Dimensão SASB
Greenhouse Gas EmissionsSetor SASB
Pulp & Paper ProductsSetor SASB
Containers and PackagingDimensão GRI
Material TopicsTCFD
ContextTCFD
Related IndicatorsWhat is Climate Change
Climate change is a major global challenge. Planet Earth has been registering sharp temperature increases since the pre-industrial era, mainly due to the advent of the Industrial Revolution and other anthropic actions that lead to the emission of Greenhouse Gases (GHGs), as stated by the Intergovernmental Panel on Climate Change (IPCC). This increase in average global temperature triggers a series of effects, such as increased frequency and severity of extreme weather events, changes in rainfall patterns, resource shortage, and sea level rise, which, in turn, affect natural ecosystems, human communities, and the development of economic activities.
The rise of the debate on this issue in the global agenda had its first evidence by means of the elaboration of the document known as the United Nations Framework Convention on Climate Change (UNFCCC), issued by 179 countries during the United Nations Conference on Environment and Development held in Rio de Janeiro in 1992, commonly referred to as Rio 92, aimed at promoting the stabilization of GHG concentrations in the atmosphere. This conference marked the increasing concern of global leaders regarding the future of the environment and society, and their commitment to a global agenda of actions directed to the mitigation of socio-environmental impacts, especially climate change. In 1994, the Convention was ratified and began to be conferred annually at the Conference of the Parties (COP), whose main objective is to assess the state of the climate emergency and address effective solutions.
The UN Sustainable Development Goals (SDGs), established in 2015, also acknowledge challenges and set global targets to fight climate change and issues directly related to climate, such as sustainable consumption and production, availability of clean water, clean energy generation, and preservation of terrestrial ecosystems. Aligning their goals with the SDGs is therefore essential for the private sector. Faced with this scenario, at the COP21 in 2015, national governments acknowledged the urgency of adopting further measures to mitigate climate change and adjust to its effects. This led to the Paris Agreement, signed by 195 countries, and its primary goal was to reduce GHG emissions. From this agreement arose the Nationally Determined Contributions (NDC), which consist of voluntary emission reduction commitments defined by each country and proportional to its responsibility in the global emissions scenario. This agenda has been endorsed by the private sector, civil society and subnational governments to contribute to and even exceed their defined ambitions to limit the temperature increase to 1.5°C compared to pre-industrial levels.
COP27, held in 2022 in Egypt, raised great expectations for the implementation of important agreements such as the Paris Agreement and other commitments made in previous conferences. It was expected decisions would be taken to solve the main current challenges related to climate change, such as limiting the average global temperature increase to 1.5ºC as well as the lack of funding for adaptive actions, among others. Further information about the expectations and results of COP27 can be found below, in the item "Suzano at COP27".
Climate change is the consequence of actions taken by a range of different entities in society, from different sectors. As such, it should be the collective duty of the public and private sectors to act towards the development of solutions that foster the adaptation and mitigation of climate change effects.
Visit the Climate Change page to see how Suzano is engaged in this agenda.
Suzano’s Climate Plan
Considering that the activities of the paper and pulp sector rely on forest management, use of water resources, soil use and industrial activities, climate change poses substantial challenges and opportunities for the sector. In Suzano's business model, planted and native forests contribute directly to the removal and storage of carbon dioxide (CO₂) from the air, preservation of biodiversity, and regulation of the hydrologic cycle, among other benefits. Simultaneously, the company operates under a model focused on eco-efficient operations and on providing renewable source products as a substitute for fossil-based products. Consequently, Suzano has a great responsibility concerning its role in the mitigation and adaptation to climate changes, contributing with governments, civil society and other private sector entities to confront this challenge.
As such, Suzano, with its Sustainability Strategy, acknowledges the importance and need to be a leader and transforming agent in the combined development of innovative and sustainable solutions that can contribute to solving society's challenges. Assuming a systemic and collaborative approach, connecting local and global agendas and considering the main frameworks, challenges, and scientific advances, the company remains committed, based on a robust management model for the issue of climate change. The goal of Suzano's Climate Plan is to further integrate climate change into business, driving its strategic outlook toward the transition to a low carbon economy. We strive to create a thriving business model of increasing resilience and catalyzing opportunities.
The Plan is represented by the company's main focal points regarding the issue (Integration, Mitigation, Transition and Adaptation), work fronts that are linked to these focal points (Sustainable Finance, Communication and Education, Engagement and Influence, Climate Intelligence, Forest Resilience, Efficiency, Carbon Removal, Solutions Development and Carbon Monetization) and the four coordinates that demonstrate how Suzano manages its fronts (Governance, Risks and Opportunities, Performance and Transparency). This model was designed considering the complexity and multidisciplinarity of the issue and was developed following the leading management recommendations for the issue, such as those of the Task Force on Climate-related Financial Disclosures (TCFD). The four areas of action gather nine work fronts and are linked together as indicated by the graphic representation's colors. Coordinates crosscut the entire action plan.
This Plan guides internal and external actions of Suzano with its multiple stakeholders and strives to contribute to the achievement of the Commitments to Renew Life, containing two climate targets:
With these targets, the company commits to go beyond being carbon neutral and reduce the intensity of greenhouse gas emissions. This means that Suzano commits to remove more greenhouse gases (GHG) from the atmosphere than it emits, effectively working towards significant additional removal, becoming carbon negative. By offsetting its own emissions, due to its extensive forest base, the company does not depend on other compensatory measures such as carbon credit purchases. Rather, it has the capacity to generate carbon credits itself by way of specific projects, as can be seen in the indicator “Carbon Market at Suzano”.
Suzano's GHG emission intensity indicators per tonne of product produced are among the lowest in the sector. Still, the company continues to implement projects and recurring initiatives aimed at reducing these indexes. To keep abreast of good international practices and positively influence the progress of the private sector on this issue, Suzano has historically been involved in voluntary initiatives. Furthermore, Suzano always seeks to base itself on scientific evidence and voluntary market standards supporting private sector engagement, while considering the challenges and transforming potential of business. Accordingly, studies by the Intergovernmental Panel on Climate Change (IPCC) including climate scenarios, the GHG Protocol and Science Based Target standards for measuring and reporting GHG emissions and removals are used as reference for the company's climate change management. In addition, Suzano has the Climate Change Manager participating on the Steering Committee of the Greenhouse Gas Protocol Land Sector and Removal initiative for the development of an emissions removal methodology applicable to sectors linked to land use.
Suzano has a public position on the Zero Deforestation and Wood Supply Policy, which states that the company does not perform any type of native forest suppression for its production. Cultivation expansion is done invariably in areas that have undergone human interference. In this regard, additionally to abiding by the Forest Code and further Brazilian legislation regarding this issue, the company also makes a public commitment to adhere to the Principles and Criteria of the Forest Stewardship Council® (FSC®) ¹ and the Brazilian Forest Certification Program (CERFLOR), thereby certifying its good conduct when developing forest products in areas under the scope of certification, respecting the region's environmental, social and economic aspects. The company also has an environmental restoration program that aims to restore native forest areas, including river spring areas.
In line with the premise of contributing to fight the climate crisis, besides the two Commitments to Renewing Life directly related to the topic, six other targets, with a deadline of 2030, are indirectly connected:
Recognitions regarding Climate Change
Suzano's commitments to sustainability and long-term value generation are recognized by external assessors, who play a relevant role in the global agenda concerning the issue. Regarding the climate change agenda, in 2022 the company received the following recognition:
ACT Initiative: ACT is a joint voluntary initiative of the UNFCCC secretariat that aims to spur climate action in companies and align their strategies with relevant and ambitious low-carbon pathways. Effectively, ACT provides sector-specific methodologies to develop transition plans to achieve the net zero target of the Paris Agreement. ACT promotes climate responsibility for policymakers, empowers financial institutions, and advocates for relevant data on decarbonization strategies to be publicly accessible. Suzano has been a participant in the Working Group to develop the methodology for the Pulp and Paper sector since 2020. In 2022, Suzano scored 12B+ in the ACT pilot, while the pulp and paper sector average was 8.6C.
Corporate Climate Action Transparency Index (CATI): Suzano ranked 63rd out of 1,000 companies worldwide in the Corporate Climate Action Transparency Index (CATI), an index that recognizes companies' efforts to reduce greenhouse gas (GHG) emissions in the supply chain. The index was developed by IPE (Institute of Public and Environment Affairs), a prestigious Chinese NGO dedicated to tracking the full range of GHG emissions for companies, especially in supply chain carbon emissions in pollution-heavy industries. In addition to its good standing, Suzano stood out for:
ESG Leading Enterprise Awards 2022: The company received the ESG Model Enterprise Award at the 2022 International Green Zero-carbon Festival held in Beijing, China. The Festival gathers over a thousand representatives from politics, business, academia, and media, as well as several companies presenting their sustainability goals and plans for a zero net emissions economy, as part of China's carbon neutrality goals for 2060. The awards recognize companies with outstanding contributions in the areas of green energy, carbon emissions reduction, technology innovation, and environmental protection. In addition, the main figures at the event highlight companies that display particular emphasis on the need for organizations in China and around the world to pursue a collaborative approach to green innovation.
Corporate Sustainability Index (ISE): The B3 Corporate Sustainability Index (ISE B3) was the fourth sustainability index created in the world, in 2005, and is the leading one in Brazil. It is a tool for comparative performance assessment of companies listed on the B3 under the corporate sustainability aspect. Among the dimensions assessed is Climate Changes. Suzano was selected to integrate the 2020/2021, 2021/2022 and 2022/2023 portfolios of the questionnaire, the latter comprising shares from 70 companies.
B3 Carbon Efficient Index (ICO₂): The Carbon Efficient Index is an indicator created by B3 in partnership with BNDES, (National Bank for Economic and Social Development). The index is composed of shares of companies participating in the IBrX-100 (indicator composed of the 100 most traded assets in the Brazilian capital market), which have agreed to assume transparent practices concerning their emissions of Greenhouse Gases (GHGs), such as preparing and disclosing the Greenhouse Gas Inventory, thus affirming their concern with global warming. When selecting the participating companies, the degree of efficiency in GHG emissions and the free float of each company are taken into consideration. This select group comprises 80 stocks listed on the B3, and Suzano was one of the companies listed in the portfolio from January to April 2023, for the third consecutive year. Suzano's number of shares corresponds to approximately 2% of the total theoretical index composition.
Carbon Diclosure Project (CDP) – Questionário Mudanças Climáticas: In 2020, we joined the CDP platform, which fuels investors and governments in their decision-making process based on important information about risk management, opportunities as well as social and environmental impacts. It is an initiative created to mobilize these parties to build and accelerate collaborative actions towards an effective development for current and future generations. In our debut year, according to the organization's methodology, we scored B in the three questionnaires answered, referring to climate, water, and forests. In 2021 and 2022 we focused on constantly improving our performance, working on identified gaps, both related to the company's actions and to transparency in the disclosure of these actions. This is how we scored, in all three questionnaires answered, an A- grade.
Transition Pathway Initiative (TPI): According to the platform, the reduction target for the intensity of Scope 1 and 2 emissions at Suzano is among the best in the sector and in line with the climate scenario of "below 2°C", that is, beyond the reduction scenario established in the Paris Agreement. In 2021 Suzano was at level 2 - Building capacity, but by 2022 its progress was recognized by the initiative, positioning the company at level 3, which considers the integration of GHG emissions management as well as risks and opportunities related to the transition to a low carbon economy at Suzano's operational and decision-making level (integrating into operational decision making).
Climate Action 100+ (CA100+): Released in 2017, the investor-led initiative has an initial focus on the 100 companies with the highest volume of direct (Scopes 1 and 2) and indirect (Scope 3) emissions, as identified from data modeled and reported by CDP. Within a year of the launch, investors were invited to nominate companies that have specific opportunities to drive the clean energy transition; that may be highly exposed to climate-related financial risks; or that may be critical at a regional or national level. A further 66 companies were identified through this process. Suzano was nominated for the initiative in late 2020, identified as having an important role in the transition to zero net emissions by 2050 or earlier. In 2022, out of the 10 indicators assessed according to Suzano's public information, only 2 match the initiative's criteria (medium and short-term GHG reduction targets). another two match partially, five do not match any criteria, and one was not evaluated because it is in Beta phase.
Task Force on Climate-Related Financial Disclosures (TCFD): Suzano was the first company in the pulp and paper sector to present a case study from the Task Force on Climate-related Financial Disclosure (TCFD), which was launched in 2015 on the TCFD Knowledge Hub - a page where initiatives related to TCFD recommendations are disclosed, and which has so far presented 14 case studies (primarily from companies in the financial and non-financial sectors). The highlight in Suzano's case was this Indicator Center, which contains financial information related to climate change, aligned with measurement recommendations and transparency of results proposed by the TCFD.
Science Based Target Initiative (SBTi): Suzano has joined the Business Ambition for 1.5°C and Science Based Target Initiative (SBTi), global initiatives to drive decarbonization of the world economy. In addition to these commitments, Suzano will establish goals in line with the 1.5°C science-based emission reduction target scenarios, as stipulated by the initiative. This effort will cover its own emissions as well as emissions from the value chain. It is worth noting that the Company's current decarbonization target is adherent to science and in compliance with the Paris Agreement. Suzano has been following SBTi publications and methodological revisions, such as the revision of the SBTi Sectoral Decarbonization Approach for the Pulp and Paper sector and the SBTi Flag, which may be updated after the publication of the global methodology for calculating removals (GHG Protocol Land Sector and Removals).
Suzano's Decarbonization Plan
Having one of the largest forestry bases in the world, Suzano understands its important role in the fight against climate changes and is constantly seeking to expand its activities and engagement on this issue. At Suzano, 2050 is now.
Accordingly, the Company is committed to go beyond reducing the intensity of greenhouse gas emissions (GHGs) and to be carbon neutral. This means that Suzano is committed to remove more GHGs from the atmosphere than it emits, that is, working toward being even more positive for the climate by means of the net removal of 40 million tonnes of carbon from the atmosphere by 2025, five years ahead of the original goal (2030).
We recognize that progress toward a low-carbon economy requires not only carbon removals, but also emission reductions. Both are substantial and urgent measures for mitigating the climate crisis and must occur concomitantly. And that is why Suzano has been working on the development of its Decarbonization Plan for all its Industrial and Forestry Units and logistics operations.
Most of Suzano's mills are energy self-sufficient, that is, they meet the demand for internal consumption and still export the surplus to the national interconnected system, with a degree of renewability of 88.1% of their matrix. Currently, Suzano has one of the lowest levels of GHG emissions per ton of product produced in the global pulp and paper sector. This is due to the implementation of several measures in recent decades to attain this degree of renewability and low carbon intensity, such as, for example, the replacement of fossil energy sources with renewable ones, such as biomass and black liquor.
Actions
Seeking the continuity of our decarbonization journey, in 2020 we assumed the commitment to reduce by 15% the intensity of Scope 1 and 2 emissions per ton of production (tCO₂e/t) by 2030 relative to 2015 emissions, chosen as the base year in reference to the Paris Agreement. As such, our Decarbonization Plan encompasses emission reduction projects on three main operational fronts, in addition to internal management and governance processes to leverage the approval of these projects and include carbon in decision-making at the Company.
In the Industrial Units, the company has reduced emissions through retrofit projects and increased efficiency of furnaces, boilers and turbogenerators in a gradual movement of reduction and replacement of more emitting fuels (such as fuel oil and natural gas) for less emitting fuels (such as biomass and black liquor), and also through the adoption of new technologies such as biomass gasification (Syngas), which will take place in the future Unit in Ribas do Rio Pardo (Mato Grosso do Sul State), currently under construction.
Gasification is a thermochemical biomass conversion process intended to produce a gas which can be used as a substitute for fossil fuels, replacing around 250 tonnes/day of fossil fuel at the future Unit in Mato Grosso do Sul.
Biomass gasification is an essential technology for the decarbonization of the pulp and paper sector. This is because all the carbon dioxide emitted during the use of this renewable gaseous fuel is absorbed by the growth of eucalyptus trees which will be reused in the gasification process, preserving a neutral carbon balance.
To this end, the Company has also sought to increase the generation of surplus renewable energy (based on biomass and black liquor) that is exported to the national interconnected system. This exportation contributes to the renewability of the Brazilian energy matrix and to the transition to a low carbon economy. The energy surplus sold may be subject to international certification of renewable energy, known as "I-REC (Renewable Energy Certificate)". In 2022, sales of I-RECs totaled BRL 411 thousand.
In the forestry area, Suzano achieves emission reductions by employing state-of-the-art technologies linked to the use of equipment with greater energy efficiency in forestry operations such as the use of cranes with greater production capacity and harvesters with lower fuel consumption per cubic meter produced. In wood transportation, the company carries out projects to reduce the average radius (distance between forests and mills), assesses the best modal and works on optimizing operation routes and expanding the cargo box, such as compositions of six-trailer trucks, reducing the number of trips required.
In addition, the Company also carries out studies aimed at the use of alternative fuels to replace diesel oil, electrical equipment, remote support systems, and reducing the need for on-site visits, as well as automatic detection of faults and deviations. One such example is the project deployed in the Mato Grosso do Sul operations which uses onboard technology in the trucks that monitors driving indicators, making it possible to pinpoint best practices and correct operational failures caused by drivers.
For the entire logistics chain, the Company employs technologies that expand efficiency and scale in transportation, seeking route optimization and synergies in product transportation between business units through the diversification of modals, use of less carbon-intensive fuels, such as CNG, and improvement in the vehicle occupancy rate. Suzano has also developed projects for the use of non-fossil fuels, such as the pilot project for transporting paper in electric vehicles in São Paulo, which will begin in 2021.
In 2022, Suzano and Grieg Maritime, in partnership with other players in the maritime industry, began a technical-economic feasibility study, investigating possibilities of using green ammonia in ships for transatlantic trips. additionally, Suzano is working together with COSCO Shipping on sustainability initiatives in the logistics chain, such as actively participating in the manufacturing design of new ships in order to maximize operational efficiency and reduce CO2e emissions.
In addition, Suzano increased the inclusion of ESG criteria and criteria related to GHG emissions in contracting processes for new logistics service providers and conducted training with suppliers who participate in the Climate Change program in the value chain in partnership with the CDP Supply Chain.
We perform internal carbon pricing exercises in new project analyses to measure and verify the impact on emissions, considering regulatory scenarios or opportunities linked to the carbon market. Accordingly, based on this analysis, financial indicators are created with and without the shadow carbon price, so that the impact on emissions is considered in the approval processes for new investments. One of our goals in 2023 is to expand the use of internal carbon pricing in the company.
Suzano expects the regulation of a carbon pricing system in Brazil to be implemented within the next three years. The company has been following various government debates on the subject, such as the establishment of a decree in 2022 as well as debates around draft legislation. Pending the establishment of this market, Suzano employs an internal carbon price to estimate its potential impacts.
Suzano supports the creation of a carbon market in Brazil and acknowledges an opportunity in future regulations to include afforestation, reforestation and restoration as an alternative to offset emissions. Our goal is to foster national and international debate on carbon regulations, raising the issue with the Brazilian Tree Industry (IBÁ), the World Business Council for Sustainable Development (WBCSD) and the Brazilian Coalition on Climate, Forests and Agriculture. We also monitor trends and engage in initiatives on this issue, such as the development of a European Union Carbon Border Adjustment Mechanism (CBAM) .
For 2023, we aim to continue to further develop the issue within the Company, training employees in the use of internal carbon pricing. We also intend to update our implicit carbon price through the MACC curve developed in 2020 on the basis of mapping new technologies and studying future modernization projects that increase energy efficiency while reducing and substituting fossil fuel consumption.
To further improve its practices and actions, Suzano always strives to base itself on scientific evidence and voluntary market standards that support private sector engagement, considering the challenges and transformative potential of the business, as is the case of the Taskforce on Climate-related Financial Disclosures initiative. Access TCFD indicator to find out more.
Suzano at COP27
Having one of the largest forestry bases in the world, Suzano understands its important role in the fight against climate changes and is constantly seeking to expand its activities and engagement on this issue. Accordingly, the Company is committed to go beyond reducing the intensity of greenhouse gas emissions (GHGs) and to be carbon neutral. This means that Suzano is committed to remove more GHGs from the atmosphere than it emits, that is, working toward being even more positive for the climate by means of the net removal of 40 million tonnes of carbon from the atmosphere by 2025, five years ahead of the original goal (2030).
The systemic approach adopted by Suzano in dealing with climate change makes us believe in the significance of engaging and influencing all different sectors towards a low carbon economy in building a prosperous and just future, centered on regeneration and sustainability. Therefore, we are involved in several fronts, associations and initiatives to formulate this agenda, to implement the Paris Agreement and facilitate a regulated carbon market, a significant financial tool for the decarbonization of the global economy.
As part of these actions, Suzano executives were involved in the COP27 agenda held in November 2022 in Egypt, attending various debates regarding relevant issues listed by Suzano as engagement priorities:
We seek to further encourage and engage the business sector and governments to increase the level and speed of their climate commitments by starting today. Promising results by 2050 or even 2030 would be too late.
Walter Schalka, Suzano's CEO, as a member of the World Economic Forum's Alliance of CEO Climate Leaders, signed the open letter addressed to COP27 World Leaders urging them to accelerate the transition to Net Zero.
Further, Suzano, in association with Itaú Unibanco, Marfrig, Rabobank, Santander and Vale announced Biomas, a fully dedicated company to the restoration, conservation and preservation of forests in Brazil, during an event held at the Climate Conference, COP27, in Egypt. It aims, over the course of 20 years, to have 4 million hectares of native forests restored and protected in different biomes in Brazil, such as the Amazon, Atlantic Forest and Cerrado. The area is equivalent to the territory of Switzerland or the Rio de Janeiro.
The project's first stage consists of identifying and prospecting areas, fostering nurseries for large-scale production of native trees, engaging local communities in the company's activities, debating project application in public areas, partnering with carbon credit certification platforms, and implementing pilot projects. From 2025 on, the goal is further expansion of scale up to the target of 4 million hectares. For more information, go to: https://www.wearebiomas.com/
During COP27, Suzano executives attended events where they engaged in debates and contributed to the progress of the climate agenda and related topics, such as:
Further, they participated in discussions, meetings with several players regarding the COP27 and related topics:
To learn more about Suzano's participation in associations, access the indicator “Participation in Associations”.
Communication as a tool for engagement
We understand the power of strategic communication to enhance engagement with Suzano's stakeholders. Therefore, we designed a communication plan that would tie together all the articulation made by the company. Among the actions developed were:
The debate on the climate agenda does not end with the COP27. That is why we will continue with our strategy of decarbonization, engagement and influence on the issue, striving to remain aligned with expectations of various stakeholders to build a real, effective and ambitious low carbon economy.