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.

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.

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.

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.

Suppliers of equipment, products and services are screened using the approach described in GRI 3-3 Management of the material topic Supplier social and environmental assessment. All suppliers are required to be screened, including new suppliers. In 2023, all suppliers that worked directly on our operations throughout the year were assessed in regards to social and environmental requirements. Suppliers are obliged to comply with environmental legislation, technical standards, among other mandatory requirements that integrate Bracell forestry and milling certifications standars. The suppliers are selected for integrating Bracell operations if they meet the mandatory criteria. Suppliers are managed separately, by operation. Regarding the 2023 performance, the total number of suppliers assessed and selected according to these criteria is not available.

Bracell routinely assesses risks and impacts related to its operations’ direct suppliers. Risk and impact assessments are conducted using Bracell’s environmental aspect and impact matrix, which conforms to the requirements of the certification standards applicable to our operations as well as applicable laws and regulations. In 2023 there were no negative environmental impacts from our operations’ suppliers. Read more in GRI 3-3 Management of the material topic Supplier social and environmental assessment.

In the assessment of suppliers’ respect for and guarantee of human rights, compliance with applicable legislation (labor legislation, individual rights and guarantees and the Statute of the Child and Adolescent) is analyzed. In industrial and forestry operations, on-site checks and document analysis are carried out to verify that activities comply with the relevant legislation. In forestry operations, specifically, audits are carried out at the operation itself as a measure to monitor and mitigate social risks and ensure that labor legislation is complied with and that the human rights of employees and third parties working in these operations are guaranteed. A schedule of internal and external audits is carried out annually to analyze the compliance of operations.

In the assessment of suppliers’ respect for and guarantee of human rights, compliance with applicable legislation (labor legislation, individual rights and guarantees and the Statute of the Child and Adolescent) is analyzed. In industrial and forestry operations, on-site checks and document analysis are carried out to verify that activities comply with the relevant legislation. In forestry operations, specifically, audits are carried out at the operation itself as a measure to monitor and mitigate social risks and ensure that labor legislation is complied with and that the human rights of employees and third parties working in these operations are guaranteed. A schedule of internal and external audits is carried out annually to analyze the compliance of operations.

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 did not develop protocols for consulting with indigenous peoples in 2023; however, dialogues were initiated with the leaders of these communities. The agenda included discussions about forestry operations that could affect people living on indigenous reservations.

These dialogues are conducted before the start of operations. During these meetings, we provide relevant information about the company’s activities, providing an opportunity for indigenous representatives to express any concerns. All concerns are taken into account. The stakeholder engagement process is inclusive of the entire community, including women and elders, and allows sufficient time for the community to be informed about issues and for Bracell to address the needs, aspirations and concerns shared by indigenous peoples during interactions with the company.

Meetings with indigenous communities are documented in minutes that record the agreements reached with community leaders. All villages are consulted through their leaders, and 100% have chiefs or vice-chiefs as representatives.

In 2023, meetings with villages were scheduled by the Brazilian Foundation for Indigenous Peoples (FUNAI), which attempted to schedule meetings during hours that accommodated indigenous communities’ routine activities and informed them in advance of the start and end times of meetings, as well as the topics to be discussed. Government representatives were also involved, as one of the topics of discussion was indigenous peoples’ concern over increased risks on the region’s roads. Bracell did not invite city residents to participate in these meetings.

During the year, the Company identified and mapped the actual and potential impacts of its operations on the indigenous community. Bracell also began the process of identifying and selecting qualified and specialized consultants to conduct the study on indigenous land and to prepare the action plan and recommendations to guarantee the human and customary rights and safety of indigenous people when accessing the fishing area bordering Bracell’s forestry operations. Bracell also continued its relationship with indigenous people to formalize authorization from the leaders of the Araribá Indigenous Land to conduct fieldwork.

Bracell documented the agreements and decisions formalized with indigenous communities, implemented a communications process mediated by FUNAI, sought to avoid or resolve conflicts amicably, mapped identified risks and created prevention and mitigation measures for potential impacts, and carried out initiatives to improve relations with indigenous communities.

Across our operations, we conduct stakeholder engagement activities, impact assessments, and development programs aimed at the local communities surrounding our operations (learn more in the section Bracell Social in GRI 203). To ensure these efforts are effective, we identify the primary impacts, risks, and opportunities associated with our operations to determine the relevance of each sustainability topic for the business, including indigenous lands (learn more in GRI 411-1).

Risk mapping, monitoring and management is undertaken throughout the pre-operation, operation, and post-operation stages to manage social and environmental risks and prevent and mitigate impacts (see GRI 403-2).

Community relationship building and engagement practices
Committees	Community associations are commonplace in the region where we operate in Bahia. Bracell has established committees and other permanent channels to help cultivate good relationships with associations and engage closely with community leaders in each region. We also support public institutions such as the Civil and Military Police, Public Prosecutor’s Office, the Judiciary, and other governmental agencies.
Community Surveys	We conduct on-site visits to survey the communities neighboring our operations. These surveys identify resident families, community leaders, and the key needs and aspirations of each community. We also assess existing infrastructure, potential impacts from our operations, as well as the presence of traditional communities, indigenous peoples, or Areas of High Social and/or Cultural Heritage Value.
Impact Zoning Map	These surveys map out our plantation, protected and development areas. Communities situated within these zones are categorized according to their level of influence on our operations and projects. We also identify any traditional communities, including quilombola and indigenous settlements.
Stakeholder Mapping and Matrix	Community Survey data is used to build a matrix indicating the municipality in which each stakeholder is located, the organizations representing them, their stance towards the company, contact details, level of influence, profile, interests, among other pertinent information.
Community meetings	We convene gatherings to keep stakeholders abreast of Bracell’s forestry management operations, including planting, harvesting, haulage, and other operations near communities. During these sessions, we address inquiries, document grievances, and identify communities’ primary needs. We also provide informational materials about the company and available communication channels. These discussions also extend to indigenous communities (learn more in GRI 411-1).
Operational Dialogue in São Paulo and Bahia	Bracell holds “operational dialogues” and monitors operational impacts directly with neighbors and communities near our eucalyptus pulpwood plantations in São Paulo, including indigenous communities. Neighbors are consulted individually, and communities, including indigenous communities, are consulted collectively. In Bahia, we hold meetings with communities to share information about planting, harvesting, haulage, and other activities in the region. During these discussions, representatives have the opportunity to ask questions, lodge complaints, identify community needs, and identify points of special interest and attention in each location.
Production and distribution of informational material	We advertise our “Contact Us” channel in our “operational dialogue” kit, which includes informational brochures about the forestry cycle, videos with information about eucalyptus cultivation, forest fire campaign materials, copies of the company’s Public Forestry Management Brief, as well as keychains and caps.

 

Bracell systematically monitors actual impacts on communities. In our forestry and mill operations, the most significant potential impacts include odor emissions, noise, dust from truck traffic, machinery, and equipment, road degradation, as well as health risks from the use of crop protection products (pesticide drift).

Mill (São Paulo)
2021		2022		2023
Complaint	Number	Complaint	Number	Complaint	Number
Traffic accident risk	10	Odor	1	Odor	1
Community disturbance (complaints about loud noise and overcrowding in contractor accommodations for the São Paulo expansion project)	135	Piping maintenance	1	Traffic accident risk	1
Speeding	1	Speeding	0	Speeding	0
Road damage	3	Road damage	0	Road damage	1
Total for mill	149	Total for mill	2	Total for mill	3

 

Forestry (São Paulo)
2021		2022		2023
Complaint	Number	Complaint	Number	Complaint Substantiated	Number
Damage to third-party property	32	Airborne dust caused by trucks and machinery	51	Road maintenance	63
Airborne dust caused by trucks and machinery	16	Damage to third-party property	33	Damage to third-party property	41
Road maintenance	6	Maintenance of roads, bridges and culverts.	36	Airborne dust caused by trucks and machinery	37
Road damage	6	Speeding	19	Fence maintenance	27
Total for forestry	104	Total for forestry	139	Total for forestry	168
Total mill and forestry	253	Total mill and forestry	141	Total for mill	3

 

Mill and forestry operations (Bahia)
2021		2022		2023
Complaint	Number	Complaint	Number	Complaint	Number
Property damage	20	Property damage	8	Property damage	12
Roads	24	Roads	8	Roads	14
Dust (forestry operations only)	18	Dust (forestry operations only)	12	Dust (forestry operations only)	8
Contractors	21	Contractors	11	Contractors	14
Dangerous driving	7	Dangerous driving	12	Dangerous driving	11
Noise	0	Noise	1	Noise	2
Other	0	Other	6	Other	16
Total mill and forestry	100	Total mill and forestry	58	Total mill and forestry	77

 

Social criteria are addressed in our supplier contracts. Contractual documents are stored in Bracell’s Contract Management System and we review the documentation required by law for contractors. We also use the system to monitor compliance with requirements under contractors’ collective bargaining agreements. This applies to all suppliers, including new suppliers. Read more in GRI 3-3 Management of the material topic Supplier social and environmental assessment.

Bracell regularly monitors social risks involving suppliers and contractors. In 2023 we identified no social impacts within our operations. Read more in GRI 3-3 Management of the material topic Supplier social and environmental assessment.

Our forestry operations adhere to the standards issued by the Brazilian Forestry Certification Program (CERFLOR/PEFC) to ensure our pulpwood management practices are environmentally sound, economically viable, and socially beneficial. Bracell’s CERFLOR/PEFC certification was successfully renewed in 2023. In addition, 100% of the pulpwood used in our production process is verified against certification standards, with 30% derived from controlled wood sources and 70% from certified land directly managed by Bracell. In 2023, our São Paulo and Bahia mills sourced pulpwood from 85 suppliers. Of these, 100% were audited by the Bracell team. Bracell does not source pulpwood from controversial sources.