Climate change is an alarming global challenge, scientifically proven by the Intergovernmental Panel on Climate Change (IPCC), with impacts already being felt on the environment and society. Since the Industrial Revolution, human actions have increased greenhouse gas (GHG) emissions, resulting in record global average temperatures in 2023 and 2024, with 2024 being the first year to exceed 1.5 ºC above pre-industrial levels. Rising temperatures cause extreme weather events, affecting ecosystems, human communities, and economic activities, exacerbating inequalities, and violating human rights, especially for vulnerable populations.

Global concern for the future of the environment is reflected in the United Nations Framework Convention on Climate Change (UNFCCC), the Paris Agreement, and the Sustainable Development Goals (SDGs), which aim to stabilize GHG concentrations in the atmosphere. For the private sector, it is essential to align targets with the SDGs and the Paris Agreement to limit the temperature increase to 1.5 °C.

Suzano actively participates in international discussions, including the Climate Conference, and was involved in COP29 in 2024 in Azerbaijan, participating in discussions and meetings on relevant issues. Climate change results from actions by various sectors of society, requiring a collective effort by the public and private sectors to develop adaptation and mitigation solutions.

Climate change at Suzano

Given that the pulp and paper sector's activities depend on managing forests, water resources, land use, and industrial activities, climate change imposes significant challenges and opportunities on the industry. At Suzano, this is a material and urgent issue, and practical actions to reduce emissions and maximize carbon removal from the atmosphere are part of our day-to-day business. In the company'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 a high intensity of GHG emissions, mainly due to the use of fossil fuels. This places great responsibility on Suzano's role in mitigating and adapting to climate change, contributing with governments, civil society, and other private sector entities to face this challenge. To learn more about how the company's emissions are accounted for and monitored, visit the  “Greenhouse gas (GHG) emissions and methodology“ indicator.

Therefore, recognizing the importance of being a protagonist and transforming agent in the combined development of solutions to the climate crisis, Suzano has reviewed its practices and developed its strategy and management of climate risks and opportunities following the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD), now incorporated by the IFRS Foundation.

The company already has a strong track record in aligning with the TCFD's recommendations, and this indicator reports its performance by the institution's requirements and recommendations, as well as those of the International Sustainability Standards Board's (ISSB) IFRS S2 booklet on climate change. With transparency and highlighting the potential climate-related impacts, we will continue to strive to evolve the recommendations that have not yet been met with a clear plan for implementing the requirements of IFRS S1 and S2 over the next two years when they become mandatory in Brazil.

Goals and metrics

As a way of affirming its alignment with the main regulatory and transparency requirements and to guarantee the reduction of its environmental impacts, Suzano has made two long-term public commitments:

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

In 2024, the company acquired two plants from Pactiv Evergreen, with these operations effectively joining our activities in October 2024. Given this, the calculations of greenhouse gas emissions incorporated into our inventory were developed under:

•  Methodology according to GHG Protocol rules, including improvements and Suzano Packaging's emissions for the whole year, which resulted in changes to the base year figures (2015), the results for 2022 to 2024, and the update of the 2030 target KPI; 
• Separation between pre-existing operations and new Suzano Packaging operations.
  • The launch of the new GHG Protocol methodology for land use and removals is planned for 2025, which will improve the calculation methodology. 

Suzano applies the GHG Protocol methodology to calculate and present the GHG emissions of each subsidiary for the entire year reported, regardless of the time of financial incorporation. Regarding this approach, previously adopted by the company, we have revised the methods for calculating the GHG Inventory following the GHG Protocol and ISO 14064 methodology. These changes altered the results for scopes 1, 2, and 3 in the base year (2015) and in the years 2022 and 2023, as well as the result for 2024.

This revision was based on continuous improvement and methodological enhancements, such as updating the GWP indices for the IPCC's Fifth Assessment Report (AR5), improving emission factors for scope 1 sources, and expanding the accounting of scope 3 material and applicable categories from six to ten. Given the representativeness of the above changes, the base year (2015) was revised for scopes 1 and 2, and emissions from the relevant scope 3 categories were also incorporated in the years 2022, 2023, and 2024.

Thus, in 2024, the company achieved a balance of 2.3M tons of carbon removals, resulting in an accumulation of 29.4M tons of CO₂e removals since the baseline (2020), representing 73.4% of its target. This target only has one more year to go. In this sense, it is essential to consider:

• The effect of historical comparability must be guaranteed; 
• To avoid the need to change the baseline and the ambition value, it was decided not to incorporate the emissions from the acquisition of Suzano Packaging into the calculation, as was done in the emissions reduction target, and to keep the same scope 3 (partial) categories that were previously considered. In this sense, only non-significant methodological improvements (<1% impact on the target) were made to scope 1 emissions.

Regarding the emissions intensity target, in 2024, Suzano's intensity per ton of production was calculated in two ways:

• 0.2046 tCO₂e/t, down 2.9% on the previous year. This result considers the methodology according to GHG Protocol rules, including improvements and Suzano Packaging's emissions for the whole year, which resulted in changes to the base year figures (2015), the results for 2022 to 2024, and the update of the 2030 target KPI;
• 0.1803 tCO₂e/t, considering only Suzano's pre-existing operations, and 0.5965 tCO₂e/t, considering Suzano Packaging's operations in 2024.

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. Neither is associated with programs or regulations based on emissions reports and/or emission limits. 

Since joining the Science Based Targets initiative (SBTi) in 2021, Suzano has been working to establish a GHG emissions reduction target in line with the 1.5 °C scenario. This effort should include direct emissions and emissions from the value chain (scope 3). In 2023, the target proposals were submitted, and throughout 2024, we made progress in validating the targets in the initiative. It is worth mentioning that the current target (a 15% reduction in emissions intensity) is in line with science and the Paris Agreement, according to three methodologies: Transition Pathway Initiative (TPI), Baringa, and Truecost. 

Regarding the removal commitment, it is essential to reiterate that Suzano does not depend on other compensatory measures, such as purchasing carbon credits. On the contrary, Suzano can generate carbon credits through specific projects, as seen in the “Carbon market” indicator.

To learn more about the above commitments, visit the “Fighting the climate crisis” page.

Regarding metrics, the company's starting point for measuring the success of its actions and tracking the effectiveness of the measures taken is the Greenhouse Gas Inventory, a tool developed using internally established procedures and methodologies recognized and verified by third parties [including the method of Greenhouse Gas Protocol: A Corporate Accounting and Reporting Standard (GHG Protocol), revised edition, March 2004, published by the World Resources Institute and the World Business Council on Sustainable Development (WRI/WBCSD)], which annually accounts for Suzano's total emissions and removals.

Based on these results, the company maps and understands its main sources of emissions so that it can mitigate them and monitor and manage its Commitments to Renew Life (CPRVs). The Inventory is published annually and identifies the company's challenges and opportunities. To find out more about it, go to “Management of GHG emissions in forestry, industrial and logistics operations” and “Greenhouse gas (GHG) emissions and methodology”.

Considering the adjustments, which ensure comparability, in 2024, absolute scope 1 and 2 emissions increased slightly (5.7%), influenced by the increase in stationary emissions due to the start-up of the new Ribas do Rio Pardo (MS) unit and the increase in the electricity emission factor (national grid). In scope 3, the variation between 2023 and 2024 was minimal (0.3%), even with the start-up of the new Ribas do Rio Pardo unit and the consequent increase in the company's operations. For more information on scope 3 emissions, see the “Other indirect greenhouse gas emissions (scope 3) by category” indicator. 

After the incorporation of Suzano Packaging's assets in 2024 will be incorporated into the company's global decarbonization route, encouraging a progressive increase in efficiency to make the units less carbon-intensive in the coming years, in line with Suzano's global mitigation strategy.

Governance

Suzano has robust climate change governance, with the Board of Directors overseeing the sustainability strategy, supported by the Sustainability Committee, which defines and monitors the implementation of objectives and targets three times a year. Part of the directors' variable remuneration is linked to sustainability and climate targets. In 2024, four directors took on annual targets related to carbon credits and emissions reduction projects. Approximately 60 yearly targets were set by ten vice-presidencies, a 50% increase in 2023 covering emission reduction and carbon removal initiatives.

At the management level, Climate Change Management leads the issue internally, while other areas, such as Operational Excellence, adopt innovative projects such as autonomous vehicles and electric trucks. The area has an annual budget for proofs of concept and testing innovative solutions.

To align behavior and guide employees, Suzano launched its Corporate Climate Change Policy, validated by the executive directors of Sustainability, Corporate Relations, Risks, and Finance. The company also has a public position on zero deforestation and a Wood Supply Policy, clarifying that it does not suppress native forests for its production.

Strategy

To achieve its commitments and comply with its policy, the company has built its climate change strategy on a systemic and collaborative approach, connecting the local and global agenda and considering the leading frameworks, challenges, and scientific advances. Considering Suzano's multidisciplinary approach to the issue, its climate strategy aims to further integrate climate change into business governance and drive its strategic vision towards a just transition to a low-carbon economy, contributing to an increasingly resilient business model and value chain that catalyzes opportunities.

The strategy took into account the issue's complexity and multidisciplinarity and was built on the main recommendations of the TCFD, now incorporated into the IFRS initiative—as already mentioned—a widely recognized transparency and reporting guideline for climate change mitigation.

Suzano's climate change strategy is how the company manages this issue and its impacts, guaranteeing the fulfillment of its goals and objectives, and considers four areas of action described below.

1. Mitigation

Mitigation encompasses measures to prevent or mitigate the potential negative impacts of climate change, such as actions and strategies adopted to reduce the concentration or avoid the emission of GHGs into the atmosphere. In this sense, Suzano works on several fronts across the entire operation, seeking to mitigate the company's impacts, from modernization and efficiency projects to fuel substitution, alternative fleet replacement, or other types of technology and innovation. 

Suzano is constantly striving to reduce emissions and has been working on this through its Climate Transition Action Plan (CTAP). The plan aims to demonstrate measures to prevent or mitigate potential negative impacts in industrial, forestry, and logistics operations as well as in its value chain.

Among the advances made in constructing the Plan, in 2023, Suzano updated its Marginal Abatement Cost Curve (MACC). With the support of a specialized consultancy, internal workshops were held involving various departments, such as Engineering, Logistics, Energy, R&D, Supply Chain, and New Business, to gather valuable insights on decarbonization projects and opportunities.

In 2024, Suzano evolved even further by creating a systematized MACC updating process. A tool was developed that allows the different areas of the company (those already mentioned and others, such as Operational Excellence, Logistics, and Forestry) to register and manage projects with the potential to reduce emissions in an integrated and continuous manner. This tool makes it possible to include new projects or update data on existing projects more frequently and efficiently, ensuring that the curve reflects the most current and accurate conditions and promoting a shared vision between different areas, encouraging collaboration and identifying synergies between projects.

This way, we can measure the evolution of the status of registered projects and contribute to more assertive decision-making based on up-to-date data, helping to prioritize the execution of initiatives that maximize results in terms of cost-benefit and impact.

The projects included in the Curve have different maturity levels, from those that already have proven technical and financial viability to those still in the early stages of study. This evolution allows projects that reduce GHG emissions and help decarbonize Suzano's operations to have a more favorable financial impact and be prioritized in capital allocation.

Internal carbon pricing

In the financial area, Suzano understands that a possible regulated market could generate costs or opportunities, depending on the regulatory scenarios, and has therefore started incorporating an internal carbon pricing variable to measure and verify the impact of projects on emissions. Based on this analysis, financial indicators are generated with and without the shadow carbon price so that the effect on emissions can be considered in the approval processes for new investments, among the other financial criteria for prioritizing its Capex investments in modernization and expansion.

The internal carbon price is incorporated into the project's net present value (NPV), with a feasibility scenario and an initial shadow price of 10 dollars per ton. As a result, projects that reduce GHG emissions and help decarbonize our operations will have better financial results and be a differentiating factor when making capital allocation decisions. 

Other projects in different areas with the potential to reduce greenhouse gas emissions were carried out throughout 2024, demonstrating the company's transversal and multidisciplinary approach to this issue. They are listed below.

Biomass gasification in Ribas do Rio Pardo

The recently opened plant in Ribas do Rio Pardo is almost entirely powered by clean energy produced from by-products of the pulp manufacturing process, generating a surplus of clean energy back into the national electricity grid. It is also the Suzano group's first industrial unit to operate with biomass gasification, representing a 97% reduction in emissions from the lime kilns compared to a factory using fossil fuels.

Fossil fuel substitution in Três Lagoas

An industrial test evaluated the burning of vegetable biofuel (from soybean bagasse) and shale oil in the power and recovery boilers at the Três Lagoas (MS) plant. The expected results are a significant reduction in operating costs by replacing BPF oil with cheaper oils, a reduction in expenses due to savings in using diesel oil for cleaning lines, and financial gains related to improved efficiency in steam generation. Regarding GHG emissions, using vegetable oil represents an expected reduction of 97%.

Shipping Logistics

Decarbonizing logistics is essential to achieving targets and complying with regulations such as the EU ETS, which requires companies to buy emission permits for every tonne of CO₂ emitted. Since 2024, the system has included maritime emissions, forcing European cargo transportation companies to purchase carbon credits. Suzano's Shipping Logistics area has estimated the costs 2024 and is looking for alternatives to reduce and optimize journeys, mitigating CO₂ emissions. The aim is to anticipate the impact of scope 3 emissions and engage shipowners to reduce emissions and manage financial impacts.

In the maritime transport sector, emission reduction commitments are established by the Paris Agreement and reinforced by the International Maritime Organization (IMO), with targets for 2023 and 2040 and zero emissions by 2050. The IMO has not yet presented a plan, but the Shipping Strategy team monitors regulations and participates in global forums.

In 2024, Suzano's Shipping area made significant progress, testing biofuel with Pan Ocean, reducing emissions by approximately 10%. We also led discussions on energy transition and new regulations at the Brazilian Tree Industry (Ibá), in partnership with the Brazilian Navy, and ran the UN Global Compact Framework for Action for the decarbonization of Brazil's maritime and port sector.

Paper and Packaging Business Unit Logistics

In 2024, the Logistics area of Suzano's Paper and Packaging Business Unit (UNPE) focused on reducing GHG emissions and operational efficiency through various sustainable initiatives. The main actions involved using green energy in 100% of the distribution centers (DCs), implementing water reuse and waste management to reduce environmental impacts, and expanding reverse logistics. In transport, there was route optimization, with the adoption of rail to reduce CO₂ emissions by up to 60% on the factory-port route and the expansion of alternative fuels, including electric and natural gas vehicles (NGV). 

Pulp logistics

In 2024, Suzano began testing electric trucks to assess their technical and financial viability in pulp transportation. In partnership with Vix Logística, a pioneering truck was developed for pulp transshipment in Aracruz (ES), seeking to validate its operation for future scalability. Additionally, the company was chosen by Mercedes-Benz to test the brand's first electric truck in Brazil, which will start operating at the Arujá (SP) DC in 2025, transporting fluff pulp.

Digital

In 2024, Suzano implemented two energy optimization projects at its Aracruz and Jacareí (SP) units. Thor Methanol improved the use of renewable methanol in the lime kilns, avoiding burning more than 1.5 million cubic meters of natural gas. Thor Dessuper optimized the balance between electricity generation and consumption of auxiliary fuels, saving 2,000 tons of fuel oil and 15.7 million cubic meters of natural gas.

Forest logistic suppressions

Suzano supplies diesel for the transportation of wood, and a diesel consumption rule is defined per contract. The Green Route project, which began and ended in 2024, identifies opportunities to optimize this rule, enabling lower diesel consumption and, consequently, lower CO₂e emissions. The results were a reduction of 1.2 million liters of diesel, equivalent to a decrease of 2,800 tons of CO₂, and an annualized saving of 6.4 million BRL.

Value chain

In 2024, Suzano intensified the decarbonization of its value chain. As part of this commitment, the Responsible Supplier Management Program's second phase was launched, focusing on decarbonization and the strategic engagement of the supply chain.

Suzano's activities have taken place on two main fronts:

• Internal:  training buyers to integrate sustainability criteria into procurement processes, as well as actively looking for low-carbon technologies and solutions;
• External:  monitoring and engaging suppliers in measuring and reducing emissions, encouraging sustainable practices throughout the chain.

Furthermore, the Our Footprint initiative was strengthened, bringing together focal points from the Procurement Department to map sustainability projects and promote joint efforts with other company areas. These actions reinforce Suzano's commitment to a more sustainable supply chain in line with the goal of net removal of 40 million tons of CO₂ by 2025, which includes indirect scope 3 emissions.

Another initiative to strengthen our relationship with our suppliers and encourage the adoption of joint commitments to reduce emissions is the partnership with CDP through the Climate Change in the Value Chain Program. This collaboration aims to engage and assist our suppliers in measuring, transparently sharing data, defining targets, and assessing risks and opportunities related to climate change.

In this cycle, 161 suppliers (80%) from critical categories participated voluntarily, a higher level of engagement than the 40% average of the other companies in the Program. This result continues the progress of 2023, when 152 suppliers (76%) joined, exceeding the average of 61%. In addition, Suzano intensified bilateral talks to deepen its knowledge of supplier initiatives and encourage improvements in transparency and emissions management.

In 2024, we started the pilot of our supplier engagement program with three projects in preparation for the official launch in 2025, which will include 100 prioritized suppliers. We hold quarterly meetings to better understand their climate initiatives, classifying them as beginners, intermediate, and mature. This classification helped us develop customized action plans.

The active participation of suppliers was crucial, enabling the comprehensive collection of greenhouse gas emissions data and achieving 100% of internal targets. Some suppliers hired consultants to set emission reduction targets and presented decarbonization projects. We implemented our engagement program to achieve greater autonomy and proximity to suppliers.

We identified decarbonization projects in scopes 1, 2, and 3 and assessed their scalability and impact with the support of a consultancy. Some projects are already being implemented, while others are under study. In 2025, we will continue this process with the MACC tool to improve project identification and prioritization.

Fostering a close relationship with our clients is also extremely important to us. We firmly believe that our products go beyond simple commodities due to the sustainability incorporated into Suzano's production process, which guarantees distinctive attributes that make our products stand out in the market.

The company's pulp currently has one of the lowest emission intensities in the industry. Therefore, it is 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.

Therefore, because we are concerned about customer satisfaction with the sustainability attributes of Suzano products, we carry out recurring satisfaction surveys and moments of connection with them to ensure that their demands regarding socio-environmental issues are met. Through this relationship, the commercial teams of Suzano's different business units, Marketing, Pulp, and the Climate Change technical area, look for opportunities for partnerships and projects that promote continuous improvements in our production process to reduce emissions.

Moreover, Suzano carries out life cycle analyses in its business units, which constantly seek to reduce the impact generated at each stage of the product process. They are also of interest to the company's customers, who seek to manage their products' impact. The highlights of 2024 are in the “Life cycle assessments” indicator. 

2. Adaptation

While mitigation aims to reduce GHG emissions, adaptation focuses on adjusting practices for new climate conditions. At Suzano, strategies are implemented to cope with climate impacts through climate intelligence and forest resilience. The Research and Development (R&D) and Sustainability areas monitor the climate strategically, using data from 73 private and 95 public weather stations to assess forest productivity and plan actions.

Suzano uses IPCC climate scenarios and downscaling techniques to analyze physical risks, considering 4 global scenarios and 22 climate models. The company has assessed its climate vulnerability throughout the value chain and adopted a preventative approach. The analysis indicated that areas in Bahia, Espírito Santo, and Maranhão have the most significant potential for impact. To map the effects on future productivity, Suzano developed a biophysical model and used data from El Niño and La Niña events over the last 102 years.

The company also created the Tetrys platform to optimize the allocation of genetic materials, taking into account environmental and climatic variability. About water, we take regular measurements and adopt forest management technologies to make efficient use of water resources. Sample points have been installed to monitor the relationship between plantation areas and water resource conditions.

The analysis of climate scenarios is essential for Suzano's resilience strategy, which builds action plans for losses of biological assets, reduced productivity, interruptions in the production chain, and scarcity of water resources. The company has contingency plans to deal with water crises in critical regions.

3. Transition

The just and equitable transition to a low-carbon economy refers to a significant change in production, consumption, and investment patterns aimed at creating a more sustainable economy, with more resilient communities, workers, and workers less dependent on fossil fuels and a lower carbon footprint. For this reason, companies wishing to thrive under 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.

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 and generating credits from its operations. To find out more, see the “Carbon market” indicator.

Corporate venture capital – Suzano Ventures

As part of its strategy to valorize biomass and promote renewable solutions, Suzano has an investment fund, Suzano Ventures, which made four new investments in 2024. Two of them are focused on developing sustainable packaging, including the Canadian startups Nfinite Nanotech and Bioform.

Nfinite Nanotech stands out for its innovative translucent barrier technology, which preserves paper's recyclability and compostability while improving its properties. This technology expands the possibilities for using paper as a packaging material in a wide range of products.

Bioform, meanwhile, offers a biodegradable film solution composed of a cellulose fiber-reinforced hydrogel that can be molded into different shapes. This solution represents a viable alternative to replacing single-use plastics in various applications.

In addition to international investments, Suzano Ventures has made its first investments in Brazilian startups. Entropic Solutions, located in Santo André (SP), is developing a lignin treatment process to increase its versatility. This will enable it to be used in polyurethane foams and elastomers, replacing fossil-based raw materials.

BemAgro, from Ribeirão Preto (SP), uses artificial intelligence and computer vision to process data and images from drones, tractors, and satellites. Using geoprocessing algorithms, the startup offers precise recommendations to optimize agricultural operations, reducing costs and increasing input efficiency. This represents a relevant strategic potential for our forestry operations.

These investments reinforce Suzano Ventures' commitment to boosting sustainable technologies, promoting innovation, and contributing to building a more efficient future with lower carbon emissions.

Bio-business strategy

The company's bio-business strategy is fully aligned with global trends and demands for renewable solutions for a low-carbon economy, with a greater focus on two areas:

• Bioenergetics;
• Biochemists.

These areas represent opportunities for Suzano in the transition to a more sustainable and circular economy. As an efficient and responsible producer of bio-based raw materials from renewable resources, the company's products offer a viable alternative to fossil fuels and materials produced from petrochemicals, such as plastics and synthetic textile fibers. 

In our ambition to expand boldly into new segments (time horizon of five to ten years), we continue to engage in initiatives to replace fossil sources. In 2024, we strengthened our position in the development of sustainable solutions from wood for the textile market with the acquisition of 15% of Lenzing, a global leader in the development of innovative solutions. We also continued our partnership with the Finnish startup Spinnova to develop a new sustainable textile fiber.

Furthermore, we continue to expand into new markets and applications for lignin in the biochemical segment. We have established important partnerships in the bioenergy sector, including a collaboration agreement with Mitsui & Co for biofuels, a collaboration with Eletrobras for the development of e-methanol and our participation in the OpenSAF group, together with Vibra and Galp, to assess the feasibility of producing aviation fuels from planted eucalyptus.

Energy transition

Suzano and Eletrobras have partnered to develop sustainable solutions, focusing on producing green hydrogen and synthetic fuels such as e-methanol. This agreement aims to use the biogenic CO₂ generated at Suzano's production units, combining it with renewable hydrogen produced by Eletrobras. The collaboration includes joint studies to assess the technical and economic viability of a synthetic fuel production unit.

The partnership brings the following benefits for the transition to a low-carbon economy:

• Reducing emissions: the production of green hydrogen and e-methanol will help replace fossil fuels, significantly reducing CO₂ emissions;
• Decarbonization of sectors: e-methanol is a promising alternative for decarbonizing sectors such as maritime transport and logistics, which are highly emitting and dependent on fossil fuels;
• Innovation and sustainability: the partnership reinforces the companies' commitment to innovation and sustainable development, promoting the use of renewable raw materials;
• Global competitiveness: the initiative positions Brazil as a leader in the global bioeconomy, attracting investment and strengthening the green economy.

We also reuse biomass and wood waste from the production process to generate a significant portion of our energy needs. Approximately 88.16% of our entire operation and energy matrix (which involves forestry, industry, logistics, etc.) comes from renewable fuels (such as black liquor and biomass), and the remaining 11.84% from non-renewable resources (such as natural gas and fuel oil).

In terms of electricity, we are self-sufficient at the Aracruz (ES), Imperatriz (MA), Mucuri (BA), Ribas do Rio Pardo (MS) and Três Lagoas (MS) units, where surplus generation is sent to the grid. In 2024, from these units, 1,521,199 MWh (1,521 GWh) of renewable electricity was supplied to the public grid. This marketed surplus energy can be the subject of international renewable energy certification, the so-called I-REC (Renewable Energy Certificate). In 2024, sales of I-RECs totaled 337,915 BRL.

Just Transition

Through structured projects, we strengthen local communities by investing in education, income generation, and job opportunities, helping to reduce poverty and improve quality of life. Initiatives such as maintaining family farming, encouraging sustainable extraction, and supporting the circular economy combine economic development with social inclusion and environmental preservation.

These actions not only boost communities' resilience to climate change but also reinforce the company's commitment to human rights and sustainable development. For more information, see the indicators “Suzano social programs” and “Human rights management”.

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 toward a low-carbon economy through integrated initiatives with other areas to engage with this issue inside and outside the company.

Thus, Suzano acts 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 being 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 has 43% of its debt linked to sustainable financial instruments. It has Green Bonds linked to projects contributing to the company's decarbonization process and Sustainability Linked Loans (SLL) and Sustainability Linked Bonds (SLB).
  
  A significant part of our total debt volume is linked to our CPRV of a 15% reduction in the intensity of scope 1 and 2 emissions. The remainder is related to Suzano's other sustainability commitments, such as water capture and the presence of women in leadership. The company participates in the main ESG ratings on the market.
  
  In 2024, Suzano continued to stand out in the EcoVadis Sustainability Rating by evolving its performance and maintaining its position in the select group of 1% of the best-rated companies, considered Leader in Carbon Management Level, for its strong GHG management system and the best decarbonization commitments, actions, and reporting capabilities. The assessment considered the corporate sustainability of 100,000 companies from more than 175 countries. For the main highlights and updates for 2024, visit the “Sustainable finance“ page.
   
• Employee engagement: at Suzano, we believe in the importance of employee engagement in the issue of climate change as a pillar for progress on the climate agenda, such as in the company's emissions reduction initiatives.
  
  Thus, the choice of areas for engagement considers identifying those linked to the categories with the highest GHG emissions, such as Engineering, Energy (industrial processes), Forestry Operational Excellence, Logistics, R&D, Supply Chain, and New Business. The engagement with the other areas focuses on decarbonization, identification, mapping projects, optimization, analysis of climate change and product life cycle data, and calculation of indicators.
  
  Information on the training given throughout 2024 can be found in the  “Training and learning management” indicator.
   
• Engagement and influence: This agenda is carried out at Suzano across different areas, mainly through events and forums, promoting relationships and partnerships, advocacy, and engagement 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 2024:
  • Promoting relationships and partnerships: Suzano has entered into two important partnerships to neutralize the carbon emissions of its products: 
    • TP White Carbon Neutral: TP White Plus and TP White Pharma Plus papers, already recognized for their stiffness, versatility, purity, resistance, and high whiteness, are now available in carbon-neutral versions. This significant evolution was developed to reduce climate impact and extend the sustainability benefits promoted by Suzano throughout the packaging chain.
      
      By opting for the carbon-neutral version, we are offsetting the emissions generated in the paperboard production process, maintaining the excellence and durability of our products, and actively contributing to reducing environmental impact. Offsetting is done through individual carbon credit retirement certificates issued on the Verra platform, which operates the Verified Carbon Standard (VCS).
      
      The credits come from reforestation projects in the Três Lagoas (MS) region based on the ACM0003 methodology. The project combines the planting of fast-growing species, such as eucalyptus, with native species in areas intended for conservation and environmental restoration. It was independently audited and registered on the Verra platform by VCS standards. To learn more about the company's carbon credit generation projects, visit the “Carbon market” indicator.
       
    • In 2023, Suzano, the printing company Box Print, and the pharmaceutical company Merck neutralized 102 tons of CO₂ generated while manufacturing 6 million boxes of medicines. In 2024, we are continuing the initiative by increasing Suzano's volume of credits to 240, which have already been retired on the Verra platform. The increase is because:
      • Largest volume of cartridges sold and distributed by Merck during 2024 (more than 8.5M cartridges);
      • We add extra credits to ensure that emissions are offset up to the point of sale. The initiative aims to give the market visibility into the concern and constant efforts that Merck, Suzano, and Box Print dedicate to supporting the offsetting of CO₂ emissions from packaging through credits that come from reforestation projects and that contribute to the mitigation of climate change, also promoting the conservation of biodiversity.
         
• Participation in events and forums: To influence and monitor trends in the national and international climate agenda and promote mitigation and adaptation agendas, Suzano has maintained active participation in the leading global forums on this issue. In 2024, the company was present at four major international climate-related events: New York Climate Week, COP16 on Biodiversity, COP29 on Climate Change, and COP16 on Desertification.
  
  In addition to its presence, Suzano expanded its activities through more than 35 speaking slots, actively contributing to strategic discussions, such as the regulation of Article 6.4 of the carbon market at the Climate COP and the release of the "Suzano Letter" at the Desertification COP. The document highlights the importance of nature-based solutions to combat desertification and droughts through urgent investments in reforestation and sustainable management of water and soil resources.

The company also organized a side event at COP16 on Biodiversity, bringing together more than 100 global leaders to debate solutions for the preservation and regeneration of ecosystems. Strengthening relationships with stakeholders was another key point, with an active network involving more than 200 international organizations, including representatives of civil society, companies, and other key players.
 

• Advocacy: Suzano undertakes to orient all its engagement and influence activities in a manner consistent with the objectives of the Paris Agreement, with the central commitment to seek 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 advocates advancing national and international carbon regulations based on global best practices, contributing to the construction of a robust and transparent market. To this end, it engages with policymakers, promoting discussions on carbon pricing mechanisms and the transition to a low-carbon economy.

Suzano regularly reviews the positions of its sector associations about climate policies and their alignment with the Paris Agreement. If it identifies misalignments, the company acts to promote internal changes in the associations or reconsiders its participation. In the last period, the company addressed this issue with the following associations:

• Brazilian Tree Industry (Ibá), in which Suzano participates in the Board of Directors and other committees.;
• Brazilian Business Council for Sustainable Development (CEBDS), in which the company actively participates in Technical Chambers (TCs);
• Brazilian BioInnovation Association (ABBI), of which the company is a member and participates in working groups;
• Climate Connection, in which the executive manager of Carbon participates in the leadership group; 
• Brazil Climate, Forest and Agriculture Coalition, of which Suzano's CEO is a member;
• GHG Protocol Land Use Pilot Test Working Group, in which the Climate Change manager is a member of the Advisory Committee.  
• WBCSD, in which the company participates in various working groups, including the Forest Solution Group. 

Suzano at COP29

Given Suzano's size and the importance of the climate for society and the company's prosperity, it must participate in the global movement to combat climate change. Suzano believes in its potential as a promoter of innovative solutions and engages in different sectors for a low-carbon economy, participating in associations and initiatives related to the Paris Agreement and the regulated carbon market.

Company executives participated in COP29, held from November 11 to 22, 2024, in Baku, Azerbaijan. The participation reflects the leading role of companies from the Global South in building integrated and inclusive climate solutions:

• Monitoring negotiations and the official agenda: Suzano has followed the UNFCCC negotiations and the goals of the Paris Agreement, focusing on the connection between biodiversity, forests and climate. The company is also engaged in the review of Brazil's Nationally Determined Contribution (NDC), aligning local actions with global strategies. This monitoring is carried out in association with organizations such as CEBDS, WBCSD, ICC and Ibá;
• Promoting dialog and sharing experiences: Suzano interacted with stakeholders in strategic panels, highlighting practical and innovative examples of the forestry sector in mitigating climate change and promoting biodiversity. It participated in discussions promoted by partners such as the Forest Stewardship Council (FSC), The Forest Pavilion, ISO, We Don't Have Time, CNI, We Mean Business, ICC and NDRC, sharing learnings and reinforcing its commitment to global climate solutions.

Highlights:

1. Regulation of Article 6 of the Paris Agreement: advances in articles 6.2 and 6.4 regulations have consolidated global carbon markets. Brazil has regulated its national carbon market, the SBCE, which Suzano supports and is prepared to comply with;
2. Increasing ambition in the NDCs: Brazil's NDC update reflects its commitment to the Paris Agreement and the integration of public policies and private sector actions. Suzano aligns its operations and sustainability strategies with the national climate objectives;
3. Climate finance: strengthening climate finance to ensure that countries in the Global South have access to resources for mitigation and adaptation actions. Suzano believes that expanding financing mechanisms is essential for innovative and scalable projects in the forestry sector.

The company remains attentive and engaged in these discussions, reaffirming its commitment to a low-carbon economy and contributing to global climate goals.
 

Road to COP30

Suzano's commitment allows it to identify opportunities and outline strategies for COP30. The COP agenda is an annual commitment developed in conjunction with associations of which the company is a member, which aligns with the company's engagement strategy.

Risk and opportunity management

Suzano has a structure dedicated to corporate risk management, including climate risks, which are considered a priority. Using its methodologies, tools, and processes, the company identifies, assesses, and treats its main risks, continuously monitoring their impacts and implementing mitigating measures.

To support risk management, Suzano has Regional Risk and Business Continuity Committees (RCNs) at all industrial units. These committees are made up of multidisciplinary strategic members who meet every two months and are responsible for mapping, analyzing, treating, and monitoring local risks.

The risk management structure also includes technical risk forums, heads of technical areas, risk meetings, and multidisciplinary groups that work in the international offices. The technical forums meet at least once a year, while the risk meetings are held every two months.

Climate risks are incorporated into the Enterprise Risk Management (ERM) process and presented quarterly to the Executive Board and the Statutory Audit Committee (CAE), and annually to the Board of Directors (CA), where mitigation strategies are discussed.

For more details on Suzano's governance of risks and opportunities, see the “Risk management“ indicator.

Finally, in 2024, Suzano started a new model for quantifying climate risks financially. We seek to calculate the financial impact of the materialization of the main risks to which our assets and operations are exposed. As a first step, we carried out a pilot project that covered the entire operation in the Northern Region of Brazil and several of Suzano's corporate areas, providing important lessons.

These results will be used to scale up and expand this new methodology to Suzano's other assets, providing the company internally, at this first moment, with relevant information to increase resilience and adaptive capacity in the face of different climate scenarios and feedback into business strategies. The project will prepare the company to meet emerging regulations in the coming years.

• Physical risks: as mentioned in the adaptation section, Suzano uses climate scenarios from IPCC models to analyze the physical dangers that impact its forestry and strategic operations. The company maps these risks considering four global warming scenarios and four future periods based on 22 global climate models. The analysis indicated that areas in Bahia, Espírito Santo, and Maranhão have the most significant potential for impact.
  
  Suzano regularly measures the qualitative and quantitative parameters of the main river basins and adopts forest management technologies to efficiently use water resources. The company has also developed a biophysical model to estimate forest productivity and uses modeling tools to predict the impact of climatic events. Climate indicators are used to calibrate harvesting and planting planning models to mitigate possible productivity losses and optimize forest productivity.
   
•  Transition risks: Suzano adopts a proactive approach to identifying, assessing, and mitigating climate transition risks, ensuring alignment with global standards and seizing market opportunities while strengthening its operational resilience and competitiveness. These risks include regulatory, legal, technological, market and reputational aspects, which the company seeks to mitigate through innovation and alignment with global trends, as described below:
   

Opportunities 

As mentioned in the section on transition, Suzano promotes bioeconomy solutions and the transition to a low-carbon economy. Due to the large volume of CO₂ removed by eucalyptus and native forests, the company sees strategic opportunities in new businesses related to climate change mitigation, including revenue diversification and innovation in sustainable businesses.

Suzano's forestry base represents a potential supply of carbon credits for companies wishing to offset their emissions. We operate in the voluntary carbon market and support its regulation in Brazil and globally, collaborating with entities such as Ibá, CEBDS, and CNI.

Furthermore, Suzano Ventures invests in startups that develop sustainable packaging and other innovative solutions. The company also uses biomass and wood waste to generate energy, is self-sufficient in several units, and supplies surpluses to the public grid. Suzano continues to expand its offer of low-carbon products, replacing fossil materials and contributing to the decarbonization of value chains.