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 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.

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.

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.

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

In 2022, the energy consumption outside of Bracell’s operation was 856,165.30 GJ.

Energy consumption outside of the organization (GJ)	2021	2022	2023
São Paulo	204,426.00	348,790.00	367,038.30
Bahia	608,902.91	112,990.60	486,127.30
Total	813,328.91	461,780.60	853,165.30

Note: the data regarding Scope 3 emissions is reported in GRI Disclosure 305-2.

The energy intensity of our industrial operation in Bahia state in 2023 was 3.27 Gj/adt and 2.07 GJ/adt São Paulo state. These values consider the total production of 471,817 tons in Bahia and 3,012,404 tons in São Paulo.  Only the electricity consumption by milling was included in the calculation.

Energy intensity (GJ/adt)
Operation	2021	2022	2023
Bahia	3.32	3.29	3.27
São Paulo	2.39	1.99	2.07
Bracell	2.73	2.17	2.24

 

Bracell’s energy consumption in 2023 was 7,790,055.77 GJ, an increase of 4.9% over 2022. In Bahia operations, energy consumption fell by 37,609 GJ, while there was an increase of 419,514 GJ in São Paulo operations.

The energy intensity including industrial consumption increased from 2.17 GJ/adt in 2022 to 2.24 Gj/adt (see more in GRI Disclosure 302-3).

Comparison between energy consumption in 2023 and 2022
Operation	GJ	%
Bahia	-37,609.10	-2.4
São Paulo	+ 419,513.93	+ 6.7
Total	+ 381,904.83	+ 4.9

Bracell’s energy consumption in 2023 was 7,790,055.77 GJ, an increase of 4.9% over 2022. In Bahia operations, energy consumption fell by 37,609 GJ, while there was an increase of 419,514 GJ in São Paulo operations.

The energy intensity including industrial consumption increased from 2.17 GJ/adt in 2022 to 2.24 Gj/adt (see more in GRI Disclosure 302-3).

Comparison between energy consumption in 2023 and 2022
Operation	GJ	%
Bahia	-37,609.10	-2.4
São Paulo	+ 419,513.93	+ 6.7
Total	+ 381,904.83	+ 4.9

Bracell operates mills in the Camaçari Industrial Park in Bahia and the Lençóis Paulista Industrial Park in São Paulo. The forestry operations supplying pulpwood to our mills are located in the states of São Paulo, Bahia and Sergipe. Water withdrawals are measured and potential risks and impacts are monitored within Bracell’s Integrated Management System, in accordance with applicable regulations (learn more in GRI 3-3 Management of the material topic Water and effluents and GRI 303).

Operations in São Paulo

• Effluents from our production process are monitored for compliance with the discharge standards issued by the Brazilian Environmental Council (Conama 430/2011), State Decree no. 8,468/1976 and other environmental regulators.
• To ensure compliance with applicable requirements, in our São Paulo operations we have classified recipient water bodies to ensure water discharges are within specifications under our discharge permits from the Department of Water and Electrical Energy (DAEE).
• Bracell is the first company in the pulp industry in São Paulo to implement three-stage effluent treatment: water is sourced from the Tietê River, from an intake located 22 km from our Lençóis Paulista (SP) mill, and is then returned into the same river.
• After it is used in the production process, wastewater flows through a three-stage treatment system. The first stage removes fibers, the second treats organic matter and the third filters the effluent before it returns to the Tietê River.
• Bracell is one of the only companies to use tertiary treatment. Approximately 95% of water withdrawals are returned to the Tietê River as treated effluent.

Operations in Bahia

• To ensure our water discharges meet quality requirements in our Bahia operations, we regularly monitor physical, chemical and biological parameters, including chemical oxygen demand (COD). This indicator is used to evaluate the performance of our wastewater treatment system, which comprises an on-site treatment plant at our Camaçari mill (settling or primary treatment) and another treatment plant operated by Cetrel, a company c0-located in the Camaçari Industrial Park that is responsible for secondary treatment (activated sludge) of Bracell’s effluents.
• Continuous monitoring of our industrial wastewater ensures our dissolving pulp production process is eco-efficient. We also use indirect methods to measure the quality of our chemical recovery system, loss of fibers from the mill process, and solid retention efficiency in the on-site primary treatment system.
• Our wastewater treatment system processes two primary wastewater streams:
  • a) Organic effluents: wastewater from the mill and stormwater system containing varying amounts of byproducts from the production process. This accounts for the bulk of the effluents generated at the mill. Organic effluents are pumped to the on-site primary treatment system and then to the Cetrel-operated secondary treatment system;
  • b) Inorganic effluents: also referred to as non-contaminated wastewater, this stream is generated by the site’s stormwater system and other non-contaminated sources, such as flush water from cooling towers and heat exchangers.
• Both streams are monitored in accordance with Inema Ordinance 16,507/2018. The specifications for water discharges depend on the recipient water body as outlined in the relevant federal regulations (Conama Resolution 357) and requirements issued by the state environmental authority, Inema.
• Effluents are collected and pumped to a wastewater treatment system comprising a preliminary treatment stage (screening and pH adjustment) and primary treatment (conventional settling and sludge removal).
  • This process mechanically removes settable solids—essentially cellulose fibers extracted in the form of primary sludge.
  • Following on-site treatment, the organic effluent is pumped to the Cetrel plant. Following secondary treatment, the treated effluent is discharged into the ocean via a submarine outfall.
• Effluents from seedling nurseries are monitored to avoid alterations in soil quality.
• Wastewater from the washing station at our workshop in Alagoinhas (BA) is monitored to avoid alterations in the quality of the recipient water body, the Fonte dos Padres River.

Bracell continuously addresses climate zoning studies, based on the analysis of historical climate data such as precipitation indexes, temperature and latitude. Data analysis also identifies the most suitable areas for planting eucalyptus and also support technical recommendations  such as clone allocation and fertilization use.

Withdrawal
Surface water (m³)
Operation	2021	2022 (1)	2023
Bahia	29,456.00	4,811.00	64,927.00
São Paulo	13,275,929.24	48,436,589.17	52,474,268.60
Bracell	13,305,385.24	48,441,400.17	52,539,195.60
Groundwater (m³)
Operation	2021	2022	2023
Bahia	15,431,917.30	15,997,357.83	16,613,292.62
São Paulo	7,466,921.06	6,925,779.91	4,898,803.24
Bracell	22,898,838.36	22,923,137.74	21,512,095.86
Total water withdrawal (m³)
Operation	2021	2022	2023
Bahia	15,461,373.30	16,002,168.83	16,678,219.87
São Paulo	20,742,850.30	55,362,369.08	57,373,071.84
Bracell	36,204,223.60	71,364,537.91	74,051,291.71

Notes about the 2023 data:

1. Surface water withdrawal volumes in our Forestry operations in São Paulo (457,789.24 m3) include withdrawals from 248 points under permits for use in forestry management.
2. Includes withdrawals from a well at the Lençóis Paulista (SP) site, used for irrigating seedlings at an on-site nursery (555,240.00 m3), and water withdrawals for human consumption (1,117.06 m3).
3. All water withdrawals described for our forestry operations were measured directly at surface withdrawal points. Withdrawal volumes are recorded in an internal database that is managed in accordance with applicable regulations, covering all operational fronts.
4. In Bahia, Bracell has 37 surface withdrawal points covered by permits awarded by the relevant environmental authority. These points are distributed along six different rivers throughout our forestry operations: Pojuca, Subaúma, Itariri, Inhambupe, Sauípe and Imbassaí. Withdrawal points are periodically monitored in accordance with license requirements. The environmental monitoring network in our forestry operations comprises 24 stations for monitoring surface (river) water quality, 8 stations for monitoring groundwater quality (artesian wells), 13 fixed stations for analyzing water potability (fitness for human consumption), 5 mobile stations for analyzing water potability (fitness for human consumption) at operations fronts, 37 flow metering stations at permitted surface water withdrawal points along rivers, 2 stations at locations where effluents are discharged from seedling nurseries, 1 station where effluents are discharged from a water and oil separator, and 15 stations where effluents are discharged from septic tanks.
5. In our operations in Bahia, our total water consumption/withdrawals of 16,678,219.87 m³ include 939,389.25 m³ consumed in forestry operations.
6. For additional data on withdrawals, consumption and discharge, see GRI 304.

Discharge
Surface water (m³)
Operation	2021	2022	2023
Bahia	312,809.04	366,035.94	97,614.84
São Paulo	15,745,505.07	51,451,819.67	49,309,676.20
Bracell	16,058,314.11	51,817,855.61	49,407,291.04
Groundwater (m³)
Operation	2021	2022	2023
Bahia	0	0	0
São Paulo	0	0	0
Bracell	0	0	0
Seawater (m³)
Operation	2021	2022	2023
Bahia	12,209,740.00	12,601,858.08	13,313,281.40
São Paulo	0	0	0
Bracell	12,209,740.00	12,601,858.08	13,313,281.40
Municipal outfall (m³)
Operation	2021	2022	2023
Bahia	0	0	0
São Paulo	0	0	0
Bracell	0	0	0
Total water withdrawal (m³)
Operation	2021	2022	2023
Bahia	12,522,540.00	12,755,009.04	13,410,896.24
São Paulo	15,745,505.07	51,451,819.67	49,309,676.20
Bracell	28,268,045.07	64,206,828.71	62,720,572.44

Note: in our mill operations in Bahia, only one effluent stream is discharged into the river, namely inorganic effluent or stormwater, which is directed to the CETREL inorganic effluent flume, where it is mixed with other inorganic effluents from the Industrial Park before being discharged into the river.

Consumption
Total water consumption (m³)
Operation	2021	2022	2023
Bahia	3,251,633.3	3,400,310.8	3,364,938.47
São Paulo	4,997,345.2	3,910,549.4	8,063,395.64
Bracell	8,248,978.5	7,310,860.2	11,428,334.11

Note: Water consumption is calculated as the difference between water withdrawals and water discharge.

We identify and monitor High Conservation Value (HCV) areas through assessments on biological, ecological, social or cultural attributes. We have currently identified two HCV areas in the state of São Paulo and six in Bahia. As our forestry activities expand, we are working to update our maps of potential HCV areas using the criteria established by Proforest.

High Conservation Value Areas

In the state of São Paulo:

• Fazenda Nova América (117.74 hectares – HCV 1): this area has a high concentration of biological diversity, including globally, regionally or nationally significant species, such as Brazilian sassafras (Ocotea odorifera), among flora species, and South American foxes (Lycalopex vetulus), among fauna species.
• Fazenda Rio Verde (190.40 hectares – HCV 2): this is the largest fragment of Cerradão in Brazil, with a radius of 2km. It has been deemed to have HCV on the basis of its intact forest landscapes and large landscape-level ecosystems and ecosystem mosaics that are significant at global, regional or national levels, and that contain viable populations of the great majority of the naturally occurring species in natural patterns of distribution and abundance.

In the state of Bahia:

• Fazenda Santo André (229.83 hectares – HCV 1 and 3): this is an area of Cerrado with unique biodiversity at the intersection between Caatinga and Atlantic Forest. It includes a large expanse of vegetation and has been rated as HCV due to its significant concentration of biodiversity values. Species identified within the area include Andira humilis and Saltatricula atricollis, which are endemic to the Cerrado. In addition, a significant number of feline species have been identified, such as the eastern tigrina (Leopardus emiliae), jaguarundi (Herpailurus yagouaroundi), ocelot (Leopardus pardalis) and a large abundance of kunths (Bowdichia virgilioides).
• Fazenda Jaboticaba (197.05 hectares – HCV 1 and 3): this is one of Bracell’s smallest reserves, with 198 hectares of Atlantic Forest formations. It harbors a complex ecosystem with dense broadleaf forests and restinga, as well as a well-preserved fragment of muçununga. This area harbors species that are bioindicators of environmental quality, such as Turk’s cap cactus (Melocactus violaceus), white-winged cotinga (Xipholena atropurpurea), Coimbra Filho’s titi (Callicebus coimbrai) and centrolenid frog (Vitreorana baliomma).
• Lontra RPPN (1,378.16 hectares – HCV 1, 2 and 3): the largest private reserve along the north coast of Bahia. This ancient remnant of ombrophilous forest hosts a vast array of biodiversity and is the area with the highest herpetological and ornithological diversity monitored by Bracell in Bahia. Among the species found are the bearded capuchin (Sapajus libidinosus), Rio rocket frog (Allobates olfercioides), papa-taoca-da-bahia (Peryglena atrla) and assai palm (Euterpes edulis). The only known sightings of Southern American bushmasters (Lachesis muta) along the northern coast of Bahia were within the Lontra reserve.
• Fazenda Raiz (675.77 hectares – HCV 1 and 3): an area of Caatinga within the Agreste region of Bahia. Fazenda Raiz harbors a significant diversity of animal and plant species that are typical of this biome. These include a substantial population of eastern tigrina (Leopardus emiliae), the only feline species that is endemic to Brazil.

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).

Bracell sets aside more than 35% of its forestry land for preserving native vegetation. Protected area proportions are consistent with requirements under the Brazilian Forest Code (Law 12,651/2012). Land disturbed prior to July 2008 is covered by rehabilitation plans.

Since 2015, Bracell has maintained a Disturbed Land Rehabilitation Program in Bahia, using a methodology approved by the state environmental authority, INEMA. Native vegetation areas are restored by planting seedlings, improving soil quality and preventing erosion.

In Bahia, Bracell uses a three-stage rehabilitation approach:

• Assessment: technicians visit the area to be rehabilitated to survey the soil and existing native vegetation in the direct and indirect area of influence; determine the most suitable rehabilitation methods; and plan restoration activities;
• Execution: rehabilitation activities may include re-contouring, placement of containment stakes or bagged soil for slope stabilization, tillage, placement of organic material, removal of dead branches, installation of perches, fertilization, ant control and planting native species (using 4 x 4, nucleation or enrichment planting techniques); and
• Maintenance and monitoring: over the course of three years, rehabilitated areas are monitored and actions are implemented to enhance the development of the newly established vegetation, such as pruning, ant control, and enrichment planting.

In 2023, more than 60 hectares underwent active restoration, and more than 450 hectares were controlled for exotic invasive species in our Bahia forestry operations. In 2024, we plan to implement robust strategies for restoring organic soil horizons, develop partnerships to enhance forest rehabilitation outcomes, and create more effective methods for monitoring natural regeneration.

In our São Paulo operations, Bracell’s Disturbed Land Rehabilitation Program restored 188 ha in 2023. Program progress is tracked via reports that, where applicable, are submitted to the environmental authorities. Our target for 2024 is to restore an additional 393 ha in protected areas.

A Bracell initiative in partnership with Fundação SOS Mata Atlântica—a Brazilian environmental foundation—planted trees from the Atlantic Forest biome in land of the company’s partners in the towns of Botucatu, Agudos and Piratininga. Through the Foundation’s Forests of the Future Program, Bracell began restoring riparian forests, thereby helping safeguard the water resources flowing out of springs in the areas covered. The endeavor began in 2022 and the planting phase was completed in 2023.

A total of 61,975 seedlings were planted in the municipality of Botucatu, 10,025 in Agudos and 5,000 in Piratininga, totaling 77,000 Atlantic Forest trees planted. This forest is the most ravaged biome in Brazil and considered one of the 10 flagship ecosystems for forest restoration in the world by the Decade on Ecosystem Restoration.

Environmental monitoring

All information on land use on Bracell properties is geo-referenced, including protected areas, legal reserves and other areas of native vegetation set aside for conservation. Information about eucalyptus plantations, infrastructure and water resources, as well as on areas of significant cultural and social value, is included in the georeferenced data.

Forest areas are monitored using satellite imagery and drones to assess the development of planted forests and identify any incidents such as deforestation or fires. The monitoring system detects the geometry of the properties, performs detailed 3D inventories which reveal possible plantation gaps, maps areas that are hard to access, and identifies potential risks and impacts requiring immediate action.

We also have a Biodiversity Monitoring Program for managing information on identified species, trophic levels and degree of conservation in the areas where we operate. Periodically, specialized teams monitor the fauna and flora in fragments of Atlantic Forest, Cerrado and Caatinga vegetation. This data informs the selection of optimal forest management practices that help to augment the positive effects of reforestation initiatives and minimize negative impacts related to our forestry operations.

Fire prevention and response

One of the most significant risks in our protected areas is forest fires. To mitigate this risk, we create and maintain fire breaks, donate firefighting equipment to local communities, install warning signs and organize fire response workshops for neighbors and members of local communities.

Bracell’s Fire Prevention and Response department has been created with a mission to preserve the environment, the well-being of people and the planet, and the sustainability and competitiveness of the business. Bracell has 37 fire monitoring towers equipped with high-resolution cameras covering 85% of our properties in São Paulo and 61% in Bahia, including both planted forests and protected areas.

Fire responders are divided into two groups: a Rapid Response Group (RRG) and an Identification and Containment Group (ICG). At the beginning of the dry season each year, we publish maps showing water withdrawal locations that are accessible to light and heavy fire trucks. Water withdrawal locations are strategically located to optimize refilling time and the fire response. During the dry season, internal and external fire breaks are kept especially clean, particularly those surrounding critical areas.

We have also signed a technical cooperation agreement with the Bahia State Environment Department (SEMA) and the State Water Resource Institute (INEMA) to plan and implement forest fire prevention and reduction initiatives.

In 2023, the amount of area affected by forest fires increased compared to 2022, primarily as a result of adverse weather. During the year there was a significant number of days with temperatures higher than 30°C, wind speeds higher than 30 km/h, and relative humidity lower than 30%—a combination often referred to as the ”triple 30” factor. Although the number of incidents did not increase significantly, the fires spread faster and affected a larger area. None of the forest fires started as a result of Bracell’s operations. All fires were either arson, naturally caused or the result of unsafe practices by third parties.

In 2023, 352 fire spots were registered. The impacted areas of native vegetation are now part of the Degraded Areas Recovery Program

Learn more about our initiatives and commitments to protect biodiversity and habitats in the areas where we operate in GRI 3-3.

Species identified during biodiversity monitoring are classified based on official protection lists, local laws and regulations, and scientific literature on degrees of threat, rareness, endemicity, economic importance, species migration, and other parameters. Species’ conservation status is classified at the international (International Union for Conservation of Nature (IUCN)), national (ICMBio – Red Book of Brazilian Threatened Fauna 2018 and MMA Ordinance No. 148/2022), and state levels.

São Paulo
	2021		2022		2023
Category	IUCN	ICMBio	IUCN	ICMBio	IUCN	ICMBio
Critically endangered	0	0	0	0	0	0
Endangered	3	3	9	5	9	5
Vulnerable	6	13	8	8	9	8
Near threatened	11	0	12	0	12	–
Least concern	0	0	0	0	625	–
Note: For the “Near Threatened” and “Least Concern” categories on the ICMBio list, only threatened species are listed in the relevant legislation and not other species as in the IUCN Red List.

 

Bahia
	2021		2022		2023
Category	IUCN	ICMBio	IUCN	ICMBio	IUCN	ICMBio
Critically endangered	0	0	7	0	1	2
Endangered	5	6	7	5	6	10
Vulnerable	19	12	13	15	11	13
Near threatened	4	11	7	2	7	2
Least concern	0	0	252	250	252	250

Note: For the “Near Threatened” and “Least Concern” categories on the ICMBio list, only threatened species are listed in the relevant legislation and not other species as in the IUCN Red List.

Bracell’s Greenhouse Gas Inventories follow guidance provided in the latest edition of ISO 14.064, the GHG Protocol, and the quantification methodologies published by the Intergovernmental Panel on Climate Change (IPCC).

Inventories are conducted at the corporate level, covering our production sites in São Paulo and Bahia and forestry operations in São Paulo, Mato Grosso do Sul, Bahia, and Sergipe.

Emissions (tCO2e)	2021	2022	2023
Scope 1	365,172.00	614,673.00	597,454.00

Carbon Balance

Bracell’s carbon balance totaled 4,355,619 tCO₂e in 2023. Of this total, 3,940,391 tCO₂e were biogenic emissions related to Land Use, Land-Use Change and Forestry (LULUCF), and specifically eucalyptus harvesting.

Despite a reduction in Stationary Combustion and Waste emissions, Scope 1 emissions increased by 3% due to expanded use of fertilizers and mobile combustion linked to forestry expansion.

Scope 1 emissions from land-use changes amounted to 4,432 tCO₂e due to fires. Read more about our fire prevention and response practices under GRI 304-3.

In terms of Scope 2 emissions, our reported emissions from purchased electricity increased in the year due to the inclusion of water intake pumps at our São Paulo pulp mill in the inventory. In addition, in Bahia, Scope 2 emissions rose due to a strategy to purchase electricity at lower prices, reducing natural gas consumption in the power boiler.

With regard to Scope 3 data, the 17% increase in these emissions is mainly related to the Downstream category, due to the increase in the transportation of pulp for export and a revision in the scope of waste. As a result, part of the emissions previously classified in Scope 1 were transferred to Scope 3.

In 2023, Bracell removed -1,286,441 tCO₂e from the atmosphere through protected areas hosting native forests.

CARBON BALANCE (tCO2e)
Emissions	2021	2022	2023
Total (S1 + S2 + S3)	636,549	1,555,114	1,701,669
Scope 1	365,172	614,673	597,454
Scope 2	35,283	5,258	9,611
Scope 3	236,094	935,183	1,094,603
Biogenic LULUCF emissions	0	3,793,831	3,940,391
Removals (tCO2e)	-5,970,852	-1,309,842	-1,286,441
Balance	-5,334,303	4,039,103	4,355,619

 

Bracell’s Greenhouse Gas Inventories follow guidance provided in the latest edition of ISO 14.064, the GHG Protocol, and the quantification methodologies published by the Intergovernmental Panel on Climate Change (IPCC).

Inventories are conducted at the corporate level, covering our production sites in São Paulo and Bahia and forestry operations in São Paulo, Mato Grosso do Sul, Bahia, and Sergipe.

Emissions	2021	2022	2023
Scope 2	35,283.00	5,258.00	9,611.00

Carbon Balance

Bracell’s carbon balance totaled 4,355,619 tCO₂e in 2023. Of this total, 3,940,391 tCO₂e were biogenic emissions related to Land Use, Land-Use Change and Forestry (LULUCF), and specifically eucalyptus harvesting.

Regarding our Scope 1 emissions, we reduced total emissions by 3%, due to the reduction in stationary combustion and revision in the waste category. We had an increase in the fertilizer and mobile combustion categories, explained by forestry expansion.

Scope 1 emissions from land-use changes amounted to 4,432 tCO₂e due to fires. Read more about our fire prevention and response practices under GRI 304-3.

In terms of Scope 2 emissions, our reported emissions from purchased electricity increased in the year due to the inclusion of water intake pumps at our São Paulo pulp mill in the inventory. In addition, in Bahia, Scope 2 emissions rose due to a strategy to purchase electricity at lower prices, reducing natural gas consumption in the power boiler.

With regard to Scope 3 data, the 17% increase in these emissions is mainly related to the Downstream category, due to the increase in the transportation of pulp for export and a revision in the scope of waste. As a result, part of the emissions previously classified in Scope 1 were transferred to Scope 3.

In 2023, Bracell removed -1,286,441 tCO₂e from the atmosphere through protected areas hosting native forests.

CARBON BALANCE (tCO2e)
Emissions	2021	2022	2023
Total (S1 + S2 + S3)	636,549	1,555,114	1,701,669
Scope 1	365,172	614,673	597,454
Scope 2	35,283	5,258	9,611
Scope 3	236,094	935,183	1,094,603
Biogenic LULUCF emissions	0	3,793,831	3,940,391
Removals (tCO2e)	-5,970,852	-1,309,842	-1,286,441
Balance	-5,334,303	4,039,103	4,355,619

 

Bracell’s Greenhouse Gas Inventories follow guidance provided in the latest edition of ISO 14.064, the GHG Protocol, and the quantification methodologies published by the Intergovernmental Panel on Climate Change (IPCC).

Inventories are conducted at the corporate level, covering our production sites in São Paulo and Bahia and forestry operations in São Paulo, Mato Grosso do Sul, Bahia, and Sergipe.

Emissions (tCO2e)	2021	2022	2023
Scope 3	236,094.00	935,183.00	1,094,603

Carbon Balance

Bracell’s carbon balance totaled 4,355,619 tCO₂e in 2023. Of this total, 3,940,391 tCO₂e were biogenic emissions related to Land Use, Land-Use Change and Forestry (LULUCF), and specifically eucalyptus harvesting.

Regarding our Scope 1 emissions, we reduced total emissions by 3%, due to the reduction in stationary combustion and revision in the waste category. We had an increase in the fertilizer and mobile combustion categories, explained by forestry expansion.

Scope 1 emissions from land-use changes amounted to 4,432 tCO₂e due to fires. Read more about our fire prevention and response practices under GRI 304-3.

In terms of Scope 2 emissions, our reported emissions from purchased electricity increased in the year due to the inclusion of water intake pumps at our São Paulo pulp mill in the inventory. In addition, in Bahia, Scope 2 emissions rose due to a strategy to purchase electricity at lower prices, reducing natural gas consumption in the power boiler.

With regard to Scope 3 data, the 17% increase in these emissions is mainly related to the Downstream category, due to the increase in the transportation of pulp for export and a revision in the scope of waste. As a result, part of the emissions previously classified in Scope 1 were transferred to Scope 3.

In 2023, Bracell removed -1,286,441 tCO₂e from the atmosphere through protected areas hosting native forests.

CARBON BALANCE (tCO2e)
Emissions	2021	2022	2023
Total (S1 + S2 + S3)	636,549	1,555,114	1,701,669
Scope 1	365,172	614,673	597,454
Scope 2	35,283	5,258	9,611
Scope 3	236,094	935,183	1,094,603
Biogenic LULUCF emissions	0	3,793,831	3,940,391
Removals (tCO2e)	-5,970,852	-1,309,842	-1,286,441
Balance	-5,334,303	4,039,103	4,355,619

 

In 2023, Bracell increased its scope 1, 2 and 3 GHG emissions intensity by 6.0% compared to 2022 due to the expansion of our operations, especially increased pulp transportation for export (Downstream) as well as intensified agricultural activities and fertilizer use in our forest operations.

Emissions (tCO2e/t)	2021	2022	2023
Scope 1, 2 and 3	0.4932	0.4551	0.4822

Note: Bracell’s Greenhouse Gas Inventories follow guidance provided in the latest edition of ISO 14.064, the GHG Protocol, and the quantification methodologies published by the Intergovernmental Panel on Climate Change (IPCC). Inventories are conducted at the corporate level, covering our production sites in São Paulo and Bahia and forestry operations in São Paulo, Mato Grosso do Sul, Bahia, and Sergipe.

 

Bracell registered a 3% reduction in Scope 1 emissions which, in 2023, totaled 597,454 ton CO2e, explained by the reduction in stationary combustion and a revision in the waste category. In Scope 1, although our Stationary Combustion and Waste emissions decreased, we had an increase in the Fertilizer and Mobile Combustion categories due to forestry expansion.

In our Bahia operations, 85% of waste materials are recycled (either sold or donated) and the remainder is reprocessed. We sell bark, short logs and chipping residues as a renewable fuel to generate electricity in replacement of fossil fuels, helping to reduce greenhouse gas (GHG) emissions. All waste materials from forestry operations (nurseries, cultivation, harvesting, fleets, R&D, roads, loading, etc.) are transported and temporarily stored at Waste Depots located at our headquarters in Alagoinhas and at the Quatis (Entre Rios) and Salgado (Inhambupe) farms. Waste materials are then compliantly disposed of according to the type of waste, as follows:

1. Recycling cooperatives: for paper, plastic and wood;
2. Reverse logistics: for pesticide packaging;
3. Sale: for metal scrap, lubricants and bags;
4. Class I landfills: for hazardous waste;
5. Class II landfills: four regular waste;
6. Autoclave: for other waste.

In São Paulo, waste generated in forestry operations is sorted and locally disposed of in each municipality. In areas near our Lençóis Paulista mill, waste materials are collected and sent to the mill and from there to their intended disposal locations depending on the type of waste.

There were no significant waste-related impacts identified in 2023.

Potential impacts associated with waste materials generated in our pulp production process include the use of land for landfills. To minimize potential land-use impacts, Bracell seeks to reduce the amount of waste it generates in its operations through practices to improve eco-efficiency (read more in GRI 3-3).

At our mill in São Paulo, in 2023 we expanded our research efforts to develop new circular models and reduce the amount of waste generated in our operations, especially with the expansion of production output following the commissioning of our two new flexible lines.

In our forestry operations, our Waste Management Plan establishes requirements for classifying, segregating, collecting, storing and transporting waste materials generated in forestry operations, ensuring compliance with applicable legal requirements while improving sustainability performance. Our forestry machinery is equipped with environmental emergency kits to contain any oil leaks. Preventive maintenance checklists include environmental requirements on managing waste. Bracell also has practices in place for reducing the amount of waste we generate.

Repurposing bark and sawdust

Bark and sawdust can be repurposed as fuel for furnaces in replacement of fossil fuels (natural gas). It can also reduce our waste storage footprint (landfills). Waste materials left over from this process, for which alternative applications are not currently available, are disposed of in an environmentally safe manner depending on their hazard class.

Woodchip preparation

Appropriate clone selection and forest management and harvesting techniques help to ensure that our pulpwood logs have minimal bark and can be optimally used in production. This reduces waste in the woodchip preparation stage and the screener stage of the fiber line.

Use of lime mud

Lime mud generated in the chemical recovery process is re-utilized in the lime kiln, which also helps to reduce the amount of inputs consumed in this process.

In 2023, Bracell generated a total of 439,435.02 tons of waste in its operations – total of 314,559.68 tons were generated in São Paulo and 124,875.34 tons in Bahia. The waste generation includes forestry and industrial operations. Regarding hazardous waste (class I), Bracell generated 563.48 tons, corresponding to 0.83%. Considering non-hazardous waste (class II), Bracell generated the total of 80,269.62 tons, corresponding to 99.17% of waste generation in 2023.

Mill and Forestry – São Paulo
2023
Waste	Class	Volume generated (t)
Wood scrap	Class II	46.312,15
Used lubricants	Class I	145,40
Big bags (discarded)	Class II	9,29
General packaging – Plastic carboys and containers	Class II	3,26
General packaging – Drums	Class II	86,17
Rubber (tires, etc.)	Class II	297,75
Construction waste	Class II	976,15
Scrap Wood (Jazida Sul)	Class II	2.324,88
Miscellaneous scrap metal	Class II	487,59
Light bulbs	Class I	3.106,00
Batteries (Miscellaneous)	Class I	27,85
Electronics	Class I	1,00
PPE / Miscellaneous recyclables	Class II	58,29
Segregated Recyclables	Class II	329,09
Laboratory Waste (DQO solution)	Class I	0,49
Class I General (Maintenance / Other)	Class I	246,61
Lime mud	Class II	62.102,56
Class II General / Unsalvageable	Class II	373,98
Sludge (wastewater treatment)	Class II	113.220,70
Mixed waste (Dregs, Grits, Knots, Shives, Ash and Sand)	Class II	83.816,55
Fiberglass and Rock Wool	Class II	10,71
Organic waste	Class II	492,05
Class II General / Unsalvageable	Class II	131,16
Total		314.559,68

 

Mill – Bahia
2023
Waste	Class	Volume generated (t)
Healthcare Waste	Class I	0.02
Used lubricants	Class I	22.55
Contaminated empty metal drums	Class I	5.01
Miscellaneous oil- and grease-contaminated materials	Class I	24.03
Light bulbs	Class I	0.29
Lime Mud	Class II	7,176.56
Lime Residue	Class II	2,493.92
Grits	Class II	3,507.64
Dregs	Class II	7,515.87
Knots and shives	Class II	17,452.57
Sawdust	Class II	27,683.00
Non-Recyclable Waste	Class II	287.18
Paper and Cardboard	Class II	168.25
Bark	Class II	40,490.52
Yard Waste	Class II	664.40
Plastic Scrap	Class II	41.78
Wood Scrap	Class II	160.04
Empty 1,000 Liter Tanks	Class II	1.41
Industrial Waste	Class II	988.00
Primary Sludge	Class II	10,991.64
Plastic Carboys	Class II	0.13
Scrap metal	Class II	840.69
Batteries	Class II	0.53
Screening solids	Class II	10.08
Glass	Class II	38.50
Tires	Class II	6.11
Emergency Pond Sludge	Class II	4,045.00
Total		124,615.72
Forestry – Bahia
2023
Waste	Class	Volume generated (t)
Lubricants	Class I	16.60
Contaminated filters	Class I	5.72
Contaminated hoses	Class I	8.35
Other contaminated materials	Class I	4.88
Pesticide packaging	Class I	16.29
Paper and Plastic	Class II	18.26
Scrap metal	Class II	75.68
Regular Waste	Class II	14.76
Machinery tires	Class II	14.50
Empty Drums	Class II	3.26
Contaminated Soil	Class I	3.36
Wood	Class II	9.16
Laboratory waste	Class I	0.41
Bags	Class II	6.98
PPE and used uniforms	Class II	2.58
Construction Waste	Class II	53.60
Grease Trap Residue	Class I	4.27
Fluorescent Lamps	Class II	0.10
Batteries	Class II	0.05
Conventional tires	Class II	0.82
Total		259.62

Note: waste materials generated at Bracell are not managed by third parties. Only internal waste collection and handling processes are managed by a contractor. Waste disposal proper is carried out by Bracell. The information used to track waste generation is compiled by monitoring waste movements (number of trips) and via sampling-based weighing by type of waste and department within the production process. To compile recycling data, all shipments are weighed prior to issuing delivery notes, and data is compiled from a consolidated weighbridge control report as a source of information on waste disposal. For any environmental impacts, Bracell has operational controls in place as part of its Waste Management Plan to prevent and mitigate impacts. This plan describes the types of waste generated within the organization, the departments responsible for monitoring and managing waste streams, and procedures for compliant storage, transportation and disposal.

Bracell São Paulo – Mill and Forestry
2023
Waste	Class	Disposed of (t)	Landfill (t)	Reuse (t)	Recycling (t)	Co-processing (t)	Incineration (t)	Other recovery
Wood scrap	Class II	46,312.15	0.00	0.00	46,312.15	0.00	0.00	Not applicable
Used lubricants	Class I	145.40	0.00	0.00	145.40	0.00	0.00	Not applicable
Big bags (discarded)	Class II	9.29	0.00	0.00	9.29	0.00	0.00	Not applicable
General packaging – Plastic carboys and containers	Class II	3.26	0.00	0.00	3.26	0.00	0.00	Not applicable
General packaging – Drums	Class II	86.17	0.00	0.00	86.17	0.00	0.00	Not applicable
Rubber (tires, etc.)	Class II	297.75	0.00	0.00	297.75	0.00	0.00	Not applicable
Construction waste	Class II	976.15	0.00	0.00	976.15	0.00	0.00	Not applicable
Scrap Wood (Jazida Sul)	Class II	2,324.88	0.00	0.00	2,324.88	0.00	0.00	Not applicable
Miscellaneous scrap metal	Class II	487.59	0.00	0.00	487.59	0.00	0.00	Not applicable
Light bulbs	Class I	3,106.00	0.00	0.00	3,106.00	0.00	0.00	Not applicable
Batteries (Miscellaneous)	Class I	27.85	0.00	0.00	27.85	0.00	0.00	Not applicable
Electronics	Class I	1.00	0.00	0.00	1.00	0.00	0.00	Not applicable
PPE / Miscellaneous recyclables	Class II	58.29	0.00	0.00	58.29	0.00	0.00	Not applicable
Segregated Recyclables	Class II	329.09	0.00	0.00	329.09	0.00	0.00	Not applicable
Laboratory Waste (DQO solution)	Class I	0.49	0.00	0.00	0.00	0.00	0.49	Not applicable
Class I General (Maintenance / Other)	Class I	246.61	0.00	0.00	0.00	246.61	0.00	Not applicable
Lime mud	Class II	62,102.56	62,102.56	0.00	0.00	0.00	0.00	Not applicable
Class II General / Unsalvageable	Class II	373.98	373.98	0.00	0.00	0.00	0.00	Not applicable
Sludge (wastewater treatment)	Class II	113,220.70	113,220.70	0.00	0.00	0.00	0.00	Not applicable
Mixed waste (Dregs, Grits, Knots, Shives, Ash and Sand)	Class II	83,816.55	83,816.55	0.00	0.00	0.00	0.00	Not applicable
Fiberglass and Rock Wool	Class II	10.71	10.71	0.00	0.00	0.00	0.00	Not applicable
Organic waste	Class II	492.05	492.05	0.00	0.00	0.00	0.00	Not applicable
Class II General / Unsalvageable	Class II	131.16	131.16	0.00	0.00	0.00	0.00	Not applicable
Total		314,559.68	260,147.71	0.00	54,164.87	246.61	0.49	–

 

São Paulo 2023
Waste by type	Mill and Forestry
Hazardous Waste – Directed to disposal	0.00
Hazardous Waste – Diverted from disposal	3,527.35
Total hazardous waste	3,527.35
Non-Hazardous Waste – Directed to disposal	260,147.71
Non-Hazardous Waste – Diverted from disposal	50,884.62
Non-Hazardous Waste – Temporary storage for sale	0.00
Total non-hazardous waste	311,032.33
Total consolidated	314,559.68

 

Industrial waste – Bahia 2023
Waste	Class	Disposed of (t)	Landfill (t)	Reuse (t)	Recycling (t)	Co-processing (t)	Incineration	Other recovery
Healthcare Waste	Class I	0.02	0.020			0.002
Used lubricants	Class I	22.55			22.55
Contaminated empty metal drums	Class I	6.08		3.59	2.49
Miscellaneous oil- and grease-contaminated materials	Class I	24.03	18.05			5.98
Light bulbs	Class I	0.29	0.29
Lime Mud	Class II	10,903.02		7,268.12	3,634.90
Grits	Class II	2,083.29	1,831.56		251.73
Dregs	Class II	7,515.87	7,515.87
Knots and shives	Class II	8,506.91			8,506.91
Sawdust	Class II	30,840.38			30,840.38
Non-Recyclable Waste	Class II	287.18	287.18
Paper and Cardboard	Class II	168.25			168.25
Bark	Class II	21,507.01			21,507.01
Yard Waste	Class II	664.40	664.40
Plastic Scrap	Class II	41.78			41.78
Wood Scrap	Class II	160.04			160.04
Empty 1,000 Liter Tanks	Class II	1.41		1.41
Industrial Waste	Class II	988.00	988.00
Primary Sludge	Class II	3,217.64			3,217.64
Plastic Carboys	Class II	0.51		0.51
Scrap metal	Class II	840.69			840.69
Screening solids	Class II	10.08	10.08
Total		87,789.43	11,315.45	7,273.63	69,194.37	5.98	0.00	–

 

Forestry waste – Bahia 2023
Waste	Class	Disposed of (t)	Landfill (t)	Reuse (t)	Recycling (t)	Co-processing (t)	Incineration	Other recovery
Lubricants	Class I	16.60						Refining
Contaminated filters	Class I	4.60	4.60
Contaminated hoses	Class I	8.08	8.08
Other contaminated materials	Class I	4.64	4.64
Pesticide packaging	Class I	16.29						Reverse Logistics
Paper and Plastic	Class II	18.26			18.26
Scrap metal	Class II	75.68			75.68
Regular Waste	Class II	14.76	14.76
Machinery tires	Class II	6.16						Sold for resale
Empty Drums	Class II	2.10			2.10
Contaminated Soil	Class I	2.41	2.41
Wood	Class II	9.16						Fuel for energy and recycling
Laboratory waste	Class I	0.41						Autoclave
Bags	Class II	6.98			6.98
PPE and used uniforms	Class II	2.58	2.58
Construction Waste	Class II	53.60	53.60
Grease Trap Residue	Class I	4.27						Wastewater treatment
Fluorescent Lamps	Class II	0.07						Decontamination
Batteries	Class II	0.05	0.05
Conventional tires	Class II	0.82
Total		247.51	90.71	0.00	103.02	0.00	0.00	52.96

 

Bahia 2023
Waste by type	Forestry	Mill
Hazardous Waste – Directed to disposal	19.73	18.360
Hazardous Waste – Diverted from disposal	37.57	34.61
Total hazardous waste	57.30	52.97
Non-Hazardous Waste – Directed to disposal	70.99	11,297.09
Non-Hazardous Waste – Diverted from disposal	119.23	76,439.37
Non-Hazardous Waste – Temporary storage for sale	0.00	36,807.93
Total non-hazardous waste	190.22	124,544.39
Total consolidated	247.51	124,597.36

Bracell São Paulo – Mill and Forestry
2023
Waste	Class	Disposed of (t)	Landfill (t)	Reuse (t)	Recycling (t)	Co-processing (t)	Incineration (t)	Other recovery
Wood scrap	Class II	46,312.15	0.00	0.00	46,312.15	0.00	0.00	Not applicable
Used lubricants	Class I	145.40	0.00	0.00	145.40	0.00	0.00	Not applicable
Big bags (discarded)	Class II	9.29	0.00	0.00	9.29	0.00	0.00	Not applicable
General packaging – Plastic carboys and containers	Class II	3.26	0.00	0.00	3.26	0.00	0.00	Not applicable
General packaging – Drums	Class II	86.17	0.00	0.00	86.17	0.00	0.00	Not applicable
Rubber (tires, etc.)	Class II	297.75	0.00	0.00	297.75	0.00	0.00	Not applicable
Construction waste	Class II	976.15	0.00	0.00	976.15	0.00	0.00	Not applicable
Scrap Wood (Jazida Sul)	Class II	2,324.88	0.00	0.00	2,324.88	0.00	0.00	Not applicable
Miscellaneous scrap metal	Class II	487.59	0.00	0.00	487.59	0.00	0.00	Not applicable
Light bulbs	Class I	3,106.00	0.00	0.00	3,106.00	0.00	0.00	Not applicable
Batteries (Miscellaneous)	Class I	27.85	0.00	0.00	27.85	0.00	0.00	Not applicable
Electronics	Class I	1.00	0.00	0.00	1.00	0.00	0.00	Not applicable
PPE / Miscellaneous recyclables	Class II	58.29	0.00	0.00	58.29	0.00	0.00	Not applicable
Segregated Recyclables	Class II	329.09	0.00	0.00	329.09	0.00	0.00	Not applicable
Laboratory Waste (DQO solution)	Class I	0.49	0.00	0.00	0.00	0.00	0.49	Not applicable
Class I General (Maintenance / Other)	Class I	246.61	0.00	0.00	0.00	246.61	0.00	Not applicable
Lime mud	Class II	62,102.56	62,102.56	0.00	0.00	0.00	0.00	Not applicable
Class II General / Unsalvageable	Class II	373.98	373.98	0.00	0.00	0.00	0.00	Not applicable
Sludge (wastewater treatment)	Class II	113,220.70	113,220.70	0.00	0.00	0.00	0.00	Not applicable
Mixed waste (Dregs, Grits, Knots, Shives, Ash and Sand)	Class II	83,816.55	83,816.55	0.00	0.00	0.00	0.00	Not applicable
Fiberglass and Rock Wool	Class II	10.71	10.71	0.00	0.00	0.00	0.00	Not applicable
Organic waste	Class II	492.05	492.05	0.00	0.00	0.00	0.00	Not applicable
Class II General / Unsalvageable	Class II	131.16	131.16	0.00	0.00	0.00	0.00	Not applicable
Total		314,559.68	260,147.71	0.00	54,164.87	246.61	0.49	–

 

São Paulo 2023
Waste by type	Mill and Forestry
Hazardous Waste – Directed to disposal	0.00
Hazardous Waste – Diverted from disposal	3,527.35
Total hazardous waste	3,527.35
Non-Hazardous Waste – Directed to disposal	260,147.71
Non-Hazardous Waste – Diverted from disposal	50,884.62
Non-Hazardous Waste – Temporary storage for sale	0.00
Total non-hazardous waste	311,032.33
Total consolidated	314,559.68

 

Industrial waste – Bahia 2023
Waste	Class	Disposed of (t)	Landfill (t)	Reuse (t)	Recycling (t)	Co-processing (t)	Incineration	Other recovery
Healthcare Waste	Class I	0.02	0.020			0.002
Used lubricants	Class I	22.55			22.55
Contaminated empty metal drums	Class I	6.08		3.59	2.49
Miscellaneous oil- and grease-contaminated materials	Class I	24.03	18.05			5.98
Light bulbs	Class I	0.29	0.29
Lime Mud	Class II	10,903.02		7,268.12	3,634.90
Grits	Class II	2,083.29	1,831.56		251.73
Dregs	Class II	7,515.87	7,515.87
Knots and shives	Class II	8,506.91			8,506.91
Sawdust	Class II	30,840.38			30,840.38
Non-Recyclable Waste	Class II	287.18	287.18
Paper and Cardboard	Class II	168.25			168.25
Bark	Class II	21,507.01			21,507.01
Yard Waste	Class II	664.40	664.40
Plastic Scrap	Class II	41.78			41.78
Wood Scrap	Class II	160.04			160.04
Empty 1,000 Liter Tanks	Class II	1.41		1.41
Industrial Waste	Class II	988.00	988.00
Primary Sludge	Class II	3,217.64			3,217.64
Plastic Carboys	Class II	0.51		0.51
Scrap metal	Class II	840.69			840.69
Screening solids	Class II	10.08	10.08
Total		87,789.43	11,315.45	7,273.63	69,194.37	5.98	0.00	–

 

Forestry waste – Bahia 2023
Waste	Class	Disposed of (t)	Landfill (t)	Reuse (t)	Recycling (t)	Co-processing (t)	Incineration	Other recovery
Lubricants	Class I	16.60						Refining
Contaminated filters	Class I	4.60	4.60
Contaminated hoses	Class I	8.08	8.08
Other contaminated materials	Class I	4.64	4.64
Pesticide packaging	Class I	16.29						Reverse Logistics
Paper and Plastic	Class II	18.26			18.26
Scrap metal	Class II	75.68			75.68
Regular Waste	Class II	14.76	14.76
Machinery tires	Class II	6.16						Sold for resale
Empty Drums	Class II	2.10			2.10
Contaminated Soil	Class I	2.41	2.41
Wood	Class II	9.16						Fuel for energy and recycling
Laboratory waste	Class I	0.41						Autoclave
Bags	Class II	6.98			6.98
PPE and used uniforms	Class II	2.58	2.58
Construction Waste	Class II	53.60	53.60
Grease Trap Residue	Class I	4.27						Wastewater treatment
Fluorescent Lamps	Class II	0.07						Decontamination
Batteries	Class II	0.05	0.05
Conventional tires	Class II	0.82
Total		247.51	90.71	0.00	103.02	0.00	0.00	52.96

 

Bahia 2023
Waste by type	Forestry	Mill
Hazardous Waste – Directed to disposal	19.73	18.360
Hazardous Waste – Diverted from disposal	37.57	34.61
Total hazardous waste	57.30	52.97
Non-Hazardous Waste – Directed to disposal	70.99	11,297.09
Non-Hazardous Waste – Diverted from disposal	119.23	76,439.37
Non-Hazardous Waste – Temporary storage for sale	0.00	36,807.93
Total non-hazardous waste	190.22	124,544.39
Total consolidated	247.51	124,597.36

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.

Bracell registered a 3% reduction in Scope 1 emissions which, in 2023, totaled 597,454 ton CO2e, explained by the reduction in stationary combustion and a revision in the waste category. In Scope 1, although our Stationary Combustion and Waste emissions decreased, we had an increase in the Fertilizer and Mobile Combustion categories due to forestry expansion.

In 2023, we announced a set of long-term targets as part of our Bracell 2030 roadmap, including:

• 75% reduction in carbon emissions per metric ton of product; and
• 25 MtCO₂e removed from the atmosphere between 2020 and 2030.

Read more in GRI 3-3 Management of the material topic Climate change.