Protecting forests and biodiversity is intrinsic to our business. In our forestry operations, we implement targeted strategies to protect native vegetation and biodiversity within the Caatinga, Cerrado, and Atlantic Forest biomes hosting our operations.

Our pulp is produced from certified eucalyptus plantations, responsibly cultivated in areas that alternate with native vegetation designated for conservation. This mosaic approach promotes ecological balance and helps protect local biodiversity.

As part of our Bracell 2030 commitments, we strive to amplify our positive impact about biodiversity and landscapes. In 2025, we exceeded our target to help conserve 230,000 hectares of native forests on public land, in collaboration with the state governments where we operate. During the year, we reached 301 thousand hectares across protected areas in the states of São Paulo, Bahia and Mato Grosso do Sul.

We also invest in research on biodiversity conservation. In 2025, we supported eight research projects on environmental preservation, meeting our annual target.

Another highlight was progress toward the protection of endemic and threatened species in Bracell’s priority protected areas. To achieve further progress on this commitment, we have continued implementing our action plan, which in 2025 included Lidar (Light Detection and Ranging) overflights, a remote sensing technique used to estimate biomass and assess forest succession stages, as well as field programs to inventory fauna species.

Based on collected data, we will assess Ecosystem Integrity using the Biodiversity Intactness Index (BII), combined with the Biomass Index. Concurrently, we have developed area-specific management proposals, taking into account each area’s characteristics and conservation objectives. In one area, restoration actions have already been implemented to promote structural and functional connectivity.

Our priority conservation areas are located in the municipalities of Oriente (SP), Santa Rita do Pardo (MS), and Esplanada (BA) We have also established benchmark areas for comparing habitat conditions in Gália (SP), Três Lagoas (MS), and Itanagra (BA).

Another target is to double the number of areas certified by environmental agencies for wildlife reintroduction into native forests under Bracell’s management, reaching a total of six by 2030. In 2025, we initiated the registration of two new wildlife release areas in the state of São Paulo, in the municipalities of Bauru and Botucatu. The area located in Bauru has already received official certification. As a result, we expanded our operations to five release areas: four in Bahia and the new area in São Paulo, the first under our management in the state. Since the beginning of the wildlife reintegration program in Bahia, we have carried out 2,039 releases, with 336 animals reintroduced in 2025.

Wildlife release areas are a key component of our conservation program, ensuring that animals are returned to suitable and monitored habitats. In Bahia, the Lontra Private Natural Heritage Reserve (RPPN), certified since 2021, remains our primary release area and received several species throughout 2025. Before reintroduction, animals undergo a careful screening and rehabilitation process and are monitored during their adaptation period.

Supplementing our technical monitoring activities, Bracell’s Fauna Sighting Program (Bicho à Vista)—an initiative dedicated to the conservation of wildlife and ecosystems—leverages technology to expand real-time recording of wild animal sightings by employees. Since implementation, the program has recorded more than 5 thousand entries. The data generated support forest management planning with a focus on protecting local fauna. A notable sighting occurred when a member of the harvesting team identified a nest of a threatened species; after consultation with an in-house biologist, the tree and surrounding trees were preserved—putting conservation over operations.

Bracell joins a pioneering biodiversity metrics initiative

In 2025, Bracell’s participation in the Nature Positive Initiative (NPI) pilot program for nature metrics marked an important step forward in our biodiversity agenda. Bracell is one of three Brazilian organizations participating in the global pilot, demonstrating the strength of our environmental strategy.

In collaboration with Conservation International Brazil (CI-Brasil), Bracell has been developing a project called “Integrated Landscape Management: geo-information for decision support in Bracell’s area of influence,” since 2023. Through the NPI, Bracell contributes experience in impact measurement and developing solutions in a megadiverse country such as Brazil.

The pilot aims to generate high-quality data to support informed decision-making by Bracell and other stakeholders in our operating regions. We collaborate with CI-Brasil and internal partners to assess the following indicators: Ecosystem extent and classification; Proportion of natural or semi-natural habitat; Landscape condition; Species extinction risk.

Bracell’s participation in the NPI pilot program for nature metrics marked an important step forward in our biodiversity agenda.  (Learn more under Biodiversity & Ecosystems).

Key biodiversity conservation practices

Biodiversity and ecosystems are material topics for Bracell and strategic from the perspective of our stakeholders. Our environmental conservation commitment is translated into a structured management approach based on operational policies, programs, and operational practices to protect and restore natural resources in the regions where we operate.

Bracell’s approach to managing material topics includes actions focused on:

• Preserving and restoring forests
• Protecting animal and plant species
• Preventing forest fires
• Zero deforestation

These management practices are embedded in Bracell’s Sustainability Policy and in the internal procedures of our Integrated Management System. Internal procedures provide guidelines to ensure our biodiversity efforts are effective, through sustainable forest management aligned with international forest certification standards, ensuring ecosystem conservation and regulatory compliance.

In our operations, we implement biome-specific strategies for the protection of native vegetation and biodiversity in the Caatinga, Cerrado, and Atlantic Forest biomes—ecosystems that host a wealth of biological diversity.

These practices are formalized in our Sustainability Policy, which guides our decisions and reinforces Bracell’s commitment to nature protection as an essential part of our business model.

Key practices to protect biodiversity and ecosystems:

• We do not convert areas of native forest into eucalyptus plantations. Our forestry operations are established exclusively in previously disturbed land—typically degraded or low-yield pastures, or land formerly used for other agricultural activities.
• Bracell has no operations in protected areas or legal reserves or on peatlands.
• We cultivate eucalyptus in forest mosaics, interspersing plantation areas with native vegetation designated for conservation (including Atlantic Forest, Cerrado, and Caatinga formations). This approach creates wildlife corridors that benefit biodiversity, ecosystem services, and natural landscapes.
• Our soil management practices designed to preserve physical, chemical, and biological soil properties through minimum tillage techniques.
• We retain post-harvest residue, such as bark, branches, and leaves. This reduces the need for chemical fertilizers, protects the soil from leaching, and increases organic matter content.
• We maintain natural pest control through Integrated Pest and Disease Management (IPDM). This leverages genetic resistance and natural predators to maintain ecological balance. Pesticides are used on a need-only basis
• We use official data from the Rural Environmental Register (CAR) to georeference all the farms we manage. In our geographic information system, we intersect these data with other data sets, such as those compiled in our protected areas and buffer zones. This process informs our operational procedures on each property, depending on the constraints and conditions set in management plans.
• Over 30% of land owned by our forestry operations is used for preservation and conservation of native vegetation. Land use planning on our farms follows criteria established by Brazil’s Forest Code (Law No. 12.651/2012).
• Our Degraded Land Restoration Program applies practices that include natural regeneration, native seedling planting, control of invasive exotic species, soil quality improvement and management of degradation factors such as erosion and cattle intrusion in restoration areas.

We manage four Private Natural Heritage Reserves (RPPNs) in the state of Bahia, totaling over 3,000 hectares of fully protected areas. One of them, the Lontra RPPN, is the largest private conservation site on the northern coast of Bahia. With 1,400 hectares, it is recognized by UNESCO as an outer barrier of the Atlantic Forest Biosphere Reserve.

Targets and commitments

In managing the material topic Biodiversity and Ecosystems, our Bracell 2030 roadmap establishes a set of targets within the Sustainable Landscapes and Biodiversity pillar. These targets include:

1. Preserve 230,000 hectares of native vegetation in public protected areas in the states of São Paulo, Bahia and Mato Grosso do Sul – exceeded in 2025
2. Protect natural habitats and endemic threatened species monitored in priority areas for biodiversity conservation
3. Support the reintroduction of animals into the wild, with a goal of having at least six certified release sites
4. Support at least ten research projects on biodiversity conservation per year

Details on each of these targets and our 2025 performance are available under Bracell 2030.

Impacts and risks

We have conducted a comprehensive assessments of potential and actual, positive and negative impacts related to the material topic Biodiversity and ecosystems, to inform strategies to mitigate them.

Impacts	Description	Details
Potential negative impacts	Loss of native fauna and flora species and populations.	No impacts have been observed so far during biodiversity monitoring, thanks to good forestry practices.
Actual positive impacts	Enhanced ecosystem services in forests managed as mosaics interspersed with native vegetation, enabling natural pest and disease control, supporting species and populations, and delivering societal benefits.	We recorded improvements in ecosystem services. The impact has broad reach and low intensity.
Actual negative impacts	Disturbance to fauna and flora due to noise and light pollution (vehicle traffic, machinery use, etc.).	The impact has broad reach and high intensity. We have external control mechanisms in place to prevent and minimize these risks.
Actual negative impacts	Changes in native vegetation, biodiversity, microclimate, landscape, and soil characteristics caused by our activities.	The impact has broad reach and high intensity. We have effective internal controls in place to mitigate these effects.
Actual negative impacts	Soil quality degradation caused by poor forest management practices.	The impact has broad reach and high intensity. We have effective internal controls in place to mitigate these effects.

One-For-One Commitment

An industry first in Brazil, our One-For-One Commitment, launched in 2022, establishes that for every 1 hectare of eucalyptus planted, Bracell will support the conservation of 1 hectare of native vegetation. This commitment includes the conservation of both areas managed by Bracell and public areas through collaborations with state governments in the areas where we operate. The target was not only achieved in 2025, but exceeded: Bracell currently conserves 1.07 hectares of protected areas for every hectare of eucalyptus planted.n total, this represents 301,000 hectares of public conservation areas across São Paulo, Mato Grosso do Sul and Bahia.

The increase from 186,000 hectares in 2024 to the current 301,000 resulted from the incorporation, in 2025, of the Várzeas do Rio Ivinhema State Park in Mato Grosso do Sul and Intervales State Park in São Paulo. This data was independently verified by a qualified third-party organization.

As this is a permanent commitment, even after surpassing our target, the total area designated for environmental conservation will continue to expand in order to maintain at least a one-to-one ratio, in tandem with the expansion of Bracell’s eucalyptus plantations, ensuring a balance between production and environmental preservation.

This initiative directly supports our broader goal of supporting the conservation of 230,000 hectares of native forests on public land by 2025 under the Sustainable Landscapes and Biodiversity pillar of Bracell 2030.

1.07 ha of native forests for every 1 ha of planted eucalyptus forest in 2025, exceeding our Bracell 2030 target.

301,000 hectares of public land designated for conservation as part of Bracell 2030’s Biodiversity and Landscapes targets.

Long-term state partnerships

The success of our One-For-One Commitment is an achievement shared by both Bracell and our partners. We have entered into ten-year agreements with the states of Mato Grosso do Sul and São Paulo to implement structured initiatives designed to ensure the long-term impact of the program.

• The agreement with the Government of Mato Grosso do Sul covers 189 thousand hectares across five state parks and one municipal park;
• In São Paulo, initiatives carried out with the São Paulo Forestry Foundation encompass 13 protected areas and more than 112 thousand hectares
• In Bahia, our collaboration with the State Environment Department (SEMA) is hosted at the Pituaçu Metropolitan Park in Salvador.

In our public partnerships with governments and other institutions, we provide services or materials to conservation sites including parks, ecological stations and wildlife refuges. Our partnerships are designed on the basis of criteria such as location, strategy and the conservation priorities of each party. This includes assessing areas within Bracell’s operational area of influence, proximity to conservation sites and their strategic relevance for biodiversity and natural resource conservation. Examples include Carlos Botelho State Park in São Paulo, which plays a key role in protecting threatened species, and Nascentes do Taquari State Park in Mato Grosso do Sul, which is important for water resource conservation.

This ensures we effectively support biodiversity protection, ecosystem conservation and ecosystem services, in addition to positive climate impacts through carbon sequestration and storage in standing forests.

1)        Sign technical cooperation agreement with the state

2)        Agree on host parks with the State Environment Department or equivalent authority

3)        Agree on priority initiatives with each park manager

4)        Implement initiatives

5)        Measure impact

Action areas:

Initiatives as part of our One-For-One Commitment are implemented in collaboration with local partners, based on a structured impact strategy focused on five main areas:

• Territorial protection and forest fire prevention
• Biodiversity restoration, monitoring, and management
• Capacity building and environmental education
• Stewardship programs, including investment in park infrastructure
• Technological innovation applied to conservation

Amcham ECO Award

Bracell received the 2025 ECO Award from the American Chamber of Commerce (Amcham) in recognition of our One-For-One Commitment. The ECO Award is one of Brazil’s most traditional accolades in corporate sustainability, with a 40-year history. Bracell was recognized in the Process Sustainability category, underscoring our One-For-One Commitment’s innovative approach and how it integrates environmental conservation and governance.

One-For-One Commitment Initiatives

Biodiversity restoration, monitoring, and management

Primate crossing construction	Installed a wildlife crossing at the Barreiro Rico Ecological Station in Anhembi (SP).	The crossing has restored connectivity between areas separated by a municipal road, enabling safe primate movement and reducing the risk of roadkill. Five endangered primate species benefit from the structure, including the southern muriqui—the largest primate in the Americas and a critically endangered species
Acoustic wildlife monitoring	Deployment of acoustic monitoring systems in Carlos Botelho State Park and Nascentes do Paranapanema (SP).	These systems gather vital data on environmental factors influencing wildlife patterns, including hydrological cycles. Using acoustic data to inform conservation in state parks is a first in wildlife management and protection practices in Brazil.
Controlling invasive species	Geospatial analysis using deep learning tools to support invasive tree species (Pinus spp.) control efforts at the Itapeva Ecological Station (SP).	Managing invasive species is crucial for protecting biodiversity, preserving local ecosystems, and preventing exotic species from harming native plant development.
Wildlife monitoring	Donation of equipment to support continuous monitoring in parks and ecological stations.	Camera traps for wildlife monitoring.

 

Land stewardship and forest fire prevention and response

Fire prevention	Built firebreaks and service roads to support the management of state parks and ecological reserves.	Created natural firebreaks to contain wildfires and minimize spread. Improved access to conservation areas through road building, facilitating both area management and rapid response to fire outbreaks.
Fire prevention	Donated firefighting tools such as motor pumps to trained fire response teams in parks and ecological stations.	Equipment includes tools like portable water pumps to control fire outbreaks.
Fire monitoring systems	Four conservation sites in São Paulo and one in Mato Grosso do Sul were added to Bracell’s regional wildfire monitoring system.	These areas are monitored via 360° cameras at Bracell’s forestry base and a 24/7 hotline that enables local communities to report fire outbreaks.
Fire monitoring systems	In 2025, Bracell established a partnership with Umgrauemeio, a climate tech startup that developed the Pantera platform. This initiative is an integral part of our One-For-One Commitment.	In 2025, Bracell established a partnership with Umgrauemeio, a climate tech startup that developed the Pantera platform. This initiative is part of our One-For-One Commitment. The artificial intelligence-based tool uses algorithms for real-time fire detection, risk analysis, rapid response and impact assessment and is already deployed in conservation sites in São Paulo and Mato Grosso do Sul. In 2026, it will be integrated with two monitoring towers at the Pantanal do Rio Negro State Park, constructed in 2025. Covering more than 76,000 hectares, the park spans the municipalities of Aquidauana and Corumbá, in the heart of the Pantanal, a wetland biome that is home to a rich diversity of local fauna. The park serves as a nursery for Pantanal fish during flood periods.

 

Environmental training and education

Firefighting	Trained fire responders in wildfire prevention and response	Provided capacity-building for staff at conservation sites in the states of São Paulo and Mato Grosso do Sul
Seed collection	Provided specialized training in native seed collection	Trained the team at Bauru Botanical Garden (SP) to support seed collection and seedling propagation in a flora conservation and restoration project

Stewardship

Environmental Education Center

Electrical infrastructure improvements at the education center of the Caetetus Ecological Station (SP)

The infrastructure improvements will increase the site’s capacity to host schools and community visitor groups, providing appropriate conditions for the delivery of environmental education activities.

Protected Areas under our One-For-One Commitment

State	Protected Area	Municipality	Year area included in the Commitment
São Paulo	Sebastião Aleixo Ecological Station	Bauru	2022
	Caetetus Ecological Station	Gália	2022
	Santa Bárbara Ecological Station	Águas de Santa Bárbara	2022
	Barreiro Rico Ecological Station	Anhembi	2022
	Aimorés Wildlife Refuge, Botanical Garden	Bauru	2022
	Carlos Botelho State Park	São Miguel Arcanjo	2022
	Nascentes do Paranapanema State Park	Capão Bonito	2022
	Avaré Ecological Station	Avaré	2023
	Paranapanema Ecological Station	Paranapanema	2023
	Angatuba Ecological Station	Angatuba	2023
	Itapeva Ecological Station	Itapeva	2023
	Intervales State Park	Guapiara	2025
	Marília Ecological Station	Marília	2025
Mato Grosso do Sul	Nascentes do Rio Taquari State Park	Alcinópolis	2023
	Prosa State Park	Campo Grande	2023
	Matas do Segredo State Park	Campo Grande	2023
	Pombo Municipal Natural Park	Três Lagoas	2023
	Pantanal do Rio Negro State Park	Aquidauana	2024
	Várzeas do Rio Ivinhema State Park	Naviraí	2025
Bahia	Pituaçu Metropolitan Park	Salvador	2023

Highlights from each front

The initiatives described below are part of Bracell’s forest management practices and, under our One-For-One Commitment, are extended to conservation sites. Actions such as territorial protection, forest fire prevention and response, biodiversity monitoring and environmental education enhance integration between responsible forestry and environmental conservation.

Territorial protection and forest fire prevention

Bracell maintains dedicated forest fire responder teams and supports the training of more than 100 members of conservation site teams, who have received technical instruction, including on first aid and handling specialized equipment.

To enhance the protection and monitoring of forest areas, we operate 47 monitoring towers equipped with high-resolution cameras, covering 76% of our areas in São Paulo, 65% in Bahia and 43% in Mato Grosso do Sul, encompassing both planted forests and conservation sites, in addition to a 24-hour channel to receive community reports of fire outbreaks. Drones and thermal cameras are also deployed to detect heat sources.

The alert system is supported by firefighting infrastructure, including pickup trucks equipped with rapid-response kits, water tanker trucks and helicopter support when required. During the dry season, internal and external fire breaks are kept especially clean, particularly those surrounding critical areas.

The average response time is 34 minutes, which helps keep the fire from spreading and minimizes damage to the affected forest. This rapid response capability, supported by early detection and fire control, is essential for protecting biodiversity and natural resources and for mitigating greenhouse gas emissions.

Biodiversity restoration, monitoring, and management

Bracell is implementing a new methodology to enhance monitoring of endemic and threatened species. Priority areas for application of the new technology are located in Bauru (SP), Brasilândia (MS) and Esplanada (BA), with baseline landscape areas established in Gália, Três Lagoas and Itanagra. Field campaigns were carried out in 2025. In 2026, the results will inform initiatives to improve these areas.

The new methodology supplements existing initiatives, including our Long-term Monitoring Program, which has been ongoing for more than 15 years in Bracell-managed areas, and the Bicho à Vista program, which supports wildlife monitoring through a mobile app for recording sightings. More than 5,000 sightings have been recorded across operations in São Paulo, Mato Grosso do Sul and Bahia, including threatened species.

Environmental education and training

• Environmental Education Center (NEA) Located in Inhambupe (BA), the center welcomes approximately 4,600 students annually from more than 100 schools, raising environmental awareness through hands-on experience and socio-environmental activities.
• Amigos da Floresta: In addition to firefighting activities, the program raises awareness among neighboring communities about the environmental impacts of wildfires, illegal logging of native wood and poaching. The program also provides fire responder training in partnership with the Fire Department.
• Native seedling donations: Bracell donates native species seedlings as part of environmental education initiatives and for the restoration of springs and riparian forests.
• Discovery Visits Program: hosted at the Bracell Social Center, a space open to the local community in Lençóis Paulista (SP), presenting Bracell’s forestry and mill operations, strategic professions within the sector and how our business model creates value for the Community, Customers, Country, Climate, and the Company. The program is open to 9^th-grade students from public and private schools in the region (learn more about the Bracell Social Center’s education initiatives under GRI 203-1).

Biodiversity initiatives and commitments

Bracell actively participates in voluntary initiatives that reflect our commitment to biodiversity conservation, ecosystem restoration, and sustainable landscape management across the areas where we operate. Key commitments include:

• Brazilian Business Council for Sustainable Development (CEBDS): as members of CEBDS, we have committed to integrating biodiversity as a strategic pillar supporting corporate sustainability. See our CEBDS-aligned targets here.
  We are also signatories of the Action for Nature Platform, an initiative that promotes transparency, accountability, and changes in the management of natural resources in the areas where companies operate. In this context, we participated in the case study “Nature Disclosure: Land Use Sector,” published in 2025, which applied the LEAP methodology of the Taskforce on Nature-related Financial Disclosure (TNFD) in partnership with 20 Brazilian companies.
  
• Bahia State Environmental and Water Resources Institute (Inema): partnership to develop biodiversity protection initiatives in the Atlantic Forest, aligned with the state’s conservation efforts.
• São Paulo Forest Foundation: we have signed a ten-year technical cooperation agreement with Fundação Florestal, a foundation linked to the São Paulo State Environmental Department, to support conservation and environmental protection initiatives in areas containing significant Atlantic Forest and Cerrado.
• Mato Grosso do Sul State Environmental Authority (Imasul): we signed a ten-year technical cooperation agreement with IMASUL for the conservation of native vegetation and the strengthening of environmental initiatives in the state.
• Empresa Amiga da Mata Atlântica: we joined an initiative led by the National Council of the Atlantic Forest Biosphere Reserve (RBMA) and were recognized as a contributor to the conservation and sustainable use of the biome.
• Atlantic Forest Restoration Pact: a voluntary initiative that aims to restore 15 million hectares by 2050. We are a member of its Steering Board and actively participate through reforestation projects.
• SOS Mata Atlântica: in collaboration with this NGO, we carried out restoration initiatives on 30 hectares of protected areas and legal reserves, supporting the development of wildlife corridors, biodiversity protection, and improved water quality.

Bracell joins a pioneering biodiversity metrics initiative

Bracell has joined the Nature Positive Initiative (NPI) pilot program, a global initiative developing standardized biodiversity metrics to guide businesses in their transition toward a net positive impact on nature—defined as a state in which environmental gains exceed losses.

Bracell is one of three Brazilian organizations selected for the global pilot, demonstrating the strength of our environmental strategy.

In 2023, Bracell partnered with Conservation International Brazil (CI-Brasil) on a project called “Integrated Landscape Management: geo-information for decision support in Bracell’s area of influence,” drawing on our experience in impact measurement and developing solutions in a megadiverse country such as Brazil.

The goal of the project was to generate high-quality data to support informed decision-making by Bracell and other stakeholders in the regions where we operate. In collaboration with CI-Brasil and internal teams, the following metrics were tracked over time:

• Ecosystem extent and classification
• Proportion of natural or semi-natural habitat
• Landscape condition
• Species extinction risk

Based on the outcomes of projects such as Bracell’s, the NPI will develop guidelines for public consultation, which will then be compiled into an international standard for corporate action on nature-related issues.

Biodiversity is a strategic topic for Bracell. In our Bracell 2030 long-term roadmap, we have set specific targets for Sustainable Landscapes and Biodiversity, aligned with the UN Sustainable Development Goals (SDGs) and the Kunming-Montreal Global Biodiversity Framework.

Risk management and compliance

Bracell strictly complies with environmental legislation and maintains up-to-date assessments of socio and environmental aspects and impacts. Prior to initiating operations, potential risks are identified and, during execution, periodic monitoring is conducted to measure impacts, inform strategic decisions and evaluate products against safety, health and environmental criteria.

Sustainable forest management

Our mosaic forest management model intersperses pulpwood eucalyptus areas with native vegetation areas designated for preservation and conservation. These practices are certified against PEFC standards and audited annually by accredited bodies. Raw material traceability is verified through chain-of-custody audits, ensuring that traceability controls extend to suppliers.

Initiatives to halt and reverse biodiversity loss

We pursue zero deforestation through measures to prevent and respond to fires, poaching and timber theft. We maintain ecological restoration programs, which include planting native species in protected areas and legal reserves. Creating wildlife corridors improves ecosystem connectivity and supports the conservation of fauna and flora.

Biodiversity monitoring and continuous improvement

Periodic biodiversity monitoring supports the assessment of species diversity in operational areas. These data support critical evaluations that guide improvements in management processes, impact reduction and the strengthening of Bracell’s contribution to biodiversity conservation.

Engagement with communities and scientific research

Bracell’s initiatives extend beyond forestry operations, encompassing environmental education programs with communities and support for scientific research focused on conservation in the regions where it operates.

Transparency and Traceability

In response to international requirements, particularly the European Union Deforestation Regulation (EUDR), Bracell has implemented a robust internal transparency system, ensuring full visibility across the value chain, from raw material sourcing to final product. The system enables automated and geographically precise verification of source plantations and due diligence of forests under management based on the invoice code.

PEFC EUDR Certification

In 2025, Bracell became the first Brazilian company to obtain PEFC certification under European regulations, confirming that our products meet the legal, environmental, and traceability requirements established by the European Union. Bracell became the first Brazilian organization to achieve this recognition under the European regulation module.

Responsible practices

Our policies and initiatives apply both to internal operations and to commercial relationships, including direct suppliers. These policies ensure responsible practices throughout the value chain and are structured around the following pillars:

1. Forest planning

We conduct integrated land use and forest resource planning, considering environmental, social and economic variables. Key practices include:

• Responsible planting: eucalyptus forests are established exclusively in areas previously used for agriculture or pasture, without conversion of native vegetation, in accordance with corporate policies.
• Land monitoring: ongoing land use assessments supported by satellite imagery, drones and field inspections.
• Restoration of degraded land: ecological restoration programs aimed at reestablishing native vegetation using different restoration techniques depending on the characteristics of each fragment.
• Forest Management System (FMS): integrates processes across operations, enhancing control, operational efficiency and continuous improvement of management practices.

2. Monitoring and control

We maintain a continuous monitoring system for forestry activities to ensure compliance with environmental regulations and internal sustainability guidelines.

• Biodiversity monitoring: regular monitoring of fauna (annually in Bahia and every three years in São Paulo) and flora (every two years in Bahia and every five years in São Paulo), to detect any changes caused by forest management
• Protection of sensitive areas: assessment of potential impacts on adjacent native vegetation and fragile soils susceptible to erosion, supported by remote sensing technologies and field verification.
• Water quality: physical-chemical analyses conducted in representative sites to identify changes related to forestry operations and inform preventive or corrective actions.

3. Sustainable forest management

Our forestry practices align with internationally recognized standards to ensure the preservation of natural resources and ecosystems.

• Biological control: preventing the introduction of invasive species, pests and pathogens, and maintaining ecological processes within their natural range of variation.
• Control of exotic species: management of invasive exotic vegetation (pine, eucalyptus and acacia) that may compromise ecological succession in areas designated for native conservation.

4. Certification

• Our forestry operations are certified by independent entities such as PEFC, ensuring compliance with international standards on responsible management and traceability of forest products across the value chain.

In managing the material topic Biodiversity and Ecosystems, our Bracell 2030 roadmap establishes a set of targets within the Sustainable Landscapes and Biodiversity pillar. The following key targets have been set:

• Conserve 230,000 hectares of native forests located in public protected areas in the states of São Paulo, Bahia and Mato Grosso do Sul—target exceeded in 2025, in execution since 2022;
• Protect endemic and threatened species present in priority conservation areas under Bracell management—ecosystem Integrity will be assessed using the Biodiversity Intactness Index (BII), combined with the Biomass Index;
• Support wildlife reintroduction, with a goal to maintain at least six areas certified for wildlife release;
• Sponsor research on biodiversity conservation, supporting at least ten research projects related to the topic.

Bracell applies the mitigation hierarchy to prevent, minimize, restore and offset biodiversity impacts through structured policies, programs and practices.

Measures to prevent negative impacts on biodiversity:

• Zero deforestation policy, ensuring no native vegetation is converted into eucalyptus plantations
• Raw material traceability, ensuring pulpwood is traceable to socially and environmentally compliant sources
• Forest fire prevention, supported by monitoring systems, dedicated equipment and specialized teams
• Prevention of poaching and timber theft
• Environmental risk assessments conducted prior to operations
• Assessment and mapping of land, water bodies and priority conservation sites to inform forest planning
• Sustainable forest management and biological pest control
• Soil preparation in accordance with technical recommendations to minimize erosion and compaction
• Environmental training and education for internal teams, contractors and communities
• Equipment and processes designed to reduce emissions, particulates and pollutants
• Control of invasive exotic species (such as eucalyptus and pine) to prevent unintended expansion.

Measures to restore and rehabilitate affected ecosystems:

• Ecological restoration programs in degraded areas
• Use of restoration manuals and protocols to raise awareness among forestry partners
• Maintaining certified wildlife release areas to support rehabilitation and reintroduction into natural habitats
• Monitoring fauna and flora to assess restoration effectiveness and inform corrective actions
• Engagement with stakeholders, including communities, environmental authorities, researchers and conservation partners
• Bicho à Vista wildlife siding program

Offset measures for residual negative impacts:

• Creating and maintaining state-level Private Natural Heritage Reserves (RPPNs) in Bahia, protecting priority ecosystems
• Restoring degraded land, including planting native species and soil interventions using a variety of ecological restoration methods
• Formal wildlife salvaging procedures and referral to specialized rehabilitation centers

Transformative measures and additional conservation actions:

• Expanding landscape initiatives under our One-For-One Commitment, independently assured annually by a specialized third party
• Ongoing conservation in natural heritage reserves, High Conservation Value Areas (HCVs) and forest mosaics—verified annually through PEFC forest management audits
• Support for biodiversity research, institutions and government-led conservation initiatives

Biodiversity and ecosystems are material topics for Bracell across all regions where we operate. Our operations maintain structured management systems based on corporate policies, programs and operational practices designed to protect and restore natural resources

Our approach includes:

• Preserving and restoring forests
• Protecting animal and plant species
• Preventing forest fires
• Zero deforestation
• Practices aligned with internationally recognized forest management standards and certifications, all integrated into our Integrated Management System.

We operate across three biomes—Caatinga, Cerrado and Atlantic Forest—with tailored conservation strategies to protect native vegetation and biodiversity. Related guidelines are formalized in Bracell’s Sustainability Policy, which guides decision-making and reinforces our commitment to ecosystem protection as a core component of our business model.

Bracell uses integrated management practices that both protect biodiversity and support climate objectives, reducing trade-offs between environmental priorities. Key actions include:

• Plantations established exclusively on previously disturbed land, contributing to carbon removal through tree growth and soil conservation practices
• Forest mosaics that intersperse eucalyptus plantations with protected native vegetation areas, enhancing wildlife connectivity and ecosystem services
• Minimum tillage practices that reduce soil disturbance and associated emissions
• Retaining post-harvest residues to reduce fertilizer use, maintain soil carbon and increase organic matter
• Integrated Pest and Disease Management (IPDM), prioritizing biological control and reducing reliance on chemical inputs
• Conservation of protected areas and legal reserves, with no operations in sensitive areas
• Use of the Brazilian government’s Rural Environmental Registry (CAR) and geospatial systems to align operations with the Brazilian Forest Code and other applicable regulations
• Allocation of more than 30% of land to preservation and conservation, contributing to carbon storage and biodiversity maintenance
• Land use planning on our farms follows criteria established by Brazil’s Forest Code (Law No. 12.651/2012)
• Our Degraded Area Restoration Program aims to reestablish native vegetation in affected areas.

Bracell takes an integrated approach to ensure that biodiversity management programs generate tangible benefits for ecosystems and stakeholders. This includes:

• Applying prior environmental impact assessments and deploying appropriate technology to prevent impacts
• Creating and conserving protected areas, helping to preserve ecosystem services essential to local communities
• Implementing offsets such as habitat restoration when impacts cannot be avoided
• Continuous environmental monitoring programs, ensuring long-term assessment of fauna, flora, water resources and forest dynamics
• Transparency and collaboration with the scientific community, including data sharing and support for research
• Preventive action to ensure that no significant impacts occur on biodiversity, building the trust of communities, environmental agencies, and partners.

Currently, Bracell has approximately 569 hectares under restoration in São Paulo and we maintain a continuous restoration program in Bahia covering 3,000 hectares. We are also a member of the Atlantic Forest Restoration Pact and have restored 30 hectares in collaboration with SOS Mata Atlântica.

Bracell is also a member of the Restoration Pact and has restored 30 hectares in partnership with SOS Mata Atlântica. In Bahia, we maintain four Private Natural Heritage Reserves (RPPNs) that are critical to biodiversity conservation in the state’s northern coastal region, and we manage four wildlife release areas certified by the state environmental regulator, INEMA, where animals rehabilitated by the national environmental regulator’s (IABAMA)  Wildlife Screening Center (CETAS-BA) are reintroduced into the wild.

Ecological restoration guide

We launched an illustrated guide with practical tips on how to restore degraded areas and promote ecological restoration in São Paulo and Mato Grosso do Sul, developed in partnership with Casa da Floresta.

You can download the guide on the Bracell website.

Ecological Restoration Guide – São Paulo

Ecological Restoration Guide – Mato Grosso do Sul

Areas protected or restored

Area	Status	Region	Size (km2)	Status
RPPN Lontra	Protected	Bahia	13,77	Under long-term monitoring
Falcão	Protected	Bahia	9,424	Under long-term monitoring
Lua Alta	Protected	Bahia	6,094	Under long-term monitoring
Pedra do São José II	Protected	Bahia	2,322	Under long-term monitoring
São José 2	Restored	Bahia	0,013	In progress
Pedra do Sobrado 1	Restored	Bahia	0,004	In progress
Pedra do Sobrado 2	Restored	Bahia	0,003	In progress
Machado	Restored	Bahia	0,016	In progress
Pedra Furada	Restored	Bahia	0,074	In progress
Sergipe	Restored	Bahia	0,005	In progress
Saudade	Restored	Bahia	0,018	In progress
São José 1	Restored	Bahia	0,01	In progress
Baixa da Raposa 1	Restored	Bahia	0,03	In progress
Baixa da Raposa 2	Restored	Bahia	0,001	In progress
Águas Claras	Restored	Bahia	0,02	In progress
Piranji	Restored	Bahia	0,1	In progress
Lagoa de Baixo	Restored	Bahia	0,012	In progress
Lontra	Restored	Bahia	0,002	In progress
Anjinho	Restored	Bahia	0,048	In progress
Santo André	Restored	Bahia	0,001	In progress
Agropastoril	Restored	Bahia	0,007	In progress
Pedra do Sobrado 3	Restored	Bahia	0,006	In progress
São José 5 (Coração de Leão)	Restored	Bahia	0,021	In progress
Total – Bahia			32,001
Casa da Rocha	Restored	São Paulo	0,24	In progress
Nova América II	Restored	São Paulo	0,001	In progress
Recreio	Restored	São Paulo	0,335	In progress
Santa Izabel	Restored	São Paulo	0,02	In progress
São Benedito IV	Restored	São Paulo	0,24	In progress
Sossego II	Restored	São Paulo	0,52	In progress
Paraíso VII	Restored	São Paulo	0,16	In progress
Santa Mariana II	Restored	São Paulo	0,0001	In progress
Nova América II	Restored	São Paulo	0,29	In progress
Córrego do Campo	Restored	São Paulo	0,23	In progress
Monte Líbano I	Restored	São Paulo	1,09	Under ongoing long-term monitoring
Monte Líbano II	Restored	São Paulo	0,35	Under ongoing long-term monitoring
Santa Izabel	Restored	São Paulo	0,01	Under ongoing long-term monitoring
Dona Lourdes	Restored	São Paulo	0,01	Under ongoing long-term monitoring
Mamedina	Restored	São Paulo	0,03	Under ongoing long-term monitoring
São Luiz V Vera Cruz	Restored	São Paulo	0,24	Under ongoing long-term monitoring
Arataba	Restored	São Paulo	0,05	Under ongoing long-term monitoring
Regina	Restored	São Paulo	0,03	Under ongoing long-term monitoring
São Benedito IV	Restored	São Paulo	0,02	Under ongoing long-term monitoring
Selva	Restored	São Paulo	0,04	Under ongoing long-term monitoring
Corvo Branco	Restored	São Paulo	0,004	Under ongoing long-term monitoring
Revolta	Restored	São Paulo	0,04	Under ongoing long-term monitoring
Santa Branca	Restored	São Paulo	0,01	Under ongoing long-term monitoring
Santa Amélia	Under restoration	São Paulo	0,13	In progress
Santo Antônio IX	Under restoration	São Paulo	0,02	In progress
Santa Hercídia	Under restoration	São Paulo	0,0007	In progress
São Manoel IV	Under restoration	São Paulo	0,08	In progress
São Francisco III	Under restoration	São Paulo	0,022	In progress
Santa Mônica	Under restoration	São Paulo	0,001	In progress
Limeira	Under restoration	São Paulo	0,4	In progress
Planalto	Under restoration	São Paulo	0,09	In progress
Regina	Under restoration	São Paulo	0,37	In progress
Jatobá III	Under restoration	São Paulo	0,013	In progress
SOF	Under restoration	São Paulo	0,11	In progress
Mamedina	Under restoration	São Paulo	0,08	In progress
Shangrilá	Under restoration	São Paulo	0,046	In progress
Total – São Paulo			5,323

 

Partner-protected or restored areas

Area	Status	Region	Size (km2)	Status	Status
Projeto Riacho Mole	SOS Mata Atlântica	Restored	Bahia	0,3	In progress
Projeto Riacho Mole	SOS Mata Atlântica	Restored	Bahia	0,2	In progress
Santa Rita II, Santa Cruz and Nova América II	SOS Mata Atlântica	Restored	São Paulo	0,308	In progress
Shangrilá	Bracell and Jardim Botânico	Restored	São Paulo	0,061	In progress

 

Reason for omission: Not applicable.

Reason:

The principle of Access and Benefit-Sharing (ABS) is based on the Convention on Biological Diversity and the Nagoya Protocol. This principle establishes that benefits arising from the use of genetic resources (samples of plants, animals or microorganisms) and associated traditional knowledge (knowledge held by indigenous peoples and local communities regarding the use of these resources) must be shared fairly with the countries and communities providing them. The goal is to ensure that the economic use of biodiversity contributes to its conservation and to the social development of those who protect it.

The principle of access and benefit-sharing does not apply to Bracell’s business model for the following reasons:

• Exotic and commercial species: Our forestry operations are based on the cultivation of eucalyptus, an exotic species in Brazil, introduced exclusively for commercial purposes.
• Controlled genetic material: Seedling production is carried out in Bracell’s own nurseries using commercially owned genetic material that has been previously developed, registered and controlled, without reliance on access to new wild natural resources.
• Land use: Our forestry operations are established only on previously disturbed land, without the use of genetic resources present in ecosystems under our management.

We recognize that our operations generate direct and indirect impacts on biodiversity, resulting both from forestry activities and associated infrastructure. Most of these impacts are temporary and reversible. However, we also monitor risks that may result in long-term or indefinite effects—such as biodiversity loss or atmospheric changes—if not properly managed.

These impacts are managed as part of our Integrated Management System and are formalized in an Environmental Aspects and Impacts Matrix (AIA), where all potential and actual impacts are identified, assessed and monitored.

To ensure compliance with our commitments, Bracell conduct due diligence on 100% of the pulpwood supplied by vendors for mill operations. This assessment ensures compliance with internal policies, applicable legislation, international regulations—including the EU Deforestation Regulation (EUDR)—and PEFC forest management standards (NBR 14789:2024), PEFC Chain of Custody (ST 2002:2020) and PEFC EUDR – SDD (ST 2002-1:2024)).

Whenever an impact is identified, we act immediately to correct, mitigate or prevent its recurrence, in alignment with relevant stakeholders and our commitment to environmental conservation. In addition to corrective and mitigation measures, we conduct training, communication and engagement programs with employees, communities and other stakeholders, reinforcing preventive practices.

The construction and operation of infrastructure—such as industrial, transportation, and forestry operations—can lead to environmental impacts of varying degrees of significance.

Impacts	Direct/Indirect	Details
Habitat loss	Direct	Caused by operations and mechanized activities, worker commuting, road construction and maintenance, reopening of roads over water bodies, harvesting, transport of machinery and timber, soil preparation, and forestry operations. Noise from these activities can drive away wildlife (significance level: medium).
Erosion and silting in nearby water bodies	Direct	Resulting from soil shear caused by mechanized operations and supporting activities, which may contribute to soil erosion (significance level: medium).
Wildlife roadkill	Direct	Caused by the movement of vehicles and machinery on service roads, potentially leading to biodiversity loss (significance level: low).
Climate Change	Direct	Due to greenhouse gas (GHG) emissions from operations such as pulpwood haulage, harvesting, refueling, and aerial pesticide application (significance level: low to medium).

 

Pollution is one of the main environmental challenges of operations, affecting water, air, soil, and wildlife.

Impacts	Direct/Indirect	Details
Water pollution	Direct	Caused by the use of pesticides and fertilizers in nurseries, which may generate effluents and affect water quality (significance level: low).
Air pollution	Direct	Generated by dust from pulpwood haulage and mechanized operations, affecting air quality (significance level: medium).
Soil pollution	Direct	Caused by waste from maintenance work, washing of field machinery containing chemical residues, and improper waste disposal (significance level: low).
Plastic pollution	Direct	Arising from the generation and improper disposal of waste from operational and administrative activities (significance level: low).
Noise pollution	Direct	Noise generated by operations and transport can drive away wildlife (significance level: medium).
Chemical pollution	Direct	Use of pesticides and insecticides can cause ground and airborne drift, affecting plants, fauna, and soil biology (significance level: low).

 

Reduction of species

Impacts	Direct/Indirect	Details
Loss of biodiversity	Direct	All activities mapped in our Environmental Impact Assessment Matrix (AIA) can affect biodiversity, with the extent ranging from site-specific to local and regional. The likelihood of occurrence and the level of significance are classified as low, medium or high. All impacts are addressed with mitigation and awareness measures.

Bracell conducts ongoing assessments to identify, prevent and mitigate the impacts of our operations on biodiversity, considering both impacts that have already occurred and been mitigated, as well as potential impacts. This process also includes evaluating suppliers’ products and services, ensuring broad, integrated environmental management aligned with industry best practices.

We monitor species dynamics through periodic environmental studies and use an environmental aspect and impact matrix to assess risks and opportunities. Whenever an impact is detected, we act immediately to remediate or mitigate it in collaboration with stakeholders, as part of our commitment to environmental conservation and sustainable operations.

Assessments of biodiversity risks cover all areas where forest management operations take place, identifying potential effects and establishing appropriate preventive, mitigation and corrective measures.

We identify and monitor High Conservation Value (HCV) areas through assessments on biological, ecological, social or cultural attributes. With the expansion of our forestry operations, we are reviewing potential HCV areas based on criteria established by Proforest, a non-profit organization.

Bracell conducts operations adjacent to areas of high conservation value and Private Natural Heritage Reserves (RPPNs) in Bahia. Our risk management practices include continuous monitoring of fauna and flora, safeguarding ecosystem integrity, and maintaining essential environmental services.

HCV areas in the state of São Paulo

• Fazenda Nova América, in Cabrália Paulista (117.74 hectares – HCVA 1)
• Fazenda Rio Verde, in Bauru (190.40 hectares – HCVA 2)

HCV areas and RPPNs in the state of Bahia

• Fazenda Santo André, in Aramari (229.83 hectares – HCVs 1 and 3):
• Fazenda Jaboticaba, in Jandaíra (197.05 hectares – HCVs 1 and 3):
• Fazenda Raiz, in Água Fria (675.77 hectares – HCVs 1 and 3):
• Lontra RPPN, in the municipalities of Itanagra and Entre Rios (1,378.16 hectares – HCVs 1, 2 and 3)
• Falcão RPPN, in Esplanada (9,424 hectares)
• Lua Alta RPPN, in Conde (6,094 hectares)
• Pedra do São José II RPPN, in Esplanada (2,322 hectares)

All pulpwood sourcing undergoes due diligence to identify environmental and social risks and avoid purchasing pulpwood from controversial sources. Bracell performs document reviews and field inspections to ensure compliance with sustainable practices, including:

• Oil spill control and containment
• Appropriate waste disposal
• Prohibition of burning for land clearing
• Compliant conservation of protected areas and legal reserves
• Presence of wildlife

In cases of non-compliance, we establish a corrective action plan and, if the deviation is not cured, the supplier is blocked until adjustments are made. All suppliers sign contracts committing to comply with applicable legal and environmental requirements.

Pulpwood traceability is ensured by our Forest Management System (FMS), which tracks all farms and, including cultivation, harvesting and pulpwood haulage. Through the system, 100% of the pulpwood using our production process is traceable at the field level. All controlled pulpwood is also assessed on land-use conversion timing, following Brazil’s Forest Code (Law No. 12.651/2012), which sets July 2008 as the threshold date.

In 2025, 21% of the pulpwood used in São Paulo came from controlled sources and 79% from Bracell’s certified operations. In Bahia, 10% came from controlled sources and 90% from certified sources. A total of 83 commercial partners supplied controlled pulpwood to Bracell’s mills in São Paulo and Bahia, all audited by our team.

Bracell maintains a strict policy of not sourcing pulpwood from controversial suppliers, as part of our commitment to sustainability, traceability and biodiversity conservation.

No significant biodiversity impacts related to pollutants were identified. Our mill operations use state-of-the-art technology and maximize renewable energy use. In forestry operations, we implement procedures to ensure proper waste management, preventive water-spraying of rural roads to reduce dust emissions during pulpwood haulage, and the responsible and controlled application of chemical inputs in accordance with protocols defined by the Research and Development department. These practices are designed to minimize pollutant emissions and mitigate potential impacts on biodiversity.

Our mills are certified under ISO 14001, ensuring alignment with internationally recognized environmental management standards, while our forestry operations follow PEFC criteria, enhancing process transparency and credibility. In addition, Bracell maintains continuous monitoring programs for fauna and flora in our areas of influence, along with forest restoration and ecosystem conservation initiatives.

We do not convert areas of native forest into eucalyptus plantations. All forestry activities are conducted exclusively on previously disturbed land, predominantly low-productivity pastures, degraded land or areas previously used for other agricultural crops. We do not operate in protected areas, legal reserves or peat soils, ensuring the protection of sensitive ecosystems.

A specialized geoprocessing and remote sensing team is responsible for evaluating and demarcating areas in accordance with the Brazilian Forest Code and for systematically monitoring forestry projects. This is done using satellite imagery and drones, combined with field inspections conducted by environmental, asset protection, microplanning and quality teams.

The data are consolidated within a Forest Management System (SGF) that integrates processes across operations, enhancing control, operational efficiency and continuous improvement of management practices.

Prior to any pulpwood sourcing, we conduct a land-use conversion timing assessment in accordance with the Brazilian Forest Code (Law No. 12.651/2012), which establishes July 2008 as the cutoff date. In addition—and beyond legal requirements—we also apply a 1994 cut-off date in line with international forest certification best practices. This ensures that we do not source raw materials from controversial origins.

We have maintained a zero deforestation commitment since the beginning of our operations, a core pillar of our Sustainability Policy and responsible forest management approach.

We recognize that our operations generate direct and indirect impacts on biodiversity, resulting both from forestry activities and associated infrastructure. Most of these impacts are temporary and reversible. However, we also monitor risks of long-term or potentially irreversible effects, such as biodiversity loss or atmospheric changes.

Bracell’s production strategy is grounded in strict control of production assets and preserving the integrity of native ecosystems:

• Exotic and commercial species: Our forestry operations are based on the cultivation of eucalyptus, an exotic species in Brazil, introduced exclusively for commercial purposes.
• Controlled genetic material: Seedling production is carried out in Bracell’s own nurseries using commercially owned genetic material that has been previously developed, registered and controlled, without reliance on access to new wild natural resources.
• Land use: Our forestry operations are established only on previously disturbed land, without the use of genetic resources present in ecosystems under our management.

The processes to manage these impacts are fully Inc. into our Integrated Management System, with all impacts documented and monitored through an Environmental Aspects and Impacts Matrix (AIA). Whenever an impact is identified, we act immediately to remediate or mitigate it or prevent recurrence, in cooperation with stakeholders, as part of our commitment to environmental conservation and sustainable operations.

In addition to corrective and mitigation measures, we conduct ongoing training, communication and engagement programs with employees, suppliers and other stakeholders, enhancing prevention and ensuring we follow best social and environmental practices.

In 2023, we rolled out a project developed jointly with nongovernmental organization Conservation International Brazil (CI-Brazil), called “Integrated Landscape Management: geo-information for decision support in Bracell’s area of influence.” The project compiles and discloses a set of metrics designed to support landscape management decisions, enabling analyses at municipal, watershed and micro-watershed levels, as well as within protected areas, structured around three main pillars: conservation, restoration and land use. Key metrics include connectivity, native vegetation remnants and water security.

Rio Batalha Protected Area Technical Chamber

In 2025, the Restoration Technical Chamber of the Rio Batalha—an important source of local public water supply—initiated an assessment covering five priority micro-watersheds in the state of São Paulo. Linked to the Advisory Council of the Rio Batalha Protected Area, the initiative aims to identify and assess critical areas to support the development of strategic recommendations to improve local environmental conditions.

Bracell, as a member of both the Advisory Council and the Technical Chamber, supported the project through funding provided as part of our commitment to sustainable development. The project was conducted by the research group of São Paulo State University (UNESP), through the Foundation for Agricultural and Forestry Studies and Research (FEPAF).Based on the technical findings, the Technical Chamber will develop an action plan with strategic recommendations to restore environmental conditions in the priority micro-watersheds.

We recognize that our operations may influence terrestrial ecosystems, particularly through planting, harvesting, and forestry logistics activities. Under the ENCORE (Exploring Natural Capital Opportunities, Risks and Exposure) framework, forestry operations are classified as having a very high impact on terrestrial ecosystems.

Our forestry properties are distributed across different Brazilian biomes, and different ecological settings. Approximately 67.9% of our properties are located within the Atlantic Forest biome, 31.7% in the Cerrado and 0.3% in the Caatinga. Operating across different biomes requires management practices tailored to the environmental characteristics of each region, ensuring that biodiversity and ecosystem conservation considerations are considered in our operations.

Bracell has adopted a sustainable forest management model grounded in integrated landscape assessments. Our plantation footprint is continuously assessed at the watershed level to ensure that the spatial distribution of managed eucalyptus forests is consistent with each area’s environmental carrying capacity. This approach is supplemented by a robust hydrological monitoring program, which uses weirs installed in both native and planted forests to track watershed hydrological responses.

Water withdrawal for irrigation is conducted exclusively at duly authorized abstraction points, ensuring compliance with environmental regulations and responsible resource use. Strict efficiency and control protocols are applied during irrigation operations to optimize water use and prevent waste. These practices reflect our commitment to conserving natural resources and ensuring the sustainability of our forestry operations.

We maintain fauna and flora monitoring programs that serve as environmental management tools. These programs enable us to monitor the presence and diversity of species, assess ecological integrity, and continuously improve forest management practices.

Regular fauna and flora monitoring is conducted across our operational sites.

• Fauna: annually in Bahia and every three years in São Paulo.
• Flora: every two years in Bahia and every five years in São Paulo.

Species identified as part of the monitoring program are classified using official conservation lists, applicable legislation, and scientific references to assess criteria such as threat status, rarity, endemism, economic relevance, and migration patterns.

Species are classified on extinction risk based on the following international, national and state-level frameworks:

• IUCN Red List (International Union for Conservation of Nature)
• MMA Ordinance No. 148/2022
• National List of Endangered Wildlife Species (MMA Ordinance No. 444/2014)
• Official National List of Endangered Flora Species (MMA Ordinance No. 443/2014)
• List of Threatened Brazilian Flora Species (MMA Ordinance No. 298/2019)
• National List of Invasive Alien Species (MMA Ordinance No. 2.546/2020)

To date, monitoring results have not indicated significant degradation trends attributable to forest management activities, suggesting that the management measures we apply are helping to maintain the ecological integrity of monitored areas.

IUCN Red List species and national conservation list species with habitats in areas affected by operations

Region	Extinction risk level	2023		2024		2025
		IUCN	ICMBio	IUCN	ICMBio	IUCN	ICMBio
São Paulo	Critically endangered	0	0	0	0	0	0
São Paulo	Endangered	0	5	10	5	10	5
São Paulo	Vulnerable	9	8	9	8	9	8
São Paulo	Near threatened	12	0	12	0	12	0
São Paulo	Least concern	625	0	643	0	643	0
Bahia	Critically endangered	1	2	1	2	3	3
Bahia	Endangered	6	10	5	9	9	9
Bahia	Vulnerable	11	13	13	18	26	26
Bahia	Near threatened	7	2	7	11	11	11
Bahia	Least concern *	252	250	1.306	1.080	1.948	1.948

Note: the number of species in this category increased due to a revision of the database.

At Bracell, we recognize that our activities directly and indirectly affect a range of ecosystem services and that their beneficiaries—including society, wildlife and the Company—and that these may experience both positive and negative effects. To ensure that these services are maintained and, where possible, enhanced, we implement sustainable forest management practices, environmental conservation measures, and continuous monitoring.

With the support of a specialized consultancy, Bracell has identified three priority ecosystem services, presented in the table below.

Ecosystem services	Beneficiaries affected or potentially affected by the organization’s activities
Regulation and maintenance services – Climate regulation	Society, wildlife and the company
Forests are terrestrial ecosystems with the largest carbon stocks in the form of biomass and have a high capacity to remove CO₂ from the atmosphere (IPCC, 2021). These characteristics make them a key ecosystem service for global climate regulation. In the context of climate change mitigation, forest conservation represents an avoided emissions strategy, while reforestation and forest restoration serve as important mechanisms for carbon sequestration (carbon sinks).
Regulation and maintenance services – Biodiversity	Society, fauna, flora and the company
Biodiversity ecosystem services relate to the capacity of native vegetation areas to conserve fauna and flora, maintain ecological balance, and provide habitat connectivity through wildlife corridors. These environments support ecosystem functioning and enhance the landscape’s environmental resilience.
Regulation and maintenance services – Soils	Society, ecosystems and the company
Soil erosion is a natural process but becomes significantly intensified when ecosystems are converted for economic use, such as agriculture or urban zones. Conserved natural ecosystems and sound soil management practices in our forestry areas maintain erosion at minimal levels, preserving soil nutrients and physical structure. When erosion occurs in situ, soil fertility essential for agricultural production is lost; when sediment is entrained, significant impacts result, such as increased water turbidity, higher levels of suspended solids and siltation of water bodies, compromising their natural dynamics and water quality.