Assessments of biodiversity risks take account of Bracell’s business model and operations. Controlled wood suppliers have been deemed the most sensitive in terms of ecological impacts as they are not directly controlled by Bracell. In 2023, around 30% of the pulpwood used in our production process derived from controlled wood sources, while 70% were sourced from areas directly managed by Bracell.

All sourced pulpwood undergoes due diligence in which we identify key environmental and social risks in order to eliminate any possibility of sourcing pulpwood from controversial sources. We perform desktop and field assessments and inspections on aspects such as spill containment practices, compliant waste disposal, non-use of burning for clearing, properly proportioned protected areas and legal reserves, among other operational aspects.

Where any nonconformities are identified, an action plan is developed and implemented, and if they persist, the supplier is blocked from further shipments to the plant until the nonconformity is addressed. In addition, landowners commit to comply with the requirements of this and other applicable laws under specific clauses in their contracts with Bracell.

Bracell’s Forest Management System (FMS), implemented as part of our e-Forest project, integrates the end-to-end forestry management process including property registration and forestry services, harvesting, and pulpwood haulage. This system contains georeferenced data on pulpwood suppliers, ensuring 100% of the pulpwood we source from our production process is traceable to both the farm and field level.

All controlled wood also undergoes a time of conversion assessment as part of the procurement process. Bracell has considered deforestation to be conversion of native areas since July 2008, in accordance with the Brazilian Forest Code (Law no. 12,651/2012). In addition, wood suppliers commit to comply with the requirements of this and other applicable laws under specific clauses in their contracts with Bracell.

In 2023, around 30% of the pulpwood used in our production process derived from controlled wood sources, while 70% were sourced from certified land directly managed by Bracell. In 2023, our São Paulo and Bahia mills sourced pulpwood from 87 suppliers. Of these, 100% were audited by the Bracell team.

Bracell does not source pulpwood from controversial sources.