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.

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.

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.

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.