Climate change is a pressing global challenge whose effects reverberate throughout the environment and society. The Intergovernmental Panel on Climate Change (IPCC), a scientific body of the United Nations (UN), has clearly established its link to human activities. This assertion is supported by the persistent rise in the Earth's average temperature since the beginning of the Industrial Revolution, exacerbated by anthropogenic activities that contribute to increased greenhouse gas (GHG) emissions into the atmosphere.

The year 2023 confirmed the climate projections with so many records for average global temperatures. According to the European Copernicus observatory, the months of June, July and August in the northern hemisphere recorded the highest average global temperatures ever recorded. And the story doesn't stop there: in addition to the tendency for this scenario to worsen, the increase in temperatures generates a series of consequences, such as greater frequency and severity of extreme weather events, such as droughts and heavy rains, floods, scarcity of resources and rising sea levels, which in turn affect natural ecosystems, human communities and the development of economic activities.

The rise of the debate on this issue on the global agenda, through the drafting of the document known as the United Nations Framework Convention on Climate Change (UNFCCC) and, later, with the establishment of the Paris Agreement and the UN Sustainable Development Goals (SDGs), demonstrated the increased concern of world leadership for the future of the environment. These frameworks aim to promote the stabilization of GHG concentrations in the atmosphere, requiring nations to take responsibility for this agenda by encouraging and implementing effective solutions. 

For the private sector, therefore, it is essential to align its goals with the SDGs and the other guidelines to fit into the Paris Agreement's emissions reduction scenario and limit the temperature increase to 1.5 °C compared to pre-industrial levels. 

Suzano follows international discussions every year, with active participation in the Climate Conference, monitoring the progress of negotiations, agreements, and commitments, as well as the agenda of the business sector and negotiating trends. As part of this action, Suzano executives were involved in the COP28 agenda, held in November and December 2023 in Dubai, taking part in various discussions, dialogues and meetings on relevant topics, which can be seen in greater depth in the item "Suzano at COP28" at the end of this page.  

Climate change is the result of actions taken by a range of different entities in society, from various sectors. It should therefore be the collective duty of the public and private sectors to act to develop solutions that promote adaptation and mitigation of the effects of climate change.

Climate change at Suzano 

Given that the pulp and paper sector's activities depend on the management of forests, the use of water resources, land use and industrial activities, climate change imposes significant challenges and opportunities for the sector. At Suzano, this is a material and urgent issue, and effective actions to reduce emissions and maximize the removal of carbon from the atmosphere are part of our day-to-day business. In Suzano's business model, planted and native forests contribute directly to removing and storing carbon dioxide (CO₂) from the air, preserving biodiversity and regulating the hydrological cycle, among other aspects.

At the same time, industrial and logistics activities are characterized by high GHG emissions intensity, mainly due to the use of fossil fuels. This places great responsibility on the company's role in mitigating and adapting to climate change, contributing along with governments, civil society and other private sector entities to meet this challenge.

For this reason, in 2021 the company built its climate change strategy from a systemic and collaborative approach, connecting the local and global agenda and taking into account the main frameworks, challenges and scientific advances. The Suzano Climate Plan is a representation of the macro-fronts of action linked to the climate agenda, which illustrates the multidisciplinary action on the issue and directs it towards the goal of further integrating climate change into the governance of the business and boosting its strategic vision towards the transition to a low carbon economy, contributing to an increasingly resilient business model that catalyzes opportunities.

Also, recognizing the importance of being a protagonist and transforming agent in the combined development of solutions to the climate crisis, Suzano has made two long-term public commitments: 

1. Remove 40 million tonnes of CO₂ equivalent from 2020 to 2025; 
2. Reduce the intensity of carbon emissions (scopes 1 and 2) per tone of product produced (tCO₂e/t) by 15% by 2030. 

In 2023, the company successfully offset 5,124,448 tonnes of carbon removals, contributing to a cumulative removal of 27,136,288 tonnes of CO₂e since the base year of 2020, reaching 68% of its target. In terms of emissions intensity, Suzano achieved a rate of 0.2057 tCO₂e per ton of production in 2023, representing a 3.5% reduction from the base year of 2015 and 24% progress towards its target. Notably, the base year emissions remained unchanged since the establishment of the long-term climate targets in 2020, with no recalculations or redefinitions. In addition, the removal target has been accelerated from 2030 to 2025. 

Both commitments encompass emissions and removals at the corporate level, i.e. from all of Suzano's forestry, industrial and logistics operations in all the territories in which the company operates, and neither is associated with programs or regulations based on emissions reports and/or emission limits. Suzano has submitted its targets for validation by the Science Based Target initiative (SBTi), in line with the methodologies and guidelines stipulated by the initiative. As the targets submitted are still at the validation stage, their technical details will not be disclosed at this time.

With these targets, Suzano intends to go beyond being carbon neutral and reduce the intensity of its GHG emissions. This means that the company is committed to removing more GHG from the atmosphere than it emits in its scopes 1, 2 and 3 (upstream), i.e. working towards a significant additional removal, becoming carbon negative. Because it has a net negative accumulated balance of emissions, Suzano does not depend on other compensatory measures, such as the purchase of carbon credits. On the contrary, it can generate carbon credits itself through specific projects, as can be seen in the indicator “Carbon market”.

To find out more about the above commitments, visit the “Fighting the climate crisis”.

The company also has robust governance for this issue, with the Board of Directors responsible for overseeing the sustainability strategy, including aspects of climate change, supported by the Sustainability Committee, a collegiate advisory and instructional body responsible for defining the climate change management strategy and analyzing and monitoring the implementation of the defined objectives, indicators and targets three times a year. More details on governance can be found in the “TCFD at Suzano” indicator.

To guide our employees on the values of the business and align behaviors towards a common goal, we launched in 2022 and revised in 2023 the Corporate Climate Change Policy, whose principles aim to guarantee mitigation actions to reduce and remove GHGs from the atmosphere and maximize the company's positive impacts, as well as developing actions to adapt to the effects of climate change. The Policy was validated by the Executive Commitees for Sustainability, Corporate Relations, Risks and Finance, and can be accessed here. Suzano also has a public position on zero deforestation and the Wood Supply Policy, which clarify that the company does not carry out any type of suppression of native forest for its production.

Suzano Climate Plan

This model is intricately designed to reflect the multifaceted nature of the issue and is based on the key recommendations of the Taskforce on Climate-related Financial Disclosures (TCFD). The TCFD serves as a prominent framework for improving transparency and reporting on climate change mitigation efforts. Suzano has already embraced this initiative and has a dedicated indicator that illustrates our approach to managing and evaluating climate risks and opportunities. To find out more, visit “TCFD at Suzano”.

The four focus areas of the Suzano Climate Plan group together the nine priority work fronts of the company's strategy to combat climate change, which are connected as shown by the colors in the graphic representation. The coordinates cut across all the company's activities.

The focus of action is described below:

1. Mitigation

Mitigation encompasses the actions and strategies adopted to reduce the concentration or avoid the emission of GHGs into the atmosphere, to minimize the causes and impacts of climate change. In this sense, Suzano is working on several fronts, across the entire operation, which seeks to mitigate the company's impacts, from modernization and efficiency projects to fuel substitution, alternative fleets, or other types of technology and innovation. 

The company's starting point for measuring the success of its actions is the Greenhouse Gas Inventory, a tool developed using internally established procedures and methodologies recognized and verified by third parties, which annually accounts for Suzano's total emissions and removals. It is based on these results that the company maps and understands its main sources of emissions to mitigate them, as well as monitoring and managing its Commitments to Renewing Life. The Inventory is published annually and identifies the company's challenges and opportunities. To find out more about it, visit “Management of GHG emissions in forestry, industrial and logistics operations”.

In 2023, based on the results of the Inventory, the company identified that the main sources of emissions came from the company's scope 1, due to the consumption of fossil fuels in the stationary equipment of the industrial units. Compared to 2022, absolute emissions increased slightly (2%), influenced by emissions from the agricultural activities category, due to the consolidation of the forestry base. Suzano is constantly striving to reduce its emissions through its Decarbonization Plan, detailed below.

The main actions to mitigate climate change taken by the company in 2023, in different departments, are listed below:

a. Industrial

Jacareí Master Plan: improvements were made to the unit to obtain greater efficiency and yield, such as retrofitting the fiber line, changing the turbogenerator, improving boiler blowing (ash leaching) and the condensate and methanol treatment system.

b. Energy

The Energy area has been working on projects to replace and reduce the consumption of heavy fuels in different units, as well as retrofitting and modernization projects focused on generating greater production efficiency. One example is the project to retrofit the recovery boiler in Aracruz (ES), which will reduce CO₂e by approximately 2,000 tonnes in 2023 by not keeping the incinerator burning gas. 

c. Logistics and Supplies

Given that the Procurement area is responsible for supporting the other areas of the company with contracting and commercial negotiations, some of the projects are carried out in partnership. In the case of the Logistics decarbonization projects, the two areas promoted the following initiatives in 2023:

• Use of an electric vehicle (van) to distribute paper in the dedicated region closest to the distribution center (DC) in Rio de Janeiro (Duque de Caxias), with the possibility of expanding this project to other DCs in Brazil. The estimate is that the project will reduce 0.05 tonnes of CO₂ per day;
• The Ecobox project was implemented by Pulp's Logistics department in October 2023, to generate fewer pollutants for the environment and reduce diesel consumption by an average of 5% per vehicle. The reduction is achieved by installing a device in the vehicle's electrical system. This equipment adjusts the module that releases the amount of diesel that should be sent to the engine as the driver accelerates and decelerates. Currently, all vehicles have a greater diesel release range than necessary, so the equipment shortens this range, releasing exactly the amount needed;
• In July 2023, the Paper and Packaging Logistics area implemented an online CO₂ emissions panel aimed at improving the management of GHG emissions. Since then, the project has been updating emissions data every month for road and maritime transport, energy consumption and liquefied petroleum gas (LPG). From this, it is possible to assess the progress of decarbonization projects, such as:
  • Electric forklifts: The project, implemented in April, consisted of replacing two LPG-powered forklifts with electric ones. With the average operating data of the LPG forklifts, it is estimated that the reduction was 16.3 tonnes of CO₂ (from April 28, 2023, to November 30 of the same year).
  • Green energy in DCs: the project to implement renewable energy in the DCs began in 2022 by installing solar panels, migrating to the free energy market, and, finally, offsetting the energy consumed from the grid with RECs (if the previous alternatives had not been implemented). The year 2023 was completed with all the energy consumed being from renewable sources or, when this was not possible, being offset.
  • CNG trucks: when renewing the dedicated transportation BID for the Suzano (SP) and Limeira (SP) plants, the requirement was added that part of the trucks should run on vehicular natural gas (CNG), replacing diesel (the most emitting fuel). As a result, the Suzano plant has been operating with six CNG trucks (since November 2022) and the Limeira factory with two (since July 2023). The reduction was 29.9 tonnes of CO₂e in Suzano and 7.4 tonnes of CO₂e in Limeira in 2023.

d. Digital

Two projects were carried out at the Aracruz and Jacareí (SP) units:

1. Thor Dessuper (Aracruz and Jacareí): adjustments and improvements were made throughout 2023 to optimize the use of steam reducers to minimize the generation of fossil-based steam (oil or gas). In Jacareí, 891,079 cubic meters of natural gas were saved from January to November. In Aracruz, Dessuper avoided burning 2,013 tonnes of fuel oil.
2. Thor Methanol (Aracruz): pilot project carried out at the unit to make better decisions about burning renewable methanol, and minimizing the consumption of natural gas in the furnaces. Between May (when the project began) and November 2023, 891,079 cubic meters of natural gas were saved. 

2. Adaptation

While mitigation aims to reduce GHG emissions to prevent future climate impacts, adaptation focuses on adjusting existing practices and developing approaches capable of dealing with the new conditions imposed by climate change. With this in mind, Suzano dedicates efforts and implements strategies to deal with the already present or expected impacts of climate change, including providing for its remediation or cooperating with it on the following fronts:

• Climate intelligence: are actions related to the monitoring of climate-related data efficiently and strategically, with an emphasis on the analysis, interpretation and intelligent use of climate data to inform the company's decisions and actions. The aforementioned Greenhouse Gas Inventory is also an extremely important tool on this front. Moreover, the assessment of climate scenarios for forestry and value chain planning and the execution of projects connected to adaptation and risks, in operations and with the chain, are also important actions.
• Forest resilience: covers research, development and the adoption of strategies to adapt forest areas, surrounding communities and the value chain to climate change. 

3. Transition

The transition to a low-carbon economy refers to a significant change in production, consumption and investment patterns, aimed at creating a more sustainable economy, less dependent on fossil fuels and with a lower carbon footprint. That's why companies that want to thrive in the face of the new criteria of this economy must focus on developing new solutions and businesses, getting involved in discussions around carbon pricing, and investing in technology, research, and innovation. 

Thus, as a company engaged in the transition to a low-carbon economy, Suzano understands the importance of its role in strengthening and enabling the carbon market, as well as generating credits from its operations. In 2021, the company developed the Cerrado Carbon Project, in the municipality of Ribas do Rio Pardo (MS), and, in 2022, the Horizonte Carbon Project, in the municipality of Três Lagoas (MS), both based on the Afforestation, Reforestation and Restoration (ARR) methodology of the Clean Development Mechanism (CDM) ACM0003. The Horizonte Project underwent certification by Verra and, in 2023, its verification audit was completed, making 1.7 million verified carbon units (VCUs) available. The Cerrado Project is still finalizing its validation audit. To find out more, see the indicator “Carbon market”.

In the financial area, Suzano understands that a possible regulated market could generate costs or opportunities, depending on the regulatory scenarios, and therefore began to incorporate an internal carbon pricing variable in 2023 to measure and verify the impact of projects on emissions. Thus, based on this analysis, financial indicators are generated with and without the carbon shadow price, so that the impact on emissions can be considered in the approval processes for new investments, among the other financial criteria for prioritizing their Capex investments in modernization and expansion. In practice, the internal carbon price will be incorporated into the net present value (NPV) of projects, with a feasibility scenario and an initial shadow price of 10 dollars per tone. As a result, projects that reduce GHG emissions and help decarbonize our operations will have a better financial result and a differentiating factor when making capital allocation decisions. 

Furthermore, as part of its strategy to empower biomass and other renewable solutions, in 2023 Suzano Ventures made an investment of up to 1 million dollars in an Israeli carbon startup that is developing digital technology for geoprocessing, i.e. bringing agility and transparency to the entire process of analyzing land use, measuring and managing carbon sequestration and the use of water resources. Marvin Blue saw the partnership with Suzano as an opportunity to expand its horizons and, along with our team, has been working on the development of intelligent models that provide information on climate scenarios and contribute to efficiency in climate change management operations.

4. Integration

Suzano is convinced that the fight against climate change will only be effective when done together. For this reason, the company reinforces the importance of involving and influencing various players towards a low carbon economy, through integrated initiatives with other areas of the company, aimed at engaging with this issue inside and outside the company. Suzano therefore works through working groups (WGs), integrating projects and general initiatives present not only in industrial, forestry and logistics operations but also in strategic development projects. Some of the main fronts worked on are:

• Sustainable finance: transparent communication about environmental practices is crucial to building trust with investors and stakeholders, demonstrating responsibility and financial resilience. Suzano participates in the main market indices and ratings and has Sustainability Linked Loans (SLL) and Sustainability Linked Bonds (SLB) aligned with the targets for reducing the intensity of GHG emissions. In 2023, the company stood out in the EcoVadis Sustainability Rating, a ranking that took into account the corporate sustainability of 100,000 companies from more than 175 countries. Suzano was among the select group of the top 1% of rated companies and was classified as a Leader in Carbon Management Level, for its strong GHG management system and the best decarbonization commitments, actions and reporting capabilities. To find out about the main highlights and updates for 2023, go to the Sustainable Finance page;
• Communication and education: Suzano carries out training and awareness-raising activities on the subject, bringing trends, results, and data analysis related to risks and opportunities, not only at meetings held for this purpose but also through participation in forums, workshops, external events, and WG meetings held by other areas. In 2023, the company promoted and participated in internal and external events to train and communicate to the public the challenges of climate change, Suzano's strategy on the issue and related subjects, such as life cycle analysis (LCA). The company also invested in communicating climate change through its internal communication channels, such as Workplace and Comunica e Você. A highlight of the year was an LCA workshop held in partnership with the LCA Network, which involved 173 internal employees;
• Engagement and influence: This agenda is conducted at Suzano between different areas, mainly through participation in events and forums, the promotion of relationships and partnerships, advocacy and engagement actions with stakeholders, especially suppliers and customers. To guarantee the achievement of the 1.5 °C scenario of the Paris Agreement, the company seeks to influence the government, institutions and peers in the creation of norms, guidelines and decisions that better guide the path towards this scenario. We list below the main achievements in 2023:
  • Participation in events and forums: To influence, but also monitor the evolution of trends in the national and international climate agenda, Suzano participated in more than 40 events related to different climate discussions, such as carbon markets, fair energy transition, innovation and biodiversity. The highlight events of the year were New York Climate Week and COP28, about which there is an exclusive excerpt at the end of this indicator;
  • Promoting relationships and partnerships: Suzano has entered into two important partnerships to neutralize the carbon emissions of its products. One was between its Pólen® paper brand, which teamed up with publishers Companhia das Letras, Record and Sextante to neutralize carbon emissions in the production of more than 50,000 copies of the titles Em Defesa do Tempo, É Assim que Começa and Uma Boa Vida, respectively. The other partnership was between Suzano, the printing company Box Print and the pharmaceutical company Merck, to neutralize 102 tonnes of CO₂ generated in the process of manufacturing 6 million boxes of medicines;
  • Engagement with stakeholders: Suzano understands that it cannot be a sustainable company if its supply chain does not follow the same principles. It is our responsibility to help and engage customers and suppliers to evolve their sustainability strategy to make a positive impact on the world. Measuring the GHG emissions of our suppliers allows the company to seek solutions together with partners to reduce our scope 3 emissions. This reduction directly impacts Suzano's long-term goal of "Net removal of 40 million tonnes of carbon from the atmosphere by 2025", which takes into account the balance between removals (planted trees + native trees) and emissions (scope 1 + 2 + 3). Therefore, the engagement of our suppliers is essential to the company's climate change strategy. To further strengthen the relationship with our suppliers and encourage the adoption of joint commitments to reduce emissions, we have signed a partnership with CDP through the Climate Change in the Value Chain program. This collaboration aims to engage and assist our suppliers in the measurement, transparency of data, definition of targets and assessment of risks and opportunities related to climate change. The program makes it possible to expand knowledge on this topic in the value chain, with a consequent maturing of emissions management on the part of suppliers. To measure the success of our engagement, we use the average engagement of other companies participating in the CDP Supply Chain program as a parameter. Above-average figures would demonstrate the success of our approach. For 2023, we invited twice as many suppliers as the previous year (200), of which 152 representatives of categories considered critical in terms of GHG emissions voluntarily participated in this third cycle of the program, a higher than average engagement of 61% when compared to other companies that also use the CDP Supply Chain platform. Our goal is for them to evolve in their climate change strategy and already demonstrate better performance in this year's CDP questionnaire. We are also promoting bilateral conversations to learn about our suppliers' actions in the most relevant categories and to encourage improvements both in the process of collecting and making emissions data available to Suzano and in their strategies. Fostering a close relationship with our customers is also extremely important. We firmly believe that our products go beyond mere commodities, due to the sustainability incorporated into Suzano's production process, which guarantees distinctive attributes that make our products stand out in the market. Currently, the company's pulp has one of the lowest emission intensities in the industry. It is therefore crucial to communicate these attributes to customers, along with our commitment to continuous improvement, and to participate in discussions about shared challenges and possible synergies. Furthermore, Suzano carries out life cycle analyses in its business units, which seek to constantly reduce the impact generated at each stage of the process of its products, as well as being of interest to its customers, who in turn also seek to manage the impact of their products. The highlights for 2023 are in the “Life cycle assessments” indicator.
  • Advocacy: Suzano undertakes to orient all its influencing/lobbying activities in a manner consistent with the objectives of the Paris Agreement, with the main objective of seeking to restrict the increase in global temperature to 1.5 °C above pre-industrial levels, including in the sectoral associations in which it participates. The company believes that the establishment of this market depends on new legislation, which is currently being discussed on the national political scene. With this in mind, it advocates that progress be made on solid foundations, in line with best international practices, to exploit the enormous potential of Brazil's green economy.  Therefore, its advocacy objective is to foster national and international discussion on carbon regulations, and the company has been addressing this issue with the following associations:
    • Indústria Brasileira de Árvores (Ibá), in which Suzano is a member of the Board of Directors and other committees;
    • Brazilian Business Council for Sustainable Development (CEBDS for its acronym in Portuguese), in which the company actively participates in Technical Chambers (TCs);
    • The Brazilian BioInnovation Association (ABBI for its acronym in Portuguese), of which the company is a member and participates in working groups;
    • Climate Connection, where the executive manager of Carbon participates in the leadership group; 
    • Brazilian Coalition on Climate, Forestry and Agriculture, of which Suzano's CEO is a member;
    • Working Group of the Pilot Test of the GHG Protocol Land Use, in which the Climate Change manager is part of the Advisory Committee. 

We also monitor trends and get involved in initiatives on this subject, such as the development of a Carbon Border Adjustment Mechanism (CBAM) in the European Union. A highlight of the company's work in 2023 was the aforementioned presence at two important internationally recognized events: New York Climate Week and COP28. 

Recognition related to climate change         

Suzano's commitments to sustainability and the generation of long-term value are recognized by external evaluators, who play an important role in the global agenda on the subject. About the climate change agenda, in 2023, the company received the following recognitions:

• Green Sustainable Development Contribution Award: The prize was awarded by the organizing committee of the international Green Zero-Carbon festival, which includes some of China's most influential research institutions, consultancies and media outlets and brings together more than a thousand representatives from politics, business, academia and the media, alongside companies presenting their goals, strategies and best practices, with the aim of supporting China in its efforts to achieve a net-zero emissions economy;
• Edie Net-Zero Award: Suzano won the award in the "Manufacturer of the Year" category. The award aims to recognize and reward individuals and organizations leading the transition to a net-zero economy;
• Dual Carbon Innovator Award: Suzano won an award at the first Dual Carbon Goal Activists Conference, organized by Southern Weekly in Beijing. The event aimed to showcase the progress companies have made in implementing their strategies to achieve emissions reductions and carbon neutrality ("dual carbon target"). The award sought to recognize the leaders and innovators of this strategy through extensive research;
• Sustainalytics: the 2023 assessment classified Suzano in the best category, Low Risk. This means that the company has a low chance of suffering significant impacts as a result of ESG aspects. In climate change, the highlights were the integration of climate scenarios into the business strategy and initiatives to adapt to and manage climate change risks;
• Ecovadis: in 2023, Suzano stood out in the EcoVadis Sustainability Rating, a ranking that took into account the corporate sustainability of 100,000 companies from more than 175 countries. Suzano was among the select group of the 1% best companies evaluated and was classified as a Leader in Carbon Management Level for its strong GHG management system and the best decarbonization commitments, actions, and reporting capabilities. In climate change, it advanced in the criteria of "Training employees in climate change" and "Improving energy efficiency" through technological/equipment upgrades at the plants;
• Dow Jones Sustainability Index: Suzano maintained its position as the third highest-scoring company in the sector in 2023, but improved its score in the criteria of Product Life Cycle Analysis, GHG Emissions (Scope 2), Supervision of the Board of Directors on climate change, TCFD, net zero commitments, climate scenario analysis and internal carbon pricing;
• Corporate Sustainability Index (CSI): Suzano once again joined the ISE portfolio and increased its score from 81.8 to 85.3 in 2023. In climate change, the main advances were in the areas of energy efficiency, increasing the share of renewable energies in the company's energy matrix and product life cycle management based on the 2022 CDP result;
• B3 Carbon Efficient Index (ICO₂): The Index is an indicator created by B3 in partnership with the National Bank for Economic and Social Development (BNDES for its initials in Portuguese) and is made up of shares in companies participating in the IBrX-100 (an indicator made up of the 100 most traded assets on the Brazilian capital market) that have agreed to take on transparent practices with their GHG emissions, such as drawing up and publishing a Greenhouse Gas Inventory, affirming their concern about global warming. The select group includes 79 stocks listed on B3, and Suzano was one of the companies listed in the portfolio from January to April 2024, for the fourth consecutive year. The number of Suzano shares corresponds to approximately 2% of the total theoretical composition of the index;
• Carbon Diclosure Project (CDP), Climate Change questionnaire: in 2020, we joined the CDP platform, which feeds investors and governments in their decision-making process based on important information on risk management, opportunities and socio-environmental impacts. It is an initiative created to mobilize these parties to build and accelerate collaborative actions for development that works for current and future generations. In our debut year, according to the organization's methodology, we already got a B grade in the three questionnaires we answered, relating to climate, water and forests. In 2023, we focused on the constant evolution of our performance, working on the recognized gaps related to the company's actions and transparency in their disclosure. In this way, we scored an A- in the climate and forest questionnaires and an A in the water questionnaire;
• Transition Pathway Initiative (TPI): according to the platform, Suzano's target for reducing the intensity of Scope 1 and 2 emissions is among the best in the sector and in line with the climate scenario of "below 2°C", i.e. beyond the reduction scenario established in the Paris Agreement. In 2021, Suzano was at level 2 - Building capacity. In 2022, its evolution was perceived by the initiative, positioning the company at level 3, which considers the integration of GHG emissions management and the risks and opportunities related to Suzano's transition to a low-carbon economy at the operational and decision-making level (integrating into operational decision making). The result was maintained in 2023;
• Climate Action 100+ (CA100+): launched in 2017, the investor-led initiative initially focuses on the 100 companies with the highest direct (Scope 1 and 2) and indirect (Scope 3) emissions, identified using data modeled and reported by CDP. In the year following the launch, investors were invited to nominate companies that have specific opportunities to drive the transition to clean energy, that may be highly exposed to climate-related financial risks or may be crucial at a regional or national level. Suzano, for its part, was appointed to the initiative at the end of 2020, identified as having an important role to play in the transition to net zero emissions by 2050 or earlier. In 2023, of the 11 indicators evaluated according to Suzano's public information, two meet the initiative's criteria (medium-term GHG reduction targets and TCFD disclosures), and another two partially meet them (climate governance and short-term emission reduction targets). The "Emissions Reduction History" indicator has not yet been evaluated because it is new;
• Task Force on Climate-Related Financial Disclosures (TCFD): Suzano was the first company in the Pulp and Paper sector to be the protagonist of a TCFD case study, launched in 2015 on the TCFD Knowledge Hub - a page on which initiatives related to the TCFD's recommendations are published, which has already featured 14 case studies (mainly from companies in the financial and non-financial sectors). In the case of Suzano, the highlight was this Sustainability Center, which contains financial information related to climate change, in line with the recommendations for measuring and transparency of results proposed by the TCFD. Over the last two years (2023 and 2022), the company carried out an analysis with an external consultancy to become 100% compliant with the guidelines and intends to implement its results in 2024. The analysis showed that the company has a high performance in its climate strategy and the structuring and disclosure of its climate metrics and targets. The dimensions of governance and risk management are where the company has the greatest opportunities for improvement;
• Science Based Target initiative (SBTi): as part of its commitment made in 2021 to the Business Ambition for 1.5°C and SBTi initiatives, in 2023 Suzano submitted for validation its greenhouse gas emission reduction and CO₂ removal targets aligned with the methodologies and guidelines stipulated by SBTi. The technical details of the targets submitted have not yet been published, as they are subject to possible changes during the validation process. While awaiting approval, Suzano continues to communicate with SBTi, not only to collaborate with the approval of the target proposals submitted, but also to continue monitoring both the development of the specific tool for the Pulp and Paper sector's 1.5°C trajectory, and the updates to the Forests, Land Use & Agriculture Guide (SBTi FLAG), which may be modified after the official publication of the global methodology for calculating removals (GHG Protocol Land Sector and Removals, currently in the pilot phase). In this way, we reaffirm our commitment to ensuring a methodologically robust approach to further increase our ambitions and speed up our journey towards decarbonization and removing carbon from the atmosphere. It's worth mentioning that the company's current voluntary decarbonization and removal targets are already science-based and in line with the Paris Agreement.

Suzano Decarbonization Plan

In 2023, Suzano made significant progress in developing its Decarbonization Plan, concentrating its efforts on several fronts. Special emphasis was placed on studies into decarbonization solutions, involving updating the marginal abatement cost curve (MACC). With the support of specialized consultants, a series of internal workshops were held, in which different departments, such as Engineering, Logistics, Energy, R&D, Supply Chain, and New Business, collaborated to gain valuable insights into projects and opportunities related to decarbonization.

We also revised the projected emissions for 2050, taking into account the company's growth assumptions provided by the Strategy team. This exercise provided a clearer vision of the decarbonization path that is being designed. Suzano also conducted an in-depth analysis of the main publicly available frameworks related to the climate transition, identifying the requirements necessary to comply with each of them, while simultaneously evaluating the parameters already met by the company.

Suzano's ambition has been submitted for evaluation by the Science Based Targets initiative, with target proposals forwarded for approval next year. This commitment to the initiative's guidelines reflects the company's effort to align its sustainability goals with internationally recognized standards.

Looking ahead to 2024, Suzano will focus on deepening the decarbonization levers identified, seeking technical details to enable effective alternatives. The process of setting targets according to Science Based Targets methodologies will continue, while the decarbonization roadmap will be refined, especially after the targets are approved by the SBTi. The company will maintain its commitment to involving the various internal areas that contribute to the evolution of the issue, as well as working to increase adherence to climate transition frameworks, to fully comply with these requirements.

Suzano at COP28

Given Suzano's stature and the systemic nature of the climate challenge to both society and the company's long-term prosperity, it is crucial for the company to be an integral part of the global effort to combat climate change. The immense magnitude of the threats and impacts of the climate crisis, coupled with the demand for correspondingly large scale solutions, reinforces the company's belief in its ability to champion innovative approaches. As a result, Suzano must actively engage and influence across multiple sectors to transition to a low-carbon economy. This entails participation in numerous associations, working groups and initiatives aimed at shaping the agenda for implementing the Paris Agreement and promoting the viability of regulated carbon markets. 

As part of this action, Suzano executives were engaged in the COP28 agenda, which took place between November 30 and December 12, 2023, in Dubai, participating in various discussions, dialogues and meetings on the relevant topics below and which the company has listed as priorities for its engagement:

1. Carbon market 

• Progress in defining the legal basis for regulating the carbon market in Brazil
• International negotiations for emissions trading
• Changes in the rules of voluntary markets and the search for greater integrity
• Follow-up on the definitions of rules for international emissions trading (ITMOS, Art 6.4)
• Monitoring the definition of methodologies for forest carbon credit projects (Art. 6.2 and 6.4)
• Acceptance of carbon regulation in Brazil by international markets (CBAM etc.)
• Networking with voluntary market players (Verra, ICVCM, VCMI, Gold Standard, etc.)
• Negotiation of protocols for measuring forest inventories (GHG, SBTi)

2. Biodiversity 

• Investment trends in Nature-Based Solutions and how Suzano can contribute to reversing biodiversity loss by 2030
• Implementation of the Global Biodiversity Framework

3. Energy

• Just Energy Transition: Suzano can contribute to the ambition of tripling the supply of renewables and doubling energy efficiency in the world by 2030 through the use and export of renewable energy from biomass

4. Solutions for climate change

• Nature as an essential element in climate transition plans
• Adoption of more ambitious science-based targets for emissions reductions and nature (using SBTi-FLAG)
• Adoption of the Taskforce on Nature-related Financial Disclosures (TNFD), an initiative that allows companies to incorporate nature-related risks and opportunities into their strategic planning, risk management and asset allocation decisions through reporting recommendations
•  Gradual reduction of fossil fuels:
  • Investment in the development of technologies and the use of new products to make this reduction possible;
  • Promoting the use of renewable sources such as biomass 

With the Ibá association, of which we are a member, Suzano has followed the agenda of official negotiations mainly on the following issues: 

• Article 6 of the Paris Agreement (in more detail, articles 6.2 and 6.4);
• Follow-up on announcements by the Brazilian federal government;
• Highlighted COP agendas, such as: 
  • Loss and damage;
  • Connection of the climate and biodiversity agenda;
  • Climate finance;
  • Results of Globalstocktake (increasing ambition and commitments made in the Paris Agreement, to be presented at the 2025 COP).

Road to COP30

During 2023 and throughout the COP, Suzano was actively involved in national and international discussions, participated in bilateral meetings with various stakeholders and attended relevant events. This commitment allowed the company to understand the opportunities, identify trends and outline possible action strategies for COP30.

For Suzano, the COP agenda represents an annual commitment developed throughout the year in conjunction with the associations of which the company is a member. This collaboration is aligned with the engagement strategy established by the company.

For more information on Suzano's involvement in associations, see the "Participation in associations" indicator.