.07 | 130,383.07 | 976,020.89 | |
| 2025 | Bahia Pulp | São Paulo Pulp | Southeast Paper | Northeast Paper | Mato Grosso do Sul Forestry | Total |
| CO₂ | 200,792.00 | 417,465.09 | 580.83 | 84,260.16 | 74,547.22 | 777.645,30, |
| CH₄ | 2,702.34 | 23,657.39 | 6.11 | 670.31 | 96.16 | 27,132.31 |
| N₂O | 14,962.84 | 92,591.63 | 5.72 | 930.61 | 55,587.74 | 164,078.54 |
| HFCs | 5,203.07 | 1,809.71 | 0.00 | 0.00 | 151.96 | 7,164.74 |
| PFCs | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| SF₆ | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| NF₃ | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Bracell | 223,660.25 | 535,523.83 | 592.66 | 85,861.07 | 130,383.07 | 976,020.89 |
| 2025 | Bahia Pulp | São Paulo Pulp | Southeast Paper | Northeast Paper | Mato Grosso do Sul Forestry | Total |
| CO₂ | 200,792.00 | 417,465.09 | 580.83 | 84,260.16 | 74,547.22 | 777,645.30 |
| CH₄ | 96.51 | 844.91 | 0.22 | 23.94 | 3.43 | 969.01 |
| N₂O | 56.46 | 349.40 | 0.02 | 3.51 | 209.77 | 619.16 |
| HFCs | 3.58 | 0.95 | 0.00 | 0.00 | 0.08 | 4.61 |
| PFCs | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| SF₆ | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| NF₃ | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Bracell | 200,948.56 | 418,660.35 | 581.07 | 84,287.61 | 74,760.50 | 779,238.08 |
| 2025 | Bahia Pulp | São Paulo Pulp | Southeast Paper | Northeast Paper | Mato Grosso do Sul Forestry | Total |
| Scope 1 | 223,660.25 | 535,523.83 | 592.66 | 85,861.07 | 130,383.07 | 976,020.89 |
| Scope 1 – Biogenic | 1,940,273.87 | 16,084,659.90 | 29.69 | 71,034.18 | 572.11 | 18,096,569.75 |
Learn more under GRI 305-1.
GRI 102-6 Scope 2 GHG Emissions
Location-based gross GHG emissions
| 2025 | Bahia Pulp | São Paulo Pulp | Southeast Paper | Northeast Paper | Mato Grosso do Sul Forestry | Total |
| Scope 2 | 6,513.74 | 4,349.20 | 10,325.79 | 2,705.20 | 23.27 | 23,917.20 |
| Bracell | 6,513.74 | 4,349.20 | 10,325.79 | 2,705.20 | 23.27 | 23,917.20 |
Location-based emissions
| 2025 | Bahia Pulp | São Paulo Pulp | Southeast Paper | Northeast Paper | Mato Grosso do Sul Forestry | Total |
| CO₂ | 6,513.74 | 4,349.20 | 10,325.79 | 2,705.20 | 23.27 | 23,917.20 |
| CH₄ | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| N₂O | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Bracell | 6,513.74 | 4,349.20 | 10,325.79 | 2,705.20 | 23.27 | 23,917.20 |
Location-based gross GHG emissions
| 2025 | Bahia Pulp | São Paulo Pulp | Southeast Paper | Northeast Paper | Mato Grosso do Sul Forestry | Total |
| Scope 2 – Biogenic | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
Learn more under GRI 305-2.
GRI 102-7 Scope 3 GHG Emissions
In 2025, Scope 3 accounted for 47.06% of our total emissions.
| Scope 3 categories | Bahia Pulp | São Paulo Pulp | Southeast Paper | Northeast Paper | Mato Grosso do Sul Forestry | Total | ||
| Bens e serviços comprados | 25,051.97 | 378.25 | 0.00 | 0.00 | 4.52 | 25,434.74 | ||
| T&D Upstream | 3,676.22 | 24,159.94 | 0.00 | 0.00 | 2,981.42 | 30,817.58 | ||
| Resíduos sólidos da operação | 84.80 | 30,455.47 | 0.00 | 798.04 | 3.89 | 31,342.19 | ||
| Viagens a negócio | 8.77 | 430.57 | 0.00 | 0.00 | 50.33 | 489.68 | ||
| Deslocamento de funcionários | 3,091.03 | 8,737.57 | 0.00 | 195.99 | 562.47 | 12,587.06 | ||
| T&D Downstream | 132,736.12 | 652,300.61 | 3,180.58 | 0.00 | 0.00 | 788,217.31 | ||
| Bracell | 164,648.92 | 716,462.41 | 3,180.58 | 994.03 | 3,602.63 | 888,888.57 |
| 2025 | Bahia Pulp | São Paulo Pulp | Southeast Paper | Northeast Paper | Mato Grosso do Sul Forestry | Total |
| CO₂ | 162,429.47 | 677,332.25 | 3,128.84 | 990.84 | 3,544.54 | 847,425.94 |
| CH₄ | 199.40 | 18,100.07 | 6.54 | 0.40 | 7.30 | 18,313.71 |
| N₂O | 2,020.05 | 21,030.10 | 45.19 | 2.79 | 50.79 | 23,148.92 |
| Bracell | 164,648.92 | 716,462.41 | 3,180.58 | 994.03 | 3,602.63 | 888,888.57 |
| 2025 | Bahia Pulp | São Paulo Pulp | Southeast Paper | Northeast Paper | Mato Grosso do Sul Forestry | Total |
| CO₂ | 162,429.47 | 677,332.25 | 3,128.84 | 990.84 | 3,544.54 | 847,425.94 |
| CH₄ | 7.12 | 646.43 | 0.23 | 0.01 | 0.26 | 654.06 |
| N₂O | 7.62 | 79.36 | 0.17 | 0.01 | 0.19 | 87.35 |
| Scope 3 categories | Bahia Pulp | São Paulo Pulp | Southeast Paper | Northeast Paper | Mato Grosso do Sul Forestry | Total |
| 1. Purchased goods and services | 3,698.04 | 63.49 | 0.00 | 0.00 | 0.76 | 4,032.29 |
| 4. Upstream transportation and distribution | 575.78 | 20,086.85 | 0.00 | 0.00 | 4,264.24 | 24,926.87 |
| 5. Waste generated in operations | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| 6. Business travel | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| 7. Employee commuting | 4.38 | 707.96 | 0.00 | 155.17 | 0.00 | 867.51 |
| 9. Downstream transportation and distribution | 0.00 | 512.63 | 0.00 | 0.00 | 0.00 | 512.63 |
| Bracell | 4,548.20 | 21,370.92 | 0.00 | 155.17 | 4,265.00 | 30,339.29 |
GRI 102-8 GHG emissions intensity
In 2025, Bracell increased its Scope 1 and 2 GHG emissions intensity by approximately 23% compared to 2024. This increase was mainly driven by higher consumption of fossil fuels in forest logistics and industrial operations.
| Emissions (tCO2e) | 2023 | 2024 | 2025 |
|---|---|---|---|
| Scope 1 e 2 | 0.174 | 0.208 | 0.255 |
Note: Bracell’s emissions intensity metric considers Scope 1 and Scope 2 emissions from the São Paulo and Bahia pulp units, in order to align with the reporting of its emissions intensity climate target.
For more information, see GRI 305-4.
GRI 102-9 GHG removals in the value chain
In 2025, Bracell recorded 1,888,827 tCO₂e of fossil greenhouse gas emissions across Scopes 1, 2, and 3. In the same period, planted forests and native vegetation areas under the Company’s management removed 14,748,446 tCO₂e through carbon sequestration, while 11,315,322 tCO₂e of biogenic LULUCF emissions were recorded, resulting in total removals of 3,433,124 tCO₂e. As a result, the net balance between emissions and removals totaled -1,544,310 tCO₂e, reflecting a net carbon removal.
| Emissões | 2023 | 2024 | 2025 |
| Total (E1 + E2 + E3) | 1,701,669.00 | 1,716,315.84 | 1,888,826.67 |
| Escopo 1 | 597,454.00 | 731,362.80 | 976,020.89 |
| Escopo 2 | 9,611.00 | 13,213.63 | 23,917.20 |
| Escopo 3 | 1,094,603.00 | 971,739.41 | 888,888.57 |
| Emissões biogênicas LULUCF | 3,940,391.00 | 2,227,222.45 | 11,315,321.66 |
| Remoções biogênicas | -1,286,441.00 | -4,119,009.65 | 14,748,445.83 |
| Saldo | 4,355,619.00 | -175,471.36 | -1,544,297.51 |
Note: Bracell 2030 removals target (25 MtCO₂e removed from the atmosphere between 2020 and 2030) does not include emissions from Tissue Northeast and Tissue Southeast operations. Therefore, for the purpose of calculating the target, emissions from these units (amounting jointly to 103,659.33 tCO₂e) are excluded, resulting in an annual balance of –1,647,956.84 tCO₂e.