Climate change is a pressing global challenge, as scientifically validated by the Intergovernmental Panel on Climate Change (IPCC), with significant repercussions for the environment, society, and the global economy. The World Meteorological Organization (WMO) has confirmed that 2025 is projected to be among the three warmest years recorded, with the global mean temperature approximately 1.44 °C above pre-industrial levels (1850–1900). This underscores the swift approach of the critical 1.5°C threshold delineated by the Paris Agreement, thereby emphasizing the need for urgent and tangible climate measures.

Rising temperatures lead to extreme weather events that impact ecosystems, communities, and economies, increasing inequalities and infringing on human rights, especially for vulnerable groups. In this context, we acknowledge the crucial role of the pulp and paper industry and are dedicated to ongoing investments in technology and innovation to diminish both direct and indirect greenhouse gas emissions across all scopes (1, 2, and 3), supporting the shift to a low-carbon economy. Furthermore, Suzano actively engages in key international discussions and forums, participating in major climate-related events, including Climate Week in London, São Paulo, Belém, Rio de Janeiro, and New York, as well as COP30 in Belém (PA). Climate change results from actions across various sectors, requiring united efforts from both public and private entities to develop adaptation and mitigation strategies.  

Climate Change at Suzano 

The pulp and paper industry relies on forest management, water, land use, and industrial processes. Climate change poses both significant challenges and opportunities for this sector. For Suzano, it is a critical and pressing issue, with actions to cut emissions and enhance carbon absorption being a key part of daily operations. The company’s model leverages planted and native forests to absorb and store CO₂, support biodiversity, and maintain the hydrological cycle, among other advantages.

Meanwhile, the industrial and logistics sectors are characterized by substantial greenhouse gas (GHG) emissions, mainly from fossil fuel use. This underscores Suzano's key role in adapting to and mitigating climate change, requiring collaboration with governments, civil society, and private-sector partners to confront this challenge.

Suzano employs a comprehensive and strategic approach to its climate transition, grounded in the framework from the Forest Sector Net-Zero Pathway report by the World Business Council for Sustainable Development (WBCSD). This strategy is built around four key pillars. The first focuses on reducing GHG emissions across operations and the entire value chain by adopting cleaner, more efficient technologies, implementing circularity initiatives, and collaborating with suppliers and customers, as well as implementing sustainable operational practices. The second aims to enhance carbon removal and storage by utilizing native forests and eucalyptus plantations as carbon sinks, complemented by sustainable Forest Stewardship and carbon storage in forest products. The third pillar promotes the expansion of the bioeconomy, replacing non-renewable, fossil-fuel-based materials with products derived from renewable raw materials such as eucalyptus, supporting a low-carbon economy, and delivering innovative solutions across sectors. The fourth emphasizes strengthening adaptation and resilience through advancing climate adaptation efforts that boost the company's capacity to withstand climate change impacts.

Suzano recognizes the importance of being a leading and transformative force in developing solutions to the climate crisis. It has reviewed its practices and developed its strategy and management of climate-related risks and opportunities, following the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD), which the IFRS Foundation has now adopted.

The company has a strong history of following TCFD recommendations. This indicator is measured against the company's standards and the International Sustainability Standards Board’s (ISSB) IFRS S2 climate change standard. By being transparent and highlighting potential climate-related impacts, we commitremain dedicated to improving recommendations that are still pending, with a clear plan to meet the IFRS S1 and S2 requirements in the next year, when they will be mandatory in Brazil.

Climate Governance

Suzano has started developing an integrated governance framework for climate change, with the Board of Directors reviewing climate-related goals, risks, and opportunities annually, supported by committees that guide the Company’s long-term strategic direction:

• Sustainability Committee: assists in defining the company’s strategic positioning by identifying social and environmental risks and opportunities, as well as their direct and indirect effects on operations.
• Statutory Audit Committee: Its purpose is to ensure strict internal controls and proper administrative practices. It oversees the preparation of reports and financial statements, monitors internal and external audit performance, and follows the risk management process. 

At the executive level, we've created committees to lead climate discussions in collaboration with various Suzano departments. These committees monitor goals and metrics, debate strategic positions, and ensure alignment with business objectives. The structure encompasses strategic and tactical forums, along with monthly working groups focused on key areas like decarbonization, risk and opportunity management, and advocacy.

In 2025, about 55 targets were established across 7 vice-presidencies, focusing on decarbonization, emissions reduction, carbon removal, regulations, and financial assessments of climate risks.

Moreover, Suzano has a Corporate Climate Change Policy approved by the executive directors of Sustainability, Corporate Relations, Risk, and Finance to align behaviors and guide employees on this issue. The company also maintains a public position against deforestation and has a Timber Procurement Policy stating that it does not clear native forests for its operations.

Targets and metrics²

Suzano has established itself as a leader in the corporate climate agenda by making strong commitments and developing a consistent decarbonization strategy. In 2021, Suzano joined the SBTI – Science Based Targets Initiative. After a process of development and multiple revisions, the target was published in June 2025, aligned with the 1.5°C scenario, covering both direct emissions and those from the value chain (Scope 3):

1. Reduce absolute Scope 1 and 2 GHG emissions by 50.4% by 2032.
2. Achieve science-based targets for 80% of suppliers by spending and 80% of customers by revenue by 2028.

The total reduction in Scope 1 and 2 emissions excludes emissions from forestry activities such as planting, management, and harvesting. Monitoring is carried out via the Greenhouse Gas Inventory, which is verified by an independent third party and follows globally accepted standards such as the GHG Protocol. This approach guarantees traceability and transparency in tracking emissions and removals over time.

For Scope 3, the SBTi target encompasses the most relevant parts of the value chain: procurement of inputs and services (Category 1), transportation and distribution (Category 4), and processing of sold products (Category 10). These segments make up over 67% of the company’s indirect emissions. We aim to engage strategic suppliers and customers to adopt science-based targets and build a network of partners dedicated to decarbonization. This strategy doesn't require immediate reductions but lays a strong foundation for these partners to take actions over time that will decrease Scope 3 emissions.

Since the targets were submitted for approval before the acquisition of the new facilities in the U.S., they do not yet reflect Suzano Packaging’s emissions. The update to include these operations, along with emissions from recent mergers and acquisitions like Kimberly-Clark’s assets, is anticipated after the transactions close and the assets are transferred, pending approval from the relevant authorities.

In 2025, Suzano’s absolute Scope 1 and 2 emissions reached 2,025,261 tCO₂e, a roughly 1.3% decrease from 2024's 2,051,991 tCO₂e. Although there was annual progress, emissions remain 3.2% above the target’s base year, suggesting that operational and structural factors affected performance during this period. Progress was made towards the Scope 3 engagement goal, aiming for 14.5% of suppliers by expenditure and 51.8% of customers by revenue, with science-based targets planned for 2025.

We reaffirm that combating climate change is a shared responsibility, with our integrated operations—from forests to industrial facilities—placing us as key contributors to this effort. In 2021, we aimed to remove 40 million tons of CO₂e from the atmosphere. This target goes beyond simple offsetting of direct emissions and includes Scope 3 categories related to the value chain. Therefore, we aim to extract additional significant amounts of carbon from our forest base, complementing emission-reduction efforts and enhancing our role in tackling the climate crisis.

Other important factors to consider:

• The historical comparability of emissions and removals trends was ensured for 2020–2025;
• To avoid altering the baseline and level of ambition, we excluded emissions from Suzano Packaging's acquisition from the commitment measurement indicator, similar to the approach used for the emissions reduction target. We also maintained the same Scope 3 (partial) categories as before. Additionally, only minor methodological improvements (less than 1% impact on the target) were made to Scope 1 emissions.

By 2025, the company reached a net total of 13.9 million tons of carbon removals, bringing the cumulative total to 43.3 million tons of CO₂e removals since 2020, surpassing 108% of its target.

Regarding the removals commitment, it is important to emphasize that Suzano does not rely on external offset measures, such as buying carbon credits. Instead, it can generate carbon credits through dedicated projects, as shown in the “Carbon Market” indicator.

Another major milestone for 2025 was reaching the 2020 pledge to cut emissions intensity (tCO₂e per ton of finished product) by 15% by 2030, which was achieved earlier than planned. Although this is no longer a public corporate goal, we will continue reporting this indicator because it relates to financial emissions.

• We achieved a score of 0.1859, a 17% decrease from the base year. Compared to the previous year, the indicator declined by 9%, showing the success of decarbonization efforts and Suzano’s steady emissions reduction, driven by increased production efficiency. This figure uses the GHG Protocol methodology, including updates and Suzano Packaging’s full-year emissions, resulting in changes to 2015 baseline data, and adjustments for 2022–2024 and the 2030 target KPI.

To learn more about the commitments listed above, please visit the “Combating the Climate Crisis” page.

Emissions

Regarding metrics, the company begins by measuring the success of its initiatives through the Greenhouse Gas Inventory. This tool, developed using internally established procedures and methodologies recognized and verified by third parties—including the Greenhouse Gas Protocol: The Corporate Accounting and Reporting Standard (reviewed edition, March 2004, published by the World Resources Institute and the WBCSD)— tracks Suzano’s total emissions and removals annually.

Based on these results, the company identifies and comprehends its key emission sources to effectively reduce them and track its Commitments to Renew Life (CPRVs). The Inventory, published annually, highlights the company’s challenges and opportunities. For further details, refer to “GHG Emissions Management in Forestry, Industrial, and Logistics Operations” and “Greenhouse Gas (GHG) Emissions and Methodology.”

In 2025, there were no major updates to the emissions accounting methodology. The only change was the integration of primary data from Suzano Packaging’s operations, which improved the accuracy and robustness of the corporate inventory. As a result, absolute Scope 1 and 2 emissions grew by 1% compared to the previous year. For Scope 3, the variation between 2024 and 2025 was 14%. This increase in direct and indirect emissions mainly reflects higher overall production in 2025. For more details on Scope 3 emissions, refer to the indicators “Greenhouse Gas (GHG) Emissions and Methodology” and “Other Indirect Greenhouse Gas Emissions (Scope 3), by Category.”

Climate Risk Management

Suzano has a dedicated initiative to manage corporate risks, with climate risks as a top priority. Using its own methodologies, tools, and processes, the company identifies, evaluates, and addresses its main risks, continuously monitoring their impacts and applying mitigation measures.

To support risk management, Suzano has established Regional Risk and Business Continuity Committees (RCNs) at all industrial units, tasked with mapping, analyzing, addressing, and monitoring local risks. These committees, composed of strategic, multidisciplinary members, convene monthly or bimonthly.

The risk management structure also features technical risk forums, which consist of heads of technical departments, and risk meetings, which are multidisciplinary groups functioning across international offices. Technical forum meetings are held at least annually, whereas risk meetings take place every two months.

Climate risks are integrated into the Enterprise Risk Management (ERM) process and reviewed quarterly by the Executive Committee and the Statutory Audit Committee (CAE), with annual presentations to the Board of Directors (CA) to discuss mitigation strategies.

For additional information on Suzano’s risk and opportunity governance, please see the “Risk Management” indicator.

We consider different future climate scenarios to understand their potential effects on our operations, as well as the associated risks and opportunities. These scenarios are categorized into six likelihood levels: none, very low, low, medium, high, and very high.

Besides the probability of occurrence, we also evaluate three different time horizons:

• Short-term: 1 to 3 years, aligned with business planning cycles.
• Medium-term: 4 to 7 years, which aligns with the cycles of our planted forests.
• Long-term: 8 to 15 years, aligned with our corporate strategy.

In 2024, Suzano introduced a new approach to quantify climate risks financially, focusing on the potential economic impacts of key risks affecting our assets and operations. The initial phase involved a pilot project across our entire Maranhão operation, yielding valuable insights.

These results were used in 2025 to scale and broaden this new methodology across Suzano’s other assets, providing the company with valuable internal insights to boost resilience and adaptive capacity amid various climate scenarios and to guide business strategies.

This initiative is overseen by the Risk Management, Financial Quantification, and Adaptation Working Group, which operates under the Climate Tactical Committee to ensure alignment and coordinated reporting.

Physical risks: As previously noted in the adaptation section, Suzano uses climate scenarios from IPCC models to assess physical risks to its forestry and strategic activities. The company evaluates these risks across four global warming scenarios and four future periods, using data from 22 global climate models. The analysis shows that Bahia, Espírito Santo, and Maranhão are regions with the greatest potential for impact.

Suzano regularly measures key qualitative and quantitative parameters of its main watersheds and employs Forest Stewardship technologies to manage water resources efficiently. Additionally, the company has created a biophysical model to estimate forest productivity and utilizes modeling tools to forecast the impacts of climate events. Climate indicators help calibrate harvest and planting models, aiming to reduce productivity losses and enhance forest productivity.

Suzano actively identifies, assesses, and manages climate transition risks to stay aligned with international standards and seize market opportunities. This approach enhances its operational resilience and competitiveness by addressing regulatory, legal, technological, market, and reputational challenges through innovation and adherence to global trends.

Climate Strategy

To fulfill its commitments and adhere to its policies, the company has crafted its climate change strategy using a systemic, collaborative approach. This strategy connects local and global agendas while considering key frameworks, scientific advances, and challenges. With Suzano’s multidisciplinary perspective, the aim is to embed climate change more deeply into its corporate governance and steer its strategic vision toward a fair transition to a low-carbon economy. This effort supports a more resilient business model and value chain, helping unlock new opportunities.

The strategy recognizes the complex, multidisciplinary nature of the issue. It is based on the main recommendations of the TCFD, now part of the IFRS initiative—previously mentioned—a respected standard for transparency and climate change reporting. It demonstrates how the company manages this issue and its impacts, ensuring alignment with its goals, and emphasizes four key action areas, described below.

1. Mitigation

Mitigation involves actions taken to prevent or lessen the harmful effects of climate change, including strategies to lower greenhouse gas concentrations or emissions. Suzano actively addresses these challenges at various levels across its operations, implementing modernization and efficiency projects, fuel substitution efforts, alternative-fleet adoption, and other technological innovations to reduce its environmental impact.

To concretize our ambitions, we launched the Climate Transition Action Plan (CTAP) in 2025. This plan details the company’s strategic approach to tackling climate challenges and guides decarbonization efforts throughout its operations and value chain. A key component of the Plan is the Marginal Abatement Cost Curve (MACC), which has been used since 2023 to identify and prioritize decarbonization projects.

Over time, we have developed into a seamless, ongoing process using a corporate tool that centralizes the registration and updating of initiatives across all departments. In 2025, we further progressed by adding new features and adopting advanced technologies, which enhanced efficiency and accelerated emissions reductions across our processes and value chain.

Therefore, we can monitor the progress of registered projects and support more confident decision-making by leveraging current technical and financial data. This information helps shape strategies and prioritize initiatives that deliver the best results in terms of cost-benefit and impact.

The projects within the Curve vary in maturity, from those with proven technical and financial viability to those in the early study stage. This progression enables projects that lower GHG emissions and support Suzano’s decarbonization efforts to deliver a better financial return and receive higher priority in capital allocation.

Throughout the year, we consolidated more than 120 initiatives to contribute to the carbon emissions reduction program, the result of the Decarbonization Working Group (WG), which works to identify, prioritize, and develop business cases for emissions reduction, ensuring integrated governance with other climate-related topics, including the management of climate risks and opportunities, strategic alignment, technical and financial feasibility, and the effectiveness of mitigation strategies.

Capital Allocation for Decarbonization

In 2025, Suzano made its initial disclosure of capital allocation for the climate transition, covering capital expenditures (capex), financing, and investments related to climate risks and opportunities. This first effort demonstrates our dedication to transparency and to embedding the climate agenda within our corporate strategy.

The total investments in decarbonization amounted to BRL 485.76 million, as reported after the end of the budget cycle. This figure encompasses projects for energy-efficiency upgrades, the installation of a new biomass boiler in Aracruz, and other initiatives focused on emissions reduction and industrial modernization. These efforts demonstrate a strategic allocation of resources toward initiatives with clearly demonstrated positive impacts.

Climate Fund Financing

In 2025, the BNDES approved BRL 451.7 million to finance the modernization, revitalization, and expansion of storage capacities at our industrial sites in Aracruz (ES), Limeira (SP), Mogi das Cruzes (SP), Mucuri (BA), and Três Lagoas (MS). These projects, with a total investment of BRL 700 million, will be funded through Finem (BRL 342.8 million) and the Climate Fund (BRL 108.9 million).

This financing significantly supports the Competitiveness Enhancement Project in Limeira (SP), which has eliminated about 10.5 million m³ of natural gas consumption annually, reducing emissions by over 20,000 tCO₂e.

Inventory of CO2 Removals and Carbon Stock

Suzano helps remove carbon dioxide from the atmosphere by growing trees on its forest holdings. Our Forest Inventory monitors this process by calculating the carbon stock—the total carbon in above- and below-ground biomass—and tracking net CO₂ removals over time. When trees are harvested, carbon stock decreases, and this reduction is recorded as land-use emissions to maintain transparency and prevent double-counting.

Removals are estimated using the stock change method, aligned with IPCC guidelines, and based on primary inventory data and internationally accepted factors. For conservation and restoration zones, we employ the gain-loss method, also endorsed by the IPCC. This strategy ensures that our inventory accounts for both forest growth and harvesting losses, providing a realistic and up-to-date assessment of Suzano’s contribution to climate change mitigation.

Additional details are available in the indicator titled “Balance (removals and emissions), removals, and carbon stocks”.

Domestic carbon price

Suzano acknowledges that a regulated market may create costs or opportunities depending on the regulatory context. As a result, the company has started including an internal carbon pricing variable to assess and track the impact of projects on emissions. This analysis produces financial indicators both with and without the carbon shadow price, enabling consideration of emissions impacts in new investment approvals. These decisions also factor in other financial criteria for prioritizing CapEx investments in modernization and expansion.

In practice, the internal carbon price is factored into a project's net present value (NPV), starting with a feasibility scenario and an initial shadow price of USD 10 per ton. Consequently, projects that cut GHG emissions and support decarbonization will generate improved financial outcomes and offer a competitive advantage in capital allocation decisions.

Throughout 2025, the company undertook various projects across different areas that aimed to reduce greenhouse gas emissions, highlighting the initiative's cross-functional and multidisciplinary nature. These projects are listed below.

Biomass gasification in Ribas do Rio Pardo.

The plant, opened in 2024 in Ribas do Rio Pardo, is nearly entirely powered by clean energy generated from pulp manufacturing byproducts, which supplies excess clean energy back to the national grid. It is also the first Suzano Group industrial facility to use biomass gasification, resulting in a 97% reduction in emissions from lime kilns compared to plants that rely on fossil fuels.

In 2025, this case was acknowledged and featured on two international platforms associated with COP30:

• The Sustainable Business COP, an international initiative led by the CNI (National Confederation of Industry), promotes a positive climate agenda. It was chosen from 48 high-impact climate transition initiatives out of over 670 proposals evaluated. In addition to being published, the project was nominated as one of the top 6 cases for the SB COP awards, scheduled for COP30.
• Business Action Bank was chosen by the WBCSD (World Business Council for Sustainable Development) to join the world's largest open repository of sustainable business solutions, directly aligning with the COP30 agenda.

New biomass boiler in Belém

The project involves installing a new biomass boiler with rotary grate technology at the Belém facility, part of Suzano’s Consumer Goods division, which produces tissue products like toilet paper and paper towels for Brazil's North and Northeast regions. This initiative will allow the use of various renewable fuels, including sawdust, açaí pits, and recycled wood, enhancing operational flexibility and system reliability. It is expected to lower operating costs, generate local jobs, and reduce greenhouse gas emissions by about 1,200 tCO₂e annually, supporting the facility's decarbonization efforts.

Shipping Logistics

Decarbonizing logistics remains a crucial focus for achieving global goals and ensuring compliance with regulations such as the EU ETS, which mandates allowances for each ton of CO₂ emitted. From 2024 onward, maritime emissions will be included, requiring freight companies in Europe to buy carbon credits. Suzano’s Shipping Logistics division continues to estimate costs, explore alternatives to cut emissions, optimize voyages, and reduce financial impacts. It also anticipates the effects of Scope 3 emissions and collaborates with shipowners to adopt low-carbon solutions.

In the maritime industry, emission-reduction commitments outlined by the Paris Agreement and strengthened by the International Maritime Organization (IMO) remain in effect, with targets set for 2030 and 2040 and a goal of net-zero emissions by 2050. In April 2025, the IMO introduced an initial proposal for regulations called the GFI (Green Fuel Initiative), which emphasizes alternative fuels and incentive mechanisms. However, in October 2025, a decision was made to delay the final discussion until October 2026, leaving the sector in a regulatory transition phase. Suzano’s Shipping Strategy team continues to monitor these changes and participate in international forums to maintain alignment and competitiveness.

Logistics for the Paper and Packaging Business Unit

In 2025, Suzano’s UNPE Logistics division advanced in reducing GHG emissions and boosting operational efficiency through sustainable, innovative efforts. Notably, 55% of distribution centers now reuse water, and bids have been launched to install solar panels at additional centers, underscoring a commitment to clean energy. Reverse logistics for pallets was expanded to the Suzano plant, external warehouses, and new distribution centers, enhancing circularity. In transportation, route optimization projects improved operational efficiency, reduced dwell time, and lowered emissions, while making operations smoother and less reliant on manual processes. These achievements are part of Ethos 30, UNPE’s structured sustainability plan for logistics, which covers seven pillars—including green energy, route optimization, water and waste management, reverse logistics, and decarbonization—driving projects to support the energy transition, promote circularity, and lessen environmental impacts across the logistics chain.

Pulp logistics

In 2024, Suzano conducted tests with an electric truck to assess its operational performance in pulp transport and to gather specific route parameters. These results enabled initial feasibility studies for transport between the mill and the port. The test took place in Aracruz (ES), in collaboration with Vix Logística, which supplied innovative equipment designed for heavy loads to validate its performance ahead of future expansion.

In 2025, Suzano aimed to advance heavy-duty fleet electrification by testing two Chinese vehicles from different brands. The promising results, combined with significant advancements in charging technology, have led to these vehicles being included in a broader evaluation. This expanded assessment now also explores alternative infrastructure options for battery charging.

Suzano prioritizes initiatives centered on innovation and sustainability. In line with this, the company partnered with Mercedes-Benz, which introduced its first electric truck in Brazil to manage the transshipment of our fluff. This vehicle has been operating since August 2025, serving urban and semi-urban routes around São Paulo.

Digital

In 2025, Suzano advanced two energy optimization initiatives at its Aracruz and Jacareí (SP) facilities. The Thor Methanol project enhanced the use of renewable methanol in lime kilns, preventing the consumption of over 2.2 million cubic meters of natural gas. Meanwhile, Thor Dessuper refined the balance between electricity generation and auxiliary fuel use, leading to savings of 11.2 million cubic meters of natural gas. These outcomes demonstrate consistent improvements, ensuring the effectiveness of the measures over time and reinforcing energy efficiency as a continual practice in their operations.

Value chain

Since 88% of Scope 3 emissions mainly come from Categories 1 (purchased goods and services), 4 (upstream transportation and distribution), and 10 (pulp processing by our customers), engaging our partners in our climate transition strategy is crucial for reaching decarbonization goals and maximizing positive effects across the entire value chain.

In 2025, Suzano accelerated its efforts to decarbonize its value chain. As part of this initiative, the second phase of the Responsible Supplier Management Program was introduced, emphasizing decarbonization and strategic involvement within the Procurement department.

Suzano’s efforts focused on two main fronts:

• Internal: training buyers to incorporate sustainability criteria into procurement processes and proactively seek low-carbon technologies and solutions. 
• External: monitoring and engaging suppliers to measure and reduce emissions, promoting sustainable practices across the entire supply chain.

Suzano emphasizes that engaging suppliers is crucial for achieving consistent, collaborative progress in tackling the climate crisis through tangible commitments to decarbonization.

In July 2025, we introduced the Climate pillar of the Compartilhar Program, targeting 100 priority partners. We aim to help these partners improve their climate-related practices and establish science-based targets.

With Compartilhar Clima, our goal is to enhance our partners’ maturity by providing training, tailored action plans, and collaborative solution development that drives sustainable change throughout the entire value chain.

Over the past four years, we have collaborated with the CDP to involve suppliers in Climate and Water issues. By 2025, 70% of the 100 invited suppliers had engaged with us, showing progress towards our environmental goals within our value chain.

We believe that building a close relationship with our customers is very important. Our products are more than just commodities, thanks to the sustainability integrated into Suzano’s production process, which gives them unique qualities that set them apart in the market.

 The company’s pulp currently has one of the lowest emission intensities in the industry. It is important to highlight these qualities to customers, emphasize our dedication to ongoing improvement, and foster discussions about common challenges and potential collaborations.

Since we prioritize customer satisfaction related to the sustainability features of Suzano’s products, we regularly conduct satisfaction surveys and engage in discussions with customers to address their social and environmental concerns. This ongoing relationship allows Suzano’s commercial teams across different business units, along with Marketing and the Climate Change and Institutional Sustainability department, to identify partnership opportunities and projects focused on continuous production improvements to lower emissions.

Suzano conducts life cycle assessments across its business units to continuously minimize the environmental impact at each stage of product manufacturing. These assessments are valuable to customers, who also strive to lessen their own product impacts. For 2024, the key focus is on the “Life Cycle Assessments” indicator. LCA data are essential for our customers, so we have established an internal governance and data-sharing process with the Pulp Business Unit team, which is communicated to requesting customers. We work to reduce our carbon footprint through initiatives such as decarbonization, contributing positively to our clients’ climate objectives. In 2025, there were multiple opportunities to exchange experiences with major pulp clients on their LCA processes, climate goal-setting, decarbonization efforts, and supply chain engagement. The Paper and Packaging Business Unit is also developing a similar process, with third-party reviewed LCAs completed by the end of 2025.

1.  Adaptation

Mitigation efforts aim to reduce GHG emissions, while adaptation involves modifying practices to cope with changing climate conditions. At Suzano, strategies focus on managing climate impacts by leveraging climate intelligence and strengthening forest resilience. The R&D and Sustainability teams systematically monitor the climate, utilizing data from 73 private and 95 public weather stations to evaluate forest productivity and guide their planning.

Suzano employs climate scenarios from the IPCC and Aqueduct, combined with downscaling techniques, to evaluate physical risks across 4 global scenarios and 22 climate models. The company has examined its climate vulnerability across its value chain and is following a proactive, preventive strategy. The assessment revealed that certain operational areas are more susceptible to potential impacts. To project impacts on future productivity, Suzano created a biophysical model and analyzed 102 years of data on El Niño and La Niña events.

The company developed the Tetrys platform to improve the allocation of genetic materials, accounting for environmental and climate variability. For water management, we perform regular measurements and use Forest Stewardship technologies to ensure efficient water use. Monitoring points have been installed to observe the connection between planting areas and water resource conditions. On the industrial front, efforts are underway to decrease water withdrawal through projects involving recirculation and reuse, along with improved operational management of water resources.

Climate scenario analysis plays a crucial role in Suzano’s resilience strategy, helping to create action plans for potential losses of biological assets, decreased productivity, supply chain disruptions, and water scarcity. The company also has contingency plans in place to manage water crises in key regions.

1. Transition

A fair and equitable transition to a low-carbon economy requires substantial changes in how we produce, consume, and invest. The goal is to build a more sustainable economy with resilient communities and workers, reducing reliance on fossil fuels and lowering carbon emissions. To succeed in this new economic landscape, companies should focus on creating innovative solutions and businesses, participate in conversations about carbon pricing, and invest in technology, research, and innovation.

Suzano, a company dedicated to moving towards a low-carbon economy, recognizes its key role in supporting and developing the carbon market and in producing credits from its activities. For further details, refer to the “Carbon Market” indicator.

Energy transition

We repurpose biomass and wood waste from our production to meet a large share of our energy needs. About 89% of our overall operations and energy consumption, including forestry, industrial processes, and logistics, comes from renewable sources such as black liquor and biomass. The remaining 11% relies on non-renewable resources such as natural gas and fuel oil.

Our facilities in Aracruz (ES), Imperatriz (MA), Mucuri (BA), Ribas do Rio Pardo (MS), and Três Lagoas (MS) are self-sufficient in electricity, with any excess generation fed into the grid. In 2025, these sites supplied 2,054,132 MWh (or 1,521 GWh) of renewable power to the public grid. This surplus energy may qualify for international renewable energy certification, such as an I-REC. In 2025, BRL 354,528 was earned from I-REC sales.

Just transition

At Suzano, Just Transition is a core strategic focus to foster a sustainable future. It aligns with international standards set by the UN, ILO, and the European Union. This dedication is reflected across our social, human rights, biodiversity, and climate initiatives through tangible actions, including open dialogue with communities, social impact monitoring, diversity and inclusion efforts, platforms for rural workers' voices, and collaborations with organizations like the ILO and the Global Compact.

In the forestry sector, this principle becomes even more critical. Our responsible forest management, which integrates production zones and conservation areas, is closely linked to biodiversity conservation and to supporting local communities in these regions. For this reason, climate justice is essential: it guarantees that the advantages of forest conservation and restoration are accessible to people, fostering socio-environmental resilience across the entire value chain.

Since 2020, we have helped over 97,000 people rise out of poverty, marking progress toward our 2030 goal of 200,000. This achievement is due to scalable solutions created in collaboration with more than 60 public and private organizations that are well-established and credible in Suzano’s operational areas. Strong territorial arrangements and active involvement from our value chain also support it.

These initiatives bolster communities against the impacts of climate change and reaffirm our dedication to human rights and sustainable development. For additional details, refer to the indicators “Suzano’s social programs” and “Human rights management.”

1. Integration

Suzano strongly believes that combating climate change requires collective effort. Therefore, the company highlights the need to engage and influence diverse stakeholders to shift toward a low-carbon economy, implementing initiatives that are integrated across different departments to foster engagement with this issue both internally and externally.

Suzano functions via working groups (WGs), cross-functional projects, and general initiatives across its industrial, forestry, and logistics operations, as well as in strategic development projects. Key focus areas include:

• Sustainable finance: Transparent communication about environmental practices is essential for establishing trust with investors and stakeholders and for demonstrating corporate responsibility and financial resilience. Suzano has allocated 40% of its debt to sustainable financial instruments. It has issued Green Bonds associated with projects that contribute to the company’s decarbonization, alongside Sustainability-Linked Loans (SLL) and Sustainability-Linked Bonds (SLB). A substantial portion of its overall debt is tied to its CPRV target to decrease Scope 1 and 2 emissions intensity by 15%. The remaining debt is connected to Suzano’s other sustainability commitments, such as water conservation and promoting women in leadership positions. The company actively participates in prominent ESG ratings. In 2024, Suzano continued to excel in the EcoVadis Sustainability Rating by enhancing its performance and maintaining its position within the top 1% of the highest-rated companies, recognized as a Leader in Carbon Management Level, attributable to its comprehensive GHG management system, as well as its commitments, initiatives, and decarbonization reporting capabilities. This assessment considered the corporate sustainability of 100,000 companies across more than 175 countries. To review the key highlights and updates for 2024, please visit the “Sustainable Finance” page.
• Employee engagement: At Suzano, we recognize the significance of employee involvement in addressing climate change as a fundamental pillar of advancing the climate agenda, alongside the company’s initiatives to reduce emissions.

The selection of areas for engagement prioritizes those associated with the highest GHG-emitting categories, including Engineering, Energy (industrial processes), Forestry, Operational Excellence, Logistics, R&D, Supply Chain, and New Business. Engagement in other areas aims at decarbonization by identifying and mapping projects, optimizing and analyzing climate change and product lifecycle data, and calculating relevant indicators. Details about training provided during 2025 are available in the “Management of training and learning” indicator.

• Engagement and influence: Suzano implements this agenda across multiple departments, mainly by participating in events and forums, building relationships and partnerships, advocating, and engaging stakeholders, especially suppliers and customers. To support the 1.5°C scenario outlined in the Paris Agreement, the company aims to influence governments, institutions, and peers in establishing standards, guidelines, and decisions that facilitate progress toward this goal. Below are the key achievements expected in 2025:
  • Promoting relationships and partnerships: Suzano has entered two major partnerships to offset the carbon emissions of its products and promote responsible consumption:
    • TP White Carbon Neutral: The existing TP White Plus and TP White Pharma Plus papers, known for their stiffness, versatility, purity, strength, and high brightness, are now also available in eco-friendly, carbon-neutral variants. This major development aims to reduce environmental impact and enhance the sustainability benefits promoted by Suzano throughout the packaging supply chain. Opting for the carbon-neutral version offsets the emissions from paperboard production while maintaining our products' quality and durability, thereby actively contributing to environmental preservation. Offset credits are managed through certificates on the Verra platform, which uses the Verified Carbon Standard (VCS). These credits originate from the Horizonte Project, a Suzano-led reforestation initiative in Três Lagoas (MS), following the ACM0003 methodology. This project involves planting fast-growing eucalyptus and native species in conservation and restoration areas. It has been independently audited and registered on the Verra platform in accordance with VCS standards. For details on Suzano’s carbon credit projects, visit the “Carbon Market” indicator.
    • Participation in cultural and culinary events: Providing paper cups and other reusable items for initiatives like the Food Film Fest, Taste Festival São Paulo, and events such as the Árvore do Ibirapuera helps boost the availability of sustainable options in busy settings.

• Carbon-Neutral Notebook: Suzano, in partnership with China’s Ministry of Ecology and Environment and the companies Sun Paper and M&G, co-launched a certified carbon-neutral notebook, which was unveiled on World Environment Day. The product is the first in the Chinese pulp and paper industry to receive carbon-neutrality verification under ISO 14068-1, certified by SGS, marking a new milestone in the sector's sustainability. The credits were retired to offset emissions from more than 5,000 notebooks.

The initiative emphasizes the importance of collaboration across the entire value chain to achieve carbon neutrality. This includes sustainably sourced pulp and the measurement, reduction, and offsetting of emissions throughout the product’s life cycle. The partnership illustrates how integrated solutions and cooperation among stakeholders are crucial to accelerating industrial decarbonization and enabling effective, scalable climate action worldwide.

• Partnership with Restaurante Preto for iFood: Implementation of packaging and disposable items made from renewable sources for delivery operations, reinforcing Suzano’s commitment to sustainable solutions and reducing its environmental impact.
• Participation in events and forums: Suzano aims to influence and track trends in the global and national climate agenda, while promoting mitigation and adaptation initiatives. The company stayed actively involved in major international forums on this subject. In 2025, Suzano attended six key events related to the climate debate—London Climate Week, Amazon Climate Week, São Paulo Climate Week, Rio Climate Week, New York Climate Week, and COP30. Beyond attending, Suzano increased its engagement through over 66 speaking opportunities, actively participating in strategic discussions, including the regulation of Article 6.4 of the carbon market at the Climate COP.
• Advocacy and Opportunities: Suzano is dedicated to ensuring that all its engagement and advocacy efforts align with the goals of the Paris Agreement, with a primary focus on limiting global temperature increase to 1.5 °C above pre-industrial levels. This commitment extends to the industry associations it is part of. The company supports the development of national and international carbon regulations grounded in global best practices, helping to build a strong, transparent market. It actively engages with policymakers to promote discussions on carbon pricing and the transition to a low-carbon economy. Suzano regularly reviews how its industry associations' climate policy positions align with the Paris Agreement. When misalignments are found, the company works to implement internal changes or reassess its involvement. Recently, Suzano addressed this issue with several associations:

• the Brazilian Tree Industry Association (Ibá), in which Suzano serves on the Deliberative Council and other committees;
• The Brazilian Business Council for Sustainable Development (CEBDS), in which the company actively participates in Technical Chambers (CTs);
• Brazilian Bioinnovation Association (ABBI), of which the company is a member and participates in working groups;
• Climate Connection, of which we are members;
• Brazilian Coalition on Climate, Forests and Agriculture, of which Suzano’s CEO is a member
• GHG Protocol Land Use Pilot Test Working Group, in which the Climate Change Manager serves on the Advisory Committee.
• WBCSD, in which the company participates in various working groups, including the Forest Solution Group. 
• The GHG Protocol Land Use Pilot Test Working Group, in which our Climate Change Manager serves on the Advisory Committee.

The company also closely monitors changes in Brazilian public policy that affect the climate transition agenda, including the Brazilian Carbon Market (Law 15,042), the Fuel of the Future Law (Law 14,993/24), the Hydrogen Regulatory Framework (Law 14,948/24), and the Climate Plan.

In addition to regulatory influence, Suzano is dedicated to advancing bioeconomy solutions and supporting the shift to a low-carbon economy. With significant CO₂ removal through eucalyptus and native forests, the company identifies strategic opportunities in new climate change mitigation businesses, aiming to diversify revenue and foster innovation in sustainable sectors.

Suzano’s forest estate is a potential source of carbon credits for companies seeking to offset their emissions. We participate in the voluntary carbon market and assist in regulating carbon markets both in Brazil and internationally, working alongside organizations like Ibá, CEBDS, and CNI.

Additionally, the company utilizes biomass and wood waste for energy production, reaching self-sufficiency at multiple facilities and exporting excess power to the public grid. Suzano also continues to expand its range of low-carbon products, replacing fossil-based materials and supporting the decarbonization of supply chains.

This initiative is managed by the Climate and Carbon Advocacy and Opportunities Working Group, under the guidance of the Climate Tactical Committee, to ensure alignment and integrated reporting.

Suzano at COP30

Suzano understands that its scale and influence necessitate active involvement in the global effort to address climate change. The company is committed to promoting innovative solutions and is involved across multiple sectors to support a low-carbon economy grounded in a fair transition. It also participates in associations and initiatives aligned with the Paris Agreement and the regulated carbon market.

Company executives participated in COP30, held from November 10 to 21, 2025, in Belém, Pará. Their involvement highlights the significant role of companies from the Global South in developing integrated and inclusive climate solutions through:

• Suzano tracks negotiations and the official agenda of the United Nations Framework Convention on Climate Change (UNFCCC) and the Paris Agreement, emphasizing the links among biodiversity, forests, and climate. The company also reviews Brazil’s Nationally Determined Contribution (NDC) to ensure that local initiatives support global climate goals. This oversight is conducted through collaborations with organizations such as the Brazilian Business Council for Sustainable Development (CEBDS), the World Business Council for Sustainable Development (WBCSD), the International Chamber of Commerce (ICC), and Ibá.
• Suzano fostered dialogue and shared experiences by convening strategic panels with stakeholders. They highlighted practical and innovative initiatives in the forestry sector aimed at reducing the impacts of climate change and enhancing biodiversity. Suzano also participated in discussions led by partners such as FSC, the World Bank, IFC, BNDES, China’s Ministry of Ecology and Environment, We Mean Business, High Level Champion, UNEP, MMA, ISO, EY, KPMG, SBTi, PEFC, Syngenta, Schneider Electric, Natura, Danone, Conservation International, WWF, and others. These engagements allowed them to share lessons learned and reaffirm their commitment to global climate solutions.

Highlights:

1. Regulation of Article 6 of the Paris Agreement: Discussions concerning Article 6.4 resumed with no significant modifications, merely adjustments to the budget and governance structures. The development of methodologies for forest removals did not progress and will be deferred to subsequent interim meetings. Two initiatives distinguished themselves during the proceedings.

• The Open Coalition of Regulated Carbon Markets, led by Brazil and 19 other countries, aims to accelerate technical development and ensure interoperability.
• Coalition to Grow Carbon Markets, established by countries like the United Kingdom, Malaysia, and Singapore, with backing from VCMI, WBCSD, and the World Bank, aims to expand voluntary and regulated markets through high-integrity credits. Suzano will become a member of the coalition's Business Advisory Group.

2. Global Climate Action: outlined the approach for the Belém 1.5°C Mission, urging countries to accelerate and increase their efforts in their Nationally Determined Contributions (NDCs) and National Adaptation Plans (NAPs). Suzano coordinates its operations and sustainability strategies with these national climate targets.

3. Climate finance: Signatory countries have pledged to triple international funding for climate adaptation, focusing on increased investments in education, sustainable technologies, civil defense, green infrastructure, and protecting vulnerable groups. Suzano emphasizes that broadening financing channels is crucial for developing innovative and scalable projects in the forestry sector.

The company continues to participate actively in these discussions, reaffirming its dedication to a low-carbon economy and supporting global climate objectives.

Road to COP31

Suzano’s dedication allows the company to recognize opportunities and craft strategies for COP31. The COP agenda is an annual initiative created in partnership with the associations the company belongs to and aligns with its engagement strategy.

Notes:

1. The climate commitments aim to remove 40 million tons of CO₂e and cut emissions intensity (tCO₂e per ton of finished product) by 15% by 2030. This includes emissions and removals from all of Suzano’s forestry, industrial, and logistics operations across all territories where the company operates. These commitments are not linked to any specific programs or regulations related to emissions reporting or limits.25.