Bracell’s Greenhouse Gas (GHG) Inventory follows the methodological guidance set out in the latest version of the ABNT NBR ISO 14064 standard, the GHG Protocol, and the quantification methodologies of the Intergovernmental Panel on Climate Change (IPCC).

The GHG Emissions Inventory is conducted at a corporate level, covering the pulp production units in São Paulo and Bahia, as well as forest operations in both states.

To manage the material topic of climate change, we rely on policies, action planning, target setting, and continuous monitoring of the results of our initiatives in this area. We seek to operate within a low-carbon economy and adapt to a scenario of a planet with a higher average temperature.

Under Bracell 2030, we have established commitments to reduce greenhouse gas emissions within the Climate Action pillar.

The table below presents our 2025 performance:

CLIMATE ACTION

No	2030 Target	2020 Baseline	2030 Target	2025 Target	2025 Performance	2024 Performance	SDGs Addressed
1	Reduce carbon emissions per metric ton of product by 75%, targeting 0.122 tCO₂e/adt	0.482 tCO2e/adt	0.122 tCO2e/adt	0.141 tCO2e/adt	0.255 tCO2e/adt	0.208 tCO2 e	13, 14, 15
2	25 MtCO₂e removed from the atmosphere between 2020 and 2030	NA	25 MtCO2e	13.9 MtCO2e	6 MtCO2	4.30 MtCO2	13, 14, 15

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 intensity by 75% per tonne of product manufactured, 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.

For 2025, we established interim targets of achieving 0.141 tCO₂e/adt and removing 13.9 MtCO₂e. The measured results are detailed below:

Target 1: reduce carbon emissions per metric ton of product by 75%, targeting 0.122 tCO₂e/adt.

From 2020 to 2025, we reduced carbon emissions per metric ton of product by 47%, reaching 0.255 tCO₂e/adt.

Although we achieved a 47% reduction in emissions intensity over this period, several factors contributed to not meeting the target set for 2025. The reduction was negatively impacted mainly by increased mobile combustion in our operations and higher use of natural gas and fuel oil in industrial processes.

On the other hand, we recorded significant progress in 2025. The occurrence of fires in our forest areas was substantially reduced, resulting in an 84% decrease in emissions associated with these events.

Additionally, at our Bahia industrial site, we modernized pulp production with the implementation of a new cooking line. This technology, which became operational in early October 2025, reduced steam demand in the process, contributing to a 3% reduction in the plant’s total natural gas consumption.

We continue to implement initiatives to mitigate climate-related impacts and advance toward the decarbonization of our operations. Investments in testing electric trucks for pulp transportation, as well as in the generation and use of renewable energy, are examples further detailed in the Energy Efficiency chapter.

Target 2: 25MtCO₂e removed between 2020 and 2030

From 2020 to 2025, we removed 6 MtCO₂e. This figure reflects the carbon balance of our operations, i.e., the difference between total removals and anthropogenic emissions and biogenic LULUCF emissions (Land Use, Land-Use Change and Forestry).

The result represents progress compared to the cumulative total recorded up to 2025, reflecting the continued carbon removals associated with our forest operations.

However, climate-related factors contributed to not meeting the target set for 2025. Performance was mainly impacted by adverse weather conditions observed in recent years, characterized by higher temperatures and reduced rainfall, which led to water deficits and directly affected forest productivity. As the growth of eucalyptus forests is directly linked to the capacity to remove CO₂ from the atmosphere, these conditions constrained the expected removal potential over the period.

Bracell has an action plan to mitigate its climate-related impacts and increase the resilience of its operations in the face of climate change. Key initiatives include: monitoring carbon and water fluxes in planted eucalyptus forests; investments in forest research and development (R&D); integrated management of climate-related risks and impacts; and the development of climate zoning studies. Further details can be found in the chapters Monitoring Carbon and Water Fluxes in Planted Eucalyptus Forests and Climate Zoning Study.

Climate Action