GRI 3-3 Management of material topics: Supply chain management
We promote economic development in the regions where we operate, including by engaging local suppliers to supply products and services for our forestry, mill, logistics (pulpwood, pulp and paper), and administrative operations.
Suppliers of inputs, equipment, and services that are directly involved in our operations are evaluated throughout a process that begins with supplier onboarding and ends upon contract completion.
Our approach to procurement and supplier management follows corporate policies and internal procedures within our Integrated Management System, which governs social (occupational health, workplace safety, labor rights, child and adolescent rights, Diversity & Inclusion, human rights, social risks and impacts), environmental (water, effluents, waste, energy, environmental licensing, forest management plans, environmental risks and impacts), and governance (compliance, ethics, unfair competition, conflicts of interest, and anti-corruption) matters. Internal standards are developed in compliance with legislation, forestry and industrial certification standards, international sustainability protocols, and other regulatory standards. Operating procedures within the Integrated Management System are internal, while our corporate policies are available on the Bracell website. (Read more about the Integrated Management System under GRI 2-16 Communication of critical concerns).
Processes involved in supplier management:
– Third-party due diligence: before formal engagement, all suppliers undergo due diligence screening. This process is conducted in accordance with Bracell’s policies on Third-Party Due Diligence, Supplier Qualification and Evaluation, Sustainability, and Human Rights.
– Environmental compliance validation: as part of the onboarding and screening process, suppliers acknowledge and agree to follow Bracell’s Procurement Code of Ethics. In our operations, suppliers are evaluated regarding compliance and their management of environmental risks and impacts.
– Social compliance validation: social requirements and risks are assessed as part of our approach to managing contractors operating directly at our facilities. The contractor management process includes verifying compliance with labor rights such as compensation, collective bargaining agreements, working hours, vacation, weekly paid rest, training, occupational health and safety, among other mandatory requirements for managing social risks. This is done through the Contract Management System, where contractual documents are stored and compliance with legal requirements is verified.
– Supplier evaluation and qualification: we assess suppliers’ capability to deliver products and services in accordance with legal, certification, and technical standards.
– Audits: we perform audits on all operations employing contractors.
All suppliers are screened and must meet a minimum score to retain their supplier status. The findings from screening may prevent the relevant supplier from being awarded the contract or the negotiations from proceeding.
Bracell has not set specific sustainability targets for the supply chain and follows the management practices presented under GRI 414 – Supplier social assessment.
Human rights
We monitor our suppliers to ensure human rights are upheld, based on document reviews, third-party contract management, and audits conducted in our operations.
Our Human Rights Policy formalizes our commitment to sustainable development and best social practices through which we seek to positively impact people and communities. This policy outlines guidelines for managing human rights impacts and mandates compliance with labor laws.
This Human Rights Policy applies to all Bracell operations and to our relationships with all stakeholders, including contractors and subcontractors, local communities, business partners, the Forestry Partnership Program, customers, financial institutions, government organizations, trade associations, suppliers, and other priority stakeholders. The principles outlined in this code are also disseminated throughout our value chain.
Our Code of Conduct, Code of Procurement Ethics, Sustainability Policy and Pulpwood and Fiber Sourcing Policy establish guidelines on mitigating human rights risks and impacts and govern our contracts with suppliers and contractors. These policies support us in mitigating risks related to child labor and forced and slave labor in our value chain, and ensuring compliance with labor, child and adolescent rights.
This set of Company policies is aligned with international certification requirements and Brazilian laws and regulations, in particular the Regulatory Standards (NRs) of the Ministry of Labor and Employment.
We also continuously monitor the areas surrounding our forestry operations to help safeguard the human rights of communities near our eucalyptus plantations. This is done as part of a pulpwood traceability process.
To reduce actual impacts on communities near our industrial operations, we identify potential impacts to mitigate identified risks. We also publicize our official channels for submitting concerns, complaints and reports. (Read more about our channels and how cases are handled under GRI 2-16 Communication of critical concerns).
We conduct both internal and external audits to manage environmental, social, management, and quality requirements. These requirements are assessed against the ISO 9001:2015, ISO 14001:2015 and Program for the Endorsement of Forest Certification (PEFC) requirements. We also undergo external audits based on the IFC (International Finance Corporation) Performance Standards at our Lençóis Paulista (SP) site, a requirement in connection with the finance secured for Project Star—two newbuild flexible pulp lines, in operation since 2021.
Managing potential and actual impacts
As part of our supplier management processes, we identify and analyze potential and actual impacts related to them. Both positive and negative aspects are considered in this process.
- Potential negative impacts: we identified potential impacts on product quality (kraft pulp, dissolving pulp, specialty pulp, and tissue products) due to quality issues with suppliers. We have internal controls in place to mitigate these risks.
- Actual negative impacts: these include negative social or environmental impacts and/or information security issues involving companies supplying materials and providing services to Bracell, as well as impacts that may occur in our own operations. These impacts are broad in scope and low in intensity. They are also managed through internal processes.
Other actual impacts include violations of human rights, labor rights, and environmental regulations across the value chain. This impact is broad in scope and high in intensity, and is considered a critical issue. These impacts are managed through internal processes.
Goals for 2026
Governance and SRM development
- Create, review and update SRM policies, criteria, methodologies and guidelines
- Deliver training on and communicate SRM practices across business units, Procurement and internal functions
Supplier segmentation
- Implement a corporate supplier segmentation model (strategic, critical and transactional)
- Work closely with Procurement to ensure consistent application across all categories
Performance and relationship assessment
- Review commercial and technical evaluation questionnaires to ensure broader and more effective criteria within the methodology
- Expand the pool of critical suppliers (ISO and business-related) subject to mandatory annual assessments
- Prepare executive reports and support Procurement and technical teams in monitoring action plans
Risk, background checks and critical onboarding
- Apply corporate risk methodologies (financial exposure and dependency), in addition to ESG and compliance criteria, as defined by the CoE
- Enhance the onboarding process for critical suppliers by integrating data from MDM, Compliance, Quality and Safety
Supplier Development Programs
- Conduct capacity-building, continuous improvement and sustainability initiatives with strategic suppliers
- Support Procurement in cascading improvement initiatives and tracking progress
Linkana enhancements
- Implement the requester module
- Launch a new version of Performance Assessments, including a dedicated module for tracking action plans
GRI 308-1 New suppliers that were screened using environmental criteria
Suppliers of equipment, products and services are screened using the approach described under GRI 3-3 Management of material topics: Supply chain management. All suppliers are required to be screened, including new suppliers.
Bracell continuously monitors supplier performance based on ISO 9001:2015, annually assessing suppliers of chemical inputs, transportation, and calibration services. These assessments determine whether they are onboarded, remain in the supply chain, or are terminated. Assessment results are communicated directly to suppliers in a transparent manner.
Audits are periodically carried out in contractors’ operations to ensure compliance with internal policies and environmental, safety, and ethics standards.
Since December 2024, we have used the Linkana platform to enhance supplier screening and monitoring on environmental management criteria, impact prevention, and fulfillment of commitments to sustainable practices. These assessments cover compliance with national and international environmental standards, public data from the Federal Revenue Service, clearance certificates, block lists, and sustainability indexes. After data validation, a confidence score informs risk recommendations and directs the process toward automatic or manual approval workflows.
| Percentage of new suppliers selected based on environmental criteria | 2025 |
| Total number of new suppliers that were considered for contracting | 1,816 |
| Total number of new suppliers contracted based on environmental criteria | 1,776 |
| Percentage of new suppliers contracted based on environmental criteria (%) | 97.80% |
Note: forty international suppliers were not assessed regarding their sustainability management practices under Bracell’s new supplier evaluation methodology. These suppliers were evaluated through the processes reported in our Disclosures Hub in 2024. The new supplier assessment system is currently being structured to enable the review and validation of sustainability-related documentation for international suppliers, and has already been implemented for domestic suppliers. Suppliers not yet evaluated under the new system will be incorporated into the assessment process, ensuring consistent application of environmental and ESG criteria across the entire supplier base.
GRI 308-2 Negative environmental impacts in the supply chain and actions taken
We routinely assess risks and impacts related to our operations’ direct suppliers. Risk and impact assessments are conducted using Bracell’s environmental aspect and impact matrix, which conforms to the requirements of the certification standards applicable to our operations as well as applicable laws and regulations. In 2025, suppliers for whom negative environmental impacts were identified were subject to approval and/or rejection in accordance with internal procedures.
Key environmental risks assessed in the supply chain include deforestation, biodiversity loss, pollution and water withdrawal, nonrenewable energy use, improper waste and effluent disposal, and greenhouse gas (GHG) emissions.
In managing these risks, we conduct internal and external environmental audits that assess compliance with certification standards, internal procedures, and legal requirements. These audits, carried out at least twice a year, cover 18 departments on a sampling basis. In addition, Bracell holds environmental certifications such as ISO 14001 (Environmental Management Systems), NBR 14789 (Sustainable Forest Management), and ISO 19011.
We also conduct regular audits on operations employing contractors. In these audits, we evaluate operational practices for compliance with certification standards, corporate policies, legislation, and regulatory standards on safety, ethics, and compliance.
These audits include supply chain and product life cycle assessments, ensuring operations are aligned with sustainable practices.
Suppliers of inputs, equipment, and services that are directly involved in our operations are evaluated throughout a process that begins with supplier onboarding and ends upon contract completion.
Our approach to procurement and supplier management follows corporate policies and internal procedures within our Integrated Management System, which governs social (occupational health, workplace safety, labor rights, child and adolescent rights, Diversity & Inclusion, human rights, social risks and impacts), environmental (water, effluents, waste, energy, environmental licensing, forest management plans, environmental risks and impacts), and governance (compliance, ethics, unfair competition, conflicts of interest, and anti-corruption) matters.
Internal standards are developed in compliance with legislation, forestry and industrial certification standards, international sustainability protocols, and other regulatory standards.
Operating procedures within the Integrated Management System are internal, while our corporate policies are public on the Bracell website.
Supplier management processes are described under GRI 3-3: Management of material topics: Supply chain management No suppliers operating directly in our facilities were identified as causing significant—actual or potential—negative environmental impacts.
Learn more about supplier social and environmental assessments under GRI 308-1 – New suppliers that were screened using environmental criteria.
| Suppliers with negative environmental impacts | 2025 |
| Number of suppliers assessed for environmental impacts | 1,776 |
| Number of suppliers identified as having significant actual and potential negative environmental impacts | 33 |
| Significant actual and potential negative environmental impacts identified in the supply chain | 1 – Environmental fines – Ibama (Headquarters and branches) 2 – Environmental fines – Ibama (Partners/Shareholders) 3 – Embargoed areas – Ibama (Headquarters and branches) 4 – Embargoed areas – Ibama (Partners/Shareholders) |
| Number of suppliers identified as causing significant actual and potential negative environmental impacts, for whom improvements were agreed as a result of the assessment | 32 |
| Percentage of suppliers identified as causing significant actual and potential negative environmental impacts, with whom improvements were agreed as a result of the assessment | 96.97% |
| Number of suppliers identified as causing significant actual and potential negative environmental impacts with whom business relationships were terminated as a result of the assessment | 1 |
| Percentage of suppliers identified as causing significant actual and potential negative environmental impacts with whom business relationships were terminated as a result of the assessment | 3.03% |
| Reasons for terminating the business relationship as identified through the assessment | Issue in supplier approval documentation |
Note: in 2025, 32 suppliers approved under Bracell’s procurement process were found to have environmental nonconformities. However, they remained approved based on Linkana’s structured risk-management methodology, which assigns supplier ratings from A to E across Compliance, Environmental Legal, and Financial dimensions. Following a comprehensive review—including Compliance validation (when applicable), environmental impact assessment, and materiality analysis—the nonconformities were deemed non-critical to operational risks. For each case, corrective action and follow-up plans were formalized in accordance with Bracell’s supplier approval documentation matrix.
GRI 407-1 Operations and suppliers in which the right to freedom of association and collective bargaining may be at risk
Bracell screens 100% of its suppliers for compliance with labor laws and applicable collective bargaining agreements. During the reporting period, no operations or suppliers were identified as presenting significant risk of violations of the right to freedom of association or collective bargaining. Suppliers are monitored through a third-party management system and on-site audits, which include verification of collective bargaining agreement clauses and compliance with certification standards; non-compliance leads to contractual penalties and suspension of payments until the issue is cured.
We reaffirm our commitment to protecting labor rights by providing a safe, inclusive, and respectful work environment. Our internal Human Resources policy upholds diversity, equity, and fairness, ensuring full compliance with local and international laws and regulations. This ensures that freedom of association rights are always protected and upheld.
GRI 408-1 Operations and suppliers at significant risk for incidents of child labor
Bracell does not have, and has never had, operations involving child labor or young workers exposed to hazardous work.
We consider operations that carry potential risks of child labor or hazardous tasks involving young workers to include planting, road construction and maintenance, and the maintenance of forestry machinery and equipment. These operations are located in the regions where our industrial sites are based, namely in the states of São Paulo and Bahia, including areas operated by third parties.
We have strict preventive measures in place to mitigate any risk related to this issue. For contractor workers, we require documentation and conduct regular visits to forestry operations, carried out by our Internal Audit and Certification teams. Bracell’s compliance team provides ISO 37001 certification training to ensure best-practice management of compliance systems.
During onboarding for both employees and contractor, our Code of Conduct is presented and made available in printed and online versions, accessible via QR code, along with documents such as our Anti-Corruption and Anti-Bribery Policy and the Human Rights Policy, available on the Bracell website. Our Human Rights Policy, which applies to employees, contractors, and subcontractors, emphasizes our zero-tolerance stance on child labor and forced or compulsory labor.
All contracts signed with third parties or subcontractors include standard clauses that ensure zero tolerance for child labor.
Child labor is listed in our compliance matrix as a serious violation. Identified potential causes include: activities with long shifts and high demand for operational labor; high levels of outsourcing; and lack of monitoring at worksites managed by contractors, especially in rural areas.
Audits of operations
We conduct both internal and external audits to manage environmental, social, management, and quality requirements. These requirements are assessed against the ISO 9001:2015, ISO 14001:2015 and Program for the Endorsement of Forest Certification (PEFC) requirements. We also undergo external audits based on the IFC (International Finance Corporation) Performance Standards at our Lençóis Paulista (SP) site, a requirement in connection with the finance secured for Project Star—two new-build flexible pulp lines, in operation since 2021.
Audits are periodically carried out in contractors’ operations to ensure compliance with internal policies and environmental, safety, and ethics standards. In 2025, 15 out of 21 active environment-related suppliers underwent due diligence.
Risk management and classification
During monitoring of the overall supplier base, 47 partners were identified as having exposure to the risk of child labor. Of these, 16 were active suppliers during the 2025 reporting year and underwent corporate due diligence.
Bracell uses the Linkana platform to classify supplier risk based on reviewed documentation and ESG criteria. Each document is assigned a score (0 to 100) according to its level of criticality. Confirmed cases of child labor or slave-like labor result in the maximum score, automatically classifying the supplier as critical.
Risk levels and approval thresholds
The system consolidates non-conformities and assigns a risk level from A to E:
- Low risk (A/B): No additional approval required.
- Medium risk (C): Requires approval from Procurement.
- High or critical risk (D/E): Requires a Compliance review, in accordance with the Supplier Onboarding and Management Procedure.
Guidelines for continuity and zero tolerance
For level D or E risks, Compliance assesses fitness for onboarding and may recommend mitigation measures or specific contractual clauses. However, in confirmed cases of child labor or forced labor, the policy is zero tolerance: the supplier is mandatorily rejected, blocked in the SAP system and continuation of the contract is blocked.
GRI 409-1 Operations and suppliers at significant risk for incidents of forced or compulsory labor
Bracell does not have, and has never had, operations involving forced or compulsory labor.
During onboarding for both employees and contractor, our Code of Conduct is presented and made available in printed and online versions, accessible via QR code, along with documents such as our Anti-Corruption and Anti-Bribery Policy and the Human Rights Policy, available on the Bracell website. Our Human Rights Policy, which applies to employees, contractors, and subcontractors, emphasizes our zero-tolerance stance on forced or compulsory labor.
All contracts signed with contractors or subcontractors include standard clauses ensuring zero tolerance for forced or compulsory labor (see more under GRI 3-3 Management of the material topic: Supply chain management, under GRI 3-3: Management of material topics: Supply chain management).
We have identified the following as operations with potential risk of forced or compulsory labor: planting, road construction and maintenance, maintenance of forestry machinery and equipment, and outsourced labor. These operations are located in the regions where our industrial sites are based, namely in the states of São Paulo and Bahia, including areas operated by third parties.
As part of the preventive scope of our Integrity Program, we assess third-party operated areas to prevent any occurrence of child or slave labor within our supplier chain. We have established monitoring guidelines for these business partners, including reviews of government blacklists and administrative violation notices.
We have strict preventive measures in place to mitigate any risk related to this issue. For contractor workers, we require documentation and conduct regular visits to forestry operations, carried out by our Internal Audit, Occupational Safety, and Certification teams. Bracell’s compliance team provides ISO 37001 certification training to ensure best-practice management of compliance systems.
The supplier screening process also takes these risk factors into account. Suppliers are assessed through the Linkana platform, which automatically classifies as critical risk (the highest level) any case in which an administrative violation notice related to child labor or forced or slave labor is identified. Such cases are subject to mandatory review by Compliance. In 2025, no suppliers flagged as being at risk for slave labor were engaged.
Whistleblowing Channel
In 2025, a new whistleblowing channel was implemented, managed by Contato Seguro, to provide whistleblowers with the assurance of anonymous reporting and to enable submissions 24/7 through multiple channels (email, telephone and website).
Audits of operations
We conduct both internal and external audits to manage environmental, social, management, and quality requirements. These requirements are assessed against the ISO 9001:2015, ISO 14001:2015 and Program for the Endorsement of Forest Certification (PEFC) requirements. We also undergo external audits based on the IFC (International Finance Corporation) Performance Standards at our Lençóis Paulista (SP) site, a requirement in connection with the finance secured for Project Star—two newbuild flexible pulp lines, in operation since 2021.
Audits are periodically carried out in contractors’ operations to ensure compliance with internal policies and environmental, safety, and ethics standards. In 2025, 50 due diligence assessments were conducted involving contractors.
Bracell’s Internal Audit team has developed a specific plan for forestry areas where outsourced workers are present and risks are higher, ensuring compliance with company policies and protecting workers’ rights. Forced or compulsory labor is classified in Bracell’s compliance matrix as an extreme violation. Identified potential causes include: activities with long shifts and high demand for operational labor; high levels of outsourcing; and lack of monitoring at worksites managed by contractors, especially in rural areas.
In monitoring the overall supplier base, six partners were identified as being exposed to the risk of forced or compulsory labor. None of them were active suppliers during the 2025 reporting period.
Learn more about risk management and classification under GRI 408-1.
GRI 414-1 New suppliers that were screened using social criteria
Our approach to procurement and supplier management follows corporate policies and internal procedures within our Integrated Management System, which governs social (occupational health, workplace safety, labor rights, child and adolescent rights, Diversity & Inclusion, human rights, social risks and impacts) matters.
Social criteria are evaluated as part of our approach to managing contractors working directly in our facilities. Through our Contract Management System, we review and monitor contractor documentation demonstrating compliance with legal requirements, including clauses from collective bargaining agreements, mandatory technical and operational training, occupational health criteria, and operating licenses. This applies to all suppliers, including new suppliers.
Processes involved in supplier management:
- Third-party due diligence: before formal engagement, all suppliers undergo due diligence screening. This process is conducted in accordance with Bracell’s policies on Third-Party Due Diligence, Supplier Qualification and Evaluation, Sustainability, and Human Rights.
- Environmental compliance validation: as part of the onboarding and screening process, suppliers acknowledge and agree to follow Bracell’s Procurement Code of Ethics. In our operations, suppliers are evaluated regarding their management of environmental risks and impacts.
- Social compliance validation: social requirements and risks are assessed as part of our approach to managing contractors operating directly at our facilities. The contractor management process includes verifying compliance with labor rights such as compensation, collective bargaining agreements, training, occupational health and safety, among other mandatory requirements for managing social risks. This is done through the Contract Management System, where contractual documents are stored and compliance with legal requirements is verified.
- Supplier evaluation and qualification: we assess suppliers’ capability to deliver products and services in accordance with legal, certification, and technical standards.
- Audits: we perform audits on all operations employing contractors.
We use the Linkana platform to enhance supplier screening and monitoring on environmental management criteria, impact prevention, and fulfillment of commitments to sustainable practices. These assessments cover compliance with national and international environmental standards, public data from the Federal Revenue Service, clearance certificates, block lists, and sustainability indexes. After data validation, a confidence score informs risk recommendations and directs the process toward automatic or manual approval workflows.
In 2025, no suppliers were identified as being responsible for negative social impacts. Suppliers for whom negative social impacts were identified were not approved to continue providing services.
| Percentage of new suppliers selected based on social criteria | 2025 |
| Total number of new suppliers considered for contracting | 1,816 |
| Total number of new suppliers contracted based on social criteria | 1,776 |
| Percentage of new suppliers contracted based on social criteria (%) | 97.80% |
Note: in 2025, 32 suppliers approved under Bracell’s procurement process were found to have environmental nonconformities. However, they remained approved based on Linkana’s structured risk-management methodology, which assigns supplier ratings from A to E across Compliance, Environmental Legal, and Financial dimensions. Following a comprehensive review—including Compliance validation (when applicable), environmental impact assessment, and materiality analysis—the nonconformities were deemed non-critical to operational risks. For each case, corrective action and follow-up plans were formalized in accordance with Bracell’s supplier approval documentation matrix.
GRI 414-2 Negative social impacts in the supply chain and actions taken
We actively monitor social risks involving contractors working directly in our operations. In 2025, suppliers for whom negative social impacts were identified were subject to approval and/or rejection in accordance with internal procedures.
| Suppliers with negative social impacts | 2025 |
| Number of suppliers assessed for social impacts | 1,776 |
| Number of suppliers identified as having significant actual and potential negative social impacts | 393 |
| Significant actual and potential negative social impacts identified in the supply chain | 1 – Labor Infraction Notices – Child Labor (Headquarters and branches) |
| Number of suppliers identified as causing significant actual and potential negative social impacts, with whom improvements were agreed as a result of the assessment | 388 |
| Percentage of suppliers identified as causing significant actual and potential negative social impacts, with whom improvements were agreed as a result of the assessment | 98.73% |
| Number of suppliers identified as causing significant actual and potential negative social impacts with whom business relationships were terminated as a result of the assessment | 5 |
| Percentage of suppliers identified as causing significant actual and potential negative social impacts with whom business relationships were terminated as a result of the assessment | 1.27% |
| Reasons that led to the termination | In 2025, a total of 388 suppliers were approved despite the identification of social nonconformities, following a structured risk assessment conducted via the Linkana platform. Linkana classifies suppliers on an A–E scale across three dimensions—Compliance, Environmental Legal, and Financial. Of the approved suppliers, 98% (381 suppliers) presented a finding related to the CAT (Work Accident Communication, in Portuguese) document. This type of finding is recurrent in the market and, based on Bracell’s materiality criteria, does not constitute a critical risk to business continuity. In line with the Supplier Management Procedure, all cases were reviewed by the Compliance department where applicable, and formal follow-up plans were established to implement the necessary corrective actions, as set forth in the approval documentation matrix. Under the document scoring methodology, a CAT-related finding results in a deduction of seven (7) points from the supplier’s final score. Considering the recurring nature of this specific finding in the market, the elevated number of suppliers in this category is expected and, by itself, does not represent a material impediment to continued contracting. |
Nota: Em 2025, 388 fornecedores foram aprovados com apontamentos sociais após avaliação de risco via plataforma Linkana, que classifica os parceiros de A a E, considerando critérios de Compliance, Jurídico Ambiental e Financeiro. Desse total, 98% (381 parceiros) apresentaram apontamento de risco relacionado ao documento CAT (Comunicação de Acidente de Trabalho), uma ocorrência recorrente no mercado que não representa risco crítico à continuidade do negócio. Seguindo o Procedimento de Gestão de Fornecedores, os casos foram validados por Compliance (quando aplicável), sendo estabelecidos planos de acompanhamento para as correções necessárias, conforme previsto na matriz de documentos para aprovação. De acordo com a matriz de pontuação de documentos, o apontamento no documento CAT resulta na redução de 7 pontos no score final do fornecedor. Considerando a recorrência desse tipo de apontamento no mercado, entende-se o elevado número de fornecedores com essa classificação, sem que isso represente, por si só, um risco relevante para a continuidade da contratação.
RR-PP-430a.1 Percentage of wood fiber sourced (1) from third-party certified forestlands and percentage to each standard and (2) meeting other fiber sourcing standards and percentage to each standard
We conduct our forestry operations in compliance with the Forestry Certification Endorsement Program (PEFC) Standards, support environmentally compliant, socially beneficial and economically feasible operations. With the recertification of our plantation areas in 2024, a new five-year cycle begins, during which we commit to following certification standard requirements and commissioning annual third-party audits of our operations.
All pulpwood resource is verified against certification standards. In São Paulo, 71% comes from certified Bracell-managed plantations, and 29% from controlled sources. In Bahia, 81% of pulpwood is certified, while 19% comes from controlled sources.
We monitor 100% of the pulpwood resource. All shipments undergo due diligence to identify environmental and social risks and prevent the use of pulpwood from controversial sources, in line with Bracell’s commitment to not sourcing pulpwood of questionable origin.
During the year, 83 business partners—49 in São Paulo and 34 in Bahia—supplied controlled-source pulpwood to the mills in both states. Document and field inspections are conducted to verify sustainable practices such as oil spill containment, proper waste disposal, non-use of burning for clearing, and compliance with protected area and legal reserve requirements. Additionally, our Bahia operation is certified to ISO 14001 – Environmental Management Systems.
All pulpwood purchased from the market that does not hold PEFC forest management certification undergoes due diligence to ensure it can be classified as controlled and made eligible for use in the production process. Bracell applies the material risk classification metrics established by the PEFC standard. If the risk of the material originating from a controversial source is deemed negligible, it may be classified as controlled and incorporated into our management system. To complete the process, documented information is collected, reviews are conducted, and procurement is managed based on the material’s risk classification.