contexto

Suzano's supply chain is diverse and consists of suppliers segmented into macrocategories: operations, services, logistics, marketing and sales, and even support activities, such as infrastructure and technological development. In 2023, we had approximately 14,700 suppliers, of which 32,100 were in our database. We spent approximately BRL 42.5 billion paying suppliers. 

We at Suzano take a close management approach to our supply chain, with a team dedicated to monitoring and developing our partners. The approval and registration process covers 100% of our suppliers, including mandatory documentation according to the contracting segment. We include sustainability requirements in this process, evaluating mechanisms and strategies related to social management and performance, corporate governance, quality management systems, integrity, due diligence and the environment. 

The purchasing process achieved a Net Promoter Score (NPS) of 78 in a supplier satisfaction survey performed by a specialized global consulting firm.
 

Centralized suppliers

In 2023, 72% of suppliers were approved based on environmental criteria and 100% on social criteria. For further information, find more information on the indicator “Total number and percentage of new suppliers selected based on environmental and social criteria”. 

Our automation and data analysis have evolved to improve risk prediction processes, ensure efficient audits in the supply chain and support decision-making for more responsible purchases. In this regard, we have signed and maintained important partnerships to support us on this transformation journey, one of which is with the Linkana platform.

The Supplier Performance Index (SPI) program, which evaluates critical suppliers, was reformulated and new questions were incorporated into the method, mainly regarding environmental, social and safety requirements, with an average approval rating of 96%. For those suppliers that fall below the desired index, we have defined action plans, with the possibility of blocking, suspending or disqualifying them in case of non-compliance. 

We continued the process of external second-party auditing of high-risk suppliers from a socio-environmental perspective, which began in 2022. The process considered suppliers that had been prioritized for the first cycle of the initiative. More than half (60%) of the audited suppliers were also monitored using the Reprisk platform.

For this indicator, we consider critical suppliers to be those that supply items with potential to generate major impacts on the capacity or quality of products, process performance, safety of equipment and employees, the health of our staff and the integrity of equipment, as well as suppliers with a high risk to sustainability, audited by a second party in 2023.

We consider suppliers with a high risk to sustainability to be those with a high level of severity and probability of socio-environmental impact and a high level of co-responsibility on Suzano's part. To learn more, access our Sustainable Purchasing Policy.

In 2023, the "Lifting people out of poverty" training was also offered to buyers, in line with Suzano's Commitments to Renew Life and with the purpose of engaging them in social initiatives with suppliers. The training was attended by 167 people, around 35% of the Procurement teams.


Wood suppliers

The supply of wood, assessed from an environmental, social and economic perspective, is defined as critical and of high sustainability risk in the Social and Environmental Risk Matrix (Sustainable Purchasing Policy). As a further risk assessment methodology, we use internationally recognized certification standards and regulations, such as the FSC® standards, the National Risk Analysis for Brazil, the European Timber Regulation (EUTR) and the United Kingdom Timber Regulation (UKTR), which are covered in the Wood Supply Policy.

The monitoring processes and risk mitigation are detailed in the indicator "Total number and percentage of suppliers that have undergone environmental and social assessment".

Committed to sustainable practices in the supply chain, Suzano encourages its wood suppliers to seek FSC® and/or PEFC Forest Management certification. To ensure responsible sourcing of wood from partners who do not participate in the forest management certification program, we apply a due diligence system based on the company's Wood Procurement Policy, international regulations and FSC® and PEFC Controlled Wood/Sources standards. Due diligence verifies compliance with environmental, social, legal and labor requirements in first and second party audits, as well as third party audits performed by independent entities. This involves both direct wood suppliers and indirect suppliers involved in harvesting and transportation.

The tables below provide the following information:

  • Total number of critical suppliers;
  • Percentage of critical suppliers;
  • Supplier selection.

Total number of critical suppliers¹

2020202120222023
número total número total número total número total

Total number of critical centralized suppliers

458

410

696

719

Total number of critical suppliers [wood suppliers]

n/d

853

1.218

981

Total number of critical centralized suppliers (tier 1 and non-tier 1) assessed

n/d

375

696

719

Total number of critical suppliers (tier 1 and non-tier 1) assessed [wood suppliers]

n/d

853

1.218

981

Total numbers of centralized suppliers with a high sustainability risk assessed

n/d

702

533

521

Total number of suppliers with a high sustainability risk assessed [wood suppliers]

n/d

853

1.218

981

  1. Centralized suppliers: For this indicator, we consider critical suppliers to be those that supply items with the potential to generate major impacts on the capacity or quality of products, process performance, the safety of equipment and employees, the health of our staff and the integrity of equipment, assessed annually in the Supplier Performance Index (SPI), and also those suppliers with a high risk for sustainability, audited by a second party in 2023. We consider suppliers with a high risk to sustainability to be all those who underwent a second-party audit in 2023 and those who had environmental and/or social issues assessed in the Supplier Performance Assessment process.
    Wood suppliers: 981 critical suppliers were considered [number of farms and service providers for harvesting and transporting wood] - 317 wood supply areas (tier 1), where harvesting and transportation services were contracted by the farm owners themselves [non-tier 1 suppliers], totaling 634 (317 tier 1 + 317 non-tier 1); 65 wood supply areas (tier 1), where harvesting and transportation services were contracted directly by Suzano (tier 1), totaling 130 (65 tier 1 + 65 tier 1); 196 wood supply areas, where harvesting and transportation were carried out by Suzano's own operation, totaling 196 (tier 1); 21 wood supply areas, which correspond to suppliers certified by forest management, totaling 21 (tier 1).

Percentage of critical suppliers

2020202120222023
% % % %

Percentage of centralized critical suppliers [out of total suppliers]

4,00%

3,00%

5,00%

5,00%

Percentage of critical centralized suppliers (out of total suppliers)

100,00%

100,00%

100,00%

100,00%

Percentage out of total purchases spent with critical centralized suppliers

41,00%

37,00%

37,00%

37,00%

Percentage out of total purchases spent with critical suppliers - wood suppliers¹

100,00%

100,00%

100,00%

100,00%

  1. At Suzano, according to the Supplier Evaluation Matrix, every wood supplier is considered critical. Therefore, all spending on wood suppliers is considered spending on critical suppliers.

Supplier selection¹

20222023
Total number of tier 1 suppliersTotal number of significant suppliers (tier 1 and non-tier 1)Total number of significant suppliers in tier 1Total number of significant suppliers in non-tier 1% of total spend with significant tier 1 suppliersTotal number of tier 1 suppliersTotal number of significant suppliers (tier 1 and non-tier 1)Total number of significant suppliers in tier 1Total number of significant suppliers in non-tier 1% of total spend with significant tier 1 suppliers
número total número total número total número total % número total número total número total número total %

Wood suppliers

878

1.218

878

340

100,00%

664

981

664

317

100,00%

Centralized suppliers

12.722

696

696

0

37,00%

14.008

719

719

0

37,00%

Total

13.600

1.914

1.574

340

38,91%

14.672

1.700

1.383

317

40,00%

  1. The total of tier 1 and non-tier 1 wood suppliers considers: number of contracted farms (tier 1) + service providers for harvesting and transporting wood that can be tier 1 [contracted by Suzano] and non-tier 1 [contracted by the farm owner]:
    • Total tier 1: 664 = 599 farms + 65 harvesting and transportation service providers contracted directly by Suzano;
    • Total non-tier 1: 317 = 317 harvesting and transportation service providers hired by the farm owner.

Informações complementares

Centralized suppliers

Due to Suzano's multiple businesses, we have implemented the Social and Environmental Risk Matrix, which allows us to set consistent monitoring criteria according to the company's Commitments to Renew Life, ensuring risk mitigation from registration all the way through monitoring and performance evaluation in line with the Sustainable Purchasing Policy and the Supplier Code of Conduct. In 2023, we made progress in identifying the risks of suppliers beyond tier 1, monitoring the documents of sub-suppliers contracted by fixed-service providers, while implementing management measures in 2024. 


Wood suppliers

All wood sources supplied to Suzano, including tier-1 and non-tier-1 suppliers, are monitored based on environmental, social, economic and legal requirements. For this purpose, we have adopted the Wood Supply Policy and the Deforestation Policy, which are developed in compliance with the Brazilian Forest Code, the FSC® Association Policy criteria, the FSC® and PEFC Forest Management and Chain of Custody standards, FSC® Controlled Wood, PEFC Controlled Sources, the European Timber Regulation (EUTR), the United Kingdom Timber Regulation (UKTR), the Lacey Act (United States), the Australian Illegal Logging Prohibition Act and the Fundamental Principles of the International Labor Organization (ILO).