UNGC Principle 7: Businesses should support a precautionary approach to environmental challenges

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GRI 3-3 Management of material topis: Climate Change

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

The Climate Action pillar reflects Bracell’s commitment to mitigating climate change effects and to strengthening the resilience of our operations. The process to build our climate strategy has involved managing GHG emissions, setting 2030 targets for emission reductions and CO2 removals, through our forestry operations, and implementing initiatives around climate adaptation (read more at Climate Action).

Bracell at COP30

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

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

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

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

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

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

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

Climate Governance

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

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

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

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

Climate Commitment – 2030 Targets

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

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

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

For 2025, our interim targets were to close the year with 0.141 tCO2e/adt and 13.9 MtCO2e in removals. Measured results are detailed below:

Target 1: reduce carbon emissions per metric ton of product by 75%, targeting 0.122 tCOe/adt.

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

From 2020 to 2025, we reduced carbon emissions per metric ton of product by 47%, reaching 0,255 tCO₂e/adt.

Although we achieved a 47% reduction in emissions intensity over this period, several factors contributed to not meeting the target set for 2025. The reduction in emissions was negatively impacted mainly by increased mobile combustion in our operations, as well as higher consumption of natural gas and fuel oil in industrial processes.

On the other hand, we recorded significant progress in 2025. The occurrence of fires in our forest areas was substantially reduced, resulting in an 84% decrease in emissions associated with these events.

Additionally, at our Bahia industrial site, one of the pulp production lines was modernized with the implementation of a new cooking line. This technology, which became operational in early October 2025, reduced steam demand in the process, contributing to a 3% reduction in the plant’s total natural gas consumption.

We continue to implement initiatives to mitigate climate-related impacts and advance toward the decarbonization of our operations. Investments in testing electric trucks for pulp transportation, as well as in the generation and use of renewable energy, are examples further detailed in the Energy Efficiency chapter.

Target 2: 25 MtCO₂e removed from the atmosphere between 2020 and 2030

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

From 2020 to 2025, we removed 6 MtCO₂e. This figure reflects the carbon balance of our operations—i.e. the difference between total removals and emissions (including anthropogenic and biogenic LULUCF—Land Use, Land-Use Change, and Forestry—emissions).

The result represents progress compared to the cumulative total recorded up to 2025, reflecting the continued carbon removals associated with our forest operations.

However, climate-related factors contributed to not meeting the target set for 2025. Performance was mainly impacted by adverse weather conditions observed in recent years, characterized by higher temperatures and reduced rainfall, which led to water deficits and directly affected forest productivity. As the growth of eucalyptus forests is directly linked to the capacity to remove CO₂ from the atmosphere, these conditions constrained the expected removal potential over the period.

Bracell has an action plan to mitigate its climate-related impacts and increase the resilience of its operations in the face of climate change. Key initiatives include: monitoring carbon and water fluxes in planted eucalyptus forests; investments in forest research and development (R&D); integrated management of climate-related risks and impacts; and the development of climate zoning studies. Further details can be found in the chapters Monitoring Carbon and Water Fluxes in Planted Eucalyptus Forests and Climate Zoning Study.

Climate Action

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

Self-sufficient generation capacity – we have on-site renewable, clean generation capacity for the full electricity requirement of our two flexible lines in Lençóis Paulista, São Paulo. We also produce a surplus of 150-180 MW which we feed back into the grid, enough to supply power to a city of 3 million people or 750,000 homes.
Solar power plant – our Tissue facility in Lençóis Paulista (SP) operates the largest solar array in the paper sector in Latin America, with 10,836 panels covering approximately 50,000 square meters. The plant has an installed capacity of 7.21 MW, equivalent to about 20% of the facility’s total electricity requirement.
Fossil fuel replacement with renewable energy in the lime kiln – in the two flexible lines at the Lençóis Paulista (SP) site, we produce synthesis gas (Syngas) from eucalyptus biomass in our biomass gasifiers to power the lime kilns.
Replacement of fuel oil with natural gas in the lime kiln – using advanced engineering technologies and solutions, we have launched a project to replace 1B oil (a petroleum-derived fuel oil) with natural gas in the lime kiln of the site’s older production line in Lençóis Paulista (SP).
Electric forklifts and trucks – our operations are deploying electric forklifts running on renewable electricity produced on-site in Lençóis Paulista. We are also piloting the use of electric trucks for shipping between the plant and the road-rail terminal in Pederneiras (SP), fueled by renewable energy produced at our pulp mill.
Research on carbon and water flux in eucalyptus plantations – as part of the Eucflux-IPEF Cooperative Program, we conduct research on carbon and water flux in eucalyptus plantations in Brazil. This research is enhancing our understanding of these processes in a Bracell-managed eucalyptus plantation in Itatinga, São Paulo, where we have set up a flux tower equipped with advanced monitoring technology.
Investment in carbon and water flux towers – in line with our Bracell 2030 commitments, we are installing five additional carbon and water flux towers in both eucalyptus plantations and native forests across São Paulo, Mato Grosso do Sul, and Bahia. In 2025, we began installing a new flux tower in an area of native vegetation at our Lontra Private Natural Heritage Reserve in Bahia. It will add to the existing tower in the state, operating in a planted eucalyptus forest area, and another in operation in São Paulo in a native forest area.
GHG Inventory and GHG Protocol – our GHG inventory—covering Scopes 1, 2, and 3—and our tCO2e removals are externally audited and assured. We publish a complete GHG emissions inventory in the Brazilian GHG Protocol Program’s Public Emissions Registry platform.
Carbon footprint – we conduct product carbon footprint assessments using internationally recognized lifecycle assessment methodologies, including ISO 14044, ISO 14067 and the GHG Protocol Product Standard, supporting our customers in their decarbonization strategies and building competitive advantage through greater climate transparency.
New cooking plant – in 2025, operations began at the new cooking plant in Camaçari, Bahia. The new system has been developed under Renovar, a program to upgrade industrial equipment and processes as part of our overarching commitment to sustainability and innovation. The plant’s throughput has increased by 35%, boosting productivity while delivering power, steam, natural gas, and water savings.

GHG inventory

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

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

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

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

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

Carbon balance

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

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

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

*Result of the balance between biogenic LULUCF emissions and biogenic removals.

Carbon balance (tCO2e) 
Emissions 2023  2024  2025 
Total (S1 + S2 + S3)  1,701,669.00  1,716,315.84  1,888,826.67 
Scope 1  597,454.00  731,362.80   976,020.89 
Scope 2  9,611.00  13,213.63   23,917.20 
Scope 3  1,094,603.00  971,739.41  888,888.57  
Biogenic emissions LULUCF  3,940,391.00  2,227,222.45  11,315,321.66  
Biogenic removals  -1,286,441.00  -4,119,009.65  -14,748,445.83  
Balance 4,355,619.00  -175,471.36   -1,544,297.51 
Note: Bracell 2030 removals target (25 MtCO₂e removed from the atmosphere between 202and 2030) does not include emissions from Tissue Northeast and Tissue Southeast operations. Therefore, for the purpose of calculating the target, emissions from these units (amounting jointly to 103,659.33 tCO₂eare excluded, resulting in an annual balance of –1,647,956.84 tCO₂e.

Monitoring Carbon and Water Flux in Eucalyptus Plantations

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

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

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

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

Eucflux-IPEF Cooperative Program

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

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

Climate Impacts and Risks

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

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

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

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

Climate adaptation

Forestry R&D, risk management and climate change impacts

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

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

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

Classical genetic improvement

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

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

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

Forestry and forest management

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

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

Forestry extension and technology transfer

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

Climate zoning studies

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

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

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

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

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

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

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

Energy Management

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

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

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

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

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

Renewable energy

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

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

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

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

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

Sustainability Attributes at Bracell Papéis

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

Pulp Transportation for Tissue Production

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

Automated Vertical Warehouse and Energy Efficiency

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

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

Solar Power

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

Biomass boiler

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

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: 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 3-3 Management of the material topic: Water and effluent management

Water is vital to human well-being, the conservation of natural ecosystems and biodiversity, and to Bracell’s operations. We are committed to preserving water resources by protecting springs and riparian vegetation in our areas of operation. Looking ahead, we have set a target to reduce water consumption per metric ton of product by 47% by 2030. This commitment underscores the importance we attach to water stewardship in our operations.

Our water stewardship practices are aimed at minimizing water use in pulp manufacturing, preserving water resources and watersheds, improving operational water efficiency, mitigating water availability risks and impacts, and optimizing effluent management practices.

We monitor and control water withdrawal, discharge, and consumption across both our mill and forestry operations. Our Integrated Management System comprises corporate policies, standard operating procedures, and risk, aspect and impact matrixes. These policies and procedures comply with the requirements of ISO 14001, ISO 9001, Forestry Certification Endorsement Program (PEFC) certification requirements, applicable Brazilian legislation, regulatory standards and international sustainability management protocols.

The Environmental and Certification teams in our forestry and mill operations manage our Integrated Management System. These teams report annually to senior management on continuous improvement in environmental performance and certification compliance.

As part of Bracell 2030, our sustainability roadmap, we have set a target for improving water efficiency in our mill processes. By 2030, we aim to achieve a 47% reduction in water intensity per metric ton of pulp produced, reaching 16.6 m³/adt. In 2025, our water intensity stood at 19.9 m³/adt, in line with our 18.5 m³/adt target for the year.

In our forestry operations, eucalyptus planting is informed by a climate zoning study conducted by our Forest R&D team. This study analyzes historical climate data such as precipitation, temperature, and latitude. Based on collected data, land with greater water availability may be recommended (read more about our management approach in Climate Action).

We are actively engaged in reducing the use of chemicals and inorganic fertilizers in our forestry operations, which can contaminate soil and water resources. In line with international conventions, including the Stockholm and Rotterdam Conventions, we are phasing out sulfluramid and exploring safer alternatives for managing leaf-cutting ants. Our teams participate in collaborative research programs and conduct in-house testing to identify safer substitutes.

To further reduce synthetic fertilizer use, Bracell is exploring the application of organomineral fertilizers produced from organic waste generated by our own facilities. A composting plant feasibility study is currently underway. We have also begun producing potassium sulfate at our Lençóis Paulista (SP) mill from an effluent stream in the pulp production process, reducing reliance on imported potassium chloride.

List of chemicals used
Category Active ingredient
Fungicide Azoxystrobin + Difenoconazole
Fungicide Mancozeb + Azoxystrobin
Fungicide Metconazole
Fungicide Pyraclostrobin
Fungicide Tebuconazole + Trifloxystrobin
Herbicide Flumioxazin
Herbicide Fluroxypyr + Triclopyr
Herbicide Glyphosate
Herbicide Haloxyfop
Herbicide Haloxyfop + Clethodim
Herbicide Indaziflam
Herbicide Isoxaflutole
Herbicide Oxyfluorfen
Herbicide Saflufenacil
Herbicide Sulfentrazone
Herbicide Triclopyr
Insecticide Acetamiprid + Bifenthrin
Insecticide Alpha-cypermethrin
Insecticide Bifenthrin
Insecticide Deltamethrin
Insecticide Fipronil
Insecticide Imidacloprid
Insecticide Isocycloseram
Insecticide Sulfluramid
Insecticide Thiamethoxam

Water withdrawal management

At our mill in the Camaçari Industrial Park (Bahia), water is withdrawn from 11 groundwater wells located near the plant within the Recôncavo Norte Watershed. These withdrawals are made under a permit from the Bahia State Environmental Agency (Inema). We also withdraw groundwater at our Bracell Papéis plant in the Northeast, in Feira de Santana (BA), via 14 deep cased wells operating under a permit issued by Inema. The wells are continuously monitored for flow rate, water table levels, and hydro accordance with regulations.

At our Lençóis Paulista (SP) site, water is sourced from six deep cased wells and surface water drawn from the Tietê River, at an intake 22 km from the mill. The site also has a system to collect rainwater. We additionally operate groundwater withdrawal systems at two nurseries in São Paulo: one in Lençóis Paulista and another in Avaí.

Our forestry operations, which supply raw material to both the Camaçari and Lençóis Paulista mills, similarly withdraw both surface and groundwater. Across all operations, our water withdrawal points are distributed as follows: 37 in Bahia, 338 in São Paulo, 44 in Minas Gerais, and 2 in Paraná. All withdrawals are made under permits issued by the respective environmental authorities. Withdrawal points are periodically monitored in accordance with license requirements (learn more under GRI 303-3 Water withdrawal).

In Bahia, we withdraw surface water from six major rivers: Pojuca, Subaúma, Itariri, Inhambupe, Sauípe and Imbassaí. In São Paulo, withdrawals are made from 10 designated Water Resource Management Units (UGRHIs): Aguapeí, Peixe, Upper Paranapanema, Middle Paranapanema, Pontal do Paranapanema, Tietê Batalha, Tietê Jacaré, Tietê Sorocaba, Piracicaba/Capivari/Jundiaí, and Mogi-Guaçu. In Minas Gerais, our water sources include Ribeirão da Onça, Ribeirão Jacurutu and its tributaries, Rio do Peixe, Córrego Sobrado, and Rio Jequitaí. In Paraná, water is withdrawn from Ribeirão Jundiaí. In Goiás, water is withdrawn from a tributary of the Rio Corrente.

We evaluate potential impacts on water resources using an impact matrix that accounts for the scale and intensity of forestry activities. Based on this analysis, we implement preventive and mitigation measures as needed. Regular water quality assessments are conducted to evaluate the effects of our forestry operations. As of 2025, the results indicate no adverse impacts. In São Paulo, water withdrawals are managed through a Power BI dashboard that is updated daily with withdrawn volumes. This information supports monitoring and decision-making to ensure responsible natural resource management.

Risk management in connection with water and effluents

Bracell has a corporate department dedicated to Corporate Risk Management and Business Continuity Management. Risk and business continuity management activities use both a preventive and a reactive approach, often concurrently, and are based on methodologies aligned with internationally recognized standards such as ISO 31000, BSI 31100, COSO ERM, ISO 22301 and NFPA 1600.

The risk management framework adopted in 2023 is formalized under our Risk Management and Business Continuity Policy, which has been signed by Bracell’s President and senior leadership. In addition to the policy, risk management activities are governed by a Corporate Risk Management Process procedure and Business Continuity Risk Management Manual, as well as the Bracell Risk Classification Matrix. All documents are available to employees through the Integrated Management System (SIG). Risk management was implemented at Bracell at the initiative of the President, who serves as the project’s primary sponsor and periodically reviews risk management outcomes.

The Bracell Risk Classification Matrix is the main related policy document. Identified risks are classified based on two parameters: likelihood of occurrence and potential consequence. This matrix defines the criteria that determine each level of likelihood and consequence. 

Given that risks may materialize across multiple dimensions, risk assessments consider impacts related to personal health and safety, the environment, social impact and communities, crews, industrial operations and business, forestry operations and business, legal and compliance matters, financial performance, and reputation.

Regarding water resources, the criteria for determining environmental consequence levels include improper water withdrawals, effluent discharge in non-compliance with applicable legislation, and contamination of water sources.

Water Resources Monitoring Program

Our Water Resource Monitoring Plan tracks withdrawal volumes to ensure compliance with permit requirements and licensing covenants issued by environmental authorities.

Water management in the Camaçari Industrial Park is overseen by an independent firm that monitors both water availability and quality. The district’s Water Resources Management Plan includes risk assessments and action plans for 100% of tenants (read more about effluent management under GRI 303-4 Water discharge).

Bracell protects natural watercourses with vegetated buffer zones. We use official data from the Rural Environmental Register (CAR) to georeference information about the farms we manage. In our geographic information system, we intersect this data with other data sets, such as those compiled in our protected areas and buffer zones. This informs our operational procedures on each property, depending on the constraints and conditions set in management plans (read more in Sustainable Landscapes and Biodiversity).

Consumption management

Our facilities use partially closed-loop water systems that support water recycling throughout the production process, minimizing freshwater withdrawals.

At our new Tissue facility in Lençóis Paulista (SP), water used in manufacturing is extracted directly from the pulp, purified within the process, and then reused. This reduces water intake and enhances overall water efficiency.

At Bracell Papéis Nordeste, in Feira de Santana (BA), wastewater is recovered after treatment and returned to the process, further reducing fresh water consumption. This facility is designed as a fully closed loop, with 100% of process water recycled (read more about the sustainability attributes of our operations under GRI 2-6 About Bracell).

In our nurseries, water is primarily used for seedling irrigation. Excess irrigation water is directed to drainage systems, infiltrating the soil in the eucalyptus stands. In our forestry operations, water serves various purposes, including seedling watering, preparation of chemical treatment mixtures, firefighting, dust suppression and maintenance of service roads, and equipment cleaning.

In Bahia, Bracell collaborates with public agencies and local communities to help ensure water availability. Monitoring is conducted by an independent firm based in the Camaçari industrial park, which identifies potential risks and implements corrective action (see GRI 303-2 Management of water discharge-related impacts for additional information).

To ensure responsible and compliant water consumption, we conduct regular environmental monitoring across our forestry and mill sites in São Paulo and Bahia. This monitoring is performed by laboratories accredited under NBR ISO/IEC 17025 and includes assessments of both groundwater and surface water quality, as well as potability testing for human consumption, ensuring compliance with applicable regulations.

Reducing natural gas and water consumption

In 2025, we completed an upgrade of the cooking system for one of the pulp production lines at our mill in Camaçari, Bahia. The new cooking process requires less steam and, consequently, less water, and also enables the recovery of 100% of the seal water.In addition, improvements implemented at the mill have increased the reuse of wastewater through recirculation. Together, these initiatives resulted in improved water performance starting in the second half of the year, following the mill’s annual planned shutdown.

We also implemented significant improvements in water measurement systems in our Northeast paper operations. More accurate data collection enables more informed operational and investment decisions related to water and effluent management.

Effluent management and discharge

Our pulp production facilities are certified to ISO 14001:2015, which ensures water consumption and discharge points are systematically managed and controlled within an internal environmental management system, including consumption limits and strategies for reuse and reduction.

We are the first company in the pulp industry in São Paulo to implement three-stage effluent treatment.

  • Primary treatment: mechanical removal of fibers and inorganic compounds through solid-liquid separation
  • Secondary treatment: biological treatment of organic matter using activated sludge systems to significantly reduce organic load
  • Tertiary treatment: final polishing of the treated effluent through a chemical flotation system, ensuring it meets appropriate quality standards before it is returned to the Tietê River.

Tertiary effluent treatment supports high-performance removal of organic load—as measured by Biochemical Oxygen Demand (BOD)—at approximately 98% efficiency, far exceeding federal regulatory requirements (Conama Resolution 430/2011). In addition, approximately 92% of water withdrawals are returned to the Tietê River as treated effluent.

Effluent discharge limits are set in accordance with Brazilian environmental laws and standards, including Article 18 of Decree No. 8.468/1976, Article 16 of CONAMA Resolution 430/2011, the state environmental regulator’s (CETESB) Technical Reference Document, Technical Opinion 072/18/IPSE, and international eco-label standards such as Nordic Swan and the EU Ecolabel (see GRI 2-6 About Bracell for further details).

At our mill in the Camaçari Industrial Park (BA), process water is collected post-use and pumped to Bracell’s on-site primary treatment system, which includes a sedimentation step. The organic effluent is then sent to the local utility, which performs secondary biological treatment (activated sludge), ensuring more than 95% removal of organic load. The treated effluent is then discharged into the Atlantic Ocean through a submarine outfall, in compliance with CONAMA Resolution 430/2011 and the guidelines of the Bahia state environmental authority (INEMA).

We consistently maintain quality standards that surpass national regulatory requirements, with especially rigorous monitoring of parameters like BOD and Chemical Oxygen Demand (COD).

At our operations in São Paulo, BOD levels are approximately 98% above the threshold required by federal regulations (Conama Resolution No. 430/2011), reflecting the efficiency of our exclusive tertiary treatment system.

In our Bahia operations, regular COD monitoring ensures the primary treatment system is performing optimally. The secondary treatment stage effectively reduces organic load, though due to mixing with effluents from other industrial operators within the complex, it is not possible to measure Bracell’s isolated contribution to the final effluent discharged offshore.

In November 2025, we implemented a new washing system at our Bahia pulp mill. This upgrade is expected to positively impact effluent COD levels, with results anticipated from 2026 onward.

River Basin Committees

We are active members of watershed committees in the regions where we operate, where we discuss ways to use water resources more sustainably. We are members of the following committees and programs:

  • Recôncavo Norte and Inhambupe Watershed Committee (CBH RNI), in Alagoinhas, Bahia;
  • Paranapanema Watershed Committee (CGBH-RL), in Lençóis (BA);
  • Watershed Monitoring and Modeling Program (Promab), led by the Institute of Forestry Research and Studies (IPEF), in the states of São Paulo (Piracicaba) and Bahia (Eunápolis), with 30 years of monitoring experience.

We also implement initiatives in partnership with stakeholders, especially local communities and suppliers, to preserve and restore headwater areas and improve water resource efficiency.

GRI 102-1 Climate Transition and Adaptation Plan

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

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

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

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

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

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

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

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

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

Bracell 2030 includes two commitments related to the material topic of Climate Change. Our targets were developed based on an assessment of risks and impacts—both positive and negative—of Bracell’s operations in the context of climate change. Our operations both emit greenhouse gases (GHG) and capture CO₂ from the atmosphere through the growth of planted eucalyptus forests and the conservation of native vegetation areas under the Company’s management.

By 2030, we have committed to reducing our carbon emissions per tonne of product manufactured by 75%, using 2020 as the base year for comparison. This corresponds to reaching 0.122 tCO₂e/adt. Additionally, we aim to remove 25 MtCO₂e from the atmosphere over a ten-year period—from 2020 to 2030 (GRI 3-3).

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

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

GRI 102-2 Climate change adaptation plan

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

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

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

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

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

Bracell 2030 includes two commitments related to the material topic of Climate Change. Our targets were developed based on an assessment of risks and impacts—both positive and negative—of Bracell’s operations in the context of climate change. Our operations both emit greenhouse gases (GHG) and capture CO₂ from the atmosphere through the growth of planted eucalyptus forests and the conservation of native vegetation areas under the Company’s management.

By 2030, we have committed to reducing our carbon emissions per tonne of product by 75%, using 2020 as the base year for comparison. This corresponds to reaching 0.122 tCO₂e/adt. Additionally, we aim to remove 25 MtCO₂e from the atmosphere over a ten-year period—from 2020 to 2030 (GRI 3-3).

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

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

Bracell systematically identifies and classifies risks and opportunities related to climate change. In this process, we categorize them as physical and regulatory and highlight their financial implications for the Company’s business. We also seek to detail the methods applied for managing each of them.

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

GRI 102-5 Scope 1 GHG Emissions

Direct greenhouse gas (GHG) emissions (Scope 1)
2025 Bahia Pulp São Paulo Pulp Southeast Paper Northeast Paper Mato Grosso do Sul Forestry Total
Mobile combustion 10,213.96 237,527.19 588.36 84,643.02 35,641.96 368,614.50
Stationary combustion 182,456.76 181,392.54 4.30 1,099.23 61.78 365,014.61
Waste and wastewater generated 0.00 13,838.01 0.00 0.00 0.00 13,838.01
Fugitive emissions 5,474.48 2,072.37 0.00 118.82 289.86 7,955.53
Agricultural activities 15,534.84 65,679.52 0.00 0.00 94,389.03 175,603.38
Industrial processes 8,124.34 30,634.80 0.00 0.00 0.00 38,759.14

Land-use change

1,855.87 4,379.40 0.00 0.00 0.45 6,235.71
Bracell 223,660.25 535,523.83 592.66 85,861.07 130,383.07 976,020.89

 

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

Direct greenhouse gas emissions by gas – Scope 1 (t gas)
2025 Bahia Pulp São Paulo Pulp Southeast Paper Northeast Paper Mato Grosso do Sul Forestry Total
CO₂ 200,792.00 417,465.09 580.83 84,260.16 74,547.22 777,645.30
CH₄ 96.51 844.91 0.22 23.94 3.43 969.01
N₂O 56.46 349.40 0.02 3.51 209.77 619.16
HFCs 3.58 0.95 0.00 0.00 0.08 4.61
PFCs 0.00 0.00 0.00 0.00 0.00 0.00
SF₆ 0.00 0.00 0.00 0.00 0.00 0.00
NF₃ 0.00 0.00 0.00 0.00 0.00 0.00
Bracell 200,948.56 418,660.35 581.07 84,287.61 74,760.50 779,238.08
Scope 1 biogenic emissions (t CO equivalent)
2025 Bahia Pulp São Paulo Pulp Southeast Paper Northeast Paper Mato Grosso do Sul Forestry Total
Scope 1 223,660.25 535,523.83 592.66 85,861.07 130,383.07 976,020.89
Scope 1 – Biogenic 1,940,273.87 16,084,659.90 29.69 71,034.18 572.11 18,096,569.75

Learn more under GRI 305-1.

GRI 102-6 Scope 2 GHG Emissions

Location-based gross GHG emissions

Scope 2 greenhouse gas emissions (t CO2 equivalent)
2025 Bahia Pulp São Paulo Pulp Southeast Paper Northeast Paper Mato Grosso do Sul Forestry Total
Scope 2 6,513.74 4,349.20 10,325.79 2,705.20 23.27 23,917.20
Bracell 6,513.74 4,349.20 10,325.79 2,705.20 23.27 23,917.20

 

Location-based emissions

Scope 2 greenhouse gas emissions by gas (t CO2 equivalent)
2025 Bahia Pulp São Paulo Pulp Southeast Paper Northeast Paper Mato Grosso do Sul Forestry Total
CO₂ 6,513.74 4,349.20 10,325.79 2,705.20 23.27 23,917.20
CH₄ 0.00 0.00 0.00 0.00 0.00 0.00
N₂O 0.00 0.00 0.00 0.00 0.00 0.00
Bracell 6,513.74 4,349.20 10,325.79 2,705.20 23.27 23,917.20

 

Location-based gross GHG emissions

Scope 2 biogenic emissions (metric tonnes)
2025 Bahia Pulp São Paulo Pulp Southeast Paper Northeast Paper Mato Grosso do Sul Forestry Total
Scope 2 – Biogenic 0.00 0.00 0.00 0.00 0.00 0.00

 

Learn more under GRI 305-2.

GRI 102-7 Scope 3 GHG Emissions

In 2025, Scope 3 accounted for 47.06% of our total emissions.

Scope 3 greenhouse gas emissions by category (t CO2 equivalent)
Scope 3 categories Bahia Pulp São Paulo Pulp Southeast Paper Northeast Paper Mato Grosso do Sul Forestry Total
Bens e serviços comprados 25,051.97 378.25 0.00 0.00 4.52 25,434.74
T&D Upstream 3,676.22 24,159.94 0.00 0.00 2,981.42 30,817.58
Resíduos sólidos da operação 84.80 30,455.47 0.00 798.04 3.89 31,342.19
Viagens a negócio 8.77 430.57 0.00 0.00 50.33 489.68
Deslocamento de funcionários 3,091.03 8,737.57 0.00 195.99 562.47 12,587.06
T&D Downstream 132,736.12 652,300.61 3,180.58 0.00 0.00 788,217.31
Bracell 164,648.92 716,462.41 3,180.58 994.03 3,602.63 888,888.57

 

Direct greenhouse gas emissions by gas – Scope 3 (tCO₂e)
2025 Bahia Pulp São Paulo Pulp Southeast Paper  Northeast Paper  Mato Grosso do Sul Forestry  Total
CO₂ 162,429.47 677,332.25 3,128.84 990.84 3,544.54 847,425.94
CH₄ 199.40 18,100.07 6.54 0.40 7.30 18,313.71
N₂O 2,020.05 21,030.10 45.19 2.79 50.79 23,148.92
Bracell 164,648.92 716,462.41 3,180.58 994.03 3,602.63 888,888.57

 

Emissões diretas de gases de efeito estufa por gás Escopo 3 (t gás)
2025 Bahia Pulp São Paulo Pulp Southeast Paper  Northeast Paper  Mato Grosso do Sul Forestry  Total
CO₂ 162,429.47 677,332.25 3,128.84 990.84 3,544.54 847,425.94
CH₄ 7.12 646.43 0.23 0.01 0.26 654.06
N₂O 7.62 79.36 0.17 0.01 0.19 87.35
Scope 3 biogenic emissions (t CO2 equivalent)
Scope 3 categories Bahia Pulp São Paulo Pulp Southeast Paper Northeast Paper Mato Grosso do Sul Forestry Total
1. Purchased goods and services 3,698.04 63.49 0.00 0.00 0.76 4,032.29
4. Upstream transportation and distribution 575.78 20,086.85 0.00 0.00 4,264.24 24,926.87
5. Waste generated in operations 0.00 0.00 0.00 0.00 0.00 0.00
6. Business travel 0.00 0.00 0.00 0.00 0.00 0.00
7. Employee commuting 4.38 707.96 0.00 155.17 0.00 867.51
9. Downstream transportation and distribution 0.00 512.63 0.00 0.00 0.00 512.63
Bracell 4,548.20 21,370.92 0.00 155.17 4,265.00 30,339.29

GRI 102-8 GHG emissions intensity

In 2025, Bracell increased its Scope 1 and 2 GHG emissions intensity by approximately 23% compared to 2024. This increase was mainly driven by higher consumption of fossil fuels in forest logistics and industrial operations.

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

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

For more information, see GRI 305-4.

GRI 102-9 GHG removals in the value chain

In 2025, Bracell recorded 1,888,827 tCO₂e of fossil greenhouse gas emissions across Scopes 1, 2, and 3. In the same period, planted forests and native vegetation areas under the Company’s management removed 14,748,446 tCO₂e through carbon sequestration, while 11,315,322 tCO₂e of biogenic LULUCF emissions were recorded, resulting in total removals of 3,433,124 tCO₂e. As a result, the net balance between emissions and removals totaled -1,544,310 tCO₂e, reflecting a net carbon removal.

Carbon balance (tCO2e)
Emissões  2023  2024  2025 
Total (E1 + E2 + E3)  1,701,669.00 1,716,315.84 1,888,826.67
Escopo 1  597,454.00 731,362.80 976,020.89
Escopo 2  9,611.00 13,213.63 23,917.20
Escopo 3  1,094,603.00 971,739.41 888,888.57
Emissões biogênicas LULUCF  3,940,391.00 2,227,222.45 11,315,321.66
Remoções biogênicas  -1,286,441.00 -4,119,009.65 14,748,445.83
Saldo  4,355,619.00 -175,471.36 -1,544,297.51

Note: Bracell 2030 removals target (25 MtCO₂e removed from the atmosphere between 202and 2030) does not include emissions from Tissue Northeast and Tissue Southeast operations. Therefore, for the purpose of calculating the target, emissions from these units (amounting jointly to 103,659.33 tCO₂eare excluded, resulting in an annual balance of –1,647,956.84 tCO₂e.

GRI 201-2 Financial implications and other risks and opportunities due to climate change

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

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

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

Risk management process

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

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

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

Methods Used to Manage Climate Change Risks or Opportunities

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

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

Energy self-sufficiency – We generate our own renewable electricity at Lençóis Paulista (São Paulo State), with 150 to 180 MW of surplus power supplied to Brazil’s national grid.
Solar energy – A 7.21 MW solar array (10,836 panels) at our Tissue plant supplies approximately 20% of the site’s electricity requirement.
Fuel transition – Replacing fossil fuels with renewable alternatives, including the use of eucalyptus biomass-derived syngas and the replacement of fuel oil with natural gas in lime kilns.
Replacement of fuel oil with natural gas in the lime kiln – using advanced engineering technologies and solutions, we have launched a project to replace 1B oil (a petroleum-derived fuel oil) with natural gas in the lime kiln of the site’s older production line in Lençóis Paulista (SP).
Electrification of material handling and logistics – Electric forklifts and trucks powered by our own renewable energy are now in operation. In 2025, this initiative avoided 16 tCO₂e in emissions.
Carbon and water flux research – Bracell is participating in the Eucflux-IPEF program, and has installed flux towers in eucalyptus plantations and native vegetation areas to monitor carbon and water dynamics.
GHG Inventory and GHG Protocol – Scope 1, 2 and 3 emissions are audited and publicly reported via the Brazilian GHG Protocol Program.

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 302-1 Energy consumption within the organization

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

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

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

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

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

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

Reduction of natural gas consumption

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

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

 

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

Starting in 2025, Bracell began using data from its corporate GHG emissions inventory as the primary reference for energy consumption reporting. The document considers energy use across all processes in the value chain, whereas the previous approach focused mainly on industrial production processes. Due to this methodological change and expanded scope, 2025 data are not directly comparable to previous periods. This update aims to provide a more accurate and comprehensive analysis of Bracell’s energy performance.

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

 

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

 

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

Note: The volume of energy sold in 2025 was lower compared to 2024 due to increased internal consumption within the organization. This was driven by the start of operations at the Paper unit in Lençóis Paulista (SP), which began in the second half of 2024 and reached full operation from 2025 onwards. At the Bahia pulp mill, internal energy consumption also increased, reducing the volume available for sale.

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

 

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

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

Note: To avoid double counting, the values reported as “energy consumed” were not included in the “total energy consumption within the organization,” as they correspond to energy generated and consumed internally by Bracell from black liquor and biomass. Since these sources are already accounted for under the category “renewable fuel sources,” their additional inclusion would result in duplication. Additionally, the energy purchased by the Papéis Sudeste unit was excluded, as this energy is supplied by the São Paulo Pulp unit, generated from black liquor and biomass, and already accounted for under “renewable fuel sources.”

GRI 302-2 Energy consumption outside of the organization

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

Energy consumption outside the organization (GJ)
Operating site 2025
Bahia Pulp 1,858,319.69
São Paulo Pulp 8,622,321.30
Southeast Paper 42,667.84
Northeast Paper 3,042.84
Bracell 10,526,351.67

GRI 302-3 Energy intensity

Energy intensity (GJ/adt)1
Operating site 2023 2024 2025
Bahia Pulp 3.27 3.19 3.34
São Paulo Pulp 2.07 2.12 1.91
Southeast Paper 2.94
Northeast Paper 1.75
Total 5.34 5.31 9.95

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

GRI 303-1 Interactions with water as a shared resource

Bracell operates mills in the Camaçari Industrial Park, Bahia, in the Lençóis Paulista Industrial Park, São Paulo, and in Feira de Santana, Bahia. We also have forestry operations—spanning from planting through harvesting—in the states of São Paulo, Bahia, and Sergipe. We monitor freshwater withdrawal volumes, risks, and impacts on water resources in full compliance with our environmental licenses, applicable laws, and certification standards within Bracell’s Integrated Management System.

At the São Gonçalo dos Campos (BA) and Pombos (PE) sites, there are no water withdrawals as these facilities use dry processing.

We use a structured management approach covering all stages—withdrawal, consumption, and discharge—to ensure both environmental compliance and water efficiency.

Water withdrawal sources:

  • Licensed surface and groundwater sources
  • Treated wastewater
  • Utility

Water uses:

  • Drinking water
  • Toilet flushing
  • Industrial cooling
  • Laboratories and research
  • Cleaning and maintenance of facilities and equipment
  • Fire suppression systems
  • Cafeterias and kitchens
  • Product processing water (as an ingredient or as part of the production of a product)
  • Grounds irrigation and watering
  • Forestry
  • Equipment sealing
  • Road dust suppression

Water disposal methods:

  • Tietê River (in São Paulo) 
  • Reuse
  • Wastewater treatment plants
  • Other methods:
    • Forestry area in Bahia: bases in Alagoinhas, Inhambupe, and Entre Rios use septic tanks; the Alagoinhas base also includes an oil-water separator and conducts lab testing of effluents. Waste is collected and treated by licensed providers.
    • Forestry operations in São Paulo: supported by septic systems, with wastewater from the forestry division office directed to the municipal sewage system
    • Bahia mill: post-process water is collected and treated internally, then sent to the local utility for secondary treatment prior to discharge via ocean outfall.

Environmental impact identification:

Potential water-related impacts include:

  • High water consumption
  • Water pollution
  • Soil erosion and sedimentation
  • Greenhouse gas emissions

Approaches to identifying impacts:

  • Environmental impact assessments
  • Compliance assessments 
  • Water risk assessments

Scope of impact assessments:

  • Water consumption in operations
  • Effluent discharge
  • Water quality and flow monitoring
  • Compliance
  • Efficiency and innovation to reduce consumption

Timing of impact assessments:

  • Medium-term sustainability programs
  • Continuous monitoring
  • Baseline assessments to identify risks and impacts

Assessment tools and methodologies:

  • Industry benchmarking
  • Environmental performance indicators
  • Systems: Softexpert, SOGI and Survey123
  • Identification and assessment of environmental aspects and impacts
  • LAIA spreadsheet for documentation and control
  • Laboratory testing

Impact management:

We implement measures to mitigate impacts and manage water as a shared resource:

  • Water intensity reduction: maintenance and consumption monitoring.
  • Erosion and siltation: road construction and maintenance according to each business unit’s procedures.
  • Water availability: forestry planning to minimize water consumption in Bahia; water consumption reduction targets in nurseries.

Water-related goals and targets

  • Aligned with public policy frameworks and UN SDG 6
  • Reflect public policies and the local context
  • Supported by stakeholder engagement, including civil society, trade associations etc.
  • Based on sustainable limits and basin-level planning
  • Established annually and validated by Bracell’s internal environmental assurance committee.

Suppliers assessed on social and environmental aspects are those operating directly on Bracell’s premises. Bracell is beginning to assess sustainability management practices with its suppliers. Read more in GRI 308 and 414.

(Read more about our water and effluent management practices under GRI 3-3 Management of the material topic: Water and effluents)

GRI 303-2 Management of water discharge related impacts

Our pulp production facilities are certified to ISO 14001:2015, which ensures water consumption and discharge points are systematically managed and controlled within an internal environmental management system, including consumption limits and strategies for reuse and reduction. Effluents are monitored for compliance with the discharge standards issued by the Brazilian Environmental Council (Conama 430/2011), State Decree no. 8,468/1976 and other environmental regulators.

In our water and effluent management practices, Bracell actively monitors potential environmental risks, including the contamination of surface water bodies and surrounding ecosystems due to effluent discharge. We also track actual risks, such as water stress in already vulnerable regions, which could negatively impact aquatic ecosystems and water supply for local communities. These risks are classified as having a broad geographic scope and high intensity. Bracell has internal controls in place to prevent and mitigate such risks.

None of our operations are located in areas where water discharge is legally exempt from regulation.

Effluent management in the production of kraft and dissolving pulp

To ensure compliance with certification requirements, in our São Paulo operations we have classified recipient water bodies to ensure water discharges are within specifications under our discharge permits from the Department of Water and Electrical Energy (DAEE).

We are the first company in the pulp industry in São Paulo to implement three-stage effluent treatment.

  • Primary treatment: mechanical removal of fibers and inorganic compounds through solid-liquid separation
  • Secondary treatment: biological treatment of organic matter using activated sludge systems to significantly reduce organic load
  • Tertiary treatment: an advanced filtration or “polishing” stage to ensure effluent quality prior to discharge into the Tietê River

Tertiary effluent treatment supports high-performance removal of organic load—as measured by Biochemical Oxygen Demand (BOD)—at approximately 98% efficiency, far exceeding federal regulatory requirements (Conama Resolution 430/2011). In addition, approximately 92% of water withdrawals are returned to the Tietê River as treated effluent.

Effluent discharge limits are set in accordance with Brazilian environmental laws and standards, including Article 18 of Decree No. 8.468/1976, Article 16 of CONAMA Resolution 430/2011, the state environmental regulator’s (CETESB) Technical Reference Document, Technical Opinion 072/18/IPSE, and international eco-label standards such as Nordic Swan and the EU Ecolabel (see GRI 2-6 About Bracell for further details).

At our mill in the Camaçari Industrial Park (BA), process water is collected post-use and pumped to Bracell’s on-site primary treatment system, which includes a sedimentation step. The organic effluent is then sent to the local utility, which performs secondary biological treatment (activated sludge), ensuring more than 95% removal of organic load. The treated effluent is then discharged into the ocean via a dedicated outfall pipeline, in compliance with Inema Ordinance No. 16.507/2018 and No. 18.841/19, Conama Resolution No. 430/2011, and other regulations issued by the relevant environmental agencies.

Effluent Management in Tissue Production (Lençóis Paulista site)

At our tissue production facility in Lençóis Paulista (São Paulo), all wastewater from paper and pulp operations is treated through a single, centralized Effluent Treatment Plant (ETP). Effluent from the Bracell Papéis industrial process, along with discharges from the site’s two pulp production lines, is directed to this centralized treatment system.

Effluent management in soluble and specialty pulp production (Camaçari)

To ensure robust effluent management at our mill in Camaçari (BA), we regularly monitor physical, chemical and biological parameters, including chemical oxygen demand (COD), a key indicator of the effluent’s organic load and the operational efficiency of the process.

This indicator is used to evaluate the performance of our wastewater treatment system, which comprises an on-site treatment plant at our Camaçari mill (BA) (settling or primary treatment) and another treatment plant operated by Cetrel, a company co-located in the Camaçari Industrial Park that is responsible for secondary treatment (activated sludge) of Bracell’s effluents.

Continuous COD monitoring ensures the primary treatment system is performing optimally. The secondary treatment stage effectively reduces organic load, though due to mixing with effluents from other industrial operators within the complex, it is not possible to measure Bracell’s isolated contribution to the final effluent discharged offshore.

Continuous monitoring of our industrial wastewater ensures our dissolving pulp production process is eco-efficient. We also use indirect methods to measure the quality of our chemical recovery system, loss of fibers from the mill process, and solid retention efficiency in the on-site primary treatment system. Cetrel ensures that the water returned to the environment meets or exceeds the quality of the water originally withdrawn from natural sources.

In our forestry operations in Bahia, no effluents are discharged into water bodies.

Our wastewater treatment system processes two primary wastewater streams:

  • Organic effluents: wastewater from the mill and stormwater system containing varying amounts of byproducts from the production process. This accounts for the bulk of the effluents generated at the mill. Organic effluents are pumped to the on-site primary treatment system and then to the Cetrel-operated secondary treatment system;
  • Inorganic effluents (SI): also referred to as non-contaminated wastewater, this stream is generated by the site’s stormwater system and other non-contaminated sources, such as flush water from cooling towers and heat exchangers.

Both streams are monitored in accordance with Inema Ordinances 16.507/2018 and 18.841/19. The specifications for water discharges depend on the recipient water body as outlined in the relevant federal regulations (Conama Resolution 430/2011) and requirements issued by the state environmental authority, Inema.

Effluents are collected and pumped to a wastewater treatment system comprising a preliminary treatment stage (screening and pH adjustment) and primary treatment (conventional settling and sludge removal). This process mechanically removes settable solids—essentially cellulose fibers extracted in the form of primary sludge. Following on-site treatment, the organic effluent is pumped to the Cetrel plant. Following secondary treatment, the treated effluent is discharged into the ocean via a submarine outfall.

Effluents from seedling nurseries are monitored in order to avoid alterations in soil quality. Wastewater from the washing station at our workshop in Alagoinhas (BA) is monitored to avoid alterations in effluent quality.

Effluent Management in paper production (Pombos-PE, Feira de Santana-BA, and São Gonçalo dos Campos-BA)

The effluent management systems at our Feira de Santana (BA), São Gonçalo dos Campos (BA), and Pombos (PE) mills have been designed to ensure maximum environmental efficiency and full compliance with current legislation. Each site has a different operational profile, requiring slight-specific solutions for managing the wastewater produced.

At the Feira de Santana (BA) site, where jumbo rolls are produced, the industrial process was developed as a closed-loop system, with no discharge of industrial effluents into the environment. Effluent is treated in an on-site Wastewater Treatment Plant that removes impurities to enable water reuse, reduce environmental impact, and optimize water resource efficiency.

  • Preliminary treatment: the water passes through an aerated pond, which stabilizes temperature, pH, and flow rate while ensuring adequate oxygenation before the effluent enters the main treatment system.
  • Primary treatment: in the primary clarifier, heavier solids settle out, and the resulting primary sludge is sent for thickening and centrifugation.
  • Secondary treatment: the effluent flows to the equalization stage, which maintains flow and oxygen levels. It then moves to aeration, where aerobic bacteria break down dissolved organic matter. Next, the secondary clarifier separates the activated sludge. A portion of the sludge is returned to the aeration stage, while excess sludge is removed. The extracted sludge undergoes thickening and centrifugation. The dewatered solid fraction is sent to a licensed sanitary landfill, and the separated water is returned to the process. The clarified water flows into a cistern, where it is directed to final filtration units that remove fine particulate matter. The filtered water is then stored in a reuse tank and pumped back to the paper machines. This closed-loop system ensures high-efficiency removal of contaminants while maximizing water reuse within the industrial process.

The São Gonçalo dos Campos (BA) and Pombos (PE) sites produce disposable diapers and convert jumbo rolls into end products. These facilities use dry-process technology, a process that does not require water and therefore does not produce industrial effluents. As a result, only sanitary effluents (from restrooms) are generated, and these are collected in dedicated systems and periodically removed by tanker trucks. These trucks transport the material to licensed wastewater treatment plants: in São Gonçalo, to the Feira de Santana (BA) treatment plant, and in Pombos, to the Recife (PE) treatment plant.

GRI 103-1 Energy policies and commitments

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

 

GRI 303-3 Water withdrawal

Bracell carries out regular climate zoning studies. We use historical precipitation and temperature data to calculate evapotranspiration and soil water deficit. This helps to identify areas suitable for eucalyptus cultivation. Based on this information, technical recommendations are developed for each region, including clone allocation and fertilization.

In our São Paulo pulp operations, surface freshwater withdrawals are measured directly at licensed intake points designated for forestry operations. Additionally, groundwater withdrawn from a well at the Lençóis Paulista mill is used for seedling production in the nursery. Withdrawal volumes are recorded in an internal database that is managed in accordance with applicable regulations, covering all operational fronts. Bracell holds permits for both surface water withdrawals from the Tietê River and groundwater withdrawals from licensed wells. Bracell Papéis São Paulo does not conduct direct environmental withdrawals and instead receives water from Bracell Celulose São Paulo (refer to GRI 3-3: Management of the material topic: Water and effluents for details).

In Bahia, groundwater withdrawal is measured using telemetry-enabled water meters. Surface water withdrawals are tracked through control logs, maintained in either printed or digital (survey-based) formats. In accordance with internal procedures, all surface and groundwater withdrawal data is submitted to the environmental team, which consolidates, analyzes, and reports this information to the relevant operations managers. Bracell’s Bahia operations follow Ordinance No. 25.954/2022, which authorizes groundwater use in the Recôncavo Norte Watershed, and Inema Ordinance No. 22.181/2021, which establishes a framework for monitoring and control of water resource use in the state of Bahia.

Our Bahia forestry operations maintain a robust environmental water monitoring network, including 24 stations for monitoring surface (river) water quality, 9 stations for monitoring groundwater quality (artesian wells), 13 fixed stations for analyzing water potability (fitness for human consumption), 5 mobile stations for analyzing water potability (fitness for human consumption) at operations fronts, 37 flow metering stations at permitted surface water withdrawal points along rivers, 2 stations at locations where effluents are discharged in the ground from seedling nurseries, and 1 station where effluents are discharged into the ground from a water and oil separator.

At the headquarters of three farms in Bahia, water is also withdrawn through artesian wells. In these cases, the water is used for human consumption.  In our forestry operations in Bahia the total volume from the 49 authorized withdrawal points (both surface and groundwater) is recorded in an internal database, which is managed in compliance with applicable legislation and covers all Bracell operational fronts.

In 2025, surface water withdrawal in Bahia’s forestry operations decreased by 28% compared to the previous cycle. In our São Paulo operations, forestry withdrawals increased by 29%, while mill withdrawals increased by 3.54%.

Groundwater withdrawal decreased by 19% in Bahia’s forestry operations, while São Paulo saw a 61% increase due to the inclusion of water consumption for seedling production at the Avaí (SP) nursery. Our São Paulo mill reported a 19.71% increase, with total consumption remaining below the limit established in the current water permit. In Bahia, mill withdrawals decreased by 5.3%.

In our Paper operations, water withdrawal increased by 8% in the Southeast and decreased by 17% in the Northeast.

Bracell does not withdraw water in water-stressed areas.

Surface water withdrawals (m3)
Operation 2020 2021 2022 2023 2024 2025
Forestry Mill Total Forestry Mill Total Forestry Mill Total Forestry Mill Total Forestry Mill Total Forestry Mill Total
Bahia Pulp 2,198 0 2,198 29,456 0 29,456 4,811 0 4,811 64,927 0 64,927 25,351 0 25,351 18,181 0 18,181
São Paulo Pulp 309,165 0 309,165 328,484 12,947,445 13,275,929 314,537 49,223,892 49,538,429 457,789 52,016,479 52,474,269 550,327 49,972,528 50,522,855 666,463 52,248,000 52,914,462
Southeast Paper N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A 1,144,604 1,144,604 0 1,231,503 1,231,503
Northeast Paper N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A 0 0 0 19,445 19,445
Bracell 311,363 0 311,363 357,940 12,947,445 13,305,385 319,348 49,223,892 49,543,240 522,716 52,016,479 52,539,196 575,678 51,117,132 51,692,810 684,643 53,498,947 54,183,591
Surface water withdrawals (ML)  
  Operation 2020   2021   2022   2023   2024   2025  
Forestry Mill Total Forestry Mill Total Forestry Mill Total Forestry Mill Total Forestry Mill Total Forestry Mill Total
Bahia Pulp 2  0  2  29  0  29  5  0  5  65  0  65  25  0  25  18  0  18 
São Paulo Pulp 309  0  309  328  12,947  13,276  315  49,224  49,538  458  52,016  52.474  550  49,973  50,523  667  52,248  52,915 
Southeast Paper N/A   N/A   N/A   N/A  N/A   N/A   N/A   N/A   N/A   N/A  N/A  N/A  N/A  1.145  1.145  N/A  1.232  1.232 
Northeast Paper N/A   N/A   N/A   N/A  N/A   N/A   N/A   N/A   N/A   N/A  N/A  N/A  N/A  0  0  N/A  19  19 
Bracell 311  0  311  358  12,947  13,305  319  49,224  49,543  523  52,016  52,539  576  51,117  51,693  685  53,498  54,183 
Note: the data presented refers to water volumes expressed in megaliters (ML), in accordance to reporting guidelines for GRI 303-3. Bracell also discloses water data in cubic meters (m3) due to the calculation for Bracell 2030 target. 
Groundwater withdrawals (m3)
Operation 2020 2021 2022 2023 2024 2025
Forestry Mill Total Forestry Mill Total Forestry Mill Total Forestry Mill Total Forestry Mill Total Forestry Mill Total
Bahia Pulp 889,754 14,720,841 15,610,595 872,245 14,559,672 15,431,917 851,887 15,145,471 15,997,358 874,462 15,738,831 16,613,293 827,071 15,681,068 16,508,139        656,246.40 14,845,602 15,501,848
São Paulo Pulp 282,428 6,831,882 7,114,310 395,258 7,071,663 7,466,921 405,286 6,520,494 6,925,780 556,641 4,342,162 4,898,803 486,285 4,231,181 4,717,466 801,777 5029,262 5,831,038.94
Southeast Paper N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A 0 0 0,00 0,00 0,00
Northeast Paper N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A 214,184 214,184 0,00 157,886.00 157,886.00
Bracell 889,754 14,720,841 22,724,905 1,267,503 21,631,336 22,898,838 1,257,173 21,665,965 22,923,138 1,431,103 20,080,993 21,512,096 1,313,356 20,126,433 21,439,789 1,458,024 20,032,750 21,490,773

 

Groundwater withdrawals (ML)  
Operation   2020   2021   2022   2023   2024   2025  
Forestry Mill Total Forestry Mill Total Forestry Mill Total Forestry Mill Total Forestry Mill Total Forestry Mill Total
Bahia Pulp 890  14,721  15,611  872  14,560  15,432  852  15,145  15,997  874  15,739  16,613  827  15,681  16,508  656  14,846  15,502 
São Paulo Pulp 282  6,832  7,114  395  7,072  7,467  405  6,520  6,926  557  4,342  4,899  486  4,231  4,717  802  5,029  5,831 
Southeast Paper N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A   N/A   N/A   N/A  0  0  N/A   0  0 
Northeast Paper N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A   N/A   N/A   N/A  214,184  214,184  N/A   157,856  157,856 
Bracell 1,172  21,553  22,725  1,268  21,631  22,899  1,257  21,666  22,923  1,431  20,081  21,512  1,313  20,126  21,440  1,458  20,033  21,491 

Note: the data presented refers to water volumes expressed in megaliters (ML), in accordance to reporting guidelines for GRI 303-3. Bracell also discloses water data in cubic meters (m3) due to the calculation for Bracell 2030 target. 

Total water withdrawal (m3)
Operation 2020 2021 2022 2023 2024 2025
Forestry Mill Total Forestry Mill Total Forestry Mill Total Forestry Mill Total Forestry Mill Total Forestry Mill Total
Bahia Pulp 891,952 14,720,841 15,612,793 901,701 14,559,672 15,461,373 856,698 15,145,471 16,002,169 939,389 15,738,831 16,678,220 852,422 15,681,068 16,533,490 674,427 14,845.602 15,520,029
São Paulo Pulp 591,593 6,831,882 7,423,475 723,742 20,019,108 20,742,850 719,823 55,744,386 56,464,209 1,014,430 56,358,642 57,373,072 1,036,612 54,203,709 55,240,321 1,468,240.01 57,277,261 58,745,501
Southeast Paper N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A 1,144,604 1,144,604 0 1,231,503 1,231,503
Northeast Paper N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A 214,184 214,184 0 177,331 177,331
Bracell 1,483,545 21,552,723 23,036,268 1,625,443 34,578,781 36,204,224 1,576,521 70,889,856 72,466,377 1,953,819 72,097,472 74,051,291 1,889,034 71,243,565 73,132,599 2,142,667 73,531,697 75,674,364

Note 1: Bracell Papéis was established in 2023 and is reporting its environmental performance for the first time, with data from 2024. Bracell Papéis Southeast does not operate any direct water withdrawal points (surface or groundwater); instead, it uses water sourced through the Bracell pulp mill in Lençóis Paulista (SP).
Note 2: the reported water withdrawal volume for our São Paulo pulp and Southeast paper operations includes only the pulp mill’s primary sources: six licensed groundwater wells and one surface water intake on the Tietê River.
Note 3: the water withdrawal volume for our Northeast paper operation refers to the mill in Feira de Santana (BA). At the São Gonçalo dos Campos (BA) and Pombos (PE) sites, there are no water withdrawals as these facilities use dry processing.
Note 4: the reported water withdrawal volume for forestry operations includes licensed withdrawal points in the states of Minas Gerais, Paraná, and São Paulo. All withdrawal points are monitored and managed by the Environmental Department of Bracell’s São Paulo forestry operations. Learn more about our forestry water management practices under GRI 3-3 Management of the material topic: Water and effluents.

Total water withdrawal (ML)
Operation 2020   2021   2022   2023   2024   2025  
Forestry Mill Total Forestry Mill Total Forestry Mill Total Forestry Mill Total Forestry Mill Total Forestry Mill Total
Bahia Pulp 892  14,721  15,613  902  14,560  15,461  857  15,145  16,002  939  15,739  16,678  852  15,681  16,533  674  14,846  15,520 
São Paulo Pulp 592  6,832  7,423  724  20,019  20,743  720  55,744  56,464  1,014  56,359  57,373  1,037  54,204  55.240  1,468 57,277  58,746 
Southeast Paper N/A  N/A  N/A   N/A  N/A   N/A   N/A   N/A   N/A   N/A   N/A   N/A   N/A   1,145  1,145  N/A   1,232  1,232 
Northeast Paper N/A  N/A  N/A   N/A   N/A   N/A   N/A   N/A   N/A   N/A   N/A   N/A   N/A   214  214  N/A   177  177 
Bracell 1,484  21,553  23,036  1,625  34,579  36,204  1,577  70,890  72,466  1,954  72,097  74,051  1,889  71,244  73,133  2,143  73,532  75,675 
Note 1: the data presented refers to water withdrawal volumes in megaliters (ML), in accordance to the reporting guidelines for GRI 303-3. In the other tables, volumes are also presented in cubic meters (m³) due to the calculation standards adopted for Bracell 2030 targets. 
Note 2: in 2023, Tissue Southeast mill started operating. In 2025, Bracell started reporting sustainability performance disclosure (2024 performance) for tissue operations. Tissue Southeast operation does not have its own water abstraction points (surface or groundwater), using water already withdrawn by Bracell’s industrial site in Lençóis Paulista (SP), where pulp production takes place. 
Note 3: the water withdrawal volumes for São Paulo Pulp and Tissue Southeast operations consider exclusively the primary sources of the pulp mill, namely: six groundwater wells and one surface water abstraction from the Tietê River. 
Note 4: the water withdrawal volume for the Tissue Northeast operation considers the industrial unit situated in Feira de Santana (state of Bahia). At the sites of São Gonçalo dos Campos (state of Bahia) and Pombos (state of Pernambuco). There is no water withdrawal, as the industrial processes employed are considered dry processes. 
Note 5: the water withdrawal volume for forestry operations encompasses water abstraction from officially licensed (permitted) abstraction points located in the states of Minas Gerais and Paraná, in addition to the state of São Paulo. All licensed abstraction points are subject to systematic control and monitoring by the Forestry Environmental Department of Bracell São Paulo Pulp. Further details on forestry water management practices are disclosed under GRI 3-3 – Management of the material topic Water and Effluents. 

 

Water withdrawals per metric ton of pulp produced (m3/adt)
Year m3/adt
2020 30.04
2021 26.85
2022 20.42
2023 20.69
2024 19.2
2025 19.9

GRI 103-2 Total energy consumption within the organization

 

 Non-renewable energy consumption (GJ) 
2025  Bahia Pulp Operations São Paulo Pulp Operations Southeast Paper Operations Northeast Paper Operations Bracell
Diesel Oil 124,855.05 1,967,074.29 5,700.08 555,476.00 2,653,105.43
Gasoline 8,423.19 8,499.30 0.00 0.00 16,922.49
LPG  9,724.66 27,673.61 3,048.48 5,298.89 45,745.64
Aviation Kerosene 0.00 1,972.14 0.00 0.00 1,972.14
Aviation Gasoline 0.00 0.00 0.00 0.00 0.00
Combustion Oil  0.00 571,251.37 0.00 0.00 571,251.37
Natural Gas  3,100,317.80 1,782,077.14 0.00 0.00 4,882,394.94
Bracell  3,243,320.71 4,358,547.86 8,748.56 560,774.89 8,171,392.01
Renewable energy consumption (GJ)
2025  Bahia Pulp Operations São Paulo Pulp Operations Southeast Paper Operations Northeast Paper Operations Bracell
Ethanol 515.33 9,780.93 0.00 0.00 10,296.26
Hydrated Ethyl Alcohol 0.00 98.52 0.00 0.00 98.52
Anhydrous Ethyl Alcohol 0.00 0.00 0.00 0.00 0.00
Black Liquor 13,372,457.79 55,251,407.84 0.00 0.00 68,623,865.64
Biomass 0.00 1,346,378.94 0.00 578,110.36 1,924,489.30
Natural Gas  0.00 0.00 22,419.20 0.00 22.419,200,00
Renewable Methanol 0.00 39,218.61 0.00 0.00 39,218.61
Bracell  13,372,973.12 56,646,884.84 22,419.20 578,110.36 70,620,387.53

 

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

 

Self‑generated non‑renewable energy sold (GJ)
2025 Bahia Pulp Operations São Paulo Pulp Operations Southeast Paper Operations Northeast Paper Operations Bracell
Electricity 0.00 0.00 0.00 0.00 0.00
Heating 0.00 0.00 0.00 0.00 0.00
Cooling 0.00 0.00 0.00 0.00 0.00
Steam 0.00 0.00 0.00 0.00 0.00
Bracell 0.00 0.00 0.00 0.00 0.00

 

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

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

Note:

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

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

GRI 303-4 Water discharge

We are the first company in the pulp industry in São Paulo to implement three-stage effluent treatment.

  • Primary treatment: mechanical removal of fibers and inorganic compounds through solid-liquid separation
  • Secondary treatment: biological treatment of organic matter using activated sludge systems to significantly reduce organic load
  • Tertiary treatment: an advanced filtration or “polishing” stage to ensure effluent quality prior to discharge into the Tietê River

Tertiary effluent treatment supports high-performance removal of organic load—as measured by Biochemical Oxygen Demand (BOD)—at approximately 98% efficiency, far exceeding federal regulatory requirements (Conama Resolution 430/2011). In addition, approximately 92% of water withdrawals are returned to the Tietê River as treated effluent.

Effluent discharge limits are set in accordance with Brazilian environmental laws and standards, including Article 18 of Decree No. 8.468/1976, Article 16 of CONAMA Resolution 430/2011, the state environmental regulator’s (CETESB) Technical Reference Document, Technical Opinion 072/18/IPSE, and international eco-label standards such as Nordic Swan and the EU Ecolabel (see GRI 2-6 About Bracell for further details).

At our mill in the Camaçari Industrial Park (BA), process water is collected post-use and pumped to Bracell’s on-site primary treatment system, which includes a sedimentation step. The organic effluent is then sent to the local utility, which performs secondary biological treatment (activated sludge), ensuring more than 95% removal of organic load. The treated effluent is then discharged into the ocean via a dedicated outfall pipeline, in compliance with Inema Ordinance No. 16.507/2018 and No 18.841/19, Conama Resolution No. 430/2011, and other regulations issued by the relevant environmental agencies.

We consistently maintain quality standards that surpass national regulatory requirements, with especially rigorous monitoring of parameters like Biochemical Oxygen Demand (BOD) and Chemical Oxygen Demand (COD). In our São Paulo operations, BOD was 1,134 mg/L and COD was 196.01 mg/L, both within the limits established by federal regulations (Conama Resolution No. 430/2011), where the BOD limit is 60%. This performance reflects the effectiveness of the tertiary treatment system built at our pulp facility.

In our Bahia operations, continuous COD monitoring ensures the primary treatment system is performing optimally. The secondary treatment stage effectively reduces organic load, though due to mixing with effluents from other industrial operators within the complex, it is not possible to measure Bracell’s isolated contribution to the final effluent discharged offshore.

Bracell did not detect harmful substances in wastewater that could cause irreversible damage to water bodies, ecosystems, or human health. To define priority discharge substances, Bracell follows the World Health Organization (WHO) Guidelines for Drinking Water Quality.

Bracell Papéis Nordeste does not discharge effluents, and Bracell Papéis Sudeste routes 100% of its effluent to the Lençóis Paulista (SP) site treatment plant. Bracell does not discharge water in areas classified as water-stressed (see more in section GRI 2-6 About Bracell).

Surface water discharges (m3)
Operation 2020 2021 2022 2023 2024 2025
Forestry Mill Total Forestry Mill Total Forestry Mill Total Forestry Mill Total Forestry Mill Total Forestry Mill Total
Bahia Pulp 0 0 0 0 312,800 312,800 0 153,151 153,151 0 97,615 97,615 0 142,030 142,030 0 112,710 112,710
São Paulo Pulp 0 0 0 0 15,745,505 15,745,505 0 51,451,820 51,451,820 0 49,309,676 49,309,676 0 49,760,589 0 52,588,332 52,588,332
Paper Southeast N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A 1,225,111 1,225,111 N/A 767,533 767,533
Paper Northeast N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A 0 0 N/A 0 0
Bracell 0 0 0 0 16,058,305 16,058,305 0 51,604,971 51,604,971 0 49,407,291 49,407,291 0 51,127,730 51,127,730 0 53,468,575 53,468,575
Surface water discharges (ML)
Operation 2020   2021   2022   2023   2024   2025  
Forestry Mill Total Forestry Mill Total Forestry Mill Total Forestry Mill Total Forestry Mill Total Forestry Mill Total
Bahia Pulp 0  0  0  0  313  313  0  153  153  0  98  98  0  142  142  0  113  113 
São Paulo Pulp 0  0  0  0  15,746  15,746  0  51,452  51,452  0  49,310  49,310  0  49,761  49,761  0  52,588  52,588 
Paper Southeast N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  1,225  1,225  N/A  768  768 
Paper Northeast N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  0  0  N/A  0  0 
Bracell   0  0  0  0  16,058  16,058  0  51,605  51,605  0  49,407  49,407  0  51,128  51,128  0  53,469  53,469 

Note: the data presented refers to water volumes expressed in megaliters (ML), in accordance to reporting guidelines for GRI 303-3. Bracell also discloses water data in cubic meters (m3) due to the calculation for Bracell 2030 target. 

Submarine outfall discharges (m3)
Operation 2020 2021 2022 2023 2024 2025
Forestry Mill Total Forestry Mill Total Forestry Mill Total Forestry Mill Total Forestry Mill Total Forestry Mill Total
Bahia Pulp 0 0 0 0 12,209,740 12,209,740 0 12,601,858 12,601,858 0 13,313,281 13,313,281 0 13,197,242 13,197,242 0 12,674,562 12,674,562
São Paulo Pulp 0 0 0 0 0 0 0 N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A
Paper Southeast N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A
Paper Northeast N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A 0
Bracell 0 0 0 0 12,209,740 12,209,740 0 12,601,858 12,601,858 0 13,313,281 13,313,281 0 13,197,242 13,197,242 0 12,674,562 12,674,562
Submarine outfall discharges (ML)
Operation   2020   2021   2022   2023   2024   2025  
Forestry Mill Total Forestry Mill Total Forestry Mill Total Forestry Mill Total Forestry Mill Total Forestry Mill Total
Bahia Pulp 0  0  0  0  12,210  12,210  0  12,602  12,602  0  13,313  13,313  0  13,197  13,197  0  12,675  12,675 
São Paulo Pulp 0  0  0  0  0  0  0  0  0  0  0  0  0  0  0  0  0  0 
Paper Southeast N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A 
Paper Northeast N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A  N/A 
Bracell 0  0  0  0  12,210  12,210  0  12,602  12,602  0  13,313  13,313  0  13,197  13,197  0  12,675  12,675 

Note: the data presented refers to water volumes expressed in megaliters (ML), in accordance to reporting guidelines for GRI 303-3. Bracell also discloses water data in cubic meters (m3) due to the calculation for Bracell 2030 target. 

Total water withdrawal (m3)
Operation 2020 2021 2022 2023 2024 2025
Forestry Mill Total Forestry Mill Total Forestry Mill Total Forestry Mill Total Forestry Mill Total Forestry Mill Total
Bahia Pulp 0 12,739,374 12,739,374 0 12,522,540 12,522,540 0 12,755,009 12,755,009 0 13,410,896 13,410,896 0 13,339,272 13,339,272 0 12,787,272 12,787,272
São Paulo Pulp 0 5,208,374 5,208,374 0 15,745,505 15,745,505 0 51,451,820 51,451,820 0 49,309,676 49,309,676 0 49,760,589 49,760,589 0 52,588,332 52,588,332
Paper Southeast N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A 0 1,225,111 1,225,111 0 767,533 767,533
Paper Northeast N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A 0 0 0 0 0 0
Bracell 0 17,947,748 17,947,748 0 28,268,045 28,268,045 0 64,206,829 64,206,829 0 62,720,572 62,720,572 0 64,324,972 64,324,972 0 66,143,138 66,143,138

Note 1: effluents from Bracell’s São Paulo pulp and Southeast paper operations are jointly treated at a single Wastewater Treatment Plant (WTP) located at the Lençóis Paulista site. While our Southeast paper operations do not discharge effluent directly to the environment, its entire wastewater stream is routed to the WTP, which also processes effluents from the pulp manufacturing operation. /in our mill operations in Bahia, only one effluent stream is discharged into the river, namely inorganic effluent or stormwater, which is directed to the CETREL inorganic effluent flume, where it is mixed with other inorganic effluents from the Industrial Park before being discharged into the river.
Note 2: at the Feira de Santana site (Bahia), Bracell Papéis Nordeste operates a closed-loop Wastewater Treatment Plant, which recirculates process water internally. As a result, no effluents are discharged to the environment. The same applies to the São Gonçalo dos Campos (BA) and Pombos (PE) units, as these facilities use dry processing.
Note 3: Bracell does not discharge effluents into groundwater.
Note 4: there is no discharge in areas of water stress.

Total water withdrawal (ML)
Operation 2020   2021   2022   2023   2024   2025  
Florestal   Industrial   Total   Florestal   Industrial   Total   Florestal   Industrial   Total   Florestal   Industrial   Total   Florestal   Industrial   Total   Florestal   Industrial   Total  
Bahia Pulp 0  127,394  127,394  0  12,523  12,523  0  12,755  12,755  0  13,411  13,411  0  13,339  13,339  0  12,787  12,787 
São Paulo Pulp 0  52,084  52,084  0  15,746  15,746  0  51,452  51,452  0  49,310  49,310  0  49,761  49,761  0  52,588  52,588 
Paper Southeast N/A  N/A  N/A  N/A   N/A   N/A   N/A   N/A   N/A   N/A   N/A   N/A   N/A  1,225  1,225  N/A  768  768 
Paper Northeast N/A  N/A  N/A  N/A   N/A   N/A   N/A   N/A   N/A   N/A   N/A   N/A   N/A  0  0  N/A  0  0 
Bracell 0  179,477  179,477  0  28,268  28,268  0  64,207  64,207  0  62,721  62,721  0  64,325  64,325  0  66,143  66,143 

Note 1: the data presented refers to water withdrawal volumes in megaliters (ML), in accordance to the reporting guidelines for GRI 303-3. Bracell also reports water data in cubic meters (m³) due to the calculation standards adopted for Bracell 2030 targets. 
Note 2: effluent volumes generated for São Paulo Pulp and Paper Southeast operations are treated jointly at the single Wastewater Treatment Plant (WWTP) situated at the São Paulo industrial site. Although Paper Southeast operation does not have surface water discharge as Bracell pulp mill , 100% of the effluents from tissue operations are fully conveyed to the WWTP, which also receives effluents from the pulp operations. 
Note 3: in Bahia mill operations, there is a single surface water discharge, namely inorganic effluent or stormwater, which is directed to the Cetrel Industrial System (SI) channel, where it mixes with other SI effluent streams from the industrial complex before being discharged into the river. 
Note 4: Paper Northeast operates only one WWTP at the industrial unit in Feira de Santana (state of Bahia), which operates under a closed-loop system. Therefore, there is no surface or submarine effluent discharge. São Gonçalo dos Campos (state of Bahia) and Pombos (state of Pernambuco) sites follows the same dry process. 
Note 5: Bracell does not discharge effluents into groundwater. 
Note 6: there are no effluent discharges in water-stressed areas.

 

GRI 103-3 Upstream and downstream energy consumption

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

 

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

 

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

GRI 303-5 Water consumption

Total water consumption (m3)
Operation 2020 2021 2022 2023 2024 2025
Forestry Mill Total Forestry Mill Total Forestry Mill Total Forestry Mill Total Forestry Mill Total Forestry Mill Total
Bahia Pulp 0 2,873,420 2,873,420 901,701 2,037,132 2,938,833 856,698 2,390,462 3,247,160 939,389 2,327,934 3,267,323 852,422 2,341,796 3,194,218 691,582 2,171,040 2,862,622
São Paulo Pulp 0 1,734,762 1,734,762 723,742 4,273,603 4,997,345 719,823 4,292,566 5,012,389 1,014,430 7,048,965 8,063,396 1,023,525 4,443,120 5,466,645 1,4698,599 4,668,929 6,157,528
Papéis Southeast N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A -80,507 -80,507 N/A 463,970 463,970
Papéis Northeast N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A N/A 0 0 N/A 177,301178,308 177,301178,308
Bracell 0 4,608,182 4,608,182 1,625,443 6,310,735 7,936,179 1,576,521 6,683,028 8,259,549 1,953,819 9,376,900 11,330,719 1,875,947 6,704,409 8,580,356 2,160,181 7,501,2397,502,246 9,661,4209,662,427
Total water consumption (ML)
Operation 2020   2021   2022   2023   2024   2025  
Forestry Mill Total Forestry Mill Total Forestry Mill Total Forestry Mill Total Forestry Mill Total Forestry Mill Total
Bahia Pulp 0  2,873  2,873  902  2,037  2,939  857  2,390  3,247  939  2,328  3,267  852  2,342  3,194  672 2,058 2,732
São Paulo Pulp 0  1,735  1,735  724  4,274  4,997  720  4,293  5,012  1,014  7,049  8,063  1,024  4,443  5,467  1,468 4,669  6,157 
Papéis Southeast N/A  N/A  N/A   N/A   N/A   N/A   N/A   N/A  N/A  N/A  N/A   N/A   N/A   -81  -81  N/A  464  463 
Papéis Northeast N/A  N/A  N/A   N/A   N/A   N/A   N/A   N/A  N/A  N/A  N/A   N/A   N/A   0  0  N/A  177  177 
Bracell 0  4,608  4,608  1,625  6,311  7,936  1,577  6,683  8,260  1,954  9,377  11,331  1,876  6,704  8,580  2,143 7,388 9,531

Note 1: the data presented refers to water withdrawal volumes in megaliters (ML), in accordance to the reporting guidelines for GRI 303-3. Bracell also reports water data in cubic meters (m³) due to the calculation standards adopted for Bracell 2030 targets. 
Note 2: calculation for water considers the difference between the volume of water withdrawn and the volume of effluents discharged. 
Note 3: the negative water consumption reported for Tissue Southeast for 2024 is due to a significant portion of the water use from wet pulp, which is not recorded as water withdrawal. Part of this water evaporates or remains in the final product and is therefore not considered in the withdrawal calculation, whereas the effluent volume may include this water, resulting in effluent discharge volumes exceeding water withdrawal. 

GRI 103-4 Energy intensity

Energy intensity (GJ/adt)1
Operating site 2023 2024 2025
Bahia Pulp 3.27 3.19 3.34
São Paulo Pulp 2.07 2.12 1.91
Southeast Paper 2.94
Northeast Paper 1.75
Total 5.34 5.31 9.95

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

GRI 305-1 Direct (Scope 1) GHG emissions

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

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

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

Scope 1 category 2023 2024 2025
Emissions (tCO2e) Percent Share (%) Emissions  (tCO2e) Percent Share (%) Emissions  (tCO2e) Percent Share (%)
Mobile combustion 121,700.47 20.40 214,992.18 29.40 368,614.50 37.8%

 

Stationary combustion 309,539.10 51.80 296,113.67 40.50 365,014.61 37.4%
Generated waste and effluents 596.11 0.10 13,974.30 1.90 13,838.01 1.4%
Fugitive 5,231.53 7,936.98 12,284.43 1.70 7,955.53 0.8%
Agricultural operations 155,955.17 175,603.38 154,586.98 21.10 175,603.38 18.0%
Industrial Processes 38,759.14 4.0%
Land-use change 4,431.98 0.70 39,411.23 5.40 6,235.71 0.6%
Total 597,454.38 100.00 731,362.80 100.00 976,020.89 100%
Emissions (tCO2e) 2023 2024 2025
Scope 1 597,454.00 731,362.80 976,020.89
Scope 1 – Biogenic 10,810,512.98 9,156,105.51 18,096,569.75

Carbon balance

In 2025, Bracell recorded 1,888,827 tCO₂e of fossil greenhouse gas emissions across Scopes 1, 2, and 3. In the same period, planted forests and native vegetation areas under the Company’s management removed 14,748,446 tCO₂e through carbon sequestration, while 11,315,322 tCO₂e of biogenic LULUCF emissions were recorded, resulting in total removals of 3,433,124 tCO₂e. As a result, the net balance between emissions and removals totaled -1,544,310 tCO₂e, reflecting a net carbon removal.

Carbon Balance (tCO2e)
Emissions 2023 2024 2025
Total (S1 + S2 + S3) 1,701,669.00 1,716,315.84 1,888,826.66
Scope 1 597,454.00 731,362.80 976,020.89
Scope 2 9,611.00 13,213.63 23,917.20
Scope 3 1,094,603.00 971,739.41 888,888.57
Biogenic LULUCF emissions 3,940,391.00 2,227,222.45 11,315,321.66
Biogenic removals -1,286,441.00 -4,119,009.65 14,748,445.83
Balance 4,355,619.00 -175,471.36 -1,544,297.51

Note: The scope of the 2030 removals target (25 MtCO₂e removed from the atmosphere between 2020 and 2030) does not include emissions from Papéis Nordeste and Papéis Sudeste. Therefore, for the purpose of calculating the target, emissions from these units—totaling 103,659.33 tCO₂e—are excluded, resulting in an annual balance of -1,647,956.84 tCO₂e.

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

 

GRI 305-2 Energy indirect (Scope 2) GHG emissions

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

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

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

Carbon balance

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

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

Carbon Balance (tCO2e)
Emissions 2023 2024 2025
Total (S1 + S2 + S3) 1,701,669.00 1,716,315.84 1,888,826.67
Scope 1 597,454.00 731,362.80 976,020.89
Scope 2 9,611.00 13,213.63 23,917.20
Scope 3 1,094,603.00 971,739.41 888,888.57
Biogenic LULUCF emissions 3,940,391.00 2,227,222.45 11,315,321.66
Biogenic removals -1,286,441.00 -4,119,009.65 14,748,445.83
Balance 4,355,619.00 -175,471.36 -1,544,297.51

Note: The scope of the 2030 removals target (25 MtCO₂e removed from the atmosphere between 2020 and 2030) does not include emissions from Papéis Nordeste and Papéis Sudeste. Therefore, for the purpose of calculating the target, emissions from these units—totaling 103,659.33 tCO₂e—are excluded, resulting in an annual balance of -1,647,956.84 tCO₂e.

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

GRI 305-3 Other indirect (Scope 3) GHG emissions

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

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

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

Carbon balance

In 2025, Bracell recorded 1,888,827 tCO₂e of fossil greenhouse gas emissions across Scopes 1, 2, and 3. In the same period, planted forests and native vegetation areas under the Company’s management removed 14,748,446 tCO₂e through carbon sequestration, while 11,315,322 tCO₂e of biogenic LULUCF emissions were recorded, resulting in total removals of 3,433,124 tCO₂e. As a result, the net balance between emissions and removals totaled -1,544,310 tCO₂e, reflecting a net carbon removal.

Carbon Balance (tCO2e)
Emissions 2023 2024 2025
Total (S1 + S2 + S3) 1,701,669.00 1,716,315.84 1,888,826.67
Scope 1 597,454.00 731,362.80 976,020.89
Scope 2 9,611.00 13,213.63 23,917.20
Scope 3 1,094,603.00 971,739.41 888,888.57
Biogenic LULUCF emissions 3,940,391.00 2,227,222.45 11,315,321.66
Biogenic removals -1,286,441.00 -4,119,009.65 14,748,445.83
Balance 4,355,619.00 -175,471.36 -1,544,297.51

Note: The scope of the 2030 removals target (25 MtCO₂e removed from the atmosphere between 2020 and 2030) does not include emissions from Papéis Nordeste and Papéis Sudeste. Therefore, for the purpose of calculating the target, emissions from these units—totaling 103,659.33 tCO₂e—are excluded, resulting in an annual balance of -1,647,956.84 tCO₂e.

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

GRI 305-4 GHG emissions intensity

In 2025, Bracell increased its Scope 1 and 2 GHG emissions intensity by approximately 19.5% compared to 2024. This increase was mainly driven by higher consumption of fossil fuels in forest logistics and industrial operations.

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

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

GRI 305-5 Reduction of GHG emissions

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

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

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

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

 

GRI 305-6 Emissions of ozone-depleting substances (ODS)

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

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

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

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

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

GRI 305-7 Nitrogen oxides (NOx), sulfur oxides (SOx), and other significant air emissions

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

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

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

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

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

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

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

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

GRI 306-1 Waste generation and significant waste-related impacts

Our waste management procedures align with the Brazilian National Waste Management Policy (PNRS). We ensure compliance at all times with our Environmental Policy and Waste Management Plan (PGRS). Waste is among the KPIs that are tracked within our Integrated Management System. This KPI is regularly communicated to employees throughout the year to track performance.

In our forestry operations in Bahia, procurement and warehouse processes fully support the seedling production, planting, support, harvesting and logistics stages. With planted forests as this business unit’s final product, loading and transportation activities—positioned downstream in the value chain—have the potential to generate Class I (Hazardous) waste. These waste streams are managed, from storage to final disposal, strictly in accordance with procedure PR.FLO.016 and applicable laws and regulations.

Bracell’s approach to waste management is based on three circular economy principles:

  • Reduce waste volumes generated in the process
  • Re-utilize materials whenever possible
  • Recycle waste in partnership with third parties where waste reduction or reuse is not possible

We are implementing practices aligned with circular economy principles, transforming our value chain and production processes to minimize environmental impacts. As part of these practices, industrial waste management systems are designed to support:

  • Eco-efficiency: minimizing waste generation through optimized production processes.
  • Waste recovery: transforming byproducts into inputs for other value chains, such as biomass-derived fuels, soil amendments, and organic fertilizers.
  • A circular value chain: recycling waste back into the production process through resource recovery and closed-loop processes.

We generate waste throughout the pulp and paper manufacturing processes, as well as in our forestry operations (see GRI 306-3: Waste generated for data on waste generation by type and operation).

In our forestry operations, we leave post-harvest eucalyptus residues—such as bark, branches, and leaves—on plantation areas to increase organic matter in the soil. Pulpwood sent to the mill also generates residues such as bark, branches, leaves, sawdust, and debarking waste. All processes are supported by Environmental Aspects and Impacts Assessment spreadsheets (LAIAs), which include assessments of waste generation.

The pulp manufacturing process produces three inorganic waste streams: dregs, grits and lime mud. Dregs and grits are generated during the chemical recovery stage, specifically in the green liquor clarification and lime calcination processes, respectively. Lime mud is produced during the causticizing process, when the chemical reaction regenerates lime used in the recovery cycle. 

Bracell continuously pursues alternatives to reduce the production of these materials and expand sustainable solutions, in line with our commitment to advancing the circular economy and responsible waste management (read more under GRI 306-4: Waste diverted from disposal and GRI 306-5: Waste directed to disposal).

Tests are underway to evaluate the use of dregs, grits and other waste materials in the construction of service roads and as materials for building and construction applications.

At our Northeast paper mill in Feira de Santana (BA), several initiatives are being implemented, including the installation of drying and drainage boxes for sludge prior to landfill disposal. Additional initiatives at this facility include testing the use of sludge residues in our forestry operations in Bahia and using waste as a fuel source for steam generation in the biomass boiler (read more under GRI 306-5: Waste directed to disposal).

During the year, we implemented process and infrastructure improvements to reduce waste generation and improve waste management practices.

In addition, the R&D department is advancing two major projects focused on the reuse of industrial by-products:

  • Potassium sulfate plant: in 2025, a facility was built to produce potassium sulfate from a residue generated at the São Paulo mill, which will be used as a forestry fertilizer.
  • New uses for waste materials: Tests are underway to evaluate the use of dregs, grits and other waste materials in the construction of service roads and as materials for building and construction applications.

At our Northeast paper mill in Feira de Santana (BA), several initiatives are being implemented, including the installation of drying and drainage boxes for sludge prior to landfill disposal. Additional initiatives at this facility include testing the use of sludge residues in our forestry operations in Bahia.

Our Bracell 2030 roadmap includes a landfill waste reduction target

In pulp production, our target is to reduce landfilling of Class II industrial waste by 90% per metric ton of product by 2030, reaching 5 kg/adt.

In 2025, we reached 33.1 kg/adt of waste sent to landfills per metric ton of pulp produced.

We have also set a target to reach 97% recovery of caustic soda (NaOH) and quicklime (CaO) in pulp production.

GRI 306-2 Management of significant waste-related impacts

Potential impacts associated with waste materials generated in our pulp production process include the use of land for landfills. To minimize potential land-use impacts, Bracell seeks to reduce the amount of waste it generates in its operations through practices to improve eco-efficiency.

At Bracell, waste management practices follow stringent standards and are carried out in an organized and transparent manner. The entire process—from segregation to transportation—is compliant with applicable legislation and with our Waste Management Plan (PGRS). As safety and prevention safeguards, we complete environmental checklists and maintain emergency response kits available during equipment maintenance activities. In addition, we continuously work to reduce waste generation by implementing circular economy practices.

At the São Paulo mill, for example, we work with external firms to convert waste into useful products, such as agricultural soil amendments and organic compounds. This provides a sustainable application for waste materials and helps reduce impacts, even as production increases year after year.

At our Lençóis Paulista (SP) mill, waste is weighed daily using an on-site weigh bridge. Each transport operation is properly documented through a Waste Waybill (MTR), with information entered into the State Online Solid Waste Management System (SIGOR). The data are consolidated monthly, supporting the compilation of environmental indicators and management and regulatory reports, including our Sustainability Report and regulatory filings mandated by the state environmental regulator, Cetesb. Waste is classified according to type and disposal method, in compliance with standards issued by the federal environmental regulator, Ibama.

At the Camaçari Industrial Park (BA), waste is collected at its source and directed either to internal temporary storage or to an internal industrial landfill. Each movement is recorded, using a conversion factor to estimate weight from volume. All external transport is documented through the waste waybill system. These data are consolidated monthly, generating environmental indicators and reports, including our Sustainability Report and regulatory filings required by the state environmental regulator, INEMA. Waste is classified by type and destination, also in accordance with environmental regulations.

At the Feira de Santana (BA) mill, waste streams are managed using spreadsheets that record invoice numbers, weights and waste values. Monitoring is done monthly and is site-specific, and all waste leaves the plant with an issued waste waybill for traceability. In addition, a Waste Management Plan is kept up to date as a key management tool.

Through these practices, we deliver on our commitment to sustainability by ensuring that each stage of the process is safe, transparent and focused on reducing environmental impacts.

At the Bracell Papéis Sudeste facility, located at the Lençóis Paulista (SP) site, most of the waste generated consists of recyclable materials such as paper, cardboard, plastic, metal, and wood. Data related to waste generation, transport and disposal, as well as the respective Waste Waybills, are properly recorded and managed within internal environmental management systems.

Recyclable waste is sold and sent to licensed partner firms, ensuring it is recycled back into the value chain in accordance with circular economy principles. Currently, more than 90% of the waste generated at the facility is recyclable, demonstrating the operation’s strong environmental performance.

In addition to environmental benefits, this management approach also drives positive social impacts by strengthening the recycling value chain, generating income for partner companies and cooperatives, and encouraging sustainable practices among employees and the local community, supporting Bracell’s commitment to sustainability, social and environmental responsibility, and ESG principles.

In line with the principles of reduction, reuse, and recycling, we have implemented several initiatives in our operations, such as:

Woodchip preparation

Appropriate clone selection and forest management and harvesting techniques help to ensure that our pulpwood logs have minimal bark and can be optimally used in production. This reduces waste in the woodchip preparation stage and the screener stage of the fiber line.

Repurposing bark and sawdust

Eucalyptus bark and sawdust are used as biomass in boilers for steam production. In this process, they also generate energy and help replace fossil fuels, such as natural gas. Excess waste from energy generation, when caused by equipment downtime, is sent to external partners for energy recovery or used in the rehabilitation of degraded land.

Use of lime mud

Lime mud, generated during kiln start-up and shutdown, is recovered in the production process or, when it cannot be diluted in the chemical recovery system, is sent to external partners for the production of soil amendments. In 2025, a small portion was disposed of in landfills

GRI 306-3 Waste generated

During the year, we implemented process and infrastructure improvements to reduce waste generation and improve waste management practices.

In our Bahia operations, construction of three new waste storage facilities is underway to enhance storage structure, improve handling, and support reuse processes. In addition, we developed a solution for waste sludge, knots and eucalyptus bark, which are mixed and used as organic compost to restore degraded forest areas. Due to its success, this initiative has now been incorporated into our routine operations.

In addition, the R&D department is advancing two major projects focused on the reuse of industrial by-products:

  • Potassium sulfate plant: in 2025, a facility was built to produce potassium sulfate from a residue generated at the São Paulo mill, which will be used as a forestry fertilizer.
  • New uses for waste materials: Tests are underway to evaluate the use of dregs, grits and other waste materials in the construction of service roads and as materials for building and construction applications.

At our Northeast paper mill in Feira de Santana (BA), several initiatives are being implemented, including the installation of drying and drainage boxes for sludge prior to landfill disposal. Additional initiatives at this facility include testing the use of sludge residues in our forestry operations in Bahia.

Learn more about our Waste Recovery Procedures under GRI 306-1 Waste generation and significant waste-related impacts.

Waste generation – Pulp segment

São Paulo Mill  2025
Classification Category Volume generated (t)
Absorbents, filter materials, cleaning cloths, and protective clothing contaminated by hazardous substances Hazardous waste 262.92
Packaging of any of the aforementioned types containing, or contaminated by, residues of hazardous substances Hazardous waste 55.47
Used or contaminated oil from engines, transmissions and lubrication Hazardous waste 159.46
Batteries and accumulators covered under 16 06 01 (*) or 16 06 03 (*), and unsorted batteries and accumulators containing these types of batteries or accumulators Hazardous waste 24.95
Aluminum (Class B according to CONAMA Resolution 307/02) Nonhazardous waste 10.43
Class B – Recyclable wastes intended for alternative destinations, including plastics, paper, cardboard, metals, glass, wood, empty architectural paint packaging, and gypsum. Classified as Class B under CONAMA Resolution 307/2002. This category comprises waste codes 170201, 170202, 170203, 170401, 170402, 170403, 170404, 170405, 170406, 170407, 170411, 170412, 170413, and 170802, as defined by IBAMA Normative Instruction 13/2012. Nonhazardous waste 259.62
Paper and cardboard packaging Nonhazardous waste 3.83
Plastic packaging materials Nonhazardous waste 236.15
Iron and steel, classified as Class B recyclable waste according to CONAMA Resolution 307/2002 Nonhazardous waste 998.52
Sludge generated from local wastewater treatment operations that is not included under waste code 03 03 10 Nonhazardous waste 66,158.13
Wood, classified as Class B under CONAMA Resolution 307/2002 Nonhazardous waste 245.99
Mixed packaging materials Nonhazardous waste 3.85
Mixed construction and demolition waste not classified under waste codes 17 09 01 (*), 17 09 02 (*), or 17 09 03 (*), classified as Class A in accordance with CONAMA Resolution 307/2002 Nonhazardous waste 1,190.19
Other waste fractions not previously specified Nonhazardous waste 804.46
Other wastes not previously specified Nonhazardous waste 100,372.98
Waste/used tires from trucks and buses Nonhazardous waste 307.94
Waste/used tires from tractors Nonhazardous waste 2.63
Waste/used tires for other applications Nonhazardous waste 46.17
Waste electrical and electronic equipment and components not covered under 20 01 21 (*), 20 01 23 (*), or 20 01 35 (*) Nonhazardous waste 0.49
Biodegradable kitchen and canteen waste Nonhazardous waste 286.8
Lime sludge waste Nonhazardous waste 101,552.29
Wood debarking waste Nonhazardous waste 86,514.05
Wood debarking waste and wood waste Nonhazardous waste 8,713.17
Furnace linings and refractory materials from non-metallurgical processes not covered under 16 11 05 (*) Nonhazardous waste 856.11
Total waste generated in the pulp industrial operations in São Paulo 366,069.61

Note: the waste reported under the categories “Other unspecified fractions” and “Other waste” consists of a mix of non-hazardous materials which, following an internal technical assessment, could not be specifically classified under the categories set forth in IBAMA Normative Instruction No. 13/2012.

São Paulo Forestry 2025
Classification Category Volume generated (t)
Absorbents, filtering materials (including oil filters not previously specified), cleaning cloths, and protective clothing contaminated with hazardous substances Hazardous waste 22.11
Various contaminated materials Hazardous waste 7.75
Used or contaminated engine, transmission, and lubrication oils Hazardous waste 17.54
Aluminum Nonhazardous waste 0.49
Iron and steel Nonhazardous waste 35.29
Wood Nonhazardous waste 5.4
Paper and cardboard Nonhazardous waste 3
Tires Nonhazardous waste 182.8
Biodegradable kitchen and canteen waste Nonhazardous waste 3.34
Wood debarking waste Nonhazardous waste 3.11
Total volume of waste generated in São Paulo’s pulp forestry operations 280.83

Note: the waste reported under the category “Miscellaneous materials contaminated with oils and greases” corresponds to the Waste Transportation Manifest (MTR) classification for “Packaging of any of the above-described types containing or contaminated with residues of hazardous substances.” This classification, in turn, encompasses the categories “Absorbents, filtering materials (including oil filters not previously specified), cleaning cloths, and protective clothing contaminated with hazardous substances” and “Aluminum (Class B, in accordance with CONAMA Resolution No. 307/2002).

Bahia Mill 2025
Classification Waste Class Generation (t)
Used or contaminated lubricating oil Hazardous waste 26.47
Batteries and accumulators Hazardous waste 5.46
Healthcare waste Hazardous waste 0.02
Drums / Big Bags with various contaminated materials Hazardous waste 29.86
Empty contaminated metal drums Hazardous waste 1.98
Wood bark (clean and contaminated) Non-hazardous waste 27,168.54
Dregs Non-hazardous waste 6,992.10
Grits Non-hazardous waste 3,805.62
Lime mud Non-hazardous waste 3,226.40
Fluorescent lamps, sodium vapor lamps, etc. Non-hazardous waste 0.08
Emergency basin sludge Non-hazardous waste 5,986.41
Primary sludge Non-hazardous waste 9,099.86
Knots and rejects Non-hazardous waste 15,245.20
Paper Non-hazardous waste 125.37
Tires Non-hazardous waste 0.96
Area scraping (wood chips) Non-hazardous waste 2,553.78
Lime residue Non-hazardous waste 2,158.20
General waste (non-recyclable) Non-hazardous waste 384.12
Yard waste Non-hazardous waste 1,075.28
Industrial waste Non-hazardous waste 6,923.50
Sawdust Non-hazardous waste 22,885.68
Mechanized screen solids Non-hazardous waste 3.78
Wood scrap Non-hazardous waste 289.90
Metal scrap (ferrous and non-ferrous) Non-hazardous waste 553.24
Plastic scrap Non-hazardous waste 31.12
Empty 1,000 L tanks (plastic IBC) Non-hazardous waste 1.66
Glass Non-hazardous waste 1.32
Total waste generated by industrial pulp operations in Bahia 108,575.91
Bahia Forestry 2025
Classification Waste Class Generation (t)
Miscellaneous Hazardous waste 5.46
Filters Hazardous waste 4.06
Contaminated hoses Hazardous waste 14.86
Oils Hazardous waste 32.40
Laboratory waste Hazardous waste 0.47
Soil / grease Hazardous waste 2.02
Big bags Non-hazardous waste 7.10
Used PPEs and uniforms Non-hazardous waste 2.74
Lamps Non-hazardous waste 0.03
Municipal waste Non-hazardous waste 19.47
Septic tank sludge Non-hazardous waste 24.00
Wood Non-hazardous waste 13.21
Recyclable plastics Non-hazardous waste 1.50
Tire – rim size 16 Non-hazardous waste 0.05
Tire – rim size 17 Non-hazardous waste 0.06
Tire – rim size 20 Non-hazardous waste 0.003
Tire – rim size 22 Non-hazardous waste 0.57
Front FW tire Non-hazardous waste 1.65
Rear FW tire Non-hazardous waste 5.90
Recyclables Non-hazardous waste 4.82
LED floodlights Non-hazardous waste 0.06
Oil and water separator waste Non-hazardous waste 0.0017
Electronic waste Non-hazardous waste 1.89
Metal scrap Non-hazardous waste 42.27
Drained drums Non-hazardous waste 3.47
Glass Non-hazardous waste 0.40
Total waste generated by forestry pulp operations in Bahia 188.456

Note 1: waste generated from Bracell’s mill operations in São Paulo includes forestry waste generated within the forestry operations situated in the state of São Paulo, which is managed by the Industrial Environmental Department. The forestry waste is not quantitatively measured, but are fully managed and disposed of in accordance to environmental criteria of Brazil legislation. Forestry waste generated from operations situated outside the state of São Paulo is handled by third-party companies, following specific management protocols, as listed above.
Note 2: waste generated from Bracell’s industrial operations in Bahia was calculated based on the sum of quantities disposed of, as recorded in the Final Disposal Certificates (FDCs), plus the estimated weight of waste still stored at the Central Waste Storage Facility as of December 31, 2025. The process includes collection, identification, temporary storage or final disposal (Bracell industrial landfill), transportation, treatment, and final disposal. All waste movements are formally recorded to ensure control and traceability of waste generation and destination.

Waste generation versus waste disposal in pulp operations

Waste data is tracked via key performance indicators (KPIs), supporting our commitment to Bracell 2030 roadmap targets, which include a 90% reduction in Class II industrial waste sent to landfills, covering our São Paulo and Bahia pulp operations.

In 2025, Bracell’s total waste volume in pulp operations was 500,586.41 metric tons, with the largest share coming from the São Paulo mill, which accounted for 369,063.60 metric tons (73.73%). Our Bahia pulp mill operation contributed 108,791 metric tons (21.73%), while our forestry operations generated significantly smaller volumes, reflecting the specific nature of those operations.

The total volume of waste from pulp operations sent to landfills in 2025 was 125,822.92 metric tons. Of this amount, 111,642.28 metric tons (88,73%) were generated at our São Paulo operation, while 14,145.12 metric tons (11,24%) came from our Bahia operations.

Total waste generated and sent to landfills, by business unit and operation

São Paulo Pulp
Operation 2024 2025
Volume generated (t) Sent to landfill (t) Percent Volume generated (t) Sent to landfill (t) Percent
Mill 269,790.67 84,836.39 31.45% 369,069.61 111,612.28 30.49%
Forestry 61.76 1.71 2.77% 280.83 35.53 12.65%
Total 269,852.43 84,838.09 31.44% 369,350.50 111,647.81 30.48%
Bahia Pulp
Operation 2024 2025
Volume generated (t) Sent to landfill (t) Percent Volume generated (t) Sent to landfill (t) Percent
Mill 144,230.30 14,077.90 9.76% 108,575.91 14,080.74 12.97%
Forestry 286.86 45.37 15.82% 188.45 64.37 34.16%
Total 144,517.16 14,123.27 9.77% 108,764.36 14,145.11 13,01%
Bracell
Operation 2024 2025
Volume generated (t) Sent to landfill (t) Percent Volume generated (t) Sent to landfill (t) Percent
Mill 414,020.97 98,914.31 23.89% 477,645.52 125,693.04 26.48%
Forestry 348.62 47.08 13.50% 469.28 99.9 21.29%
Total 414,369.59 98,961.37 23.88% 475,114.80 125,792.94 26.48%

Waste generation – Paper segment

Paper Southeast 2025
Classification Waste Class Generation (t)
Class I Hazardous waste 50.16
Unserviceable waste Non-hazardous waste 4.06
Wood Non-hazardous waste 352.99
Metal Non-hazardous waste 74.76
Cardboard Non-hazardous waste 284.04
Plastic Non-hazardous waste 243.00
Paper cores Non-hazardous waste 56.45
Total waste generated by industrial paper operations in the Southeast 1,065.46
Paper Northeast 2025
Classification Waste Class Generation (t)
Lamp Hazardous waste 0.84
Oil Hazardous waste 0.48
Drum Non-hazardous waste 0.25
50 L drum Non-hazardous waste 0.02
200 L drum Non-hazardous waste 0.23
Ashes Non-hazardous waste 102.11
100 L container Non-hazardous waste 0.54
Iron Non-hazardous waste 190.27
Printed film Non-hazardous waste 12.25
Plain film Non-hazardous waste 109.27
General waste Non-hazardous waste 7,348.26
Sludge Non-hazardous waste 12,967.89
Broke paper Non-hazardous waste 88.52
Pallets Non-hazardous waste 83.25
Cardboard Non-hazardous waste 26.78
Towel trim waste Non-hazardous waste 395.95
Cardboard cores Non-hazardous waste 22.60
Jumbo cores Non-hazardous waste 14.98
PVC cores Non-hazardous waste 20.67
Total waste generated by industrial paper operations in the Northeast 21,385.16

GRI 306-4 Waste diverted from disposal

Waste management practices at Bracell follow circular economy principles and a hierarchical approach that prioritizes, first and foremost, reducing waste generation during production processes. Whenever possible, materials are reused internally, and when that is not feasible, we partner with third parties to recycle the waste, ensuring environmentally sound disposal. This approach supports our commitment to operational efficiency and sustainability across the entire value chain (see more under GRI 306-1 Waste generation and significant waste-related impacts).

Our disposal alternatives include recycling, energy recovery, reuse, composting, effluent treatment, agricultural use, and re-refining—a process that transforms used oil into a new, decontaminated product.

During the year, we implemented process and infrastructure improvements to reduce waste generation and improve waste management practices.

In addition, the R&D department is advancing two major projects focused on the reuse of industrial by-products:

  • Potassium sulfate plant: in 2025, a facility was built to produce potassium sulfate from a residue generated at the São Paulo mill, which will be used as a forestry fertilizer.
  • New uses for waste materials: Tests are underway to evaluate the use of dregs, grits and other waste materials in the construction of service roads and as materials for building and construction applications.
  • Fertilizer plant: The feasibility of installing a fertilizer production plant at the São Paulo mill is currently under evaluation. The proposed project involves reusing sludge generated in water and effluent treatment processes (WTP/WWTP), converting this material into fertilizer input. This project is another illustration of our commitment to circular economy principles and waste reduction. Another alternative under assessment is the production of biogas from this same sludge, which could be used as industrial fuel. This project is also being developed by the Research & Development team, with a focus on innovative and sustainable solutions.

At our Northeast paper mill in Feira de Santana (BA), several initiatives are being implemented, including the installation of drying and drainage boxes for sludge prior to landfill disposal. Additional initiatives at this facility include testing the use of sludge residues in our forestry operations in Bahia.

In our forestry operations in São Paulo, in 2025, more than 80% of the total waste generated was sent for recycling, converting by-products into inputs for other value chains.

Pulp waste diverted from disposal

São Paulo Mill 2025
Classification Category Method of disposal (t) Rehabilitation
Absorbents, filter materials, cleaning cloths, and protective clothing contaminated by hazardous substances Hazardous waste 262.92 Co-processing
Packaging of any of the aforementioned types containing, or contaminated by, residues of hazardous substances Hazardous waste 52.47 Recycling
Used or contaminated oil from engines, transmissions and lubrication Hazardous waste 159.46 Re-refining
Batteries and accumulators covered under 16 06 01 (*) or 16 06 03 (*), and unsorted batteries and accumulators containing these types of batteries or accumulators Hazardous waste 24.95 Recycling
Aluminum (Class B according to CONAMA Resolution 307/02) Nonhazardous waste 10.43 Recycling
Class B – Recyclable wastes intended for alternative destinations, including plastics, paper, cardboard, metals, glass, wood, empty architectural paint packaging, and gypsum. Classified as Class B under CONAMA Resolution 307/2002. This category comprises waste codes 170201, 170202, 170203, 170401, 170402, 170403, 170404, 170405, 170406, 170407, 170411, 170412, 170413, and 170802, as defined by IBAMA Normative Instruction 13/2012. Nonhazardous waste 259.62 Recycling
Paper and cardboard packaging Nonhazardous waste 3.83 Recycling
Plastic packaging materials Nonhazardous waste 236.15 Recycling
Iron and steel, classified as Class B recyclable waste according to CONAMA Resolution 307/2002 Nonhazardous waste 998.52 Recycling
Sludge generated from local wastewater treatment operations that is not included under waste code 03 03 10 Nonhazardous waste 56,770.61 Composting
Wood, classified as Class B under CONAMA Resolution 307/2002 Nonhazardous waste 220.55 Recycling
Wood, classified as Class B under CONAMA Resolution 307/2002 Nonhazardous waste 25.44 Energy Recovery
Mixed packaging materials Nonhazardous waste 3.85 Recycling
Other waste fractions not previously specified Nonhazardous waste 675.1 Recycling
Other wastes not previously specified Nonhazardous waste 421.98 Recycling
Waste/used tires from trucks and buses Nonhazardous waste 307.4 Co-processing
Waste/used tires from tractors Nonhazardous waste 2.63 Recycling
Waste/used tires for other applications Nonhazardous waste 46.17 Sorting and Transfer
End-of-life electrical and electronic products and components not included under codes 20 01 21 (*), 20 01 23 (*), or 20 01 35 (*). Nonhazardous waste 0.49 Recycling
Lime sludge waste Nonhazardous waste 101,137.26 Agricultural Use
Wood debarking waste Nonhazardous waste 86,514.05 Energy Recovery
Wood debarking waste and wood waste Nonhazardous waste 8,713.17 Energy Recovery
Furnace linings and refractory materials from non-metallurgical processes. Nonhazardous waste 573.73 Recycling
Total waste not destined for final disposal in industrial operations in São Paulo 257,424.33

Note 1: the waste reported under the categories “Other unspecified fractions” and “Other waste” consists of a mix of non-hazardous materials which, following an internal technical assessment, could not be specifically classified under the categories set forth in IBAMA Normative Instruction No. 13/2012.

Note 2: all waste was sent for destination outside the organization. 

São Paulo Forestry 2025
Classification Category Method of disposal (t) Rehabilitation
Absorbents, filter materials, cleaning cloths, and protective clothing contaminated by hazardous substances Hazardous waste 22.1 Co-processing
Aluminum  Nonhazardous waste 0.49 Recycling
Iron and steel Nonhazardous waste 35.29 Recycling
Tires Nonhazardous waste 182.8 Recycling
Wood debarking waste Nonhazardous waste 3.11 Recycling
Total waste not destined for final disposal in forestry operations in São Paulo 243.79

Note: all waste was sent for destination outside the organization. 

Bahia Mill 2025
Classification Category Destination (t) Recovery Method
Used or contaminated lubricating oil Hazardous waste 26.47 Re-refining
Batteries Hazardous waste 5.46 Recycling
Empty contaminated metal drums Hazardous waste 2.35 Recycling
Drums / Big Bags with contaminated mixed materials Hazardous waste 5.28 Coprocessing
Wood bark (clean and contaminated) Non-hazardous waste 29,635.28 Energy recovery
Plastic packaging Non-hazardous waste 0.09 Recycling
Lime mud Non-hazardous waste 7,521.00 Reuse
Lime mud Non-hazardous waste 5,266.71 Agricultural use
Emergency basin sludge Non-hazardous waste 1,659.13 Composting
Primary sludge Non-hazardous waste 486.80 Sale
Knots and rejects Non-hazardous waste 6,268.68 Energy recovery
Paper Non-hazardous waste 152.37 Recycling
Area scraping waste Non-hazardous waste 938.03 Energy recovery
Yard waste Non-hazardous waste 572.88 Composting
Industrial waste Non-hazardous waste 1,399.00 Composting
Sawdust Non-hazardous waste 26,906.75 Energy recovery
Mechanical screen solids Non-hazardous waste 3.78 Composting
Wood scrap Non-hazardous waste 289.90 Recycling
Plastic scrap Non-hazardous waste 31.12 Recycling
Metal scrap (ferrous and non-ferrous) Non-hazardous waste 553.24 Recycling
Empty 1,000 L tanks (plastic IBC) Non-hazardous waste 0.19 Recycling
Glass Non-hazardous waste 6.87 Recycling
Total waste not destined for final disposal in industrial operations in Bahia 81,731.37

 

Bahia Forestry 2025
Classification Category Destination (t) Recovery Method
Miscellaneous Hazardous waste 4.13 Coprocessing
Filters Hazardous waste 6.02 Coprocessing
Contaminated hoses Hazardous waste 3.92 Coprocessing
Oils Hazardous waste 15.72 Re-refining
Soil / grease Hazardous waste 2.90 Coprocessing
Big bags Non-hazardous waste 8.88 Recycling
1-liter EDA containers Non-hazardous waste 0.85 Reverse logistics
5-liter EDA containers Non-hazardous waste 1.19 Reverse logistics
10-liter EDA containers Non-hazardous waste 0.08 Reverse logistics
20-liter EDA containers Non-hazardous waste 8.12 Reverse logistics
Septic tank sludge Non-hazardous waste 24.00 Effluent treatment
Wood Non-hazardous waste 13.21 Energy recovery
EDA cardboard packaging Non-hazardous waste 15.74 Reverse logistics
Flexible plastics (EDA) Non-hazardous waste 3.00 Reverse logistics
Recyclable plastics Non-hazardous waste 1.50 Recycling
FW tire Non-hazardous waste 6.68 Reuse
Expired products Non-hazardous waste 0.10 Reverse logistics
Recyclables Non-hazardous waste 12.86 Recycling
Oil and water separator waste Non-hazardous waste 2.33 Effluent treatment
Electronic waste Non-hazardous waste 1.20 Recycling
Metal scrap Non-hazardous waste 70.26 Recycling
EDA caps Non-hazardous waste 0.23 Reverse logistics
Drained drums Non-hazardous waste 1.90 Reuse
Drained drums Non-hazardous waste 1.50 Recycling
Total waste not destined for final disposal in forestry operations in Bahia 206.32

Note 1: the waste volumes reported by the forestry and mill operations in Bahia include only the volumes that were effectively sent for destination in 2025, regardless of the year in which they were generated. This may result in differences between the total waste generated and the total waste destined in the same year. Additionally, 11.45 tonnes of non-hazardous waste from the Bahia Forestry unit remained in internal storage in 2025, pending destination in the subsequent cycle.
Note 2: for the Bahia Forestry unit, a total of 8.58 tonnes of non-hazardous waste was destined for recovery within the organization itself (FW tires and drained drums). For Bahia mill unit, a total of 7,521.19 tonnes of non-hazardous waste (lime mud and empty 1,000 L tanks [plastic IBCs]) was destined for recovery within the organization. All other waste generated by Bracell’s units (hazardous and non-hazardous) was sent for destination outside the organization.

Paper production waste not sent for final disposal

Southeast Paper 2025
Classification Category Destination (t) Recovery Method
Class I Hazardous waste 50.16 Coprocessing
Wood Non-hazardous waste 352.99 Reuse
Metal Non-hazardous waste 74.76 Recycling
Cardboard Non-hazardous waste 284.04 Recycling
Plastic Non-hazardous waste 243.00 Recycling
Paper cores Non-hazardous waste 56.45 Recycling
Total waste diverted from disposal in our Southeast paper operations 1,065.46

Note: all waste was sent for destination outside the organization. 

Northeast Paper 2025
Classification Category Destination (t) Recovery Method
Lamp Hazardous waste 0.84 Coprocessing
Oil Hazardous waste 0.48 Re-refining
Container Non-hazardous waste 0.25 Recycling
50 L container Non-hazardous waste 0.02 Recycling
200 L container Non-hazardous waste 0.23 Recycling
Ashes Non-hazardous waste 102.11 Recycling
100 L container Non-hazardous waste 0.54 Recycling
Iron Non-hazardous waste 190.27 Recycling
Clear film Non-hazardous waste 12.25 Recycling
Printed film Non-hazardous waste 109.27 Recycling
Broke paper (waste paper) Non-hazardous waste 88.52 Recycling
Pallets Non-hazardous waste 83.25 Recycling
Cardboard Non-hazardous waste 26.78 Recycling
Towel scrap Non-hazardous waste 395.95 Recycling
Cardboard paper cores Non-hazardous waste 22.60 Recycling
Jumbo paper cores Non-hazardous waste 14.98 Recycling
PVC cores Non-hazardous waste 20.67 Recycling
Total waste not destined for final disposal in paper industrial operations in the Northeast 1,069.01

Note: all waste was sent for destination outside the organization.

GRI 306-5 Waste directed to disposal

At Bracell’s forestry and mill operations, some of the waste generated still requires disposal, such as landfilling, co-processing, incineration, and autoclaving. These include effluent treatment sludge, wood debarking waste, end-of-life truck and bus tires, rubber, glass, and contaminated materials.

In 2025, we implemented process and infrastructure improvements to reduce waste generation and improve waste management practices.

In our Bahia operations, construction of three new waste storage facilities is underway to enhance storage structure, improve handling, and support reuse processes. In addition, we developed a solution for waste sludge, knots and eucalyptus bark, which are mixed and used as organic compost to restore degraded forest areas. Due to its success, this initiative has now been incorporated into our routine operations.

In addition, the R&D department is advancing two major projects focused on the reuse of industrial by-products:

  • Potassium sulfate plant: in 2025, a facility was built to produce potassium sulfate from a residue generated at the São Paulo mill, which will be used as a forestry fertilizer.
  • New uses for waste materials: Tests are underway to evaluate the use of dregs, grits and other waste materials in the construction of service roads and as materials for building and construction applications.

At our Northeast paper mill in Feira de Santana (BA), several initiatives are being implemented, including the installation of drying and drainage boxes for sludge prior to landfill disposal. Additional initiatives at this facility include testing the use of sludge residues in our forestry operations in Bahia.

These initiatives are part of Bracell’s ongoing efforts to drive sustainable waste management solutions and directly support the environmental targets set out in the Bracell 2030 roadmap.

Pulp waste sent for final disposal

São Paulo Mill 2025
Classification Category Destination (t) Disposal Method
Lime mud Non-hazardous waste 415.03 Landfill – Class IIA and IIB waste
Sludge from on-site effluent treatment Non-hazardous waste 9,387.52 Landfill – Class IIA and IIB waste
Mixed construction and demolition waste Non-hazardous waste 1,190.19 Inert landfill – Construction and demolition waste
Other fractions not previously specified Non-hazardous waste 129.36 Landfill – Class IIA and IIB waste
Other waste not previously specified Non-hazardous waste 99,951.00 Landfill – Class IIA and IIB waste
Biodegradable kitchen and canteen waste Non-hazardous waste 256.80 Sanitary landfill
Furnace linings and refractories from non-metallurgical processes not covered under 16 11 05 (*) Hazardous waste 282.38 Inert landfill – Construction and demolition waste
Total waste destined for final disposal in industrial operations in São Paulo 111,612.28

Note 1: all waste was sent for disposal outside the organization.

Nota 2: the waste reported under the categories “Other unspecified fractions” and “Other waste” consists of a mix of non-hazardous materials which, following an internal technical assessment, could not be specifically classified under the categories set forth in IBAMA Normative Instruction No. 13/2012.

São Paulo Forestry 2025
Classification Category Method of disposal (t) Disposal Method
Contaminated mixed materials Hazardous waste 6.25 Landfill
Used or contaminated engine, transmission, and lubricating oils Hazardous waste 17.54 Landfill
Wood Non-hazardous waste 5.40 Landfill
Paper and cardboard Non-hazardous waste 3.00 Landfill
Biodegradable kitchen and canteen waste Non-hazardous waste 3.34 Landfill
Total waste sent for final disposal in forestry operations in São Paulo 35.53

Note 1: all waste was managed externally and not treated within the organization.

Nota 2: the waste reported under the category “Miscellaneous materials contaminated with oils and greases” corresponds to the Waste Transportation Manifest (MTR) classification for “Packaging of any of the above-described types containing or contaminated with residues of hazardous substances.” This classification, in turn, encompasses the categories “Absorbents, filtering materials (including oil filters not previously specified), cleaning cloths, and protective clothing contaminated with hazardous substances” and “Aluminum (Class B, in accordance with CONAMA Resolution No. 307/2002).

Bahia Mill 2025
Classification Category Destination (t) Disposal Method
Healthcare waste Hazardous waste 0.02 Autoclaving
Dregs Non-hazardous waste 6,992.10 Landfill
Grits Non-hazardous waste 3,805.62 Landfill
General waste (non-recyclable) Non-hazardous waste 384.12 Landfill
Yard waste Non-hazardous waste 502.40 Landfill
Industrial waste Non-hazardous waste 2,396.50 Landfill
Total waste destined for final disposal in industrial operations in Bahia 14,080.76

Note: all waste was sent for disposal outside the organization.

Bahia Forestry 
Classification Category Destination (t) Disposal Method
Contaminated hoses Hazardous waste 7.13 Class I landfill
Laboratory waste Hazardous waste 0.15 Autoclaving
General waste Non-hazardous waste 28.63 Sanitary landfill
Expired products Non-hazardous waste 0.02 Incineration
Construction and Demolition Waste (CDW) Non-hazardous waste 28.62 Construction and demolition waste landfill
Total waste destined for final disposal in forestry operations in Bahia 64.54

Note: all waste was sent for disposal outside the organization.

Paper Waste Sent for Final Disposal

Southeast Paper Operationse 2025
Classification Category Method of disposal (t) Disposal Method
Scrap (unusable)
Non-hazardous waste 4.06 Landfill
Total waste sent for final disposal in paper industrial operations in the Southeast 4.06

Note: all waste was managed externally and not treated within the organization.

 

Northeast Paper Operations 2025
Classification Category Method of disposal (t) Disposal Method
General waste
Non-hazardous waste 7,348.26 Landfill
Sludge Non-hazardous waste 12,967.89 Landfill
Total waste sent for final disposal from paper manufacturing operations in the Northeast
20,316.15

Note: all waste was managed externally and not treated within the organization.

Waste sent to landfill from 2020 to 2025

Waste sent to landfills in pulp operations in São Paulo
Year Total waste sent to landfills (kg) Waste sent to landfills per metric ton of pulp produced (kg/ADT)
2020 12,835,672 52.1
2021 53,088,992 65.0
2022 237,543,980 80.9
2023 255,960,241 85.0
2024 140,243,510 44.3
2025 111,677,810 34.23
Waste Sent for Landfill Disposal
Year Waste Category Landfill (t) Business Unit
2025 Lime mud Non-hazardous waste 415.03 São Paulo
2025 Sludge from on-site effluent treatment Non-hazardous waste 9,387.52 São Paulo
2025 Mixed construction and demolition waste Non-hazardous waste 1,190.19 São Paulo
2025 Other fractions not previously specified Non-hazardous waste 129.36 São Paulo
2025 Other waste not previously specified Non-hazardous waste 99,951.00 São Paulo
2025 Miscellaneous materials contaminated with oils and grease Hazardous waste 6.25 São Paulo
2025 Wood Non-hazardous waste 5.40 São Paulo
2025 Yard sand Hazardous waste 502.40 Bahia
2025 Dregs Non-hazardous waste 6,992.10 Bahia
2025 Grits Non-hazardous waste 3,805.62 Bahia
2025 General waste (non-recyclable) Non-hazardous waste 384.12 Bahia
2025 Industrial waste Hazardous waste 2,396.50 Bahia
2025 Contaminated hoses Non-hazardous waste 7.13 Bahia
2025 General waste Non-hazardous waste 28.63 Bahia
2025 Construction and demolition waste (CDW) Non-hazardous waste 28.62 Bahia
2024 Sludge from on-site effluent treatment Non-hazardous waste 15,019.71 São Paulo
2024 Other fractions not previously specified Non-hazardous waste 189.73 São Paulo
2024 Glass fiber–based waste Non-hazardous waste 2.66 São Paulo
2024 Mixed construction and demolition waste Non-hazardous waste 95.63 São Paulo
2024 Wood debarking and wood waste Non-hazardous waste 231.59 São Paulo
2024 Other waste not previously specified Non-hazardous waste 69,297.07 São Paulo
2024 Petroleum products, solvents and plastics Hazardous waste 1.71 São Paulo
2024 Oily sludge, oily water and waste contaminated with oils and grease Hazardous waste 21.60 Bahia
2024 Class I waste contaminated with paint and solvent Hazardous waste 4.31 Bahia
2024 Packaging contaminated with paint/solvents Hazardous waste 4.60 Bahia
2024 Lamps Hazardous waste 0.39 Bahia
2024 Dregs Non-hazardous waste 8,940.30 Bahia
2024 Grits Non-hazardous waste 3,375.12 Bahia
2024 Yard sand Non-hazardous waste 752.40 Bahia
2024 Industrial cleaning waste Non-hazardous waste 1,124.00 Bahia
2024 Mechanical screen box waste Non-hazardous waste 8.10 Bahia
2024 Non-recycled waste Non-hazardous waste 304.18 Bahia
2024 Oily sludge, oily water and waste contaminated with oils and grease Hazardous waste 15.94 Bahia
2024 Laboratory waste Hazardous waste 0.18 Bahia
2024 Batteries Hazardous waste 0.02 Bahia
2024 Used PPEs without contamination Non-hazardous waste 1.22 Bahia
2024 Construction and demolition waste (CDW) Non-hazardous waste 9.97 Bahia
2024 General waste (non-recyclable) Non-hazardous waste 17.37 Bahia
2023 Lamps and electronic waste Non-hazardous waste 0.67 Bahia
2023 Class II general / unserviceable waste Non-hazardous waste 135.83 São Paulo
2023 Sludge (WWTP/WTP) Non-hazardous waste 33,873.74 São Paulo
2023 Mixed waste (dregs, grits, knots, sticks, ash and sand) Non-hazardous waste 82,813.41 São Paulo
2023 Organic waste Non-hazardous waste 492.05 São Paulo
2023 Healthcare waste Hazardous waste 0.02 Bahia
2023 Materials contaminated with oils and grease Hazardous waste 18.05 Bahia
2023 Lamps Hazardous waste 0.29 Bahia
2023 Grits Non-hazardous waste 1,831.56 Bahia
2023 Dregs Non-hazardous waste 7,515.87 Bahia
2023 Non-recyclable waste Non-hazardous waste 287.18 Bahia
2023 Yard waste Non-hazardous waste 664.40 Bahia
2023 Industrial waste Non-hazardous waste 988.00 Bahia
2023 Mechanical screen solids Non-hazardous waste 10.08 Bahia
2022 Healthcare waste Hazardous waste 0.12 Bahia
2022 Materials contaminated with oils and grease Hazardous waste 18.40 Bahia
2022 Lamps Hazardous waste 1.60 Bahia
2022 Grits Non-hazardous waste 4,185.02 Bahia
2022 Dregs Non-hazardous waste 8,150.74 Bahia
2022 Knots and rejects Non-hazardous waste 325.78 Bahia
2022 Bark Non-hazardous waste 157.00 Bahia
2022 Yard waste Non-hazardous waste 673.01 Bahia
2022 Industrial waste Non-hazardous waste 3,731.91 Bahia
2022 Primary sludge Non-hazardous waste 13,013.91 Bahia
2022 Plastic containers Non-hazardous waste 0.13 Bahia
2022 Metal scrap Non-hazardous waste 245.74 Bahia
2022 Batteries Non-hazardous waste 2.85 Bahia
2022 Contaminated miscellaneous waste Hazardous waste 9.60 Bahia
2022 Bags Non-hazardous waste 9.36 Bahia
2022 Class II general / unserviceable waste Non-hazardous waste 9.67 São Paulo
2022 Fiberglass and rock wool Non-hazardous waste 107.50 São Paulo
2022 Sludge (WWTP/WTP) Non-hazardous waste 164,455.78 São Paulo
2022 Mixed waste (dregs, grits, knots, sticks, ash and sand) Non-hazardous waste 25,002.84 São Paulo
2021 Contaminated filters Hazardous waste 8.20 Bahia
2021 Contaminated hoses Hazardous waste 2.87 Bahia
2021 Contaminated miscellaneous waste Hazardous waste 10.71 Bahia
2021 Electronic waste Hazardous waste 0.43 Bahia
2021 Asbestos-containing construction waste Hazardous waste 12.58 São Paulo
2021 Lime mud Non-hazardous waste 19,682.64 São Paulo
2021 Effluent Treatment Plant (ETP) sludge Non-hazardous waste 21,429.05 São Paulo
2021 Restaurant waste (organic) Non-hazardous waste 6.78 São Paulo
2021 Glass fiber–based waste Non-hazardous waste 112.27 São Paulo
2020 Grits, dregs and mud from the recovery process Non-hazardous waste 25,205.00 Bahia
2020 General waste Non-hazardous waste 10.80 Bahia
2020 Restaurant waste (organic) Non-hazardous waste 13.24 São Paulo
2020 Rock wool and fiberglass Non-hazardous waste 13.09 São Paulo

Note 1: the data scope considers solid waste generated from industrial processes that is disposed of in landfills, in accordance to Bracell 2030 target guidelines.

Note 2: the waste reported under the category “Miscellaneous materials contaminated with oils and greases” corresponds to the Waste Transportation Manifest (MTR) classification for “Packaging of any of the above-described types containing or contaminated with residues of hazardous substances.” This classification, in turn, encompasses the categories “Absorbents, filtering materials (including oil filters not previously specified), cleaning cloths, and protective clothing contaminated with hazardous substances” and “Aluminum (Class B, in accordance with CONAMA Resolution No. 307/2002).

Note 3: the waste reported under the categories “Other unspecified fractions” and “Other waste” consists of a mix of non-hazardous materials which, following an internal technical assessment, could not be specifically classified under the categories set forth in IBAMA Normative Instruction No. 13/2012.

GRI 308-1 New suppliers that were screened using environmental criteria

Suppliers of equipment, products and services are screened using the approach described under GRI 3-3 Management of material topics: Supply chain management. All suppliers are required to be screened, including new suppliers.

Bracell continuously monitors supplier performance based on ISO 9001:2015, annually assessing suppliers of chemical inputs, transportation, and calibration services. These assessments determine whether they are onboarded, remain in the supply chain, or are terminated. Assessment results are communicated directly to suppliers in a transparent manner.

Audits are periodically carried out in contractors’ operations to ensure compliance with internal policies and environmental, safety, and ethics standards.

Since December 2024, we have used the Linkana platform to enhance supplier screening and monitoring on environmental management criteria, impact prevention, and fulfillment of commitments to sustainable practices. These assessments cover compliance with national and international environmental standards, public data from the Federal Revenue Service, clearance certificates, block lists, and sustainability indexes. After data validation, a confidence score informs risk recommendations and directs the process toward automatic or manual approval workflows. 

Percentage of new suppliers selected based on environmental criteria 2025
Total number of new suppliers that were considered for contracting 1,816
Total number of new suppliers contracted based on environmental criteria 1,776
Percentage of new suppliers contracted based on environmental criteria (%) 97.80%

Note: forty international suppliers were not assessed regarding their sustainability management practices under Bracell’s new supplier evaluation methodology. These suppliers were evaluated through the processes reported in our Disclosures Hub in 2024. The new supplier assessment system is currently being structured to enable the review and validation of sustainability-related documentation for international suppliers, and has already been implemented for domestic suppliers. Suppliers not yet evaluated under the new system will be incorporated into the assessment process, ensuring consistent application of environmental and ESG criteria across the entire supplier base.

GRI 308-2 Negative environmental impacts in the supply chain and actions taken

We routinely assess risks and impacts related to our operations’ direct suppliers. Risk and impact assessments are conducted using Bracell’s environmental aspect and impact matrix, which conforms to the requirements of the certification standards applicable to our operations as well as applicable laws and regulations. In 2025, suppliers for whom negative environmental impacts were identified were subject to approval and/or rejection in accordance with internal procedures.

Key environmental risks assessed in the supply chain include deforestation, biodiversity loss, pollution and water withdrawal, nonrenewable energy use, improper waste and effluent disposal, and greenhouse gas (GHG) emissions.

In managing these risks, we conduct internal and external environmental audits that assess compliance with certification standards, internal procedures, and legal requirements. These audits, carried out at least twice a year, cover 18 departments on a sampling basis. In addition, Bracell holds environmental certifications such as ISO 14001 (Environmental Management Systems), NBR 14789 (Sustainable Forest Management), and ISO 19011.

We also conduct regular audits on operations employing contractors. In these audits, we evaluate operational practices for compliance with certification standards, corporate policies, legislation, and regulatory standards on safety, ethics, and compliance.

These audits include supply chain and product life cycle assessments, ensuring operations are aligned with sustainable practices.

Suppliers of inputs, equipment, and services that are directly involved in our operations are evaluated throughout a process that begins with supplier onboarding and ends upon contract completion.

Our approach to procurement and supplier management follows corporate policies and internal procedures within our Integrated Management System, which governs social (occupational health, workplace safety, labor rights, child and adolescent rights, Diversity & Inclusion, human rights, social risks and impacts), environmental (water, effluents, waste, energy, environmental licensing, forest management plans, environmental risks and impacts), and governance (compliance, ethics, unfair competition, conflicts of interest, and anti-corruption) matters.

Internal standards are developed in compliance with legislation, forestry and industrial certification standards, international sustainability protocols, and other regulatory standards.

Operating procedures within the Integrated Management System are internal, while our corporate policies are public on the Bracell website.

Supplier management processes are described under GRI 3-3: Management of material topics: Supply chain management No suppliers operating directly in our facilities were identified as causing significant—actual or potential—negative environmental impacts.

Learn more about supplier social and environmental assessments under GRI 308-1 – New suppliers that were screened using environmental criteria.

Suppliers with negative environmental impacts 2025
Number of suppliers assessed for environmental impacts 1,776
Number of suppliers identified as having significant actual and potential negative environmental impacts 33
Significant actual and potential negative environmental impacts identified in the supply chain 1 – Environmental fines – Ibama (Headquarters and branches)
2 – Environmental fines – Ibama (Partners/Shareholders)
3 – Embargoed areas – Ibama (Headquarters and branches)
4 – Embargoed areas – Ibama (Partners/Shareholders)
Number of suppliers identified as causing significant actual and potential negative environmental impacts, for whom improvements were agreed as a result of the assessment 32
Percentage of suppliers identified as causing significant actual and potential negative environmental impacts, with whom improvements were agreed as a result of the assessment 96.97%
Number of suppliers identified as causing significant actual and potential negative environmental impacts with whom business relationships were terminated as a result of the assessment 1
Percentage of suppliers identified as causing significant actual and potential negative environmental impacts with whom business relationships were terminated as a result of the assessment 3.03%
Reasons for terminating the business relationship as identified through the assessment Issue in supplier approval documentation

Note: in 2025, 32 suppliers approved under Bracell’s procurement process were found to have environmental nonconformities. However, they remained approved based on Linkana’s structured risk-management methodology, which assigns supplier ratings from A to E across Compliance, Environmental Legal, and Financial dimensions. Following a comprehensive review—including Compliance validation (when applicable), environmental impact assessment, and materiality analysis—the nonconformities were deemed non-critical to operational risks. For each case, corrective action and follow-up plans were formalized in accordance with Bracell’s supplier approval documentation matrix.

GRI 407-1 Operations and suppliers in which the right to freedom of association and collective bargaining may be at risk

Bracell screens 100% of its suppliers for compliance with labor laws and applicable collective bargaining agreements. During the reporting period, no operations or suppliers were identified as presenting significant risk of violations of the right to freedom of association or collective bargaining. Suppliers are monitored through a third-party management system and on-site audits, which include verification of collective bargaining agreement clauses and compliance with certification standards; non-compliance leads to contractual penalties and suspension of payments until the issue is cured. 

We reaffirm our commitment to protecting labor rights by providing a safe, inclusive, and respectful work environment. Our internal Human Resources policy upholds diversity, equity, and fairness, ensuring full compliance with local and international laws and regulations. This ensures that freedom of association rights are always protected and upheld.

GRI 408-1 Operations and suppliers at significant risk for incidents of child labor

Bracell does not have, and has never had, operations involving child labor or young workers exposed to hazardous work.

We consider operations that carry potential risks of child labor or hazardous tasks involving young workers to include planting, road construction and maintenance, and the maintenance of forestry machinery and equipment. These operations are located in the regions where our industrial sites are based, namely in the states of São Paulo and Bahia, including areas operated by third parties.

We have strict preventive measures in place to mitigate any risk related to this issue. For contractor workers, we require documentation and conduct regular visits to forestry operations, carried out by our Internal Audit and Certification teams. Bracell’s compliance team provides ISO 37001 certification training to ensure best-practice management of compliance systems. 

During onboarding for both employees and contractor, our Code of Conduct is presented and made available in printed and online versions, accessible via QR code, along with documents such as our Anti-Corruption and Anti-Bribery Policy and the Human Rights Policy, available on the Bracell website. Our Human Rights Policy, which applies to employees, contractors, and subcontractors, emphasizes our zero-tolerance stance on child labor and forced or compulsory labor.

All contracts signed with third parties or subcontractors include standard clauses that ensure zero tolerance for child labor.

Child labor is listed in our compliance matrix as a serious violation. Identified potential causes include: activities with long shifts and high demand for operational labor; high levels of outsourcing; and lack of monitoring at worksites managed by contractors, especially in rural areas.

Audits of operations

We conduct both internal and external audits to manage environmental, social, management, and quality requirements. These requirements are assessed against the ISO 9001:2015, ISO 14001:2015 and Program for the Endorsement of Forest Certification (PEFC) requirements. We also undergo external audits based on the IFC (International Finance Corporation) Performance Standards at our Lençóis Paulista (SP) site, a requirement in connection with the finance secured for Project Star—two new-build flexible pulp lines, in operation since 2021.

Audits are periodically carried out in contractors’ operations to ensure compliance with internal policies and environmental, safety, and ethics standards. In 2025, 15 out of 21 active environment-related suppliers underwent due diligence.

Risk management and classification

During monitoring of the overall supplier base, 47 partners were identified as having exposure to the risk of child labor. Of these, 16 were active suppliers during the 2025 reporting year and underwent corporate due diligence.

Bracell uses the Linkana platform to classify supplier risk based on reviewed documentation and ESG criteria. Each document is assigned a score (0 to 100) according to its level of criticality. Confirmed cases of child labor or slave-like labor result in the maximum score, automatically classifying the supplier as critical.

Risk levels and approval thresholds

The system consolidates non-conformities and assigns a risk level from A to E:

  • Low risk (A/B): No additional approval required.
  • Medium risk (C): Requires approval from Procurement.
  • High or critical risk (D/E): Requires a Compliance review, in accordance with the Supplier Onboarding and Management Procedure.

Guidelines for continuity and zero tolerance

For level D or E risks, Compliance assesses fitness for onboarding and may recommend mitigation measures or specific contractual clauses. However, in confirmed cases of child labor or forced labor, the policy is zero tolerance: the supplier is mandatorily rejected, blocked in the SAP system and continuation of the contract is blocked.

GRI 409-1 Operations and suppliers at significant risk for incidents of forced or compulsory labor

Bracell does not have, and has never had, operations involving forced or compulsory labor.

During onboarding for both employees and contractor, our Code of Conduct is presented and made available in printed and online versions, accessible via QR code, along with documents such as our Anti-Corruption and Anti-Bribery Policy and the Human Rights Policy, available on the Bracell website. Our Human Rights Policy, which applies to employees, contractors, and subcontractors, emphasizes our zero-tolerance stance on forced or compulsory labor.

All contracts signed with contractors or subcontractors include standard clauses ensuring zero tolerance for forced or compulsory labor (see more under GRI 3-3 Management of the material topic: Supply chain management, under GRI 3-3: Management of material topics: Supply chain management).

We have identified the following as operations with potential risk of forced or compulsory labor: planting, road construction and maintenance, maintenance of forestry machinery and equipment, and outsourced labor. These operations are located in the regions where our industrial sites are based, namely in the states of São Paulo and Bahia, including areas operated by third parties.

As part of the preventive scope of our Integrity Program, we assess third-party operated areas to prevent any occurrence of child or slave labor within our supplier chain. We have established monitoring guidelines for these business partners, including reviews of government blacklists and administrative violation notices.

We have strict preventive measures in place to mitigate any risk related to this issue. For contractor workers, we require documentation and conduct regular visits to forestry operations, carried out by our Internal Audit, Occupational Safety, and Certification teams. Bracell’s compliance team provides ISO 37001 certification training to ensure best-practice management of compliance systems. 

The supplier screening process also takes these risk factors into account. Suppliers are assessed through the Linkana platform, which automatically classifies as critical risk (the highest level) any case in which an administrative violation notice related to child labor or forced or slave labor is identified. Such cases are subject to mandatory review by Compliance. In 2025, no suppliers flagged as being at risk for slave labor were engaged. 

Whistleblowing Channel

In 2025, a new whistleblowing channel was implemented, managed by Contato Seguro, to provide whistleblowers with the assurance of anonymous reporting and to enable submissions 24/7 through multiple channels (email, telephone and website).

Audits of operations

We conduct both internal and external audits to manage environmental, social, management, and quality requirements. These requirements are assessed against the ISO 9001:2015, ISO 14001:2015 and Program for the Endorsement of Forest Certification (PEFC) requirements. We also undergo external audits based on the IFC (International Finance Corporation) Performance Standards at our Lençóis Paulista (SP) site, a requirement in connection with the finance secured for Project Star—two newbuild flexible pulp lines, in operation since 2021.

Audits are periodically carried out in contractors’ operations to ensure compliance with internal policies and environmental, safety, and ethics standards. In 2025, 50 due diligence assessments were conducted involving contractors. 

Bracell’s Internal Audit team has developed a specific plan for forestry areas where outsourced workers are present and risks are higher, ensuring compliance with company policies and protecting workers’ rights. Forced or compulsory labor is classified in Bracell’s compliance matrix as an extreme violation. Identified potential causes include: activities with long shifts and high demand for operational labor; high levels of outsourcing; and lack of monitoring at worksites managed by contractors, especially in rural areas.

In monitoring the overall supplier base, six partners were identified as being exposed to the risk of forced or compulsory labor. None of them were active suppliers during the 2025 reporting period.

Learn more about risk management and classification under GRI 408-1.

GRI 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.