SASB Supply Chain Management

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RR-PP-430a.1 Percentage of wood fiber sourced (1) from third-party certified forestlands and percentage to each standard and (2) meeting other fiber sourcing standards and percentage to each standard

We conduct our forestry operations in compliance with the Forestry Certification Endorsement Program (PEFC) Standards, support environmentally compliant, socially beneficial and economically feasible operations. With the recertification of our plantation areas in 2024, a new five-year cycle begins, during which we commit to following certification standard requirements and commissioning annual third-party audits of our operations.

All pulpwood resource is verified against certification standards. In São Paulo, 71% comes from certified Bracell-managed plantations, and 29% from controlled sources. In Bahia, 81% of pulpwood is certified, while 19% comes from controlled sources.

We monitor 100% of the pulpwood resource. All shipments undergo due diligence to identify environmental and social risks and prevent the use of pulpwood from controversial sources, in line with Bracell’s commitment to not sourcing pulpwood of questionable origin.

During the year, 83 business partners—49 in São Paulo and 34 in Bahia—supplied controlled-source pulpwood to the mills in both states. Document and field inspections are conducted to verify sustainable practices such as oil spill containment, proper waste disposal, non-use of burning for clearing, and compliance with protected area and legal reserve requirements. Additionally, our Bahia operation is certified to ISO 14001 – Environmental Management Systems.

All pulpwood purchased from the market that does not hold PEFC forest management certification undergoes due diligence to ensure it can be classified as controlled and made eligible for use in the production process. Bracell applies the material risk classification metrics established by the PEFC standard. If the risk of the material originating from a controversial source is deemed negligible, it may be classified as controlled and incorporated into our management system. To complete the process, documented information is collected, reviews are conducted, and procurement is managed based on the material’s risk classification.