Efforts to minimize the risks of water scarcity in river basins, exacerbated by climate change, are urgently needed. Suzano's eucalyptus plantations, native forests and factories are directly dependent on water. To this end, it is necessary to understand, systematize, improve and expand the management of water use in rural areas, in industry and close to operations. 

We understand that the following are risks arising from water management at Suzano: water unavailability at the forestry management units and factories; shortages of wood from our own plantations and those of our partners; the occurrence of social conflicts over the overlapping use of water; and penalization by the certification mechanisms applicable to the company's activities. 

Rainfall is the main source of water for Suzano's forestry production. Rainfall events are seasonal, i.e. they tend to decrease in certain months of the year, causing natural periods of drought depending on the local climate regime. These periods of water shortage - between June and September in most of the company's areas - can be exacerbated by the occurrence of cyclical weather phenomena (such as El Niño and La Niña) or by climate change itself. During these periods, social conflicts tend to increase, for example due to overlapping water use. 

To assess the effects of climate on forest productivity and water resources, Suzano has a network of 73 of its own meteorological stations and uses 95 public stations in its analyses, as well as 6 flow towers equipped with instruments that measure the water and carbon balance at a very high monitoring frequency. 

To understand forest management in water resources, the company has 14 experimental micro-watersheds equipped with sensors to improve understanding of the relationships and effects of forest management in locations that are representative of its production model, in all of its forestry units.

In addition, Suzano has made the Commitment to Renew Life (CPRV in Portuguese acronym) to increase water availability in 100% of critical river basins¹ by 2030. In this context, the company aims to anticipate and apply local mitigating and/or transformative measures to prevent water shortages and consolidate its position as a leader in innovation (innovation for sustainability) in forest management. Once the comprehensive hydrological modeling study had been carried out on 100% of the watersheds covering its lands, the company prioritized restoration initiatives in the areas identified as critical, according to the water supply-demand ratio, the level of occupation of Suzano's lands, and the vulnerability of local communities. The expected results of these actions include: increased water availability in critical watersheds, reduction of social conflicts, and mitigation of forest production losses.

The CPRV also aims to reduce by 15% the water withdrawn from industrial operations by 2030. This commitment is in addition to the way Suzano's industrial units operate, which already follow the standards established by the Integrated Pollution Prevention and Control (IPPC) and the International Finance Corporation (IFC). The goal, in this instance, is to improve the performance of our operations even further and generate a significant reduction in the water withdrawn for industrial processes.

In 2023, Suzano's R&D, Industry and Communication teams conducted an extensive project on Suzano Ambassadors, focusing on "Water in the Forest", with presentations reaching more than 500 employees. We also received recognition from the Brazilian Pulp and Paper Technical Association (ABTCP) for the InovaAgua project, which presented water management in the forest, focusing on the micro-watershed network and the Water in the Forest CPRV.

It is worth mentioning that in 2023 we expanded our meteorological network in the regions where we operate, as well as our water monitoring network with the implementation of experimental micro-watersheds. 

Note:

1. Critical watersheds are those subject to a lack of water availability due to natural conditions (such as climate and soil type) and land use patterns.