Bracell employs contractors who work directly in our operations. These are contractors employed in areas such as catering, cleaning, machine and equipment maintenance and repair, security, as well as contractors operating in engineering, forestry services, and transportation. In 2025, 15,546 contractors worked directly in our operations.

For Bracell Papéis operations, data are available from 2024 onward, when this business unit became operational. For Bracell Papéis Nordeste operations, data are available from 2025 onward—this information was undergoing integration into Bracell’s management system in 2024 and, therefore, worker data are available only as totals, without a gender breakdown.

Workers who are not employees but provide services to the company

Gender	2023			2024					2025
	Bahia Pulp Operations	São Paulo Pulp Operations	Bracell	Bahia Pulp Operations	São Paulo Pulp Operations	Southeast Paper Operations	Northeast Paper Operations	Bracell	Bahia Pulp Operations	São Paulo Pulp Operations	Southeast Paper Operations	Northeast Paper Operations	Bracell
Men	2,671	12,056	14,727	3,877	11,397	502	–	15,776	4,190	9,641	232	25	14,088
Women	108	1,182	1,320	202	1,356	16	–	1,574	313	1,122	10	13	1,458
Total	2,809	13,238	16,047	4,079	12,753	518	5,744	17,350	4,503	10,763	242	38	15,546

 

In Bracell’s operations, in 2025, two environmental fines were incurred in forestry operations, one tax fine in industrial operations and four non-monetary sanctions related to non-compliance with laws and regulations. No fines or nonmonetary sanctions were incurred for non-compliance in civil or labor matters. The total amount of fines was R$ 5,298,510.92, all associated with violations allegedly committed in prior reporting periods.

We consider a case of non-compliance significant where it exceeds R$ 1 million or involves non-compliance with requirements or legislation that could impact the continuity of our activities, cause damage to our reputation or compromise consumer loyalty or customer and employee trust.

In our industrial operations in São Paulo, there were no fines or non-monetary sanctions for non-compliance with laws and regulations in 2025.

Despite having been party to violation notices and labor proceedings, Bracell presented defenses, appeals or judicial proceedings to annul the violation notices, as well as holding a Conduct Adjustment Agreement (TAC) with the public authorities concerning the non-fulfillment of working hours requirements.

In 2025, Bracell received no significant fines relating to non-compliance with laws or regulations.

To ensure compliance, Bracell fulfills federal, state and municipal legislation application to operations and has specialized internal departments addressing these matters, such as Legal, Environment and Certifications, Tax, Workplace Health & Safety, Social, Governance and Compliance. Legal requirements are managed by means of the Verde Ghaia SOGI system, which monitors and ensures compliance with standards applicable to Bracell Bahia.

In our Bracell Papéis operations, there were no fines or non-monetary sanctions for non-compliance with laws and regulations. There were no significant cases of non-compliance during the reporting period.

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

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

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

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

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

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

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

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

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

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

Bracell joins a pioneering biodiversity metrics initiative

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

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

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

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

Key biodiversity conservation practices

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

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

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

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

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

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

Key practices to protect biodiversity and ecosystems:

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

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

Targets and commitments

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

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

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

Impacts and risks

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

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

One-For-One Commitment

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

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

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

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

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

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

Long-term state partnerships

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

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

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

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

1)        Sign technical cooperation agreement with the state

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

3)        Agree on priority initiatives with each park manager

4)        Implement initiatives

5)        Measure impact

Action areas:

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

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

Amcham ECO Award

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

One-For-One Commitment Initiatives

Biodiversity restoration, monitoring, and management

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

 

Land stewardship and forest fire prevention and response

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

 

Environmental training and education

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

Stewardship

Environmental Education Center

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

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

Protected Areas under our One-For-One Commitment

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

Highlights from each front

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

Territorial protection and forest fire prevention

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

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

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

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

Biodiversity restoration, monitoring, and management

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

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

Environmental education and training

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

Biodiversity initiatives and commitments

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

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

Bracell joins a pioneering biodiversity metrics initiative

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

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

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

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

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

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

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

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

Bracell at COP30

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

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

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

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

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

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

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

Climate Governance

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

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

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

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

Climate Commitment – 2030 Targets

CLIMATE ACTION

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

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

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

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

Target 1: reduce carbon emissions per metric ton of product by 75%, targeting 0.122 tCO₂e/adt.

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

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

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

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

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

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

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

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

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

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

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

Climate Action

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

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

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

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

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

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

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

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

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

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

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

GHG inventory

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

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

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

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

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

Carbon balance

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

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

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

Monitoring Carbon and Water Flux in Eucalyptus Plantations

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

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

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

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

Eucflux-IPEF Cooperative Program

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

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

Climate Impacts and Risks

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

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

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

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

Climate adaptation

Forestry R&D, risk management and climate change impacts

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

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

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

Classical genetic improvement

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

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

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

Forestry and forest management

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

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

Forestry extension and technology transfer

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

Climate zoning studies

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

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

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

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

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

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

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

Energy Management

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

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

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

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

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

Renewable energy

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

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

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

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

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

Sustainability Attributes at Bracell Papéis

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

Pulp Transportation for Tissue Production

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

Automated Vertical Warehouse and Energy Efficiency

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

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

Solar Power

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

Biomass boiler

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

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%.

We promote economic development in the regions where we operate, including by engaging local suppliers to supply products and services for our forestry, mill, logistics (pulpwood, pulp and paper), and administrative operations.

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

Our approach to procurement and supplier management follows corporate policies and internal procedures within our Integrated Management System, which governs social (occupational health, workplace safety, labor rights, child and adolescent rights, Diversity & Inclusion, human rights, social risks and impacts), environmental (water, effluents, waste, energy, environmental licensing, forest management plans, environmental risks and impacts), and governance (compliance, ethics, unfair competition, conflicts of interest, and anti-corruption) matters. Internal standards are developed in compliance with legislation, forestry and industrial certification standards, international sustainability protocols, and other regulatory standards. Operating procedures within the Integrated Management System are internal, while our corporate policies are available on the Bracell website. (Read more about the Integrated Management System under GRI 2-16 Communication of critical concerns).

Processes involved in supplier management: 

– Third-party due diligence: before formal engagement, all suppliers undergo due diligence screening. This process is conducted in accordance with Bracell’s policies on Third-Party Due Diligence, Supplier Qualification and Evaluation, Sustainability, and Human Rights. 

– Environmental compliance validation: as part of the onboarding and screening process, suppliers acknowledge and agree to follow Bracell’s Procurement Code of Ethics. In our operations, suppliers are evaluated regarding compliance and their management of environmental risks and impacts. 

– Social compliance validation: social requirements and risks are assessed as part of our approach to managing contractors operating directly at our facilities. The contractor management process includes verifying compliance with labor rights such as compensation, collective bargaining agreements, working hours, vacation, weekly paid rest, training, occupational health and safety, among other mandatory requirements for managing social risks. This is done through the Contract Management System, where contractual documents are stored and compliance with legal requirements is verified. 

– Supplier evaluation and qualification: we assess suppliers’ capability to deliver products and services in accordance with legal, certification, and technical standards. 

– Audits: we perform audits on all operations employing contractors.

All suppliers are screened and must meet a minimum score to retain their supplier status. The findings from screening may prevent the relevant supplier from being awarded the contract or the negotiations from proceeding.

Bracell has not set specific sustainability targets for the supply chain and follows the management practices presented under GRI 414 – Supplier social assessment.

Human rights

We monitor our suppliers to ensure human rights are upheld, based on document reviews, third-party contract management, and audits conducted in our operations.

Our Human Rights Policy formalizes our commitment to sustainable development and best social practices through which we seek to positively impact people and communities. This policy outlines guidelines for managing human rights impacts and mandates compliance with labor laws.

This Human Rights Policy applies to all Bracell operations and to our relationships with all stakeholders, including contractors and subcontractors, local communities, business partners, the Forestry Partnership Program, customers, financial institutions, government organizations, trade associations, suppliers, and other priority stakeholders. The principles outlined in this code are also disseminated throughout our value chain.

Our Code of Conduct, Code of Procurement Ethics, Sustainability Policy and Pulpwood and Fiber Sourcing Policy establish guidelines on mitigating human rights risks and impacts and govern our contracts with suppliers and contractors. These policies support us in mitigating risks related to child labor and forced and slave labor in our value chain, and ensuring compliance with labor, child and adolescent rights.

This set of Company policies is aligned with international certification requirements and Brazilian laws and regulations, in particular the Regulatory Standards (NRs) of the Ministry of Labor and Employment.

We also continuously monitor the areas surrounding our forestry operations to help safeguard the human rights of communities near our eucalyptus plantations. This is done as part of a pulpwood traceability process.

To reduce actual impacts on communities near our industrial operations, we identify potential impacts to mitigate identified risks. We also publicize our official channels for submitting concerns, complaints and reports. (Read more about our channels and how cases are handled under GRI 2-16 Communication of critical concerns).

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

Managing potential and actual impacts

As part of our supplier management processes, we identify and analyze potential and actual impacts related to them. Both positive and negative aspects are considered in this process.

• Potential negative impacts: we identified potential impacts on product quality (kraft pulp, dissolving pulp, specialty pulp, and tissue products) due to quality issues with suppliers. We have internal controls in place to mitigate these risks.
• Actual negative impacts: these include negative social or environmental impacts and/or information security issues involving companies supplying materials and providing services to Bracell, as well as impacts that may occur in our own operations. These impacts are broad in scope and low in intensity. They are also managed through internal processes.

Other actual impacts include violations of human rights, labor rights, and environmental regulations across the value chain. This impact is broad in scope and high in intensity, and is considered a critical issue. These impacts are managed through internal processes.

Goals for 2026

Governance and SRM development 

• Create, review and update SRM policies, criteria, methodologies and guidelines
• Deliver training on and communicate SRM practices across business units, Procurement and internal functions

Supplier segmentation

• Implement a corporate supplier segmentation model (strategic, critical and transactional)
• Work closely with Procurement to ensure consistent application across all categories

Performance and relationship assessment

• Review commercial and technical evaluation questionnaires to ensure broader and more effective criteria within the methodology
• Expand the pool of critical suppliers (ISO and business-related) subject to mandatory annual assessments
• Prepare executive reports and support Procurement and technical teams in monitoring action plans

Risk, background checks and critical onboarding

• Apply corporate risk methodologies (financial exposure and dependency), in addition to ESG and compliance criteria, as defined by the CoE
• Enhance the onboarding process for critical suppliers by integrating data from MDM, Compliance, Quality and Safety

Supplier Development Programs

• Conduct capacity-building, continuous improvement and sustainability initiatives with strategic suppliers
• Support Procurement in cascading improvement initiatives and tracking progress

Linkana enhancements 

• Implement the requester module
• Launch a new version of Performance Assessments, including a dedicated module for tracking action plans

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.

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

Risk management and compliance

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

Sustainable forest management

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

Initiatives to halt and reverse biodiversity loss

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

Biodiversity monitoring and continuous improvement

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

Engagement with communities and scientific research

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

Transparency and Traceability

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

PEFC EUDR Certification

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

Responsible practices

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

1. Forest planning

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

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

2. Monitoring and control

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

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

3. Sustainable forest management

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

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

4. Certification

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

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

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

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

Measures to prevent negative impacts on biodiversity:

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

Measures to restore and rehabilitate affected ecosystems:

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

Offset measures for residual negative impacts:

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

Transformative measures and additional conservation actions:

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

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

Our approach includes:

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

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

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

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

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

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

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

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

Ecological restoration guide

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

You can download the guide on the Bracell website.

Ecological Restoration Guide – São Paulo

Ecological Restoration Guide – Mato Grosso do Sul

Areas protected or restored

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

 

Partner-protected or restored areas

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

 

Reason for omission: Not applicable.

Reason:

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

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

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

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

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

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

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

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

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

 

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

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

 

Reduction of species

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

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

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

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

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

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

HCV areas in the state of São Paulo

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

HCV areas and RPPNs in the state of Bahia

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Rio Batalha Protected Area Technical Chamber

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

 

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Direct greenhouse gas (GHG) emissions (Scope 1)

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

 

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

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

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

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

Scope 1 biogenic emissions (t CO₂ equivalent)

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

Learn more under GRI 305-1.

Location-based gross GHG emissions

Scope 2 greenhouse gas emissions (t CO₂ equivalent)

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

 

Location-based emissions

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

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

 

Location-based gross GHG emissions

Scope 2 biogenic emissions (metric tonnes)

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

 

Learn more under GRI 305-2.

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

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

 

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

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

 

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

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

Scope 3 biogenic emissions (t CO₂ equivalent)

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

GHG emissions intensity

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

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

For more information, see GRI 305-4.

Carbon balance (tCO2e)

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

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

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

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

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

Risk management process

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

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

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

Methods Used to Manage Climate Change Risks or Opportunities

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

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

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

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

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

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

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

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

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

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).

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.

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.

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%

All operations were assessed for risks related to corruption, in a process conducted in accordance with the RGE Anti-Corruption Policy (internal document) and with Bracell Anti-Bribery and Anti-Corruption Policy (see Bracell Anti-Bribery and Anti-Corruption Policy for more about Bracell’s operational structure).

The Internal Audit, Compliance and Risk Management teams lead assessments of risks related to ethics and corruption. Identified risks are documented in internal procedures that form part of Bracell’s Integrated Management System (see GRI 2-13). These documents formalize our approach to identifying potential corruption-related risks, implementing preventive measures, and mitigating impacts.

Corruption risks, identified in the compliance risk matrix, are defined as corruption, bribery, fraud or similar acts committed by employees or third parties in Bracell’s name, by granting an unfair advantage or other acts defined as corruption in applicable legislation. The process of identifying and evaluating these risks was based on an assessment prepared by the Compliance department, following meetings with different departments and senior management. Interviews were carried out with the Audit, Human Resources, Enterprise Risk Management (ERM), Procurement and Communication teams, as well as operations teams with greater exposure to these risks.

The Compliance department also joined the process and risk design workshops led by the ERM department together with technical departments, assessing integrity risks.

The main causes identified include relationships with licensing, regulatory and oversight bodies, the absence of policies setting out procedures for contacting government officials, relationships with political actors and interaction with public officials by third parties acting on behalf of Bracell. Risks were also highlighted relating to the hiring of employees historically linked to the public sector or to government-owned companies, inadequate controls for the award of funding, presents, hospitality, donations and sponsorship, as well as the engagement of suppliers with a negative compliance recommendation in due diligence, but whose engagement was approved by senior management. Other issues identified include the lack of moral effect from monitoring and sanctions measures for non-compliance and the bad faith of employees or third parties who attempt to commit unlawful acts. The process of evaluating and managing corruption risk is continually being improved to strengthen Bracell’s culture of integrity and compliance.

Bracell also has a specific Whistleblowing Policy  for inaccuracies in financial reporting, aimed at all its own employees. This document sets out fundamental principles and procedures for reporting and investigating concerns. The policy presents the means whereby:

1. Employees raise concerns about possible inaccuracies in financial reports, internal controls or any other related matters.
2. A fair and independent investigation is carried out, with adequate follow-up to address each concern raised by employees.

Across all operations, whistleblowers are instructed to report potential inaccuracies to the Internal Audit departments. Reports can be made by telephone, email, snail mail, face-to-face meetings, and other means of communication.

Bracell has formal channels for submitting concerns and complaints (Fale Conosco and Contato Seguro — see more under GRI 2-25). Bracell formalizes its commitment to ethics and sustainability by means of a Code of Conduct and corporate policies that are public and disclosed to all stakeholders. Our policies are available on our website at Governance and Our Commitment.

Bracell’s Compliance team, which is part of the Legal department, is responsible for the direct management of corruption-related matters, although this issue is evaluated in relation to risks across all Bracell operations, in real time (see more under GRI 205-1).

Anti-corruption matters are managed across the organization through our Integrity Program. The program comprises a set of measures to reinforced anti-corruption policies, procedures and risk management. These initiatives ensure that Bracell’s operations are carried out ethically and transparently, in accordance with the law and company values.

The Integrity Program formalizes policies and documents such as the following:

• Human Rights Policy
• Anti-Corruption and Anti-Bribery Policy
• The Bracell Global Code of Conduct
• Policy on Preventing Money Laundering and Terrorist Financing
• Third-party Due Diligence Policy
• Donations and Sponsorship Procedure
• Supplier Onboarding and Management
• Donation Agreements
• Gifts and Hospitality Policy
• Institutional Relations Manual
• Conflict of Interests Policy

These documents are all widely communicated and accessible to employees, contractors and subcontractors.

As part of the Integrity Program, due diligence is carried out on suppliers and on beneficiaries of donations or sponsorships, all evaluated based on the program’s risk management matrix, which takes human rights aspects into account.

Integrity Program

Through our Integrity Program, we assess risks according to their likelihood and magnitude of impact, and:

– We create and/or update corporate policies and procedures to enhance control of operational processes in relation to these risks

– We carry out training and workshops with a focus on risk-management practices and control mechanisms

– We carry out communication initiatives and events that reinforce best practices in integrity, such as the disclosure of information bites on the subject and the launch of a guide with questions and answers about the Integrity Program and Code of Conduct.

The Integrity Program is evaluated semiannually based on a biennial management plan. Evaluation results are reported to the Compliance Committee, established on December 9, 2025 to mark International Anti-Corruption Day. The Committee is composed of the CEO, the Legal Director and the heads of Business Units (BUs) and strategic departments, such as Corporate Affairs, Human Resources, Audit and Procurement.

All Bracell employees are informed and trained on anti-corruption policies and the Code of Conduct. The same applies to the six members of the Sustainability Steering Committee—83% of whom are based in São Paulo and 17% in Bahia (learn more about each member under GRI 2-9).

All newly hired employees receive a copy of the Code of Conduct during induction. They also receive training on integrity, anti-bribery and anti-corruption. Other practices include the following:

• All members of the senior leadership team attend regular training on ethics and integrity, including training on the Code of Conduct
• Employees in senior positions or who are responsible for conducting supplier due diligence receive additional, personalized training on RGE’s business partner due diligence process
• All Bracell suppliers receive copies of our Procurement Code of Conduct and undergo due diligence and a review of documentation and evidence demonstrating compliance with local, national and international laws and regulations, certification requirements, technical standards and regulatory standards

Code of Conduct training is mandatory for all employees and delivered via our online training platform. We communicate mandatory training for contractors working on site in our operations.

Communication and training plans are reviewed annually. One of the mainstays of this initiative is Integrity Week, held annually in December, engaging the entire company in immersive activities designed to foster a culture of integrity. In 2025, the event took place from the 8th to the 12th, using a gamified format, with 492 participants enrolled. Organized into teams, participants developed immersive content that promoted a culture of integrity across all BUs. As a result of these communication efforts, 100% of employees were reached by Compliance-related communication and training throughout the year.

The Integrity Program’s training strategy is structured around four major pillars:

1. Onboarding: Briefing on the Code of Conduct and training on anti-corruption, harassment, bullying and reporting channels.
2. Anti-corruption and money laundering: Mandatory annual training delivered via the Workday platform.
3. Integrity Track: Agile and interactive modules covering the Code of Conduct, Conflict of Interest, Sexual Harassment, Bullying, Reporting Channels, Privacy and Information Security.
4. Targeted training: Initiatives focused on specific needs of different areas.

The percentage of employees trained is 53.81% for pulp operations in São Paulo, 87.74% for Bracell Papéis in the Southeast, 63.59% for pulp operations in Bahia, and 29.35% for Bracell Papéis operations in the Northeast.

Most untrained staff work in the field in forestry operations, without routine access to our training system. To cater for this work setting, we are developing specific training for this audience.

Total number and percentage of governance body members who have received communications and training on anti-corruption policies and procedures, by region

Total number and percentage of governance body members who have received communications and training on anti-corruption policies and procedures, by region

Bracell	2024		2025
	Informed	Trained	Informed	Trained
Total number of members in the year	5	5	6	6
Total number of members who have received communications/training	5	5	6	6
Percentage of members who have received communications/training (%)	100	100	100	100

Total number and percentage of employees who were informed and trained in anti-corruption policies and procedures, by region

Total number and percentage of employees who were informed and trained in anti-corruption policies and procedures, by region

2024	Bahia		São Paulo		Southeast Paper		Total
	Informed	Trained	Informed	Trained	Informed	Trained	Informed	Trained
Total workforce	1,969		6,865		654		9,488
Total number of employees who have received communications/training	1,969	985	6,865	2,541	654	357	9,488	7,772
Percentage of employees who have received communications/training (%)	100	40.64	100	37.01	100	54.59	100	40.29

Note 1: the data for Northeast Paper for 2024 is not available due to the unit’s ongoing integration into Bracell’s management systems, initiated during this cycle.

Note 2: the data for Bahia has been reviewed and adjusted for 2024 (GRI 2-4).

 

2025	Bahia		São Paulo		Southeast Paper		Northeast Paper		Total
	Informed	Trained	Informed	Trained	Informed	Trained	Informed	Trained	Informed	Trained
Total workforce	1,895		7,053		522		1,063		10,533
Total number of employees who have received communications/training	1,895	1,205	7,053	3,795	522	458	1,063	312	10,533	5,770
Percentage of employees who have received communications/training (%)	100	63.59	100	53.81	100	87.74	100	29.35	100	54.78

Number and percentage of employees who were informed and trained in anti-corruption policies and procedures, by employee category

Number and percentage of employees who were informed and trained in anti-corruption policies and procedures, by employee category

	2024		2025
	Bracell		Bahia		São Paulo		Southeast Paper		Northeast Paper		Bracell
	Informed	Trained	Informed	Trained	Informed	Trained	Informed	Trained	Informed	Trained	Informed	Trained
Executive Board
Total workforce	16	–	1		14		0		0		15
Total number of employees who have received communications/training	16	–	1	0	14	0	0	0	0	0	15	2
Percentage of employees who have received communications/training (%)	100%	–	100%	0	100%	14.29%	0	0	0	0	100%	13.30%
Senior Manager
Total workforce	43	–	13		30		4		0		47
Total number of employees who have received communications/training	43	–	13	10	30	20	4	3	0	0	47	33
Percentage of employees who have received communications/training (%)	100%	–	100%	76.92%	100%	66.67%	100%	75%	0	0	100%	70.21%
Middle Management
Total workforce	161	–	30		91		16		18		155
Total number of employees who have received communications/training	161	–	30	30	91	71	16	11	18	8	155	120
Percentage of employees who have received communications/training (%)	100%	–	100%	100%	100%	78.02%	100%	68.75%	100%	44.44%	100%	77.42%
Coordinator
Total workforce	258	–	74		146		8		22		250
Total number of employees who have received communications/training	258	–	74	67	146	125	8	8	22	20	250	220
Percentage of employees who have received communications/training (%)	100%	–	100%	90.54%	100%	85.62%	100%	100%	100%	90.91%	100%	88.00%
Specialist
Total workforce	213	–	66		146		13		6		231
Total number of employees who have received communications/training	213	–	66	58	146	125	13	13	6	5	231	201
Percentage of employees who have received communications/training (%)	100%	–	100%	87.88%	100%	85.62%	100%	100%	100%	83.33%	100%	87.01%
Technical/Supervisor
Total workforce	1,150	–	139		855		123		52		1,169
Total number of employees who have received communications/training	1,150	–	139	120	855	726	123	116	52	11	1.169	973
Percentage of employees who have received communications/training (%)	100%	–	100%	86.33%	100%	84.91	100%	94.31%	100%	21.15%	100%	83.23%
Administrative
Total workforce	1,541	–	340		853		77		181		1,451
Total number of employees who have received communications/training	1,541	–	340	309	853	768	77	70	181	61	1,451	1.208
Percentage of employees who have received communications/training (%)	100%	–	100%	90.88%	100%	90.04%	100%	90.91%	100%	33.70%	100%	83.25%
Operational
Total workforce	6,815	–	1,218		4,869		281		784		7,152
Total number of employees who have received communications/training	6,815	–	1,218	597	4,869	1,912	281	237	784	207	7,152	2,953
Percentage of employees who have received communications/training (%)	100%	–	100%	49.01%	100%	39.27%	100%	84.34%	100%	26.40%	100%	41.29%
Trainee
Total workforce	23	–	14		49		0		0		63
Total number of employees who have received communications/training	23	–	14	14	49	46	0	0	0	0	63	60
Percentage of employees who have received communications/training (%)	100%	–	100%	100%	100%	93.88	0	0	0	0	100%	95.24%
Total
Total workforce	10,220	–	1,895		7,053		522		1,063		10,533
Total number of employees who have received communications/training	10,220	–	1,895	1,205	7,053	3,795	522	458	1,063	312	10,533	5,770
Percentage of employees who have received communications/training (%)	100%	–	100%	63.59%	100%	53.81%	100%	87.74%	100%	29.35%	100%	54.78%
Note 1: For 2024, the percentage of trained employees was 37% for the pulp operations in São Paulo, 55% for Bracell Papéis operations in the Southeast, and 40% for the pulp operations in Bahia.
Note 2: For 2025, the Anti‑Corruption indicators presented reflect the performance of the Anti‑Corruption and Anti‑Money Laundering program. For the Papéis Nordeste unit, due to the lack of access to the training platform, the 2025 results were consolidated based on the onboarding records of employees hired during the year, which also cover policies and procedures related to anti‑corruption practices.
Note 3: Most of the employees who were not trained work in field operations, within the forestry area, without routine access to the Company’s training system. To meet operational needs, we are developing a specific action plan for this group.
Note 4: Beginning in 2025, data disclosure will be presented with segregation by unit. This change aims to increase the level of detail provided, enhancing transparency and improving data visibility. (GRI 2-4).

Number and percentage of business partners who have received communications and training on anti-corruption policies and procedures:

Number and percentage of business partners who have received communications and training on anti-corruption policies and procedures:

	2024		2025
	Informed	Trained	Informed	Trained
Total number of business partners	1,914	1,914	1,816	1,816
Total number of business partners that have received communication/training	1,914	1,914	1,816	1,816
Percentage of business partners who received communication/training (%)	100	100	100	100

Note: Bracell provides training to all third‑party workers who operate directly in its activities. Bracell’s suppliers also receive the Purchasing Code of Ethics (CoPE) and undergo due diligence and document verification processes.

Confirmed incidents of corruption and actions taken

	2023	2024	2025
Total number of confirmed incidents of corruption	2	4	22
Nature of reported incidents	Fraud	Bribery and kickbacks; fraud	Fraud; Bribery of public officials and third parties
Total number of confirmed incidents in which employees were dismissed or disciplined for corruption	1	4	19
Total number of confirmed incidents where contracts with business partners were terminated or not renewed due to violations related to corruption	1	0	0

Note 1: in 2022, a case of fraud was reported relating to a forestry module, which resulted in an internal audit. That audit culminated in the dismissal of the employees concerned. Although the incident took place in 2022, it was reported for 2023, the year in which there was also another case of fraud, this time relating to travel reimbursements, which led to the dismissal of one employee. In 2023, we recorded no cases of public corruption.

Note 2: for the four confirmed cases of corruption in 2024, the employees involved were duly disciplined or dismissed. The employee categories affected include supervision, coordination and operational. Altogether, 29 employees were either disciplined or dismissed. In one case concerning reimbursement of moving expenses, 26 employees were dismissed. In the other cases, there was only one dismissal per case.

Note 3: The increase in the number of reports in 2025 reflects the maturity of the Internal Ombudsman Office following the implementation of an external, specialized reporting channel, which ensures greater reliability for whistleblowers. Of the 22 cases recorded (16 in São Paulo and 6 in Bahia), disciplinary measures or terminations were applied to 16 professionals in São Paulo and three in Bahia. In Bahia, the remaining cases are either ongoing or did not involve employees.

Note 4: in 2025, there were no cases of legal proceedings.

Bracell does not have any pending or concluded legal actions in 2025 related to anti-competitive behavior, anti-trust, and monopoly practices.

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

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

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

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

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

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

Reduction of natural gas consumption

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

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

 

Historical energy consumption within the organization (GJ)

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

Electricity generated (GJ)

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

 

Non-renewable energy consumption (GJ)

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

 

Electricity sold (GJ)

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

Energy Sold (GJ) 

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

 

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

Energy consumed within the organization (GJ) 2025

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

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

Energy consumption outside the organization (GJ)

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

Energy intensity (GJ/adt)¹

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

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

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)

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.

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.

 

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

 

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