Bracell is a member of the RGE group. RGE’s governance structure includes an Executive Management Board comprising key executives who advise on and validate the Group’s key performance indicators. Each Group company has its own CEO and management team. Depending on each organization’s strategic needs, members of the Executive Management Board may be appointed to provide support and oversight of specific businesses.

Key executives in various businesses meet with the RGE Executive Management Board on a weekly basis to report on business performance and other corporate matters.

At Bracell, the Sustainability Steering Committee is responsible for making strategic sustainability decisions and tracking social and environmental performance.

Members of Bracell’s Sustainability Steering Committee team are selected based on the extent to which their expertise, skills, competencies and technical knowledge can contribute to creating positive value for the business and for the regions where we operate. The performance of members of the Sustainability Steering Committee is assessed annually, both individually and against performance indicators for the broader RGE group, core organizational values, leadership skills, and adherence to annual planning for the position. All members receive feedback focused on continuous improvement (read more in disclosure GRI 2-18).

Composition of the Sustainability Steering Committee

President: Praveen Singhavi¹

Chief Operating Officer (COO): Clinton Clive Van Vught

Head of Forestry operations: Mauro Quirino

Managing Director, Bahia: Guilherme Araújo

Executive Vice-President: Luiz Carlos Cavalcanti Dutra Junior

Bracell Papéis Managing Director: Eduardo Aron

Bracell does not have any independent or advisory members on its governance bodies or committees. The Sustainability Steering Committee comprises six men, all holding executive positions.

Bracell’s senior executives have permanent roles, although the composition of the board may change according to business strategy.

¹ Praveen Singhavi was appointed president of Bracell in January 2023. For more than 15 years (April 2007 January 2023), he previously served as president of APRIL, an RGE group company and one of the world’s largest and most advanced producers of fiber, pulp and paper, with operations in the province of Riau, Sumatra, Indonesia (read more in Disclosure GRI 2-17).

Members of Bracell’s leadership team are selected based on the extent to which their expertise, skills, competencies and technical knowledge can contribute to creating positive value for the business and for the regions where we operate (learn more in disclosures GRI 2-17 and 2-18).

Bracell’s Vice President for Sustainability is responsible for managing environmental, social and governance risks. Environmental team leadership reports directly to the Sustainability Steering Committee and the president on environmental projects, initiatives and key performance indicators, and progress toward our Bracell 2030 targets. The Vice President for Sustainability is also the spokesperson for our sustainability agenda, liaising with strategic and priority stakeholders such as internal leaders, customers, trade associations and financial institutions.

Bracell’s Institutional Relations, Community Relationship and Corporate Social Responsibility Director is responsible for engaging with external stakeholders, such as local communities, governments and civil society organizations, to address the needs and concerns of underrepresented social groups, preserve the Company’s social license to operate, and oversee projects within Bracell Social.

Praveen Singhavi was appointed president of Bracell in January 2023.  For more than 15 years (April 2007 January 2023), he previously served as president of APRIL, an RGE group company and one of the world’s largest and most advanced producers of fiber, pulp and paper, with operations in the province of Riau, Sumatra, Indonesia.

Bracell is a member of the RGE group of companies and, as a privately-held entity, our governance policies are aligned with RGE group standards and practices (learn more in GRI 2-9).

The Sustainability Steering Committee is responsible for developing and validating Bracell’s sustainability strategy.

In 2023, Bracell’s Sustainability Steering Committee team participated directly in developing the Bracell 2030 targets and baselines related to climate change, biodiversity and landscapes, environmental stewardship and women empowerment (learn more in GRI 2-22). The Sustainability Steering Committee additionally participates in formulating and validating Bracell’s materiality matrix (see Bracell’s Sustainability Journey in GRI 3-1).

The Sustainability Steering Committee also reviews the findings from all independent audits, annual assessments on compliance with certification standards such as Cerflor/PEFC, ISO 9001 and ISO 14001, and six-monthly independent audits on compliance with IFC standards and the Equator Principles.

In addition, it follows up on the implementation of audit recommendations and measures to ensure compliance. The Sustainability Steering Committee actively participates in discussions and decision-making on strategic social and environmental issues to assess risks and opportunities (learn more in GRI 2-25).

 

Risk management

Bracell’s governance and risk management practices, KPIs and efforts for continuous improvement align with applicable laws, regulations and policies.

All applicable policies, protocols, regulations and standards are embedded in internal procedures outlining processes and guidelines on managing social, environmental and governance issues. These documents are controlled via an Integrated Management System (IMS) that all employees are familiar with.

Besides implementing operations management practices that conform to certification requirements, regulatory standards, and applicable laws and regulations, we are working toward a set of ambitious targets as part of our sustainability vision, Bracell 2030. These targets have been set and are tracked by Bracell’s senior leadership team and are regularly reported on to the Sustainability Steering Committee.

All leaders, employees, contractors and suppliers are required to comply with these standards. To ensure these requirements and targets are effectively met, Bracell provides regular training and consistently monitors and assesses performance against requirements.

Each year we provide training on anti-corruption guidelines, consistent with the Bracell Code of Conduct, as part of our annual training program. In addition, 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 initiatives include the following:

• All members of the senior leadership team attend regular training on ethics and integrity, including training on the Code of Conduct;
• All employees are trained and informed about Bracell’s values, commitments and policies. They also attend training on department-specific technical and operational procedures, following a role-specific training matrix as part of Bracell’s Integrated Management System (IMS);
• Employees in senior positions or who are responsible for conducting business partner due diligence receive additional, personalized training on RGE’s Business Partner due diligence process; and
• Bracell’s internal standards and commitments are also extended to suppliers and contractors. Compliance with these standards is assessed during screening (suppliers are required to provide documentation and certificates appropriate to their scope of work), onboarding and as part of contract management. 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, regulatory standards and Bracell corporate policies.
• Learn more about training and capacity building at Bracell in GRI 404-2.

Certifications

The principles and standards governing our forestry and mill operations support our continued eligibility for certification to international standards. To retain certification, we conduct annual audits to verify compliance and implement ongoing improvements, overseen by Bracell’s senior leadership.

Bracell’s mill operations are certified to ISO 9001:2015 and ISO 14001:2015. These certifications attest that our operations are compliant with the quality and environmental requirements stipulated by these standards, including those on identifying environmental aspects, impacts, and risks and implementing preventive and mitigation measures. They also ensure that all documented information relating to our operations is kept up to date and controlled, including procedures, policies, and other standards governing our day-to-day operations. Our mill operations also have chain-of-custody certification from the Brazilian Forest Certification Program (Cerflor/PEFC).

Bracell’s Bahia mill additionally has certification attesting that the pulp it produces is compliant with international requirements for food packaging. This certification, conferred by the Isega Institute in accordance with standards issued by the German Federal Institute for Risk Assessment and by the US tree Food and Drug Administration (FDA), underscores our commitment to quality and safety.

Our forestry operations are certified by Cerflor/PEFC for responsible pulpwood management practices that are environmentally sound, economically viable, and socially beneficial. In 2023, our São Paulo and Bahia forestry operations were recertified by Cerflor. Bracell’s forestry operations in Bahia additionally hold ISO 14001:2015 certification.

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.

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 (which attests that the pulp we produce is compliant with international requirements on food packaging) and Cerflor/PEFC.

Operations in Bahia

ISO 9001:2015, ISO 14001:2015, Cerflor/PEFC, C-TPAT, Halal, Kosher and Isega (which attests that the pulp we produce is compliant with international requirements on food packaging).

Our corporate governance model is designed to ensure we uphold internationally recognized standards of ethical conduct as expected by organizations, customers, business partners, and employees. These guidelines are articulated in our T.O.P.I.C.C. Core Values (learn more in GRI 2-1) and in the Bracell Code of Conduct, which provides clear guidance on the conduct expected of employees and on creating long-term value for our communities, country, climate, customers, shareholders, and other stakeholders.

Additional guidance on ethical and transparent conduct for employees and contractors is provided in our:

• Anti-Corruption and Anti-Bribery Policy;
• Procurement Code of Ethics;
• Bracell Code of Conduct;
• Sustainability Policy;
• Human Rights Policy.

The leadership team implements Bracell’s annual operational plan in accordance with the management guidelines contained in certification standards. This includes developing plans to mitigate and prevent social and environmental risks and impacts. The approach to identifying and monitoring impacts is a topic addressed in Bracell’s Sustainability Policy.

Our governance structure for managing impacts is additionally described in disclosures GRI 2-9 and GRI 2-10.

Sustainability Governance

In addition to the Sustainability Steering Committee, Bracell also has a standing Crisis Committee. Both committees play a role in identifying opportunities for action and advising on measures to prevent and mitigate actual and potential business impacts in the short, medium, and long term.

Sustainability Steering Committee executives receive supporting advice from Bracell’s leadership, which has individual expertise in environmental, social, and governance (ESG) management and oversees ESG matters within the company. For instance, the leadership team led the development of the Bracell 2030 targets, with progress against those targets tracked by the Sustainability Steering Committee.

This oversight includes managing social and environmental risks and opportunities within our operations.

The Crisis Committee, in turn, deals with unexpected events and emergencies with the potential to impact our stakeholders, operations, and reputation. This Committee uses management workflows consistent with the nature of the emergency and local needs. In our Bahia operations, it has two organizational levels depending on how the crisis escalates, as outlined in our Crisis Prevention and Management Manual. In our São Paulo operations, the crisis committee is composed of key leadership personnel as relevant to the crisis situation (read more in disclosure GRI 2-17 ).

Risk management and due diligence

Consistent with the precautionary principle, Bracell’s approach to risk management is focused on protecting the environment and preventing adverse impacts on ecosystems in the locations where we operate. We have dedicated programs and key performance indicators addressing environmental performance, and are committed to creating positive environmental value in the short, medium and long term. These programs encompass due diligence, supplier screening, and ongoing monitoring of supplier performance.

We manage our operations in accordance with the guidelines outlined within our Risk Management Program (RMP), which has been developed in line with internationally recognized best practices. The Program—which has the precautionary principle and prevention of adverse impacts on the ecosystems and communities where we operate are two core pillars—covers information management, training, equipment, use of technology, and emergency response.

As part of the Program, we identify and assess the primary impacts, risks, and opportunities associated with our operations and determine the relative importance of different factors for the sustainability of the business. Based on this assessment, we continually monitor potential risks to our operations, neighboring communities, and the environment. The Program also includes proactive plans for mitigating impacts—either neutralizing or minimizing them to the extent possible. Through the program, we strive to create positive socio-environmental value over both the short and long term.

At Bracell, we:

• regularly update our identified aspects and impacts, in an exercise involving all our operations, in order to identify, prevent and mitigate any and all negative impacts;
• conduct assessments to identify and map out social and environmental risks before initiating any operation;
• assess products on health, safety and environmental risks; and
• regularly monitor the impacts from our operations and activities, and implement immediate mitigation measures focused on minimizing impacts.

Controls and prevention

Bracell’s Internal Audit department audits our processes on an ongoing basis. Audits are conducted in accordance with guidelines outlined in Standard Operating Procedures (SOP) to assess compliance with internal policies, procedures, applicable laws and regulations, regulatory standards, certification requirements, and international protocols.

Processes are mapped out, and a risk and control matrix is developed as part of the risk assessment process. Identified issues are reported to Bracell’s senior leadership team and the RGE group. Critical risks are followed up monthly.

Bracell also responds to questionnaires from banks pursuant to Resolution BCB No. 151, of Banco Central do Brasil (October 6, 2021), which mandates that financial institutions semi-annually submit information to the Central Bank regarding clients’ social, environmental, and physical and transition climate risks. We ensure the ESG risk management information in the questionnaires we submit to financial situations is accurately stated.

 

Bracell’s senior leadership team participates in the preparation and approval of our Annual Sustainability Reports and this Disclosures Hub.

Bracell’s Code of Conduct and RGE’s Global Code of Conduct provide guidelines on conflicts of interest. These guidelines are disseminated among employees, who are required to complete Annual Conflict of Interest Declarations.

All members of the Sustainability Steering Committee hold executive positions and none of them are independent. They also do not hold any additional executive positions at Bracell.

The Sustainability Steering Committee, with representatives from strategic business and operations functions, works alongside top management to address the environmental, social and governance topics prioritized in our Sustainability Strategy at the operational level.

Bracell also has a Crisis Committee (learn more in GRI 2-9), set up in response to emergencies to prevent and/or mitigate operational, reputational, social and environmental impacts on Bracell’s business and stakeholders.

The Committee:

• uses management workflows consistent with the nature of the emergency and local needs;
• In Bahia it has two organizational levels depending on how the crisis escalates, as outlined in the Crisis Prevention and Management Manual; and
• In our São Paulo operations, the crisis committee is composed of key leadership personnel as relevant to the crisis situation.

Sustainability Steering Committee executives have the necessary skills to manage Bracell’s business and operations effectively. Committee executives receive supporting advice from Bracell’s leadership, which has individual expertise in environmental, social, and governance (ESG) management and oversees ESG matters within the Company. For instance, the senior leadership team led the development of the Bracell 2030 targets, with progress against those targets tracked by the Sustainability Steering Committee. This oversight includes managing social and environmental risks and opportunities within our operations.

Expertise of Sustainability Steering Committee executives
Position	Held by	Duties and credentials
President	Praveen Singhavi	Praveen oversees overall business operations, including two main operations in Brazil, one in Camaçari (BA) and the other in Lençóis Paulista (SP).  He leads over 11,000 employees in building a more efficient and sustainable business. With more than 25 years of management experience, including a tenure as president of the APRIL Group, a member of the RGE group, he has previously held several senior management positions, including national and regional financial management roles, at other global companies in the commodities and manufacturing sectors.
Chief Operating Officer (COO)	Clinton Clive Van Vught	Clinton heads our mill operations in Lençóis Paulista (SP), where our two flexible lines produce Kraft pulp and dissolving pulp. An executive with international experience, he served as Senior Executive of Operations at the APRIL Group, a member of the RGE group. Throughout his professional career, he has been involved in strategic planning, operational management, human resources management, health, safety, environmental and quality management, and financial management.
Head of Forestry operations	Mauro Quirino	Mauro Quirino is Bracell head of Forestry operations, bringing experience from previous roles at forestry companies. Mauro Quirino holds a MBA in Administration and Controlling (Fundação Getúlio Vargas) and a Master of Science in Accounting (PUC-SP). With a robust skill set that includes Internal Controls, Sarbanes Oxley Act, Financial Reporting and Financial Audits and SAP.
Managing Director, Bahia	Guilherme Araújo	Guilherme leads the company’s forestry, industrial, and logistics operations (both inbound and outbound). He has previously headed the commissioning of power generation plants, industrial plants, and greenfield projects, as well as the pulp production process; participated in implementing Lean methodology; implemented a sustainability agenda focusing on long-term social programs; and actively participated in external stakeholder engagement and relationship activities. Guilherme holds a bachelor’s degree in chemical engineering and has 26 years of experience in the forestry and pulp sector.
Chief Institutional Affairs and Communications Officer	Luiz Carlos Cavalcanti Dutra Junior	Luiz leads efforts to engage and cultivate relationships with external stakeholders such as trade associations, government agencies, local and traditional communities, and the media. With over 37 years of market experience, he has served as vice president of Public Relations, Advertising, and Communication for companies in the energy, consumer goods, chemicals, retail, infrastructure, and education sectors. Luiz has served as a member of the Board of Directors and non-executive director in the education, infrastructure, and investment holding sectors. He has expertise in corporate brand management, communications, marketing, media relations, public and governmental affairs, and sustainability.
Bracell Papéis Managing Director	Eduardo Aron	Proven and consistent track record leading competitive and complex consumer-oriented businesses in Pharma/OTC, Petfood or Personal Care. An executive with more than 20 years of experience in marketing, trade marketing, sales and administration and R&D. Passionate about consumer understanding leading to breakthrough innovation as a way to foster sustainable profitable growth. Blue Ocean Strategy Certified Instructor. Creation and application of Digital Transformation strategies with very positive business results. Consistent experience at Sector Associations. Successful cases of business turn around.

 

Expertise of leadership supporting the Sustainability Steering Committee
Position	Held by	Duties and credentials
Vice President, Sustainability	Marcio Nappo	Marcio has over 20 years of professional experience in Sustainability, ESG, and Corporate Affairs, including executive positions in global companies in the grain, vegetable oil, sugarcane, biofuels, and animal protein sectors. He has also held positions in the leading trade associations in Brazil, responsible for developing and modernizing the sustainability agenda for the entire sector. Marcio has extensive experience in building collaborative partnerships with industry peers, governments, international organizations, and NGOs. He has held leadership positions in a wide range of multi-stakeholder groups and task forces to improve business sustainability and sustainable production. Marcio holds a Bachelor’s degree in Philosophy from the University of Sorocaba, a Bachelor’s degree in Economics from the University of São Paulo, and a Master’s degree in Economics from Fundação Getúlio Vargas.
Senior Manager, Operational Support	Alexandre Figueiredo	Alexandre has over 25 years’ experience in the Pulp and Paper industry, having led both greenfield and brownfield projects as well as managing environmental and ESG matters related to mill operations. He oversees the mill’s environmental management and licensing processes, leads Bracell’s sustainability strategy for mill operations, and manages special projects. He reports directly to the COO. Alexandre holds a Chemical Engineering degree from the Federal University of Santa Catarina and an MBA in Finance from Fundação Dom Cabral.
Head of Human Resources (Bahia)	Carolina Linhares Fialho Gomes	With 20 years of experience in Human Resources Management, Carolina holds a degree in psychology and has received training in Coaching and Leadership from the University of West of England, UK, with a graduate degree in people management and organizational behavior. She works in HR planning to align it with the current and future needs of client departments and the business, focusing on Talent Acquisition, Change Management, and Team Building. Carolina leads projects focused on Recruitment & Selection, Development, Performance, Diversity & Inclusion, Organizational Climate, and Culture.
Head of Human Resources (São Paulo)	Mauro Peixoto	With 18 years of experience in Human Resources, in the pulp, energy, oil and gas sectors, Mauro has led HR teams and projects supporting business growth at a national scale. He has led transformation and development programs implementing global and corporate HR guidelines. Some of his areas of expertise include talent acquisition, training and development, organizational design, succession planning, compensation, engagement, and performance management. Mauro holds a Bachelor’s degree in Business Administration from Fundação Getúlio Vargas (FGV), an MBA in business management from FGV, and a graduate degree in project management from the University of São Paulo (USP).
Head of Talent Management and Learning and Development	Fernanda Kruse	With 18 years of experience in the market, Fernanda is a generalist with expertise spanning the main human resources subsystems. She serves as an internal consultant (Business Partner) supporting leadership and employees in the following processes: career management, recruiting and selection, training and development, performance review, youth training, succession planning, induction, and strengthening corporate culture and HR processes. With a degree in Advertising from AESO and a Bachelor’s degree in Business Administration from the Federal University of Pernambuco, she holds graduate degrees in Online Education and Learning Techniques from the Pontifical Catholic University of Rio Grande do Sul and in Career Consulting from the Fundação Instituto de Administração.
External Affairs Director	Manoel Browne	Manoel brings executive experience in ESG and Public Affairs management, having led multidisciplinary teams and crisis management in large corporations. He holds degrees in corporate, business, and environmental law. With a Master’s in Law, Manoel also has an MBA from the Alberto Luiz Coimbra Institute of Postgraduate Studies and Research in Engineering (COPPE/UFRJ) and a PMD from ISE/IESE.

 

The performance of members of the Sustainability Steering Committee is assessed annually, both individually and against performance indicators for the broader RGE group, core organizational values, leadership skills, and adherence to annual planning for the position. All members receive feedback focused on continuous improvement.

Bracell’s total compensation package comprises multiple remuneration components, including financial rewards based on employees’ roles, contributions, and achievements within the organization. In formulating total compensation, several factors are taken into consideration:

• Applicable labor laws and regulations and collective bargaining agreements;
• Job grading and the relative importance of each role within the organizational structure;
• Benchmarked compensation practices;
• Internal pay equity and external competitiveness, ensuring parity among roles of similar levels and importance;
• Skill sets and competencies required for each position;
• Organizational strategies;
• Budgetary constraints and the overall financial health of the company;
• The Company’s organizational structure;
• Overall organizational performance;
• Individual employee performance.

The salary structure is updated annually based on market benchmarks, including variables such as competitor compensation, regional economic factors, labor market conditions, unemployment rates, and turnover.

Bracell does not have an independent compensation committee responsible for overseeing the process for determining remuneration. Employee compensation comprises a base salary commensurate with their respective roles, supplemented by various benefits. Each year, the terms of collective bargaining agreements are incorporated into compensation packages following negotiations with unions representing employee categories within the workforce.

Salary structures are formulated based on legal requirements, market analysis, and biannual internal performance evaluations.

For employees in leadership positions (specialist and above), performance evaluations are conducted by a committee comprising Bracell leaders from relevant departments (learn more in disclosure GRI 2-19).

Bracell’s compensation and performance evaluation policies align with those of RGE.

For strategic reasons, Bracell does not disclose information about the remuneration of senior executives.

Mechanisms for identifying and addressing grievances, reports and concerns

All applicable policies, protocols, regulations and standards are embedded in internal procedures outlining processes and guidelines on managing social, environmental and governance issues (read more in GRI 2-24).

Bracell has two dedicated channels for receiving complaints, concerns, and whistleblower reports: Bracell Escuta and Contact Us. Through these channels, we maintain contact with whistleblowers to provide updates on the progress and status of their case.

The entire process, including the measures taken to address issues, is managed within an internal system that tracks and documents case progress. Through this system, we record and track key performance indicators, including case resolution time. Whistleblowers can also provide feedback on their experience and satisfaction with the resolution of their case.

Bracell’s Internal Audit function is responsible for investigating reports. Working with other key process functions, such as controllership and legal, it seeks to identify the root cause of reported incidents and implement preventive measures to avoid recurrence.

Bracell also engages specialized consultants to implement strategic sustainability projects. Examples include:

• an assessment of social and environmental operational risks affecting our Bahia and São Paulo operations over the last two years;
• development of the Bracell Sustainability Strategy, launched in 2021;
• development of the Bracell 2030 targets;
• materiality assessments, the most recent edition in 2022;
• Sustainability Policy review and updates;
• the development of our Human Rights Policy;
• the development of our Pulpwood and Fiber Sourcing Policy;
• the development of our Anti-Corruption and Anti-Bribery Policy.

In 2023, as part of the process for managing social and environmental impacts and risks, the senior leadership team directly participated in approving the sustainability metrics and targets for Bracell 2030. Our long-term plan for sustainability anchored in 14 targets and commitments that are benchmark in the pulp industry in Brazil, focusing on climate, biodiversity, sustainable production, people and communities (further details in GRI 2-22).

Bracell Escuta

Available to all Bracell stakeholders, Bracell Escuta is a platform for reporting misconduct and non-compliance with applicable laws and regulations, our Code of Conduct, or other company policies.

Reports are handled confidentially and whistleblowers remain anonymous. Reports are investigated by an internal audit team, which reports directly to senior management at Bracell and the RGE group.

Contact information:
bracell_escuta@bracell.com
Bahia: 0800-006-6012
São Paulo: 0800-033-3384

 

Contact Us

Our Contact Us channel is also open to all stakeholders to submit inquiries, suggestions, compliments, and complaints. Cases are directed to the relevant departments depending on the nature of the issue.

Contact information:

Bahia
0800-284-4747
faleconosco@bracell.com

São Paulo
0800-709-1490
faleconoscosp@bracell.com

Remediating impacts

To remediate impacts, we:

• Maintain an updated survey of social and environmental aspects and impacts, involving all our operations in order to identify, prevent and address any issues;
• Identifies and assess social and environmental impacts before commencing operations;
• Conduct product assessments on risks related to safety, health, and the environment;
• Regularly monitor impacts to measure progress and the need to implement strategic action plans.

Bracell’s approach to stakeholder engagement includes:

• Collecting community data in the field relevant to managing, preventing or mitigating impacts from our operations;
• Preparing impact zoning maps identifying Bracell properties for planting, protected areas, and development in the areas where we operate;
• Preparing a map and matrix of stakeholders, or people or groups who are directly or indirectly impacted by a project and/or activity, and those who might have a stake in a project and/or are able to influence the outcome in a positive or negative way;
• Holding regular meetings with communities and neighbors before, during and after harvesting, hauling and other forestry operations to keep all stakeholders informed;
• Maintaining an Odor Perception Network in the area surrounding the mill in Caçari (BA), with 25 community representatives around the mill receiving training, attending periodic meetings and communicating directly with Company representatives.

Distributing informational materials in communities, such as pamphlets and digital cards. During visits to stakeholders affected by forestry operations, we deliver operational communication kits consisting of a drawstring bag, keychain, cap, and a brochure with presentations on the eucalyptus cycle, as well as information about Community Relations procedures and Bracell’s Contact Us channel.

Bracell did not receive any significant fines in the year for noncompliance with laws and regulations in the social and economic area.  We did, however, receive delinquency notices for which we filed defense briefs, appeals or legal actions to annul those notices. Bracell has not been required to enter into any settlement of environmental liabilities with the competent authorities. Bracell has not received any significant fines (above R$ 1 million) due to non-compliance with environmental, social or economic laws and regulations.

In our Bahia operations, all employees up to manager level are covered by collective bargaining agreements. Positions above manager level are not covered.

In our São Paulo operations, all employees up to coordinator level are covered by collective bargaining agreements. Positions above coordinator level are not covered.

Performance-based payments are governed by a profit-sharing agreement that is formulated annually between Bracell, an employee-elected committee, and the relevant union.

Performance-based payments made to employees and specialist, coordinator, manager and senior manager positions are governed by individual performance contracts and a corporate bonus program.

Socio-environmental assessment of suppliers is a material topic for Bracell, and its scope includes the application of socio-environmental criteria for the evaluation and selection of suppliers in its operational units. For service providers and suppliers of wood, the main raw material for the industry, criteria of environmental legislation, human rights, labor rights, and children’s and adolescents’ rights are applied, including the fight against slave labor and child labor. As for suppliers of inputs, they are assessed according to the legislation applicable to the segment, also considering environmental issues.

At Bracell, supplier onboarding and management are governed by corporate policies on sustainability and human rights management, which in turn draw guidance from applicable laws and regulations and international sustainability standards. Our related policies are publicly available on our website.

Specifically, Bracell commits to:

• Promote economic development in the regions where we operate, including by engaging local suppliers to supply products and services for our forestry, mill, logistics (wood and pulp), and administrative operations;
• As part of supplier due diligence, review documents demonstrating compliance with environmental laws and regulations, environmental and operational license requirements, and other requirements specific to the supplier’s segment. These requirements are monitored throughout the supplier’s contract, with periodic requests for updated documentation;
• Evaluate and score suppliers on performance. 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;
• Conduct supplier visits when necessary to assess performance. On-site supplier visits are properly conducted and documented in an assessment report measuring the supplier’s performance based on defined criteria;
• Has a performance improvement program for suppliers, providing recommendations for them to achieve better results. The decision to disqualify a supplier is made impartially by a committee that carefully evaluates the information provided, ensuring transparency and equal opportunity for all. A Supplier Performance Assessment Form is submitted to the supplier, clearly detailing the reasons for the underperformance. Suppliers are notified of the results of the legal compliance assessment, carried out in the supplier due dilligence process.

Read more in GRI 308-1, in the section Management of the material topic Human rights in the value chain, under Empowering Lives, and in GRI 3-3, in the section Management of the material topic Human rights in the value chain.