UNGC Principle 1: businesses should support and respect the protection of internationally proclaimed human rights

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GRI 3-3 Management of material topics: Community engagement and local development

Building close and transparent relationships with local communities is a top priority for Bracell. Among our core values is supporting the communities where we operate and helping to drive local development. We believe that for any operation to be good for Bracell, it must first be good for the community.

To this end, our operations follow procedures and control mechanisms that are part of our management system, with a focus on mitigating the risks and impacts of our forestry, mill, and logistics operations. We also carry out long-term structured projects through Bracell Social, with clear goals and targets focused on promoting entrepreneurship, education, and well-being in local communities—as part of our Bracell 2030 commitments.

Our approach to stakeholder engagement includes informing communities and neighbors near our forestry and mill operations about the actual and potential impacts of our operations. Initiatives are structured around open communication with stakeholders and the following goals:

  • Inform neighboring communities about upcoming forestry operations in their vicinity, including potential risks and both positive and negative impacts from these operations
  • Strengthen our relations with communities and neighbors
  • Enhance communication with our communities and neighbors
  • Contribute to strengthen initiatives and increase responsiveness to requests from local communities
  • Identify, prevent and minimize potential impacts caused by operations on these communities and neighbors
  • Mitigate the risk of potential community issues that could affect our operations
  • Address inquiries and concerns regarding operational aspects and the company as a whole.

Bracell’s Integrated Management System (IMS) includes a standard, available to all employees, on relations with traditional peoples and communities.

The standard outlines criteria and requirements for establishing an integrated management process for engaging with communities neighboring Bracell’s forestry and mill operations. It also contains guidance on relations with traditional peoples and communities, in compliance with applicable laws and regulations.

The objectives of the standard is to establish continuous two-way communication, provide up-to-date and transparent information, identify and evaluate social aspects, establish measures to control and mitigate potential negative impacts, and identify positive impacts.

In managing this material topic, identified potential positive impacts include increased job creation and opportunities for partnerships; improved quality of life and/or living conditions in the areas where we operate, due to increased private social investment—through initiatives across education, inclusion, entrepreneurship, and community development; and improved local infrastructure as a result of company-driven investments and collaborations.

In terms of negative impacts, our management approach includes addressing the risk of conflicts with neighboring communities over impacts from operations. This risk is managed through our impact mitigation practices and close engagement with local communities.

Promoting Women’s Entrepreneurship, Education, and Income Generation

As part of the social targets in our Bracell 2030 roadmap, we have committed to promoting women’s entrepreneurship, expanding income opportunities and strengthening public education in the regions where we operate.

In 2025, we surpassed our target to ensure that at least 60% of “impact business” projects were led by women, achieving 73%. This underscores our continued commitment to gender equity and women’s leadership (learn more about Bracell Social, our social investment platform, under GRI 203-1 Infrastructure investments and services supported).

We also aim to raise the income of families involved in income-generation initiatives in priority areas by 20% by 2030.

In education, Bracell is helping to improve learning outcomes in communities with historically low academic performance. We have set a target to increase Portuguese and math proficiency by 30% in the public schools participating in our programs

In addition to direct investments in educational projects, Fundação Bracell actively engage in advocacy around public education policy. In April 2025, it publicly advocated for prioritizing Early Childhood Education in the new National Education Plan (PNE) during a meeting in Brasília (DF) with the Joint Parliamentary Front for Education and the Special Commission for the PNE. The Foundation presented evidence demonstrating the higher social return of investments in early childhood and emphasized the need for stronger political and budgetary prioritization of this stage of education, given its impact on both children’s current well-being and their long-term outcomes.

Flagship initiatives

  1. São Paulo – Structured social investment: in January 2025, we launched the first edition of the Bracell Social Public Call for Projects. The initiative selected nine projects focused on health and well-being, sports, education, culture, environmental education and women’s entrepreneurship and allocated approximately R$600,000 to strengthen civil society organizations in five municipalities in the state of São Paulo.
  2. Bahia – Implementation of public programs under discussion: Following the completion of the impact study for the Continuing Education Program, we refined the project’s strategic approach. We especially highlight our social and political outreach efforts in education, which in 2025 supported municipalities in conducting public meetings to assess the implementation of their Municipal Education Plans (PME), a critical starting point for the development the next ten-year PME. A total of 11 public meetings were held, bringing together education professionals, students, families and representatives of organized civil society.
  3. Mato Grosso do Sul – From territorial assessment to program implementation After completing the territorial development assessment in Mato Grosso do Sul, we implemented 11 social programs in the region. Meanwhile, we continued established initiatives in the state, such as the Vision of the Future Program, which conducted eye examinations for 6,544 children in public schools across three municipalities, provided eyeglasses and monitored improvements in academic proficiency.

Monitoring and measurable progress toward 2030 targets: With the progress tracking structure developed in 2024—including baselines, an impact framework and defined indicators—we improved the accuracy of our social performance metrics. In 2025, we reported that families participating in income generation projects have already increased their real income by 10% since 2023, advancing toward the 20% target set for 2030. We also exceeded our target of 60% women-led impact businesses, reaching 73%.

GRI 3-3 Management of material topics: Health, well-being, and occupational safety

The topic of health, well-being, and occupational safety is strategic to Bracell’s sustainability efforts and the long-term resilience of the business. This topic directly affect people’s experience, team performance, and Bracell’s ability to innovate and grow sustainably.

In 2025, we adopted the SPQC (Safety, Quality, Productivity and Cost) model in addressing this topic, putting safety first in all decision-making processes. The goal is to strengthen our safety culture as a key driver of Bracell’s overall organizational culture.

We maintain an Integrated Occupational Health and Safety Management System aligned with Brazilian legislation, especially the Regulatory Standards (NRs) issued by the Ministry of Labor and Employment (learn more under GRI 403-1 – Occupational health and safety management system).

The system is managed by Bracell employees who are part of the Specialized Occupational Safety and Health Engineering Service (SESMT) and the Specialized Rural Occupational Safety and Health Service (SESTR), as required by NR-4 and NR-31.

Our occupational health and safety management practices also include a Risk Management Program (PGR), Rural Occupational Risk Management Program (PGRTR), and Occupational Health Surveillance Program (PCMSO). These programs outline safety standards and procedures applicable to all activities conducted by employees and contractors, in line with our integrated management system policy.

These initiatives align with our Integrated Management System Manual, and international standards ISO 9001, ISO 14001, and the Program for the Endorsement of Forest Certification (PEFC).

Programs, processes, and practices for risk assessment and accident investigation
Hazard Reports Hazard Reports are issued for all employee roles and tasks. Risk assessments are carried out by a specialized firm using appropriate methods that are compliant with current legislation.
Workplace Environment Condition Reports (LTCAT) These reports identify areas eligible for hazard bonuses and that require enhanced risk control measures. They also inform action plans that guide prevention efforts.
Risk Management

Program (PGR)

The purpose of this program is to identify risks and design measures to control and prevent them (collective protection equipment, administrative measures, training and personal protective equipment).
Rural Occupational Risk Management Program (PGRTR) Through this program, we identify, assess, and manage occupational risks in our forestry operations.
Worker protection policies and processes To shield workers from retaliation, Bracell has policies and processes in place to prevent intimidation, threats, or actions that could negatively impact employment or the workplace environment, such as termination, demotion, loss of income, punishment, and any other unfavorable treatment.
Right of refusal All employees have a right to refuse to perform a given task if they feel unsafe, by completing the right-of-refusal field in the Work Clearance form.
Sempre Alerta and Safe Behavior Program We have two behavioral programs supporting our goal of achieving zero incidents: Sempre Alerta (“Always Alert,” with a focus on our forestry and mill operations) and our Safe Behavior Program (with a focus on mill operations), both designed to preventively achieve continuous improvement in our safety culture.
Prevention cards All employees are issued a prevention card containing a list of ten self-assessment criteria, which they must carry with their badge. This card includes a reminder of their right to stop their task, immediately notify their supervisor, and only continue the task when the risk has been neutralized or eliminated. The right of refusal is also included in each employee category’s collective bargaining agreement.
Internal Accident Prevention Committee (CIPA) Bracell has a continuous improvement subcommittee within CIPA that documents safety actions implemented and their practical outcomes.
Accident Prevention Week A week dedicated to improving employees’ understanding of operational and occupational safety procedures, as well as safe behavior.
Accident and Incident Investigation When accidents or incidents occur, the root causes are investigated and analyzed with the participation of managers, department heads, the Occupational Safety team, the Internal Accident Prevention Committee (CIPA), and those directly involved. These investigations, conducted in accordance with internal safety procedures, aim to identify the root causes, implement actions to address them, and document lessons learned to prevent recurrence.
 

Root Cause Analysis

All accidents and incidents are logged and investigated using Root Cause Analysis (see Occupational Safety Inspection Reports (RIST).

 

Occupational Safety Inspection Reports (RIST) Occupational Safety Inspection Reports (RIST) serve as an internal audit tool covering safety, health, and environmental issues. These reports cover 199 compliance items (including NR-1, NR-31, NR-12, required training, among others). Reports are prepared on a regular basis by Occupational Safety employees, supporting compliance with applicable regulations and for continuous improvement in our forestry operations. As an additional preventive measure, department-specific and general performance review meetings are held to develop action plans addressing safety inspection items raised by the Occupational Safety team.

 

Occupational Health Surveillance Program This program maps out workers’ tasks and workplaces, the occupational hazards to which they are exposed, and the medical exams required for the prevention of occupational diseases and health protection. It also establishes the frequency at which health checkups are to be conducted. All Bracell employees and contractors are covered by our Occupational Health and Safety Management System.
RADAR – Administrative Disciplinary Rules and Restorative Actions These rules are designed to embed operational discipline and safe behaviors in Bracell’s mill and forestry operations. In addition to strengthening the safety behaviors of everyone who interacts with our operations, RADAR also establishes a more transparent and fair approach to recognizing good safety practices, as well as a no tolerance stance on unsafe conduct that is liable to cause accidents in our operations.

At Bracell, safety is a core value, and cultivating a culture of prevention is key to fostering health and well-being in the workplace.

In 2025, our Northeast Paper operations achieved significant improvement in safety performance following the implementation of corporate safety policies and programs (see operational safety disclosures under GRI 403-9). 

Across our forestry operations, monthly inspections are conducted at all work fronts, with a focus on accident prevention and compliance with applicable legislation.

A Safety Standstill was also held at the Avaí (SP) and Lençóis Paulista (SP) nurseries to raise awareness about the risks of falls and sprains, which are among the most common causes of accidents in the sector.

To enhance fleet safety and protect neighboring communities, Bracell increased its investment in technology and safety systems for three-trailer road train trucks, including third-party vehicles. Each truck is now equipped with five strategically positioned cameras (front, side, cabin and fatigue monitoring), transmitting real-time footage a Monitoring Center. Artificial intelligence tools support detection of driver fatigue and distractions, contributing to a 90% reduction in unsafe driving behaviors since 2021.

In logistics, in May 2025, our Forestry and pulp transportation teams carried out awareness activities as part of Yellow May—an international campaign to reduce traffic accidents—with an emphasis on responsible driving and the importance of avoiding rushed behavior on the road. We have also deployed technology in forest fire monitoring, using drones and thermal cameras to detect and control heat sources, enabling a fast and cost-efficient response.

Bracell’s partnership with the local fire department ensures fire response teams receive specialized training in areas such as collapsed-structure search and rescue and emergency response to hazardous materials incidents. In turn, Bracell’s Fire responders share expertise in canyon navigation and vehicle extrication.

In terms of well-being initiatives, the Bracell Social Center continued to advance projects under the Well-Being pillar and to promote healthy lifestyles throughout 2025. In March 2025, Casa hosted a lecture titled “Taking Care of Yourself: Health and Well-Being for Women,” in partnership with the Municipal Health Department of Lençóis Paulista. In October, pilates classes were offered to the public as part of the program’s third scheduled session.

Additionally, Bracell provided breast and prostate cancer screening tests at no copayment under the health plans at its operating units.

During the year, we also announced the construction of a breastfeeding support room, offering appropriate facilities and privacy for milk expression and storage. The program includes a multidisciplinary team, composed of a doula, an obstetric nurse and a psychologist, ensuring continuous and comprehensive care.

Impacts and risks

In managing the material topic of Occupational health, safety and well-being, Bracell has identified actual and potential impacts and risks, both negative and positive. Based on these findings, we work to prevent or mitigate negative impacts and enhance positive ones.

Potential negative impact Actual negative impacts Actual positive impacts
Infectious diseases affecting employees and contractors due to exposure to pathogens. This impact is limited in scope and low in intensity, as we have effective internal controls, formalized policies and procedures, and performance indicators in place. Ensuring fair working conditions and protecting workers’ rights through collective bargaining agreements. Ergonomic issues caused by repetitive tasks and inadequate posture during the maintenance and operation of equipment. This impact is limited in scope and low in intensity, as we have effective internal controls in place.
Health impacts on employees, with leave taken due to work-related physical and psychological illnesses. This impact is broad in scope and of medium intensity.
Preventing employee illnesses through campaigns and educational initiatives. Respiratory and skin issues in employees and contractors caused by exposure to hazardous chemical substances. This impact is limited in scope and of medium intensity, with internal control mechanisms in place.
Serious workplace injuries caused, for example, by operating heavy machinery, working at heights, or in confined spaces. This impact is limited in scope and of medium intensity.

Safety Performance Index

In our Mill operations, Procurement department and Paper operations, safety culture performance is tracked using a Safety Performance Index (IDS). This metric reflects the weighting scores of Safety Programs, which are assessed based on employee engagement, effectiveness in implementing action plans, and the documentation of behavioral safety observations. Throughout the year, safety campaigns are carried out in operational areas and across our official communication channels, continuously reinforcing safe behaviors. In addition, the Safety Team provides ongoing support by conducting field observations, toolbox talks and training sessions across operational areas, both during regular working hours and in shift operations.

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 ConductCode of Procurement EthicsSustainability 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 202-2 Proportion of senior management hired from the local community

At Bracell, the term “senior management” refers to individuals serving as President, Vice President, Chief Operations Officer, or Head of Operations. As of the reporting year, Bracell’s senior management team comprises 15 members—14 based in São Paulo and 1 in Bahia. In 2025, no directors were recruited from the local community.

At present, Bracell Papéis does not have dedicated executives within its organizational structure. 

Read more under GRI 405-1 Diversity of governance bodies and employees).

GRI 203-1 Infrastructure investments and services supported

We invested in structural projects in partnership with communities near our operations. Through Bracell Social, we supported initiatives in Education, Well-being, and Empowerment.

Bracell Social is built around three main pillars:

  • Education: Bracell believes in education as the cornerstone for societal development. Through projects and initiatives that engage both children and adults in our areas of operation, our efforts have helped improve educational practices in public schools. These programs also foster environmental civics, develop leadership skills, and support the professional development of adolescents and young adults. This further underscores our belief in the transformational role of education.
  • Empowerment: Bracell works to strengthen production collectives and social enterprises through training initiatives focused on leadership, empowerment, and creating employment and income opportunities. We work to develop and strengthen productive activities, invest in training and technical assistance, develop community leaders, promote cooperativism, and facilitate social participation mechanisms including public calls for projects and public-private partnerships.
  • Well-being: we provide community residents with free leisure, culture, health promotion, and civics activities that foster well-being and civic engagement in the communities around our facilities.

Bracell Social Center

Launched in November 2024 as a dedicated community engagement space, the Bracell Social Center completed its first full year of activities in 2025, exceeding participation targets and delivering a broad and diverse program of activities.

Located in Lençóis Paulista, São Paulo, the facility welcomed more than 4,000 visitors, including 1,347 individuals who directly benefited from activities throughout the year.

Within the education pillar, the Bracell Social Center serves as the starting point for the Descobertas visits program, designed for ninth-grade students from public and private schools across the region. Approximately 1,200 students from 38 schools took part in the initiative.

The Center functions as a reception and briefing venue before students visit the mill. During the experience, students gain exposure to Bracell’s mills and forestry operations, engage with different technologies, interact with employees from multiple disciplines, and learn firsthand about initiatives that help to balance economic development, sustainability, and environmental conservation.

In May 2025, the Center hosted the announcement of the nine projects selected in the first Bracell Social Public Call for Projects, allocating approximately R$600,000 to five municipalities in the state of São Paulo (see GRI 3-3: Management of material topics: Community engagement and local development) The venue also supported job transition efforts. In partnership with the Municipal Department for Economic Development, it welcomed and trained individuals laid off from a local factory earlier in the year, and provided advice to help them redirect their careers.  

As part of Women’s Month in March, Casa Bracell Social hosted a roundtable discussion under the theme, “Voices that Empower: Women, the Labor Market and Beyond,” open to the community and to women supported by civil society organizations and social assistance services. The event encouraged reflection, shared learning, and discussion on women’s professional and social experiences.

 The well-being agenda also included a free lecture titled “Taking Care of Yourself: Health and Well-Being for Women,” offering participants a holistic perspective on quality of life. In July, the Center launched the first edition of “Vacation at the Center,” providing free educational and recreational activities, including kite-making and mini-garden workshops, as well as movie sessions for children and adolescents. During the second half of the year, the venue continued to offer free monthly Pilates classes open to the public through December.

In June, to mark Environment Week, the Bracell Social Center hosted a series of interactive educational workshops. The initiative was designed to strengthen environmental literacy among children enrolled in the Social Interaction- and Bond-Building Service (SCFV) in Lençóis Paulista, São Paulo. Through a participatory and experiential approach, the program fostered ecological awareness by promoting hands-on learning activities, including demonstrations on how to produce eco-friendly paints derived from fruits, vegetables, seeds, and algae, followed by painting sessions using tote bags (ecobags).

As part of the programming, we also organized film screenings aimed at enhancing environmental awareness and critical thinking among seventh-grade students from public state schools in Macatuba, São Paulo. Students viewed the independent documentary O Lixo Nosso de Cada Dia (“Our Daily Waste”), which prompts reflection on waste management pathways and examines society’s relationship with the waste it generates. Following the screening, students were divided into groups and participated in a facilitated discussion led by members of Bracell’s Environmental team, reinforcing key concepts presented in the film.

In October, we delivered the initiative “Youth and the Future of the UN,” engaging adolescents served by the LideraJovem Institute in Lençóis Paulista, São Paulo. Participants took part in a workshop on the United Nations, where they practiced negotiation and debate. The activity brought together 31 young people, ages 13 to 17, representing diverse neighborhoods across the municipality.

Conexão Program

In 2025, the Bracell Social Center also hosted the Conexão program, a corporate initiative aimed at strengthening civil society organizations in the regions where Bracell operates. A total of 58 organizations applied, and 32 participated in the training cycle.

The program is designed to build organizational capacity, enabling participating organizations to improve governance practices and expand the social impact of their initiatives. By providing advice on management, financial planning, and organizational structuring, the program supports organizations in accessing funding opportunities and improving operational efficiency, fostering greater autonomy and long-term sustainability.

Number of projects
Bracell Social 2023 2024 2025
Education 11 10 7
Empowerment 10 9 9
Well-being 18 15 6
Bracell Social House events 1
Araribá Indigenous comunity 1
Partnership 4
Total 31 39 28

Note 1: Bracell Social House events consider Bracell Social initiatives addressed to local communities, focused on Education, Well-being and Empowerment.
Note 2: Araribá Indigenous comunity initiatives are focused on local community listening and engagement activities, aligned with stakeholder engagement practices described in GRI 2, with the requirements of GRI 413 regarding the organization’s interactions with local communities ang GRI 411-1 in regards to rights of indigenous peoples.
Note 3: The projects included in the “Partnership” category are: Lidera Jovem and FILLP in the state of São Paulo; Miniempresa na Comunidade, an initiative supported by Bracell Celulose Bahia; and Parceiro Social, supported by Bracell Papéis Nordeste.
Bracell is one of the sponsors of Instituto LideraJovem, a civil society organization that helps young people in Lençóis Paulista and surrounding areas (São Paulo state) develop life plans and strengthen their leadership skills, preparing them for the job market and broader life challenges. The Institute also trains adult facilitators in active methodologies for working with youth.The Festival Integrado de Literatura de Lençóis Paulistas (FILLP) is a local literary event that promotes reading among children and adolescents.

The Miniempresa na Comunidade Program aims to foster entrepreneurship with a focus on income generation in communities in the municipalities of Camaçari (BA) and Dias D’Ávila (BA). In 2025, 10 mini-companies were created with support from the initiative, which is carried out by Júnior Achievement Bahia.

The Parceiro Social Program, developed by Universidade Senai-Cimatec, contributes to high-quality academic training for young people in situations of social vulnerability. Bracell supports students’ continued participation in the program by providing financial aid scholarships to cover transportation and food expenses.

 

Number of people reached
Bracell Social 2023 2024 2025
Education 72,764 107,792 98,309
Empowerment 26,012 15,748 12,973
Well-being 65,232 28,600 30,299
Bracell Social House events 1,347
Araribá Indigenous comunity 55
Partnership 16.844 
Total 164,008 152,140 159,827

Note 1: Bracell Social House events consider Bracell Social initiatives addressed to local communities, focused on Education, Well-being and Empowerment.
Note 2: Araribá Indigenous comunity initiatives are focused on local community listening and engagement activities, aligned with stakeholder engagement practices described in GRI 2, with the requirements of GRI 413 regarding the organization’s interactions with local communities ang GRI 411-1 in regards to rights of indigenous peoples.
Note 3: The projects included in the “Partnership” category are: Lidera Jovem and FILLP in the state of São Paulo; Miniempresa na Comunidade, an initiative supported by Bracell Celulose Bahia; and Parceiro Social, supported by Bracell Papéis Nordeste.
Bracell is one of the sponsors of Instituto LideraJovem, a civil society organization that helps young people in Lençóis Paulista and surrounding areas (São Paulo state) develop life plans and strengthen their leadership skills, preparing them for the job market and broader life challenges. The Institute also trains adult facilitators in active methodologies for working with youth.The Festival Integrado de Literatura de Lençóis Paulistas (FILLP) is a local literary event that promotes reading among children and adolescents.The Miniempresa na Comunidade Program aims to foster entrepreneurship with a focus on income generation in communities in the municipalities of Camaçari (BA) and Dias D’Ávila (BA). In 2025, 10 mini-companies were created with support from the initiative, which is carried out by Júnior Achievement Bahia.The Parceiro Social Program, developed by Universidade Senai-Cimatec, contributes to high-quality academic training for young people in situations of social vulnerability. Bracell supports students’ continued participation in the program by providing financial aid scholarships to cover transportation and food expenses.

 

Total invested
Bracell Social 2023 2024 2025
Education R$ 3,755,301.30 R$ 3,856,191.24 R$ 3,749,417.12
Empowerment R$ 2,712,761.37 R$ 2,937,657.07 R$ 3,049,358.19
Well-being R$ 2,571,486.65 R$ 1,677,259.58 R$ 1,863,575.14
Bracell Social House events R$ 395,000.00
Araribá Indigenous comunity R$ 403,036.00
Partnership R$ 532.000,00 
Total R$ 9,039,549.32 R$ 8,471,107.89 R$ 9,992,386.45

Note 1: Bracell Social House events consider Bracell Social initiatives addressed to local communities, focused on Education, Well-being and Empowerment.
Note 2: Araribá Indigenous comunity initiatives are focused on local community listening and engagement activities, aligned with stakeholder engagement practices described in GRI 2, with the requirements of GRI 413 regarding the organization’s interactions with local communities ang GRI 411-1 in regards to rights of indigenous peoples.
Note 3: The projects included in the “Partnership” category are: Lidera Jovem and FILLP in the state of São Paulo; Miniempresa na Comunidade, an initiative supported by Bracell Celulose Bahia; and Parceiro Social, supported by Bracell Papéis Nordeste.
Bracell is one of the sponsors of Instituto LideraJovem, a civil society organization that helps young people in Lençóis Paulista and surrounding areas (São Paulo state) develop life plans and strengthen their leadership skills, preparing them for the job market and broader life challenges. The Institute also trains adult facilitators in active methodologies for working with youth.The Festival Integrado de Literatura de Lençóis Paulistas (FILLP) is a local literary event that promotes reading among children and adolescents.The Miniempresa na Comunidade Program aims to foster entrepreneurship with a focus on income generation in communities in the municipalities of Camaçari (BA) and Dias D’Ávila (BA). In 2025, 10 mini-companies were created with support from the initiative, which is carried out by Júnior Achievement Bahia.The Parceiro Social Program, developed by Universidade Senai-Cimatec, contributes to high-quality academic training for young people in situations of social vulnerability. Bracell supports students’ continued participation in the program by providing financial aid scholarships to cover transportation and food expenses.

Stand-out projects in 2025

Mãos Dadas program

Our Mãos Dadas volunteering program, now based at the Bracell Social Center, aims to engage employees and their families in activities that benefit the community, encouraging them to donate their time and skills to social causes—fostering civics, self-esteem, a sense of belonging, and the development of new skills and competencies.

Among these initiatives, Founder’s Day stands out as part of RGE’s annual volunteering calendar. On this date, employees from all regions where the group operates dedicate their time to volunteering activities, putting into practice the company’s guiding philosophy: “It’s only good for Bracell if it’s good for our Community.”

In 2025, 25 social organizations were benefited, impacting around 10,000 people. The program also collected and distributed around 4.8 metric tons of food and involved more than 5,400 volunteers, illustrating the power of social engagement. 

During the year, the Mãos Dadas volunteering program was further strengthened with the creation of a regional committee that included representatives from all areas of the business. We implemented a structured calendar of community-focused actions, including hands-on activities and donation campaigns, strengthening employee engagement and Bracell’s social impact in the communities where we operate.

In addition to these initiatives, as part of Bracell Environment Week, we held a voluntary clean-up drive at Santos Beach (SP) on June 7, in partnership with Instituto Mar Azul.

Ponteiras Sustentáveis 

In 2025, Bracell formalized the Ponteiras Sustentáveis (“Sustainable Tops”) program, turning an informal practice into a structured social project focused on local development. The initiative shares raw material from eucalyptus tops—wood residues that, after mechanized harvesting, are of insufficient diameter to be economically viable for pulp production—with communities in municipalities across the North Coast, Agreste Baiano, and Recôncavo regions of Bahia.

Through associations and cooperatives, communities collect these tops and sell them for different purposes, such as charcoal production, fencing, and other uses, generating local income from material that would otherwise be discarded.

The year was dedicated to setting up the initiative, which included formalizing the cooperative, drafting the contract, implementing occupational safety measures (such as the use of PPE), and standardizing appropriate infrastructure, including rest areas. This aimed to ensure the sustainability of the business and the quality of life of those involved.

The program generated R$10 million in income for local communities.

Visão no Futuro

The Visão do Futuro project aims to enhance quality of learning and reduce school dropout by improving eye health, which is directly linked to educational attainment. The program provides eye exams for children in public schools and, when needed, supplies eyeglasses, and subsequently follows students’ proficiency and learning attainment.

In 2025, the program was expanded in Mato Grosso do Sul—where it was implemented in 2023—and extended to São Paulo. In Mato Grosso do Sul, the impact can be seen in municipalities such as Santa Rita do Pardo, Bataguassu, and Água Clara, where 6,544 children were examined and 93 received eyeglasses for the first time. 

Conexão

The Conexão program is a Bracell initiative designed to strengthen civil society organizations by providing training in organizational management, communication, fundraising strategies, and the preparation of submissions for public calls for projects.

In 2025, Bracell launched the third edition of the program, further delivering on our commitment to strengthening the third sector in the region. The project offered 40 free spots for charities from the municipalities of Agudos, Bauru, Botucatu, Lençóis Paulista, Macatuba, and Pederneiras, and each organization could nominate up to four representatives over the course of the program. Registration was open from September 19 to October 10, and the classes were delivered in person from October to December at the Bracell Social Center, with representatives from 32 civil society organizations participating. 

As in previous years, the third edition was delivered in partnership with Instituto Ekloos, a nationally leading organization providing support to nonprofits. The overarching goal is to provide practical management tools and build a collaborative network among charities to multiply opportunities for community transformation. 

Continuing Education

Established 11 years ago by Bracell in a technical partnership with Instituto Chapada de Educação e Pesquisa (Icep), our Continuing Education Program provides ongoing training for education professionals—including teachers, pedagogical coordinators, principals, and technical teams from municipal education departments—with a focus on improving teaching practices, especially in reading, writing, and mathematics.

The year was also marked by several accolades and other recognition. In July, an anti-racist education initiative developed by a program-supported daycare center, Creche da Baixa da Candeia, in Alagoinhas, was recognized by the Ministry of Education (MEC) and ranked among the 739 most inspiring full-time holistic education experiences in Brazil.

In São Paulo, initiatives were delivered at the state level through Parceiros da Educação and at the municipal level with Associação Bem Comum. A total of 1,140 hours of training were delivered, indirectly impacting 4,334 state schools and a further 37 schools in the municipalities of Agudos, Bauru, Macatuba, and Pederneiras.

In these municipalities, during a seminar titled, “Literacy: paths to school success”, public sector representatives symbolically signed their commitment to the project’s 2025 and 2026 cycle. 

The Continuing Education Program is helping to improve the Basic Education Development Index (IDEB) scores of the municipalities where Bracell operates and is working toward the Bracell 2030 roadmap target of improving Portuguese and mathematics proficiency by 30% in Bracell-supported public schools in areas with low school achievement rates. In 2025, the project reached 67,943 educators, students, and family members in the states of São Paulo and Bahia.

Dona Della

The Dona Della project promotes women’s financial independence by supporting the creation or development of women-led businesses—whether formal or informal—advancing their growth and market access, and helping them gain a foothold in the market.

In São Paulo, in 2025, the project focused on promoting business acceleration initiatives led by women. In partnership with the Small Business Support Service (Sebrae), participants were offered individualized consulting, workshops, a business meeting, and missions to the Entrepreneur Fair held by the institution in São Paulo (SP)—the largest event of its kind in the country.

A total of 330 women participated, representing ten municipalities. They raised R$15,021.70 through exhibiting and selling products at the Bracell Social Collective Fair and at the Business Meeting.

The Bracell Social Center hosted training workshops on business management topics, strengthening its role in supporting women’s entrepreneurship in the region.

In November, a month dedicated to celebrating women’s entrepreneurship, we organized the first addition of Dona Della Day, bringing together around 250 women from the municipalities of Lençóis Paulista, Macatuba, Avaí, Borebi, Bauru, Agudos, Pederneiras, and Piratininga at the Adélia Lorenzetti Municipal Theater in Lençóis Paulista (SP). The meeting discussed the importance of women entrepreneurs, promoting equal opportunities and empowering women.

The event hosted discussion groups on women’s empowerment and shared real stories and successful journeys of women who turned their dreams into businesses. A highlight was the participation of artisan Marta Rochiti, who shared her journey after participating in a program called, “From Individual to Business.” The program helped her achieve home ownership and purchase industrial-scale machines, demonstrating the initiative’s transformative potential.

In Mato Grosso do Sul, the project delivered strong results in 2025 through the Dona Della – Sustainable Sewing initiative, carried out in collaboration with Sebrae-MS and the municipal government of Bataguassu. The project offered local seamstresses the opportunity to take part in specialized training, during which they transformed materials that would be discarded as waste—such as fertilizer bags and uniforms—into high-quality items with a unique handcrafted touch. In June 2025, the project gained visibility through exhibitions of the newly launched products at Bioparque Pantanal in Campo Grande and at Shopping Três Lagoas.  

More than a new source of income, the project strengthened participants’ entrepreneurial spirit, creating a support network that goes beyond skills-sharing. The initiative resulted in the formalization of the Ipê Rosa Sewing Entrepreneurs Association, an important milestone for the 29 women who participated in the first Dona Della project cycle. Since the association was created, an average increase of 16% in participants’ income has been reported.

Bracell Social Grants: 1st edition

In 2025, Bracell launched the first edition of the Bracell Social Call for Proposals, an initiative designed to strengthen civil society organizations and promote sustainable development in five municipalities in São Paulo State: Lençóis Paulista, Macatuba, Pederneiras, Botucatu, and Bauru. The call prioritized projects in the areas of health and well-being, sports, education, culture, environmental education and women’s entrepreneurship.

The first edition drew strong community engagement, with 106 proposals submitted. Following a three-stage selection process—document review, technical evaluation, and final approval—conducted by an internal committee with support from a specialized external consultancy, nine social projects were selected. Bracell allocated approximately R$600,000 for the implementation of these projects throughout 2025, benefiting 623 people.

Among the selected projects, one initiative in the municipality of Pederneiras (SP) stands out, focused on accessibility technologies for children and young people with intellectual disabilities, multiple disabilities and autism spectrum disorder (ASD). Through the project, the computer lab of the local Association of Parents and Friends of Exceptional Children (Apae) was provided with specialized devices and software, along with professional training.

In Botucatu (SP), another selected project provided training in the Esmirna tapestry technique for individuals undergoing psychosocial rehabilitation, supporting entrepreneurship, new livelihoods, and social inclusion. Over six months, participants engaged in creative workshops. Following the workshops, an exhibition of the products was organized, a commercial catalog was developed and the items were made available in department and home décor stores.

In Lençóis Paulista (SP), the project Guerreiros da Quadra para a Vida, led by the Lençoense Basketball Association (Alba), supported vulnerable young people by offering basketball classes outside regular school hours—promoting social inclusion, discipline and personal development.

To ensure the support we provide is effective, selected projects are required to submit financial reports and activity reports in accordance with the rules established in the call for proposals. Bracell monitors and tracks the investment, as part of our commitment to transparency and long-term social impact in the communities where we operate. 

 

Boosting local businesses: from production to sales

In addition to providing training and technical support, Bracell has created different channels to enable entrepreneurs from supported social programs to market their products and reach new audiences. 

In our Bahia and São Paulo operations, Bracell Social Collective Fairs bring producers directly to Bracell’s factories and offices, where employees can purchase vegetables, honey and bee products, jams, soaps, candles and other artisanal products. The initiative connects producers to consumers, strengthening local businesses and fostering closer community ties. 

In 2025, Bracell opened product stores at its Bahia facility, with plans to expand to other operations. Although different from the fairs, these physical stores expand employees’ access to Bracell’s finished products at prices more affordable than those found in the traditional market.

The Bracell Social Center in Lençóis Paulista serves as a permanent showcase for these businesses. The inclusive sociocultural space, open to the community, provides ongoing exhibition opportunities for products from women-owned businesses, beekeepers, and small rural producers. 

 

Building brighter futures for students

MS Florestal, in partnership with Bracell Social, organized a career fair called Raízes do Futuro for more than one thousand students aged 16 to 18 from Bataguassu (MS) and surrounding areas, bringing together teachers and professionals to discuss the future of work, education and emerging opportunities. The event included a preparatory session for the ENEM, lectures and opportunities for students to engage with universities and Higher Education Institutions represented at the fair.

Social Impact Business Development

The Impact Business Development Program (FNI) provides technical and operational support to productive associations and/or groups in the Northern Coast and Agreste regions of Bahia, helping to build the institutional and entrepreneurial capabilities of organizations and their leaders. The program supports initiatives aimed at improving processes, products, market access, and public policies geared toward business growth.

In total, the program reached 4,528 people directly and indirectly. FNI is active in the municipalities of Alagoinhas, Araçás, Aramari, Cardeal da Silva, Catu, Entre Rios, Esplanada, Inhambupe, and Olindina, all in the state of Bahia. In 2025, FNI activities generated R$954,950.22 in income for participating businesses.

Additionally, securing supply contracts through the Food Procurement Program (PAA) and the National School Nutrition Program (PNAE) served as important avenues to expand and ensure the sustainability of supported businesses. In 2025, the Mato Limpo Community Association (Araçás) and the Dona Maria Community Cooperative (Olindina) advanced with approved projects and contracts under PAA and PNAE, totaling R$1,945,322.13.

GRI 203-2 Significant indirect economic impacts

We invest in structuring community initiatives in the regions where we operate through Bracell Social. Our Social Investment Policy embodies Bracell’s commitment to creating positive social value while respecting local customs, traditions, and culture, and building strong, trust-based relationships with the communities where we operate.

Through Bracell Social, we develop enabling projects in the areas of education, entrepreneurship, and civic engagement:

Education: we help to improve educational practices in public schools. These programs foster environmental civics, develop leadership skills, and support the professional development of adolescents and young adults, underscoring our belief in the transformational role of education.

Empowerment: Bracell works to strengthen production collectives and social enterprises by creating learning environments focused on creating employment and income opportunities. We invest in training and technical assistance, develop community leaders, promote cooperativism, and facilitate social participation mechanisms including public calls for projects and public-private partnerships.

Estar Bem: we provide free access to leisure, cultural activities, health services, and civics initiatives for local residents.

Discover more about our Bracell 2030 goals for women’s entrepreneurship, income generation, and education under GRI 3-3: Management of material topics: Community engagement and local development.

Below are some of the outcomes from Bracell Social’s key projects in São Paulo in 2025.

São Paulo
Projects Municipalities Positive impact Stakeholders reached
Dona Della Agudos

Areiópolis

Avaí

Bauru

Borebi

Lençóis Paulista

Macatuba

Presidente Alves

Pederneiras

Piratininga

The Dona Della project aims to promote women’s financial independence by supporting the creation or strengthening of women-led businesses—whether formal or informal—advancing their growth and market access, and helping them gain a foothold in the market. In 2025, in partnership with Sebrae, overflow workshops were delivered at the Bracell Social Center, along with preparatory pitch workshops for the Business Meeting, the Business Meeting itself, a visit to the Sebrae Entrepreneur Fair in São Paulo, Dona Della Day in celebration of Women’s Entrepreneurship Month and consulting sessions for participating entrepreneurs. A total of 330 women participated, representing ten municipalities, and R$15,021.50 was raised through the exhibition and sale of products at the Bracell Social Collective Fair and at the Business Meeting.  330 business owners participated in the project activities.
Nós do Campo Agudos

Borebi

Iaras

Paulistânia

The Nós do Campo project aimed to promote livelihoods and food security for small farmers, with a focus on helping them transition to ecological agriculture, implement agroforestry systems, and market their produce. In 2025, a total of 124 people were benefited. They generated R$18,746.64 in sales at the Bracell Social Farmers’ Market. 124 farmers from the Zumbi dos Palmares Settlement (Iaras), P.A. Rosa Luxemburgo, P.A. Maracy 1, P.A. Vau do Jaboque (Agudos), P.A. Loiva Lurdes (Borebi) and P.A. União de Todos (Paulistânia).

 

 

 

 

 

 

 

 

 

Pollinators Agudos

Avaré

Bauru

Botucatu

Cabrália Paulista

Itatinga

Lençóis Paulista

Marília

The Polinizadores project developed beekeeping activities within Bracell’s forest areas through partnerships with eight neighboring beekeepers’ associations. The initiative aims to establish honey and bee product production in a structured, responsible and sustainable manner. In 2025, 944 beehives were installed in forest areas, resulting in the production of 680 kg of honey. In addition, four beekeepers were invited to take part in the Bracell Social Collective Fair, where they earned over R$30,557.00 from the exhibition and sale of their honey products. 51 beekeepers benefited.
Conexão Agudos, Bauru, Botucatu, Lençóis Paulista, Macatuba and Pederneiras. In its 3rd edition, the Conexão project aimed to improve participating civil society organizations’ fundraising skills, supporting their long-term sustainability.

The overall goal is to strengthen organizations through a structured learning process, as well as helping them submit applications for grants from other institutions and government programs. The capacity building also prepared these organizations to participate in general public calls for funding applications, increasing their chances of securing grants. Another specific objective is to boost their capabilities by offering training and mentoring to foster institutional growth and a new mindset around partnerships and sustainability.

32 civil society organizations and 76 people were impacted.

 

Bahia
Projects Municipalities Positive impact Stakeholders reached
Continuing Education Project Alagoinhas

Aporá

Araçás

Aramari

Cachoeira Cardeal da Silva

Conde

Entre Rios

Inhambupe

Itanagra

Ouriçangas

Terra Nova

Implemented in 12 municipalities in the Recôncavo, Northern Coast, and Agreste regions of Bahia, this project supports the professional development of public school educators and helps strengthen municipal continuing education programs. It also works with municipal education officials, students’ families, and broader society to encourage social engagement in advancing high-quality public education, through school forums and advocacy efforts aimed at local government candidates. 

In September 2025, Bahia hosted the 1st Meeting of Municipal Secretaries of Education in Alagoinhas, bringing together representatives from 12 municipal governments to reflect on challenges and progress in education management. During the event, the municipal government of Terra Nova also formally joined the program.

During the year, the project reached 273 schools, delivering a total of 1,008 hours of training.

2,358 education professionals reached

24,309 students indirectly impacted

1,232 family members engaged

 

Ecomunidade Alagoinhas

Catu

Entre Rios

Itanagra

Santo Amaro

São Sebastião do Passé

This program trains eco-agents to promote environmental awareness and best practices in the community. It also supports social and environmental initiatives, such as community gardens, revitalization of eco-parks, workshops on waste reuse, and robotics using recycled materials. 19 communities served; 1,601 people reached; 158 eco-agents trained.

 

Environmental Education Center Acajutiba

Alagoinhas

Aporá

Araçás

Aramari

Cardeal da Silva

Catu

Entre Rios

Inhambupe

Itanagra

Ouriçangas
Rio Real

An interactive space dedicated to sharing knowledge and practices in environmental education, the Environmental Education Center is located at one of Bracell’s sites in Bahia, in the municipality of Inhambupe. It offers activities such as lectures and games on environmental topics, recycling workshops, guided walks along ecological trails, and visits to an agroforestry system. Students, teachers, and local communities are among the groups visiting the center every week. 4,675 visitors received; 109 schools reached.
Impact Business Development Program Alagoinhas

Araçás

Aramari

Cardeal da Silva

Catu

Entre Rios

Esplanada

Inhambupe

Olindina

The Impact Business Development Program (FNI) provides technical and operational support to productive associations and/or groups in the Northern Coast and Agreste regions of Bahia, helping to build the institutional and entrepreneurial capabilities of organizations and their leaders. The program encourages and supports initiatives aimed at improving processes, products, market access, and public policies geared toward business growth.

In total, R$954,950.22 in income was generated.

 

34 communities reached; 4,528 people reached directly and indirectly.

 

 

Nós do Campo

 

Alagoinhas

Cardeal da Silva

Entre Rios

Esplanada

Itanagra

Mata de São João

Rio Real

This program helps to improve agricultural yields, increase biodiversity, and support income generation for small farmers. Nós do Campo promotes agroforestry methods by providing support and technical assistance to family farmers. The goal is to introduce new technologies and expand the use of agroforestry systems combined with eucalyptus cultivation. R$3,722.00 in income generated 14 communities reached

1,508 people directly and indirectly reached

 

 

Pollinators Program Alagoinhas

Araçás

Camaçari

Cardeal da Silva

Catu

Entre Rios

Esplanada

Itanagra

Jandaíra

Mata de São João

 

 

 

Our Pollinators Program supports beekeeping as an alternative profitable use of eucalyptus plantations. Bracell authorizes certified beekeepers to install and manage apiaries in native vegetation areas owned by the company in Bahia.

The program also provides technical assistance to beekeepers to improve productivity, as well as offering courses and workshops on topics such as propolis, pollen, and mead production.

1,024 people directly and indirectly reached

10 municipalities reached.

Women Producers Santo Amaro

São Sebastião do Passé

 

Our Women Producers program promotes both individual and collective empowerment of women in the Recôncavo Baiano region, with a focus on entrepreneurship and autonomy. Through this initiative, the company supports 11 groups made up of women pursuing various alternative livelihoods, such as bioponics, food production, and egg-laying poultry farming. R$ 49,337.00 in income generated 720 people directly and indirectly reached

 

11 communities reached

 

Ponteira Sustentável

 

Água Fria

Alagoinhas

Aporá

Araçás

Aramari

Cardeal da Silva

Conde

Entre Rios

Esplanada

Inhambupe

Itanagra

Jandaíra

Mata de São João

Ouriçangas

Rio Real

Sátiro Dias

Our Ponteira Sustentável (“Sustainable Tops”) program benefits associations and cooperatives by donating eucalyptus waste left over from harvesting, which is used as an additional source of income and funds for those living in these communities.

To improve wood waste collection activities on our properties, Bracell supported the collective organization of local associations into a cooperative that now provides a range of services in the region: the Mixed Cooperative of Rural Workers and Farmers in the North Coast and Agreste of Bahia (COOPNORTE/BA). R$ 10,804,865.35 in income generated

 

4,588 direct and indirect participants

 

Bracell Social Center

Launched in November 2024 as a dedicated community engagement space, the Bracell Social Center completed its first full year of activities in 2025, exceeding participation targets and delivering a broad and diverse program of activities.

Located in Lençóis Paulista, São Paulo, the facility welcomed more than 4,000 visitors, including 1,347 individuals who directly benefited from activities throughout the year.

Within the education pillar, the Bracell Social Center serves as the starting point for the Descobertas visits program, designed for ninth-grade students from public and private schools across the region. Approximately 1,200 students from 38 schools took part in the initiative.

The Center functions as a reception and briefing venue before students visit the mill. During the experience, students gain exposure to Bracell’s mills and forestry operations, engage with different technologies, interact with employees from multiple disciplines, and learn firsthand about initiatives that help to balance economic development, sustainability, and environmental conservation.

In May 2025, the Center hosted the announcement of the nine projects selected in the first Bracell Social Public Call for Projects, allocating approximately R$600,000 to five municipalities in the state of São Paulo (see GRI 3-3: Management of material topics: Community engagement and local development) The venue also supported job transition efforts. In partnership with the Municipal Department for Economic Development, it welcomed and trained individuals laid off from a local factory earlier in the year, and provided advice to help them redirect their careers.  

As part of Women’s Month in March, Casa Bracell Social hosted a roundtable discussion under the theme, “Voices that Empower: Women, the Labor Market and Beyond,” open to the community and to women supported by civil society organizations and social assistance services. The event encouraged reflection, shared learning, and discussion on women’s professional and social experiences.

 The well-being agenda also included a free lecture titled “Taking Care of Yourself: Health and Well-Being for Women,” offering participants a holistic perspective on quality of life. In July, the Center launched the first edition of “Vacation at the Center,” providing free educational and recreational activities, including kite-making and mini-garden workshops, as well as movie sessions for children and adolescents. During the second half of the year, the venue continued to offer free monthly Pilates classes open to the public through December. 

Conexão Program

In 2025, the Bracell Social Center also hosted the Conexão program, a corporate initiative aimed at strengthening civil society organizations in the regions where Bracell operates. A total of 58 organizations applied, and 32 participated in the training cycle.

The program is designed to build organizational capacity, enabling participating organizations to improve governance practices and expand the social impact of their initiatives. By providing advice on management, financial planning, and organizational structuring, the program supports organizations in accessing funding opportunities and improving operational efficiency, fostering greater autonomy and long-term sustainability.

GRI 204-1 Proportion of spending on locally-based suppliers

In 2025, our supplier network included 1,513 registered partners with active contracts supporting operations at Bracell and Bracell Papéis (Lençóis Paulista (SP) site). In our Bahia and Pernambuco operations—Bracell and Bracell Papéis—we had a total of 6,464 suppliers with active contracts. In total, we had 7,977 registered suppliers, of which 1,816 held active contracts in our operations.

We sourced 69% of our supplier spend locally in São Paulo—for both Bracell and Bracell Papéis operations—and 12% in Bahia, for Bracell operations. At Bracell Papéis Nordeste, 3% of supplier spend was local—for operations in Feira de Santana (BA), São Gonçalo dos Campos (BA), and Pombos (PE).

Local suppliers are defined as those based in the states where our operational sites are located. The percentage of spending on local suppliers is calculated across all sites. For confidentiality reasons, Bracell does not report financial data.

Proportion of spending on locally-based suppliers
Business unit Bahia (pulp) São Paulo (pulp) and Paper Southeast Paper Northeast
Percent 62% 82% 76%

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 403-1 Occupational health and safety management system

Bracell has an Integrated Occupational Health and Safety Management System that is compliant with Brazilian legal requirements, including the Regulatory Standards (NRs) of the Ministry of Labor and Employment (MTE), labor laws, International Labor Organization (ILO) conventions, Brazil’s Civil and Criminal Codes, collective bargaining agreements, licensing and inspection requirements, and guidelines issued by the Public Labor Prosecutor’s Office (MPT). The system covers all workers, activities, and work locations within the company.

OHS management is carried out by Bracell employees who are members of the Specialized Occupational Health and Safety Service (SESMT), as required by NR-4. The team includes occupational safety engineers and technicians, occupational physicians, occupational nurses, and nursing technicians. Bracell’s Risk Management Program (PGR) and Occupational Health Surveillance Programs (PCMSO) outline safety standards and procedures applicable to all activities conducted by employees and contractors, in line with our Integrated Management System Policy.

The System’s procedures establish day-to-day safety requirements and specific control measures for different risk scenarios. The management model follows guidelines set out in our Integrated Management System Manual and in ISO 9001 and ISO 14001. In addition, Bracell has an Integrated Occupational Health and Safety Management System that is compliant with Brazilian legislation and regulatory standards, ensuring a safe work environment aligned with best practices in occupational health.

GRI 403-2 Hazard identification, risk assessment, and incident investigation

Bracell has an Occupational Health and Safety Management System (OHSMS) in place to identify potential hazards, assess risks, and implement proactive safety measures across both routine and non-routine activities.

Risk and hazard assessments, aimed at protecting people, the environment, assets, and business continuity, are conducted by the Process Safety, Emergency, and Business Risk Management teams, which are part of the Occupational Health and Safety Department.

Health and safety performance indicators are monitored by the Health & Safety team, which presents performance metrics to all departments in monthly meetings, and to the Board and Management in bi-weekly occupational health and safety meetings.

Programs, processes, and practices for risk assessment and accident investigation

We employ specific tools and programs to identify and assess risks, as outlined in the table below:

Health and Safety Hazard Reports These technical reports include both quantitative and qualitative assessments of workplace environmental conditions, which are actively monitored to evaluate physical, chemical and biological risks and ensure a safe and healthy work environment for employees. With respect to hazardous activities, the reports address exposure to life-threatening risks, and these environments are continuously assessed to ensure safe working conditions.
Workplace Environment Condition Reports (LTCAT) These reports identify and document employees’ exposure to harmful agents (physical, chemical and biological) in the workplace, serving as a key document for social security purposes and eligibility for special retirement, as well as supporting hazard bonuses and special pension status (PPP).
Always Alert Program  A preventive tool designed to identify and report substandard conditions or practices, near misses or incidents and employees exercising their right to refuse unsafe work.
Internal Accident and Harassment Prevention Committee (CIPA) Bracell has a continuous improvement subcommittee within CIPA that documents safety actions implemented and their practical outcomes.
Internal Rural Accident and Harassment Prevention Committee (CIPATR) Bracell SP Florestal has a continuous improvement committee that documents safety actions implemented and their practical outcomes.
Occupational Safety Inspection Reports (RIST) Occupational Safety Inspections serve as an internal audit tool covering safety, health, and environmental issues. These reports verify compliance with requirements, including Regulatory Standards, mandatory training, and other legal obligations. Reports are prepared on a regular basis by Occupational Safety employees, supporting compliance with applicable regulations and for continuous improvement in our operations. As an additional preventive measure, department-specific and general performance review meetings are held to develop action plans addressing safety inspection items raised by the Occupational Safety team.
RADAR – Administrative Disciplinary Rules and Restorative Actions These rules are designed to embed operational discipline and safe behaviors in Bracell’s mill and forestry operations. In addition to strengthening the safety behaviors of everyone who interacts with our operations, RADAR also establishes a more transparent and fair approach to recognizing good safety practices, as well as a no tolerance stance on unsafe conduct that is liable to cause accidents in our operations.
Safe Behavior Program (PCS) Focused on strengthening risk perception and protecting lives through open, constructive and respectful communication.
Occupational Benzene Exposure Prevention Program (PPEOB) A set of mandatory measures in Brazil designed to protect workers exposed to benzene, a carcinogenic substance found in fuel stations and petrochemical plants, among other environments, in compliance with NR-15 (Appendix 13-A).
Respiratory Protection Program (PPR) A mandatory program in Brazil comprising technical and administrative measures, established by Fundacentro and regulated by Ordinance 672/2021, to ensure the proper use of respirators and safeguard workers’ health against harmful agents such as dust, fumes, vapors and biological hazards when engineering controls alone are not sufficient, including equipment selection, training, fit testing and maintenance of Respiratory Protective Equipment (RPE).

Process Quality Assurance and Training

We provide employee training to ensure occupational health, well-being, and safety processes and tools are effective (learn more under GRI 403-5 Worker training on occupational health and safety). In this context, we carried out the following:

  • Training on Regulatory Standards (NRs) and operational procedures (read more under GRI 3-3 Attracting, Developing and Retaining Employees);
  • Oversight of the onboarding process for new employees and ongoing training
  • Regular safety audits conducted by the Occupational Safety team to identify areas needing to be addressed and to improve management practices and processes
  • Safety certification for specific tasks, such as working at heights and in confined spaces.

Through the Work Permit (WP) system and the Sempre Alerta program, employees may formally exercise their Right of Refusal when activities present a potential risk to their physical integrity. Once documented, the employee works jointly with the Occupational Health and Safety team, department head and other relevant parties to assess the identified risks and define actions to control or eliminate them, ensuring the task is carried out safely.

Monitoring and continuous improvement

  • Process outcomes are reviewed and presented in monthly meetings of departmental safety committees and the Master Occupational Safety Committee, ensuring the system is continuously reviewed and improved.
  • A Safety Performance Index (IDS) tracks safety indicators by department and supports safety management.
  • Accidents and incidents are investigated using Bracell’s internal Root Cause Analysis procedure (PR.IND.BSP.612), which includes an improved methodology and behavioral analysis.

Communication channels and worker protection

We provide formal channels for employees to report hazards and unsafe situations, ensuring protection from retaliation:

  • IDS – a tool whereby employees can report risk situations, which are addressed by the safety team
  • Whistleblower hotline (Contato Seguro) – ensures confidentiality and protection against intimidation or penalties (read more under GRI 2-25 Processes to remediate negative impacts);
  • Sempre Alerta program – enables workers to exercise their right to refuse unsafe tasks, without fear of retaliation
  • Internal policies and processes to ensure that safety-related reports do not result in negative impacts on employment or the employee’s professional standing.

In our Bahia operations, we have implemented a program, called OPA (Observe, Plan, Act), to encourage employees to report risk conditions and adopt a “see and act” approach. Reports are managed by the relevant departments and discussed in daily management meetings, ensuring effective corrective action is taken and fostering a continuous safety culture.

GRI 403-3 Occupational health services

We offer occupational health services to ensure a safe environment and promote employee well-being. These include disease prevention initiatives, wellness campaigns, and wellness programs designed to provide safe working conditions and a high quality of life for all team members.

All services are provided by qualified professionals, including an occupational physician, occupational nurse, and nursing technician. To ensure quality of service, we conduct annual satisfaction surveys with employees. In addition, we engage external audits to ensure compliance and service effectiveness.

Workers have unrestricted access to on-site medical clinics, which provide 24-hour in-person care and remote support via corporate phone, email, and internal extension. Health promotion and occupational disease prevention information is shared through the company’s official channels, including the intranet, weekly Comunica newsletters and Comunica TV, digital and physical bulletin boards, emails, and Rádio Bracell.

Main services provided:

  • Occupational Health & Safety Program (PCMSO): occupational health checkups tailored to the risks of each position, aiming to preserve employee health. If any abnormal results are detected during checkups, the relevant individuals are temporarily relieved of their duties, provided with appropriate treatment based on the recommendations of our medical team, and monitored until their health status normalizes.
  • Hearing Conservation Program (PCA): a set of measures to mitigate noise-related risks, thereby preventing or minimizing work-related hearing impairment. This includes a hearing management system integrated into the environmental management system.
  • Health and quality-of-life campaigns: initiatives based on Brazil’s national health calendar.
  • Health and Ergonomics Committees: strengthening prevention and promoting well-being in the workplace.
  • Occupational health checkup management: continuous monitoring of employees’ health.
  • Medical and nursing care: access to clinical support and first aid.
  • Acolher program: management of workstations for pregnant employees.
  • Occupational disease control and prevention: risk and absenteeism management.

We also regularly provide both individual and group counseling on topics such as maintaining a healthy diet and the importance of exercising regularly.

GRI 403-4 Worker participation, consultation, and communication on occupational health and safety

We actively involve our employees in the development, implementation, and evaluation of the Occupational Health and Safety Management System. Employee participation is encouraged through training, educational campaigns, toolbox talks, and monitoring tools, ensuring an inclusive and effective approach.

Employees contribute directly to training programs, campaigns, and educational initiatives, and also participate in our Safety Performance Index (IDS) and continuous improvement activities.

Communication channels

Health and safety information is shared through leadership and internal communication tools such as Comunica TV and bulletin boards, ensuring that all employees have access to up-to-date guidelines.

Formal health and safety committees

Bracell maintains formal committees composed of both employees and contractors, who are tasked with continuously monitoring, analyzing, and improving safety conditions. Their key roles include:

  • Identifying and mitigating risks, and implementing preventive measures
  • Assessing working conditions, conducting inspections, and improving operational environments
  • Designing and implementing occupational health and safety programs
  • Investigating and responding to serious, imminent risks, with the authority to recommend halting operations until the issues are resolved.

These committees meet monthly and have the autonomy to recommend actions and monitor implementation, influencing the design and implementation of safety policies.

All Bracell workers are represented on health and safety committees.

Active employee participation

Employees are encouraged to actively engage around health, well-being, and safety through:

  • Toolbox talks, which foster open communication to raise concerns and offer suggestions
  • Support for the Internal Accident Prevention Committee (CIPAA), ensuring that reported issues are addressed
  • Safety walks, which allow managers to hear employees’ perspectives on risks and best practices
  • Recognition campaigns, which highlight good safety practices and promote a culture of prevention.

Both in-house and third-party workers are encouraged to identify, report, and document any events related to health, well-being, and safety occurring in our operations. Following investigation, action plans are developed for each reported case. All of this information is evaluated as part of the incident investigation process.

Our 100% Safe Journey Program encourages active employee participation. Through this program, we recognize best practices and high safety standards demonstrated by employees. Following assessments of compliance with safety standards, winners are announced and awarded bronze, silver, or gold badges.

GRI 403-5 Worker training on occupational health and safety

We believe that both hard and soft skills are essential to the success of our employees. With this in mind, we have continued to bolster our professional development programs, positive organizational culture, and health and safety protocols. All of these efforts are aligned with our commitment to promoting a culture of diversity, equity and inclusion.

We provide health and safety training to all employees and contractors to ensure a safe work environment and compliance with regulatory standards. These training programs, developed in plain language, aim to prevent occupational risks, promote employee well-being, and minimize accidents, covering topics from machine safety to preventive measures in risk situations.

All training materials are reviewed periodically to reflect legislative updates. In addition, we assess training effectiveness through internal audits and safety indicators. To ensure the continuous improvement of our health, well-being, and safety training efforts, we also conduct satisfaction surveys and performance evaluations.

This supports ongoing employee training, reduced operational risks, and a strong safety culture in the workplace.

In 2025, we held a Safety Standstill at the Avaí (SP) and Lençóis Paulista (SP) nurseries. The initiative aimed to encourage reflection on the importance of safety and constant attention to risks, particularly falls and sprains, which are among the leading causes of accidents in the sector.    

We also carried out our traditional Yellow May campaign. Throughout the month, the Forestry and pulp transportation teams conducted intensive traffic safety awareness activities. The 2025 campaign focused on the impact of the fast pace of daily life on people’s behavior in traffic. Teams discussed the importance of slowing down to save lives and of safe behaviors, such as not using mobile devices while driving and staying within speed limits. Employees working in in-house pulp transportation participated in a full day dedicated to safety, totaling 16 hours of engagement, including toolbox talks.

General health and safety training

Training covers both theoretical and practical content, such as emergency drills and instructions on proper use of Personal Protective Equipment (PPE). This includes training on:

  • Accident Prevention (NR 01 – Employee Induction, NR 05 – CIPA)
  • First Aid and Emergency Response (NR 07 – First Aid, Fire Response Team)
  • Machine and Equipment Safety (NR 12 – Machinery Protection, NR 31.12 – Machine Operation Safety)
  • Safe Handling of Chemicals (NR 20 – Occupational Safety and Health with Flammables and Fuels)
  • Working at Heights and in Confined Spaces (NR 35 – Work at Heights, NR 33 – Confined Space Work)
  • Vehicle Operation and Cargo Transport (Defensive Driving, Cargo and Emergency Vehicle Drivers).

Job-specific training by area

Mills

Training programs on industrial operations and safety at production facilities, including:

  • NR 10 – Safety in Electrical Installations and Maintenance (Low and High Voltage – SEP)
  • NR 11 – Safe Operation of Forklifts
  • NR 13 – Boiler and Process Unit Safety
  • NR 18 – Safety in Welding and Aerial Platform Operations
  • NR 20 – Handling of Flammables and Fuels
  • Lockout-Tagout

Forestry

Training focused on field safety, including:

  • NR 31 – Safe Operation of Agricultural and Forestry Machinery
  • NR 31.7 – Prevention of Accidents Involving Pesticides
  • Safe Operation of Forestry Equipment (Chainsaws, Forwarders, Harvesters, Chippers, etc.)
  • Forest Fire Prevention and Control

Fire Prevention and Response

We run an annual training program for the fire teams responsible for responding to fires in our forestry and mill operations, in compliance with the regulations of the São Paulo and Bahia fire departments. These training sessions cover:

  • Implementation of strategic actions
  • Use of equipment
  • Defensive driving techniques for firefighting vehicles
  • Use of helicopters for support in fire response
  • Best practices in local community engagement

Methodology and application:

  • Regulatory training (NRs) is tailored to employees’ roles and tasks, in compliance with legal requirements.
  • Internal safety programs, such as RADAR and Sempre Alerta, address best practices and safe behavior.
  • Hands-on training and drills ensure readiness for emergency situations.
  • New employee onboarding includes general instructions on occupational health and safety

GRI 403-6 Promotion of worker health

Bracell provides health and dental plans for all employees and their dependents, with national coverage. We also offer discounts in drugstore chains, gyms, educational institutions, and partnerships with organizations such as the Industrial Social Service (SESI), providing access to sports and leisure activities.

Bracell’s health management approach is centered on promoting well-being and preventing illness, both in the workplace and in employees’ daily lives. We also provide both individual and group counseling on topics such as periodic checkups, maintaining a healthy diet and the importance of exercising regularly. Key initiatives include:

Health benefits and wellness programs

Wellness programs

  • Mental health: Levemente program, focused on emotional well-being
  • Physical activities: Bracell Runners and Corrida do Eucalipto (running and brisk walking programs), and the Bracell Challenge, which supports better quality of life by encouraging healthy eating habits and regular exercise. These initiatives are available to both employees and their eligible dependents.
  • Maternal health: Pessoinhas program: multidisciplinary support for pregnant employees and spouses, providing assistance throughout pregnancy up to six months after childbirth.
  • Corporate Citizenship: extension of maternal leave by an additional 60 days, totaling 180 days of leave, and extended paternal leave by an additional 15 days, totaling 20 days of leave. Employees also receive baby first aid training and attend sessions as part of the Pessoinhas program.

Annual health campaigns:

  • coordinated awareness initiatives on topics including sexually transmitted infections, respiratory diseases, flu vaccination, breast (Pink October) and prostate cancer prevention (Blue November), dehydration prevention, and two annual blood donation drives.

Bracell ensures workers’ health information is kept strictly confidential, in compliance with Brazil’s General Data Protection Regulation (BR GDPR). All data is handled exclusively by healthcare professionals, ensuring confidentiality and impartiality.

GRI 403-7 Prevention and mitigation of occupational health and safety impacts directly linked by business relationships

Both employees and contractors have access to outpatient services, including checkups by nurses and physicians. When necessary, workers are referred for additional exams and specialized medical care.

Beyond providing health services, we actively identify hazards and risks associated with the activities of both employees and contractors over whom we do not have direct control. To prevent and mitigate these risks, we have a robust risk management system based on continuous risk identification and monitoring using tools such as our Risk Management Program (PGR), Occupational and Safety Procedures, Job Safety Analysis, Permits to Work, Occupational Safety Inspection Reports (RIST), Safety Committees, Gemba Safety Walks, Preliminary Risk Analysis (APR), and Work Clearance (LT).

Contractors are required to follow an internal procedure, ensuring that their risk management programs align with Bracell’s safety guidelines for proper task execution.

The main risks identified include mechanical, electrical, thermal, chemical, ergonomic, and physical hazards, as well as risks related to fire and explosion. Occupational risks are also mapped, such as noise, vibration, non-ionizing radiation, poor posture, manual lifting, falls, poisonous bites, and road accidents. In addition, hazards like working at heights, handling chemicals, and electricity may result in falls, burns, or electric shocks.

Safety is further enhanced by our Specialized Occupational Health and Safety Engineering Service (SESMT) and a 24-hour Emergency Prevention and Response Team, organized across three shifts.

In our mill operations, a dedicated full-time emergency team operates around the clock, including an emergency response crew available for all work shifts, as well as trained fire wardens prepared to respond to emergencies with water and chemical fire trucks, ambulances, portable water cannons, and automated external defibrillators. In Bahia, the emergency team is also a participant in the Camaçari Industrial Park’s Mutual Emergency Response Plan (PAM).

Occupational health and safety management practices

Safe behavior The safe behaviors outlined in our Code of Conduct are reinforced through clear guidelines for employees.
Occupational health & safety programs Comportamento Seguro (“Safe Behavior”) and Sempre Alerta (“Always Alert”)—two programs covering all employees, including contractors.
Inspections Safety inspections to identify unsafe working conditions and behavior, inform continuous improvement, and strengthen our safety culture.
Contractor audits Six-monthly audits on compliance with applicable legal requirements.
Integrated Management System Procedures, instructions, and incident investigation forms are incorporated in Bracell’s Integrated Management System (IMS).

GRI 403-8 Workers covered by an occupational health and safety management system

Bracell ensures that 100% of our workforce is covered by our Occupational Health and Safety Management System. This includes 10,533 direct employees and 15,546 contractors under the company’s control. All workers are covered by internal audits and external audits on legal and regulatory compliance conducted during the reporting period. Learn more about employee and contractor figures under GRI 2-7 and GRI 2-8.

We have an Occupational Health and Safety Management System in place based on legal requirements and/or recognized standards/guidelines. 

We follow Brazilian regulatory standards and ABNT 14280, including NR 01, which addresses risk management and the Risk Management Program (PGR), and NR 07, on Occupational Health & Safety Programs (PCMSO). These guidelines are addressed in our Integrated Management Policy.

GRI 403-9 Work-related injuries

Hazards and risks with the potential to cause serious accidents are identified and addressed through detailed analyses, planning, qualitative and quantitative assessments, a risk matrix, and consequence assessments. Tools such as Sempre Alerta and Potential Critical or Fatal Incident Assessments (PSIF) support risk identification and assessment.

Workplace safety is reinforced through internal procedures like Job Safety Analysis and Permits to Work. All employees, whether direct or outsourced, must be certified and trained before requesting any permit to work. No maintenance work can begin without a permit to work, in accordance with our “Commitment to Life – Stay Alert” safety policy. Routine operations are also governed by Standard Operating Procedures and safety pointers.

No worker has been excluded from work-related injury data.

Established safety targets include maintaining an overall frequency rate (TRIR and LTIR) lower than 3.0, a total recordable injury rate (TRIR) below 1.0, a lost time injury rate (LTIR) below 2.5, and a severity rate below 50.

In 2025, our Northeast Paper operations achieved significant improvement in safety performance following the implementation of corporate safety policies and programs. The number of lost-time injuries decreased from 14 in 2023 to 7 in 2024 and 2 in 2025.

In Pulp Mill, Procurement and Paper operations, we use the Safety Performance Index (IDS), a metric that consolidates Safety Programs and enables assessment of each operation’s performance. This index takes into account, among other factors, the status of incident investigations, records of behavioral safety observations, unsafe conditions, near misses and employees exercising their right of refusal, as well as key safety metrics such as injury frequency rate, severity rate and near miss rate. These indicators guide discussions within the Safety Committees and support the development of action plans focused on awareness campaigns, inspections and continuous improvement across operations.

Number of work-related injuries per year, by operation

Bahia Pulp

Number of work-related injuries per year, by operation
DIRECT EMPLOYEES
  Bahia Forestry Bahia Mill
Number of injuries  Injury rates Number of injuries  Injury rates
Lost time  No lost time Lost time  No lost time Lost time  No lost time Lost time  No lost time
2022 0 0 0 0 1 0 0.5 0
2023 0 0 0 0 0 1 0 0.45
2024 0 1 0 0.41 0 1 0 0.43
2025 0 0 0 0 2 2 0.84 0.84

 

Number of work-related injuries per year, by operation
CONTRACTORS
  Bahia Forestry Bahia Mill
Number of injuries  Injury rates Number of injuries  Injury rates
Lost time  No lost time Lost time  No lost time Lost time  No lost time Lost time  No lost time
2022 1 3 0.14 0.41 0 2 0 1.4
2023 1 0 0.19 0 0 1 0 0.62
2024 1 3 0.21 0.64 0 0 0 0
2025 0 0 0 0 0 0 0 0

 

Work-related injuries
Category 2024 2025
Bahia Forestry Bahia Mill Bahia Forestry Bahia Mill
Employees Contractors Employees Contractors Employees Contractors Employees Contractors
Number of hours worked 2,433,329,080 4.709.789.380  2,311,170 1,583,730 2,449,902 4,539,559 2,382,321 2,988,112
Basis for numbers of hours worked (200,000 or 1,000,000) 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000
Number of fatalities as a result of work-related injuries 0 0 0 0 0 0 0 0
Rate of fatalities as a result of work-related injuries 0 0 0 0 0 0 0 0
Number of high-consequence work-related injuries (excluding fatalities) 1 4 1 0 0 0 2 0
Rate of high-consequence work-related injuries (excluding fatalities) 0 0 0.43 0 0 0 0.84 0
Number of recordable work-related injuries (including fatalities) 01 04 0 0 0 0 4 0
Rate of recordable work-related injuries (including fatalities) 0 0 0 0 0 0 1.68 0

São Paulo Pulp

Number of work-related injuries per year, by operation
DIRECT EMPLOYEES
  São Paulo Forestry São Paulo Mill
Number of injuries  Injury rates Number of injuries  Injury rates
Lost time  No lost time Lost time  No lost time Lost time  No lost time Lost time  No lost time
2022 6 27 1.46 6.82 2 15 0.82 6.14
2023 7 24 1.16 4.46 3 14 1.12 5.22
2024 15 45 1.93 3.87 2 22 0.73 8.04
2025 11 38 1.21 4.19 5 15 1.53 4.6

 

Number of work-related injuries per year, by operation
CONTRACTORS
  São Paulo Forestry São Paulo Mill
Number of injuries  Injury rates Number of injuries  Injury rates
Lost time  No lost time Lost time  No lost time Lost time  No lost time Lost time  No lost time
2022 3 35 0.3 2.89 2 17 0.62 5.31
2023 9 47 0.59 3.1 5 19 2.32 8.8
2024 11 39 0.77 1.95 7 13 2.22 4.13
2025 16 28 1.06 1.86 4 21 0.93 4.88

 

Work-related injuries
Category 2024 2025
São Paulo Forestry São Paulo Mill São Paulo Forestry São Paulo Mill
Employees Contractors Employees Contractors Employees Contractors Employees Contractors
Number of hours worked 7,752,947 14,347,400 3,225,864.86 4,384,225.10 9,075,844 15,055,570 3,260,854 4,303,903
Basis for numbers of hours worked (200,000 or 1,000,000) 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000 1,000,000
Number of fatalities as a result of work-related injuries 0 0 0 0 0 0 0 0
Rate of fatalities as a result of work-related injuries 0 0 0 0 0 0 0 0
Number of high-consequence work-related injuries (excluding fatalities) 15 11 0 0 11 16 5 4
Rate of high-consequence work-related injuries (excluding fatalities) 1.93 0.77 0 0 1.21 1.06 1.53 0.93
Number of recordable work-related injuries (including fatalities) 45 39 26 26 49 44 21 25
Rate of recordable work-related injuries (including fatalities) 5.8 2.72 8.06 5.93 5.4 2.92 6.44 5.81

Bracell Papéis Sudeste (Southeast Paper)

Number of work-related injuries per year, by operation
DIRECT EMPLOYEES
Year Number of injuries  Injury rates
Lost time  No lost time Lost time  No lost time
2024 1 6 1.2 7.18
2025 2 10 1.93 9.65

Note: Bracell Papéis started operations in 2023 and is reporting its sustainability performance indicators for the first time, for year 2024.

 

Number of work-related injuries per year, by operation
CONTRACTORS
Year Number of injuries  Injury rates
Lost time  No lost time Lost time  No lost time
2024 0 0 0 0
2025 0 0 0 0
Note: Bracell Papéis started operations in 2023 and is reporting its sustainability performance indicators for the first time, for year 2024.
Work-related injuries (Southeast Paper Operations)
Category 2024 2025
Employees Contractors Employees Contractors
Number of hours worked 835,786.17 91,203.20 1,035,950.94 405,831.60
Basis for numbers of hours worked (200,000 or 1,000,000) 1,000,000 1,000,000 1,000,000 1,000,000
Number of fatalities as a result of work-related injuries 0 0 0 0
Rate of fatalities as a result of work-related injuries 0 0 0 0
Number of high-consequence work-related injuries (excluding fatalities) 0 0 2 0
Rate of high-consequence work-related injuries (excluding fatalities) 0 0 1.93 0
Number of recordable work-related injuries (including fatalities) 0 0 12 0
Rate of recordable work-related injuries (including fatalities) 0 0 11.58 0

Note: Bracell Papéis started operations in 2023 and is reporting its sustainability performance indicators for the first time, for year 2024.


Bracell Papéis Nordeste (Northeast Paper)

Number of work-related injuries per year, by operation
DIRECT EMPLOYEES
Year Number of injuries Injury rates
Lost time No lost time Lost time No lost time
2024 9 20 2.92 9.42
2025 2 25 0.61 7.68

Note 1:  Bracell Papéis started operations in 2023 and is reporting its sustainability performance indicators for the first time, for year 2024.

Note 2: Our Northeast paper operations began keeping records of no-lost-time injuries in August 2024.
Note 3: No indicents involving third-party workers were reported in our Bracell Papéis Nordeste operations.

Note 4: At Bracell Papéis Nordeste (Northeast paper operations), the monitoring and recording of incidents involving contracted workers are carried out directly by the respective service provider companies.

 

Work-related injuries (Northeast Paper operations) 
Category 2024 2025
Employees Contractors Employees Contractors
Number of hours worked 3,088,256 99,840 3,256,7043,106,880 130,680119,072
Basis for numbers of hours worked (200,000 or 1,000,000) 1,000,000 1,000,000 1,000,000 1,000,000
Number of fatalities as a result of work-related injuries 0 0 0 0
Rate of fatalities as a result of work-related injuries 0 0 0 0
Number of high-consequence work-related injuries (excluding fatalities) 3 0 2 0
Rate of high-consequence work-related injuries (excluding fatalities) 0.97 0 0.6164 0
Number of recordable work-related injuries (including fatalities) 9 0 4 0
Rate of recordable work-related injuries (including fatalities) 2.91 0 1.2329 0

Note 1: Bracell Papéis started operations in 2023 and is reporting its sustainability performance indicators for the first time, for year 2024.

Nota 2: The recorded occupational accidents include incidents such as collisions with objects, crushing injuries, sprains, exposure to chemical substances or extreme temperatures, falls, cuts, commuting accidents, and bites from venomous animals. All of these risks are already part of operational risks matrix and are part of occupational safety procedures.

Note 3: Our Northeast paper operations began keeping records of no-lost-time injuries in August 2024.

Note 4: No indicents involving third party workers were reported in our Bracell Papéis Nordeste operations.

Note 5: At Bracell Papéis Nordeste (Northeast paper operations), the monitoring and recording of incidents involving contracted workers are carried out directly by the respective service provider companies.

GRI 403-10 Work-related ill health

Bracell did not record any occupational diseases among employees or workers in 2025. No worker was excluded from the management of occupational hazards and risks. These risks are monitored and managed based on medical records in the SOC management system and legally mandatory programs such as our Rural Occupational Risk Management Program (PGRTR) and Occupational Health & Safety Program (PCMSO).

Bracell ensures compliance with Regulatory Standard 01, using specific work orders to ensure conformity to occupational health and safety guidelines. Additional preventive tools include task safety analysis, prevention cards, and permits to work. In reporting information on occupational disease hazards and risks, Bracell follows Brazil’s Regulatory Standard 07, covering the Occupational Health Surveillance Program; NR 01, which sets out general provisions on occupational risk management; and NR 17, which addresses ergonomics—ensuring strict control over any factors that may affect workers’ health.

Information on the main types of work-related ill health is not disclosed for confidentiality reasons under the Brazilian General Data Protection Regulation (BR GDPR) and due to doctor-patient privilege.

All employees diagnosed with work-related illnesses are treated and monitored by Bracell’s Health team. When necessary, they are referred to specialists, with costs covered by the company. If an employee requires medical leave exceeding 15 days, they are referred to the social security agency (INSS) to apply for accident-related benefits.

In all cases, a Work Accident Report (CAT) is filed. We monitor treatments through to the employee’s full recovery and return to duty. In addition, the workstation is assessed, and an action plan is implemented to prevent recurrence of occupational illnesses.

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 411-1 Incidents of violations involving rights of indigenous peoples

In São Paulo, the Araribá Indigenous Territory is located in Avaí (SP), and the Tekoa Nhanderu Porã village is in São Miguel Arcanjo (SP), both within a three-kilometer radius of Bracell’s forestry operations. The Araribá Indigenous Land, demarcated by the Government of São Paulo in 1910, comprises four villages (Tereguá, Ekeruá, Kopenoti and Nimuendaju), covers 1,900 hectares, and is home to 671 people. The Tekoa Nhanderu Porã village covers 34.55 hectares and has 20 residents who have lived there since 2022. There are no other indigenous communities located near Bracell’s other operational sites. 

In 2025, Bracell did not develop any formal consultation protocols for indigenous peoples. Seven meetings were held during the year between Bracell representatives, FUNAI, and indigenous leaders from the Araribá Indigenous Territory. The purpose was to present and provide updates on operational activities carried out by Bracell in the area surrounding the indigenous land, including activity schedules, operational details, the complaints channel, and preventive and mitigating measures for potential impacts on the community. These meetings were also an opportunity to elicit the perceptions of the indigenous community regarding Bracell’s activities, helping to enhance the effectiveness of implemented measures. Additional topics addressed included complaints and related follow-up actions, a project for the restoration of protected areas, and donations. 

These discussions are held prior to the start of operations through culturally appropriate engagement, in which information about Bracell’s activities is presented in clear language. This approach provides an opportunity for indigenous representatives to express their concerns, which are then reviewed and addressed by Bracell.

All meetings were documented through attendance lists, photographs and minutes, with prior permission being sought for data collection from participants, totaling 34 individuals, including 15 representatives from Bracell, 11 from the indigenous land, six from Consultoria Synergia and two from the indigenous authority, Funai. Villages are consulted through their leaders, and 100% have chiefs or vice-chiefs as representatives.

The stakeholder engagement process is inclusive of the entire community, including women and elders, and allows sufficient time for the community to be informed about issues and for Bracell to address the needs, aspirations and concerns shared by indigenous peoples during interactions with the company.

In 2025, the meetings with villages were scheduled by the Brazilian indigenous authority, Funai, which attempted to schedule meetings during hours that accommodated indigenous communities’ routine activities, and informed them in advance of the start and end times of meetings, as well as the topics to be discussed. These meetings included the participation of individuals residing in urban areas (representatives of the company, Funai and Consultoria Synergia).

A separate meeting was also held between representatives of Bracell, Funai, indigenous leaders and Consultoria Synergia to present the Work Plan for conducting a study in the Araribá Indigenous Land. Synergia was engaged due to its expertise in the field, and because it was recommended by indigenous leaders.

The study included a social and environmental assessment of the Araribá Indigenous Land, identification of legal and customary rights of the indigenous population, identification and characterization of sites of special significance and containing High Social Conservation Value for indigenous peoples, assessment of the impacts of Bracell’s forestry operations on the indigenous land, and a work plan for Bracell’s activities in the territory. The study did not identify any cases of violation of indigenous peoples’ rights.

GRI 413-1 Operations with local community engagement, impact assessments, and development programs

Bracell implements community engagement initiatives, impact assessments, and development programs across all operations. Our Integrated Management System includes environmental and social impact, risk, and opportunity matrices for both forestry and mill operations.

The results of our environmental and social impact assessments are shared with our stakeholders. Through this practice, we reaffirm our commitment to transparency and corporate accountability.

Local development plans are built around the needs and priorities expressed by local communities, ensuring that initiatives reflect their interests.

Likewise, external stakeholder engagement plans are based on stakeholder mapping to ensure effective communication and alignment with stakeholder expectations.

To encourage active community participation in managing the impacts of our forestry operations, we have established committees and broad consultation processes involving members of local communities, including vulnerable groups. For communities located in the areas of influence of our forestry and mill operations, our Community Relations department engages regularly with local residents, keeping them informed about impacts and the mitigation measures in place.

We have formal procedures in place for documenting and addressing community concerns and complaints. Through ongoing engagement, the Community Relations team broadly disseminates information about our Contact Us hotline (0800 709 1490 in São Paulo, Minas Gerais, Goiás and Paraná and 0800 284 4747 in Bahia and Sergipe) to residents living near our forestry operations. Additional initiatives include awareness campaigns on forest fire prevention and the display of our contact channel on company vehicles operating in the field to receive feedback and complaints specifically related to our fleet operations.

Community relationship building and engagement practices
Committees Community associations are commonplace in the region where we operate in Bahia. Bracell has established committees and other permanent channels to help cultivate good relationships with associations and engage closely with community leaders in each region. We also support public institutions such as the Civil and Military Police, Public Prosecutor’s Office, the Judiciary, and other governmental agencies. For our operations in São Paulo, community engagement takes place through one-on-one conversations with local residents and through meetings with community groups when local leaders are present.
Community surveys We conduct on-site visits to survey the communities neighboring our operations. These surveys identify resident families, community leaders, and the key needs and aspirations of each community. We also assess existing infrastructure, potential impacts from our operations, as well as the presence of traditional communities, indigenous peoples, or Areas of High Social and/or Cultural Heritage Value.
Impact Zoning Map We map our planting, preservation, and enrichment areas to identify Bracell’s activities across the areas where we operate. Communities situated within these zones are categorized according to their level of influence on our operations and projects. We also identify any traditional communities, including quilombola and indigenous settlements. This mapping exercise, conducted by the Planning team, provides a visual overview of the areas covered and the distribution of communities, including quilombola communities in Bahia and indigenous communities in São Paulo.
Stakeholder Mapping and Matrix Community database information is managed through a stakeholder matrix, which collates stakeholder data including host municipality, representative organization, type of institution, contact information, level of influence, stakeholder profile, and key interests. In 2025, Bracell’s stakeholder matrix in Bahia expanded compared to 2024, totaling 2,014 stakeholders. The engagement profile indicates predominantly positive or stable perceptions: 49% are favorable and 46% neutral, while only 5% hold an unfavorable view of the company’s operations.
Community meetings We convene gatherings to keep stakeholders abreast of Bracell’s forestry management operations, including planting, harvesting, haulage, and other operations near communities. During these sessions, we address inquiries, document grievances, and identify communities’ primary needs. We also provide informational materials about the company and available communication channels. Discussions are also held with indigenous communities. In the Northeast, there are no records of indigenous peoples within our forest properties (see GRI 411-1 Incidents of violations involving rights of indigenous peoples).
Operational outreach in São Paulo and Bahia Bracell directly engages with and monitors impacts on neighbors and communities near eucalyptus farms, including indigenous peoples (in São Paulo, learn more in GRI 411-1 Incidents of violations involving rights of indigenous peoples) and quilombola communities (in Bahia, where they are located).

 

In Bahia, Bracell holds meetings to share information about planting, harvesting, transportation, and other activities. During these meetings, we answer questions, document complaints, identify community needs, and map out areas of concern.

 

In São Paulo, impact monitoring and risk management is done in three stages: pre-operation, during operation, and post-operation. The focus is on prevention and, when necessary, implementing mitigation measures to minimize impacts.

 

Production and distribution of informational materials We advertise our “Contact Us” channel in our “operational outreach” kit, which includes informational brochures about the forestry cycle, videos with information about eucalyptus cultivation, forest fire campaign materials, and copies of the company’s Public Forestry Management Brief.

GRI 413-2 Operations with significant actual and potential negative impacts on local communities

In 2025, we carried out engagement and relationship-building activities with communities in 114 municipalities in the state of São Paulo, 16 in Minas Gerais, 2 in Goiás, and 3 in Paraná. In the Northeast, these activities covered 44 municipalities, including 41 in Bahia and 3 in Sergipe, such as Alagoinhas, Aporá, Araçás, Catu, Cardeal da Silva, Dias D’Ávila, Entre Rios, Esplanada, Itanagra, Jandaira, Mata de São João, Ouriçangas, Pojuca, Santo Amaro and São Sebastião do Passé in Bahia, as well as Cristianápolis, Santa Luzia do Itanhy and Indiaroba in Sergipe.

In the Midwest, Southeast, and South, operational impacts identified included noise pollution and odors around our industrial sites and, in forestry operations, excessive dust, road damage or blockages, speeding, chemical drift, and property damage—all of which were mitigated.

However, the number of complaints filed in São Paulo increased from 363 in 2024 to 449 in 2025. This increase was due to the expansion of forestry operations, which led to more complaints related to third-party property damage, dust from truck traffic, and service road damage. Complaints related to speeding decreased. The rise in reported cases was also influenced by our efforts to advertise reporting channels and by the stronger relationships we have built with local communities.

Mill and forestry operations (São Paulo)
Complaints 2023 2024 2025
Damage to third-party property 41 88 240
Airborne dust caused by trucks and machinery 37 101 116
Road maintenance 63 113 0
Road damage 0 28 236
Maintenance of roads, bridges and culverts 0 0 0
Speeding 0 26 30
Fence maintenance 27 6 0
Others 3 1 0
Total 168 362 622
Total mill and forestry 171 363 622
Note 1: The “Other” category includes events related to industrial operations.
Note 2: In 2025, the increase in reports in São Paulo compared to the previous year resulted from the intensification of forestry operations. The main topics involved damage to third-party property, dust generation from truck traffic, damage to roads and access routes, while complaints about speeding decreased. The growth in the number of reports also reflects the improved effectiveness of communication channels and the strengthening of relationships with local communities, which encouraged the use of official channels for handling cases.

 

Mill and forestry operations (Bahia)
Complaints 2023 2024 2025
Damage to third-party property 12 14 9
Roads 14 6 13
Oil leakage 0 0 1
Dust (forestry operations only) 8 2 17
Contractors (complaints from contractors directed to their contracting companies) 14 18 23
Dangerous driving 11 9 7
Noise 2 0 1
Odor 1 1 1
Others 16 11 10
Total mill and forestry 78 61 82

Note 1: the complaints category were updated compared to the 2024 reporting cycle to enhance data transparency (GRI 2-4).
Note 2: the category “odor” was included for Bahia pulp operation and its historical number of complaints. “Oil leakage” was included as a reporting category starting in 2025. There are no previous records of this type of complaint. The complaint refers to an oil leak from machinery operated by a third-party service provider during forestry activities. The incident was identified through the whistleblowing hotline (Contact Us channel) and was promptly mitigated by the contractor, which removed the affected soil and sent it for remediation by a specialized company (GRI 2-4).
Note 3: the category “Other” refers to complaints recorded only once throughout the year, regardless of whether they originated from forestry or industrial operations.
Note 4: In 2025, there was a reduction in the number of complaints related to property damage and traffic recklessness. Conversely, there was an increase in reports of road damage, dust incidence, and contractor-related complaints, driven by the implementation of new forestry projects and the expansion of operations from 42 to 44 municipalities. The rise in complaints is also attributable to the enhanced visibility of the “Contact Us” channel (for submitting complaints and grievances) and the strengthening of engagement initiatives with local communities.

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.