Climate change is a major global challenge. According to the World Economic Forum's Annual Global Risks Report¹, the most likely risks over the next ten years are the failure of climate action (in 1st place) and weather extremes (in 2nd place). The planet has been experiencing temperature increases, especially due to anthropogenic actions, which promote the emission of greenhouse gases (GHG), resulting in a series of impacts² on natural ecosystems and communities and the development of economic activities.

Combined with the need to act to mitigate and adapt to climate change, the private sector is taking a leading role in this agenda and seeking to understand how these issues affect its economic and financial performance and what business strategies can respond to the predicted scenarios of rising temperatures. This includes both risks and opportunities associated with a climate-resilient, low-carbon economy - that is, one geared towards generating capital with lower GHG emissions intensity.

In its quest for process efficiency, Suzano has historically considerably reduced the emissions linked to its production. With a degree of renewability in the energy matrix³ of over 88% (scope 1), the company's GHG emissions intensity indicators per tonne of product produced are currently one of the best in the sector. Suzano already has a low-intensity indicator when compared to its main market competitors.

We understand that acting to combat climate change⁴ is everyone's role, and the integrated operation of our business - which links our forests to our industrial units - places us as central players in advancing this agenda. That's why ensuring that we continue to work on decarbonizing our operations inspires us to develop better solutions.

The sum of the emissions resulting from our production process (Scope 1) and the purchase of electricity (Scope 2), mapped annually in the Greenhouse Gas Inventory⁵ about the volume of finished products (pulp, paper and consumer goods).

Our emissions intensity target is in line with the Paris Agreement, established in 2015. Our emissions intensity is already one of the lowest in the sector, according to the Transition Pathway Initiative.

Reduce the intensity of Scope 1 and 2 greenhouse gas emissions by 15% - from 0.2133 tCO₂e/t to 0.1813 tCO₂e/t by 2030

In 2023, the intensity of our emissions (Scopes 1 and 2) per tonne of production was 0.2057 tCO₂e/t⁷, which represents an increase of 4.8% over the previous year.

We had a year of reduced production, marked by several stoppages, affecting the operational efficiency of the mills. Direct emissions (Scope 1) increased slightly due to the influence of emissions from agricultural activities, as a result of the consolidation of the forestry base. At the same time, there was a slight increase in stationary emissions — i.e. from fixed sources — due to the reduction in the pace of production and the resumption of mills after general stoppages, requiring greater consumption of fossil fuels.

Emissions from energy procurement (Scope 2), which involves units that import electricity, remained stable. The addition of two new factories - Mogi das Cruzes (SP) and Ribas do Rio Pardo (MS), under construction since 2022 - increased consumption, but this was offset by an improvement in the average emission factor of the electricity supplied by the National Interconnected System. This factor decreased by 10% due to the increase in energy generation from renewable sources in 2023, balancing the impact of increased consumption.

Therefore, the target indicator was impacted by the 2% increase in absolute emissions (Scope 1 + 2), combined with the decrease in the amount of product generated, expressed in tonnes, which makes up its denominator.

Additional information:

The production indicator covers pulp, paper, and consumer goods, differing from the finished volumes disclosed in the financial statements. Our ambition, defined based on historical pre-merger data between Fibria and Suzano Papel e Celulose, reflects an increase in post-merger efficiency with the integration of industrial and forestry processes, resulting in operational gains and a reduction in emissions.

The target was set based on the Transition Pathway Initiative (TPI) approach to decarbonization in the pulp and paper sector, seeking to promote a low-carbon economy. We used our own data and growth projections, taking into account projects that reduce emissions and the TPI's trajectories for limiting global warming to 1.5°C. This ensures that our commitment is aligned with the 2015 Paris Agreement⁸.

The annual calculation of the commitment is verified by a third party, and we do not include the use of carbon credits to achieve it. For more details, see the "GHG Emissions and Methodology" indicator.

In 2024, we will continue to implement initiatives to improve operational efficiency and reduce fossil fuel consumption. This includes increasing the use of biomass and black liquor in energy generation, as well as incorporating new technologies, such as gasification at the new plant in Ribas do Rio Pardo (MS), scheduled to begin operations in the same year, as well as the Master Plan at the Jacareí Unit (SP), a plan for operational improvements to achieve greater efficiency and yield at the unit.

Also, as part of our commitment made in 2021 to the Business Ambition for 1.5°C and Science Based Targets Initiative (SBTi) initiatives⁹ ¹⁰, we have submitted new GHG emission reduction and CO2 removal targets for SBTi validation.  The technical details of these targets will not be disclosed at this time due to possible changes during validation. Therefore, while we await approval in 2024, we will continue to collaborate with the initiative to homologate the proposed targets and follow up on updates to the SBTi FLAG.

At the same time, we are conducting studies to define decarbonization scenarios in line with the Goals of the Paris Agreement. We thus reaffirm our commitment to strengthening our ambitions through robust methodological approaches and accelerating our journey towards decarbonization and removing carbon from the atmosphere.