We recognize that climate change is one of the most pressing global challenges of our time, and we understand the importance of taking proactive and responsible action in response.

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, through our forestry operations, and implementing initiatives around climate adaptation (read more at Climate Action).

Bracell at COP30

During COP30, held in November 2025 in Belém, Pará, Bracell’s Vice President of Sustainability, Márcio Nappo, took part in three official panels in the Blue Zone, organized by national and international institutions, with discussions on the bioeconomy, decarbonization and nature-positive strategies:

“Benefits of Forest-Based Products” – CNA and Ibá

Organized by the Brazilian Confederation of Agriculture and Livestock (CNA) in partnership with the Brazilian Tree Industry (Ibá), this panel highlighted the potential of specialty dissolving pulp and its applications in the pharmaceutical, cosmetics and food industries as well as in viscose production.

“The Role of Removals from Nature-Based Solutions in Decarbonizing the Economy” – CNI

Hosted by the National Industry Confederation (CNI), the discussion addressed the role of forests in carbon capture and storage and Bracell’s commitment to remove 25 million tCO₂e from the atmosphere by 2030.

“Cultivating a Nature-Positive Future: Metrics and Momentum in Agriculture and Forestry” – NPI

Organized by the Nature Positive Initiative (NPI), this panel explored new metrics to measure the state of nature and Bracell’s engagement as a pilot organization in Brazil to test these metrics.

Climate Governance

Bracell’s governance framework for the climate transition and adaptation is structured at three levels to ensure that climate matters are fully integrated into business strategy.

At the strategic level, the Sustainability Steering Committee oversees climate targets and carbon reduction and adaptation projects, sets priorities and ensures alignment with corporate strategy, risk management and long-term value creation.

At the tactical level, the Sustainability function connects strategy to execution by integrating climate data, tracking climate targets and coordinating mitigation and resilience initiatives.

At the operational level, Technical Working Groups implement climate guidelines and develop and track initiatives related to emissions, removals and energy.

Climate Commitment – 2030 Targets

CLIMATE ACTION

No	2030 Target	2020 Baseline	2030 Target	2025 Target	2025 Performance	2024 Desempenho	ODS
1	Reduce carbon emissions per tonne of product by 75% to reach 0.122 tCO₂e/ADT	0.482 tCO2e/adt	0.122 tCO2e/adt	0.141 tCO2e/adt	0.255 tCO2e/adt	0.208 tCO2e/adt	13, 14, 15
2	25 MtCO2e removed from the atmosphere between 2020 and 2030	8.3 MtCO2e	25 MtCO2e	13.9 MtCO2e	6MtCO2	4.30 MtCO2	13, 14, 15

As part of the Bracell 2030 roadmap, we have set two commitments tied to the material topic Climate Change. Our climate goals were developed based on an analysis of the risks and impacts—both positive and negative—Bracell’s operations have on climate change. Our operations generate greenhouse gas (GHG) emissions but also remove CO₂ from the atmosphere by growing planted eucalyptus forests and preserving native vegetation under Bracell management.

By 2030, we have committed to reducing our carbon emissions per metric ton of product by 75% from a 2020 baseline. This means reaching 0.122 tCO₂e/adt. In addition, we will remove 25 MtCO₂e from the atmosphere over the course of a decade—from 2020 to 2030.

For 2025, our interim targets were to close the year with 0.141 tCO₂e/adt and 13.9 MtCO₂e in removals. 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 in emissions was negatively impacted mainly by increased mobile combustion in our operations, as well as higher consumption 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, one of the pulp production lines was modernized 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: 25 MtCO₂e removed from the atmosphere between 2020 and 2030

*Bracell São Paulo, Bracell Bahia, and MS Florestal operations.

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 emissions (including anthropogenic and biogenic LULUCF—Land Use, Land-Use Change, and Forestry—emissions).

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

Below are some of the key initiatives in Bracell’s Climate Action agenda, spanning mitigation, energy efficiency, technological innovation, and building internal capabilities.

Self-sufficient generation capacity – we have on-site renewable, clean generation capacity for the full electricity requirement of our two flexible lines in Lençóis Paulista, São Paulo. We also produce a surplus of 150-180 MW which we feed back into the grid, enough to supply power to a city of 3 million people or 750,000 homes.

Solar power plant – our Tissue facility in Lençóis Paulista (SP) operates the largest solar array in the paper sector in Latin America, with 10,836 panels covering approximately 50,000 square meters. The plant has an installed capacity of 7.21 MW, equivalent to about 20% of the facility’s total electricity requirement.

Fossil fuel replacement with renewable energy in the lime kiln – in the two flexible lines at the Lençóis Paulista (SP) site, we produce synthesis gas (Syngas) from eucalyptus biomass in our biomass gasifiers to power the lime kilns.

Replacement of fuel oil with natural gas in the lime kiln – using advanced engineering technologies and solutions, we have launched a project to replace 1B oil (a petroleum-derived fuel oil) with natural gas in the lime kiln of the site’s older production line in Lençóis Paulista (SP).

Electric forklifts and trucks – our operations are deploying electric forklifts running on renewable electricity produced on-site in Lençóis Paulista. We are also piloting the use of electric trucks for shipping between the plant and the road-rail terminal in Pederneiras (SP), fueled by renewable energy produced at our pulp mill.

Research on carbon and water flux in eucalyptus plantations – as part of the Eucflux-IPEF Cooperative Program, we conduct research on carbon and water flux in eucalyptus plantations in Brazil. This research is enhancing our understanding of these processes in a Bracell-managed eucalyptus plantation in Itatinga, São Paulo, where we have set up a flux tower equipped with advanced monitoring technology.

Investment in carbon and water flux towers – in line with our Bracell 2030 commitments, we are installing five additional carbon and water flux towers in both eucalyptus plantations and native forests across São Paulo, Mato Grosso do Sul, and Bahia. In 2025, we began installing a new flux tower in an area of native vegetation at our Lontra Private Natural Heritage Reserve in Bahia. It will add to the existing tower in the state, operating in a planted eucalyptus forest area, and another in operation in São Paulo in a native forest area.

GHG Inventory and GHG Protocol – our GHG inventory—covering Scopes 1, 2, and 3—and our tCO2e removals are externally audited and assured. We publish a complete GHG emissions inventory in the Brazilian GHG Protocol Program’s Public Emissions Registry platform.

Carbon footprint – we conduct product carbon footprint assessments using internationally recognized lifecycle assessment methodologies, including ISO 14044, ISO 14067 and the GHG Protocol Product Standard, supporting our customers in their decarbonization strategies and building competitive advantage through greater climate transparency.

New cooking plant – in 2025, operations began at the new cooking plant in Camaçari, Bahia. The new system has been developed under Renovar, a program to upgrade industrial equipment and processes as part of our overarching commitment to sustainability and innovation. The plant’s throughput has increased by 35%, boosting productivity while delivering power, steam, natural gas, and water savings.

GHG inventory

As a key part of our climate agenda, Bracell annually prepares a corporate inventory of greenhouse gas (GHG) emissions and removals. In 2025, our inventory covered the entire pulp value chain, including emissions from mill operations in São Paulo and Bahia, forestry operations in these two states and in Mato Grosso do Sul, as well as related logistics activities (read more about our forest operations under GRI 2-6 About Bracell).

The data in our GHG Inventory is publicly disclosed and externally audited by an independent third party, with an assurance letter published in our Sustainability Report and in the Disclosures of (see more under GRI 305 – Emissions).

Bracell’s Greenhouse Gas Inventories cover Scopes 1, 2 and 3 and are prepared in accordance with guidance provided in the latest edition of ISO 14064, the GHG Protocol, and the quantification methodologies published by the Intergovernmental Panel on Climate Change (IPCC). Since 2022, Bracell has published its GHG Inventory data in the Public Emissions Registry.

As a member of the Brazilian GHG Protocol Program (PBGHG), Bracell publishes GHG Inventory data in the Public Emissions Registry, having been again awarded the Program’s Gold badge in 2025.

The PBGHG recognizes participating organizations for voluntary accountability to stakeholders who are increasingly concerned with corporate social and environmental responsibility. The Gold badge is awarded to organizations that demonstrate high levels of accuracy and transparency in their greenhouse gas inventory submissions to the Brazilian GHG Protocol Program’s Public Emissions Register (RPE).

Carbon balance

Bracell’s planted eucalyptus forests and native forest areas play a crucial role in capturing CO₂ from the atmosphere, absorbing and storing carbon throughout the trees’ growth cycle. This natural process helps partially offset our greenhouse gas (GHG) emissions.

In 2025, our carbon balance showed that our removals exceeded our emissions. See details in the table below.

We removed -3.4 tCO₂e* from the atmosphere in 2025, and our net carbon balance was -1,544,310 tCO₂e

Monitoring Carbon and Water Flux in Eucalyptus Plantations

As part of our commitments within the Bracell 2030 roadmap, we have invested in building five flux towers to monitor water and carbon flux in our operations.

In 2024, we installed two towers—one in a native forest area in São Paulo and another in a eucalyptus area in Bahia. In 2025, we began installing a new flux tower in an area of native vegetation at our Lontra Private Natural Heritage Reserve in Bahia. Two additional towers will be installed in Mato Grosso do Sul, one in a eucalyptus plantation and one in a native forest area, bringing the total to five towers. Measured data is managed and analyzed by our Forestry Research and Development team.

These towers collect data on carbon and water fluxes from trees, as well as various environmental variables. The system includes sensors to measure short- and long-wave radiation, photosynthetically active radiation (PAR), precipitation, CO2 concentration at different tower heights, as well as air temperature and humidity and soil temperature, moisture and heat. These data provide critical inputs to improve our strategies in response to climate change.

Two more towers will be installed in Mato Grosso do Sul, one in each type of forested area. The data is managed and analyzed by our Forestry Research and Development team.

Eucflux-IPEF Cooperative Program

We are a member of the Eucflux-IPEF Cooperative Program, which studies carbon and water flux in eucalyptus plantations in Brazil. This research is enhancing our understanding of these processes in a Bracell-managed eucalyptus plantation in Itatinga, São Paulo, where we have set up a flux tower equipped with advanced monitoring technology.

Eucflux is led by the Institute for Forest Research and Studies (IPEF) and the French Agricultural Research Centre for International Development (CIRAD), with participation from academic institutions such as the Federal University of Lavras (UFLA), São Paulo State University (UNESP), and the University of São Paulo (ESALQ/USP).

Climate Impacts and Risks

Bracell systematically identifies and classifies climate-related risks and opportunities. These are categorized as physical or regulatory, and their financial implications for the business are determined. We also detail the methods used to manage each risk.

Our Corporate Risk Management and Business Continuity Policy provides guidelines on identifying, assessing, addressing, and monitoring corporate risks through a structured Enterprise Risk Management (ERM) process. This process follows international standards such as ISO 31000, BSI 31100, and COSO ERM, covering operational, social, environmental, governance, technological, strategic, political, and financial risks.

Climate-related risks with financial impacts are categorized and classified in accordance with Bracell’s Risk Classification Matrix (see GRI 201-2).

Impacts	Description	Details
Positive Actual Impacts	We remove carbon from the atmosphere through our eucalyptus plantations, native forests, and soil.	In 2025, our planted forests removed 1.8 MtCO₂e, while our native forests removed 1.6MtCO₂e, totaling 3.4 MtCO₂e in removals.
Actual negative impacts	Greenhouse gas (GHG) emissions from our operations.	Scope 1 and 2 greenhouse gas emissions, whose impacts are limited in scale and moderate in intensity. We have effective internal control mechanisms in place to manage and reduce these emissions (see more in our GHG inventory under GRI 305 – Emissions).
	Greenhouse gas (GHG) emissions from our operations.	Scope 3 greenhouse gas emissions, whose impacts are broad in scale and high in intensity. We have internal control mechanisms in place and recognize the importance of strengthening our strategy to mitigate Scope 3 GHG emissions. We actively participate in committees and working groups on this topic (see more in our GHG inventory under GRI 305 – Emissions).

Climate adaptation

Forestry R&D, risk management and climate change impacts

We invest in classical genetic improvement, silviculture, forest management, extension services, and technology transfer to ensure a sustainable supply of high-quality pulpwood over the medium and long term—and ultimately business continuity and product excellence.

The Forest R&D team’s key research endpoints are to improve the Mean Annual Increment of Wood (MAI) and Mean Annual Increment of Pulp (MACI) sustainably. Our research pipeline currently includes more than 400 projects, all aligned with the team’s mission and tailored to the specific characteristics of each region where we operate.

MAI and IMACEL are key forest performance indicators that measure the annual average growth in pulpwood volume per hectare and annual average pulp production per hectare, respectively, informing decisions on forest management, genetic improvement and business sustainability.

Classical genetic improvement

Bracell does not use genetically modified organisms (GMOs) and develops its eucalyptus clones through classical genetic improvement. This process involves the generation, evaluation and selection of clones improved in successive cycles. The focus of genetic improvement is also on developing techniques aimed at improving cloning efficiency, guaranteeing high-quality pulpwood that is more sustainable in the long term.

In 2024, our Forestry R&D team recommended the commercial planting of three clonal composites—one in São Paulo, one in Bahia and one in Mato Grosso do Sul. These are unique cultivars formed by a blend of clones, which reduces vulnerability and offers greater protection against pests, diseases, and adverse weather events. These clonal composites have been commercially planted since 2024.

In addition to these three clonal composites, newly developed in-house clones are regularly recommended for operations in São Paulo, Bahia and Mato Grosso do Sul.

Forestry and forest management

At Bracell, we seek to continually improve our forest management processes and use best-practice soil conservation, preparation and fertilization methods. Biological control of pests, diseases and weeds is also a priority, ensuring healthy, productive forests in the long term (see GRI 2-6 About Bracell).

Each year, Bracell has increased the production of natural enemies for use in planting regions. In 2024, 95 million natural enemies were produced and, in 2025, production reached 1.3 million in São Paulo, 127.2 million in Bahia and 30.1 million in Mato Grosso do Sul. Biological control reduces the need for chemical inputs, helping lower greenhouse gas emissions, particularly nitrous oxide (N₂O) associated with the application of nitrogen-based inputs in forest management.

Forestry extension and technology transfer

As part of our research efforts, we provide specialized technical assistance and promote technology transfer in our forestry operations, advancing best practices and continuous process improvement.

Climate zoning studies

We carry out ongoing climate zoning studies to monitor edaphoclimatic—or soil and climate—conditions in the regions where we operate in Brazil, with a focus on water availability, which is essential to understanding direct water impact on eucalyptus forest development.

These studies allow us to identify the areas best suited for commercial eucalyptus cultivation, optimizing land use and enhancing the environmental sustainability of our operations. Based on these findings, technical recommendations are tailored to the specific characteristics of each location, ranging from the selection of the most suitable genetic material to forestry practices such as planting spacing, fertilization, soil preparation and pest and disease management.

Climate zoning also informs the optimal timing for these activities, aligning field operations with environmental conditions to maximize plantation performance and efficiency.

In 2025, we applied lessons learned in 2024 by adjusting planting timing for more susceptible clones to the second half of the year, avoiding early exposure to higher temperatures and humidity in the first half of the year, which resulted in lower pest and disease incidence and higher yield.

In a collaboration with the University of North Carolina, we developed a clonal allocation tool. This tool enables more precise identification of the best-performing clones for each planting area.

An in-house biometrician, specialized in applying quantitative methods to biological and ecological data analysis, conducted a three-month study in the US and developed the tool, which optimizes planting efficiency and generated an average 4% gain in Mean Annual Increment (MAI) simply by placing the right clone in the right location.

MAI is a key performance indicator for forestry. It measures the average annual growth in pulpwood volume per hectare and informs decisions surrounding forestry management, genetic improvement and long-term business sustainability.

Energy Management

Our pulp mills in Lençóis Paulista (SP) are energy self-sufficient. At our mills, recovery boilers produce steam that is fed to turbine-generator sets to generate electricity. We only source electricity from the national grid during equipment maintenance shutdowns. In these cases, we source electricity from the national grid, which derives approximately 85% of its electricity from renewable sources—mainly hydro, wind, and solar.

Electricity is also purchased for forestry and port operations, nurseries and offices.

At our storage yards in Lençóis Paulista (SP), we use electric forklifts to reduce fossil fuel consumption in these operations.

In 2025, we continued testing electric trucks along the shipping route between the mill and the Pederneiras (SP) rail-road terminal. This initiative is a first for this type of heavy-duty operation. During the year, one electric truck traveled 17,000 km in a trial, avoiding 16 tCO₂e in emissions.

We also purchased a new truck with expanded payload capacity of 52 metric tons (t), compared to the previous 28t to 30t vehicles. The truck is powered by renewable energy generated at the Lençóis Paulista (SP) mill. This the second phase of testing in an initiative combining sustainability with improved logistics and cost efficiency.

Renewable energy

The Lençóis Paulista (SP) pulp mills have been developed to be fossil fuel-free, with on-site capacity to generate clean and renewable electricity for operations and a surplus that is fed into the national grid.

The Lençóis Paulista (SP) site has a 440 kV substation with an installed capacity of 409 MW, enough to supply the full electricity requirement of the mill and a surplus of approximately 150 to 180 MW that is sold to the national grid, enough to supply clean renewable electricity to around 750,000 homes or approximately 3 million people.

At our Bahia plant, we operate a recovery boiler that generates renewable energy by burning black liquor, a byproduct of the wood pulping process.

During the year, we generated 57 million GJ of renewable electricity from eucalyptus biomass, black liqour and solar array. We sold 2 milion GJ of eucalyptus biomass-generated electricity to the Brazilian free energy market (see more in GRI 302). Our surplus electricity sold in the free market is certified under the I-REC standard, which verifies the renewable attributes of the electricity produced.

In 2025, our logistics operations at the Port of Santos (São Paulo State), which are ISO 14001-certified, further increased our use of renewable energy. Automation upgrades reached full operating capacity: two gantry cranes and four overhead cranes now handle pulp transported by rail from the Pederneiras road-rail terminal (São Paulo State). This system enables faster loading of breakbulk vessels and supports remote operations. As a result, we eliminated the use of trucks in port operations. We also reduced the number of forklifts from 18 to 5, two of which are electric and the others powered by LPG.

Sustainability Attributes at Bracell Papéis

Bracell’s paper mills in the Northeast and Southeast are equipped with technologies that support the use of renewable energy in our operations and help mitigate greenhouse gas emissions.

Pulp Transportation for Tissue Production

The Bracell Papéis mill in Lençóis Paulista (SP) is located on the same site as Bracell’s flexible lines, where the kraft pulp used in Tissue manufacture is produced. This logistics integration allows the pulp to be transported via pipeline, eliminating the need for drying and road transport, thereby saving GHG emissions and optimizing processes.

Automated Vertical Warehouse and Energy Efficiency

The products manufactured at the Lençóis Paulista (SP) site are stored in an automated vertical warehouse, which uses robot-operated elevators to optimize goods handling. This system ensures greater energy efficiency in the process. Automation reduces the need for lighting and air-conditioning, resulting in energy savings in warehousing operations.

The system also enables better logistics control, allowing for optimized storage and fast product handling, which reduces waste and increases productivity. It also improves safety and efficiency. Automation minimizes human intervention, making the process safer, more precise and more sustainable.

Solar Power

The Bracell Papéis facility in Lençóis Paulista (SP) has a 50,000 m² solar panel array—the largest in Latin America—covering the entire roof of the industrial plant, generating 7.21 MW of renewable, fossil fuel–free energy. This generation capacity meets 20% of the site’s total electricity requirement.

Biomass boiler

At the Bracell Papéis plant in Feira de Santana (BA), we commissioned a new biomass boiler, which came online in December 2024. The new unit, which is safer and more efficient, was installed as part of our Inovar program—representing the largest investment in the facility’s history.

The Climate Transition and Adaptation Plan is primarily focused on the climate transition pillar, aiming to progressively structure the corporate strategy for reducing greenhouse gas (GHG) emissions, strengthening carbon removals, and increasing efficiency and the use of renewable sources in the energy matrix. Throughout 2025, Bracell continued its investments in structuring decarbonization actions across its businesses, using Bracell 2030 as a reference and adopting a medium- and long-term perspective.

The development of the plan is based on scientific principles and the use of internationally recognized methodologies and frameworks, including GRI, CDP, GHG Protocol, SASB, TCFD, IFRS, and the Transition Plan Taskforce (TPT). These frameworks guide methodological consistency, transparency, and comparability throughout the plan’s evolution.

As part of its intended pathway, the plan seeks progressive alignment with the 1.5°C global warming limit, supported by climate scenario analysis based on the Intergovernmental Panel on Climate Change (IPCC).

Bracell’s climate governance, within the scope of transition and adaptation, is structured across three levels to integrate climate-related issues into the business strategy.

At the strategic level, the Sustainability Steering Committee oversees climate targets and carbon reduction and adaptation projects, defines priorities, and promotes integration with corporate strategy, risk management, and long-term value creation.

At the tactical level, the Sustainability area acts as the link between strategy and execution, promoting the integration of climate data, monitoring climate targets, and leading mitigation and resilience-related topics.

At the operational level, Technical Working Groups are responsible for implementing climate guidelines through the development and monitoring of emissions, removals, and energy-related topics.

The Climate Transition and Adaptation Plan incorporates, as a developing guideline, the principles of a just transition, considering the social, environmental, economic, and territorial impacts of decarbonization, with a future outlook for the inclusion of guidelines, metrics, and integrated analyses on socio-environmental topics. Its scope is to progressively guide mitigation initiatives, such as emissions reduction, strengthening carbon removals, expanding the renewable energy matrix, and integrating climate criteria into decision-making across operations and the value chain.

The Climate Action pillar reflects Bracell’s commitment to contributing to the mitigation of climate change impacts and to enhancing the resilience of its operations. The Company has been building its climate strategy through the management of its greenhouse gas (GHG) emissions, the establishment of emissions reduction targets and carbon removal targets through its forests, as well as the implementation of actions that strengthen climate adaptation (GRI 3-3).

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 per tonne of product manufactured by 75%, 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 (GRI 3-3).

In addition, we conducted a comprehensive assessment of potential and actual (realized) impacts—both positive and negative—related to the material topic of Climate Change.

Impacts	Description	Details
Positive Actual Impacts	We remove carbon from the atmosphere through our eucalyptus plantations, native forests, and soil.	In 2025, our planted forests removed 1.8 MtCO₂e, while our native forests removed 1.6 MtCO₂e, totaling 3.4  MtCO₂e in removals.
Actual negative impacts	Greenhouse gas (GHG) emissions from our operations.	Scope 1 and 2 greenhouse gas emissions, whose impacts are limited in scale and moderate in intensity. We have effective internal control mechanisms in place to manage and reduce these emissions ((see more in our GHG inventory under GRI 305 – Emissions).
	Greenhouse gas (GHG) emissions from our operations.	Scope 3 greenhouse gas emissions, whose impacts are broad in scale and high in intensity. We have internal control mechanisms in place and recognize the importance of strengthening our strategy to mitigate Scope 3 GHG emissions. We actively participate in committees and working groups on this topic (see more in our GHG inventory under  GRI 305 – Emissions).

In 2025, Bracell initiated the development of the climate change adaptation pillar within its Climate Transition and Adaptation Plan, focusing on strengthening the resilience of its operations, assets, and value chain in the face of climate risks. This pillar complements the Bracell 2030 program, which already establishes corporate climate-related targets.

The approach is science-based and aligned with international frameworks such as GRI, CDP, TCFD, IFRS, and IPCC, which guide the identification, assessment, and management of climate risks across different time horizons, with the gradual integration of these analyses into Enterprise Risk Management (ERM).

Governance of the adaptation pillar follows the corporate climate management structure: the Sustainability Steering Committee operates at the strategic level, the Climate & Carbon Hub at the tactical level, and operational areas contribute to data collection, vulnerability assessments, and the discussion of adaptive responses.

The Climate Transition and Adaptation Plan incorporates, as a developing guideline, the principles of a just transition, considering the social, environmental, economic, and territorial impacts of decarbonization, with a future outlook for the inclusion of guidelines, metrics, and integrated analyses on socio-environmental topics. Its scope is to progressively guide mitigation initiatives, such as emissions reduction, strengthening carbon removals, expanding the renewable energy matrix, and integrating climate criteria into decision-making across operations and the value chain.

The Climate Action pillar reflects Bracell’s commitment to contributing to the mitigation of climate change impacts and to enhancing the resilience of its operations. The Company has been building its climate strategy through the management of its greenhouse gas (GHG) emissions, the establishment of emissions reduction targets and carbon removal targets through its forests, as well as the implementation of actions that strengthen climate adaptation (GRI 3-3).

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 per tonne of product by 75%, 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 (GRI 3-3).

In addition, we conducted a comprehensive assessment of potential and actual (realized) impacts—both positive and negative—related to the material topic of Climate Change, identified through a double materiality assessment. This process incorporates a risk perspective and analyzes the key topics that influence and are influenced by the Company’s operations. It considers both the impacts generated by the Company on the environment and society, as well as the associated financial effects.

Impacts	Description	Details
Positive Actual Impacts	We remove carbon from the atmosphere through our eucalyptus plantations, native forests, and soil.	In 2025, our planted forests removed 1.8 MtCO₂e, while our native forests removed 1.6 MtCO₂e, totaling 3.4  MtCO₂e in removals.
Actual negative impacts	Greenhouse gas (GHG) emissions from our operations.	Scope 1 and 2 greenhouse gas emissions, whose impacts are limited in scale and moderate in intensity. We have effective internal control mechanisms in place to manage and reduce these emissions ((see more in our GHG inventory under GRI 305 – Emissions).
	Greenhouse gas (GHG) emissions from our operations.	Scope 3 greenhouse gas emissions, whose impacts are broad in scale and high in intensity. We have internal control mechanisms in place and recognize the importance of strengthening our strategy to mitigate Scope 3 GHG emissions. We actively participate in committees and working groups on this topic (see more in our GHG inventory under  GRI 305 – Emissions).

Source of Risk	Risk	Scope
Physical Risks and Opportunities	Extreme weather events (floods, windstorms, and forest fires)	These may result in significant losses of forest assets, production disruptions, raw material supply disruptions, increased insurance costs, and additional operational risks. Our approach to managing these risks includes weather-resistant building and industrial facility designs, effective industrial fire suppression systems, forest fire response plans, and insurance coverage for facilities and equipment.
Physical Risks and Opportunities	Changes in rainfall patterns	These may lead to reduced water availability, increased costs for sourcing and treatment, and limitations on production capacity. Our approach to managing these risks includes strict monitoring of water consumption in line with water permits, setting reduction targets and performance indicators, and implementing water recycling projects and renewable energy solutions to improve operational efficiency.
Physical Risks and Opportunities	Water shortage	This poses both physical and regulatory risks, directly affecting groundwater usage permits and potentially limiting production and future expansion. Our approach to managing these risks includes continuous monitoring of water consumption and setting clear performance indicators and targets for consumption reduction, aiming to optimize processes and reduce losses.
Physical Risks and Opportunities	Strong winds and heavy rainfall	These events can cause serious damage to assets, limiting or halting production operations. We manage these risks by designing structures to withstand severe weather and maintaining emergency and business continuity plans.
Regulatory Risk and Opportunity	More stringent legal and regulatory climate-related requirements	These requirements could result in additional compliance costs. Our approach to managing these risks involves close monitoring and control of water consumption and permits, carrying out research and projects around water reduction and reuse in industrial processes, and expanding renewable energy and use of electric equipment (such as electric forklifts) to significantly reduce fossil fuel consumption.

Direct greenhouse gas (GHG) emissions (Scope 1)

2025		Bahia Pulp	São Paulo Pulp	Southeast Paper	Northeast Paper	Mato Grosso do Sul Forestry	Total
Mobile combustion		10,213.96	237,527.19	588.36	84,643.02	35,641.96	368,614.50
Stationary combustion		182,456.76	181,392.54	4.30	1,099.23	61.78	365,014.61
Waste and wastewater generated		0.00	13,838.01	0.00	0.00	0.00	13,838.01
Fugitive emissions		5,474.48	2,072.37	0.00	118.82	289.86	7,955.53
Agricultural activities		15,534.84	65,679.52	0.00	0.00	94,389.03	175,603.38
Industrial processes		8,124.34	30,634.80	0.00	0.00	0.00	38,759.14
Land-use change		1,855.87	4,379.40	0.00	0.00	0.45	6,235.71
Bracell		223,660.25	535,523.83	592.66	85,861.07	130,383.07	976,020.89

 

Direct greenhouse gas emissions by gas – Scope 1 (t CO₂ equivalente)

2025	Bahia Pulp	São Paulo Pulp	Southeast Paper	Northeast Paper	Mato Grosso do Sul Forestry	Total
CO₂	200,792.00	417,465.09	580.83	84,260.16	74,547.22	777.645,30,
CH₄	2,702.34	23,657.39	6.11	670.31	96.16	27,132.31
N₂O	14,962.84	92,591.63	5.72	930.61	55,587.74	164,078.54
HFCs	5,203.07	1,809.71	0.00	0.00	151.96	7,164.74
PFCs	0.00	0.00	0.00	0.00	0.00	0.00
SF₆	0.00	0.00	0.00	0.00	0.00	0.00
NF₃	0.00	0.00	0.00	0.00	0.00	0.00
Bracell	223,660.25	535,523.83	592.66	85,861.07	130,383.07	976,020.89

Direct greenhouse gas emissions by gas – Scope 1 (t gas)

2025	Bahia Pulp	São Paulo Pulp	Southeast Paper	Northeast Paper	Mato Grosso do Sul Forestry	Total
CO₂	200,792.00	417,465.09	580.83	84,260.16	74,547.22	777,645.30
CH₄	96.51	844.91	0.22	23.94	3.43	969.01
N₂O	56.46	349.40	0.02	3.51	209.77	619.16
HFCs	3.58	0.95	0.00	0.00	0.08	4.61
PFCs	0.00	0.00	0.00	0.00	0.00	0.00
SF₆	0.00	0.00	0.00	0.00	0.00	0.00
NF₃	0.00	0.00	0.00	0.00	0.00	0.00
Bracell	200,948.56	418,660.35	581.07	84,287.61	74,760.50	779,238.08

Scope 1 biogenic emissions (t CO₂ equivalent)

2025	Bahia Pulp	São Paulo Pulp	Southeast Paper	Northeast Paper	Mato Grosso do Sul Forestry	Total
Scope 1	223,660.25	535,523.83	592.66	85,861.07	130,383.07	976,020.89
Scope 1 – Biogenic	1,940,273.87	16,084,659.90	29.69	71,034.18	572.11	18,096,569.75

Learn more under GRI 305-1.

Location-based gross GHG emissions

Scope 2 greenhouse gas emissions (t CO₂ equivalent)

2025	Bahia Pulp	São Paulo Pulp	Southeast Paper	Northeast Paper	Mato Grosso do Sul Forestry	Total
Scope 2	6,513.74	4,349.20	10,325.79	2,705.20	23.27	23,917.20
Bracell	6,513.74	4,349.20	10,325.79	2,705.20	23.27	23,917.20

 

Location-based emissions

Scope 2 greenhouse gas emissions by gas (t CO2 equivalent)

2025	Bahia Pulp	São Paulo Pulp	Southeast Paper	Northeast Paper	Mato Grosso do Sul Forestry	Total
CO₂	6,513.74	4,349.20	10,325.79	2,705.20	23.27	23,917.20
CH₄	0.00	0.00	0.00	0.00	0.00	0.00
N₂O	0.00	0.00	0.00	0.00	0.00	0.00
Bracell	6,513.74	4,349.20	10,325.79	2,705.20	23.27	23,917.20

 

Location-based gross GHG emissions

Scope 2 biogenic emissions (metric tonnes)

2025	Bahia Pulp	São Paulo Pulp	Southeast Paper	Northeast Paper	Mato Grosso do Sul Forestry	Total
Scope 2 – Biogenic	0.00	0.00	0.00	0.00	0.00	0.00

 

Learn more under GRI 305-2.

Scope 3 greenhouse gas emissions by category (t CO₂ equivalent)

Scope 3 categories	Bahia Pulp	São Paulo Pulp	Southeast Paper	Northeast Paper	Mato Grosso do Sul Forestry	Total
Bens e serviços comprados	25,051.97	378.25	0.00	0.00	4.52	25,434.74
T&D Upstream	3,676.22	24,159.94	0.00	0.00	2,981.42	30,817.58
Resíduos sólidos da operação	84.80	30,455.47	0.00	798.04	3.89	31,342.19
Viagens a negócio	8.77	430.57	0.00	0.00	50.33	489.68
Deslocamento de funcionários	3,091.03	8,737.57	0.00	195.99	562.47	12,587.06
T&D Downstream	132,736.12	652,300.61	3,180.58	0.00	0.00	788,217.31
Bracell	164,648.92	716,462.41	3,180.58	994.03	3,602.63	888,888.57

 

Direct greenhouse gas emissions by gas – Scope 3 (tCO₂e)

2025	Bahia Pulp	São Paulo Pulp	Southeast Paper	Northeast Paper	Mato Grosso do Sul Forestry	Total
CO₂	162,429.47	677,332.25	3,128.84	990.84	3,544.54	847,425.94
CH₄	199.40	18,100.07	6.54	0.40	7.30	18,313.71
N₂O	2,020.05	21,030.10	45.19	2.79	50.79	23,148.92
Bracell	164,648.92	716,462.41	3,180.58	994.03	3,602.63	888,888.57

 

Emissões diretas de gases de efeito estufa por gás Escopo 3 (t gás)

2025	Bahia Pulp	São Paulo Pulp	Southeast Paper	Northeast Paper	Mato Grosso do Sul Forestry	Total
CO₂	162,429.47	677,332.25	3,128.84	990.84	3,544.54	847,425.94
CH₄	7.12	646.43	0.23	0.01	0.26	654.06
N₂O	7.62	79.36	0.17	0.01	0.19	87.35

Scope 3 biogenic emissions (t CO₂ equivalent)

Scope 3 categories	Bahia Pulp	São Paulo Pulp	Southeast Paper	Northeast Paper	Mato Grosso do Sul Forestry	Total
1. Purchased goods and services	3,698.04	63.49	0.00	0.00	0.76	4,032.29
4. Upstream transportation and distribution	575.78	20,086.85	0.00	0.00	4,264.24	24,926.87
5. Waste generated in operations	0.00	0.00	0.00	0.00	0.00	0.00
6. Business travel	0.00	0.00	0.00	0.00	0.00	0.00
7. Employee commuting	4.38	707.96	0.00	155.17	0.00	867.51
9. Downstream transportation and distribution	0.00	512.63	0.00	0.00	0.00	512.63
Bracell	4,548.20	21,370.92	0.00	155.17	4,265.00	30,339.29

GHG emissions intensity

Emissions (tCO2e)	2023	2024	2025
Scope 1 e 2	0.174	0.208	0.255

Note: Bracell’s emissions intensity metric considers Scope 1 and Scope 2 emissions from the São Paulo and Bahia pulp units, in order to align with the reporting of its emissions intensity climate target.

For more information, see GRI 305-4.

Carbon balance (tCO2e)

Emissões	2023	2024	2025
Total (E1 + E2 + E3)	1,701,669.00	1,716,315.84	1,888,826.67
Escopo 1	597,454.00	731,362.80	976,020.89
Escopo 2	9,611.00	13,213.63	23,917.20
Escopo 3	1,094,603.00	971,739.41	888,888.57
Emissões biogênicas LULUCF	3,940,391.00	2,227,222.45	11,315,321.66
Remoções biogênicas	-1,286,441.00	-4,119,009.65	14,748,445.83
Saldo	4,355,619.00	-175,471.36	-1,544,297.51

Note: Bracell 2030 removals target (25 MtCO₂e removed from the atmosphere between 2020 and 2030) does not include emissions from Tissue Northeast and Tissue Southeast operations. Therefore, for the purpose of calculating the target, emissions from these units (amounting jointly to 103,659.33 tCO₂e) are excluded, resulting in an annual balance of –1,647,956.84 tCO₂e.

Bracell systematically identifies and classifies climate-related risks and opportunities. These are categorized as physical or regulatory, and their financial implications for the business are determined. We also detail the methods used to manage each risk.

Costs associated with climate change, including adaptation and mitigation initiatives, are evaluated internally as part of our enterprise risk management and strategic planning processes. While exact figures are not disclosed due to strategic confidentiality, these initiatives are prioritized within our budget and monitored through established risk and performance management frameworks, including ERM and the Bracell 2030 roadmap.

Source of Risk	Risk	Scope
Physical Risks and Opportunities	Extreme weather events (floods, windstorms, and forest fires)	These may result in significant losses of forest assets, production disruptions, raw material supply disruptions, increased insurance costs, and additional operational risks. Our approach to managing these risks includes weather-resistant building and industrial facility designs, effective industrial fire suppression systems, forest fire response plans, and insurance coverage for facilities and equipment.
Physical Risks and Opportunities	Changes in rainfall patterns	These may lead to reduced water availability, increased costs for sourcing and treatment, and limitations on production capacity. Our approach to managing these risks includes strict monitoring of water consumption in line with water permits, setting reduction targets and performance indicators, and implementing water recycling projects and renewable energy solutions to improve operational efficiency.
Physical Risks and Opportunities	Water shortage	This poses both physical and regulatory risks, directly affecting groundwater usage permits and potentially limiting production and future expansion. Our approach to managing these risks includes continuous monitoring of water consumption and setting clear performance indicators and targets for consumption reduction, aiming to optimize processes and reduce losses.
Physical Risks and Opportunities	Strong winds and heavy rainfall	These events can cause serious damage to assets, limiting or halting production operations. We manage these risks by designing structures to withstand severe weather and maintaining emergency and business continuity plans.
Regulatory Risk and Opportunity	More stringent legal and regulatory climate-related requirements	These requirements could result in additional compliance costs. Our approach to managing these risks involves close monitoring and control of water consumption and permits, carrying out research and projects around water reduction and reuse in industrial processes, and expanding renewable energy and use of electric equipment (such as electric forklifts) to significantly reduce fossil fuel consumption.

Risk management process

Our Corporate Risk Management and Business Continuity Policy provides guidelines on identifying, assessing, addressing, and monitoring corporate risks through a structured Enterprise Risk Management (ERM) process. This process follows international standards such as ISO 31000, BSI 31100, and COSO ERM, covering operational, social, environmental, governance, technological, strategic, political, and financial risks.

Climate-related risks with financial impacts are categorized and classified in accordance with Bracell’s Risk Classification Matrix.

The ERM framework was fully implemented across the 18 departments reported in the previous reporting cycle. In 2025, the scope was expanded to include 27 additional departments, covering the Bracell São Paulo, Bracell Bahia, and our Southeast and Northeast Paper operations. This expansion included pulp and tissue operations, as well as forestry, logistics and corporate functions. During the reporting period, implementation was completed in the pulp, forestry and logistics operations of Bracell Bahia, and in the pulp operations of Bracell São Paulo. Implementation remains ongoing in corporate functions, forestry and logistics operations at Bracell São Paulo, and the tissue operations of paper business units.

Methods Used to Manage Climate Change Risks or Opportunities

In our operations, we adopt management practices and invest in technologies aimed at preventing and mitigating climate change impacts, such as carbon capture and storage, fossil fuel replacement, the use of renewable and low-carbon energy, energy efficiency improvements, renewable energy certificates, among other methods (see GRI 3-3 Management of Material Topics  – Climate Resilience).

Below are some of the key initiatives in Bracell’s Climate Action agenda, spanning mitigation, energy efficiency, technological innovation, and building internal capabilities.

Energy self-sufficiency – We generate our own renewable electricity at Lençóis Paulista (São Paulo State), with 150 to 180 MW of surplus power supplied to Brazil’s national grid.

Solar energy – A 7.21 MW solar array (10,836 panels) at our Tissue plant supplies approximately 20% of the site’s electricity requirement.

Fuel transition – Replacing fossil fuels with renewable alternatives, including the use of eucalyptus biomass-derived syngas and the replacement of fuel oil with natural gas in lime kilns.

Replacement of fuel oil with natural gas in the lime kiln – using advanced engineering technologies and solutions, we have launched a project to replace 1B oil (a petroleum-derived fuel oil) with natural gas in the lime kiln of the site’s older production line in Lençóis Paulista (SP).

Electrification of material handling and logistics – Electric forklifts and trucks powered by our own renewable energy are now in operation. In 2025, this initiative avoided 16 tCO₂e in emissions.

Carbon and water flux research – Bracell is participating in the Eucflux-IPEF program, and has installed flux towers in eucalyptus plantations and native vegetation areas to monitor carbon and water dynamics.

GHG Inventory and GHG Protocol – Scope 1, 2 and 3 emissions are audited and publicly reported via the Brazilian GHG Protocol Program.

We continue to invest in energy efficiency and expanding renewable energy use across our operations, in line with our corporate strategy to reduce greenhouse gas emissions.

Reducing energy intensity, improving energy efficiency and building a low-carbon energy mix are central to managing our emissions profile (see GRI 305 – Emissions).

Our São Paulo plants are self-sufficient in electricity and rely on Brazil’s national grid primarily during scheduled maintenance shutdowns. During these periods, electricity is sourced from the national grid, which has a largely renewable energy mix including hydropower, wind and solar. In addition, Bracell sells surplus renewable electricity in Brazil’s free energy market, with I-REC certification verifying its renewable attributes.

At our storage yards in Lençóis Paulista (SP), we use electric forklifts to reduce fossil fuel consumption in these operations. In 2025, we advanced our electric truck initiative along the logistics route between the plant and the Pederneiras road-rail terminal, helping lower shipping emissions intensity.

In addition, at our Bracell Papéis mill in Lençóis Paulista, São Paulo, we utilize steam hood technology—an advanced system designed to regulate temperature, humidity, and airflow in the paper machine drying section. This enables us to maximize renewable energy use within our manufacturing process and eliminate the need for fossil fuels. Across the industry, however, the prevailing practice remains the use of gas-fired hoods.

• Additional energy efficiency initiatives are described in GRI 3-3: Management of the Material Topic: Climate Change

Reduction of natural gas consumption

Bracell continues to enhance operational efficiency while reducing natural resource consumption. At our Bahia mill, one pulp production line was upgraded with a newly launched cooking line. The upgrade introduced more advanced equipment, improving process efficiency and reducing losses.

With the new technology entering operation in early October 2025, steam demand in the wood-to-pulp chemical conversion stage was reduced. This resulted in a 3% reduction in the plant’s total natural gas consumption.

 

Historical energy consumption within the organization (GJ)

Operation	2023	2024	2025
Bahia Pulp Operations	1,541,824.41	17,706,299.98	17,066,281.82
São Paulo Pulp Operations	6,248,231.37	177,670,455.60	58,470,266.72
Southeast Paper Operations	–	380,731.13	718,976.87
Northeast Paper Operations	–	543,413.07	1,312,918.63
Bracell	7,790,055.78	196,300,899.77	77,568,444.03

Electricity generated (GJ)

Operation	2023	2024	2025
Bahia Pulp Operations	1,066,178.70	17,178,104.38	3,111,481.48
São Paulo Pulp Operations	9,387,409.61	180,045,408.44	53,254,398.41
Southeast Paper Operations	–	380,731.13	22,419.20
Northeast Paper Operations	–	370,631.18	598,767.86
Bracell	10,453,588.31	197,974,875.12	56,987,066.95

 

Non-renewable energy consumption (GJ)

2025	Bahia Pulp Operations	São Paulo Pulp Operations	Southeast Paper Operations	Northeast Paper Operations	Total
Diesel Oil	124,855.05	1,967,074.29	5,700.08	555,476.00	2,653,105.43
Gasoline	8,423.19	8,499.30	0.00	0.00	16,922.49
LPG	9,724.66	27,673.61	3,048.48	5,298.89	45,745.64
Aviation Kerosene	0.00	1,972.14	0.00	0.00	1,972.14
Aviation Gasoline	0.00	0.00	0.00	0.00	0.00
Combustion oil	0.00	571,251.37	0.00	0.00	571,251.37
Natural Gas	3,100,317.80	1,782,077.14	0.00	0.00	4,882,394.94
Bracell	3,243,320.71	4,358,547.86	8,748.56	560,774.89	8,171,392.01
Renewable energy consumption (GJ)
2025	Bahia Pulp Operations	São Paulo Pulp Operations	Southeast Paper Operations	Northeast Paper Operations	Total
Ethanol	515.33	9,780.93	0.00	0.00	10,296.26
Hydrated Ethyl Alcohol	0.00	98.52	0.00	0.00	98.52
Anhydrous Ethyl Alcohol	0.00	0.00	0.00	0.00	0.00
Black liquor	13,372,457.79	55,251,407.84	0.00	0.00	68,623,865.64
Biomass	0.00	1,346,378.94	0.00	578,110.36	1,924,489.30
Solar energy	0.00	0.00	22,419.20	0.00	22,419.20
Renewable Methanol	0.00	39,218.61	0.00	0.00	39,218.61
Bracell	13,372,973.12	56,646,884.84	22,419.20	578,110.36	70,620,387.53
Energy consumed internally (GJ)
2025	Bahia Pulp Operations	São Paulo Pulp Operations	Southeast Paper Operations	Northeast Paper Operations	Total
Electricity consumption	1,536,816.25	5,852,822.44	709,987.48	175,074.12	8,274,700.29
Heating energy consumption	0.00	0.00	0.00	0.00	0.00
Cooling energy consumption	0.00	0.00	0.00	0.00	0.00
Steam consumption	1,572,591.63	45,253,750.42	1,279,197.50	423,693.74	48,529,233.29
Bracell	3,109,407.88	51,106,572.86	1,989,184.98	598,767.86	56,803,933.58

 

Electricity sold (GJ)

Operation	2023	2024	2025
Bahia Pulp Operations	10,481.59	10,796.40	2,073.60
São Paulo Pulp Operations	3,506,216.24	2,707,612.52	1,814,442.55
Bracell	3,212,967.93	3,516,697.83	1,816,516.15

Energy Sold (GJ) 

2025	Bahia Pulp Operations	São Paulo Pulp Operations	Southeast Paper Operations	Northeast Paper Operations	Total
Electricity Energy sold	2,073.60	1,814,442.55	0.00	0.00	1,816,516.15
Heating Energy sold	0.00	0.00	0.00	0.00	0.00
Cooling Energy sold	0.00	0.00	0.00	0.00	0.00
Steam Energy sold	0.00	333,383.00	0.00	0.00	333,383.00
Bracell	2,073.60	2,147,825.55	0.00	0.00	2,149,899.15

 

Total energy consumed within the organization, by type of energy (GJ)

Energy consumed within the organization (GJ) 2025

2025	Bahia Pulp Operations	São Paulo Pulp Operations	Southeast Paper Operations	Northeast Paper Operations	Total
Non-renewable fuel	3,243,320.71	4,358,547.86	8,748.56	560,774.89	8,171,392.01
Renewable fuels	13,372,973.12	55,959,075.73	22,419.20	578,110.36	69,932,578.42
Consumed Energy	0.00	0.00	0.00	0.00	0.00
Energy Purchased	452,061.59	300,468.68	687,809.11	174,033.38	1,614,372.75
Energy Sold	2,073.60	2,147,825.55	0.00	0.00	2,149,899.15
Bracell	17,066,281.82	58,470,266.72	718,976.87	1,312,918.63	77,568,444.03

Beginning in 2025, Bracell started reporting energy consumption outside the organization based on Scope 3 data from our GHG Inventory, in line with GRI guidance.

Energy consumption outside the organization (GJ)

Operating site	2025
Bahia Pulp	1,858,319.69
São Paulo Pulp	8,622,321.30
Southeast Paper	42,667.84
Northeast Paper	3,042.84
Bracell	10,526,351.67

Energy intensity (GJ/adt)¹

Operating site	2023	2024	2025
Bahia Pulp	3.27	3.19	3.34
São Paulo Pulp	2.07	2.12	1.91
Southeast Paper	–	–	2.94
Northeast Paper	–	–	1.75
Total	5.34	5.31	9.95

Note: Energy intensity is the amount of energy required to produce a unit of product or service. We use the metric GJ/adt, indicating energy consumption per tonne of air-dried pulp or paper produced by the Company. Energy intensity data are calculated based on the volume of electricity consumed per tonne of finished product: kraft pulp, dissolving pulp, and Tissue. Additionally, in 2024, Bracell Papéis began integrating its operations into the processes and management procedures of Bracell and the RGE Group. As a result, there is limited availability of operational data due to the prioritization of integration processes during 2023 and 2024.

How our policies and commitments support energy reduction, efficiency and renewable transition

	Energy savings	Energy efficiency	Transition to renewable energy sources
Internal policies and guidelines	Bracell has policies and procedures in place that support efficient energy management, including continuous monitoring, standardized procedures to prevent waste, and preventive and predictive maintenance practices. Energy performance is considered in the technical evaluation of new projects.	Energy efficiency is treated as an operational lever. Energy-related practices include optimizing energy-intensive processes (evaporation, drying, boilers and lime kiln) and pursuing efficient technologies.	Bracell maintains a predominantly renewable energy mix, largely based on biomass and black liquor. We use cogeneration systems to meet our steam and electricity needs, reducing dependence on fossil fuels.
Public commitments or targets	The Bracell 2030 roadmap sets a target to reduce GHG emission intensity by 75% by 2030, by pursuing reductions in energy consumption.	Energy consumption and energy intensity indicators are disclosed annually in our Sustainability Report.	Bracell publicly communicates that it maintains a predominantly renewable energy mix, supported by the use of biomass.

 

 

 Non-renewable energy consumption (GJ) 

2025			Bahia Pulp Operations	São Paulo Pulp Operations	Southeast Paper Operations	Northeast Paper Operations	Bracell
Diesel Oil			124,855.05	1,967,074.29	5,700.08	555,476.00	2,653,105.43
Gasoline			8,423.19	8,499.30	0.00	0.00	16,922.49
LPG			9,724.66	27,673.61	3,048.48	5,298.89	45,745.64
Aviation Kerosene			0.00	1,972.14	0.00	0.00	1,972.14
Aviation Gasoline			0.00	0.00	0.00	0.00	0.00
Combustion Oil			0.00	571,251.37	0.00	0.00	571,251.37
Natural Gas			3,100,317.80	1,782,077.14	0.00	0.00	4,882,394.94
Bracell			3,243,320.71	4,358,547.86	8,748.56	560,774.89	8,171,392.01

Renewable energy consumption (GJ)

2025			Bahia Pulp Operations	São Paulo Pulp Operations	Southeast Paper Operations	Northeast Paper Operations	Bracell
Ethanol			515.33	9,780.93	0.00	0.00	10,296.26
Hydrated Ethyl Alcohol			0.00	98.52	0.00	0.00	98.52
Anhydrous Ethyl Alcohol			0.00	0.00	0.00	0.00	0.00
Black Liquor			13,372,457.79	55,251,407.84	0.00	0.00	68,623,865.64
Biomass			0.00	1,346,378.94	0.00	578,110.36	1,924,489.30
Natural Gas			0.00	0.00	22,419.20	0.00	22.419,200,00
Renewable Methanol			0.00	39,218.61	0.00	0.00	39,218.61
Bracell			13,372,973.12	56,646,884.84	22,419.20	578,110.36	70,620,387.53

 

Self‑generated energy consumed within the organization (GJ)

2025	Bahia Pulp Operations	São Paulo Pulp Operations	Southeast Paper Operations	Northeast Paper Operations	Bracell	Type of non‑renewable source	Type of renewable source
Electricity	1,536,816.25	5,852,822.44	709,987.48	175,074.12	8,274,700.29	Paper and pulp production	Biomass, black liquor and solar energy
Heating	0.00	0.00	0.00	0.00	0.00	–	–
Cooling	0.00	0.00	0.00	0.00	0.00	–	–
Steam	1,572,591.63	45,253,750.42	1,279,197.50	423,693.74	48,529,233.29	Paper and pulp production	Biomass and black liquor
Bracell	3,109,407.88	51,106,572.86	1,989,184.98	598,767.86	56,803,933.58	Paper and pulp production	Biomass, black liquor and solar energy

 

Self‑generated non‑renewable energy sold (GJ)

2025	Bahia Pulp Operations	São Paulo Pulp Operations	Southeast Paper Operations	Northeast Paper Operations	Bracell
Electricity	0.00	0.00	0.00	0.00	0.00
Heating	0.00	0.00	0.00	0.00	0.00
Cooling	0.00	0.00	0.00	0.00	0.00
Steam	0.00	0.00	0.00	0.00	0.00
Bracell	0.00	0.00	0.00	0.00	0.00

 

Self‑generated renewable energy sold (GJ)

2025	Bahia Pulp Operations	São Paulo Pulp Operations	Southeast Paper Operations	Northeast Paper Operations	Bracell	Type of renewable source
Electricity	2,073.60	1,814,442.55	0.00	0.00	1,816,516.15	Biomass and black liquor
Heating	0.00	0.00	0.00	0.00	0.00	Biomass and black liquor
Cooling	0.00	0.00	0.00	0.00	0.00	Biomass and black liquor
Steam	0.00	333,383.00	0.00	0.00	333,383.00	Biomass and black liquor
Bracell	2,073.60	2,147,825.55	0.00	0.00	2,149,899.15	Biomass and black liquor

Note: The volume of energy sold in 2025 was lower compared to 2024 due to increased internal energy consumption within the organization. This higher consumption resulted from the start of operations at the São Paulo Paper unit in the second half of 2024, which has been operating at full capacity from 2025 onwards. At the Bahia pulp mill, internal energy consumption also increased, reducing the volume available for sale.

Note:

Reason for omission – GRI 103-2 (e): Not applicable.

Reason: Bracell does not use contractual instruments to claim renewable energy consumption in operations. Our operations generate renewable energy from biomass, which is consumed in our facilities and supplied to the national grid. In addition, we only use electricity from the national grid during maintenance shutdowns. In these cases, we source electricity from the national grid, which derives approximately 85% of its electricity from renewable sources—mainly hydro, wind, and solar. We also sell our surplus electricity output to the free market with I-REC certification, contributing to Brazil’s high share of clean energy.

Significant energy consumption in the upstream value chain (GJ)

2025	Bahia Pulp	São Paulo Pulp	Southeast Paper	Northeast Paper	Total
	Energy in GJ	Energy in GJ	Energy in GJ	Energy in GJ	Energy in GJ
Diesel	439,155.80	298,694.39	0.00	3,042.84	740,893.03
Gasoline	16,634.70	65,851.48	0.00	0.00	82,486.17
LPG (Liquefied Petroleum Gas)	0.00	0.00	0.00	0.00	0.00
Aviation kerosene	3.23	9.04	0.00	0.00	12.27
Aviation gasoline	0.00	0.00	0.00	0.00	0.00
Fuel oil	0.00	0.00	0.00	0.00	0.00
Natural Gas	0.00	0.00	0.00	0.00	0.00
Ethanol	956.58	1,864.19	0.00	0.00	2,820.77
Hydrated Ethyl Alcohol	0.00	0.00	0.00	0.00	0.00
Anhydrous Ethyl Alcohol	0.00	0.00	0.00	0.00	0.00
Black Liquor	0.00	0.00	0.00	0.00	0.00
Biomass	0.00	0.00	0.00	0.00	0.00
Renewable Methanol	0.00	0.00	0.00	0.00	0.00
Bracell	456,750.31	366,419.09	0.00	3,042.84	826,212.24

 

Significant energy consumption in the downstream value chain (GJ)

2025	Bahia Pulp	São Paulo Pulp	Southeast Paper	Northeast Paper	Total
	Energy in GJ	Energy in GJ	Energy in GJ	Energy in GJ	Energy in GJ
Diesel	0.00	21,561.64	42,667.84	0.00	64,229.49
Gasoline	0.00	0.00	0.00	0.00	0.00
LPG (Liquefied Petroleum Gas)	0.00	0.00	0.00	0.00	0.00
Aviation kerosene	0.00	0.00	0.00	0.00	0.00
Aviation gasoline	0.00	0.00	0.00	0.00	0.00
Fuel oil	1,401,569.38	8,234,340.57	0.00	0.00	9,635,909.95
Natural Gas	0.00	0.00	0.00	0.00	0.00
Ethanol	0.00	0.00	0.00	0.00	0.00
Hydrated Ethyl Alcohol	0.00	0.00	0.00	0.00	0.00
Anhydrous Ethyl Alcohol	0.00	0.00	0.00	0.00	0.00
Black Liquor	0.00	0.00	0.00	0.00	0.00
Biomass	0.00	0.00	0.00	0.00	0.00
Renewable Methanol	0.00	0.00	0.00	0.00	0.00
Bracell	1,401,569.38	8,255,902.21	85,335.69	0.00	9,700,139.44

 

Significant energy consumption upstream and downstream

2025	Bahia Pulp	São Paulo Pulp	Southeast Paper	Northeast Paper	Total
Upstream	456,750.31	366,419.09	0.00	3,042.84	826,212.24
Downstream	1,401,569.38	8,255,902.21	42,667.84	0.00	9,700,139.44
Total	1,858,319.69	8,622,321.30	42,667.84	3,042.84	10,526,351.67

Energy intensity (GJ/adt)1

Operating site	2023	2024	2025
Bahia Pulp	3.27	3.19	3.34
São Paulo Pulp	2.07	2.12	1.91
Southeast Paper	–	–	2.94
Northeast Paper	–	–	1.75
Total	5.34	5.31	9.95

Note: Energy intensity is the amount of energy required to produce a unit of product or service. We use the metric GJ/adt, indicating energy consumption per tonne of air-dried pulp or paper produced by the Company. Energy intensity data are calculated based on the volume of electricity consumed per tonne of finished product: kraft pulp, dissolving pulp, and Tissue. Additionally, in 2024, Bracell Papéis began integrating its operations into the processes and management procedures of Bracell and the RGE Group. As a result, there is limited availability of operational data due to the prioritization of integration processes during 2023 and 2024.

In 2025, Bracell’s Scope 1 fossil emissions accounted for 52% of the total, amounting to 976,021 tCO₂e, a 33% increase compared to the previous year. This increase was mainly driven by higher consumption of fossil fuels in industrial operations and an expanded wood sourcing radius in forest logistics, consequently increasing total diesel consumption.

The Company reports biogenic CO₂ emissions separately, including those associated with biomass combustion, the use of renewable biofuels in the fleet, the occurrence of forest fires, and the dynamics of eucalyptus management. In accordance with the GHG Protocol and the IPCC, these emissions are accounted for separately from fossil emissions, as they originate from renewable biomass that removes CO₂ from the atmosphere during its growth.

The inventory is prepared in accordance with the guidelines of ABNT NBR ISO 14064-1, the GHG Protocol, and the methodologies of the Intergovernmental Panel on Climate Change (IPCC), with consolidation based on operational control, using 2025 as the corporate base year and applying the operational control approach. The greenhouse gases considered in the calculation of Scope 1 emissions were CO₂, CH₄, N₂O, HFCs, and SF₆.

Scope 1 category	2023		2024		2025
	Emissions (tCO2e)	Percent Share (%)	Emissions  (tCO2e)	Percent Share (%)	Emissions  (tCO2e)	Percent Share (%)
Mobile combustion	121,700.47	20.40	214,992.18	29.40	368,614.50	37.8%
Stationary combustion	309,539.10	51.80	296,113.67	40.50	365,014.61	37.4%
Generated waste and effluents	596.11	0.10	13,974.30	1.90	13,838.01	1.4%
Fugitive	5,231.53	7,936.98	12,284.43	1.70	7,955.53	0.8%
Agricultural operations	155,955.17	175,603.38	154,586.98	21.10	175,603.38	18.0%
Industrial Processes	–	–	–	–	38,759.14	4.0%
Land-use change	4,431.98	0.70	39,411.23	5.40	6,235.71	0.6%
Total	597,454.38	100.00	731,362.80	100.00	976,020.89	100%

Emissions (tCO2e)	2023	2024	2025
Scope 1	597,454.00	731,362.80	976,020.89
Scope 1 – Biogenic	10,810,512.98	9,156,105.51	18,096,569.75

Carbon balance

Carbon Balance (tCO₂e)

Emissions	2023	2024	2025
Total (S1 + S2 + S3)	1,701,669.00	1,716,315.84	1,888,826.66
Scope 1	597,454.00	731,362.80	976,020.89
Scope 2	9,611.00	13,213.63	23,917.20
Scope 3	1,094,603.00	971,739.41	888,888.57
Biogenic LULUCF emissions	3,940,391.00	2,227,222.45	11,315,321.66
Biogenic removals	-1,286,441.00	-4,119,009.65	14,748,445.83
Balance	4,355,619.00	-175,471.36	-1,544,297.51

Carbon Balance (%)

Emissions	2023	2024	2025
Total (S1 + S2 + S3)	100%	100%	100%
Scope 1	35.11%	42.61%	51.67%
Scope 2	0.56%	0.77%	1.27%
Scope 3	64.33%	56.62%	47.06%

 

In 2025, Scope 2 emissions, calculated using the location-based approach, accounted for 1% of our total emissions, totaling 23,917 tCO₂e—an increase of 81% compared to the previous year. This increase was mainly driven by the inclusion of the Papéis Sudeste and Papéis Nordeste operations in the 2025 inventory, which together represent 54% of Bracell’s Scope 2 emissions.

The inventory is prepared in accordance with the guidelines of ABNT NBR ISO 14064-1, the GHG Protocol, and the methodologies of the Intergovernmental Panel on Climate Change (IPCC), with consolidation based on operational control, using 2025 as the corporate base year and applying the operational control approach.

Scope 2 category	2023	2024	2025
	Emissions (tCO2e)	Emissions (tCO2e)	Emissions (tCO2e)
Electricity purchased	9,611.00	13,213.63	23,917.20
Total	9,611.00	13,213.63	23,917.20

Carbon balance

In 2025, Bracell generated XX tCO₂e of anthropogenic emissions from fossil fuel combustion (across Scopes 1, 2 and 3), XX tCO₂e of biogenic LULUCF emissions and removed XX tCO₂e through our planted and native forests. As a result, the net emissions balance was -XX tCO₂e, indicating a positive impact on climate.

In 2025, we achieved significant reductions in stationary combustion, including a decrease in natural gas consumption and increased use of biomass in our gasifiers.

Carbon Balance (tCO₂e)

Emissions	2023	2024	2025
Total (S1 + S2 + S3)	1,701,669.00	1,716,315.84	1,888,826.67
Scope 1	597,454.00	731,362.80	976,020.89
Scope 2	9,611.00	13,213.63	23,917.20
Scope 3	1,094,603.00	971,739.41	888,888.57
Biogenic LULUCF emissions	3,940,391.00	2,227,222.45	11,315,321.66
Biogenic removals	-1,286,441.00	-4,119,009.65	14,748,445.83
Balance	4,355,619.00	-175,471.36	-1,544,297.51

Carbon Balance (%)

Emissions	2023	2024	2025
Total (S1 + S2 + S3)	100%	100%	100%
Scope 1	35.11%	42.61%	51.67%
Scope 2	0.56%	0.77%	1.27%
Scope 3	64.33%	56.62%	47.06%

In 2025, Scope 3 accounted for 47% of our total emissions, totaling 888,889 tCO₂e. Emissions decreased by 9% compared to 2024, mainly due to the reallocation of rail transport emissions to Scope 1 and a reduction in average distances traveled per export shipment.

The inventory is prepared in accordance with the guidelines of ABNT NBR ISO 14064-1, the GHG Protocol, and the methodologies of the Intergovernmental Panel on Climate Change (IPCC), with consolidation based on operational control, using 2025 as the corporate base year and applying the operational control approach. The greenhouse gases considered in the calculation of Scope 1 emissions were CO₂, CH₄, N₂O, HFCs, and SF₆.

Scope 3 category	2023		2024		2025
	Emissions (tCO2e)	Percent Share (%)	Emissions (tCO2e)	Percent Share (%)	Emissions (tCO2e)	Percent Share (%)
Purchased Goods and Services	63,152,273.00	5.77%	47,464.05	4.88%	25,434.74	3%
Upstream T&D	62,808,497.00	5.74%	61,756.05	6.36%	30,817.58	3%
Operational Solid Waste	41,579,743.00	3.80%	26,523.86	2.73%	31,342.19	4%
Business travel	547,172.00	0.05%	364.99	0.04%	489.68	0%
Employee Commuting	12,744,223.00	1.16%	9,603.34	0.99%	12,587.06	1%
Downstream T&D	913,771,498.00	83.48%	826,027.12	85.01%	788,217.31	89%
Total	1,094,603.40	100%	971,739.41	100.00%	888,888.57	100%

Carbon balance

Carbon Balance (tCO₂e)

Emissions	2023	2024	2025
Total (S1 + S2 + S3)	1,701,669.00	1,716,315.84	1,888,826.67
Scope 1	597,454.00	731,362.80	976,020.89
Scope 2	9,611.00	13,213.63	23,917.20
Scope 3	1,094,603.00	971,739.41	888,888.57
Biogenic LULUCF emissions	3,940,391.00	2,227,222.45	11,315,321.66
Biogenic removals	-1,286,441.00	-4,119,009.65	14,748,445.83
Balance	4,355,619.00	-175,471.36	-1,544,297.51

Carbon Balance (%)

Emissions	2023	2024	2025
Total (S1 + S2 + S3)	100%	100%	100%
Scope 1	35.11%	42.61%	51.67%
Scope 2	0.56%	0.77%	1.27%
Scope 3	64.33%	56.62%	47.06%

Emissions (tCO2e)	2023	2024	2025
Scopes 1 and 2	0.174	0.208	0.255

In 2025, emissions increased by 10%. This rise is associated with higher emissions from both mobile and stationary combustion categories.

The increase in stationary emissions is linked to higher consumption of fossil fuels at the plant, while mobile emissions are associated with increased distances traveled in wood transportation.

Bracell’s Greenhouse Gas (GHG) Inventory is prepared in accordance with the latest guidelines of ABNT NBR ISO 14064-1, the GHG Protocol Corporate Standard, the Brazilian GHG Protocol Program, and the quantification methodologies established by the Intergovernmental Panel on Climate Change (IPCC).

Operating site	Total emissions 2023 (tCO2e)	Total emissions 2024 (tCO2e)	Total emissions 2025 (tCO2e)	Reduction in emissions (tCO2e)
São Paulo Pulp	1,204,383.06	1,235,985.47	1,256,335.44	20,351.05
Bahia Pulp	367,239.46	357,234.41	394,822.92	36,930.30
Southeast Paper Operations	–	–	14,099.03	14,099.03
Northeast Paper Operations	–	–	89,560.30	89,560.30
Mato Grosso do Sul Forestry	–	123,095.97	134,008.97	10,913.00
Total	1,701,669.08	1,716,315.84	1,888,826,658.00	171,853,686.00

 

Among ozone-depleting substances (ODS), Bracell emitted a total of 4,890.11 tCO₂e in 2025, including HCFC-22 and HCFC-141b.

Bracell’s Greenhouse Gas Inventory is prepared in accordance with the latest guidelines of ABNT NBR ISO 14064-1, the GHG Protocol Corporate Standard, the Brazilian GHG Protocol Program and IPCC quantification methodologies.

Operating site	2023			2024			2025
	HCFC-22 (tCO2e)	HCFC-141b (tCO2e)	Total (tCO2e)	HCFC-22 (tCO2e)	HCFC-141b (tCO2e)	Total (tCO2e)	HCFC-22 (tCO2e)	HCFC-141b (tCO2e)	Total (tCO2e)
São Paulo Pulp	1.795,20	10,64	1.805,84	3.498,18	92,28	3.590,46	756,80	4.692	5.448,80
Bahia Pulp	538,28	0,00	538,28	1.299,65	0,00	1.299,65	4.082,14	0,00	4.082,14
Southeast Paper	–	–	–	–	–	–	0,00	0,00	0,00
Northeast Paper	–	–	–	–	–	–	0,00	0,00	0,00
Mato Grosso do Sul Forestry	–	–	–	–	–	–	31,68	0,00	31,68
Bracell	2.333,48	10,64	2.344,12	4.797,83	92,28	4.890,11	4.870,26	4.692,00	9.562,62

Note: when these substances reach the stratosphere, they degrade ozone, which acts as a shield against the sun’s ultraviolet (UV) radiation. Controlling these emissions is essential to safeguard life on Earth and mitigate global environmental imbalances.

Total emissions across the organization – operational control approach

Scope	Gas	2023		2024		2025
		In Gas Tonnes (t)	In metric tons of CO2 equivalent (tCO2e)	In Gas Tonnes (t)	In metric tons of CO2 equivalent (tCO2e)	In Gas Tonnes (t)	In metric tons of CO2 equivalent (tCO2e)
Scope 1	CO2	491.508,77	491.508,77	561.224,17	561.224,17	777.645,307	777.645,30
	CH4	433,48	12.137,29	1.919,79	53.782,94	969,01	27.132,31
	N2O	334,36	88.606,19	291,54	104.422,94	619,16	164.078,54
	HFC-32	0,00	0,00	2,91	1.970,24	0,94	633,47
	HFC-125	0,00	0,00	2,91	9.242,76	0,94	2.976,25
	HFC-134a	0,00	0,00	0,55	719,22	2,73	3.555,02
	HFC-152a	0,00	0,00	0,00	0,46	0,00	0,00
	SF6	0,00	0,00	0,00	0,05	0,00	0,00
Total Scope 1		492.280,60	597.451,49	551.283,74	692.013,28	779.238,08	976.020,89
Scope 2	CO2	9.611,20	9.611,20	13.213,63	13.213,63	23.917,20	23.917,20
Total Scope 2		9.611,20	9.611,20	13.213,63	13.213,63	23.917,20	23.917,20
Scope 3	CO2	1.035.677,11	1.035.677,11	910.252,13	910.252,13	847.425,94	847.425,94
	CH4	1.504,97	42.138,76	947,31	26.218,61	654,06	18.313,71
	N2O	63,35	16.787,53	140,08	35.268,67	87,35	9.611,20
Total Scope 3		1.037.245,42	16.787,53	911.339,52	971.739,41	848.167,36	888.888,57

Nitrogen oxides (NOx), sulfur oxides (SOx), and other significant air emissions

Substance	Site	Bahia Pulp			São Paulo Pulp			Bracell
		2023	2024	2025	2023	2024	2025	2023	2024	2025
NOX	t	451.93	448.42	384.55	2,847.74	3,131.48	2,933.80	3,299.64	3,579.90	3,318.35
SOX	t	30.47	39.65	40.27	139.89	59.05	55.13	170.36	98.70	95.40
MP	t	197.30	199.99	220.60	643.26	473.22	433.27	840.56	673.21	653.87
TRS	t	2.70	12.57	16.12	43.04	30.93	93.00	45.74	43.50	109.12

Notas: 1. The calculation of emissions was carried out through direct measurement using continuous analyzers installed on the production line. All reported values are expressed in t/year.

2. In the state of São Paulo, Bracell’s atmospheric emissions were calculated based on the emission factors provided by the Environmental Company of the State of São Paulo (Cetesb, in Portuguese). The methodology adopted followed Board Decision No. 10/2010/P of January 12, 2010.

3. In the state of Bahia, the methodology used followed the guidelines of Ordinance No. 18.841, dated August 3, 2019, specifically regarding the maintenance of the atmospheric emissions monitoring plan to ensure compliance with daily average standards, covering TRS, PM, SOx, and NOx. The provisions of Conama Resolution No. 382, dated December 26, 2006, were also followed.

4. As Bracell’s operations do not involve processes that result in the significant emission of Persistent Organic Pollutants (POPs), Hazardous Air Pollutants (HAPs), or Volatile Organic Compounds (VOCs), we do not conduct monitoring of these pollutants.

5. Due to the materiality of the topic, the Company began reporting the data in 2023, including emissions of NOx, SO₂, and particulate matter.

6. The data include disclosures as part of the EU Ecolabel and Nordic Swan schemes for kraft pulp.

7. Nitrogen oxides (NOx), sulfur oxides (SOx), particulate matter (PM), and total reduced sulfur compounds (TRS) are among the most critical air pollutants due to their direct and indirect impacts on the climate and human health. These pollutants are primarily generated from the combustion of fossil fuels and industrial processes. They affect the environment and human health by contributing to the formation of acid rain, which damages ecosystems and infrastructure, and by increasing the occurrence of respiratory problems. Therefore, they reinforce the need for controlling and reducing their emissions to mitigate their impacts.

In 2025, Bracell’s Scope 1 fossil emissions accounted for 52% of the total, amounting to 976,020.89 tCO₂e, a 33% increase compared to the previous year. This increase was mainly driven by higher consumption of fossil fuels in industrial operations and an expanded wood sourcing radius in forest logistics, consequently increasing total diesel consumption.

The Company reports biogenic CO₂ emissions separately, including those associated with biomass combustion, the use of renewable biofuels in the fleet, the occurrence of forest fires, and the dynamics of eucalyptus management. In accordance with the GHG Protocol and the IPCC, these emissions are accounted for separately from fossil emissions, as they originate from renewable biomass that removes CO₂ from the atmosphere during its growth.

The inventory is prepared in accordance with the guidelines of ABNT NBR ISO 14064-1, the GHG Protocol, and the methodologies of the Intergovernmental Panel on Climate Change (IPCC), with consolidation based on operational control, using 2025 as the corporate base year and applying the operational control approach. The greenhouse gases considered in the calculation of Scope 1 emissions were CO₂, CH₄, N₂O, HFCs, and SF₆.

Emissions (tCO2e)	2023	2024	2025
Scope 1	597,454.00	731,362.80	976,020.89
Scope 1 – Biogenic	10,810,512.98	9,156,105.51	18,096,569.75

Note: The Scope 1 biogenic emissions above include stationary combustion (biomass), mobile combustion, agricultural activities, and land-use change.

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

Nitrogen oxides (NOx), sulfur oxides (SOx), and other significant air emissions
Substance	Site	Bahia Pulp			São Paulo Pulp			Bracell
		2023	2024	2025	2023	2024	2025	2023	2024	2025
NOX	t	451.93	448.42	384.55	2,847.74	3,131.48	2,933.80	3,299.64	3,579.90	3,318.35
SOX	t	30.47	39.65	40.27	139.89	59.05	55.13	170.36	98.70	95.40
MP	t	197.30	199.99	220.60	643.26	473.22	433.27	840.56	673.21	653.87
TRS	t	2.70	12.57	16.12	43.04	30.93	93.00	45.74	43.50	109.12

 

Note 1: Emissions were calculated through direct measurement using continuous analyzers in the production line. All reported values are expressed in t/year.

Note 2: In the state of São Paulo, Bracell’s atmospheric emissions were calculated based on emission factors provided by the Environmental Company of the State of São Paulo (Cetesb). The methodology followed Board Decision No. 10/2010/P, dated January 12, 2010.

Note 3: In Bahia, the methodology followed the guidelines established by Ordinance No. 18,841, dated August 3, 2019, specifically regarding the maintenance of the atmospheric emissions monitoring plan to ensure compliance with standards based on daily average values, covering TRS, PM, SOx, and NOx. The provisions of CONAMA Resolution No. 382, dated December 26, 2006, were also followed.

Note 4: As Bracell’s operations do not involve processes that result in significant emissions of Persistent Organic Pollutants (POPs), Hazardous Air Pollutants (HAPs), and Volatile Organic Compounds (VOCs), these pollutants are not monitored.

Note 5: Due to the materiality of the topic, the Company began reporting these data from 2023 onwards, including emissions of NOx, SO₂, and particulate matter.

Note 6: Data consider reporting for EU Ecolabel and Nordic Swan certifications for kraft pulp.

Note 7: Nitrogen oxides (NOx), sulfur oxides (SOx), particulate matter (PM), and total reduced sulfur compounds (TRS) are among the most critical air pollutants due to their direct and indirect impacts on climate and human health. These pollutants are mainly generated by the combustion of fossil fuels and industrial processes.

These substances affect the environment and human health, contributing to the formation of acid rain, which damages ecosystems and structures, and to the occurrence of respiratory problems. Therefore, they reinforce the need to control and reduce emissions to mitigate their impacts.

We have set a target to ensure that our mills are self-sufficient in energy generation. To the extent possible, we use electricity from the national grid only during scheduled maintenance shutdowns. In these cases, we source electricity from the national grid, which derives approximately 85% of its electricity from renewable sources—mainly hydro, wind, and solar.

Electricity is also purchased for forestry and port operations, nurseries and offices.

Brazil’s energy mix is an important advantage for Bracell’s operations, with a high share of renewable sources such as hydro, wind, and solar. This improves operations efficiency and reflects our commitment to sustainable practices. Although variability in energy supply can affect availability and cost during dry periods, a diversified mix of predominantly renewable sources helps mitigate these impacts and ensure stable and sustainable operations.

Total energy consumed	Bahia Pulp	São Paulo Pulp	Southeast Paper1	Northeast Paper
Total energy consumption (GJ)²	17,066,281.82	58,470,266.72	718,976.87	1,312,918.63
Percentage grid electricity	2.65%	0.51%	0.00%	13.26%
Percentage biomass³	78.36%	87.41%	95.66%	45.61%
Percentage of renewable energy (excluding biomass)	0.00%	0.08%	3.12%	0.00%
Self-generated energy (GJ)	3,111,481.48	53,254,398.41	22.419.20	598.767.86

Notes:

1. Our Southeast paper operations use electricity generated as part of the pulp production process. As a result, this site does not purchase energy from external sources.
2. Energy consumed = energy generated + energy purchased – energy sold.
3. Both black liquor and biomass were included in the “Percentage biomass” metric.