GRI GRI 3-3 Management of material topic – climate change

GRI 3-3 Management of material topic – climate change

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.