We routinely assess risks and impacts related to our operations’ direct suppliers. Risk and impact assessments are conducted using Bracell’s environmental aspect and impact matrix, which conforms to the requirements of the certification standards applicable to our operations as well as applicable laws and regulations. In 2025, suppliers for whom negative environmental impacts were identified were subject to approval and/or rejection in accordance with internal procedures.

Key environmental risks assessed in the supply chain include deforestation, biodiversity loss, pollution and water withdrawal, nonrenewable energy use, improper waste and effluent disposal, and greenhouse gas (GHG) emissions.

In managing these risks, we conduct internal and external environmental audits that assess compliance with certification standards, internal procedures, and legal requirements. These audits, carried out at least twice a year, cover 18 departments on a sampling basis. In addition, Bracell holds environmental certifications such as ISO 14001 (Environmental Management Systems), NBR 14789 (Sustainable Forest Management), and ISO 19011.

We also conduct regular audits on operations employing contractors. In these audits, we evaluate operational practices for compliance with certification standards, corporate policies, legislation, and regulatory standards on safety, ethics, and compliance.

These audits include supply chain and product life cycle assessments, ensuring operations are aligned with sustainable practices.

Suppliers of inputs, equipment, and services that are directly involved in our operations are evaluated throughout a process that begins with supplier onboarding and ends upon contract completion.

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), environmental (water, effluents, waste, energy, environmental licensing, forest management plans, environmental risks and impacts), and governance (compliance, ethics, unfair competition, conflicts of interest, and anti-corruption) matters.

Internal standards are developed in compliance with legislation, forestry and industrial certification standards, international sustainability protocols, and other regulatory standards.

Operating procedures within the Integrated Management System are internal, while our corporate policies are public on the Bracell website.

Supplier management processes are described under GRI 3-3: Management of material topics: Supply chain management No suppliers operating directly in our facilities were identified as causing significant—actual or potential—negative environmental impacts.

Learn more about supplier social and environmental assessments under GRI 308-1 – New suppliers that were screened using environmental criteria.

Suppliers with negative environmental impacts	2025
Number of suppliers assessed for environmental impacts	1,776
Number of suppliers identified as having significant actual and potential negative environmental impacts	33
Significant actual and potential negative environmental impacts identified in the supply chain	1 – Environmental fines – Ibama (Headquarters and branches) 2 – Environmental fines – Ibama (Partners/Shareholders) 3 – Embargoed areas – Ibama (Headquarters and branches) 4 – Embargoed areas – Ibama (Partners/Shareholders)
Number of suppliers identified as causing significant actual and potential negative environmental impacts, for whom improvements were agreed as a result of the assessment	32
Percentage of suppliers identified as causing significant actual and potential negative environmental impacts, with whom improvements were agreed as a result of the assessment	96.97%
Number of suppliers identified as causing significant actual and potential negative environmental impacts with whom business relationships were terminated as a result of the assessment	1
Percentage of suppliers identified as causing significant actual and potential negative environmental impacts with whom business relationships were terminated as a result of the assessment	3.03%
Reasons for terminating the business relationship as identified through the assessment	Issue in supplier approval documentation

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.