Climate change constitutes a significant global challenge. As delineated in the World Economic Forum's Annual Global Risks Report¹, the most probable risks in the forthcoming decade include the failure of climate action (predominantly) and extreme weather events (second). The Earth has been experiencing elevated temperatures primarily attributable to anthropogenic activities that increase greenhouse gas (GHG) emissions, resulting in a range of impacts² on natural ecosystems, societal communities, and economic development.

Aligned with the imperative to address climate change through mitigation and adaptation, the private sector has assumed a leading role in these efforts. It is actively seeking to understand the impacts of these issues on its economic and financial performance and exploring business strategies to respond to projected scenarios of rising temperatures. This encompasses both risks and opportunities associated with a resilient, low-carbon economy—focusing capital generation with reduced GHG emission intensity.

Suzano has substantially reduced its emissions through process optimization. With over 88% renewability in its energy matrix³ (Scope 1), the company's greenhouse gas emissions intensity per ton of product is now among the industry leaders. Furthermore, Suzano consistently maintains a low emission-intensity indicator relative to its primary market competitors.

We recognize that combating climate change is a shared obligation among all stakeholders, and the way our enterprise functions, linking our forests to industrial facilities, positions us as important contributors to advancing this initiative. Consequently, we remain dedicated to decarbonizing our operations, which drives us to seek more effective solutions.

The absolute emissions reduction commitment for Scopes 1 and 2 was approved by the Science Based Targets initiative (SBTi) in 2025. According to the SBTi methodology, the emissions covered by the target begin at the “forest gate,” meaning emissions associated with forestry operations, such as planting, Forest Stewardship, and harvesting, are excluded from the commitment. Only emissions resulting from the transportation of wood to manufacturing facilities are included. Furthermore, the current target does not yet encompass emissions stemming from recent mergers and acquisitions, such as the Kimberly-Clark and Suzano Packaging assets. Nevertheless, a review and potential expansion of the scope are scheduled to commence in 2026.

Furthermore, the commitment further reinforces our Zero Deforestation Position by incorporating the following statement: “Suzano commits not to promote deforestation in its main commodities associated with deforestation, with a deadline of December 31, 2025.” Although our Wood Procurement Policy has included a guideline prohibiting sourcing wood from officially deforested areas since July 2020, the explicit inclusion of this commitment by SBTi publicly and transparently enhances our ongoing initiatives to promote forest conservation and sustainable production. It also emphasizes that our decarbonization journey aligns with the principles of avoiding native ecosystem conversion and the responsible utilization of natural resources.

Reduce absolute scope 1 and 2 GHG emissions in 50.4% by 2032 from a 2022 base year.

In 2025, within the scope of the SBTi target, Suzano' s absolute emissions in Scopes 1 and 2 totaled 2, 025, 2,025,261 tCO ₂ e, reflecting a reduction of approximately 1. 3% compared to 2024 (2, 051, 2,051,991 tCO ₂ e). Despite this annual progress, the figure remains 3. 2% above the target baseline year, indicating that key operational and structural factors influenced performance during this period.

Throughout 2025, specific movements impacted emission trends. In Scope 1, one contributing factor was increased fuel oil consumption at a particular industrial unit due to the operation of a boiler at the end of its useful life, which no longer met energy efficiency standards. The equipment was replaced in 2025, and the effects of this change are expected to become apparent from 2026.

Additionally, in Scope 1, there was a positive impact from replacing fuel oil with liquefied natural gas (LNG) at one unit. Although this technological transition involves adjustments and transitional phases with fluctuations in consumption, the structural change is expected to deliver substantial benefits by decreasing emission intensity and improving energy performance. Furthermore, the new biomass gasification plant commenced operations at the Ribas do Rio Pardo (MS) facility, significantly reducing and avoiding fossil fuel consumption at the site. Process enhancements are planned to continue into 2026, even after its inaugural year.

Moreover, the company's expansion has led to increased consumption of energy resources, primarily for mobile combustion, driven by heightened demand during wood transportation.

Overall, the 2025 results reflect a combination of structural advancements, such as substituting high-emission fossil fuels with lower-emission alternatives, along with temporary operational challenges, including managing end-of-life assets. Although total absolute emissions still exceed the baseline year, the reduction relative to 2024 demonstrates that the implemented initiatives are beginning to yield the anticipated results.

In 2026, the company will continue to reinforce the foundational elements supporting its climate transition. Focus will be directed towards enhancing operational efficiency and expanding structural initiatives to reduce emissions. Technical departments will maintain an integrated approach to refine processes, optimize routines, and identify opportunities that foster increasingly efficient operations in accordance with Suzano's climate ambitions.

The Decarbonization Working Group will continue to serve a strategic function by fostering synergy across sectors, supporting solution development, and ensuring alignment with corporate guidelines. Through structured, regular agendas, the group will further advance project technical maturity, consolidate best practices, and facilitate the ongoing evolution of decision-making processes related to decarbonization.

Throughout the year, efforts will intensify to strengthen internal partnerships and enhance capabilities to identify and evaluate opportunities that drive consistent emission reductions, thereby reaffirming the company's commitment to a responsible, progressive, and science-aligned decarbonization journey. 

In the pursuit of decarbonization, we acknowledge that climate challenges necessitate collective solutions. We are convinced that meaningful transformation can only be achieved through the active engagement of the entire value chain. Consequently, we have made significant progress in initiatives that reinforce our commitment to a low-carbon economy and strengthening more sustainable partnerships.

As part of our initiatives, we have been actively engaged in the CDP Supply Chain program since 2021, aiming to enhance climate management among suppliers through emissions measurement, increased transparency, goal setting, and the assessment of climate risks and opportunities.

Despite our suppliers' consistent adherence to this initiative year after year, we resolved in 2025 to establish a comprehensive engagement program targeting our prioritized suppliers. Our objective is to assist them in their individual climate initiatives by promoting the development of science-based goals, commitments, and tangible actions towards decarbonization.

Our engagement initiative, known as the “Climate - Share Program,” was established to foster a more collaborative relationship with our primary suppliers. These suppliers are selected based on the criteria of economic representativeness (spend) and their impact on greenhouse gas emissions. By collecting detailed information, we have been able to evaluate each supplier's maturity level regarding the climate agenda and provide targeted engagement actions aligned with their respective maturity stages.

The program consists of three pillars:

Educational Pillar: providing technical training on climate change issues.

Evolution Pillar: developing personalized action plans for each supplier group, with follow-ups at a 
frequency agreed upon between Suzano and the supplier.

Recognition Pillar: creating a new category in the annual Procurement awards called “Suzano Valoriza” for partners who demonstrate the greatest engagement and improvement in the program over the designated period.

Regarding customers, we consider maintaining a close relationship with them essential, and our SBTi engagement goal reinforces this commitment. To strengthen this agenda, we have launched an engagement strategy with clients focused on decarbonization, biodiversity, and social impact. The goal is to support them on their sustainability journeys, identify synergies, and promote practices aligned with the low-carbon economy.

We created a segmentation and prioritization matrix for global pulp customers, structured around two main axes.

Sustainability Maturity: evaluates customers' ambition levels, including their commitments to SBTi, alignment with Suzano's goals, and history of engagement with ESG issues.

Relevance to the Business: evaluates purchase volume, strength of commercial relationships, and engagement in the company's strategic plans.

Based on this analysis, clients are categorized into quartiles (tiers) and provided with customized engagement roadmaps (either for individuals or groups) which encompass: ESG data sharing, educational sessions, technical exchanges, value chain engagement, and the formulation of joint sustainability initiatives.

We closely monitor the sustainability initiatives of these priority clients and the working groups we hold with them to ensure progress towards the engagement target.

Suzano's commitment to involving its value chain in climate goals received SBTi approval in 2025. This objective encourages both suppliers and customers to commit to emission reductions aligned with climate science.

The target encompasses the following Scope 3 activities: procurement of inputs and services (category 1), transportation and distribution of products and inputs (category 4), and processing of products sold (category 10), which together account for over 67% of indirect emissions. Regarding suppliers, those involved in industrial and energy operations are included. However, suppliers associated with forestry operations are excluded from the scope of this target.

It is important to note that the objective of the target is not to enforce immediate emission reductions from these partners, but to motivate them to establish their own commitments concerning the climate agenda and the Science Based Targets initiative (SBTi). Consequently, these partners will be required to undertake actions to lower their emissions, which may indirectly contribute to the reduction of Suzano's scope 3 emissions over time.

The verification of the target's achievement shall be based on the percentages of expenditure with suppliers and revenue with customers in the year 2028, without adopting a fixed base year. This approach ensures that the target will be updated in accordance with changes in the value chain.

The presented calculation of the result is based on the selection of suppliers that account for 80% of the expenditure and customers that constitute 80% of the annual revenue. This figure may vary due to fluctuations in volume and contractual agreements throughout the target's validity period.

ACHIEVE 80% OF OUR SUPPLIERS, BY SPEND, AND 80% OF OUR CUSTOMERS, BY REVENUE FROM PRODUCTS SOLD, COMMITTED TO SCIENCE-BASED CLIMATE TARGETS BY 2028.

We have established a comprehensive program, the Share Climate Program, to connect suppliers and share experiences with key companies. In 2025, we introduced a commitment letter for participating companies to track their adherence to the Share Program, reaching a 70% compliance rate. Additionally, we enhanced our suppliers' understanding of the climate agenda by collecting data and categorizing suppliers into maturity groups, allowing us to tailor our engagement efforts. The data collection saw a 78% response rate, and based on the results, we conducted educational workshops tailored to each maturity level. These metrics demonstrate the program's success thus far, and we plan to continue monitoring KPI trends in upcoming cycles.

Additionally, we collaborate closely with internal partners like Procurement and Logistics, concentrating on two main pillars:

1. Engaging buyers in the Share Program, encouraging supplier participation and evolution;
2. Developing a collaborative strategy between the Procurement and Climate Change departments to progress towards the SBTi target.
    

We engaged with customers through various personalized activities, such as visits and meetings, collaborated on projects like the Carbon Neutral Notebook with the Chinese customer Sun Paper, and enhanced their understanding of Suzano's decarbonization strategy through the Climate Transition Action Plan and other initiatives. Another key effort was the development of a Decarbonization White Paper on China’s Pulp and Paper sector, in partnership with Deloitte and FUDAN. This white paper was presented and shared with our value chain to foster discussions on solutions for a low-carbon economy.

In 2026, we shall proceed with the second cycle of the Share Climate Program by introducing new training courses, experience exchanges, workshops, and other supplier engagement initiatives. Additionally, we will maintain oversight of the action plans to ensure that our priority suppliers sustain their progress in their climate initiatives. Moreover, we will continue to collaborate closely with internal partner departments, including Procurement and Logistics.

With clients, we shall persist in implementing targeted actions aligned with their ambitions, emphasizing their sustainability journeys, potential synergies, and the promotion of low-carbon practices.