The disclosures reported for 2025 reflect the management practices and performance of our Brazilian-based pulp and paper operations in Lençóis Paulista, state of São Paulo (Bracell SP Celulose Ltda.); the Camaçari Industrial District, state of Bahia (Bracell Bahia Specialty Cellulose S.A. and Bracell Bahia Floresta Ltda.); and Pombos, state of Pernambuco (Bracell Papéis Nordeste Ltda., which also operates two additional units in Bahia, in Feira de Santana and São Gonçalo dos Campos). The Bracell Foundation, referenced in GRI 2-6, operates under independent administrative and financial management and is not included in this report (see GRI 2-6 – Activities, value chain and other business relationships).

Bracell has three head offices:

– for our Southeast operations: in Lençóis Paulista, São Paulo, at the address: Rodovia Juliano Lorenzeti, Km 4, accessed via Rodovia Marechal Rondon, Exit 304 – Cep: 18685-901;

– for our Northeast pulp operations: in Camaçari, Bahia, at the address: Rua Alfa, 1033, AIN – Complexo Industrial de Camaçari – CEP 42816-100; and

– for our Northeast paper operations: in Feira de Santana, Bahia, at the address: Av. Banco do Nordeste, 3630 – Galpão 2. Feira de Santana – BA – ZIP Code: 44010-665; in São Gonçalo dos Campos (BA), at the address: Rua B , 501, CIS – CEP 44330-000; in Pombos (PE), at the address: Fazenda Santa Clara, S/N , Rodovia Luiz Gonzaga (BR 232), km 55, CEP 55630-000.

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

The data disclosed for the year 2025 reflect our management practices and performance indicators related to our pulp and paper operations located in Brazil, in the states of São Paulo, in Lençóis Paulista (Bracell SP Celulose Ltda.); Bahia, in the Camaçari Industrial District (Bracell Bahia Specialty Cellulose S.A. and Bracell Bahia Florestal Ltda.); and Pernambuco, in Pombos (Bracell Papéis Nordeste Ltda., which also operates two units in the state of Bahia, in Feira de Santana and São Gonçalo dos Campos). Bracell Foundation has its own administrative and financial management, and therefore data related to the Foundation are not included in this report.

Bracell is committed to annual reporting on its sustainability performance and management practices to its stakeholders. For one more year, we are reporting on our performance in the environmental, social and governance dimensions, in compliance with the Global Reporting Initiative (GRI) 2021 Standards, the Sustainability Accounting Standards Board (SASB) Standards, and the UN Global Compact Communication on Progress guidelines. 

That information is disclosed through the Bracell Sustainability Report and our Disclosures Hub, both of which are published on Bracell’s website. The information is for the period January 1 to December 31, 2025 and addresses the topics in our materiality matrix, last updated in 2024. 

Our disclosures for 2025 cover our management practices and performance indicators for pulp and paper operations in Brazil, in the states of São Paulo (Bracell SP Celulose Ltda.), Bahia (Bracell Bahia Specialty Celulose S.A.), and Pernambuco (Bracell Papéis Nordeste Ltda.). The Bracell Foundation, presented on GRI 2-6, operates with independent administrative and financial management and, as such, is not included in this Report. 

Our results disclosure also includes reporting on the performance of Bracell 2030 goals and commitments, which directly contribute to the United Nations (UN) Sustainable Development Goals (SDGs), as well as the Communication on Progress (CoP) related to the Universal Principles of the Global Compact, available at:
https://unglobalcompact.org/what-is-gc/participants/138723-Bracell. 

For confidentiality reasons, Bracell does not disclose financial information. 

The information published in the Sustainability Report and Disclosures Hub is assured by an independent, external third party, with no conflict of interest. The Limited Assurance Reports for the information in the Sustainability Report, Greenhouse Gas Inventory and One-to-One Commitment are publicly available on GRI 3-2 List of Matrial Topics. 

Any comments, critiques or queries about our management practices and results are welcome. Please email them to faleconoscoba@bracell.com (for Bahia and Pernambuco) or faleconoscosp@bracell.com (for São Paulo). 

The 2025 cycle presents reformulated information for the following indicators: 

2-7: Employees

In accordance to GRI Standards guidelines, we refined the classification of employees without guaranteed working hours. This category includes professionals without fixed schedules, whose working hours are not predefined on a daily, weekly, or monthly basis and who perform activities on demand, according to the organization’s needs. Under this definition, Bracell does not have employees hired without a fixed working schedule. 

2-16: Communication of critical concerns 

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. 

The complaints category were updated compared to the 2024 reporting cycle to enhance data transparency.

The category “Odor” was included for Bahia pulp operation and its historical number of complaints.  

205-2: Communication and training about anti-corruption policies and procedures 

The data for Bahia has been reviewed and adjusted for 2024. 

Starting in 2025, data disclosure will be presented with segregation by business unit. This change aims to increase the reporting accuracy, enhancing transparency and improving data understanding. 

413-2: Operations with significant actual and potential negative impacts on local communities 

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  

The complaints category were updated compared to the 2024 reporting cycle to enhance data transparency.

The category “Odor” was included for Bahia pulp operation and its historical number of complaints. 

The information published in the Sustainability Report and Disclosures Hub is assured by an independent, external third party, with no conflict of interest. The Limited Assurance Reports for the information in the Sustainability Report, Greenhouse Gas Inventory and One-to-One Commitment are publicly available on GRI 3-2 List of Material Topics. 

For further details on the involvement of the highest governance body in the external assurance process, please refer to GRI Disclosure 2-12 – Role of the highest governance body in overseeing the management of impacts. 

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).

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.

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).

Sustainability Vision

Our commitment to sustainable development is grounded in circular bioeconomy principles. We aim to revolutionize the forest-based pulp industry and remain at its forefront, while providing diversified products from responsibly managed, renewable plantations. We believe in creating shared value as well as building impactful and long-lasting partnerships that enable us to continuously do good for our Communities, Country, Climate and Nature, Customers and Company.

Long-Term Strategy

Bracell 2030 is our long-term sustainability roadmap. Launched in 2023 as a public commitment, it outlines 14 goals and commitments across four strategic pillars, with an overarching objective to create positive impact and deliver value for our Community, Country, Climate, Customers, and Company—in line with our 5Cs Philosophy.

The Bracell 2030 roadmap includes 14 targets and commitments focused on four strategic priorities:

Climate Action

Climate-positive operations supporting a low-carbon economy

Sustainable Landscapes and Biodiversity

Build regenerative systems that benefit nature, biodiversity and ecosystem services

Promoting Sustainable Growth

Expand our business through increased efficiency, circularity and responsible production

Empowering Lives

Provide capacity building to our people and communities through transformational initiativesYear 2025 was the second consecutive full year of sharing results from the Bracell 2030 journey, reflecting our commitment to a more efficient and responsible production model aligned with the expectations of stakeholders.

Our prioritization of issues such as climate change, biodiversity, water management, waste, and social impact was validated through a double materiality assessment conducted in 2024 and 2025 (learn more under GRI 3-1 Process to determine material topics).

Note 1: Bracell 2030 target for women in leadership considers the number of leaders working directly in the pulp business units. The scope of the women‑in‑leadership target is based on Bracell’s operations in the year of 2020, which serves as the baseline for the 2030 target. Bracell Paper operations began in 2023.
Note 2: the positive evaluation target for underrepresented groups is measured on a biennial basis. Therefore, the 2025 target remains the same as defined in the 2024 roadmap. These actions are structural, and their results will be assessed in the Diversity and Inclusion Census to be addressed in 2026. The action plan for this target will be updated based on those results.
Nota 3: the calculation of the 2025 education target is linked to the scores from the Basic Education Assessment System (SAEB, in Portuguese), which provides a proficiency scale that measures learning in Portuguese Language and Mathematics. This assessment is conducted every two years by the Anísio Teixeira National Institute for Educational Studies and Research (Inep, in Portuguese). The scores referring to the 2025 performance were released after the publication of this report and will be disclosed in the 2026 Sustainability Report.

Bracell 2030 Highlights

In 2025, Bracell 2030 completed its second year of tracking and reporting indicators. During this cycle, the long-term initiative saw a significant improvement in governance maturity, with increasingly active involvement and engagement from leadership and operations in achieving set targets.

Climate Action

The Climate Action pillar reflects Bracell’s commitment to mitigating climate change effects and to strengthening the resilience of our operations. The process to build our climate strategy has involved managing GHG emissions, setting 2030 targets for emission reductions and CO₂ removals, and implementing initiatives around climate adaptation (see Climate Action).

Sustainable Landscapes and Biodiversity

This pillar relates to our efforts to preserve natural ecosystems and protect biodiversity in Bracell’s operating regions, strengthening natural resource protection and more resilient landscapes. Each target has a specific focus, supported by structured actions designed to drive tangible progress through 2030 (see Sustainable Landscapes and Biodiversity).

Empowering Lives

The Empowering Lives pillar focuses on promoting diversity and inclusion, strengthening public education, and supporting livelihoods in Bracell’s areas of operation. Our 2030 targets reflect our commitment to human and social development, aligned with creating a fairer and more inclusive environment (read more in Empowering Lives).

Promoting Sustainable Growth

The Promoting Sustainable Growth pillar comprises a set of targets and initiatives focused on resource efficiency, waste management, and continuous improvement of production processes, with a goal to reduce environmental impacts and drive operational innovation (read more in Promoting Sustainable Growth).

Integrated Sustainability Management

The initiatives under this pillar connect with key strategic topics such as climate change, biodiversity and ecosystems, water and effluent management, waste management, occupational health and safety, employee development, and community relations. These areas are all addressed by sustainability performance indicators that inform the continuous improvement of our management approach.

Bracell 2030 Seminar

On October 21, we held the Bracell 2030 Seminar – “Brazil at the forefront of climate action: from the bioindustry to the regenerative economy,” hosted in São Paulo (SP). The event was organized in partnership with business newspaper Valor Econômico, which broadcast the lectures and panel discussions. The event was held in the lead-up to COP30, which took place in November in Belém (PA), Brazil—the first time the conference was hosted in the country.

Bracell’s goal with the event was to foster discussion on how Brazil, with a nature-based focus, can lead the global climate agenda, driven by innovation in bioindustry and a new economic model.

The program also featured a public presentation on progress to date against the Bracell 2030 roadmap, highlighting achievements exceeding our One-For-One Commitment target (see GRI 3-3, Management of the material topic Biodiversity and ecosystems), as well as initiatives focused on biodiversity, carbon removal, and renewable energy use.

The seminar brought together leading experts and authorities in the global and national climate arena. The event was moderated by journalist Leila Sterenberg. Speakers included:

Praveen Singhavi (President of Bracell) and Márcio Nappo (Vice President of Sustainability at Bracell), who discussed Bracell’s sustainability initiatives and commitments

Marco Lambertini (Global Coordinator of the Nature Positive Initiative and former Director General of WWF International), who presented the NPI and discussed putting nature at the center of economic decision-making

– Panel themed “Green economy: can Brazil turn assets into a global advantage and how?”: Ana Toni (CEO of COP30), Joaquim Levy (Director of Economic Strategy and Market Relations at Safra), Paulo Hartung (President of Ibá), and Antônio Joaquim (Board member of Bracell and other companies);

– Panel “How the public and private sectors can drive the green transition”: Natália Resende (São Paulo State Secretary for the Environment), Jaime Verruck (Secretary for the Environment of Mato Grosso do Sul), and Ambassador José Carlos Fonseca (President of Empapel).

We align our business and sustainability objectives, targets, and commitments with our Purpose, Vision, Values and Sustainability Vision, ensuring that environmental, social, and governance (ESG) factors are fully integrated into our business strategy.

The Sustainability Steering Committee—Bracell’s highest governance body for ESG matters—is advised by our top operational leadership, including the heads of forestry operations, mill operations, logistics, legal, internal audit, corporate affairs, and human resources, along with the Vice President of Sustainability. This structure enables a comprehensive analysis of environmental, social and governance risks and impacts.

In addition, Bracell has a Crisis Committee that is convened to manage unexpected events and emergencies, ensuring rapid, coordinated responses to mitigate impacts on operations and stakeholders.

This model supports a governance structure that is both agile and aligned with Bracell’s commitment to sustainability and organizational resilience.

Regulation and Voluntary Commitments

Our strategy and corporate governance are fully compliant with Brazilian legislation, regulatory standards, certifications, and international sustainability standards. We have also subscribed to voluntary commitments. Our corporate policies and internal procedures additionally draw on:

– Brazilian Labor Ministry regulations and standards (NRs)

– the UN Global Compact’s Ten Universal Principles

– the UN Women’s Empowerment Principles (WEPs)

– the International Finance Corporation’s (IFC) Performance Standards on Environmental and Social Sustainability¹

– the International Bill of Human Rights

– the UN Guiding Principles on Business and Human Rights

– The International Labor Organization’s (ILO) Declaration on Fundamental Principles and Rights at Work

– the United Nations Declaration on the Rights of Indigenous Peoples.

¹ The largest global development institution focused on the private sector in developing countries.

As signatories of the Global Compact, we annually report on progress and results on topics linked to the 10 Universal Principles. Bracell’s Communication on Progress is available here.

We invest in cutting-edge technology throughout our value chain, and have set strategic targets across sustainable growth, climate change mitigation, biodiversity protection, and creating positive value for people.

Our commitments and policies reflect the principles that have guided Bracell’s sustainability journey. Learn about some of the key milestones in this journey:

2025

• Upgrades to the production lines at the pulp plant in Camaçari (BA) introduce new technology that reduces steam demand in the pulping stage known as cooking. Our One-for-One Commitment receives the Eco Award 2025 from the American Chamber of Commerce (AmCham), in the Process Sustainability category.
• Bracell joins a group of four Brazilian organizations participating in the global pilot of the Nature Positive Initiative (NPI).
• The first Bracell Social Public Call for Projects is launched. The initiative selected nine projects focused on health and well-being, sports, education, culture, environmental education and women’s entrepreneurship and allocated approximately R$600,000 to strengthen civil society organizations in five municipalities in the state of São Paulo.
• We join the Brazil Pact for Business Integrity (Pacto Brasil), an initiative established by the Office of the Comptroller General (CGU). As part of this initiative, we undertook public commitments that have enhanced our human rights practices.

Bracell’s Integrated Management System includes mechanisms for identifying and addressing complaints, reports, and concerns.

We offer two dedicated channels for receiving complaints, concerns, and reports—both covering the full scope of Bracell’s operations: Contato Seguro and Contact Us. These are available to all stakeholders. Through these channels, we maintain contact with whistleblowers to provide updates on the progress and status of their case.

We follow a standardized process for handling complaints, concerns, and reports. Grievances and concerns are handled by an independent third party, which contacts the relevant Bracell departments based on the specific needs of each case. The Community Relations team, a component of the Corporate Relations team, is responsible for overseeing the resolution of complaints and concerns.

All case handling is tracked through a system that monitors service indicators, such as time taken to resolve the issue and time to provide feedback to the person who submitted the report regarding action taken.

For whistleblowing reports specifically, the Contato Seguro channel is managed by an independent third party, with the Internal Audit leading the investigation process, along with the Controllership and Legal teams. The investigations aim to identify the root causes of the incident, so that corrective and preventive actions can be implemented to avoid recurrence.

Bracell also plans and monitors the implementation of impact mitigation measures through our Sustainability Steering Committee—responsible for routine operational management—and Crisis Committee—responsible for managing emergencies (see more under GRI 2-16 Communication of critical concerns).

The Sustainability Steering Committee reviews the findings from all external audits and assessments on compliance with standards such as PEFC, ISO 9001, ISO 14001, IFC Performance Standards, and the Equator Principles.

The improvement measures identified through these audits and compliance reviews are followed up on by the Sustainability Steering Committee. This committee also plays a direct role in evaluating and deciding on strategic social and environmental issues submitted for risk and opportunity assessments.

In 2025, our Pulp operations–including our Southeast Paper business, which was accounted together with our São Paulo Pulb operations as they are co-located— recorded 166 reports, covering inappropriate conduct and behavior, operational issues, fraud, matters related to third-party companies and other concerns. Of these: 22 are still under review, 84 were resolved without requiring remedial action, and 60 were resolved through remedial action.

Bracell Papéis Nordeste recorded 90 reports. Of those, 8 are still under review, 43 were resolved without remedial action, and 39 were resolved with remedial action.

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. Submissions are received and managed by an independent third party. Cases are investigated by Bracell’s Internal Audit Department, which reports directly to the Executive Board and the RGE Group.

Contact information:
denuncias.bracell@contatoseguro.com.br

www.contatoseguro.com.br/bracell

0800 810 8546

Contact Us

Open to all stakeholders, this channel is used for submitting questions, suggestions, and compliments, as well as lodging complaints. Requests are received and managed by an independent third party and forwarded to the relevant departments depending on the topic. This process is overseen by the Community Relations team within Corporate Affairs.

Contact details:

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

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

Read more about how we address and respond to stakeholder concerns, complaints, and reports under GRI 2-16.

Bracell has a structured set of policies, codes, and internal standards that guide employees on conduct aligned with our values and commitments (see more under GRI 2-13 Delegation of responsibility for managing impacts). To ensure these guidelines are effectively implemented and to promote responsible business conduct, Bracell provides training to leaders, employees, contractors, and suppliers directly involved in our operations.

This training cover topics such as ethics, integrity, compliance, and occupational health and safety, helping raise awareness and align all audiences with Bracell’s principles (see more under GRI 404-2 – Programs for upgrading employee skills and transition assistance programs).

In addition to actively communicating these guidelines, we regularly evaluate whether trained audiences are complying with requirements, ensuring effective management.

Bracell also provides two dedicated channels for submitting complaints, concerns and reports, ensuring transparency and a welcoming space for complaints or questions about organizational behavior.

We provide two mechanisms for raising concerns regarding business conduct:

Bracell believes in and actively supports membership-based initiatives as a way to foster engagement and promote sustainable development in Brazil.

We are active members of a range of industry associations, councils, committees, forums, and labor unions. Key memberships include the Brazilian Tree Industry (Ibá), the Brazilian Business Council for Sustainable Development (CEBDS), the Women in Forestry Network, and the UN Global Compact.

Since 2021, Bracell has been a member of the Brazilian Business Council for Sustainable Development (CEBDS), which represents the World Business Council for Sustainable Development (WBCSD) in Brazil. As a member, Bracell contributes to working groups on Climate, Energy and Sustainable Finance, Biodiversity and Biotechnology, and Social Impact.

Associations and forums in which Bracell holds membership:

Industry and technical associations:

• Bahia Association of Forest Estate Companies (ABAF)
• Brazilian Association for Standardization (ABNT)
• Brazilian Pulp and Paper Association (ABTCP)
• Brazilian Association of Port Terminals (ABTP)
• Brazilian Association of Bonded Terminals and Warehouses (ABTRA)
• Minas Gerais Forestry Industry Association (AMIF)
• São Paulo Association of Planted Forest Producers, Suppliers and Consumers (Florestar SP)
• Brazilian Forestry Association (IBÁ)
• Forestry Research Institute (IPEF)
• Institute for Government Relations (IRELGOV)
• Forestry Research Society (SIF)
• Bahia State Union of Paper and Pulp Industries (SINDPACEL)
• São Paulo State Port Operators Union (SOPESP)
• Brazilian Rural Society (SRB)

Environment, water, and biodiversity:

• CETESB Environmental Committee – Pulp and Paper
• North Recôncavo and Inhambupe Watershed Committees (CBHRNI)
• State Environment Board (CEPRAM)
• State Board of Water Resources (CONERH)
• Management Committees of the Joanes-Ipitanga, Rio Batalha, Litoral Norte, and Cuesta Guarani Protected Areas
• Atlantic Forest Reserve Subcommittee
• Global Partners for the Future of our Forests (Camcore)
• Caetetus Ecological Station Council
• Member of the São Paulo Forest Forum
• Barreiro Rico Ecological Station Council
• Rio Batalha Protected Area (APA) Council and Technical Committee
• Cuesta Guarani Protected Area (APA) Council

Infrastructure, energy, and industry:

• Brazilian Power Sector Regulator (ANEEL)
• National Association of Freight Transportation Users (ANUT)
• Wastewater Treatment Center (CETREL)
• São Paulo State Industry Center – Ciesp Botucatu
• Camaçari Industrial Development Committee (COFIC)
• COFIC Safety Council
• Sustainability Group – Heavy Industry (FIEB)

Safety, community, and local governance:

• Environmental Councils of Alagoinhas, Entre Rios, and Esplanada (BA)
• Esplanada Public Safety Council (BA)
• Northeast Public Safety Council (CONSENE) – as an invited member
• Lençóis Watershed Management Committee
• Municipal Environmental Council of Botucatu

Sustainability and diversity networks:

• Brazilian Business Council for Sustainable Development (CEBDS)
• United Nations Global Compact and the Bahia SDG Hub of the UN Global Compact Network Brazil
• Rede Mulher Florestal
• Sustainability Council of the Bahia State Industry Federation (FIEB)
• AmCham Bahia Sustainability Committee

Bracell is committed to consistently cultivating strategic, ethical, and enduring relationships with stakeholders. Supporting this commitment is a set of policies and guidelines including our Code of Conduct, which provides clear guidance to employees on interacting with stakeholders appropriately.

The Corporate Affairs team is responsible for efforts to engage and cultivate relationships with external stakeholders such as trade associations, government agencies, and local and traditional communities.

Priority stakeholder groups have been identified based on a comprehensive analysis of their impact and influence on Bracell’s operations. This analysis informed specific engagement recommendations tailored for the following stakeholders: employees (both internal and external), local communities, indigenous and traditional peoples, suppliers, government agencies, customers, trade associations, and financial institutions.

Note: stakeholders are individuals or organizations whose interests may be positively or negatively affected by Bracell’s activities and who may also impact the company through their own actions and interests. These include customers, NGOs, communities, suppliers, among others.

Our materiality matrix is updated every two years. The most recent version was approved in 2024. It was developed based on the double materiality approach, which broadens the traditional materiality approach by considering two complementary dimensions.

I. The first dimension assesses the impacts the organization has on the environment and society.

II. The second dimension evaluates how external environmental, social and governance factors may affect the business in the form of risks and opportunities.

This approach provides a broader view of our relationship with society and the environment, considering both inside-out and outside-in perspectives, and aligns with stakeholder expectations.

Double materiality also includes financial, social and environmental impacts, allowing us to more precisely set priorities and better align with stakeholder expectations.

It enables us to design broader impact mitigation plans and build more effective sustainability strategies. This ensures a risk and opportunity assessment that is more resilient to change and supports the business’s medium and long-term sustainability.

The double materiality approach also supports our Bracell 2030 targets and commitments, helping strengthen and align our ESG strategies.

The methodology used to update the materiality matrix was based on three key dimensions:

1. Financial and ESG materiality – Assesses how social and environmental issues can affect business finances. We conducted interviews with Bracell’s senior management, external experts, and industry leaders and evaluated risks and opportunities based on likelihood and magnitude.
2. Impact materiality – This dimension addresses the company’s impacts on society and the environment. Assessing this dimension involved working meetings with Bracell’s internal experts, including the VP of Sustainability and the Corporate Risk Management team. The assessment considered criteria such as likelihood, magnitude, scope, and reversibility of impacts.
3. Stakeholder perspective – We consulted key stakeholders based on a prioritization matrix ranking their influence and relationship with the business. Stakeholders consulted included:
   1. Local communities and forestry partners
   2. Suppliers
   3. Industry associations
   4. NGOs and environmental organizations
   5. Employees in leadership positions

We also reviewed internal documents and industry benchmarks, drawing on internationally recognized frameworks such as:

• SASB Sustainability Accounting Standard for Pulp & Paper Products
• MSCI ESG Industry Materiality Map – Paper Products
• S&P Global – The Sustainability Yearbook 2024 (Paper and Forest Products category)

By intersecting these three dimensions—financial materiality, impact materiality, and stakeholder input—we identified 18 material topics. From this list, seven material topics were prioritized:

The materiality assessment and final material topics were approved by Bracell’s President and Sustainability VP.

Notes:

1. Bracell-reported GRI disclosure linked to the relevant material topics.
2. Bracell-reported SASB disclosures.
3. SDGs affected by Bracell’s material topics and Bracell 2030 targets.
4. Global Compact Principle related to the material topic.

5 In 2024, we updated our materiality assessment using the double materiality approach, considering both environmental/social and financial impacts (see GRI 3-1 Process to determine material topics). Bracell’s material topics have been mapped to the relevant Bracell 2030 drivers based on their contribution to climate, biodiversity, human rights, and sustainable development.

Compared to the previous matrix, the main changes in material topics were: