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.

 

Through Bracell Social, our social investment platform, we support enabling projects in local communities that connect social inclusion with environmental sustainability.

Bracell Social reflects our commitment to carry out our activities in harmony with neighboring communities, respecting their habits, customs and traditions, and building relationships based on mutual trust.

Through Bracell Social, we develop enabling projects in the areas of education, entrepreneurship, and civic engagement:

• Education: Bracell sees education as the cornerstone for societal development. Our efforts make a substantial contribution to improving educational practices in public schools, through programs and initiatives that engage both children and adults across various locations. These programs also teach environmental civics, develop leadership skills, and support the professional development of adolescents and young adults, further underscoring 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. This is achieved through a range of initiatives to develop and strengthen productive activities, including investment in training and technical assistance, leadership development, cooperative organization, and equal access to social participation mechanisms through calls for projects and public-private partnerships.
• Enhancement: we provide community residents with free leisure, health promotion, cultural and civics activities that foster well-being and civic engagement in the communities around our facilities.

	NUMBER OF PROJECTS
	2021	2022	2023
Education	4	7	11
Empowerment	18	8	10
Enhancement	4	16	18
Total	26	31	39
	PEOPLE REACHED
	2021	2022	2023
Education	31,878	34,509	72,764
Empowerment	19,022	15,616	26,012
Enhancement	51,165	71,715	65,232
Total	102,065	121,840	164,008
	INVESTMENT
	2021	2022	2023
Education	R$ 1,193,384.00	R$ 1,596,974.19	R$ 3,755,301.30
Empowerment	R$ 1,872,795.11	R$ 1,818,182.57	R$ 2,712,761.37
Enhancement	R$ 1,066,994.24	R$ 1,019,777.47	R$ 2,571,486.65
Total	R$ 4,133,173.35	R$ 4,434,934.23	R$ 9,039,549.32

Stand-out projects in 2023

Education

Education is the cornerstone for societal development. As such, it is a pillar of our organization and one of Bracell’s top priorities in social investments. Through programs benefiting children and adults in various locations, initiatives within this pillar have significantly contributed to improving educational practices in public schools, promoting environmental civics, and developing leadership, advocacy, and professional skills among adolescents and young adults.

• Continuing Education: this program supports the professional development of public school teachers and principals, strengthening the Municipal Continuing Education Program. The program includes continuous training for teachers, teaching coordinators, school principals, and technical staff from the Departments of Education, social and political advocacy around municipal public education policies, and content production and organization. Since launching the program, participating municipalities in Bahia have shown improved learning outcomes. In 2023, we expanded the initiative to include three more municipalities, benefiting a total of 12 school districts. Click hereto learn more about the program.
• Environmental Education Center: located at Fazenda Salgado in Inhambupe (BA), a Bracell forestry property, this center mainly hosts elementary school students and teachers from the region, offering refresher training workshops, games, lectures on environmental topics, and a guided tour of a one-kilometer ecological trail.
• Ecomunidade: this initiative trains community members to work as eco-agents (environmental facilitators) in their communities, with a particular focus on proper waste disposal and shared responsibility for environmental preservation. Activities include training sessions, environmental contests, and recycling workshops. In addition, we support social and environmental projects through eco-agents within their communities.
• LideraJovem Institute: Bracell is one of the sponsors of this institute, a civil society organization that helps youth in and around Lençóis Paulista, SP to develop life plans and strengthen their leadership skills, preparing them for the job market and the broader challenges of life. It also trains adult facilitators in active methodologies to work with youth.
• Youth Conference: in partnership with the local government, Bracell brought the first edition of the Youth Conference to Macatuba (SP). The event, which has been held for over 15 years in Lençóis Paulista (SP), benefited 206 youth aged 13 to 18 in Macatuba (SP) this year. Over two days of activities, participants were encouraged to exercise critical thinking, develop solutions to everyday challenges, and discuss issues such as empowerment, drug awareness and prevention, bullying, violence in its many forms, and school dropout problems. The conference also provided an opportunity for participants to make decisions supporting their growth, well-being, and prosperity. Students from the three state schools in the municipality were invited to participate and had the opportunity to hear lectures on important topics for improving their present and future prospects.
• Active Dropout Search: in 2023, Bracell began supporting the Active Dropout Search program, a joint initiative of the United Nations Children’s Fund (UNICEF) and the National Union of Municipal Education Directors (UNDIME). The goal is to strategically assist governments in identifying, documenting, following up on, and supporting children and adolescents who are out of school or at risk of dropping out. Bracell has provided technical assistance to the state government of Bahia, particularly benefiting four municipalities within the company’s area of influence: Feira de Santana, Rio Real, Esplanada, and Amália Rodrigues.
• “Discoveries” Visiting Program: our “Discoveries” Visiting Program aims to broaden students’ perspectives beyond the classroom. It offers students the opportunity to be exposed to different technologies, interact with professionals in different fields, learn about Bracell initiatives that contribute to the economic growth of the regions where we operate and positively impact sustainability issues such as climate action, nature conservation, and community development. In its first year, the program benefited 651 people, welcoming 9^th-grade students from 17 public and private schools in the municipalities of Lençóis Paulista, Macatuba, and Borebi, in São Paulo.
• Leitura Viva: launched in 2023, this program provides ongoing training for teachers, better preparing them to teach children’s literature. The program also distributes literature kits with age-appropriate books for students and a notebook for annotations.
• Facilitator Training: using the Socratic method, this program trains professionals from various fields to promote youth empowerment.
• Professional training: Bracell offers professional training courses in partnership with the National Industrial Training Service (SENAI) in São Paulo. With a focus on workforce inclusion, we analyze economic indicators in the municipalities where we operate to determine the qualifications highest in demand in each region. The project uses mobile schools equipped with touring technological laboratories.
• Hardware Project: Bracell supports Legião Mirim de Lençóis Paulista (SP), offering opportunities for teenage students to participate in free semi-professional courses.

Project	Region	Municipalities	Positive impact	Affected stakeholders
Continuing Education	Bahia	Acajutiba Alagoinhas Araçás Aramari Cachoeira Cardeal da Silva Entre Rios Inhambupe Itanagra Jandaíra Ouriçangas Santo Amaro   12 municipalities in total 310 municipal public schools benefited *Three municipalities joined the project in the 2nd semester of 2023 (Ouriçangas, Jandaíra, Cachoeira).	Contribution to improving education and school management practices:   11 municipalities with 100% of technical action plans for Education Departments developed in 2023 (1) 12 municipalities with 100% of Annual Teaching Plans for Early Childhood Education developed (2) 4 municipalities with 100% of Annual Teaching Plans for Elementary Education I developed 208 hours of continued training for technical teams at Education Departments 192 hours of continued training for school principals   208 hours of continued training for teaching coordinators 688 hours of continued training for Elementary Education I (early years) teachers 336 hours of continued training for Early Childhood Education teachers 22 meetings with students’ families, totaling 66 hours, to develop collaborative learning strategies   310 municipal schools reached by the program	24,532 students benefited 2,152 teachers and staff benefited 1,734 participants in live sessions organized by the program 372 student family members reached
Environmental Education Center (NEA)	Bahia	Acajutiba Alagoinhas Entre RiosAramari Inhambupe Catu Esplanada ItanagraAporáConde10 municipalities in total	133 visits 105 schools involved 16 communities reached 4,366 people—including students, educators, and community members—engaged with content on spring and disturbed-land rehabilitation, waste management, waste reuse, environmental crime prevention, biodiversity conservation, and debunking myths about eucalyptus	4,515 people reached through program activities, including visitors to the Environmental Education Center and participants in the environmental-themed drawing contest
Ecomunidade	Bahia	Alagoinhas Catu Entre Rios Itanagra Santo Amaro São Sebastião do Passé   6 municipalities in total	123 meetings and activities conducted throughout the year 16 communities engaged in social and environmental initiatives (an eco-park and eco-point for recyclable waste collection, community kitchen gardens, production and sale of ecological soap, production of crafts from reused materials, etc) 900 seedlings produced by eco-agents 342 seedlings planted for spring area rehabilitation in communities	166 eco-agents involved in project activities   1,345 participants reached by eco-agent activities in their communities
Active Dropout Search	Bahia	Feira de Santana Rio Real Esplanada Amélia Rodrigues   4 municipalities in total	This partnership was launched in November 2023 and results have yet to be measured	Municipal school students in the 4 participating municipalities Professionals from child and adolescent care networks participating in the program
Discoveries Visiting Program	São Paulo	Lençóis Paulista Macatuba Borebi	The Discoveries Visiting Program was launched in 2023 as a pilot initiative.  The goal of the program is to broaden students’ perspectives beyond the classroom	651 people and visiting 9th grade students 17 participating public and private schools
Facilitator Training	São Paulo	Pirajuí Pederneiras Itatinga Borebi Bauru Cabrália Paulista Agudos Álvaro de Carvalho Avaí Botucatu Duartina Macatuba Oriente Paulistânia Lençóis Paulista Piratininga Presidente Alves   17 municipalities in total	Training for adults, primarily municipal civil servants from the local APAE (Association of Parents and Friends of the Disabled), CRAS (Social Assistance Referral Center), CREAS (Specialized Social Assistance Reference Center), child protection services, health departments, and social assistance departments, who work directly with children and adolescents aged 12 to 18	12 classes 23 training hours per class
Professional training	São Paulo	Bauru Gália Júlio Mesquita Cafelândia Iacanga Guarantã   6 municipalities in total	80 hours of training for each participating municipality 480 training hours	14 classes trained 167 people trained
Hardware Program	São Paulo	Lençóis Paulista	Run by Legião Mirim in Lençóis Paulista, the Hardware Program provides students with access to free semi-professional courses, offering enhanced training and personal and professional development opportunities to prepare them for their first jobs as apprentices. The program helps to strengthen family and community bonds and support student retention through activities that promote social interaction, civics, and overall preparation for the job market	20 students benefited 144 training hours
Leitura Viva	São Paulo	Lençóis Paulista Macatuba	The Leitura Viva program was officially launched as part of our sponsorship of the Lençóis Paulista Integrated Literature Festival (FILLP) held from November 5 to 12. FILLP was organized by the Ministry of Culture with funds under the Culture Incentive Act (Rouanet Act) and from the National Culture Fund (Rouanet Act) As part of the event, we created a Leitura Viva (“Living Reading”) space featuring book launches, reading circles, and other activities Concurrently, we ran a “Pass a Book” campaign in partnership with the Brazilian Tree Institute (IBÁ). The campaign encouraged reading habits and a circular-economy culture by encouraging participants to donate already-read books	The event brought together over 21,000 people, including more than 8,000 children and adolescents from schools in Lençóis Paulista and the surrounding area A total of 30,086 people were reached across all program activities and initiatives

(1) Technical action plans outline annual goals and priorities for municipal education, coordinating the roles of technical supervisors and education directors in developing the curriculum for public schools.

(2) Annual teaching plans provide an overall teaching outline covering teaching goals, time management, content presentation, class organization, and the evaluation process.

Empowerment

Bracell Social’s Empowerment projects support individual and collective autonomy by creating new sources of income in communities. This is achieved through investment in training and technical assistance, leadership development, promotion of cooperativism, and equal access to social participation mechanisms through calls for projects and public-private partnerships.

• Connection: launched in 2021, this project helps social organizations develop management competencies to help them become sustainable, focusing on mobilizing and optimizing financial and human resources, thus strengthening civil society organizations. This initiative also fosters knowledge sharing across organizations in some regions of São Paulo, supporting the development of a collaborative network of local NGOs.
• Nós do Campo: a program to support family farming with activities that foster food security, job creation, income, and stronger networks. In Bahia, the focus of the program was on disseminating agroecology techniques to contribute to healthy nutrition and higher income from the sale of surplus produce. The program invests in the establishment and maintenance of agroforestry systems comprising various food species intercropped with eucalyptus, and provides workshops on financial management and strategies for produce distribution and marketing. In São Paulo, farmers received training through workshops on property management, crop planning, and techniques for growing fruits and vegetables. Workshops helped to develop entrepreneurial skills, teaching farmers how to manage their finances, understand markets and customers, plan production, control finances, market their produce, and develop a strategic vision.
• Pollinators: a partnership between Bracell and beekeepers’ associations in the regions where the company operates in Bahia and São Paulo. This program supports beekeeping as an alternative profitable use of eucalyptus plantations. Bracell authorizes accredited beekeepers to install and manage beehives in our forestry operations, using eucalyptus blooms and native vegetation to produce honey and other bee products.

In 2023, our Pollinators project was presented with the Sustainable Industry Award from the Bahia State Industry Federation (FIEB).

• Impactful Business: this program 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 and improving access to government programs that can help strengthen their business. The program supports and enables actions to improve processes, products, and market access. Some of the stand-out projects within the program include:
  • Uniform Factory: located at Fazenda Salgado, a Bracell property in Inhambupe (BA), the Uniform Factory is a cooperative of industrial seamstresses residing in communities within the company’s area of influence. Besides physical infrastructure and equipment, Bracell offers technical and management support to Cooperativa de Trabalho das Costureiras de Inhambupe e Região (Coopecir), which currently manages and operates the Uniform Factory.
  • Cookie Factory: a project creating income opportunities in the quilombola communities of Mato Limpo (Araçás) and Mandacaru (Inhambupe) and in the Prata neighborhood of Entre Rios. In Mato Limpo and Mandacaru, the Delícias do Mato Limpo group produces an assortment of cookies and cracknels, while in Prata, the Delícias da Prata group produces jams and preserves.
  • Honey Products: this project provides participants with a source of income from the production and marketing of bee products, including propolis, pollen, and honey cookies. The initiative supports Associação de Jovens Remanescentes de Quilombo (AJARQUIBA), a quilombola youth association in Esplanada, providing training and technical assistance via the Pollinators program and additional support from the Impactful Business program for product formalization (labeling, barcodes, nutritional composition), certification and marketing.
  • Green Pharmacy: this project aims to empower women, promote social entrepreneurship, and create income opportunities through training and capacity building on medicinal and aromatic plants and their value chain, as well as business management support. The Cangula community in Alagoinhas (Bahia) is notable for producing handmade soaps, bath salts, foot soaks, and other products. In 2023, the group developed a project funded by the United Nations Development Program (UNDP Brazil) and the Brazilian Ministry of the Environment, allocating R$ 250,000 to build a facility for processing raw materials and products and establish a medicinal herb garden.
• Women Farmers: this project supports the individual and collective empowerment of women in the Recôncavo Baiano region through technical and management training and social business ventures providing new sources of income, such as bioponics and hydroponics systems, collective chicken coops, and community kitchens.
• Ponteira Sustentável (Sustainable Leftovers): this project 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.
• Dona Della: this project promotes women’s financial independence and entrepreneurship by supporting women-owned businesses in São Paulo seeking assistance to develop their business.

Project (Bahia)	Municipalities	Positive impact	Stakeholders impacted
Impactful Business (FNI)	Alagoinhas Araçás Aramari Entre Rios Inhambupe Esplanada Olindina Pojuca	R$ 288,778.10 in income generated by eight special productive groups through the sale of their produce R$ 270,000.00 in income generated by the quilombola community of Mato Limpo (Araçás) from egg sales to public schools via the Brazilian Food Supply Corporation (CONAB) and the Food Procurement Program (PAA)/National School Nutrition Program (PNAE) Quilombola Family Farming Label awarded to products from the Ajarquiba (Esplanada) and Delícias do Mato Limpo (Araçás) quilombola groups Secured a sanitary and operational permit for a production facility operated by the Delícias do Mato Limpo group (Araçás) Secured registration with the National Family Farming Register (CAF Jurídica) for the Delícias do Mato Limpo (Araçás) and Ajarquiba (Esplanada) groups Five groups are selling products at Expofavela Bahia, a state trade fair organized by Central Única das Favelas (CUFA) in Lauro de Freitas Five groups are selling products at the 14th Bahia Family Farming and Social Economy Fair, organized by the Government of the State of Bahia in Salvador. The Ajarquiba Association (Esplanada) was selected to manage the Bahia North Coast and Agreste Produce Outlet at the Fair Number of training hours: 896	18 associations and production groups from the North Coast and Agreste regions of Bahia were assisted with tax and accounting services Eight groups benefited from assistance in formalizing sales of their produce 175 members of special production groups directly reached, of which 120 are women
Pollinators	Alagoinhas Entre Rios Esplanada	753 queen bees distributed to beekeepers to support increased productivity 80 hives georeferenced in Bracell-owned native forest areas Developed and promoted a Bahia North Coast and Agreste Beekeeping Calendar, an educational guide on beekeeping practices   188 hours of technical assistance provided to small-scale beekeeping producers 68 hours of theoretical and hands-on training on topics such as queen bee rearing, propolis production, and mead production	947 people reached through training activities, including beekeepers and interested parties 81 beekeepers registered in communities within Bracell’s areas of influence
Women Farmers	Santo Amaro São Sebastião do Passé	Nine communities benefited by new social income-generating technologies (bioponics and hydroponics; collective chicken coops and community kitchens) 323 hours of training Start of production and produce sales, including at the 8th São Sebastião do Passé Family Farming and Social Economy Fair	1,733 people reached directly and indirectly through project activities 59 women engaged in business development training and initiatives 9 associations and/or collectives supported in the Recôncavo region of Bahia
Nós do Campo	Alagoinhas Cardeal da Silva Conde Entre Rios Esplanada Itanagra Mata de São João Rio Real 8 municipalities in total	12 communities reached   412 hours of training for small farmers and students Five new Agroforestry Systems (AFS) implemented in 2023, totaling 15 systems set up since project launch Held two editions of the Bracell Social Agroecological Fair, for marketing AFS produce   Partnership established with educational institutions, such as the Federal Institute of Science and Technology of Bahia, in Alagoinhas, to create opportunities to share experience and collaborate with academia	419 farmers reached 9 teachers from the Federal Institute of Science and Technology of Bahia (Alagoinhas) 188 students from the Federal Institute of Science and Technology of Bahia (Alagoinhas)   12 communities reached 8 municipalities reached
Ponteira Sustentável (Sustainable Leftovers)	Alagoinhas Araçás Aramari Cardeal da Silva Conde Crisópolis Entre Rios Esplanada Inhambupe Itanagra Jandaíra Ouriçangas Rio Real Sátiro Dias   14 municipalities in total	R$ 20,706.48 in income generated by project initiatives Created a Mixed Cooperative of Rural Workers and Farmers in the North Coast and Agreste of Bahia (COOPNORTE/BA), supporting the economic autonomy of communities and improving wood waste collection workflows on Company properties R$ 13,969,275.25 in income generated by the project	7,988 individuals directly and indirectly reached 65 communities engaged 14 municipalities reached

 

 

Projects (São Paulo)	Municipalities	Positive impact	Affected Stakeholders
Nós do Campo	Borebi Acute Iaras Paulistânia   4 municipalities in total	128 technical visits 8 Participatory Rural Assessment meetings Training course in management and entrepreneurship for Civil Society Organizations (CSOs) 10 Agroforestry Systems implemented R$ 12,000 in income at the Bracell Social Collective Fair	477 people impacted: 112 direct beneficiaries (family farmers) 7 settlements
Pollinators	Botucatu Cabrália Paulista Avaré Acute Bauru Marília Itatinga Lençóis Paulista   9 municipalities in total	4,000 production units installed in company-owned forest areas Over 9,000 metric tons of honey produced	51 beekeepers benefited   169 indirect beneficiaries (beekeepers’ families)   8 associations
Conexão	Acute Barra Bonita Bauru Botucatu Itatinga Lençóis Paulista Macatuba Pederneiras   10 municipalities in total	Organizational capacity building, management improvement, and fundraising. Hybrid training (online and in-person) covering topics such as: Social Project Development, Strategic Planning, Financial Management, and Legal Matters   Training hours: 342	97 managers trained, representing 25 civil society organizations 469 organization managers indirectly affected
Dona Della	Acute Avaí Bauru Borebi Presidente Alves   6 municipalities in total	R$ 3,800 in income generated in the first edition of Dona Della, during the “Bracell Social Collective Fair”   200 women met the project’s criteria for eligibility to participate.	200 women benefited The training, mentoring, and business acceleration program will run in 2024

 

Enhancement

Developed to promote well-being and civic engagement in local communities, the well-being pillar provides residents with free leisure, culture, health promotion, and citizenship activities.

• Mais Cidadania: this project aims to improve access to healthcare, well-being, and citizen services in partnership with municipal agencies in areas where Bracell operates. The project organizes social events offering free services such as vaccinations, rapid tests for sexually transmitted diseases (STDs), legal advice, guidance on accessing government social programs, and game-based activities for children.
• Bracell Alic Digital Arts Circuit: in partnership with Associação Lençoense de Incentivo à Cultura (ALIC), Bracell has sponsored this project since 2021 to bring entertainment and culture to communities in Lençóis Paulista through a program of cultural activities at the Adélia Lorenzetti Municipal Theater.
• Rec: Bracell’s first cultural initiative in Bahia, this project aims to strengthen cultural movements and expression in the Recôncavo Baiano region, engaging youth in Santo Amaro and São Sebastião do Passé in collaborative activities to preserve the local culture. Launched in July 2021, the project includes training on developing, managing and implementing cultural projects, along with funding for artistic and cultural interventions in the region.
• Volunteer Program: The Bracell Volunteer Program—Mãos Dadas (“Helping Hands”)—engages employees in activities and campaigns that benefit local communities. This includes initiatives like our Founder’s Day campaign, which encourages employees across RGE Group companies to dedicate time to volunteer efforts.
• Ação Cidadania Contra a Fome a Miséria: a non-profit charity in Lençóis Paulista, SP, with 30 years of service to the community. Activities in 2023 were supported by Bracell.
• Lençóis Paulista Basketball Association (Project Alba): this Bracell-supported project provides socialization opportunities for youth aged 7 to 18 through sports. Activities foster teamwork, skill development, respect and civics, working with schools and families to build a better future society. Bracell supported Project Alba in 2023.
• Congregação das Irmãzinhas dos Anciãos Desamparados (Our Lady of the Forsaken Elderly Home): this home runs a Social Protection Program with high-complexity social protection services. This charity’s activities in 2023 were supported by Bracell.
• Associação Amorada (Casa Abrigo Morada): the first and only shelter service for children and adolescents in Lençóis Paulista, SP. Association activities in 2023 were supported by Bracell.
• Casa de Apoio Projeto Esperança (Casa CAPE): this shelter offers housing and therapeutic community services, providing subsidized accommodation for men aged 18 to 60 who are abandoned, vulnerable, and at social risk, with broken or weakened family ties, and transitioning from street life. CAPE activities in 2023 were supported by Bracell.
• Associação dos Amigos do Voleibol de Lençóis Paulista (Projeto Sempre Vôlei): this nonprofit organization offers guided recreational activities and professional training, primarily for youth. Activities help to develop skills, civics, teamwork, and behavioral attributes. Projeto Sempre Vôlei was supported by Bracell in 2023.
• Associação Rural de Lençóis Paulista (Projeto Equoterapia): this charity offers complementarity therapy resources, especially for individuals with disabilities or special needs. It uses an interdisciplinary approach spanning health, education, and hippotherapy (therapeutic contact with horses) to promote biopsychosocial development, with horses as an agent providing physical and psychological benefits. Projeto Equoterapia was supported by Bracell in 2023.
• Associação dos Amigos Excepcionais de Lençóis Paulista (APAE): this organization develops and coordinates initiatives spanning human rights advocacy, prevention, counseling, services, and family support, all aimed at improving quality of life for people with disabilities and building a just and supportive society. APAE activities in 2023 were supported by Bracell.
• Irmandade da Santa Casa de Macatuba (Hospital Santa Casa): this nonprofit private institution operates a small general hospital serving the local community in various medical and surgical specialties. Hospital Santa Casa was supported by Bracell in 2023.
• Fundação Amaral Carvalho (Hospital Amaral Carvalho): a referral center for cancer treatment for patients in São Paulo State through the National Healthcare System (SUS). The hospital offers compassionate and professional care including accommodation, food, transportation, and multidisciplinary home-based care for patients and their families. Hospital Amaral Carvalho was supported by Bracell in 2023.
• Associação Protetora Amigos dos Animais: this association provides animal sterilization to prevent abandonment, mistreatment, and animal suffering. Additionally, it provides food and shelter for abandoned pets. Association activities in 2023 were supported by Bracell.
• Hospital Nossa Senhora da Piedade: this civil and philanthropic organization is recognized as a public utility at the federal, state, and municipal levels. Over its 78-year history, it has maintained a commitment to providing compassionate care to patients, regardless of social class or economic status. It currently operates within the National Healthcare System (SUS), to which it provides most of its services. Hospital Nossa Senhora da Piedade received support from Bracell in 2023.

In São Paulo, Bracell provides financial support to projects developed by partner organizations. These include: Ação da Cidadania contra a Fome, a Miséria e pela Vida; Projeto ALBA by Associação Lençoense de Basquetebol; Congregação das Irmãzinhas dos Anciãos Desamparados; Projeto Equoterapia by Associação Rural de Lençóis Paulista; Projeto Sempre Vôlei by Associação dos Amigos do Voleibol de Lençóis Paulista; Associação Amorada (Casa Abrigo Morada); Casa de Apoio Projeto Esperança (Casa CAPE); Associação dos Amigos Excepcionais de Lençóis Paulista (APAE); Irmandade da Santa Casa de Macatuba; Fundação Amaral Carvalho; Associação Protetora Amigos dos Animais; Hospital Nossa Senhora da Piedade. In Bahia, initiatives within this pillar are conducted through our Mais Cidadania and Cultura.Rec projects and Volunteering Program.

Project	Region	Municipalities	Positive impact	Affected stakeholders
Mais Cidadania	Bahia	Inhambupe Entre Rios Aramari Catu Conde Aporá Salvador Acajutiba Dias D’Ávila Alagoinhas São Sebastião, Cardeal da Silva Camaçari   13 municipalities	12 social fairs organized, offering wellness services (haircuts, eyebrow grooming, massage therapy), children’s activities, health services (rapid testing for sexually transmitted diseases, vaccinations, appointments in the National Healthcare System), and social services (registration for federal government programs), in partnership with municipal governments Organized the 4 Miles Run + Color Walk – Bracell Social Circuit, in Alagoinhas. Approximately 1,000 participants, including Bracell employees, their families, and community members, joined the health and sports advocacy event, which also provided free services such as vaccination, rapid testing for sexually transmitted diseases, massage therapy, children’s recreation, and live music Collected 1,800 kg of food through run registrations, which were delivered to charities as part of the Founder’s Day 2023 campaign (described below)	10,012 people reached through social fairs   1,000 people reached by the running event, including 600 competitors and 400 individuals who benefited from other services offered at the event
Mais Cidadania	São Paulo	Julio Mesquita Gália Iacanga Cafelândia   4 municipalities in total	Provided services such as bioimpedance testing, nutritional advice, haircuts, eyebrow grooming, barbering, massage, games for children, and resume preparation and submission SESI’s mobile school (trailer) participated with reading sessions for children, and SEBRAE partnered to offer activities geared toward small businesses	Over 5,700 people benefited from free services offered by the initiative
Cultura.REC	Bahia	Santo Amaro São Sebastião do Passé   3 municipalities in total	Launched the 2nd Cultura.REC Call for Proposals Approved the Maniçoba Poética project, submitted by a young participant from Santo Amaro in the first cycle of Cultura.  REC, as part of the call for proposals for “Artistic Dialogues” marking the 200th anniversary of Bahia’s Independence, organized by the Bahia State Cultural Foundation (FUNCEB). The project toured the municipalities of Salvador, Cachoeira, Santo Amaro, and São Sebastião Number of Meetings/Workshops: 35 Training hours: 431	The project reached a total of 201 young people across its two cycles, including capacity building activities and projects selected through the call for proposals 12,241 people reached, including attendees at events organized by young participants in their communities and viewers of the live broadcasts
Mãos Dadas	São Paulo	Lençóis Paulista Pederneiras Pirajuí Santos 4 municipalities in total	3,463 volunteer employees	More than 15 charities benefited Over 3,800 people impacted by the initiative
Mãos Dadas	Bahia	São Sebastião do Passé Alagoinhas Salvador AramariFeira de SantanaMata de São JoãoCamaçari Cardeal da Silva Dias D´Ávila9 municipalities in total	19 champions engaging employees across various Bracell departments in Bahia 1,277 volunteer employees engaged in initiatives throughout the year 2.28 metric tons of food donated R$ 2,798.27 raised	827 children sponsored by volunteers in Easter and Christmas initiatives 7 charities and 14 communities benefited

 

 

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.

 

 

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.

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.

As we marked our 20^th anniversary in Brazil, we unveiled our long-term vision for building a more sustainable and inclusive future: Bracell 2030.

Bracell presents 14 targets and commitments, organized into four strategic pillars, that have been set to be achieved no later than 2030. Progress on each target is tracked by senior leadership and periodically reported to the Sustainability Steering Committee.

Targets within Bracell 2030 have been established through extensive benchmarking both within and outside the industry, and through an internal cross-department consultation via Working Groups (WGs) focused on the different topics within our Sustainability Strategy. Our long-term plan for sustainability in anchored in 14 targets and commitments that are the benchmark in the pulp industry in Brazil, focusing on climate, biodiversity, sustainable production, people and communities.

 Monitoring progress towards 2030 goals

Bracell 2030 targets and commitments, launched in 2023, presents the Company’s purpose of building a positive legacy for the climate, nature, people and local communities. From 2024 onwards, Bracell will manage the progress of its 2030 targets by monitoring action plans and KPIs.

This process will be addressed through working groups composed of operational teams that will report directly to Bracell Sustainability Steering Committee. The performance towards the targets will be disclosed at the 2024 to 2030 Sustainability Report.

Bracell 2030 embeds sustainability at the core of our business, in line with the UN Sustainable Development Goals (SDGs).

Bracell 2030 commitments and targets

• Climate action
• Sustainable landscapes and biodiversity
• Promoting sustainable growth
• Empowering lives

Learn about our sustainability journey:

2003

– RGE Pte Ltd., headquartered in Singapore, acquires operations in Camaçari and Alagoinhas, Bahia, and establishes Bahia Specialty Cellulose and Copener Florestal

2014

– Bracell creates first materiality matrix following a survey of key stakeholders.

2018

– Bracell reviews its Sustainability Policy with support from independent consultants and a new stakeholder survey, which informed a reformulated materiality matrix.

– Bracell completes acquisition of the Lençóis Paulista (SP) operation and launches Project Star, building two new flexible lines to produce kraft and dissolving pulp.

2019

– Bracell launches a rebranding effort.

– The Company updates its Sustainability Policy spanning all operations.

– Bracell conducts a stakeholder survey and engagement activities in Bahia to identify social and environmental risks and opportunities.

– New Sustainability Committees introduced.

2020

– Bracell develops a Sustainability Vision and Strategy based on stakeholder consultations, desktop reviews and industry benchmarking research.

– We subscribe to the UN Global Compact and commit to annually reporting on progress on social and environmental initiatives aligning with the Ten Universal Principles.

– Bracell conducts a participatory social and economic assessment in 16 priority municipalities in São Paulo State.

2021

– We join the Brazilian Business Council for Sustainable Development (CEBDS), a not-for-profit civil association that promotes sustainable development through advocacy in government and civil society. It represents Brazil at the World Business Council for Sustainable Development (WBCSD).

– Bracell launches its Sustainability Vision and Strategy and a roadmap of key projects.

– Renewable generation facilities start operation in São Paulo and receive approval for commercial operation, injecting between 150 MW and 180 MW into the National Grid.

2022

– Bracell launches an updated materiality matrix, informed by a survey of internal and external stakeholders.

– Bracell publishes its Sustainability Report and Disclosures Hub, in accordance with the 2021 GRI Standards and independently assured¹.

– Bracell launches One-For-One Commitment to conserve biodiversity.

– Bracell announces targets in support of the Brazilian Business Commitment to Biodiversity (CEBDS) and joins two CEBDS-led initiatives: the Action for Nature Platform and the Net Zero Movement².

– Bracell reviews and prioritizes its Sustainability Strategy targets to cover material topics from the perspective of ESG rating agencies, sustainability indices and internal and external stakeholders.

2023

– Bracell launches Bracell 2030.

– The Company updates its Sustainability Policy.

– Bracell publishes Human Rights, Pulpwood and Fiber Sourcing, and Anti-corruption and Anti-bribery Policies.

– The first independent audit reports are published on Bracell’s One-For-One Commitment and Greenhouse Gas (GHG) Emissions inventory for the period 2022.

– Bracell receives International Renewable Energy Certificates (I-RECs) as proof that the electricity sold from its on-site generation facilities in Lençóis Paulista (SP) is renewably sourced.

– Bracell joins the UN’s SDG Ambition Accelerator program, which supports companies participating in the UN Global Compact in setting ambitious targets supporting the SDGs within their core business strategies.

– Bracell joins Rede Mulher Florestal (“Women in Forestry Network”), a non-governmental, non-profit, non-partisan organization created to foster discussion about gender equity in the forestry sector, and is named vice president of the Network.

¹ Bracell has published sustainability reports since 2010. Since 2011, our reports have been prepared in accordance with the Global Reporting Initiative (GRI). From 2010 to 2017, our sustainability reports covered our Bahia operations only. Since 2018, they have also included our operations in São Paulo. Reports have been third-party audited since 2019. Our Disclosures Hub was published for the first time in 2021 and is updated annually. Our current and previous sustainability reports are available here.

² The Action for Nature Platform is a program aimed at assessing, protecting and managing participating companies’ dependence and impacts on biodiversity through collective implementation of new international frameworks, targets and legislation. The Net Zero Movement aims to turn corporate net-zero targets into reality by providing practical support in implementing decarbonization initiatives.

How we put our commitments into practice

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 leadership team and are regularly reported on to the company 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;
• 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 and regulatory standards.

Learn more about training and capacity building at Bracell in GRI 404.

Learn more about RGE Sustainability Policy and Bracell Sustainability Policy.

Social and environmental management

Our Sustainability Policy sets out the environmental, social and governance commitments we have undertaken in our enterprise-wide operations, processes and activities, including in our relationships with stakeholders. To ensure the Policy is kept up to date, we invest time and resources in continuous improvement and implementing best practices. We seek to align our business with ESG (environmental, social and governance) practices, which we recognize as being a critical component of our strategy and business agenda.

Our sustainability management practices align with RGE’s Sustainability Policy, which was last updated in January 2024.

Our Sustainability Policy, last updated in 2024, outlines standards on the following topics:

> Sustainability Governance;

> Human Rights;

> Labor Practices and Decent Work;

> Environment and Sustainable Forestry;

> Compliance with Laws and Regulations;

> Identifying and Monitoring Potential Impacts; and

> Supplier Social and Environmental Management.

 

Commitments

Our corporate strategy and governance also draw guidance from the following principles:

> International Bill of Human Rights;

> UN Guiding Principles on Business and Human Rights;

> International Labor Organization’s (ILO) Declaration on Fundamental Principles and Rights at Work;

> United Nations Declaration on the Rights of Indigenous Peoples;

> Ten Principles of the UN Global Compact;

> UN Women’s Empowerment Principles (WEPs);

> The Performance Standards on Social and Environmental Sustainability set by the International Finance Corporation (IFC)—the largest global development institution focused on the private sector in developing countries;

Laws and regulations applicable to Bracell’s operations.

In addition, as signatories of the Global Compact we annually report on progress and results on topics linked to the Universal Principles. Read Bracell’s Communication on Progress (COP) here.

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.

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%. Bracell received recognition in two categories: External Verification, which attests that the disclosures in the report are reliable and verifiable by consultants outside our offices; and Alignment, indicating that disclosures are closely linked to our business and are clearly communicated to stakeholders.

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’s operations are compliant with certification standards, the Regulatory Standards of the Brazilian Ministry of Labor and Employment, international protocols, and applicable Brazilian laws and regulations, and are annually audited. All leaders, employees, contractors, and suppliers are required to comply with these standards and regulations, and are trained and assessed to ensure compliance. Details on our management practices are outlined in disclosure GRI 2-24.

Bracell provides formal communication channels for receiving complaints, compliments, and inquiries (learn more in GRI 2-25). These channels are communicated to all stakeholders, both internal and external, across all operations. The relevant telephone numbers and email addresses are also published on Bracell’s website, in our Sustainability Report, and through other communication channels.

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.

Bracell seeks to catalyze change in its industry by exercising thought leadership as a member of trade associations, boards, committees, forums and unions, including the Brazilian Forestry Association (IBÁ) and the Brazilian Business Council for Sustainable Development (CEBDS).

In 2023 we participated in the SDG Ambition Accelerator program, which supports companies participating in the UN Global Compact in setting ambitious targets and integrating sustainable development goals into their business strategies, their broader supply chains and their stakeholder engagement practices. Bracell has also joined Rede Mulher Florestal, a non-governmental, non-profit, non-partisan organization created to foster discussion about gender equity in the forestry sector. Bracell became vice president of the organization in 2023.

The organizations of which we are members include:

• Bahia Association of Forest Estate Companies (ABAF)
• Brazilian Association for Standardization (ABNT)
• Brazilian Pulp and Paper Association (ABTCP)
• Brazilian Association of Port Terminals (ABTP)
• Brazilian Association of Bonded Terminals and Warehouses (ABTRA)
• Brazilian Power Sector Regulator (ANEEL)
• National Association of Freight Transportation Users (ANUT)
• CETESB Environmental Committee – Pulp and Paper
• Global Partners for the Future of our Forests (Camcore)
• North Recôncavo and Inhambupe Watershed Committees (CBHRNI)
• State Environment Board (CEPRAM)
• Wastewater Treatment Center (CETREL)
• São Paulo State Industry Center (CIESP Botucatu)
• Camaçari Industrial Development Committee (COFIC)
• Lençóis Watershed Management Committee
• State Board of Water Resources (CONERH)
• Esplanada (BA) Community Public Security Board
• Alagoinhas (BA) Environmental Board
• Entre Rios (BA) Environmental Board
• Esplanada (BA) Environmental Board
• Security Council, Camaçari Industrial Development Committee (COFIC), as a participating member
• Brazilian Business Council for Sustainable Development (CEBDS)¹
• Joanes-Ipitanga Protected Area Management Board
• Rio Batalha Protected Area Management Board
• North Coast Protected Area Management Board
• Northeast Public Security Council (CONSENE) as a guest member
• Bahia State Industry Federation (FIEB)
• São Paulo Association of Planted Forest Producers, Suppliers and Consumers (Florestar SP)
• Brazilian Forestry Association (IBÁ)
• Forestry Research Institute (IPEF)
• United Nations Global Compact
• Rede Mulher Florestal
• Forestry Research Society (SIF)
• Bahia State Union of Paper and Cardboard, Pulp and Cellulose Industries (SINDPACEL)
• Atlantic Forest Reserve Subcommittee

¹ Since 2021, Bracell has been a member of CEBDS, including its Technical Committees on Climate, Energy, Sustainable Finance, Biodiversity and Biotechnology, and Social Impact. CEBDS is a not-for-profit civil association that promotes sustainable development through advocacy in government and civil society. The organization represents the World Business Council for Sustainable Development (WBCSD) in Brazil.

Bracell is committed to consistently cultivating strategic, ethical, and enduring relationships with stakeholders. Supporting this commitment is a set of policies and guidelines including our Code of Conduct, which provides clear guidance to employees on interacting with stakeholders appropriately.

Bracell has a formal Institutional Relations department tasked with fostering strategic partnerships with both private institutions and government agencies in the areas where we operate.

Priority stakeholder groups have been identified based on a comprehensive analysis of their impact and influence on Bracell’s operations. This analysis informed specific engagement recommendations tailored for the following stakeholders: employees (both internal and external), local communities, indigenous and traditional peoples, suppliers, government agencies, customers, and trade associations.

Bracell has implemented robust procedures to monitor customer satisfaction, with well-defined and objective criteria covering aspects such as product quality, health, and safety.

Relations with communities and traditional peoples

In São Paulo, the Araribá Indian Reservation, located in Avaí (SP), is the only indigenous community within a three-kilometer radius of Bracell’s forestry operations. The community comprises four villages—Tereguá, Ekeruá, Kopenoti and Nimuendaju—with a population of approximately 600 people. Bracell’s operations in Bahia do not have indigenous communities within their area of influence (learn more at GRI 411).

Bracell’s Integrated Management System (IMS) includes a standard, available to all employees, on Relations with Communities and 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 tools Bracell uses to identify stakeholders include the following:

• social aspect and impact matrix;
• social and economic assessments of potentially affected communities neighboring our forestry operations;
• influence maps showing the geographic coordinates of communities and neighbors affected by our forestry operations; and
• practices for communication with communities and neighbors directly or indirectly impacted by forestry operations (such as soil preparation, planting, road operations, harvesting, and haulage).

The procedure also provides guidelines on managing stakeholder concerns and requests, including:

• complaints related to Bracell’s operations;
• reports on non-compliance with legislation or Bracell’s Code of Ethics;
• operational requests, such as community or neighbor requests to prevent potential operational impacts;
• compliments; and
• inquiries from government agencies or institutional or trade association meetings. These types of concerns and requests are managed through Bracell’s Institutional Relations department (see more in disclosure GRI 413-1).

Bracell has procedures and tools in place for engaging with stakeholders. Identified operational risks and potential impacts are mitigated using tools such as the following:

• social aspect and impact matrix;
• social and economic assessments of potentially affected communities neighboring our forestry operations;
• influence maps showing the geographic coordinates of communities and neighbors affected by our forestry operations; and
• practices for communication with communities and neighbors directly or indirectly impacted by forestry operations (including soil preparation, planting, road operations, harvesting, and haulage).
• procedures providing guidelines on managing stakeholder concerns and requests, including:
• formal channels for lodging complaints and concerns related to Bracell’s operations; reports on non-compliance with legislation or Bracell’s Code of Ethics; operational requests, such as community or neighbor requests to prevent potential operational impacts; compliments; and inquiries from government agencies or institutional or trade association meetings.

Government inquiries, specifically, are managed by Bracell’s Institutional Relations department. Read more in disclosure GRI 413-1.

Stakeholders	Definition
Employees	Bracell employees, hired directly by the Company.
Contractors	Third-party employees employed in Bracell’s operations.
Local communities	Social groups living in the area of influence of Bracell’s forestry or mill operations. Despite being located outside our areas of operation, local communities may experience both direct and indirect impacts from our activities. This category includes both traditional communities as well as communities that have migrated to the region. “Area of influence” means the area where impacts occur or are felt.
Traditional peoples and communities	People or groups who are culturally distinctive and recognize themselves as such, who have their own forms of social organization, and who depend on land and natural resources for their cultural, social, religious, ancestral and economic reproduction, using knowledge, innovation and practices generated and transmitted by tradition. This category includes: Quilombola Communities (Quilombolas) recognized by the Palmares Foundation; and Indigenous Communities recognized by the Brazilian Foundation for Indigenous Peoples (FUNAI). This definition aligns with the Brazilian National Policy for Sustainable Development of Traditional Peoples and Communities, introduced by Decree no. 6,040/2007.
Suppliers	Organizations providing goods and services to Bracell under contract.
Government	Municipal, state, and federal government agencies.
Customers	Organizations purchasing Bracell’s products and other stakeholders Bracell does business with.
Trade associations	Associations, committees, forums, unions, and civil society organizations in which Bracell participates as a member in discussions on local and international sustainability agendas and works to build collaboration and partnerships with stakeholders.
Note: Stakeholders are individuals or entities (such as customers, NGOs, communities, suppliers, etc.) whose interests may be impacted—positively or negatively—by Bracell’s activities. Stakeholders may also exert influence over Bracell.

 

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.

Bracell’s materiality matrix lists the social and environmental topics deemed most important by key stakeholders. It was first developed in 2022 and then updated in 2023 to align with the Bracell 2030 commitments and targets. As part of the materiality assessment, we:

• reviewed industry and company documentation on sustainability and benchmarked our practices against industry peers.
• conducted a quantitative and qualitative survey of our leadership team and key stakeholders (employees, suppliers, communities, customers, government agencies, and industry associations) through interviews, survey forms, and a review of ESG questionnaires submitted by customers and banks.
• compiled a shortlist of 18 topics deemed most material by surveyed stakeholders, then prioritized and approved a further narrowed-down list of 10 material topics that now form our materiality matrix—the top 10 most voted topics.
• correlated the material topics identified in the materiality assessment with the Bracell 2030 pillars, based on impact and contribution to our sustainability targets.

Bracell’s materiality matrix was also approved by RGE group leadership.

Bracell’s materiality matrix lists the social and environmental topics deemed most important by key stakeholders. All disclosures have been assured by an external and independent third party with no conflicts of interest, as confirmed by the Sustainability Report Assurance Letter, GHG Inventory Assurance Statement and Statement on Scope of Assurance of Bracell’s One-to-One Commitment.

Scope	GRI disclosure²	SASB disclosure³	SDG4	UNGC5
BRACELL 20306	Cimate Action: climate positive operations supporting a low-carbon economy
Material topic¹	Climate change: planning, policies and initiatives to mitigate emissions, establish low-carbon production capabilities and adapt to a warming planet.
Report scope	GRI 3-3 201-2 305-1 305-2 305-3 305-4 305-5	RR-PP-110a.1, RR-PP-110a.2	7 and 13	·   Principle 7: Businesses should support a precautionary approach to environmental challenges.
				·   Principle 8: undertake initiatives to promote greater environmental responsibility;
				·   Principle 9: Businesses should encourage the development and diffusion of environmentally friendly technologies.
Material topic	Energy efficiency: efficient energy consumption from clean (renewable) sources.
Report scope	GRI 3-3 302-1 302-2 302-3 302-4 302-5	RR-PP-130a.1	7 and 13	·   Principle 7: Businesses should support a precautionary approach to environmental challenges.
				·   Principle 8: undertake initiatives to promote greater environmental responsibility;
				·   Principle 9: Businesses should encourage the development and diffusion of environmentally friendly technologies.
BRACELL 2030	Sustainable Landscapes and Biodiversity: build regenerative systems that benefit nature, biodiversity and ecosystem services
Tema material	Biodiversity: Strategies, policies, and programs to preserve forests, including the diverse fauna and flora species they harbor, and to prevent deforestation.
Report scope	GRI 3-3 304-1 304-2 304-3 304-4 101 102 103 104		6, 13 and 15	·   Principle 8: undertake initiatives to promote greater environmental responsibility;
BRACELL 2030	Promoting Sustainable Growth: expand our business through increased efficiency, circularity and responsible production
Material topic	Water and effluents: strategies, policies and programs to preserve water and watersheds, reduce water consumption, increase reuse, avoid water-related conflicts, impacts on water availability and/or shortages (whether in our forestry or mill operations), and manage wastewater.
Report scope	GRI 3-3 303-1 303-2 303-3 303-4 303-5	RR-PP-140a.1, RR-PP-140a.2	7, 8, 12 and 13	·   Principle 7: businesses should support a precautionary approach to environmental challenges;
				·   Principle 8: undertake initiatives to promote greater environmental responsibility;
Material topic	Waste management: circular aluminum, reducing waste generation and minimizing landfilling.
Report scope	GRI 3-3 306-1 306-2 306-3 306-4 306-5		7, 8, 12 and 13	·   Principle 7: businesses should support a precautionary approach to environmental challenges;
				·   Principle 8: undertake initiatives to promote greater environmental responsibility;
Material topic	Supplier social and environmental assessment: screening suppliers against social and environmental criteria (environmental compliance, respect for and protection of human rights, labor rights, and children and adolescent rights, and combating slave, forced and child labor).
Report scope	GRI 3-3 2-8 204-1 308-1 308-2 408-1 409-1 414-1 414-2	RR-PP-430a.1	2, 4, 5 and 8	·   Principle 1: businesses should support and respect the protection of internationally proclaimed human rights; and
				·   Principle 2: make sure that they are not complicit in human rights abuses.
				·  Principle 4: the elimination of all forms of forced and compulsory labor;
				·   Principle 5: the effective abolition of child labor;
				·   Principle 7: Businesses should support a precautionary approach to environmental challenges;
				·   Principle 8: undertake initiatives to promote greater environmental responsibility;
BRACELL 2030	Empowering Lives: provide capacity building to our people and communities through transformational initiatives
Material topic	Human rights in the value chain: monitoring and managing human rights compliance in Bracell’s operations. In people management, fostering an environment that supports diversity, inclusion and a sense of belonging for different identities and individual choices, and ensuring employee well-being, health and safety.
Report scope	GRI 3-3 403-1 403-2 403-3 403-4 403-5 403-6 403-7 403-8 403-9 403-10 405-1		1, 2, 4, 5, 8 and 10	·   Principle 3: businesses should uphold the freedom of association and the effective recognition of the right to collective bargaining;   ·   Principle 4: the elimination of all forms of forced and compulsory labor;   ·   Principle 5: the effective abolition of child labor;   ·   Principle 6: the elimination of discrimination in respect of employment and occupation
Material topic	Community engagement: identifying and managing community needs, and building and maintaining close and transparent relationships with stakeholders.
Report scope	GRI 3-3 203-1 203-2 411-1 413-1 413-2		1, 2, 4, 5, 8 and 10	·   Principle 1: businesses should support and respect the protection of internationally proclaimed human rights; and
Material topic	Valuing our human capital: initiatives and programs to develop and recognize our human capital (employees).
Report scope	GRI 3-3 2-7 404-1 404-2 404-3		1, 2, 4, 5, 8 and 10	·  Principle 6: the elimination of discrimination in respect of employment and occupation.

 

Governance and Risk Management
Material topic¹	Compliance, ethical conduct, integrity and transparency: implement good practices consistent with Company policies, applicable laws and regulations and industry standards, and ensure compliance by upholding ethics, integrity and transparency.
Report scope	2-27 205-1 205-2 205-3 206-1			·   Principle 8: undertake initiatives to promote greater environmental responsibility;   ·   Principle 10: businesses should work against corruption in all its forms, including extortion and bribery.
¹ In early 2022, Bracell conducted an exercise to update its materiality matrix – learn more under disclosure GRI 3-1. Bracell’s material topics have been mapped to the relevant Bracell 2030 pillars based on their contribution to Climate, Biodiversity, Human Rights and Sustainable Development.
² Bracell-reported GRI disclosure linked to the relevant material topics.
³ Bracell-reported SASB disclosures.
4 SDGs affected by Bracell’s material topics and Bracell 2030 targets.
5 Global Compact Principle related to the material topic.

 

GRI disclosure for each material topic

Bracell’s reporting on social and environmental performance is based on requirements of the GRI Sector Standard for Agriculture, Aquaculture, and Fishing GRI 13. See below a description of the disclosures under this standard and their corresponding Bracell material topics. GRI 1

Material topic	Sector Standard Disclosure	GRI Disclosure
Topic 13.1 – Emissions	This topic addresses emissions into the air, including greenhouse gas (GHG), ozone-depleting substances (ODS), nitrogen oxides (NOX), sulfur oxides (SOX), and other significant air emissions regarded as pollutants. Emissions can have negative impacts on air quality, ecosystems, and on human and animal health. GHG emissions are also a major contributor to climate change.	Disclosure 3-3 Management of material topics Disclosure 305-2 Energy indirect (Scope 2) GHG emissions 13.1.3 Disclosure 305-3 Other indirect (Scope 3) GHG emissions 13.1.4 Disclosure 305-4 GHG emissions intensity 13.1.5 Disclosure 305-5 Reduction of GHG emissions 13.1.6
Topic 13.2 Climate adaptation and resilience (within the scope of the material topic Climate change)	Organizations contribute to climate change and are simultaneously affected by it. Climate adaptation and resilience refer to how an organization adjusts to current and anticipated climate change-related risks, as well as how it contributes to the ability of societies and economies to withstand impacts from climate change.	Disclosure 3-3 Management of material topics 13.2.1 Disclosure 201-2 Financial implications and other risks and opportunities due to climate change 13.2.2
Topic 13.3 Biodiversity	Biodiversity is the variability among living organisms. It includes diversity within species, between species and of ecosystems. Biodiversity not only has intrinsic value, but is also vital to human health, food security, economic prosperity, and mitigation of climate change and adaptation to its impacts. This topic covers impacts on biodiversity, including on plant and animal species, genetic diversity, and natural ecosystems.	Disclosure 3-3 Management of material topics 13.3.1 Disclosure 304-1 Operational sites owned, leased or managed in or adjacent to protected areas and areas of high biodiversity value outside protected areas 13.3.2 Disclosure 304-2 Significant impacts of activities, products, and services on biodiversity 13.3.3 Disclosure 304-3 Habitats protected or restored 13.3.4 Disclosure 304-4 IUCN Red List species and national conservation list species with habitats in areas affected by the organization’s operations 13.3.5
Topic 13.7 Water and effluents	Recognized as a human right, access to fresh water is essential for human life and well-being. The amount of water drawn and consumed by an organization and the quality of its discharges can have impacts on ecosystems and people. This topic covers impacts related to the drawing and consumption of water and the quality of water discharged.	Disclosure 3-3 Management of material topics 13.7.1 Disclosure 303-1  Interactions with water as a shared resource 13.7.2 Disclosure 303-2 Management of water discharge-related impacts 13.7.3 Disclosure 303-3 Water withdrawal 13.7.4 Disclosure 303-4 Water discharge 13.7.5 Disclosure 303-5 Water consumption 13.7.6
Topic 13.8 Waste	Waste refers to anything that a holder discards, intends to discard, or is required to discard. When inadequately managed, waste can have negative impacts on the environment and human health, which can extend beyond the locations where waste is generated and discarded. This topic covers impacts from waste and the management of waste.	Disclosure 3-3 Management of material topics 13.8.1 Disclosure 306-1 Waste generation and significant waste-related impacts 13.8.2 Disclosure 306-2 Management of significant waste-related impacts 13.8.3 Disclosure 306-3 Management of significant waste-related impacts 13.8.4 Disclosure 306-4 Waste diverted from disposal 13.8.5 Disclosure 306-5 Waste directed to disposal 13.8.6
Topic 13.12 Local communities	Local communities comprise individuals living or working in areas that are affected or that could be affected by an organization’s activities. An organization is expected to conduct community engagement to understand the vulnerabilities of local communities and how they may be affected by the organization’s activities. This topic covers socioeconomic, cultural, health, and human rights impacts on local communities.	Disclosure 3-3 Management of material topics 13.12.1 Disclosure 413-1 Operations with local community engagement, impact assessments, and development programs 13.12.2 Disclosure 413-2 Operations with significant actual and potential negative impacts on local communities 13.12.3
Topic 13.14 Rights of indigenous peoples (within the scope of the material topic Community relations)	Indigenous peoples are at higher risk of experiencing negative impacts more severely as a result of an organization’s activities. Indigenous peoples have both collective and individual rights, as set out in the United Nations Declaration on the Rights of Indigenous Peoples and other authoritative international human rights instruments. This topic covers impacts on the rights of indigenous peoples.	Disclosure 3-3 Management of material topics 13.14.1 Disclosure 411-1 Incidents of violations involving rights of indigenous peoples 13.14.2
Topic 13.15 Non-discrimination and equal opportunity (within the scope of the material topic Human rights in the value chain)	Freedom from discrimination is a human right and a fundamental right at work. Discrimination can impose unequal burdens on individuals or deny fair opportunities on the basis of individual merit. This topic covers impacts from discrimination and an organization’s practices related to equal opportunity.	Disclosure 3-3 Management of material topics 13.15.1 Disclosure 405-1 Diversity of governance bodies and employees 13.15.2 Disclosure 405-2 Ratio of basic salary and remuneration of women to men 13.15.3 Disclosure 406-1 Incidents of discrimination and corrective actions taken 13.15.4
Topic 13.16 Forced or compulsory labor (within the scope of the material topic Human rights in the value chain)	Forced or compulsory labor is work or service which is exacted from any person under the menace of penalty and for which a person has not offered themselves voluntarily. Freedom from forced labor is a human right and a fundamental right at work.	Disclosure 3-3 Management of material topics 13.16.1 Disclosure 409-1 Operations and suppliers at significant risk for incidents of forced or compulsory labor 13.16.2
Topic 13.17 Child labor (within the scope of the material topic Human rights in the value chain)	Child labor is defined as work that deprives children of their childhood, their potential, and their dignity, and that is harmful to their development, including by interfering with their education. It is a violation of human rights and can lead to lifelong negative impacts. Abolition of child labor is a fundamental principle and right at work.	Disclosure 3-3 Management of material topics 13.17.1 Disclosure 408-1 Operations and suppliers at significant risk for incidents of child labor 13.17.2
Topic 13.19 Occupational health and safety (within the scope of the material topic Human rights in the value chain)	Healthy and safe work conditions are recognized as a human right. Occupational health and safety involves the prevention of physical and mental harm to workers and promotion of workers’ health. This topic covers impacts related to workers’ health and safety.	Disclosure 3-3 Management of material topics 13.19.1 Disclosure 403-1 Occupational health and safety management system 13.19.2 Disclosure 403-2 Hazard identification, risk assessment, and incident investigation 13.19.3 Disclosure 403-3 Occupational health services 13.19.4 Disclosure 403-4 Worker participation, consultation, and communication on occupational health and safety 13.19.5 Disclosure 403-5 Worker training on occupational health and safety 13.19.6 Disclosure 403-6 Promotion of worker health 13.19.7 Disclosure 403-7 Prevention and mitigation of occupational health and safety impacts directly linked by business relationships 13.19.8 Disclosure 403-8 Workers covered by an occupational health and safety management system 13.19.9 Disclosure 403-9 Work-related injuries 13.19.10 Disclosure 403-10 Work-related ill health 13.19.11
Topic 13.22 Economic inclusion (within the scope of the material topic Community relations)	Economic inclusion concerns an organization’s impacts on access to economic opportunities for local communities and the productive potential of actual and possible suppliers. This topic covers an organization’s approach to economic inclusion of farmers and fishers, and their communities.	Disclosure 3-3 Management of material topics Disclosure 203-1 Infrastructure investments and services supported 13.22.3 Disclosure 203-2 Significant indirect economic impacts 13.22.4
Topic 13.25  Anti-competitive behavior (within the scope of the material topic Compliance, ethical conduct, integrity and transparency)	Anti-competitive behavior refers to actions by an organization that can result in collusion with potential competitors, abuse of dominant market position or exclusion of potential competitors, thereby limiting the effects of market competition. This can include fixing prices or coordinating bids, creating market or output restrictions, imposing geographic quotas, and allocating customers, suppliers, geographic areas, or product lines. This topic covers impacts as a result of anti-competitive behavior.	Disclosure 3-3 Management of material topics Disclosure 206-1 Legal actions for anti-competitive behavior, anti-trust, and monopoly practices 13.25.2
Topic 13.26 Anti-corruption (within the scope of the material topic Compliance, ethical conduct, integrity and transparency)	Anti-corruption refers to how an organization manages the potential of being involved with corruption. Corruption is practices such as bribery, facilitation payments, fraud, extortion, collusion, money laundering, or the offer or receipt of an inducement to do something dishonest or illegal. This topic covers the potential for corruption to occur and the related impacts.	Disclosure 3-3 Management of material topics Disclosure 205-1 Operations assessed for risks related to corruption 13.26.2 Disclosure 205-2 Communication and training about anti-corruption policies and procedures 13.26.3 Disclosure 205-3 Confirmed incidents of corruption and actions taken 13.26.4

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.

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.

Human rights in the value chain is a material topic for Bracell encompassing monitoring and managing human rights compliance in Bracell’s operations. In people management, fostering an environment that supports diversity, inclusion and a sense of belonging for different identities and individual choices, and ensuring employee well-being, health and safety.

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

In 2023 we published a Human Resources Policy that formalizes Bracell’s commitment to sustainable development and best practices that positively impact people and communities. The Policy requires that Bracell respect the dignity and human rights of its employees, contractors, and subcontractors, as well as the rights of indigenous peoples and local and traditional communities. It establishes guidelines on business conduct and on managing human rights impacts, ensuring we deliver on our commitment to maintaining sound labor practices and decent working conditions.

Bracell’s internal labor policies are aligned with international certification requirements and Brazilian laws and regulations, in particular the Regulatory Standards (NRs) of the Ministry of Labor and Employment. The official channels available for handling human rights-related reports, grievances and concerns are amply communicated (read more in GRI 2-25).

Corporate policies—including our Code of Conduct, Procurement Ethics Code, Human Rights Policy, Sustainability Policy and Pulpwood and Fiber Sourcing Policy—provide guidance to stakeholders 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.

We also continuously monitor the areas surrounding our eucalyptus plantations to protect human rights in neighboring communities, as part of our pulpwood traceability process.

With the commissioning of our two flexible lines at our Lençóis Paulista (SP) site, we have expanded our forestry operations in the region and some local residents on a particular property have been resettled as a result.

This process is managed in compliance with International Finance Corporation (IFC) Performance Standard 5 – Land Acquisition and Involuntary Resettlement. Within this front, Bracell also manages and works to prevent and/or mitigate the social risks to which workers and their families may be exposed.

Every six months on average, Bracell undergoes an independent audit on compliance with social and environmental standards, including the IFC Performance Standards.

To minimize actual impacts on communities surrounding the mill, we use an approach that includes community mapping, advertising official communication channels, and managing and addressing community concerns.

Bracell also actively manages and works to prevent and/or promptly mitigate the social risks to which workers and their families may be exposed.

The Company’s internal regulations comply with international certifications and Brazilian legislation, in particular the Regulatory Standards (NRs) of the Ministry of Labor and Employment. We also publicize our official channels for receiving reports, complaints and concerns (learn more at Disclosures GRI 2-25).

Community engagement is a material topic for Bracell encompassing identifying and managing community needs, and building and maintaining close and transparent relationships with stakeholders.

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

Promoting women’s entrepreneurship in communities

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. As part of these practices, we:

• 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;
• Support local initiatives and help to address local needs;
• 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 communities and 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 are 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.

Read more about our local community engagement practices in GRI 413-1.

Our Community Relations guidelines are informed by an exercise to identify and review social aspects and impacts in our operations, requests and concerns raised through our communication channels, and assessments conducted by Bracell.

Biodiversity is a material topic for Bracell which embraces strategies, policies, and programs to preserve forests, including the diverse fauna and flora species they harbor, and to prevent deforestation.

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

Conservation of 230,000 ha of native forests 

Protection of endemic and threatened species

Support for the reintroduction of animals into the wild

Scientific research  on biodiversity conservation

Protecting forests and biodiversity is intrinsic to our business. In our forestry operations, we implement strategies to protect native vegetation and biodiversity in the Caatinga, Cerrado and Mata Atlântica biomes hosting our operations.

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.

Bracell’s eucalyptus plantations are always established on land previously used for crops or as pastureland. Bracell has 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 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
• Implementing Natural Pest Control through 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; and
• Conserving protected areas and biodiversity. Bracell has no operations in Protected Areas or Legal Reserves or on peatlands.

One-For-One Commitment

In 2022, we launched our One-For-One Commitment—the first initiative of its kind in the pulp industry. Under this commitment, we have pledged to support the preservation of native vegetation in an area the same size as our eucalyptus plantations. Every hectare of eucalyptus forests we plant will be matched with another hectare of preserved native vegetation.

This industry-first initiative builds on our efforts to expand biodiversity beyond our fence line. Our One-For-One pledge is a permanent commitment. If we expand our eucalyptus plantations post 2025, we will proportionately expand our protected areas by a One-For-One ratio.

In addition to preserving existing native vegetation in our forestry areas, this commitment supports conservation efforts on public land and the restoration of disturbed land through partnerships with governments and other organizations. As part of the initiative, we also help to prevent and respond to forest fires, deforestation, theft of native timber, poaching, and illegal trafficking in wild animal species.

Through public partnerships at the federal, state and municipal levels, we provide services or materials to different types of protected areas, such as parks, ecological stations, and wildlife refuges. We may also establish partnerships with private landowners to support conservation on Private Natural Heritage Reserves (RPPN) or to restore disturbed land.

In both cases, the partnerships are designed on the basis of criteria such as location, strategy and the conservation priorities of each party. Through these partnerships, we are able to provide effective support to efforts to protect the environment and conserve or enhance biodiversity and ecosystem services, while also helping to mitigate climate change through carbon sequestration in our own or partner-managed forests.

2023 Highlights

In 2023, Bracell:

• Signed a ten-year commitment with the São Paulo Forest Foundation to sponsor environmental protection initiatives in significant Atlantic Forest and Cerrado formations.
• Signed a mutual cooperation agreement with the Bahia State Environmental Department (SEMA) and the Mato Grosso do Sul Environmental Institute (IMASUL) to support conservation and protected area management and to safeguard natural heritage by conserving fauna and flora species, protecting water resources, and enhancing carbon sequestration in forest formations.
• Benefited 11 protected areas in São Paulo: Sebastião Aleixo Ecological Station and Aimorés Wildlife Refuge – Botanical Garden, in Bauru; Caetetus Ecological Station, in Gália; Santa Bárbara Ecological Station, in Águas de Santa Bárbara; Barreiro Rico Ecological Station, in Anhembi; Carlos Botelho State Park, in São Miguel Arcanjo; Nascentes do Paranapanema State Park, in Capão Bonito; Avaré Ecological Station, in Avaré; Paranapanema Ecological Station, in Paranapanema; Angatuba Ecological Station, in Angatuba; and Itapeva Ecological Station, in Itapeva.
• Delivered the detailed design of a primate bridge to allow primates to safely cross roads and prevent them from becoming islanded in the Barreiro Rico Ecological Station, in the Municipality of Anhembi (SP);
• Developed studies and recommendations for controlling invasive species having adverse impacts on local biodiversity and for remote monitoring of wildlife using recorders and camera traps, helping to identify species and monitor environmental quality indicators.

92% of One-for-One Commitment achieved

Integrated Landscape Management

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.”

This initiative directly supports our Bracell 2030 commitment to develop an integrated territorial intelligence system to manage natural capital and maintain sustainable landscapes throughout our area of influence. We use an innovative methodology that intersects 19 indicators in an integrated and holistic approach spanning three dimensions: conservation, restoration of native vegetation, and land use.

Biodiversity initiatives and commitments

• TNFD: in 2022 we became signatories of the Taskforce on Nature-related Financial Disclosure (TNFD) as members of the CEBDS Action for Nature Platform, which we joined in 2021. This initiative aims to drive accountability and real change in the way natural resources are managed in the territories where participating companies operate.
• CEBDS: as members, we have committed to take biodiversity into consideration as a pillar of our sustainability strategy, ensuring that we (see our targets here):
  • Manage risks and prevent impacts on biodiversity;
  • Promote biodiversity in our value chain;
  • Conduct R&D on biodiversity conservation;
  • Monitor fauna and flora;
  • Disclose biodiversity data;
  • Disseminate biodiversity information;
  • Implement a biodiversity conservation and rehabilitation plan; and
  • Implement initiatives to promote biodiversity in partnership with stakeholders.
• Mutual Cooperation Agreement on Biodiversity: we have established a mutual cooperation agreement with the Bahia State Environment Department (SEMA) to implement initiatives to protect biodiversity and Atlantic Forest formations.
• Fundação Florestal: we have signed a ten-year sponsorship 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 Environmental Institute (IMASUL): Bracell has signed a technical cooperation agreement with IMASUL to support conservation initiatives in areas harboring native vegetation.
• Empresa Amiga da Mata Atlântica (“Friends of the Atlantic Forest”): Bracell has recently joined this initiative, led by the National Council of the Atlantic Forest Biosphere Reserve (RBMA). As a member, we support the conservation and sustainable use of this biome.
• Atlantic Forest Restoration Pact: a voluntary initiative that aims to restore 15 million hectares by 2050. The Pact addresses restoration methods, partners and research, as well as interaction with other initiatives that can use our models as a blueprint.
• SOS Mata Atlântica: Bracell is a partner and has committed to restoring 30 hectares in protected areas and legal reserves, helping to form wildlife corridors to enhance biodiversity and water quality.

Bracell does not engage in initiatives involving the sharing of benefits.

 

Climate change is a material topic for Bracell’s sustainability management, encompassing planning, policies and actions for mitigating greenhouse gas (GHG) emissions, operating in a low-carbon economy and adapting to a world with higher average global temperatures (see GRI 201-2 for related risks and opportunities).

Bracell’s Sustainability Steering Committee is responsible for making decisions regarding climate business and initiatives and presenting the company’s overall strategic planning for the short, medium, and long term in this area. Bracell is advancing its climate journey by creating a corporate GHG inventory and environmental targets and planning actions for its operations, all integral to the Bracell 2030 commitment and goals.

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

75% reduction in carbon emissions per ton of product

25 MtCO₂e removed from the atmosphere between 2020 and 2030

Our 2030 climate goals were developed based on an analysis of the risks and impacts – both positive and negative – that Bracell’s operations have on climate change. Our operations emit scope 1, 2, and 3 GHGs, but also capture CO₂ from the atmosphere by growing and preserving forest areas managed by Bracell, including planted eucalyptus forests and native forests set aside for conservation.

We will begin monitoring the progress of our 2030 climate goals in 2024 and report the progress in our Sustainability Report.  Bracell also carries out operational practices that positively impact the climate agenda.  The key initiatives include:

Climate action	Self-sufficient generation capacity – we have on-site 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.
	Transition from fossil fuels to renewable fuels – At our Lençóis Paulista site, we use biomass from sustainably managed forests to produce syngas in biomass gasifiers. This renewable energy source is fed to our lime kilns as replacement of traditional fossil fuels.
	Oil-to-natural gas retrofit – using advanced engineering and technology, we have initiated a project to replace oil with natural gas in the oldest production line at our Lençóis Paulista site.
	Electric forklifts and trucks – our operations are deploying electric forklifts running on renewable electricity produced on-site in Lençóis Paulista. In addition, we are expanding our fleet of electric trucks—the first electric heavy-haul vehicles (40+ tons) to be deployed in this type of operation—to further reduce GHG emissions.
	Ongoing climate-focused improvements – our dedicated continuous improvement team employs agile methodologies (Kaizen) to drive climate-related projects. Reducing greenhouse gas emissions is a key focus of our current Kaizen initiatives. We also participate in decarbonization forums to explore and deploy new technologies and best practices across the company.
	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 monitoring towers in both eucalyptus plantations and native forests across São Paulo, Mato Grosso do Sul, and Bahia.
	Participation in the CEBDS Net Zero Platform– we are actively involved in the CEBDS program to accelerate climate action within the corporate sector.
	GHG Protocol – our greenhouse gas emissions inventories are published on the Brazilian GHG Protocol Public Emissions Registry platform.
	External verification of GHG Inventories – our greenhouse gas emissions inventories, covering Scopes 1, 2, and 3, undergo external audits and verification.

GHG Inventory reporting

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

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.

Learn more at About Bracell.

 

Forestry R&D, risk management and climate change impacts

Our forest research and development department operates in two strategic areas that strengthen the management of climate change risks and impacts, which could jeopardize business and operational continuity.

Classical genetic improvement

Through classical genetic improvement, we develop non-genetically modified clones, aiming to sustain and expand the productivity of our planted eucalyptus forests and make our nurseries more efficient in seedling production.

Clones are developed to improve the IMA (average annual increment), which are measured in cubic meters of wood per hectare per year.

Forestry research

This entails the studying of soil, nutrition and protection of forests. The production of natural enemies to combat plant pests and diseases is an example of our work here.

Forest R&D initiatives focused on mitigating climate change risks and impacts
Biological control using natural enemies	We employ biological control as a sustainable alternative to chemical pesticides, significantly reducing N2O emissions. In 2023, we produced 65 million natural enemies.
Climate zoning studies	We continuously conduct climate zoning studies using historical climate data such as precipitation, temperature, and latitude. This analysis helps us identify optimal areas for eucalyptus planting and make climate region-specific technical recommendations, including clone allocation and fertilization strategies.
Carbon balance	We updated our carbon balance estimation database.  This information was used to develop our 2030 carbon removal goal.  The carbon removal estimation study was conducted by the Forestry R&D department in conjunction with Forest Planning and Sustainability (see about our carbon balance in GRI disclosure 305).

Carbon and water flux monitoring

As part of our Bracell 2030 goals, we are installing five flux monitoring towers in eucalyptus plantations and native forests. Three towers will be installed in the short term—one in São Paulo and two in Bahia.

Through our Forestry R&D department, we are actively participating in the Eucflux-IPEF Cooperative Program, which monitors these environmental phenomena. One of these flux towers is located in a Bracell eucalyptus plantation in Itatinga, São Paulo. The program, led by the Brazilian Institute for Forest Research and Studies (IPEF) and Centre de Coopération Internationale en Recherche Agronomique pour le Développement (CIRAD), was launched in 2007. It includes various affiliated companies in the pulp sector, including Bracell, and academic institutions such as the Federal University of Lavras (UFLA), São Paulo State University (UNESP), and the University of São Paulo (ESALQ/USP).

Clean-energy logistics

In 2023, we conducted tests with electric trucks to transport pulp from our mill in Lençóis Paulista (SP) to the Intermodal Terminal in Pederneiras (SP). This initiative is unprecedented in Brazil for heavy vehicles weighing over 40 tons and will ease GHG emissions from this operation.

At the Port of Santos in São Paulo, we also made investments to intensify the use of renewable energy in our energy matrix.  The new Bracell terminal features electric gantry cranes – used for moving large loads. They are not powered by fossil fuels and have a static capacity of 126,000 tons, representing about half of the volume produced in São Paulo state in a month.

Energy efficiency is a material topic for Bracell, encompassing efficient energy consumption from clean (renewable) sources.

We invest in processes and technologies to ensure the efficient use of energy in our operations, prioritizing renewable sources of generation. The company has targets for reducing greenhouse gas emissions by 2030 and policies and actions to mitigate this impact, aiming to establish low-carbon production.

Reducing energy intensity, efficient energy use, and investing in a low-carbon matrix are Bracell initiatives to ease its greenhouse gas emissions (see more in GRI Content 305). 

Bracell’s plants in Bahia and São Paulo are energy self-sufficient. The company has recovery boilers that produce the steam fed to turbine-generator sets to generate electricity.

In the mills, national grid energy is only used occasionally during general maintenance stoppages.  Energy is also purchased for forestry operations and nurseries, where diesel also fuels power generators.

Renewable generation

The new flexible lines in Lençóis Paulista (SP) are equipped with a biomass boiler that generates renewable energy from eucalyptus biomass, composed of trimmings from the plant and other substances originating from the production of dissolving pulp, including black liquor.

These lines were developed to operate free of fossil fuels and to generate clean energy for the Brazilian market, which receives the surplus from Bracell’s mill.

The site has a 440kV substation with an installed capacity of 409 MW, enough to supply electricity to 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.

In 2023, Bracell received International Renewable Energy Certificates (I-RECs) as proof that the electricity sold from its on-site generation facilities in Lençóis Paulista (SP) is renewably sourced.

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.

Waste management is a material topic for Bracell’s sustainability management, encompassing circular aluminum, reducing waste generation and minimizing landfilling.

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

90% reduction in industrial solid waste sent to landfills per ton of product;

97% chemical  recovery in  our operations

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

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

Our Waste Management Policy aligns with the Brazilian National Waste Management Policy (PNRS). We ensure compliance at all times with our Environmental Policy and Waste Management Plan (PGRS). Waste is among the KPIs that is tracked within our Integrated Management System and reported to employees throughout the year so they can keep up to date on our performance.

 

Water and effluents are a material topic for Bracell encompassing strategies, policies and programs to preserve water and watersheds, reduce water consumption, increase reuse, avoid water-related conflicts, impacts on water availability and/or shortages (whether in our forestry or mill operations), and manage wastewater.

In 2023, Bracell announced its set of long-term sustainability targets and commitments titled “Bracell 2030”, which includes specific Delivering Sustainable Growth target:

47% reduction in water consumption per ton of product

Water and effluents are managed within a Water Resource Monitoring Program that is governed by requirements in our Sustainability Policy. Through this program, we implement measures to monitor and continuously improve water resource efficiency.

The Bahia mill maintains an internal tool to guage issues and impacts associated with its activities, certified in ISO14001/2015. This tool identifies critical water consumption points in the mill, defining specific controls such as consumption limits and reuse/reduction strategies.

The water sourced in the São Paulo milling operation comes from six deep cased wells and from the Tietê River, located 22 km from the mill, as well as the release of treated effluents. Bracell has a Water Resources Monitoring Plan with records of volumes withdrawn in order to comply with the environmental licenses and permits. The industrial operation has a system to reuse as much water as possible in its process, so as to reduce the need for water withdrawal to a minimum.

Membership of watershed committees

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

• North Recôncavo and Inhambupe Watershed Committee (Bahia);
• Paranapanema Watershed Committee (CGBH-RL);
• São Paulo State Watershed Modeling and Monitoring Program (PROMAB), run by the Forest Research Institute (IPEF);
• PROMAB, a 25-year monitoring program in Bahia.

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

Compliance, ethical conduct, integrity and transparency is a material topic for Bracell encompassing the implementation of good practices consistent with Company policies, applicable laws and regulations and industry standards, and ensure compliance by upholding ethics, integrity and transparency.

Bracell’s Code of Conduct is aligned with our Mission, Vision and our T.O.P.I.C.C Core Values; (Complementary teams, Ownership, People, Integrity, Customers, Continuous Improvement). It reflects our commitment to upholding globally recognized standards of ethics in our processes and practices, and to nurturing ethical mindsets among our employees and suppliers, and in our relations with stakeholders.

The Code of Conduct establishes guidelines for ethical conduct and embodies our commitment to maintaining ethical global business standards in daily processes and practices, as well as establishing the criteria for ethical behavior and integrity of employees, suppliers, customers and all our stakeholders.

Our Code of Conduct is shared with all of our employees at the moment of integration, soon after their admission. We also provide employees with self-training on RGE’s Code of Conduct to reinforce its guidelines.

Read here Bracell’s Code of Conduct.

Bracell operates in strict accordance with the RGE Group Global Anti-bribery and Anti-Corruption Policy and its principles and guidelines for ensuring compliance with applicable anti-bribery and anti-corruption laws, including Brazilian laws.

Bracell’s compliance culture stresses, among other things, that any failure to comply with these laws can result in civil and criminal liability both for the RGE Group and for the people involved, as well as significant reputational damage for RGE group and Bracell.

To ensure transparency, we regularly report to our stakeholders and the broader market on the key outcomes from our management of material topics, as prioritized in consultations of internal and external stakeholders (read more about the materiality process under GRI 3-2 and about Bracell’s material topics under GRI 3-3).

Culture of ethics and integrity

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).

 

In 2023 there were no significant social or environmental impacts from our operations. Bracell seeks to augment the positive effects of its operations and activities while mitigating or minimizing negative impacts.  To achieve this, 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;
• Determine 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.

Practices as part of our approach to managing risks and preventing potential impacts on biodiversity

• Monitoring changes resulting from forestry operations—annually for fauna and every two years for flora (in our Bahia operations); every three years for fauna and every five years for flora (in our São Paulo operations).
• Fauna monitoring during logging and skidding operations—if any animals remain in the area and are in danger, they are scared off, rescued, or transported to the nearest reserve.
• Planting eucalyptus only in areas previously used for agricultural crops or pastures. Bracell does not convert native forests in accordance with our sustainability policy guidelines, and we have considered deforestation to be conversion of native areas since July 2008, in accordance with Law no. 12,651 (May 25, 2012), the Brazilian Forest Code.
• Monitoring of potential impacts in adjacent areas, such as protected areas and legal reserves—by field employees themselves, via satellite imagery and drones and during fauna and flora monitoring programs. No impacts have been observed so far during biodiversity monitoring, thanks to good forestry practices.
• Not introducing invasive species, pests, and pathogens, and not introducing changes in ecological processes outside the natural range of variation.
• Analyzing water quality in representative management units to monitor for any changes in physical and chemical properties and to determine whether these occurred as a result of forestry operations, aiming to prevent, minimize, and mitigate negative impacts on water bodies.
• Systematically monitoring diesel-powered vehicles and machinery which may cause air pollution, in accordance with applicable regulations.
• Handling and labeling chemicals in accordance with applicable regulations, regulatory standards, and certification standards.
• Identifying activities deemed to have the greatest potential impact on biodiversity, such as forest establishment, harvesting, and transportation, as identified in our Matrix of Environmental Aspects and Impacts (AIA).

Bracell also has a program to eradicate exotic plant species (species that do not naturally belong to the biome). Through this initiative, we remove species that have negative impacts on the natural dynamics of ecological succession of native vegetation on Company properties. We also have a Disturbed Land Rehabilitation Program in which we restore local native vegetation. To ensure successful recovery in synergy with natural ecological processes, we also incorporate—in addition to conventional planting of native seedlings—techniques such as placing organic material and nucleation, for a more efficient recovery process (learn more in GRI 3-3 Management of the material topic Biodiversity).

In 2023 there were no significant social or environmental impacts from our operations. Bracell seeks to augment the positive effects of its operations and activities while mitigating or minimizing negative impacts.  To achieve this, 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;
• Determine 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.

Practices as part of our approach to managing risks and preventing potential impacts on biodiversity

• Monitoring changes resulting from forestry operations—annually for fauna and every two years for flora (in our Bahia operations); every three years for fauna and every five years for flora (in our São Paulo operations).
• Fauna monitoring during logging and skidding operations—if any animals remain in the area and are in danger, they are scared off, rescued, or transported to the nearest reserve.
• Planting eucalyptus only in areas previously used for agricultural crops or pastures. Bracell does not convert native forests in accordance with our sustainability policy guidelines, and we have considered deforestation to be conversion of native areas since July 2008, in accordance with Law no. 12,651 (May 25, 2012), the Brazilian Forest Code.
• Monitoring of potential impacts in adjacent areas, such as protected areas and legal reserves—by field employees themselves, via satellite imagery and drones and during fauna and flora monitoring programs. No impacts have been observed so far during biodiversity monitoring, thanks to good forestry practices.
• Not introducing invasive species, pests, and pathogens, and not introducing changes in ecological processes outside the natural range of variation.
• Analyzing water quality in representative management units to monitor for any changes in physical and chemical properties and to determine whether these occurred as a result of forestry operations, aiming to prevent, minimize, and mitigate negative impacts on water bodies.
• Systematically monitoring diesel-powered vehicles and machinery which may cause air pollution, in accordance with applicable regulations.
• Handling and labeling chemicals in accordance with applicable regulations, regulatory standards, and certification standards.
• Identifying activities deemed to have the greatest potential impact on biodiversity, such as forest establishment, harvesting, and transportation, as identified in our Matrix of Environmental Aspects and Impacts (AIA).

Bracell also has a program to eradicate exotic plant species (species that do not naturally belong to the biome). Through this initiative, we remove species that have negative impacts on the natural dynamics of ecological succession of native vegetation on Company properties. We also have a Disturbed Land Rehabilitation Program in which we restore local native vegetation. To ensure successful recovery in synergy with natural ecological processes, we also incorporate—in addition to conventional planting of native seedlings—techniques such as placing organic material and nucleation, for a more efficient recovery process (learn more in GRI 3-3 Management of the material topic Biodiversity).

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.

Bracell climate-change risks include those directly linked to our activities, such as those associated with climate patterns – physical risks like rising temperatures, lower water availability due to lower rainfall levels and extreme weather events that impact Bracell’s operations.  Regulatory risks, such as the enactment of legislation, technical standards and other regulatory norms that may affect the business, are also considered.

Due to confidentiality reasons, Bracell does not disclose financial information regarding the calculation of financial costs involved or projections of revenue for mitigating these risks.

Bracell Social reflects our commitment to carry out our activities in harmony with neighboring communities, respecting their habits, customs, and traditions, building relationships based on mutual trust.

Through Bracell Social, we develop enabling projects in our communities in the areas of education, entrepreneurship, and civic engagement:

• Education: Bracell sees education as the cornerstone for societal development. Through projects and initiatives that engage both children and adults across various locations, our efforts make a substantial contribution to improving 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 by creating learning environments 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.
• Enhancement: developed to promote well-being and civic engagement in the communities around our facilities, the well-being pillar provides people with free leisure, culture, health promotion, and citizenship activities.

Bracell Social Pillar	NUMBER OF PROJECTS
	2021	2022	2023
Education	4	7	11
Empowerment	18	8	10
Enhancement	4	16	18
Total	26	31	39
Bracell Social Pillar	PEOPLE REACHED
	2021	2022	2023
Education	31,878	34,509	72,764
Empowerment	19,022	15,616	26,012
Enhancement	51,165	71,715	65,232
Total	102,065	121,840	164,008
Bracell Social Pillar	INVESTMENT
	2021	2022	2023
Education	R$1,193,384.00	R$1,596,974.19	R$ 3,755,301.30
Empowerment	R$1,872,795.11	R$1,818,182.57	R$ 2,712,761.37
Enhancement	R$1,066,994.24	RS1,019,777.47	R$ 2,571,486.65
Total	R$4,133,173.35	R$4,434,934.23	R$ 9,039,549.32

 

Bracell 2030’s Empowering Lives pillar establishes a set of targets aimed at building a social legacy for the future. To achieve these targets, we will:

• Promoting women’s entrepreneurship in communities – at least 60% of “impact business” social projects supported by Bracell must be led by women
• Promoting income generation for families and communities – increase the income of families that participate in Bracell’s income generation projects in priority areas by 20%
• Promoting quality public education – increase proficiency in Portuguese and Mathematics by 30% in public schools supported by Bracell in areas with low learning rates

Bracell works to promote women’s entrepreneurship in the communities where it operates. By 2030, 60% of the high-impact business projects we support will be led by women.

Through Bracell Social and its three pillars, Education, Empowerment and Enhancement, our social investment platform, we support enabling projects in local communities

Bracell Social’s Empowerment project.ts support individual and collective autonomy by creating new sources of income in communities. This is achieved through investment in training and technical assistance, leadership development, promotion of cooperativism, and equal access to social participation mechanisms through calls for projects and public-private partnerships.  Below are some of the outcomes of Bracell’s most significant Empowerment projects.

Project (Bahia)	Municipalities	Positive impact	Stakeholders impacted
Impactful Business (FNI)	Alagoinhas, Araçás, Aramari, Entre Rios, Inhambupe, Esplanada, Olindina and Pojuca (eight municipalities).	R$ 288,778.10 in income generated by eight special productive groups through the sale of their products. R$ 270,000.00 in income generated by the quilombola community of Mato Limpo (Araçás) from egg sales to public schools via the Brazilian Food Supply Corporation (CONAB). Quilombola Family Farming Label awarded to products from the Ajarquiba (Esplanada) and Delícias de Mato Limpo (Araçás) quilombola groups. Secured a sanitary and operational permit for a production facility operated by the Delícias do Mato Limpo group (Araçás). Secured registration with the National Family Farming Register (CAF Jurídica) for the Delícias do Mato Limpo (Araçás) and Ajarquiba (Esplanada) groups. Five groups are selling products at Expofavela Bahia, a state trade fair organized by Central Única das Favelas (CUFA) in Lauro de Freitas; Five groups are selling products at the 14th Bahia Family Farming and Social Economy Fair, organized by the Government of the State of Bahia in Salvador. The Ajarquiba Association (Esplanada) was selected to manage the Bahia North Coast and Agreste Produce Outlet at the Fair. Number of training hours: 896	18 associations and production groups from the North Coast and Agreste regions of Bahia were assisted with tax and accounting services; Eight groups benefited from assistance in formalizing sales of their produce; 175 members of special production groups directly reached, of which 120 are women.
Pollinators	Alagoinhas, Entre Rios and Esplanada.	753 queen bees distributed to beekeepers to support increased productivity; 80 hives georeferenced in Bracell-owned native forest areas; Developed and promoted a Bahia North Coast and Agreste Beekeeping Calendar, an educational guide on beekeeping practices.   188 hours of technical assistance provided to small-scale beekeeping producers; 68 hours of theoretical and hands-on training on topics such as queen bee rearing, propolis production, and mead production.	947 people reached through training activities, including beekeepers and interested parties. 81 beekeepers registered in communities within Bracell’s areas of influence.
Women Farmers	Santo Amaro and São Sebastião do Passé	Nine communities benefited by new social income-generating technologies (bioponics and hydroponics; collective chicken coops and community kitchens). 323 hours of training. Start of production and produce sales, including at the 8th São Sebastião do Passé Family Farming and Social Economy Fair.	1,733 people reached directly and indirectly through project activities;   59 women engaged in business development training and initiatives;   9 associations and/or collectives supported in the Recôncavo region of Bahia.
Nós do Campo (“In the Field”)	Eight municipalities in the North Coast and Agreste of Bahia: Alagoinhas, Cardeal da Silva, Conde, Entre Rios, Esplanada, Itanagra, Mata de São João e Rio Real.	12 communities reached.   412 hours of training for small farmers and students. Five new Agroforestry Systems (AFS) implemented in 2023, totaling 15 AFSs set up since project launch; Held two editions of the Bracell Social Agroecological Fair, for marketing AFS produce;   Bracell is a member of the RGE group and, as a privately-held entity, our governance policies are aligned with RGE group standards and practices (learn more in GRI 2-9).	419 farmers; 9 teachers from the Federal Institute of Science and Technology of Bahia (Alagoinhas); 188 students from the Federal Institute of Science and Technology of Bahia (Alagoinhas); 12 communities reached; 8 municipalities reached.
Ponteira Sustentável (Sustainable Leftovers)	Alagoinhas, Araçás, Aramari, Cardeal da Silva, Conde, Crisópolis, Entre Rios, Esplanada, Inhambupe, Itanagra, Jandaíra, Ouriçangas, Rio Real and Sátiro Dias	R$ 20,706.48 in income generated by project initiatives. Created a Mixed Cooperative of Rural Workers and Farmers in the North Coast and Agreste of Bahia (COOPNORTE/BA), supporting the economic autonomy of communities and improving wood waste collection workflows on Company properties. R$ 13,969,275.25 in income generated by the project.	7,988 people; 65 communities; 14 municipalities.

 

Projects (São Paulo)	Municipalities	Positive impact	Affected stakeholders
Nós do Campo (“In the Field”)	Borebi, Agudos, Iaras, and Paulistânia	The “Nós do Campo” Project aims to promote food security and increase the income of small rural producers, with a focus on agroecological transition and the implementation of agroforestry systems. In 2023, 128 technical visits were carried out, 8 Participatory Rural Diagnosis meetings were held, 01 training course in management and entrepreneurship of CSOs was held and 10 Agroforestry Systems were implemented. In addition, the project’s farmers participated in Bracell’s internal initiative, the “Feirinha Coletivo Bracell Social”, an initiative that aims to connect social projects with Bracell employees, so that food and handicrafts produced by family farmers, beekeepers and artisans from rural and urban initiatives can be accessed at the factory. In addition, it connects stakeholders with the company’s business and generates income for the communities. At the “Feirinha Coletivo”, family farmers raised more than R$ 12 thousand reais.	477 people impacted: 112 direct beneficiaries (family farmers from settlements); 07 settlements.
Pollinators	Botucatu, Cabrália Paulista, Avaré, Agudos, Bauru, Marília, Itatinga, and Lençóis Paulista	The project’s objective is to organize beekeeping activities in Bracell’s forest areas, through partnerships with neighboring beekeeping associations, in order to promote the multiple use of the forest for the production of honey and its derivatives, in a structured, responsible and sustainable manner. In 2023, 4 thousand production units were installed in our forests and more than 9 thousand tons of honey were produced. Beekeepers from the project were also invited to participate in the “Bracell Social Collective Fair”, where they raised more than R$ 6 thousand reais	51 beekeepers benefited; 169 indirect beneficiaries (beekeepers’ families); 8 associations.
Conexão	Agudos, Barra Bonita, Bauru, Botucatu, Itatinga, Lençóis Paulista, Macatuba, and Pederneiras	The Conexão Project aimed to institutionally strengthen civil society organizations in the region where Bracell operates to improve their management, expand their knowledge of resource mobilization strategies and thus contribute to their sustainability. In total, the training had 342 hours of workload, including online and in-person methodology. Topics covered included: Development of Social Projects, Strategic Planning, Financial Issues and Legal Issues, etc.	97 managers trained, representing 25 civil society organizations; 469 organization managers indirectly affected;
Dona Della (“Her own Boss”)	Agudos, Avaí, Bauru, Borebi, and Presidente Alves	The “Dona Della” Project aims to encourage women’s financial autonomy, with support in the structure and/or strengthening of businesses, whether formalized or not, for the development, reach and consolidation of the market. It is important to emphasize that the entire training, mentoring and business acceleration process will take place in 2024. The Rede Mulher Empreendedora is the executing partner of this project. Furthermore, women entrepreneurs from Edition 01 of Dona Della were invited to participate in the “Feirinha Coletivo Bracell Social”, where they raised more than R$ 3,800.00.	200 women entrepreneurs. The training, mentoring, and business acceleration program will begin in 2024.

 

We define local as our operations in Bahia (Camaçari, Alagoinhas and the municipalities hosting our forestry operations) and São Paulo (Lençóis Paulista and municipalities hosting our forestry operations in São Paulo). We define significant locations of operation as our sites in São Paulo (Lençóis Paulista and forestry operations supplying pulpwood to our São Paulo site) and Bahia (Camaçari and forestry operations supplying pulpwood to the Bahia mill). For confidentiality reasons, Bracell does not report financial data.

In 2023, local suppliers accounted for 47.04% of supplier spend in our São Paulo operations, and 67.27% of supplier spend in our Bahia operations. Local suppliers are defined as those located within the states hosting the relevant operations.

All our operations (100% of our forestry and mill operations in Bahia, São Paulo, Sergipe and Mato Grosso do Sul) are assessed on corruption risk in accordance with the RGE Group Anti-Corruption Policy (read more about Bracell’s operations structure in GRI 2-6).

Identified risks are addressed in internal policies containing procedures on identifying potential corruption risks and implementing prevention and mitigation measures.

Bracell also has a Whistleblowing Policy which is focused on internal processes and aimed at direct employees. This document sets out fundamental principles and procedures for reporting and investigating concerns. The Whistleblowing Policy, available in Portuguese only on the Bracell website, outlines:

1. how to raise concerns about possible inaccuracies in financial reports, internal controls or any other related matters; and
2. procedures for a fair and independent investigation with adequate follow-up to address each concern raised by employees.

Whistleblowers can report possible inaccuracies to the Internal Audit departments in all operations. Reports can be made by telephone, email, snail mail, face-to-face meetings, and other means of communication.

Other policies on ethical practices and conduct and ensuring compliance with laws and regulations are also available on Bracell’s website. These include our Code of Conduct, our Procurement Code of Ethics, and our Sustainability Policy. Click here to view our policies.

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

All 7,391 employees, representing 100% of the workforce, receive the Code of Conduct during the onboarding process, immediately after admission. They are also trained in 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;
• 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
• 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.

Bracell has control mechanisms and procedures in place to ensure compliance. We define corruption as obtaining an undue advantage for one’s own or a third party’s benefit.

	2021	2022	2023
Total number of confirmed incidents of corruption	1	0	2
Nature of reported incidents	Corruption involving a supplier and an employee	0	fraud
Total number of confirmed incidents in which employees were dismissed or disciplined for corruption	1	0	1
Total number of confirmed incidents where contracts with business partners were terminated or not renewed due to violations related to corruption	1	0	1

Note 1: cases of corruption are those that have at least two people involved in the realization of abuse of power and private gains.
Note 2: in 2021, the Company investigated a reported case of fraud. As a result, the suppliers involved were barred from doing business with Bracell.
Note 3: In 2022, a case of fraud related to a forestry module was reported, which resulted in an internal audit. This audit led to the dismissal of the employees involved. Although the incident occurred in 2022, it was recorded in 2023, the year in which there was also an additional case of fraud, this time related to travel reimbursements, which resulted in the dismissal of an employee. In addition, it is important to note that in 2023 we did not record any cases of public corruption.

Bracell was not party to any judicial or administrative proceedings, either nationally or internationally, for unfair competition, corruption, anti-trust or monopoly practices.

In 2023, the historical energy consumption data within the organization’s São Paulo operations were reviewed.  In 2022, grid energy was consumed despite industrial energy generation. Calculation standards were rectified for 2021 data.

HISTORICAL ENERGY CONSUMPTION WITHIN THE ORGANIZATION¹ (GJ)
	2021	2022	2023
Bahia1	1,561,590.00	1,579,433.51	1,541,824.41
São Paulo	1,955,354.26	5,828,717.43	6,248,231.36
Total	3,516,944.26	7,408,150.94	7,790,055.77

1. The total consumption of non-renewable fuel sources includes consumption of natural gas and liquefied petroleum gas (LPG). The total consumption of renewable sources includes Black Liquor.

Generation Output (GJ)
	2021	2022	2023
Bahia	1,429,909.20	1,262,907.28	1,066,178.70
São Paulo	1,784,658.89	8,896,430.99	9,387,409.61
Bracell	3,214,568.09	10,159,338.27	10,453,588.31

 

Purchased Energy (GJ)
	2021	2022	2023
Bahia	204,426.00	348,790.00	486,127.30
São Paulo	608,902.91	112,990.60	367,038.00
Bracell	813,328.91	461,780.60	853,165.30

 

Electricity Sold (GJ)
	2021	2022	2023
Bahia	72,745.20	32,263.77	10,481.59
São Paulo	438,207.54	3,180,704.16	3,506,216.24
Bracell	510,952.74	3,212,967.93	3,516,697.83