Suzano is actively working to reduce future energy use and greenhouse gas emissions. Key initiatives include setting a science-based target (SBTi) to cut scope 1 and 2 emissions by 50.4%, from 1,962,457 tCO₂e to 973,379 tCO₂e by 2032. The company is also taking steps to enhance energy efficiency through measures such as waste-heat recovery and cogeneration, while continually improving its energy monitoring practices. These efforts underscore Suzano’s dedication to transitioning toward a low-carbon economy. 

Suzano primarily relies on renewable sources for its energy matrix, with biomass as the main source. This biomass comprises bark and wood-chip rejects, along with black liquor, a by-product of pulp separation that serves as the company's primary fuel for energy production. Additionally, a few industrial units somewhat use biological sludge from effluent treatment as fuel in biomass boilers. 

Suzano is a leading biomass energy producer in Brazil, with an installed capacity of about 1.85 GW. The company supplies excess energy from its mills in Aracruz (ES), Imperatriz (MA), Mucuri (BA), Três Lagoas (MS), and Ribas do Rio Pardo (MS). Some consumer units, including the Conceição da Barra Warehouse (BA), Barcaças Maritime Terminal (BA), and the Nova Viçosa Office (BA), transitioned to the Free Energy Market in 2025, enabling them to purchase renewable energy generated by Suzano. In addition to self-sufficient renewable energy plants, the production sites are supplied internally, ensuring that renewable energy projects benefit the entire organization. 

Suzano implements recurring practices, outlined below, to effectively manage this issue and demonstrate its dedication to sustainability and energy efficiency across the entire production and distribution chain. 

Own generation allocation

Each month, the Suzano Group's units' electricity usage in the free market is supplied by surplus energy from its exporting plants, via the regulatory allocation mechanism called AGP, which is managed by the Electricity Trading Chamber (CCEE) in Brazil. 

Sale of surplus energy 

After meeting internal energy needs, Suzano sells any surplus on the free-energy market. The company employs virtual power purchase agreements (VPPAs) with varying terms to maximize commercial advantages. 

I-REC certification 

Since 2022, the Três Lagoas (MS) unit has been certified by the International REC Standard (I-REC), enabling Suzano to sell clean and renewable energy certificates. This initiative strengthens the company's dedication to a sustainable energy mix and creates value for stakeholders. In 2025, 340,000 certificates were sold, generating a total of BRL 341,000. 

Brazil's energy sector 

Suzano actively participates in Brazil's energy industry and complies with both local and federal regulations, such as: 

• National Energy Plan 2050: long-term strategy developed by the Energy Research Company (EPE) based on the guidelines provided by the Ministry of Mines and Energy (MME). 
• Ten-Year Energy Expansion Plan: forecasts for the growth of the energy sector, including insights from EPE. 
• Decree No. 5.163/2004: regulations governing commercialization and concessions within the electricity sector, overseen by the National Electric Energy Agency (Aneel). 
• Procedures of the National Electric System Operator (ONS) and the CCEE: rules for energy operations and sales, as established by Aneel resolutions. 

In 2025, Brazil faced challenges in supplying the National Interconnected System with renewable energy sources, primarily due to the hourly variability of wind and solar power. This led to increased price volatility and more frequent use of fossil fuel plants. Suzano, a key electricity exporter, emphasizes its crucial role in the sector by providing reliable renewable energy, optimizing consumption, reducing usage during operational opportunities, and engaging in mechanisms like Demand Response while adjusting its generation. 

The company commits annually reporting its plants' energy usage to the EPE, which is responsible for preparing for the National Energy Balance (BEN). This reporting is crucial to ensuring transparency and accuracy in the country's energy data and provides a foundation for strategic decision-making in Brazil's energy sector. 

Risks of using biomass as the main source of energy 

Biomass, particularly black liquor from wood, plays a crucial role in energy production during pulp manufacturing. Burning this material generates steam, which is used for electricity generation and industrial processes. Disruptions in biomass supply or steam system failures can directly affect production levels. 

Although biomass is Suzano's primary energy source, reliance on fossil fuels such as natural gas and fuel oil poses notable challenges. These include market price fluctuations, dependence on external suppliers, and potential input shortages. Moreover, fossil fuel use raises greenhouse gas emissions, impacting sustainability. It is important to note that fossil fuels are used only at specific times and do not constitute a large part of the fuel mix for steam and electricity production. 

To mitigate these risks and enhance its operational stability, Suzano has implemented various practices: 

• Forest Stewardship: The company upholds robust forest management practices to ensure sustainable, resilient wood supply. These efforts secure ongoing biomass availability despite climatic or logistical hurdles. 
• Monitoring and automation: Suzano employs advanced technologies to oversee and manage boilers and steam usage, enhancing energy efficiency, minimizing losses, and optimizing resource utilization. 
• Investment in research and development (R&D): the company continually invests in innovative solutions to enhance biomass use and reduce dependence on fossil fuels. These initiatives include developing technologies that improve operational efficiency and mitigate environmental impacts. 

By incorporating these practices into its management approach, Suzano reduces the risks linked to biomass use and reaffirms its dedication to energy efficiency and sustainability. This strategy helps the company maintain consistent, high-quality production processes while also supporting a cleaner, more renewable energy matrix. 

Energy efficiency 

Suzano adopts a robust approach to energy efficiency by utilizing waste heat recovery systems and combined heat and power cogeneration units. Our pulp production operates on a closed-loop cycle for steam and thermal energy, where heat produced at various process stages is recycled to enhance energy efficiency and minimize waste. 

Over the years, the company has implemented several projects emphasizing energy efficiency and resource optimization, notable for their use of advanced technology and sustainable methods. Below are the key projects: 

• Thor Turbines Project: a solution that began in 2020, aims to optimize steam distribution in turbogenerators to maximize electricity output using machine learning. Developed by the company's Digital team, it also has high expectations for 2026; 
• Dessuper: This project operates in collaboration with Thor Turbines to balance electricity output and fossil fuel use. In 2025, it achieved notable results at various plants, cutting natural gas use by 11.2 million cubic meters, about 412,000 gigajoules of energy. Its deployment has expanded to additional units, further strengthening its role in the company's energy strategy; 
• RPA: originally developed to forecast natural gas consumption and automate plant scheduling, helping to avoid costly penalties. This project stood out for its significant financial benefits, saving millions in penalties, and optimizing resource use. Additionally, by 2025, the Jacareí (SP), Suzano (SP), and Limeira (SP) units transitioned to the free gas market; 
• Methanol: focused on reducing natural gas consumption and spill prevention, the mechanism optimizes methanol utilization in furnaces and boilers. This project greatly enhances industrial process efficiency, saving about 2.28 million cubic meters of natural gas annually, equivalent to 84,000 gigajoules of energy, aligning with Suzano's objectives for sustainability, cost savings, and energy efficiency; 
• Virtual Total Titratable Alkalinity Sensor Project: the development of a virtual ATT sensor, leading to significant improvements in liquor concentration control. This advancement enables system stabilization and dead load reduction, ultimately decreasing steam and electricity consumption across the plant. 

Suzano's energy data 

In 2025, Suzano enhanced the centralization and automation of energy data, consistently fostering integration between technical and business sectors. By establishing a single repository, mapping processes, and assigning clear responsibilities, the company reinforces its operational governance, progressing towards greater simplification and ongoing improvement, aligned with its corporate principles. 

This approach enables Suzano to further advance its role in promoting a cleaner, more sustainable, and efficient energy matrix, benefiting both the company and Brazilian society.