GRI 2-6 Activities, value chain and other business relationships

Who we are

Welcome to Bracell, a Brazilian-based, world-leading producer of dissolving pulp and a member of the RGE group of companies — a conglomerate of world-class businesses in the resource-based manufacturing industry.

From our inaugural operations in Bahia, Northeastern Brazil, established in 2003, we have since expanded into São Paulo, in 2018. Our forestry operations are located in these two states as well as in Sergipe. Our operations in Brazil employ a workforce of 7,391 people.

Mission

Improving lives by developing resources sustainably.

Vision

To be a globally leading producer of dissolving pulp, with the best management fully committed to the sustainable use of natural resources; our aim is to consistently create value for our Community, Country, Climate, Customers and the Company.

Core Values

We believe that in order to fulfill our mission and achieve our vision of the future, leaders and employees must always comply with T.O.P.I.C.C. values.

T
We are aligned by our common purpose and work together as a complementary Team.

O
We take Ownership to achieve outstanding results and seek value at all times.

P
We develop our People to grow with us.

I
We act with Integrity at all times.

C
We understand our Customers and deliver best value to them.

C
We act with zero complacency and always strive for Continuous improvement.

Products and markets

Product applications

Our products are made from eucalyptus pulp, a natural, biodegradable polymer produced from pulpwood sourced from certified eucalyptus plantations. Bracell’s pulp products are used in dozens of items, such as:

Kraft bleached eucalyptus pulp

Printing and writing papers
Tissue paper (toilet paper, paper towels and napkins)
Packaging paper
Specialty papers such as filters, self-adhesive papers, adhesive tape and wallpaper

Rayon-grade dissolving pulp

Viscose and Lyocell fibers used in fabrics and nonwovens
Viscose filaments used in delicate fabrics such as women’s underwear
Wet wipes
Cosmetic masks
Cellophane packaging films
Viscose pads for household and industrial cleaning applications

Specialty-grade pulp

Cellulose acetate flakes (cigarette filters, textile filament yarns and fibers for nonwovens)
Pharmaceutical and food products (produced from microcrystalline cellulose)
Printing inks, specialty inks, enamels and cosmetics (produced from nitrocellulose)
Industrial filament used to produce tire reinforcement
Cellulose ethers and artificial sausage casings (specialty applications)

Tissue & Personal care

Toilet paper
Paper towels
Baby diapers

Bracell Papéis

Reflecting RGE’s commitment to continued investment in Brazil, in 2023 Bracell completed the acquisition of OL Papéis, a baby diaper and tissue paper manufacturer with a 15-year presence in the Northeast. Tissue paper is a soft, highly absorbent type of paper used to produce toilet paper, paper towels, facial tissues, napkins and baby diapers.

Our new acquisition, now renamed Bracell Papéis, operates two mills in Bahia—in the municipalities of Feira de Santana and São Gonçalo dos Campos—and one in Pernambuco, in the city of Pombos and one mill in São Paulo, in Lençóis Paulista city, built from 2023 to 2024, to be commissioned in the third quarter of 2024. It is the second largest manufacturer of tissue paper in Brazil’s Northeast region, with a portfolio that includes five toilet paper brands, five paper towel and napkin brands, and one baby diaper brand.

Innovation and employee training

In 2023, Bracell Papéis prioritized product innovation to reduce the use of raw materials and process loss on pulp production process, as well as training operational teams.

Our operations

Mills

Pulp

1 in Camaçari (state of Bahia)
1 in Lençóis Paulista (state of São Paulo)

Tissue

1 in Feira de Santana (state of Bahia)
1 in Pombos (state of Pernambuco)
1 in Lençóis Paulista (state of São Paulo)

Offices

1 in Camaçari (state of Bahia)
1 in São Paulo (state of São Paulo)
1 in Alagoinhas (state of Bahia)
1 in Lençóis Paulista (state of São Paulo)

Total production capacity

3 million metric tons of kraft pulp per year; or
2 million metric tons of dissolving pulp per year.

Planted eucalyptus forests*

Bracell has forestry operations in 159 municipalities across different Brazilian states GRI 304-1

115 municipalities in the state of São Paulo
41 municipalities in the state of Bahia
3 municipalities in the state of Sergipe

* In 2022, Bracell established forestry operations in Mato Grosso do Sul and disclosed the operations performance in the 2022 Sustainability Report. Since 2023, Mato Grosso do Sul operations are part of MS Florestal, also a member of the RGE group of companies. Because they are no longer owned by Bracell, the data published in 2022 about operations in Mato Grosso do Sul is no longer included within the scope of this report.

Commercial hubs

Asia
EMEA (Europe, Middle East and Africa)
United States

Specialty pulp distribution centers

United States
Europe
China

Main markets served in 2023

Pulp produced in Bahia

53% – Asia
41% – United States
4% – Europe
2% – Other

Pulp produced in São Paulo

85% – Asia
6% – Europe
6% – Brazil domestic market
3% – Other

Mills

Our industrial sites use processes and technologies that create positive environmental value. Our two flexible lines in Lençóis Paulista (SP), operational since August 2021, were developed in line with the Best Available Techniques (BAT) Reference Document for the Production of Pulp, Paper, and Board (explore some of our mill’s sustainable production differentiators here).

In addition, Bracell has undertaken commitments to reducing water consumption, minimizing landfilling of industrial waste, and enhancing chemical recoveries (learn more about Bracell 2030 targets on GRI 2-22 content). Water management, effluent treatment, and waste handling are also focal areas for Bracell. Learn about our related management practices on GRI 303 and 306 content .

The two new flexible lines at the São Paulo site produce over 80% of Bracell pulp every year. The mill facilities have the following sustainability attributes:

100% renewably sourced electricity

Fossil fuel-free operations

The energy generated is sufficient to meet the mill’s needs, with a surplus of between 150MW to 180MW sold through the national grid. This green, high-quality electricity can supply power to 750,000 homes or around 3 million people.

The lowest air emissions in the industry, and no perceived odors

The lowest water consumption rates in the industry in Brazil

Tertiary effluent treatment

Learn more about the positive impacts from our operations on ESG 2023 highlights.

Bracell featured on Discovery Chanel

A documentary about our Lençóis Paulista facility, titled “Engineering Challenges: The Factory of the Future,” released in November 2023, is available for streaming on the Discovery+ platform.

Forests

Our Sustainable Forestry Model aims to minimize the impact on the environment, using the best practices for conserving soil and water resources and protecting biodiversity, which means Bracell does not convert areas of native vegetation into eucalyptus plantations. We have been committed to zero deforestation since its inception, a commitment that is formalized in our Sustainability Policy.

Bracell’s forestry management practices include:

Cultivating eucalyptus in forest mosaics, interspersing eucalyptus plantation areas with native forests (including Atlantic Forest, Cerrado, and Caatinga formations), thereby enhancing biodiversity, ecosystem services, and scenic landscapes;
Retaining post-harvest residue, such as bark, branches, and leaves. This reduces reliance on chemical fertilizers by adding organic matter into the soil;
Integrated Pest and Disease Management (IPDM). Using genetic resistance and natural predators helps to maintain environmental balance, with chemical interventions left as a last resort;
Conserving protected areas and biodiversity. Bracell has no operations in Protected Areas or Legal Reserves or on peatlands (read more in Biodiversity, on GRI 304 and GRI 101);
Planting in already anthropized areas (pasture and/or degraded areas).

Cultivate Eucalyptus

As an incentive for sustainable forestry operations, we have introduced a program, called Cultivate Eucalyptus, that provides technical support to partner growers.

Forestry Research & Development

Bracell continually invests in forestry R&D. We work on three major fronts to ensure a sustainable supply of pulpwood in the medium and long term, and ultimately the sustainability of the business.

Classical genetic improvement

Bracell is committed to not using genetically modified organisms (GMO), developing its eucalyptus clones through classical genetic improvement, focused on generation, evaluation and selection of improved clones through successive cycles. Genetic improvement also focuses on developing techniques to improve the cloning species.

Forestry and forest management

We work to continuously improve our processes related to climate zoning (learn more on GRI 305); soil conservation, preparation and fertilization; and sustainable management of pests, diseases, and weeds.

Forestry extension and technology transfer

Technical assistance and technology transfer for forestry operations.

Industrial Research &Development

We conduct research and studies to optimize our industrial operations, within four main areas:

Wood developments

Evaluate pulpwood quality at source plantations and potential impacts on the production process and product quality;
Support research and development in the forestry area to assess the quality of wood associated with the development of new clones and forestry practices.

Process development

Continuously improve production processes, providing competitiveness gains through solutions focused on quality, productivity and cost;
Identify best available technologies for our laboratories and mills.

Product development

Identify new product opportunities, meeting the needs of our customers from different segments.

Biorefineries and the Environment

Develop biorefinery projects for valuing by-products; and
Support research and development focused on environmental and natural resource use solutions, contributing to Bracell 2030 targets accomplishment.

Distribution logistics

Bracell operates its own truck fleet to transport pulp from the Lençóis Paulista (SP) site to Pederneiras (SP) where is situated Bracell intermodal port for pulp shipping to the port of Santos. We have also started trials using electric trucks for this shipping route (read more on GRI 305 content).

Transportation from the Lençóis Paulista Industrial Park to the Port of Santos

Kraft pulp produced at Lençóis Paulista site is shipped via truck to a truck-train terminal in Pederneiras (SP), with a portion being directed to domestic Bracell owns 100% of the truck fleet.
From the truck-train terminal, pulp destined for export is transported by train to the Port of Santos. The railcars are Bracell-owned, while the locomotives are owned by the railway concession operator;
At the Port of Santos, Bracell operates three terminals— directly managing two while the third is operated by a third-party company. Most of our pulp is transported by breakbulk vessels, equipped with specialized holds for product loading. Container transport is also used.

Transportation from Camaçari Industrial Hub to the Port of Salvador

Dissolving pulp and specialty pulp are shipped from the Camaçari Industrial Hub (BA) by truck, through outsourced fleet, to the Port of Salvador (BA).
From the Port of Salvador, the pulp goes to customers abroad.

At the Port of Santos, the storage and shipping operation of our products is 100% owned by Bracell. In 2023, we started the new warehouse operations in Bahia site, with the total capacity of 27,000 metric tons.

Certifications

ISO 9001:2015 and ISO 14001:2015

Bracell’s mill operations are certified to ISO 9001:2015 and ISO 14001:2015 for compliance with quality and environmental management system requirements. Bracell’s eucalyptus plantations in Bahia additionally hold ISO 14001 certification.

ISEGA and IQTC

Bracell’s Bahia and São Paulo mill additionally has certification attesting that the pulp it produces is compliant with requirements for food contact. This certification, conferred by the Isega Institute in accordance with standards issued by the German Federal Institute for Risk Assessment and by the US Food and Drug Administration (FDA), underscores our commitment to quality and safety. In addition, the São Paulo mill has a certificate from the Guangzhou Customs District Technology Center (IQTC), in compliance with Chinese regulation GB 4806-8, which also certifies that Bracell pulp is compliant with requirements for food contact.

Cerflor/PEFC

Our forestry operations are certified by the Brazilian Forestry Certification Program (Cerflor/PEFC) for responsible pulpwood management practices that are environmentally sound, economically viable, and socially beneficial. Our certification was successfully renewed in 2023. Bahia forestry operations are also ISO 14001 certified.

Halal and Kosher

Our operations in Bahia are audited for Halal certification, providing assurance that our manufacturing process complies with Islamic ethics, moral, and legal standards, and for Kosher certification, providing assurance that our process quality control and safety comply with Jewish dietary laws.

Customs-Trade Partnership Against Terrorism (C-TPAT)

In 2023, our Bahia logistics operations underwent a review by a US audit firm on anti-terrorism procedures, a requirement as part of the Customs-Trade Partnership Against Terrorism (C-TPAT), a voluntary supply-chain security program led by U.S. Customs and Border Protection (CBP). This proactive initiative, the first of its kind at Bracell, addresses sabotage risks such as container contamination.

Operations in São Paulo:
ISO 9001:2015, ISO 14001:2015, ISEGA and Cerflor/PEFC certifications.

Operations in Bahia:
ISO 9001:2015, ISO 14001:2015, Cerflor/PEFC, Halal, Kosher and ISEGA (the latter attests that Bracell’s pulp meets food contact requirements) certification.

See the relevant certificates here.

Value Chain

Our founder’s 5Cs philosophy guides our actions: everything we do must be good for the community, country, climate and customers, and only then will it be good for the company.

Our business model contributes to generating social and environmental value within and beyond our operations. To achieve this, we strive to make a difference in every detail. In 2023, with the launch of Bracell 2030, we aligned our strategy with our long-term social and environmental targets and the UN Sustainable Development Goal (SDGs).

2023 at a glance: Our operations generate positive impacts on climate, nature, people and communities

Governance

Launched Bracell 2030, a corporate sustainability agenda that sets ambitious long-term targets focused on climate, nature and people, directly connected to our business and operations;
Enhanced sustainability governance —progress on targets is tracked via KPIs that are monitored by Bracell Sustainability Steering Committee;
Updated our Sustainability Policy and published a Human Rights Policy, Pulpwood and Fiber Sourcing Policy, and Anti-Corruption and Anti-Bribery Policy.

Environmental

-1,286,441 tCO₂ removed from the atmosphere in 2023, through areas of native forests set aside for conservation;
5.14 m³/ADT (Air Dry Tonne) water consumption intensity at our Bahia mill and 2.34 m³/ADT at our São Paulo mill;
95% of water originally sourced from the Tietê River is treated and returned to the river with a higher quality level than at the source;
92% of protected areas as part of the One-to-One Program;
9,387,409.61 GJ of green electricity generated— 3,506,216.24 GJ of electricity injected into the National Grid.
Carbon monitoring in planted forests – Bracell, represented by the R&D Department, is part of the Eucflux-IPEF Cooperative program, which monitors carbon flux and water in eucalyptus plantations. The flow tower with the equipment that monitors these components is situated in an eucalyptus plantation area, part of Bracell operations, in the municipality of Itatinga (SP). The Program is led by IPEF (Institute of Forestry Research and Studies) and CIRAD (French Agricultural Research Centre for International Development), and was started in 2007. It has several affiliated companies from the pulp sector, including Bracell, and representative institutions from academia, such as the Federal University of Lavras, UNESP (Paulista State University) and the University of São Paulo (Esalq).

Social

26,4% women in leadership positions (coordinators, managers and senior managers);
Diversity and inclusion – we strengthened our diversity groups focused on women, people with disabilities, race and LGBTQIAPN+ and advanced initiatives to foster diversity and inclusion in our operations;
Suppliers situated on our operations are screened against social and environmental criteria;
+R$ 9 million invested in Education, Empowerment and Enhancement programs as part of Bracell Social;
+164,000 people benefited

ESG seals

In 2023, Bracell garnered important accolades for its sustainability performance:

Nordic Swan and EU Ecolabel: awarded to our São Paulo operations, these labels denote products meeting rigorous environmental performance requirements set by the European Union, including reduced environmental impact throughout the product lifecycle. This label has been awarded specifically to Bracell’s eucalyptus Kraft pulp.

GHG Protocol Gold reporting status: this distinction 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). Bracell is a member of the PBGHG (Brazilian GHG Protocol Program) and discloses the company GHG Inventory data in the Public Emissions Registry. The PBGHG aims to promote the recognition of participating organizations for the voluntary transparency initiative, among stakeholders who are increasingly attentive to corporate socio-environmental responsibility.

Reporting Matters: Bracell was awarded the 2023 Reporting Matters Mark by the Brazilian Business Council for Sustainable Development (CEBDS). Our Annual Sustainability Report was awarded a quality score of 65%, with special mention given to the report’s clarity of information about our value chain, KPIs addressing all material topics, and a clear tone from the top around our ESG agenda.

GRI 2-7 Employees

In 2023, 80% of our workforce were men and 20% were women. In 2021, the ratio was 81% men to 19% women. In 2022, 80% men to 80%. For details on the percentage of women in middle and senior management roles at Bracell, refer to disclosure GRI 405.

Total workforce by region and gender
	2021			2022			2023
	Men	Women	Total	Men	Women	Total	Men	Women	Total
Bahia	1,235	356	1,591	1,342	436	1,778	1,434	470	1,904
São Paulo	2,592	523	3,115	3,412	715	4,127	4,501	986	5,487
Total by gender	3,827	879	4,706	4,754	1,151	5,905	5,935	1,456	7,391

Note: the total workforce in 2022 differs from the figure reported in the 2022 Sustainability Report as it excludes employees in our operations in Mato Grosso do Sul (a total of 392 employees; 310 men and 82 women). In 2023, our operations in Mato Grosso do Sul were merged into MS Florestal, an RGE group company, and therefore ceased to be part of Bracell’s operations.

Workforce by gender, location, employment type and contract type
	2021			2022			2023
CONTRACT TYPE	Men	Women	Total	Men	Women	Total	Men	Women	Total
Number of permanent employees	2,627	805	3,432	4,785	1153	5,938	5,897	1421	7,318
Number of temporary employees	39	22	61	122	80	202	38	35	73
Non-guaranteed hours employees¹	169	35	204	1,769	146	1,915	4,683	1033	5,716
Full-time employees	3,670	862	4,532	4,653	1133	5,786	5,735	1387	7,122
Part-time employees ²	0	0	0	72	58	130	17	23	40
Note: Permanent employees are non-temporary employees whose employment contracts are governed by the Brazilian Consolidated Labor Regulations, working either full time, part time or with non-guaranteed hours.
¹ Employees in specialist, coordinator, middle management and senior management positions;
² Young apprentices.

GRI 2-8 Workers who are not employees

BY REGION
2021				2022			2023
Gender	Bahia	São Paulo	Bracell	Bahia	São Paulo	Bracell	Bahia	São Paulo	Bracell
Men	3,414	5,946	9,360	3,025	unavailable	3,025	2,671	12,056	14,727
Women	130	494	624	138	unavailable	138	138	1,182	1,320
Total	3,544	6,440	9,984	3,163	12,434	15,597	2,809	13,238	16,047

Note 1: due to a limitation in the system used to collect data on contractors, Bracell cannot provide a breakdown by gender of contractors working in our operations in São Paulo. The system used in 2023 will support breakdowns by gender. Data on contractors in the Tissue project are managed by a third-party firm.

GRI 3-3 Approach to managing the material topic valuing our human capital

Valuing our human capital is a material topic for Bracell encompassing initiatives and programs to develop and recognize our human capital (employees).

In 2023, Bracell announced its set of long-term sustainability targets and commitments titled “Bracell 2030”, which includes specific Empowering Lives targets:

Promoting equal opportunities for women

Fostering an inclusive work environment for diversity groups

Additionally, Bracell’s strategic priorities include attracting and retaining talent, through initiatives such as Trainee, Internship, and Young Apprentice programs. We also invest in the development and training of our employees and in leadership development (learn more in disclosure GRI 404-2).

Core values

Bracell operates in accordance with a set of core values established by RGE. It is our Group’s belief that in order to fulfill our mission and achieve our vision for the future, we must adhere to a set of core values known as T.O.P.I.C.C.