Report
2020
O u r p u r p o s e : r e n e w i n g l i f e i n s p i r e d b y t r e e s .
Moving Forward
Together
#proudtobesuzano
SUMMARY
1. Messages ...................................................................................4
2. About this report ................................................................8
3. Suzano and shared value ........................................... 10
4. Value generation model ................................................. 14
5. Long-Term Goals ................................................................. 16
6. Employee relations ............................................................ 26
7. Customer relations. ........................................................... 42
8. Supplier relations ............................................................... 58
9. Investor relations ................................................................ 64
10. Relationship with government and
organized civil society .................................................... 72
11. Community relations ................................................... 78
12. Relationship with the planet .............................. 86
13. External reader ....................................................... 102
14. Letter from the auditor ................................106
15. GRI and SASB content index .................... 110
1
MESSAGES
Message from the Chairman
of the Board of Directors
We plant
THE FUTUREGRI 102-14
Photo: Suzano Image Bank
AS MY FATHER, MAX FEFFER, WOULD
SAY: THE KIND OF LIFE WE WANT
DEPENDS ON WHAT WE DO.
4 Suzano Report 2020
T he year 2020 was marked by a
challenging scenario, unprecedented
in the past four decades. Our way of
life, work, and how we relate with others
were transformed, and in the blink of an
eye, we were forced to learn and adapt to
this new reality. If there ever was any doubt,
now there is none: people, communities,
the environment, businesses, institutions,
governments—we are all interconnected.
We impact and we are impacted.
In this context, the role played by
organizations like Suzano was and is even
more important. We are responsible for
the changes we want to see in the world,
and we are part of something bigger. As my
father, Max Feffer, would say: the kind of life
we want depends on what we do.
If, in the past, the main purpose of
organizations was to generate shareholder
value, our view is that this is not enough
anymore. We understand that we need to
create and share value with the various
audiences whom which we relate: the
stakeholder value. We have been adopting this
vision for almost two decades now, and 2020
was proof that we are on the right track.
With strength and kindness, we put our
Drivers into action and communicated our
purpose: renewing life inspired by trees.
It is precisely in these challenging moments
that we reveal our essence. We take care
of our 15,000 employees, we work on
behalf of the environment and society with
“innovability” (innovation + sustainability),
while delivering exceptional results and
making a difference in the lives of billions of
people with our products.
In this report, we highlight our main
achievements and business challenges
in 2020, as well as the initiatives that
contributed to health and safety so that we
could face this pandemic together.
I would also like to point out our
contribution to help Brazil assume its
global leading role on environment and
bioeconomy. We believe that part of this
task should be taken on by the private
sector, and the planted tree sector is one of
the most relevant on this front.
At Suzano, we are committed to a series
of long-term goals, such as replacing 10
million tons of plastics and petroleum
products with products from renewable
sources by 2030. It is with challenging goals
like this, courage and a robust plan to face
them, that we will continue working to
become part of the solution to the great
challenges of the 21st century.
I am an optimist and I see every crisis,
regardless how severe, as an opportunity.
It's time to review our course, make
adjustments, and prepare for a different—
and better—future. Waves of growth and
recession have been around since the
beginning of time; the world is cyclical, and
we must be prepared to weather any storm,
always learning from our experiences and
guided by our values and purpose.
After all, we plant the future.
David Feffer
Chairman of the Board
of Directors of Suzano
Messages 5
Message from the CEO
BEYOND
our walls
[GRI 102-14]
W hat could have been more challenging in
2020 than working in a totally uncertain
scenario, under a constant threat to
life? At the beginning of the year, none of us
could measure the impact of COVID-19 on public
health, economy, and society. And it was in the
midst of this inhospitable setting that Suzano
simultaneously had to deal with several issues,
without knowing for sure what the outcome would
be. The first and most urgent matter was taking
care of the people in our organization. How to
provide them with physical and emotional support
to keep them healthy? In just a few days, we put
nearly 4,000 employees in home office and closely
monitored approximately 11,000 people who
work every day in our operations, even before the
government’s restrictive norms.
Once again, our Cultural Drivers were put in place
and tested. We organized a set of initiatives to help
society mitigate the problem, since we know that
Suzano's role is not bound to the company's walls.
We imported masks and ventilators from China, we
directly contributed to the local production of 6,500
ventilators in four months in partnership with other
companies, we put together emergency actions
in collaboration with neighboring communities
and regional governments, we worked in the
construction of field hospitals, we supported
suppliers to help them maintain the financial health
of their businesses, and we created a specific plan
for our paper customers who, within our business
environment, were the most affected by the pandemic
due to the closing of schools and stationery stores,
along with other factors. We did all of this without
affecting the services provided to our customers,
ensuring the supply of our essential products.
6 Relatório Suzano 2020
The pandemic revealed the essential nature of our
products, such as personal hygiene items, health,
medical, and food packaging, masks, and other
products that are necessary to fight the crisis. On
the other hand, it caused a sudden change on each of
our operating fronts. We have dealt with a significant
drop in global demand for printing and writing paper,
which required a prompt response in redefining
inventories and production. However, the growing
global demand for tissue has led our customers to
operate close to maximum capacity, directly driving
demand for pulp. Despite the difficulties in 2020,
forestry, industrial, and logistics operations had
an exceptional year, benefiting from the synergies
resulting from the merger, a process that contributed
to cost reduction for the organization. As a result,
even in a challenging market environment in which
pulp prices were below expectations, the company
obtained significant cash generation.
OUR PURPOSE IS
RENEWING LIFE INSPIRED
BY TREES. THIS PURPOSE
DRIVES US, TAKES US
FORWARD, MOVES US,
AND PLACES US AS PART
OF THE SOLUTION TO
THE CHALLENGES FACED
BY SOCIETY.
With the impact on the lives of more than
2 billion consumers worldwide, we now have
a responsibility that transcends the role
of managing businesses and creating jobs.
Our role is to help society find solutions to its
structural problems. We are working hard on
topics of global interest and we announced
ambitious long-term goals that need to be
attained by 2030. Through our strategic actions,
we want (among other goals) to mitigate the
problem of income distribution, making it
possible for 200,000 people to rise above the
poverty line in the areas where we operate;
replace plastic and oil-based products with the
supply of 10 million tons of products obtained
from renewable sources; and become even
more climate positive, removing 40 million tons
of CO2 from the atmosphere.
We were pioneers in the issuance of a
Sustainability-Linked Bond (SLB) in the Americas,
raising US$1.25 billion in the market. This
assurance is unprecedented in the world for
the forest industry, linking financial resources
to the company's environmental performance.
In our case, we linked this issuance to the goal
of reducing greenhouse gas emissions (GHGs)
intensity by 15% by 2030 in order to directly
contribute to the fight against climate change.
This reinforces that we are taking on challenging
risks to assert our culture and our social and
environmental role, becoming a reference in the
market. Another important step linked to this
aspect was the inclusion of sustainability goals
for 100% of the Executive Directors in 2021.
Diversity and inclusion is other material topic that
have gained prominence in the past year. We moved
forward with the debate and implementation of
a series of initiatives through affinity groups, and
we also established short– and long-term goals for
the company. We are aware of the work required
to get where we really want to be, and we are
committed to evolving in this topic at Suzano.
DIVERSITY AND INCLUSION
IS A PROMINENT TOPIC IN
2020. WE ADVANCED IN THE
IMPLEMENTATION OF A SERIES OF
INITIATIVES AND ESTABLISHED
SHORT- AND LONG-TERM GOALS
FOR THE COMPANY. WE STILL HAVE
A LONG WAY TO GO TO GET WHERE
WE WANT TO BE, AND WE ARE
COMMITTED TO EVOLVING THESE
TOPICS WITHIN SUZANO.
Last, but far from least, we closed the year sharing
our newly created Corporate Purpose with all our
employees. After almost two years of listening
to professionals and several other stakeholders,
we have come to the conclusion that our reason
for existing lies in trees. And through trees, their
preservation, our planted forests, and our work,
we have a responsibility to lead the movement to
regenerate and oxygenate our planet.
Our purpose is Renewing Life inspired
by Trees. This purpose drives us,
takes us forward, moves us, and
places us as part of the solution
to the challenges facing society. In
2021, we will continue this journey
of renewal. I invite you to come with
us and renew your vision, your
ideas, and your perspective!
May it be a year of
learning and great
achievements.
Walter Schalka
CEO of Suzano
Photo: Sergio Zacchi
SECTION | 2
About this
REPORT
GRI 102-1, 102-40, 102-42, 102-45, 102-46, 102-47, 102-49, 102-53,
102-54, 102-56S
T he Annual Report 2020 contains Suzano's
main financial, social, environmental, and
governance results, as well as the company's
obstacles, challenges, and learning experiences
during this complex year for the world. It was
prepared following the Global Reporting Initiative
GRI Standards: Core option, the reporting
methodology adopted since our first annual report.
The company is also inspired by the principles of
the International Integrated Reporting Council
(IIRC), which promotes the communication of value
generation, with a focus and conciseness, as well
as a balance between the positive and negative
aspects of the report. The document is also
organized following the Sustainable Development
Goals (SDG)—17 global goals established by the
United Nations (UN) in 2015.
The content of the report was defined considering
the most relevant topics for the business and
our stakeholders, in line with the commitments
assumed by Suzano until 2030. Constantly evolving,
our report looks to reflect the way the company
impacts and is impacted by its initiatives and by
its relationship with the various stakeholders.
Increasingly, companies are recognized for values
that go far beyond financial aspects. A reflection
on this can be found in Section 3 of this document.
In a letter signed by the Executive Directors
responsible for the Sustainability and Finance and
Investor Relations areas, we show how Suzano
is positioned—and how it has been working
strategically for many years—in relation to the
concept of stakeholder value and sustainability
issues, which are becoming increasingly important.
Based on this assumption and inspired by our
purpose—renewing life inspired by trees—
we understand that, more than showing our
8
Suzano Report 2020
activities and performance in 2020, we need to
show our transformation capacity within the
business environment of which we are a part.
We want to lead the development of solutions to
build a more fair and sustainable society and, to
this end, we discuss these issues in the sections
according to their relevance and the impacts
generated for a specific audience: employee,
customer, supplier, investor, government, and civil
society and community. Topics that affect more
than one stakeholder are dealt cross-sectionally
and may appear in more than one section from the
perspective of the audience in question. Resources
such as links and “learn more” are used to guide
reading, facilitating an integrated approach to
the information. The material topics and SDGs
are highlighted throughout the text and are also
related to the topics of each section.
Suzano's materiality is the result of navigating
relevant topics for the business from the standpoint
of our stakeholders. These topics were identified in
2019, during an extensive active listening process
involving all of our stakeholders. The result of this
work guided the development of our sustainability
strategy and the structure of this report.
Suzano understands that the creation
of long-term value depends on constant
dialogue. For information on how the
company's engagement process with its
stakeholders works, click here.
GRI information is related to the respective
content throughout the sections and organized
in our Indicators Center, a digital platform in
which data are disclosed in accordance with their
relation to material topics, SDGs, GRI disclosures,
recommendations of the Task Force on Climate-
Related Financial Disclosure (TCFD)1, and new this
year, in accordance with the disclosure standards
of the Sustainability Accounting Standards Board
(SASB)2 and recommendations of the World
Economic Forum (WEF). Some of the information
provided on the platform also meets some
of the main ESG indexes and ratings, such as
Sustainalytics, MSCI Index, Dow Jones Sustainability
Index (DJSI), Corporate Sustainability Index (ISE),
and Carbon Disclosure Project (CDP).
In this version3, available in a microsite and in pdf for
download, we also present an infographic containing
our value generation model, which summarizes the
main information from 2020 in an informative and
convenient format.
The content of this publication was submitted for
analysis by external readers, invited by the company
to express impartial opinions on the quality and
transparency of the information. The document was
also independently assured by Bureau Veritas.
Enjoy your reading!
1 Initiative that deals with the availability and quality of financial information
related to climate change, formally supported by the company.
2 SASB disclosure standards allow companies to identify, manage, and communicate
sustainability data in a standardized, comparable, and specific manner for each type
of industry and sector, facilitating communication between companies and investors
about relevant financial information for decision making.
3 With the exception of financial data, installed capacity, total number of mills and
energy export data, the other indicators provided throughout this material do not
include information on Veracel's operations.
Aline Conceição dos Santos, Nursery
Assistant, Mucuri Unit (Bahia state).
Photo: Márcio Schimming
Material topics for
Suzano are
Climate Change
Ethics, Governance, and Transparency
Financial Management
Forest Management
Human Capital
Innovation and Technology
Operational Excellence and
Eco-efficiency
Social Development
Value Chain (customers and suppliers)
Water
The material topics are arranged in alphabetical
order, not in order of significance.
This reporting process is a central part of Suzano's transparency and
sustainability strategy and, therefore, we encourage and appreciate
suggestions, critiques, and comments to help us improve the process. For
questions or suggestions about our report, please contact us by email at
relatoriosuzano@suzano.com.br.
About this report
Sobre o Relatório
9
9
Laila dos Santos Carneiro and
Hermenegildo Angelo dos Santos,
participants of the Cerâmica Vargem
do Tanque project, in Cunha (São
Paulo state). Photo: Márcio Schimming
10 Suzano Report 2020
SECTION | 3
Suzano and
SHARED VALUE
Sustainability is an essential part
of Suzano's strategy. The company
understands that as important as creating
value for shareholders is creating value
that is shared with society right from the
start. In 2020, important steps were taken
in this direction.
Suzano and shared value 11
THE ERA OF CONSCIOUSNESS
Suzano's sustainability strategy lies at the core
of our Cultural Drivers. Due to the nature of
our business, which depends directly on natural
cycles, and to the positive relationship with
the communities in the locations we operate,
this topic has always been essential for us. In
2019, after our merger process, we began to
analyze our social, environmental, financial, and
governance performance in an even more systemic
manner, leading to a structural change in our
operating standards, in new product and market
developments, and in how we engage with our
stakeholders. Therefore, we aim to consolidate our
role as a reference in this important movement,
summarized today through our finances with the
acronym ESG, meaning Environment, Social, and
Governance.
In Suzano's evolutionary journey, we understand
that sustainability is an essential part of the
business. How, then, can we progressively
materialize it in all of our deliverables, processes,
and relationships? In February 2020, the company
released its Long-Term Goals, publicly making
ambitious commitments that must be carried
out by 2030, in line with the Paris Agreement
proposals and the United Nations’ Sustainable
Development Goals (SDGs). The year 2020,
however, brought an unprecedented crisis,
accelerating the notion that the role of leading
companies like Suzano—present in the lives of
more than 2 billion consumers on the planet—is
to contribute, through its operations, to the
construction of a better and more sustainable
future for all.
The concept of stakeholder value is based on
the principle of creating shared value, which
means that as important as creating value for
shareholders is creating value that is shared with
our various stakeholders who are part of the
ecosystem in which we operate.
All society benefits, for example, when our
organization works to replace raw materials of
fossil origin with more sustainable solutions,
extracted from our renewable forests.
Society is further strengthened by education
and income generation programs geared
toward neighboring communities or through
12 Suzano Report 2020
Click here to watch the
Cultural Drivers video.
Mãos que Valem Project, Jacareí (São Paulo state).
Photo: Márcio Schimming
ambitious actions to reduce and capture CO2
originating from the company's production
processes. The fronts seeking this convergence
are many and growing.
Thus, in 2020, we also continued to expand
and strengthen our operations in the area of
sustainable finance. For the first time, Suzano
issued a Sustainability-Linked Bond (SLB) in
the capital market, becoming a pioneer in the
Latin American market and in the pulp & paper
sector. According to the principles of this
instrument, the company associated the use of
these financial resources to achieving the goal
of reducing the intensity of greenhouse gas
emissions by 15% by 2030. The total amount
raised funds for the implementation of the
company's strategy, allowing us to strengthen
our operations in the constant and growing
creation of shared value.
(DJSI Emerging Markets) and the Corporate
Sustainability Index 2021 (ISE) of B3, Brazil's
Stock Exchange. These are important messages
signaling that we are on the right track. But
we know that we can and need to continue in
order to advance in our strategy, practices, and
transparency to improve these and other indexes.
Businesses impact and are impacted. At this point
of no return, social and environmental concerns
are becoming increasingly more relevant in our
forestry, industrial, and logistics operations, in the
offices, and in the areas of finance, research and
development, and new products, among other
sectors that are instrumental to our business. We
have entered the era of the regenerative economy,
which, in addition to financial returns, favors the
recovery of the environment and the perpetuation
of life, with quality and well-being for society.
As a result of this dynamic sustainability agenda,
Suzano's activities have been recognized by
renowned external evaluators. In 2020, the
company was chosen to be a part of the Dow
Jones Sustainability Index - Emerging Markets
Malu Pinto e Paiva*
Former Suzano's Executive Director of Sustainability
Marcelo Bacci
Chief Financial, Investor Relations, and Legal Officer
*Malu left Suzano in March 2021. She led the Sustainability area throughout
2020, a period that comprises the content contained in this report.
Suzano and shared value 13
VALUE GENERATION
Model
In accordance with the International Integrated Reporting (IR) Framework, through this infographic
Suzano intends to demonstrate the value creation process of its business by means of capitals
(set of resources). The impacts generated on society from the interactions between the production
process, the stakeholders, and the business model itself over the years are also represented here.
It also includes the company's main highlights and results for 20201.
Inputs
FINANCIAL CAPITAL
• Forest-based investments; expansion
and maintenance of commercial
forests and native areas
• Industrial investments; expansion and
maintenance of units, purchase of
inputs, materials, and services
• Logistics investments, such as
chartering of vessels, acquisitions
and renovations of terminals, more
efficient vehicles, road maintenance
and construction
• SOCIAL AND
ENVIRONMENTAL
INVESTMENTS
R$ 194.8
MILLIONS¹ IN 2020
• INVESTMENTS
IN RESEARCH &
DEVELOPMENT
R$ 163.4
MILLIONS IN 2020
MANUFACTURED CAPITAL GRI 102-4
• Eucalyptus forest for wood
production
• 21 distribution centers
• Offices (including 5 international
offices)
• Nurseries
• Industrial, research, and forestry
equipment
• Logistics modes
• MILLS: 11 + VERACEL
(JOINT VENTURE BETWEEN SUZANO
AND STORA ENSO)
• Innovation and Research Centers
(5 centers, 3 in Brazil, 1 in Canada,
and 1 in Israel)
• Shareholding interest in companies
focused on developing new
businesses based on pulp
INTELLECTUAL CAPITAL
• Partnerships with Academia
• Development of studies and
patents
• Digital transformation
• Processes and procedures
• Systems and platforms
(information organization,
knowledge management, data
control)
• Tacit knowledge
HUMAN CAPITAL
• Company employees and
contractors in offices, nurseries,
forests, mills, logistics terminals,
distribution, research, and
technology centers
•
COMPANY EMPLOYEES:
•
CONTRACTORS:
14,910
21,508
SOCIAL AND RELATIONSHIP CAPITAL
GRI 102-40, 102-42
• Academia and startups
• Associations /
Organized Groups
• End consumers
• Governments
• Investors and other financial
• Certifiers
• Civil Society
• Communities
• Company employees
and contractors
• Companies in general
• Customers
organizations
• NGOs
• Press
• Shareholders
• Suppliers
• Unions
NATURAL CAPITAL
• Water
• Soil
• Native forests and
restored areas
• Biological controls
• Climatic conditions,
biodiversity, and
natural cycles
1 With the exception of financial data, installed capacity, total number of mills and energy export data, the other indicators provided throughout this
material do not include information on Veracel's operations.
2 Both environmental and social investments were considered in the calculation of the indicator. Social investments include investments in social projects
and initiatives to support society in mitigating the effects of the COVID-19 pandemic, as well as donations to different social initiatives, including company,
raised, or incentive funds. Environmental investments include investments in monitoring and conservation of biodiversity, water monitoring, ecological
restoration, and CAPEX for environmental projects in the industrial scope.
14 Suzano Report 2020
14 Relatório Suzano 2020
Outputs Results generated in the period + deliveries that
impact the company's value creation
FINANCIAL CAPITAL
• EBITDA (adjusted): R$15 billion
• CAPEX: R$4.2 billion
• Operating cash generation: R$11.5 billion
• Presence in B3's Corporate Sustainability
Index (ISE)
• Presence in the Dow Jones Sustainability
Index (DJSI Emerging Markets)
• Other structured transactions
• ISSUANCE OF SUSTAINABILITY-LINKED
BOND US$1.25 BILLION RAISED IN THE
MARKET
US$ 1,25
BILLION RAISED
IN THE MARKET
SECTION | 4
MANUFACTURED CAPITAL
• Vertere: logistics project developed together with a
partner company at the Port of Santos (São Paulo state)
• Production of pulp, paper, and consumer goods
• New units in Cachoeiro de Itapemirim (Espírito
Santo state) and Ribas do Rio Prado (Mato Grosso
do Sul state)
• Improvements in equipment and infrastructure
with gains in productivity
• Provision of protection equipment to tackle COVID-19
in partnership with other companies and the
government (R$50 million earmarked for initiatives
such as the purchase and donation of 159 ventilators
and 1 million hospital masks)
INTELLECTUAL CAPITAL
• Startups and open innovation (10 projects
with startups in progress)
• Academia
• Training of “digital scientists” (37 from
different business areas)
• New products from eucalyptus fiber
• Revealing Suzano's Essence and Purpose
strengthening reputation and brand
• Reputation survey and stakeholder profile
• Lines of research focused on innovation in
forest plantations, in the industry, in new
products and markets
•
400 PATENTS
AND PATENT APPLICATIONS;
protected cultivars and nearly 150
new cultivars in the protection phase;
51 partnerships with universities and
research centers.
• Improvement of methodology for
quantifying carbon removal
• Improvement of forestry and
industrial techniques and processes
HUMAN CAPITAL
• Evolution of the Diversity and Inclusion
Program - Plural
• HRX, attraction of new talent and
development and career plans
• Structured actions to combat COVID-19
among employees and family members
• Training (e.g. UniverSuzano Platform)
• 360º assessment and other performance
• New initiatives in health, safety, and
analysis formats for the entire organization
quality of life
• Included in the ranking of the best
companies to work for
CAPITAL SOCIAL E DE RELACIONAMENTO
SOCIAL AND RELATIONSHIP CAPITAL
• Development, income, and education
programs
•
50,250 PEOPLE
AND 10,181 FAMILIES
BENEFITING FROM INCOME
GENERATION PROJECTS IN 2020
(average income generation of R$944)
• Results of investments made to combat
the pandemic: field hospital in Teixeira de
Freitas (Bahia state), production of 6,500
ventilators in partnership with other
companies, donation of products, etc.
• Development of Methodology of resilient
territories
• Creation of the Suzano Education
program (in place in 29 municipalities
in six states, assisting 898 schools
and benefiting 11,713 educators and
205,504 children and young people)
• 2 billion+ people impacted by Suzano's
products
• Supplier development programs, such
as Semear
• Collaboration and incentive in the
creation, advancement and access to
public policies
• 121 projects approved by the
Emergency Call for Proposals and
53,469 people benefited
• Research and extension, works
published, partnerships established
Value generation model 15
NATURAL CAPITAL
• 40 CRITICAL BASINS
MAPPED AND CONSTANTLY MONITORED
• 499 hectares of areas with restoration
process initiated in 2020
• Approximately 960,000 hectares of
conservation areas, with monitoring of
fauna and wildlife
• Projects in Imperatriz (Maranhão
state) and Três Lagoas (Mato Grosso
do Sul state) for waste treatment and
development of soil acidity correctives
• Production of 49 million natural pest
enemies for biological control and carbon
stock
16 Suzano Report 2020
16 Relatório Suzano 2020
16 Relatório Suzano 2020
5
SECTION | 5
LONG TERM
Goals
GRI 103-2, 103-3
More than just saying that there is a
commitment to sustainability, we have
to demonstrate it, take action, and
engage in it. Suzano's Long-Term Goals
are commitments that will add value to
the company and to society as a whole.
Material topics:
Ethics, Governance & Transparency;
Human Capital;
Water; Climate Change;
Innovation & Technology;
Social Development;
Operational Excellence & Eco-efficiency;
Forest Management.
Valdeci Alves da Silva, R&D Technician,
Limeira Unit (São Paulo state).
Photo: Márcio Schimming
Long-Term Goals 17
GOVERNANCE OF LONG-TERM
GOALS AND SUSTAINABILITY
INDEXES
The process of integrating Suzano's sustainability
strategy in its business areas accelerated in 2020.
Shortly after the disclosure of its Long-Term
Goals (LTG), the company started to mobilize
the various teams involved in the topics covered
and to build a governance model for the goals.
The idea behind this initiative is to allow the
company to systematically monitor the main
indicators, risks, and opportunities of the
commitments made, as well as its performance in
the sustainability indexes. At the same time, the
governance model allows the teams involved to
act in an integrated manner, contributing to the
dissemination and inclusion of these topics in the
company's decision-making processes.
The governance structure has a group composed
of Directors, responsible for strategic management
and a critical analysis, and eight working groups,
composed of representatives from different
areas who work on the achievement of the
goals. In this case, the methodology used was
built taking into account management criteria
from international standards.
In 2020, in a continuous effort to integrate
the sustainability strategy at all levels of the
business, Suzano linked the variable pay of
Directors and Managers (both at the executive
and functional levels) to the development and
results of the Long-Term Goals associated with
their respective areas of operation. This is one of
the decisions that demonstrate the company's
commitment to achieving the goals by 2030. As a
result, the variable pay of 100% of the Managing
Directors is now linked to at least one of the
Long-Term Goals.
Stakeholder engagement significantly contributes
to the evolution of the organization's sustainability
agenda. In 2020, it contributed to establishing
a goal related to the topic of biodiversity, which
had not been directly covered in the set of goals
previously announced.
Júlia Trevisan Cerignoni, Administrative Assistant, Limeira Unit (São Paulo state). Photo: Márcio Schimming
18 Suzano Report 2020
Long-Term Goals
- by 2030
EVEN MORE
CLIMATE POSITIVE
PRODUCTS FROM
RENEWABLE
SOURCES
MITIGATE
THE INCOME
DISTRIBUTION
PROBLEM
NET REMOVAL OF 40 MILLION
TONS OF CARBON FROM THE
ATMOSPHERE.
PERFORMANCE
In 2020, we removed 15,200,311.6 ton
of CO2eq from the atmosphere.
This volume of removals results from
the expansion of planted and native
forest areas in our forest base and
from increased productivity in our
eucalyptus forests.
Baseline: 0 ( Jan/2020)*.
Progress in relation to the baseline for
the goal: 38%.
* This does not mean that Suzano did not
remove carbon from the atmosphere prior to
2020. It only means that, for the purpose of
the goal, removals will be accounted for as
of this year.
OUR PLANS FOR 2021
Our goal is to once again achieve a
significant balance in net carbon
removal, thus maintaining our
positive balance. To make this
happen, we will expand conservation
areas and planted base areas, in
accordance with actions designed for
the first years of the goal.
OFFER 10 MILLION TONS OF
PRODUCTS FROM RENEWABLE
SOURCES THAT CAN REPLACE
PLASTIC AND PETROLEUM
PRODUCTS.
PERFORMANCE
We supply the market with products
from renewable sources that can
replace plastics and other petroleum
products, maintaining the level offered
in 2019 of about 200 thousand tons.
Despite the fact we have not observed
representative results towards the
target, we have advanced in the
development of food contact paper,
with the Bluecup Bio® and Loop® lines,
and flexible packaging for the cosmetics
and food industries.
Baseline: 0 (2020)*.
Progress in relation to the baseline for
the goal: 0%.
* This does not mean that Suzano did not
offer products that replace oil products prior
to 2020. It just means that, for the purposes
of the goal, this replacement started to be
calculated and recorded as of that year.
OUR PLANS FOR 2021
We plan to continue investing in the
development of new possibilities
using our eucalyptus trees.
LIFT 200,000 PEOPLE OUT
OF POVERTY IN OUR AREAS
OF OPERATION.
PERFORMANCE
With our job and income generation
programs in priority municipalities,
we lifted 2,285 people out of poverty,
which corresponds to 746 families.
Baseline: 0 ( Jan/2020).
Progress in relation to the baseline for
the goal: 1.14%*.
* Despite having reported in 2020 that we
were going to develop the goal using as a
baseline 32,000 people who had already been
lifted out of poverty until 2019, we chose to
start from zero to ensure a more effective
assessment of our contribution to poverty
eradication.
OUR PLANS FOR 2021
We will continue to expand our
actions to generate work, income,
and social action in order to lift
another 8,000 people out of poverty
throughout 2021.
Long-Term Goals 19
Long-Term Goals - by 2030
EMISSIONS
WATER IN THE
FOREST
WATER IN THE
INDUSTRY
15% REDUCTION IN SCOPE 1
AND 2 EMISSIONS PER TON OF
PRODUCTION.
PERFORMANCE
In 2020, our specific emissions
intensity per ton of production
was 0.1929 tCO2e/t. This number
was achieved thanks to numerous
initiatives related to efficiency and
reduction in the use of fossil fuels.
Baseline: 0.2133 tCO2e/t (2015*).
Progress in relation to the baseline for
the goal: 63.9%.
* Our emissions intensity and goal are in
line with the Paris Agreement, established in
2015, and among the lowest in the industry
according to the Transition Pathway
Initiative.
OUR PLANS FOR 2021
We will continue working to reduce
fossil fuel consumption in our
operations by means of engineering
and efficiency projects and by
maximizing self-generation of
renewable energy.
INCREASE WATER AVAILABILITY
IN 100% OF CRITICAL
WATERSHEDS.
REDUCE BY 15% THE VOLUME
OF WATER WITHDRAWN IN
INDUSTRIAL OPERATIONS.
PERFORMANCE
PERFORMANCE
Our focus in 2020 was the
characterization of 44 watersheds
as critical after assessing 100% of
Suzano's areas.
The volume of water withdrawn
for our industrial operations was
28.6 m³/t*, a reduction of 1.2 m³/t
compared to the baseline for the goal.
Baseline: 0 ( Jan/2020).
Progress in relation to the baseline
for the goal: 0%.
* The assessment and identification of
critical watersheds was fundamental to
define the areas that will require specific
actions to increase water availability
starting in 2021.
OUR PLANS FOR 2021
Our goal is to implement management
actions in 5% (4,500 ha) of the forest
areas included in the watersheds
deemed critical.
Baseline: 29.8 m³/t (2018).
Progress in relation to the baseline for
the goal: 26.7%*.
* This value is obtained by dividing the
volume of water withdrawn for industrial
operations, in cubic meters (m³), by the
total production of pulp and paper at the
units, in tons (t).
OUR PLANS FOR 2021
Our goal is to reduce water
withdrawal, aiming for a result that
does not exceed the 28.7 m³/t mark
in our industrial units. To this end,
we are going to implement actions
to optimize water use, which include
changing equipment to improve
water efficiency and using reclaimed
water in machinery.
WASTE
ENERGY
EDUCATION
REDUCE THE INDUSTRIAL SOLID
WASTE SENT TO OUR OWN OR
THIRD-PARTY LANDFILLS BY
70%, TRANSFORMING THEM
INTO BY-PRODUCTS.
PERFORMANCE
We reduced to 31.7 kg/t* the total
volume of solid industrial waste sent
to landfills.
INCREASE RENEWABLE
ENERGY EXPORTS BY 50%.
PERFORMANCE
In 2020, despite the generation losses
we had, we supplied 193 MWm of
renewable energy to the national
system. We also implemented projects
to increase the efficiency of steam
generation and optimize energy
efficiency using data science.
Baseline: 44.3 kg/t (2018).
Progress in relation to the baseline
for the goal: 40.6%.
* This value is obtained by dividing the
volume of solid industrial waste sent to the
company's own and/or third-party landfills
in kilograms (kg), by the total production of
pulp and paper at the units, in tons (t).
OUR PLANS FOR 2021
The expected result is to reduce
waste sent to landfills to 28.05 kg/t.
To this end, we are going to start
the operation of the waste center
in Imperatriz (Maranhão state) and
develop engineering and technical-
economic feasibility studies at the
units in Mucuri (Bahia state) and
Suzano (São Paulo state).
Baseline: 214 MWm (2018).
Progress in relation to the baseline for
the goal: 0%*.
* In 2020, we had losses in power generation
due to adjustments required by the product
quality strategy, which resulted in a new
export plan.
OUR PLANS FOR 2021
Our goal is to export 240 MWm**
of renewable energy to the national
system. We will continue to work on
the development of projects to increase
the availability of steam for power
generation.
** The result of the goal considers 50%
of the power exported by Veracel, a joint
venture between Suzano and Stora Enso.
INCREASE THE EDUCATION
INDEX (IDEB) BY 40% IN ALL
PRIORITY MUNICIPALITIES.
PERFORMANCE
We developed the Suzano
Education Program methodology
and 15 additional indicators for
monitoring the goal. In addition,
we mapped 32 municipalities that
will be considered as priorities for
implementing the goal.
Baseline: to be determined.
Progress in relation to the baseline for
the goal: 0%*.
* The definition of the priority scope of the
activities of the programs was fundamental
for the actions to achieve the planned results
as of 2021.
OUR PLANS FOR 2021
We will continue to invest in actions
to improve the quality of basic
education in the municipalities
considered to be priorities for our
operations. We will also expand
the scope of the program and
reach approximately 6,700 direct
beneficiaries.
Long-Term Goals 21
Long-Term Goals – by 2025
DIVERSITY AND INCLUSION
ENSURE 100% ACCESSIBILITY
AND ACHIEVE A 100%
INCLUSIVE ENVIRONMENT FOR
PEOPLE WITH DISABILITIES.
HAVE 30% OF WOMEN IN
LEADERSHIP POSITIONS
(FUNCTIONAL MANAGERS
AND ABOVE).
HAVE 30% OF BLACK*
EMPLOYEES IN LEADERSHIP
POSITIONS (FUNCTIONAL
MANAGERS AND ABOVE).
PERFORMANCE
PERFORMANCE
PERFORMANCE
We defined the baseline for
accessibility in offices and industrial
units in Brazil, using technical
standards as a basis. We also revised
the methodology that measures an
inclusive environment in order to
expand its scope, which now considers
all of Suzano's affinity groups.
With this, we set a new baseline
for the 91.8% goal of a perceived
inclusive environment, according to
the survey result*
Baseline: 38.4% accessibility
(Dec/2020) and 91.8% inclusive
environment (Dec/2020).
Progress in relation to the baseline
for the goal: 0% accessibility and 0%
inclusive environment*.
* In 2020, we adopted new methodologies
for measuring inclusive environment
and accessibility, which generated a new
baseline.
OUR PLANS FOR 2021
We are going to intensify our
actions to improve accessibility,
taking into consideration studies
and analyses about the need to
adapt the existing spaces.
22 Suzano Report 2020
We achieved the goals set for
2020 of increasing the number of
women in the organization and in
supervisory positions and above
by 10%. This result contributed
to reaching 19% of women in
leadership positions.
Baseline: 16% (2019).
Progress in relation to the baseline
for the goal: 63.3%.
OUR PLANS FOR 2021
Our goal is to have 21% of women
in leadership positions. To make this
happen, a mentoring program will be
put in place to accelerate women's
careers, among other actions.
Our goal in 2020 was to increase the
number of Black employees in non-
operational positions by 6% to expand
their possibilities for career growth.
As a result, we achieved a 3% increase
in the number of Black employees
in non-operational positions, which,
however, did not make a significant
contribution to the long-term goal.
We ended the year with 21% of Black
employees in leadership positions
(management and above).
Baseline: 22% (2019).
Progress in relation to the baseline
for the goal: 0%**.
** No progress was made against the
baseline for the Long-Term Goal, but we did
make progress in designing and executing
actions to achieve the goal, and increased
the number of black employees in non-
operational positions.
OUR PLANS FOR 2021
Our goal is to have 23% of Black
employees in leadership positions
in 2021. To make this happen, we
are going to develop new education
and training fronts and implement
actions to increase the share of Black
employees at Suzano.
* Terminology used by the Brazilian Institute
of Geography and Statistics (IBGE), including
Blacks and "Pardos". In Brazil, "Pardo" is
an ethnic and skin color category used by
the Brazilian Institute of Geography and
Statistics (IBGE) in the Brazilian censuses.
Long-Term Goals – by 2025
ACHIEVE 100%
INCLUSIVE ENVIRONMENT
FOR LGBTI+. *
PERFORMANCE
In 2020, we increased our communication
and engagement regarding this topic,
seeking to improve its visibility and
representativeness. We also increased
the scope of measuring an inclusive
environment for Suzano's other affinity
groups. This resulted in a 92.4%
perception of an inclusive environment by
LGBTI+ people.
Baseline: 92.4% (Dec/2020).
Progress in relation to the baseline for the
goal: 0%**.
** In 2020, we adopted a new survey methodology to
measure inclusive environment, expanding its scope.
This led us to establish a new baseline, justifying the
result of the goal. This does not mean that we have
not advanced in the design and execution of actions
to achieve the goal.
OUR PLANS FOR 2021
Our goal is to achieve a 93.8% inclusive
environment in 2021. To make this
happen, efforts will be made to improve
the self-reporting process of LGBTI +
people, among other actions.
*At Suzano, we chose to use the acronym LGBTI+,
which stands for lesbians, gays, bisexuals,
transsexuals, intersexuals, and “+” symbolizing all
other sexual orientations, gender identities and
expressions.
Vanessa Nascimento Conrado, Forest Machinery Operator, and Fábio Costa
Rodrigues, Forest Operations Supervisor, Mucuri Unit (Bahia state).
Photo: Suzano Image Bank
Learn more about
our actions in our
Indicators Center.
Long-Term Goals 23
BIODIVERSITY
One of the main threats to biodiversity loss in Brazil
and worldwide is the fragmentation of habitats.
Changes to ecological interactions in the landscape;
isolation of species with a consequent reduction
in genetic variability and reproductive success;
reduced resilience of species to climate change;
imbalance among pests, diseases, and natural
enemies are some of the main impacts caused by
this fragmentation.
In view of this and aware that the biomes where
Suzano operates are facing different levels of
fragmentation, in 2020, through a collaborative
process developed in partnership with the
Ecofuturo Institute and an active listening process
(50 interviews conducted with approximately 40
institutions of high relevance in Brazil and abroad,
representing NGOs, the public and private sectors,
and academia), we worked to build a long-term
commitment to biodiversity conservation in
three of the six biomes in Brazil—considering
the representativeness of the company's entire
territorial extension and influence—that will be
launched in 2021.
This process also allowed us to identify, based on
the priority areas for conservation (defined by the
Ministry of Environment) and on fully protected
Conservation Units (according to the National System
of Conservation Units - SNUC - 2010), the main areas
of fragmented natural remnants in our country.
The structuring of this commitment will be
based on three major priorities: connect, engage
and protect. And, within them, the following
strategic lines of action: biodiversity corridors
24 Suzano Report 2020
at the landscape scale, network of conservation
units; conservation of populations of key
species; business models that create shared
value; biodiverse production models; relief of
anthropic pressures on biodiversity. We also
believe that, for the success of the strategy we
are developing, it is important to rely on the
engagement of strategic players, both internal
and external, forming a collaborative, diversified
and continuous movement.
ECOSYSTEM SERVICES
In 2020, Suzano also worked on the topic of
Ecosystem Services relating carbon, water, and
biodiversity. Because they are intrinsic to our
business, these natural resources are considered
to be an asset of great value added to the
company, i. e., these are elements that make up
our natural capital.
Expanding and evolving the understanding of this
topic is part of our sustainability strategy, since the
integrity of ecosystem services is a key requirement
for the fulfillment of the commitments we have
publicly assumed. In order to create and share value
based on this topic and ensure that it is increasingly
integrated into the company's daily activities,
in 2021 we will start the implementation of a
structured operation strategy. In the short term, we
will work on the valuation of our natural capital,
which will give us a better understanding of where
we are, from a regenerative economy standpoint. In
the medium term, this will allow us to consistently
introduce this concept into our key processes so
that we can monitor and improve their performance
based on the same methodology.
Area of native vegetation preserved on one of
Suzano's farms in Mato Grosso do Sul state.
Photo: Araquém Alcântara
Long-Term Goals 25
Franciele Albino, Production
Assistant, Limeira Unit (São Paulo
state). Photo: Márcio Schimming
26 Suzano Report 2020
SECTION | 6
EMPLOYEE
relations
GRI 103-1, 103-2, 103-3
People play a major role in Suzano's
achievements. In 2020, they
exercised their collaborative spirit
to overcome the challenges posed
by the COVID-19 pandemic. The
following pages will show that
flexibility and commitment were
the key words of the year.
Associated material topics:
Human Capital;
Ethics, Governance, and Transparency.
Employee relations 27
OUR NEW BETTER
When we launched our Cultural Drivers, it was
impossible to imagine that this set of guidelines
could be even more relevant in 2020. During times
of global uncertainty, remote work, and adapting
operations and routines for those who needed to
stay in the units, Suzano's organizational culture
proved to be powerful and capable of expanding
the dialogue, creating alternatives, and moving
forward in the midst of an unprecedented and
volatile scenario for everyone. In this context, we
understand that flexibility is the key word.
Our people are an essential part of what Suzano
is today. Employees are a priority relationship
audience with whom we share the value created
by our businesses. For this reason, and despite the
extra challenges that the pandemic has imposed
on everyone, we enforced the collaborative spirit
that unites the company, facing the moment with
resilience and continuing all projects that aim to
develop employees in our organization.
Click here to watch the Cultural
Drivers video.
PERCENTAGE OF COMPANY EMPLOYEES AND CONTRACTORS
Beatriz David, Facilities Assistant, Limeira Unit
(São Paulo state). Photo: Márcio Schimming
Total number of
employees and
third parties
Employees1
Third parties
Total
2019
2020
Men
Women
Total
Men
Women
Total
11,133
21,016
32,149
1,907
1,641
3,548
13,040
12,628
22,657
35,697
20,152
32,780
2,282
1,356
3,638
14,910
21,508
36,418
1. Number includes Suzano and Instituto Ecofuturo employees.
28 Suzano Report 2020
Total number of employees by region in 20201
NORTH
NORTHEAST
MIDWEST
SOUTHEAST
SOUTH
ABROAD
TOTAL
981
4,282
2,061
7,299
76
211
14,910
1. Number includes Suzano and Instituto Ecofuturo employees.
COVID-19 TASK FORCE
Faced with the new and unexpected, we decided
it was time to use all our ability to work together
with customers, partners, and governments
to make a difference in the regions where we
operate. Thus, we organized two different work
fronts to face the challenges of COVID-19. One of
them is much more focused on practical actions
on a daily basis (short term), and the other
focuses on analyzing future possibilities (long
term). The two complementary groups brought
together representatives and several areas of the
company with the purpose of finding solutions
related to the impacts of the pandemic.
SHORT-TERM VISION
From the start, this group discussed and
structured initiatives focused on disease
prevention protocols. They determined the
suspension of all non-essential operational
activities of company employees and
contractors and the cancellation of trips, events,
visits to the units, and face-to-face meetings.
Those who did not need to be in person at the
units for the continuity of operations started to
work from home, following the social distancing
guidelines and, later, they could choose to return
to the workplace, according to the schedule
established by the governmental agencies.
Suzano Limeira.
Photo: Márcio
Schimming
Nathalia Gracielle da Silva
Cruz, Production Engineer,
working from home,
Mucuri (Bahia state).
Photo: Márcio Schimming
Employee relations 29
In the case of employees whose presence is essential
in operations, since our products are essential
for people's lives and for fighting the pandemic
itself, the company adopted the priority action of
measuring body temperature before allowing access
to our operations; the distribution of individual
meals and greater spacing between tables and
chairs in cafeterias; the adoption of greater distance
between chairs in operational control rooms, with
visual signage; and the adoption of quarantine if
an employee or contractor is suspected of being
infected; among other actions, which continue today.
This front also reevaluated, among other issues, the
use of the buildings, identifying which floors were
redundant and which could be shut down. See below
for other important initiatives:
• close follow-up by the medical team of
individuals and their families;
• increased sanitation of common areas;
• application of health self-assessment forms;
• distribution of masks;
• provision of virtual psychological support;
• support channels, webinars on health and
quality of life, among other topics;
• tracking of all positive and potential cases, with
protocols and monitoring of quarantine;
In 2020
SUZANO HAD
1,688 cases
OF EMPLOYEES
WITH COVID-19
AND 2 FATALITIES
• lending of office chairs for the comfort of
employees during remote work;
• implementation of the Preventive
Interaction Mapping (MPI) app to help
prevent COVID-19;
• implementation of “golden rules” to
guarantee the quality of life of people who
are working from home, such as meeting-
free days and respecting lunch and work
hours;
• communication plan and protocols
established with third-party service
providers.
On the short-term front, we are also working
to transform the situation of the communities
in our area of influence. In several locations,
we carried out a series of actions aimed at
reducing the negative impacts of the pandemic
on local society. To learn about these initiatives,
click here.
Efficient communication
Daily information about the pandemic, in real time whenever possible, was sent
to Suzano's employees throughout the year to keep them up to date on the
health and safety measures taken by the company, both internally and in the
communities. In a survey carried out at the end of 2020 to measure the quality
of communication, 98% of employees said they felt well informed about the
issues related to COVID-19.
30 Suzano Report 2020
In February, even before the
outbreak of the pandemic in Brazil,
Suzano was the only Brazilian
company that donated masks
to China, aiming to support the
country in coping with the crisis.
Nedes Alves de Freitas, Panel Operator - Drying, Limeira Unit (São Paulo state).
Photo: Márcio Schimming
LONG-TERM VISION
This front had a group formed by professionals
from different areas to discuss the cultural and
behavioral changes caused by the pandemic
and which will have effects over time. What are
these changes and what impacts do they bring
to Suzano's way of being? To what extent will
work routines be modified in the long run? How
will people relate to others? What is the result
of this in an extensive and complex production
chain like the pulp and paper industry? These and
other issues, in addition to being fundamental
in the development of future scenarios, started
to determine the advances experienced in people
management, which were already maturing since
the year before, with the launch of the HRX
Program, which puts employees on center stage
as agents of change.
To learn about all the other initiatives
developed for employees and society in
relation to COVID-19, click here.
Seedling Nursery in
Mucuri (Bahia state).
Photo: Márcio Schimming.
Employee relations 31
Watch the video of Suzano's
purpose. See the purpose
page on the website.
Therefore, the company understands that it has a
duty to strengthen this movement of regeneration,
oxygenation, and renewal of the world, living the
everyday purpose “Renewing life inspired by trees,”
the reason of being that connects the company to
society and the planet.
Along with the purpose, Suzano launched its new
corporate tagline, “Suzano: we plant the future,”
which marks the commitment to regeneration
that the company wishes to expand, influencing
and contributing to building a better and more
sustainable world.
Seedling Planting, Jacareí Region (São Paulo state). Photo: Márcio Schimming
A COMPANY WITH A PURPOSE
GRI 102-16
Purpose. A strong and meaningful word. Having a
purpose is knowing what moves and inspires us,
what drives us and gives us courage to achieve the
unimaginable. Knowing our purpose is knowing
our role in the world. Suzano understands that
the company's purpose guides its operations
and legacy and that an authentic purpose is not
created or invented, but rather revealed, because
it is an inherent part of a person or organization.
The work to reveal the company's purpose began
in 2019, and we heard from approximately
3,500 people, including employees and external
audiences, through surveys, interviews, and
workshops. All this resulted in reaching an
authentic, true purpose that was presented
to employees in December 2020 at an online
gathering that also celebrated the achievements
of this challenging year.
Inspired by trees, Suzano learned that life is
always renewed. Trees are part of the solution
to society's challenges, such as climate change,
scarcity of natural resources, loss of biodiversity,
and increases in social inequality.
32 Suzano Report 2020
Suzano
ESSENCE
The dictionary defines the word essence as the most fundamental
characteristic of a being or thing. For our company, from the revelation of
its purpose, it was also possible to unveil the Suzano Essence, using the
Golden Circle methodology, by Simon Sinek, which connects “why,” “how,”
and “what.”
WHY
Renewing life inspired by trees is our
purpose, our reason for existing.
The Suzano way is guided by INNOVABILITY (innovation + sustainability) and
Cultural Drivers:
HOW
• Create and share value
• People who inspire and transform
• It is only good for us if it’s good for the world.
SUZANO
ESSENCE
WHAT
Create sustainable and innovative solutions to society's
challenges from trees.
Commitments and sources of credibility: Strategic Vision and
Ambitions - Long-Term Goals - Business Model.
EVOLVING JOURNEY
In 2019, when launching the HRX Program,
Suzano encouraged the exchange of ideas for
the joint creation of an exceptional employee
journey in the organization. The project
involved 250 company professionals, from
different locations, positions, and areas, and
in 2020, this work resulted in a new way of
operating, a new structure, and some new
People and Management products (described
below). The area also underwent digital
transformation and incorporated into its daily
routine the principles of agility (delivering
projects in record time with the expected
quality), experience centered on the employee
(always listening to internal clients to search for
solutions that make sense to them), being data-
driven (seeking information and indicators for
decision making), and change management and
skills for the future (developing skills that allow
the areas to deliver projects that will contribute
to Suzano in the future).
NEW STRUCTURE
To face this new moment, we proposed a hybrid
model in the structure of the People and Management
Department. We maintained service to the various areas
of the company through business partners and added
a network structure, which integrates professionals
with agile and more collaborative methodologies for the
development of People and Management processes and
programs. The products coming from this new way of
working are connected in four stages of the employee's
path within Suzano:
onboard and enchant - strategy for the evolution
of the employer brand, talent attraction, and
onboarding;
empower and guide - career, performance,
development, culture and learning;
care and value - financial and non-financial
recognition and reward;
debark and leave a mark – departures, Alumni
(groups of former employees who identify with
Suzano's purpose and culture) and preparation for
continuing a second career or retirement.
Employee relations 33
SUZANO LEADER PROFILE
As part of this movement, we expanded our view
on leadership and defined the attributes of the
Suzano Leader Profile, which are connected to our
Cultural Drivers:
• inspires - has purpose, mobilizes, engages,
is a role model (walk the talk), is humble and
authentic, generates trust and is reliable;
• communicates - shares and positions,
guarantees understanding, aligns expectations,
is transparent and straightforward, sustains
difficult conversations;
• connects - has a systemic and long-term vision,
understands the whole and the parts, knows
how to negotiate, promotes collaboration,
mobilizes for the best sustainable result of the
company;
• transforms - is curious and agile, innovates,
stimulates new ideas, values diversity, deals
constructively with mistakes, has the courage to
change themselves and to adapt to changes;
• delivers - sets challenging goals, is passionate
about high performance, works together
with the team to promote excellence, is
meritocratic, recognizes and celebrates
everyone's success;
• forms people - shows empathy, knows and
cares about people, aspires to continuous
growth of each individual and the team, forms
and develops leaders better than themselves.
360º VISION
In 2020, for the first time, Suzano carried
out a 360º assessment, which considers, in
addition to the direct manager's vision, the
opinions of peers, partners, leaders, and direct
reports regarding the employee's performance
(valid for all administrative employees and
leaders). The company believes that this is
one of the fundamental tools for employees
and leaders to build an even more assertive
development plan. The first assessment cycle
had the participation of 78% of the company's
professionals. It should be noted that the
360º vision, the performance forums (that
verify the results and potentialities of the
employee's performance), and other people-
development forums at Suzano now explore, in
their analyses, the six attributes that make up
the leader profile and the Cultural Drivers for
non-leaders.
THE VALUE OF DIVERSITY
Suzano believes that a work environment that
values diversity and where people feel truly
embraced, are treated with respect and ethics,
is much more likely to develop the potential of
professionals and, therefore, of the company
as a whole. It is through the plurality of our
team that we can better understand the
various demands of the market and society.
This belief has become stronger within the
company since the creation of Plural, an
organic and voluntary movement that started
in 2016 and institutionalized in 2019. The
group looks to encourage the internal audience
to create and participate in debates on
diversity and inclusion, identify opportunities
for action, and support senior leadership to
keep important issues on these topics on the
organization's radar.
Some of the main issues on the agenda
regarding diversity and inclusion are part of
the business strategy and are also expressed
in the company's Long-Term Goals, as well as
in Short-Term Goals and in the remuneration
criteria of our leaders at the supervisory level
and above. Suzano has advanced in its journey
of diversity and inclusion in recent years, but
is aware that there is still a long way to go to
reach a satisfactory level in terms of equal
opportunities in its work environment and
to achieve its goal, which is to ensure a 100%
inclusive environment.
34 Suzano Report 2020
In 2020 and 2021, the goal of diversity
and inclusion will have a 20% weight in
the individual portion of the variable pay
of the executives.
PERCENTAGE OF EMPLOYEES BY RACE1
IN 2019
IN 2020
51% BLACK2
(42% "PARDOS" AND 9% BLACK)
54% BLACK2
(42% "PARDOS" AND 9% BLACK)
46% WHITE
0.3% INDIGENOUS
2% ASIAN
1% NOT PROVIDED
43% WHITE
1% INDIGENOUS
2% ASIAN
1% NOT PROVIDED
PERCENTAGE OF EMPLOYEES BY GENDER1
IN 2019
IN 2020
85% MEN
15% WOMEN
85% MEN
15% WOMEN
PERCENTAGE OF EMPLOYEES
IN 2019
IN 2020
2% LGBTI+
2% PEOPLE WITH
DISABILITIES
2% LGBTI+
2% PEOPLE WITH
DISABILITIES
RETURN/RETENTION RATE AFTER PARENTAL
LEAVE IN 2020
PERCENTAGE OF EMPLOYEES IN 2020
BY AGE RANGE1
RATE OF RETURN3
MEN
WOMEN
RETENTION RATE4
MEN
WOMEN
1.00
1.15
0.92
0.95
22% UNDER 30
66% BETWEEN 30 AND 50
12% OVER 50
1. Numbers for 2019 include Suzano and Instituto Ecofuturo employees. In 2020, Facepa was fully incorporated
by Suzano, so that as of this year, its data began to be included in the company's numbers.
2. Terminology used by the Brazilian Institute of Geography and Statistics (IBGE), including Blacks and "Pardos".
In Brazil, "Pardo" is an ethnic and skin color category used by the Brazilian Institute of Geography and Statistics
(IBGE) in the Brazilian censuses.
3. Calculated by dividing the total number of employees who actually returned from parental leave in the
reporting period (or who are expected to return next year, after the reporting cycle) by the total number of
employees who took their leave.
4. Calculated by dividing the total number of employees who were still working at the company 12 months after
returning from parental leave by the total number of employees who returned from leave.
5. At Suzano, we chose to use the acronym LGBTI+, which includes lesbian, gay, bisexual, transgender intersex, and
"+" symbolizing all other sexual orientations, identities and gender expressions.
Employee relations 35
OUR COMMITMENTS
GOALS FOR 2021
Women (gender inclusion)
LGBTI+ (LGBTI+ inclusion)
Increase the share of Blacks in leadership
positions (supervision and above) by 3 p.p.
Blacks (ethnic-racial inclusion)
Increase. the share of women in
leadership positions (supervision and
above) by 3 p.p
Increase the share of people with
disabilities in the organization by 1 p.p.
Increase the perception of an inclusive
environment for LGBTI+ by 1.4 p.p.
See the four Long-Term
Goals for this topic here.
AWARENESS-RAISING PROCESS
To achieve our goals, we structured, among other
initiatives, four awareness-raising areas for our
professionals, implemented in 2020.
• Training on unconscious biases - mandatory
course for 100% of the organization.
This course teaches how to identify
unconscious aspects related to prejudice and
discrimination.
• Training for executives - all senior
management and other executives of great
influence in the company are prepared to
learn how to properly address topics of
diversity and inclusion.
• Affinity groups - leaders and other
employees with a high capacity to influence
are invited to actively participate in one or
more of the company's five affinity groups,
organized in all units, and each group has one
or more sponsors who are Executive Board
members. The groups are:
Generations (inclusion and synergy
between different age groups)
PWD (inclusion of people with
disabilities).
• Diversity and inclusion for the People and
Management team - since 2020, Suzano
has offered training on this topic to People
and Management professionals, with the
support of a specialized consulting firm.
DIVERSITY IN THE HIRING PROCESSES
Suzano's selection processes underwent
several changes in 2020. In addition to
developing new positioning for employer
branding to communicate our commitment to
diversity and inclusion to the market, we have
established partnerships and have the support
of consultants specializing in this area to
attract a more diverse audience. From there,
we built a talent pool for each affinity group
and, in order to encourage the hiring of people
who are part of these groups, we have raised
awareness among the company's managers on
diversity and inclusion.
The Internship Program has also changed: an
assessment of positions has been carried out,
we have reviewed the selection criteria, such
as easing the requirement for English as a
second language, and we have expanded the
list of colleges considered in our dissemination
plan. As a result of these changes, we hired
60% women and 38% Blacks—2% more than
in the previous edition of the program. We
know that it is possible to reach even higher
levels and, therefore, we will continue to
invest in the work of attracting an increasingly
diverse audience.
36 Suzano Report 2020
Vithor Lucas Dionísio, Production Assistant, and Raphael dos Santos Caffeu, Panel Operator - Wood Preparation, Mucuri Unit (Bahia state).
Photo: Márcio Schimming
The Young Engineers Program was also
reformulated and was named Trainee Suzano.
We expanded our opportunities to attract more
diverse profiles, from different backgrounds
and universities, and to recognize the existing
talent in the company. The selection process
was 100% online, without the need for fluent
English, and was also open to our employees
who matched the requirements.
Some of the results:
we received applications from 205 people
with disabilities—almost four times more
than in the previous year
32% increase in women’s applications and
43% increase in Black applications compared
with 2019
among the 30 employees hired, 53% are
women and 43% are Black.
LGBTI+ Survey
At the end of 2019, a survey in our units revealed that 60% of the company's LGBTI+ group
considers Suzano to be an inclusive company. Our goal is to reach 100% by 2025 and, based
on that, our short-term goal in 2020 was to increase this index by 10 percentage points,
from 60% to 70%. In January 2021, a new survey revealed that not only did we achieve
our goal, but we exceeded it, reaching a 77% positive perception regarding the inclusive
environment for people in the LGBTI+ group. However, after the survey, we reformulated
the methodology used to measure inclusive environment with the support of a supplier
specializing in the subject. Based on this reformulation, we began to survey not only the
perception of the LGBTI+ audience, but also of all Suzano employees in relation to this
topic, and to measure the degree of inclusive environment for all affinity groups with which
we work. Learn more in Long-Term Goals.
Employee relations 37
Paulo Vidigal, Paper Production Manager, and David Pereira de Souza, Paper Machine Assistant, Limeira Unit (São Paulo state).
Photo: Márcio Schimming
HEALTH AND SAFETY
GRI 103-1, 103-2, 103-3 (HUMAN CAPITAL)
The safety of our employees has always been a
priority at Suzano. In 2020, even in the midst
of a terrible pandemic, we achieved significant
results in reducing accidents (see the table on
the side). These results are due to a proactive
and coordinated team effort. The company has
a Health, Safety, and Quality of Life team of
275 professionals. Each of Suzano's ten mills
has Safety Committees structured and divided
into subcommittees. In these groups, employees
participate in discussions and evaluate and
implement initiatives related to the topic.
In addition, since 2019, the company has been
investing in the development of actions that
lead to safe behavior through Programa Cuidar
(Care Program), which is considered to be the
backbone of the transformation plan for Suzano's
safety culture. Aimed at all Suzano professionals,
the program's strategy was adapted to include
preventive measures against the coronavirus,
and it adopted remote training and distance
education approaches. More than 550 actions
were carried out for audiences at industrial and
forestry units, ports, distribution centers, and
offices, which impacted Suzano's nearly 15,000
employees and most of the contractors. In 2021,
we want to expand the scope of this group. This is
possible thanks to our safety tools that are part
of day-to-day operations, such as the Daily Safety
Dialogue (DDS), Behavioral Approach, Positive
Activity Observation (OPA), and the Eye on the
Area (DNA, a system that records deviations in the
area and that can be easily accessed by a mobile
app), among many others.
Programa Cuidar follows the Hearts & Minds
methodology, developed by the Energy Institute,
which indicates 18 dimensions in the aspects
of work safety and action formats. Following
this methodology, we performed diagnostics to
assess the company's maturity in terms of the
safety culture in all operations and established
a baseline. Since the beginning of this work, we
have managed to improve our safety culture by
17%. We are at a point where the organization
has a strict control system to manage risks in
the workplace, with actions aimed at quantifying
risks and generating monitoring metrics. Now we
must move toward a systemic health and safety
vision. With this diagnosis, we are designing more
assertive action plans to act directly on the points
that require greater attention in order to achieve
the desired culture of excellence in safety.
38 Suzano Report 2020
Numbers for 2020 (COMPARED WITH 2019)
GENERAL INDEXES
68%
REDUCTION
IN THE SEVERITY
RATE OF
INCIDENTS
17%
REDUCTION
IN THE
FREQUENCY
RATE WITH
AND WITHOUT
LOST TIME
25%
REDUCTION
IN TOTAL
ACCIDENTS
FORESTRY
OPERATIONS
INDEXES
79%
REDUCTION
IN THE SEVERITY
RATE OF
INCIDENTS
41%
REDUCTION
IN THE
FREQUENCY
RATE WITH
AND WITHOUT
LOST TIME
46%
REDUCTION
IN TOTAL
ACCIDENTS
PULP OPERATIONS
INDEXES
PAPER OPERATION
INDEXES
38%
REDUCTION
IN THE SEVERITY
RATE OF
INCIDENTS
41%
REDUCTION
IN THE
FREQUENCY
RATE WITH
AND WITHOUT
LOST TIME
21%
REDUCTION
IN TOTAL
ACCIDENTS
57%
REDUCTION
IN THE SEVERITY
RATE OF
INCIDENTS
8% REDUCTION
IN THE
FREQUENCY
RATE WITH
AND WITHOUT
LOST TIME
11%
REDUCTION
IN TOTAL
ACCIDENTS
To learn more about the safety
structure and governance, visit
the Indicators Center.
Health and safety rates for company employees
and service providers
2019
2020
Results
Results
Severity rate1
Lost time injury rate2
Cumulative frequency rate/accident rate3
104
0.49
2.18
33
0.52
1.80
1. Rate calculation: (lost days) x 1000000 / (number of hours worked).
2. Rate calculation: (lost time cases) x 1000000 / (number of hours worked).
3. Rate calculation: (lost time + no lost time cases) x 1000000 / (number of hours worked).
Baseline
Goal
24
0.44
1.96
2021
Baseline
Goal
29
0.47
1.62
Employee relations 39
QUALITY OF LIFE
The physical and mental well-being of our
employees contributes to healthier and happier
working conditions. In a year when people needed
to be more attentive to emotional balance,
given the feeling of fragility and anxiety caused
by the pandemic, this topic gained even more
prominence at Suzano. Among the proposed
initiatives in 2020, several online events were
held, with programs and special guests to explore
the matter, including Dr. Drauzio Varella, Leandro
Karnal, and Mário Sérgio Cortella. In 2021, the
company plans to intensify this agenda. Visit the
Indicator Center for more information.
CHALLENGES OVERCOME IN THE INDUSTRY
Throughout Suzano and in the mills, the priority
in 2020 was to keep the largest number of
employees possible apart, maintaining physically
present only those who were essential in the
units, and establishing a series of protocols
to protect them from COVID-19. In this
regard, dozens of measures were taken to
keep people healthy, noting that some roles
in the industry are extremely specialized and,
therefore, performed by few professionals. We
had to guarantee the safety of the teams in an
environment where most of our products, mainly
pulp, were considered essential by the World
Health Organization (WHO). Implementing major
changes in our routine, with new practices and
procedures and keeping production at a normal
pace, was our biggest challenge this year.
In order to prioritize the health of our employees,
service providers, and the local community,
Suzano completely changed the general shutdown
schedule of the plants in order to reduce the
number of people in operations during the critical
period of the pandemic. The decision was to
postpone events that were to take place in March
and April and resume them from August onward.
This gave us the time and confidence to perform
maintenance without risk of contagion and to
ensure proper planning of protocols for handling
general shutdown activities.
General shutdowns are mill maintenance events,
governed by specific legislation and technical
standards. Shutting down activities for ten days a
year means putting an extra 3,000 people in each
unit, dedicated to risk monitoring, equipment
and personnel safety and, consequently, to
the excellence of our operation. Therefore, it is
imperative that the shutdowns are enforced.
We reorganized tasks in order to have a smaller
number of professionals during shutdowns
and created special protocols for that period.
We established, for example, individual
accommodations and meals in apartments
for technicians from other cities, preventing
the circulation of people as much as possible.
Maintenance activities take place every 15
months in the production units.
IN REAL TIME
Launched at the end of July, the new collaborative
online platform Workplace Suzano connected
all of the company's professionals wherever
they were—at home, in the office, in the mills, in
forestry operations, in laboratories, at logistics
distribution centers, or airport terminals—in
Brazil and around the world. The new tool
Workplace Results
One month after the implementation, 58%
of the direct employees were already on
the platform, a significant result according
to market benchmarks. Adherence to the
platform was voluntary. One month after
implementation, 58% of the direct employees
were already on the platform, a significant
result according to the industry benchmark.
In January 2021, active users of the platform
totaled more than 74%. This number rises
to 95% among leadership. For 2021, the goal
is to make Suzano even more connected,
with an increasingly constant presence of
leadership on the platform through posts in
texts, video, and live streaming.
40 Suzano Report 2020
has become a work instrument that provides
more fluid communication, greater integration
between employees and units, and greater
autonomy and dissemination of content through
the network, in addition to enabling widespread
communication. All professionals can now access
the content and post activities and comments
on the platform via cell phone or computer.
Adherence to the platform was voluntary.
VOLUNTARIAR PROGRAM
Voluntariar was created more than 20 years
ago to bring the company closer to neighboring
communities through the mobilization of
employees, service providers, family members,
and partners in voluntary actions that strengthen
social empowerment and promote positive
changes in society.
In a year of pandemic, the big challenge was to
continue with the volunteering initiatives online,
thus protecting the health of volunteers and
beneficiaries of the actions. Consequently, the
results were less robust compared to previous
years. This, however, did not impact the quality of
volunteer engagement.
Vanessa Nascimento, Communication Analyst, and Bruna Letícia de Souza Vieira, Participant in
the Cerâmica Vargem do Tanque Project, Cunha (São Paulo state). Photo: Márcio Schimming
Voluntariar in numbers
in 2020
948
VOLUNTEERS
3,345
HOURS CONTRIBUTED
20,075
BENEFICIARIES
43
LOCATIONS
COVERED
(INCLUDING
INDUSTRIAL
AND FORESTRY
UNITS,
DISTRIBUTION
CENTERS, AND
OFFICES)
21%
LEADERSHIP
ENGAGEMENT
(FROM FUNCTIONAL
AND EXECUTIVE
MANAGEMENT TO
THE EXECUTIVE BOARD)
To learn
more about
Voluntariar, visit
the Indicators
Center.
Employee relations 41
Danielle de Paula, Communication
Coordinator, and her children Lorena
and Felipe, Mucuri (Bahia state).
Photo: Márcio Schimming
42 Suzano Report 2020
SECTION | 7
CUSTOMER
relations
Suzano impacts the lives of more than
2 billion people worldwide. A significant
part of its products reach consumers
through customers spread over the
various continents. Our approach tailored
to their needs and to the development
of biosolutions has led to important
advances for the company in customer
relations and in the development of new
partnerships and products.
Associated material topics:
Innovation and Technology;
Value Chain;
Financial Management.
Customer relations 43
PULP
DYNAMISM AND FLEXIBILITY
GRI 103-1, 103-2, 103-3 (VALUE CHAIN [CUSTOMERS AND
SUPPLIERS])
Suzano started 2020 with excellent prospects
from a market standpoint after a very
challenging period marked by rising inventories
and falling prices. However, the pandemic
brought new uncertainties to the pulp and paper
sector, in varying proportions for each market
segment and region.
The increase in tissue consumption in countries
in the Northern Hemisphere and Asia, where we
do a significant volume of business, driven by
consumers stocking the product and emptying
the shelves in retail chains, especially during the
first half of the year, generated a demand beyond
that expected for market pulp.
On the other hand, given the expansion of social
distancing and the economic downturn, the
negative impact on printing and writing paper
and specialty segments gradually increased,
mainly in Europe. Due to this difficult scenario,
some integrated pulp producers in the Northern
Hemisphere stopped producing paper to produce
more pulp. Soluble cellulose producers did the
same, affected by the drop in production in the
textile industry. The imbalance between market
fundamentals, therefore, put additional pressure
on prices. Despite all adversities, our focus has
remained the same: serve all our customers,
seeking to continue supplying our pulp.
SIGNS OF RECOVERY
After a tough period, experienced mainly in the third
quarter, the company observed the rebound of all
pulp markets. In China, it is worth remembering, the
scenario was a little different, as the country quickly
recovered and has been growing, generating the
opportunity to increase prices.
Since the beginning of the pandemic, Suzano has
intensified the dialogue with its customers and
between its internal teams. This is because we
understand the relevance of being prepared to
implement, at any time and as soon as possible,
the contingency plans to avoid disruption in
production and logistics. Consequently, we
managed to deal with the fluctuations in the
period and successfully meet all production
demands.
EUCAFLUFF®
Major partnerships consolidated the entry
of Eucafluff® into major global customers,
strengthening its position in Europe, Asia, and
the United States in 2019. The result of more
than a decade of research by Suzano, this is
the world's first bleached eucalyptus kraft
fluff pulp, which can be applied in absorbent
and personal hygiene products, in addition
to disposable items, such as adult and baby
diapers and sanitary pads. The year 2020 was
about consolidating what had been started in
2019. However, the prospects for expanding the
business were affected by the developments of
the pandemic, since the product qualification
process is long, interactive, and in-person. As
a result, Suzano's plans to open new accounts
during this period were compromised.
EU ECOLABEL SEAL
Suzano's Eucafluff® became
part of the list of raw materials
authorized for use in disposable
hygiene products certified with
the EU Ecolabel seal. Recognition
is granted by the European Union
to final producers who meet high environmental
standards throughout their cycle, from the
extraction of raw materials, through production
and distribution, to disposal. The seal certifies to
consumers that they are using a product that is
sustainable from start to finish.
To be part of this select list, Suzano
demonstrated its excellence based on strict
environmental criteria, which analyze energy
consumption, greenhouse gas emissions (GHGs)
44 Suzano Report 2020
Felipe, son of employee Danielle de Paula, Communication Coordinator, Mucuri Unit (Bahia state).
Photo: Márcio Schimming
during production, and release of pollutants
into the air and water, among other aspects.
Such differentiators were also pointed out in
the Life Cycle Assessment study conducted
by ACV Brasil, in which Eucafluff® showed
favorable environmental performance results in
categories such as the use of land, water, and GHG
emissions when compared to the environmental
performance of the pine fluff produced in the
Southeastern United States.
PAPER AND PACKAGING
FLEXIBILITY TO FACE THE CRISIS
GRI 103-1, 103-2, 103-3 (VALUE CHAIN [CUSTOMERS AND
SUPPLIERS])
Paper was the business unit most affected by
COVID-19. Social distancing led to the closure
of offices, schools, and universities, and most
commercial activities. In this context, these
segments of society have significantly reduced
the consumption of one of our main products:
printing and writing paper. This market was already
suffering in developed countries, due to the
disruption caused by digital alternatives. However,
in developing markets, mainly in Asia (especially
China), there was still an increase in demand for
this product.
By 2020, during the most critical period of the
pandemic, consulting firms covering the industry
estimated a decline of 15% - 25% in the printing
and writing market. However, by the end of 2020,
the Pulp and Paper Products Council (PPPC), for
example, reported a 29% decline in this segment
in Latin America. In other words, from March to
December, the decline in this market represented
a 1/4 reduction in total demand for 2019.
To face this scenario, the company put an
action plan in place, made possible thanks to
the combination of some factors that give
us agility in decision making: we have about
300 salespeople in Brazil and a differentiated
distribution model that keeps us close to our
35,000 customers in the country. With this
reach, we managed to act quickly to serve other
markets and support our partners. Below are
two of our main initiatives.
Customer relations 45
E-commerce sales
In the second half of 2020, more
than 50% of the sales on the
Suzano + Platform to micro and
small customers were made via
e-commerce.
Renato Gonçalves Pereira, Cutting Machine Operator, and Raricka Moreira Santos,
Production Assistant, Mucuri Unit (Bahia state). Photo: Márcio Schimming
1. Tamo Junto (We're in it together): A
financial support program for printing
companies, stationery stores, and publishers
in the country, offering credit and debt
renegotiation, in addition to the donation
of communication materials and prevention
kits for daily use at points of sale. The project
benefited more than 1,000 partners through
four fronts. The first, focused on supporting
the business, offered differentiated credit,
debt renegotiation, and flexibility of charges.
The second donated essential materials to
reduce the spread of the coronavirus, such
as face shields, adhesive signs with distancing
information for points of sale and hand
sanitizer dispensers. The third included a
communication package with information on
hygiene and cleanliness, social distancing, cash
flow, flexibilization and credit by the National
Economic and Social Development Bank
(BNDES). The fourth front is an online channel
where our partners can access specific content.
2. Papers for specific segments: Some
sectors became more demanding during
social distancing and the pandemic. In this
sense, we directed our efforts to paper and
packaging in the food, pharmaceutical, and
hospital segments. In addition, we developed
alternatives to paper for drug instruction
inserts, special paper bags (replacing plastic
bags), and other packaging.
About the Loop®
Paper produced from renewable raw material (trees planted
specifically for that purpose) offers a better paper straw
experience due to its high performance and resistance to liquids,
ensuring that the product remains intact for up to two hours of
use, with an excellent feel for the user. Its production process
results in fewer losses and has greater versatility to create
more compelling products, in addition to being lightweight and
sustainable.
46 Suzano Report 2020
Paper donations
In 2020, a large mobilization was seen in the paper industry to meet the demands
arising from the new coronavirus. In this respect, in partnership with other producers,
Suzano coordinated the donation of 5 million paper cups produced with our Bluecup®,
the first Brazilian card stock developed for cups and made from a renewable source.
The donation was made to public hospitals and municipal administrations in the
states of São Paulo, Santa Catarina, and Paraná.
In addition, Suzano contributed to the production of face shields made using card
stock, conceived by Brasilgrafica S.A. The product was donated to the Ministry
of Health. We also donated 8 tons of card stock to make 350,000 hand sanitizer
containers, geared for Natura's consultants and truck drivers.
LOOP PAPER® AND DO BEMZINHO
One of Suzano's Long-Term Goals is related
to the replacement of plastics (learn
more here). In 2019, we launched Loop
Paper®, a specially designed paper for the
production of drinking straws as
an alternative to plastic straws.
In 2020, Suzano and beverage
maker Do Bem™ joined forces to
replace plastic straws in the 'Do
Bemzinho' products, a line of
juices for children, which will now
use straws made with our paper.
In Brazil, Loop® is present in
almost every fast-food chain.
WITH A NEW LOOK
After eight years, the Report® paper portfolio,
with its complete line of printing and writing
paper, gained new positioning and packaging.
Based on an understanding of consumer
desires, the new visual identity showcases the
main qualities of the product: performance
and sustainability. The new
packaging, with a more modern
and clean design, highlights the
differences and usability of each
product in the line, reinforcing
the attributes: sustainable, more
resistant, does not smear, and does
not jam the printer.
In 2020, Suzano invested in the restructuring
of its platform called Positive Suas Ideias
(Materialize Your Ideas), a movement created
to rethink production and consumption
through creative and sustainable packaging.
It is worth mentioning the Innovation Day,
held together with PepsiCo and L'Oréal, to
share our capabilities in terms of packaging
and looking to find possible synergies.
Customer relations 47
Robson de Souza, Packaging Line Operator, Limeira Unit (São Paulo state). Photo: Márcio Schimming
CIRCULAR ECONOMY
GRI 103-1, 103-2, 103-3 (VALUE CHAIN [CUSTOMERS AND
SUPPLIERS], INNOVATION AND TECHNOLOGY)
A major concern for Suzano has always been
to develop products with the least possible
environmental impact and provide solutions to the
market based on a systemic vision, driven by facts
and data. That is why, in the world of paper, we use
tools such as Life Cycle Analysis in our evaluations
and product development. Internationally recognized,
this approach offers a careful assessment of the
potential impact of products. It considers the entire
production process, from the extraction of raw
materials to the disposal of products, allowing for
an extensive assessment of cause and consequence.
With this information, we can support our
innovation processes on the best alternative.
Thus, we have sought in-depth knowledge in order
to understand how we can be relevant players in
this transition movement, which values, among
other things, a more circular economy (which
proposes a shift from the linear model of obtaining
resources, producing, and disposing of products),
while generating the least possible impact. As a
company based on renewable resources, when we
think about closing the cycle, we know that we
have many opportunities to explore a biological
route (which itself is regenerative and zero waste
when the components of the product can return
to natural biological cycles), focused mainly on
biodegradation processes.
Within a possible technical route that also leads
us to circularity, we have sought to increase our
active participation in the recycling chain, knowing
that this is one of many important attributes
that need to be addressed. Since our priority is to
ensure that each solution is, in fact, better from
a social, environmental, and systemic standpoint,
we use Life Cycle Analysis to validate all possible
alternatives. We understand that there is no point
in addressing the issue of solid waste, for example,
while adopting processes that demand more
natural resources or result in greater emission of
greenhouse gases (GHGs). We live in a time when
it is no longer enough to think of one or the other,
but rather one and the other.
Throughout this year, we have worked on the
development of TP Cycle, a new card stock that
uses post-consumer fibers in its composition,
48 Suzano Report 2020
mainly coming from
packaging. For the
development of this
project, we entered into a
partnership with Eureciclo, a
B corporation specializing in reverse logistics,
which mapped the supply of paper trimmings to
guarantee the best technical performance of the
product. They also approved the labor conditions
behind each supplier, thus helping us to secure a
solution that promotes a more positive chain.
In a form of complementing TP Cycle, we
reinserted post-consumer card stock fibers into
the production of our suppliers of cardboard
boxes, which are now used to pack our reams
of cut size. This alternative has two main
advantages: the first is its scalability since, in this
case, the production potential of the cardboard
chain after absorbing post-consumer material
is substantially greater than that of card stock.
The second is the mitigation of environmental
impacts: since cardboard can now be produced
using this type of input without major changes
to the process, the reinsertion impacts caused by
technical losses in the final product are minimal
when compared to the production of card stock
of a comparable category.
Scala paper towels at the point of sale. Photo: Suzano Image Bank
CONSUMER GOODS
POSITIVE BALANCE
GRI 103-1, 103-2, 103-3 (VALUE CHAIN [CUSTOMERS
AND SUPPLIERS])
Suzano's biggest challenge in 2020 was
to keep the operation running smoothly,
ensuring the safest conditions for its
employees and their families. This level
of safety was maintained in consumer
goods, which brings together around 1,200
professionals across the country. Trips and
visits were postponed, and processes were
adapted to the new reality. Fortunately, all
projects were maintained.
PRODUCTION AND SALES RECORDS
Suzano operates in the consumer goods
market with a focus on the tissue segment,
composed mainly of products such as and
papers for sanitary purposes (toilet paper),
paper towels, and napkins. Across Brazil,
demand for this paper line has skyrocketed
since March 2020, requiring high execution
capacity for the company to quickly redirect
mills and its business model in order to
respond well to the new needs of customers.
As a result, Suzano reached an 8.3% share in
value in the toilet paper market in the last
year, making it the fifth largest company in
this category in Brazil.
We consolidated our leadership in Brazil's
North and Northeast regions, expanding the
gap with the runner-up, and reinforced our
presence in the Southeast and Midwest, where
we had a smaller share in 2019. In 2020, we
increased our relevance, especially in the
states of Espírito Santo, Rio de Janeiro, and
Minas Gerais. In the state of Espírito Santo,
we are a leader in tissue. The data obtained by
Nielsen show in 2020 that the Mimmo® brand
is a leader in two-ply tissue, with 28% market
share. In 2021, we are looking to expand
participation to other states in the Southeast
and Midwest.
Customer relations 49
Débora Rocha Laranja, Sales Promoter in Espírito Santo state. Photo: Suzano Image Bank
BELÉM AND FORTALEZA UNITS
Completion of the integration of units and
processes between Suzano Papel e Celulose and
Fibria, which was one of the main priorities for
2020. All incorporation processes were applied
at the former Fábrica de Papel da Amazônia
SA - Facepa, the largest producer in the tissue
segment in the North and Northeast regions. Its
installed capacity is nearly 50,000 tons per year.
In addition to absorbing the new company
from a tax and IT standpoint, we worked on
cultural awareness in our two mills, which
became Suzano units: Belém (Pará state) and
Fortaleza (Ceará state) units. It is also important
to highlight the actions related to work safety,
which significantly reduced the number of
accidents in both locations.
NEW MILL IN CACHOEIRO DE ITAPEMIRIM
When the pandemic arrived in Brazil, Suzano
was starting to build its new tissue mill,
located in Cachoeiro de Itapemirim (Espírito
Santo state). We interrupted work on
construction for a few weeks to understand
the new scenario, analyzed the healthcare
conditions in the municipality, revised our
schedules, and adopted a series of measures
until the work could be carried out safely.
As a result, on March 2021, we started-up a
new plant, which will increase our production
capacity by 30%.
The three-ply toilet paper will be the unit’s
product highlight, following a trend of a higher
quality product. The toilet paper segment is
in the process of migrating to higher quality
products, from one-ply to two- and three-ply
tissues. According to data from Nielsen from
2018 to 2020, the share of two ply and three
ply tissue in the Brazilian market grew by 6
percentage points. As the category matures, it
is natural that consumers will migrate to more
sophisticated items.
50 Suzano Report 2020
the model for selecting areas of greatest potential,
based on technical premises; we designed the forest
quality control in two phases; and we innovated with
the anticipation of regrowth clearing, which already
occurs in all forest units with higher quality and
production potential.
This type of management is very much in
line with the idea of producing more with
less natural resources, since a series of field
operations now take place every 14 years, and no
longer every 7 years.
Currently, nearly 14% of our forest base is
managed through regrowth management. There
are economic benefits associated with the
system, which can cost up to 55% less than a
complete new cycle.
In addition, we use digital parameters to optimize
clonal allocation and developed a new system,
Tetrys, which allows us to make a careful
allocation of eucalyptus clones per area, assessing
productivity and risk-related aspects due to
climate variations, among other possibilities. The
tool offers so many competitive advantages that
Suzano decided to protect it as an industrial secret.
Forest Logistics, Mucuri Unit (Bahia state). Photo: Suzano Image Bank
RESEARCH & DEVELOPMENT
LEADING EDGE KNOWLEDGE
Suzano increasingly works on initiatives with
enormous disruptive potential. These are projects
that focus on what we call innovability; in other
words, innovation at the service of sustainability.
In a year of pandemic, our challenge increased.
How could we proceed with dozens of innovative
programs that depend on travel and international
partnerships? How do we find alternatives for a
job that, as a result of the health crisis, needed
to be done at a distance? Sending samples,
monitoring tests, and on-site evaluation of
results—all procedures that involve a technical
validation of performance and costs, which
would normally take place in the facilities of our
customer and prospects—have been altered,
becoming much more time consuming. Even so,
Suzano managed to advance with all projects,
obtaining better than expected results.
Suzano's innovability and research portfolio
of innovation and research is based on three
pillars: Sustainment, Transformation, and
Diversification. See below for the company’s
main projects on each front and the respective
results achieved in 2020.
SUSTAINMENT
This explores solutions to the challenges of the
current business, centered on planted eucalyptus
forests and on the production and trading of pulp.
Below, we highlight three examples of projects
geared to this purpose.
MORE PRECISION IN FORESTS, TRANSPORT,
AND INDUSTRY
Regrowth management (regrowth of the eucalyptus
tree after it has been cut from one or more sprouts
left at the bottom of the trunk close to the ground)
is the main alternative for reducing forest formation
costs; however, in order to generate productive
forests, several different technologies are needed
across the entire process. In 2020, we consolidated
Customer relations 51
In addition, for the integration of the harvest
and transport phases, a new digital tool, called
iGroot, processes about 25 million variables
to understand at what stage of growth the
wood should be harvested, where to take
it, and which is the correct transport mode,
depending on the destination unit. In the
industry, a machine learning solution, Thor,
helps recover the heat released from the
boilers for the operation of the turbines,
maximizing the energy generated for the
industrial unit.
TRANSFORMATION
This front is intended to generate a
competitive advantage for the business
through different uses and applications for
pulp, in line with the needs of our customers.
Next, see the main projects in this area.
MOLECULAR MARKER
The development of a high-precision molecular
marker gave Suzano the opportunity to make
an early selection of young seedlings adjusted
to the climate and soil characteristics of
each type of region. With 80% accuracy, we
can avoid physiological disturbances due
to poor adaptation of the plant to the site,
a phenomenon that often takes time to
manifest, causing complications and losses in
the field.
SPECIALTY PULP PORTFOLIO
We started 2020 with huge demand to service
our customers in China. This is because there
have been changes in the Chinese legislation
regarding the production of paper, forcing
Suzano to develop a new pulp portfolio. To
meet these demands, we offered two new
pulp products to the market—one designed
specifically for tissue, called EucaTissue, and
the other, a high-quality unbleached pulp
that satisfies the most demanding markets
in terms of sustainability and can be used for
the production of any type of paper, from the
tissue to the packaging segment.
Both cases are in line with the practice of using
fewer chemicals in the industrial process and
delivering very high-quality pulp for paper
production, including tissue. Both projects also
required testing. But how do we carry out tests
in the mills without being able to be there? The
way to do this was to increase dialogue and
intensify partnerships on the various fronts.
The Pulp team formed a collaborative network
between Suzano's customers and professionals
in the areas of Research and Development
and Industrial Operation so that tests could
be carried out by the customer in partnership
with Suzano.
DIVERSIFICATION
What is the potential of eucalyptus and how
can it be widely utilized? Bio-strategy projects
are being developed to expand our portfolio
of sustainable solutions in different niche
markets. These are the main ones.
LIGNIN
For lignin, 2020 was dedicated to reorganizing
the strategy and overcoming problems with
drying, which occurred at the Limeira (São
Paulo state) plant in 2019. We started the
process and began commissioning the plant,
having already managed to produce lignin
within the specifications desired by customers.
In addition to the priority market
segments—elastomers and phenolic resins—we
started to develop the second wave of lignin
applications, contributing to the increased use
of raw materials from renewable sources in
other value chains. Learn more about Ecolig.
MFC
GRI 102-10
The agreement with the Finnish company
Spinnova, in which Suzano now has a 50%
of the shares, continues to evolve year after
year. In 2020, we entered into a global joint
venture for the exclusive production and
trading of textile fiber from microfibrillated
52 Suzano Report 2020
cellulose (MFC), which represents a leap
in production from 100 to 1,000 tons/
year and will require an investment
of approximately €22 million for the
construction of a new plant in Finland in
2021 and 2022.
The goal is to reinvent the textile industry
using a fiber produced without any type
of solvent and with the same amount of
water already used in the process, saving
from 54% to 100% of water and chemicals
and giving us a sustainable product to
compete with fossil-based fibers, such
as polyester. In addition, CO2 emissions
are up to 60% lower when compared to
viscose and cotton. It is estimated that
the new unit will enter into operation
in 2022. It will be the first step toward
having a large-scale plant with our partner
in the future.
Geraldo de Almeida, R&D Technician, Limeira Unit (São Paulo state).
Photo: Márcio Schimming
New applications for MFC
Microfibrillated cellulose, or MFC, is a super-refined
cellulose that can be used in several different
applications, with good prospects for scaling in the
coming years. For this reason, in addition to advancing
the production of textile fiber with Spinnova, Suzano
has plans to produce MFC at its Limeira unit (São Paulo
state) for internal and external application (to the
market). Suzano has advanced in the application of
MFC to replace fossil raw materials in cleaning products
(detergents, softeners, liquid laundry detergents) and
in the production of paints and fibre cement shingles
(fibrous cement sheet), which were previously using
asbestos, a proven carcinogen.
Customer relations 53
with Ensyn, a company based in the U.S., in
which Suzano has had a 25% ownership stake
since 2012.
REPLACEMENT OF PLASTIC WITH PAPER
In the search for sustainable alternatives to
replace the plastic used in the drinking straw,
cup, and flexible packaging sector, Suzano has
been developing innovative solutions based
on improving the physical and mechanical
properties of the base paper and the application
of recyclable and biodegradable barriers on
the surface of the paper. These barriers give
the paper properties to resist water, fat, water
vapor, and oxygen, and are also heat-sealable
(heat-sealing machines). These are important
characteristics, for example, for food packaging
such as for cookies and non-perishable foods.
This substitution represents a major technical
and economic challenge. In 2020, laboratory
and industrial tests were conducted in order
to approve the technology in different players
in the market. Significant advances have been
made, not only in validating the performance and
machinability of the products—that is, whether
or not they perform well on filling machines—
but also in complying with the strict standards
established by regulatory agencies.
We hope to continue advancing
with the tests in order to offer a
high quality product that meets
the technical requirements and
offers a competitive price to the
market, allowing us to migrate
to alternatives coming from
renewable sources and become
more sustainable.
Bárbara Cristina Pamphilo, R&D Technician, Limeira Unit (São Paulo state).
Photo: Márcio Schimming
BIOCOMPOSITES
Biocomposites are also on the path of
innovability, resulting from the mixture of
eucalyptus pulp and fossil resins, such as
polypropylene and polyethylene. Suzano
holds the patent for this process, which has
been improved in order to reduce the carbon
footprint in the plastic chain, especially in
durable goods (roof linings, external decks,
vases, garbage bins, etc.). In the composition,
we managed to replace up to 60% of the fossil
component with pulp fiber.
BIOPETROLEUM
Large oil companies showed interest in our
product in 2020. In the last few months, we have
been conducting tests with two major global oil
companies in the U.S. and are approaching final
approval for biopetroleum, which includes all the
engineering and logistics solutions defined.
Final industrial tests involve the co-processing
of biopetroleum, albeit in a reduced proportion,
with oil. We are working side by side with the
oil companies to raise this proportion to much
higher levels. All this is developed in partnership
54 Suzano Report 2020
Carolina Cleto and Rafael Pereira, FuturaGene, Itapetininga Unit (São Paulo state). Photo: Fotocontexto
FUTURAGENE
FuturaGene, Suzano's subsidiary and a leader
in forestry biotechnology, produced significant
advances in its projects in 2020. Despite the
limitations imposed by the pandemic, we adapted
to the new reality and managed to maintain
activities in laboratories, greenhouses, and fields,
whilst implementing stringent all protocols for
sanitation and distancing between researchers,
allowing important projects to follow their
normal course.
It is worth highlighting the progression of
studies for the completion of the regulatory
package aimed at submitting the application for
commercial use of herbicide-tolerant eucalyptus.
The submission of the regulatory dossier for this
technology to the Brazilian Technical Commission
for Biosafety (CTNBio) is planned for 2021. In
Seedlings in the Nursery, Mucuri Unit (Bahia state). Photo: Márcio Schimming
addition, we advanced with our biosafety studies
of insect-resistant eucalyptus, which will continue
in 2021 and will be part of the regulatory package
for this technology.
In addition to these advances in the crop
protection platform, our platform to increase
forest productivity continues to evolve. On this
front, we expanded field tests with derivatives
of our genetically modified eucalyptus approved
by CTNBio in 2015. Experiments with this
technology, planted in the different regions
where Suzano operates, have shown promising
results after more than three years in the field,
when compared to the best conventional clones.
Other technologies in FuturaGene's pipeline have
also made significant progress, including those
focused on wood quality, in addition to advances
in the areas of Bioinformatics and Genomics.
Teams from Suzano and FuturaGene maintained
an open dialogue with several stakeholders to
share information about the safety and potential
benefits of biotechnology in trees, elucidating
how these tools may contribute to achieving
global sustainability. Learn more on the website.
Suzano and its subsidiaries currently perform
activities with genetically modified organisms
(GMOs) only for research purposes and in areas
outside the scope of certification. Learn more
about this topic by visiting our Indicators Center.
Customer relations 55
DIGITAL TRANSFORMATION
AN INCREASINGLY MORE DIGITAL
SUZANO
GRI 103-1, 103-2, 103-3
Digital transformation has become an important
movement at Suzano. In 2020 alone, more than
30 projects developed for this purpose impacted
more than 4,000 employees and produced cash
generation of approximately R$50 million for the
company (see some of the highlights on page
55). In addition, digital training initiatives in 2020
qualified 37 data scientists from different areas
of the business.
Since this movement aims to disseminate
digital skills throughout the company, several
forums were created to enable collaborative
decisions. As an example, we cite the
governance process, which involves several
Functional Directors who convene quarterly to
discuss the digital future of the company and a
panel formed by representatives from different
areas of the business to define the priorities
for the year.
This new work format is less bureaucratic and
hierarchical. The work becomes collaborative,
deliveries are made in less time, there are gains
in productivity, and the results appear much
faster. Digital initiatives take place on four work
fronts, which are analyzed from a strategic and
governance perspective. These include:
1. Digital Center
The Digital Center evaluates the strategic projects
for the evolution of the company. It then
internally organizes processes that associate IT,
digital transformation, and business areas to
implement these digital technology solutions,
such as machine learning and optimization,
which stem from artificial intelligence using agile
methodology and design thinking techniques
associated with digital technology.
56 Suzano Report 2020
Adriana Damasceno, Bridge Crane Operator, employee of the company DPWorld, who
works at Vertere, in the Port of Santos (São Paulo state). Photo: Márcio Schimming
2. Open Innovation
In order to make innovation accessible, the Open
Innovation front operates on a collaborative
solution model, in which Suzano's process
improvements, suggested by any employee, are
presented as a business case to partners of the
company's innovation ecosystem in Brazil (Endeavor,
Plug and Play, and Agtech) and in countries such as
China, Germany, Israel, and the U.S. With curatorship
by these partner companies, seven to ten startups
are invited to present their solutions to the problem.
Suzano chooses the proposal to be tested, with
the prospect of the startup becoming a partner if
the solution works. We are currently developing ten
projects with startups. One of them, called Sara,
tests artificial intelligence in the Procurement area
(see more on page 64).
3. Design Thinking
User-centered and focused on expanding the
mindset and providing more solution tools, this
front uses design-thinking methodologies so the
organization can work as a collaborative creation
environment, co-creating and prototyping in order
to find solutions faster.
4. Agility
Collaborative work format in which
multidisciplinary groups, called squads, through
various methodologies and analysis of indicators,
can deliver solutions every 15 days.
Digital Academy
Decentralizing knowledge requires
trained professionals in all company
areas. The purpose of the Digital
Academy is to train data scientists in
the company for the various business
segments. In addition to the desire to
learn data science, participants develop
a case and utilize project-based learning,
which is associated with one of Suzano's
Long-Term Goals.
LOGISTICS
FLEXIBILITY AND AGILITY IN
OPERATION
Suzano's logistics model, which today has 11
mills in four Brazilian regions and operates in
three different ports in the country, gave the
company flexibility to deal with the impacts
of COVID-19, which peaked in March, April,
and May 2020, months characterized by high
consumption of tissue in the countries of the
Northern Hemisphere and Asia, where the
company's largest customers are concentrated.
Our strategy to avoid a shortage in pulp supply
to our customers was to lower the stock in
Brazil, transferring about 300,000 tons of pulp
to supply centers abroad. We replicated the
same model in the domestic market, and we
managed to minimize logistics risks related to
problems or disruptions in the road, rail, and
maritime systems resulting from the pandemic.
AT HIGH PRESSURE
Other challenges that have nothing to do
with the health crisis were also faced by the
Logistics team in 2020, making the period even
more complex. An interruption on a stretch of
the railway in Três Lagoas (Mato Grosso do Sul
state) blocked the operation on this route for
six months, which led Suzano to transfer the
transport of 450,000 tons of pulp to trucks
and to another railway in activity in the region,
a move that required enormous efforts from all
teams involved.
The increase in the transportation cost of
pulp by ship, due to fuel-switching, was also
challenging for Suzano. The ships started to
operate on low sulfur fuel oil, which led to an
increase in cost of approximately US$100 per ton.
At the Port of Itaqui, located in the city of
São Luís (Maranhão state), the construction
works for a mooring berth—whose purpose
is to facilitate the logistics flow in that
terminal, which is under great pressure due to
the increase in the volume of competition—
started in October 2020. This was six months
after the initial schedule due to the difficulty
in mobilizing people and equipment at the
beginning of the pandemic. At the Port of
Santos (São Paulo state), the challenge was to
learn and adapt with the start of the Vertere
Project. In April 2020, four months ahead of
schedule, Suzano's loading in Santos began
to take place in a private terminal owned by
a partner company, in which Suzano made
investments. The new structure has a 35,000
sqm warehouse with a capacity for more than
150,000 tons of pulp. The facilities also include
an overpass, the extension of the terminal's pier
section, and a railway branch that integrates
with warehouse operations. Cargo is handled
by overhead cranes, controlled remotely by the
operators. The launch of Vertere also provided
environmental benefits by reusing water and
energy, which are expected to be accounted for
throughout 2021.
Customer relations 57
Daniel Paulo Mattos
Ferreira Barro, participant in
the Hand Sanitizer Production
Suzano Limeira.
Project, a partnership with FATEC
Photo: Márcio
Capão Bonito (São Paulo state) -
Schimming
action to fight the pandemic.
Photo: Márcio Schimming
58 Suzano Report 2020
SECTION | 8
SUPPLIERS
relations
Suppliers are key to the business.
In 2020, Suzano expanded its dialogue
with this audience, seeking to strengthen
the partnership in a win-win relationship.
In addition, in order to be closer to
them, the company invested in innovation
and technology.
Material topic :
Value Chain.
Supplier relations 59
ATTENTION TO MICRO- AND SMALL-
SIZED ENTERPRISES
In this case, the approach was to provide support
in a moment of crisis. Based on the analysis of
the supply chain management, Suzano defined
that it would support micro and small enterprises
(with annual revenues of up to R$5 million),
as per the definition of size established by
Serasa, and largely dependent on revenue from
agreements with the company. Approximately
700 suppliers were identified in the states of
Bahia, Mato Grosso do Sul, Espírito Santo, and
Maranhão. To help these suppliers, the company
decided to advance payments of invoices due up
to 90 days.
Another important measure was to increase
our inventories of inputs in order to keep our
operation stable. We advanced up to 20% of
the balance in outstanding purchase orders, i.e.,
contracted, but not delivered. As a result, the
company transferred approximately R$15 million
to these partners after April. These were some of
the ways found for micro and small suppliers to
maintain their working capital and thus survive
the most critical phase of the pandemic. In
return, we asked them to avoid termination of
employees as much as possible.
As part of the initiative, the company also
put together a Consultancy Plan to provide
training and contribute to the development of
suppliers that have more than 50% of their
business dependent on contracts with Suzano.
Approximately 70 suppliers joined the program
and can be trained to make their businesses even
more prosperous.
STRENGTHENED
PARTNERSHIP
Currently, we have 30,015 active suppliers in
our base and do business with 11,358 suppliers.
They are critical stakeholders for our operations.
For this reason, the impacts of COVID-19 on
the supply chain were analyzed with great care
and depth.
One of the initial measures established by the
Procurement team was to expand the dialogue
with this audience in order to reinforce the
partnership bond. The main concern was to
avoid any risk of disruption in supply, which
would affect forestry, industrial, and/or logistics
activities, causing unpredictable ramifications
throughout our supply chain. We also conducted
Covid-19 health and safety training for our
suppliers and extended all prevention protocols to
Suzano's professionals as well.
IN 2020, WE TRANSFERRED
APPROXIMATELY R$15 MILLION
SO THAT MICRO AND SMALL SUPPLIERS
COULD MAKE IT THROUGH THE MOST
CRITICAL PHASE OF THE PANDEMIC
Technology in Procurement
Waves of transformation will change
the procurement management model
within Suzano. The idea is to provide
technology in order to allow much more
intelligence and strategy for all activities
in the area. In 2020, we implemented
an artificial intelligence robot for
purchases and renewed the portal to
interact with our partners. For 2021, we
are looking for systems that support
our complete procurement operation
and the optimization of inventories and
warehouses.
60 Suzano Report 2020
Cost reduction
In addition to the challenge faced because of
the impacts caused by Covid-19, we needed to
guarantee the continuity of our operations while
also reducing the cost in Suzano's supply chain. To
this end, we began to renegotiate with the main
suppliers, with the support of the technical areas.
The result of this joint effort was a reduction of
nearly R$230 million spent during the year, which
was invested to improve operational efficiency.
To learn about all the other initiatives
developed for society in relation to
COVID-19, click here.
Lucas Saiter Bichara, Operator in the Wood Preparation
Area, Aracruz Unit (Espírito Santo state).
Photo: Márcio Schimming
Partnership with suppliers to make a
difference in society
Actions with larger suppliers were developed in order to find solutions that
would help them better navigate the crisis without harming their neighboring
communities. We further decided to guarantee, for a period of 90 days, a transfer
of 100% of the payroll costs of their employees, whose activities were suspended
due to the pandemic.
With large suppliers, Suzano established partnerships that impacted society as a
whole. One of the most important involved Magnamed, the largest manufacturer
of ventilators in Brazil, which delivered 6,500 units in four months to the Ministry
of Health. In order to deliver this volume of ventilators, Magnamed had to change
its manufacturing process. Suzano assisted the project in engineering matters and
in the search to find global suppliers of inputs, in addition to providing working
capital for the acquisition of components. Magnamed was also supported by
other companies, such as Positivo Tecnologia, Klabin, Flex e Embraer, Fiat Chrysler
Automóveis, and White Martins.
Supplier relations 61
Relacionamento com os fornecedores 61
NEW SUPPLIER PORTAL
In November 2020, Suzano launched the
Supplier Relations Portal, a platform with
relevant information for those who are already
partners of Suzano and for those who aspire
to be. The tool contains the principles, rules,
and processes to hire this critical stakeholder
in the business, including our legal, social, and
environmental commitments, with which this
audience needs to be in agreement for the
hiring to take place. In addition to registering
and showing their ESG credentials, suppliers
have the opportunity to leave comments,
questions, and suggestions for the company
regarding the procurement process.
This new tool represents a significant advance
in the company's way of hiring, with more
comprehensive and controlled requirements and
clauses. Soon, Suzano expects to see a major
change in mentality in its Procurement area. In
2020, the company approved the Responsible
Supplier Management (RSM) Program, which
will be 100% implemented within up to four
years. The expectation is that the social,
environmental, and governance topic will be
considered a decisive aspect in the supplier
assessment and selection matrix. This means
that in the case of suppliers on equal terms,
the one who is best positioned in terms of
social, environmental, health, safety, and
governance aspects will have the preference of
the organization.
CHALLENGES FOR 2021
In 2021, in addition to the challenge of
expanding the social, environmental, and
governance approach to procurement, we will
be committed to the organic growth of the
company with the construction of a unit in
Ribas do Rio Pardo (Mato Grosso do Sul state).
To this end, the development of suppliers will
be crucial to the progress of the expansion,
which will add 2.3 million tons of pulp per year
to the company's current total capacity.
62 Suzano Report 2020
Josefa Conceição de Oliveira, Nursery Assistant, Mucuri (Bahia state).
Photo: Suzano Image Bank
To learn more, visit the
Indicators Center.
SEMEAR PROGRAM
Semear is a training project for Suzano's micro and small suppliers.
Through this project, we select companies from various segments,
which receive guidance on how to ensure structured growth
through best management practices, methods, innovation, and
principles of legal, social, and environmental responsibility.
In 2020, we formed the first group in Mucuri (Bahia state), with
about 60 micro-companies in the transportation industry in the
region. The program is also being carried out in the states of
Mato Grosso do Sul, Espírito Santo, and Maranhão, for companies
in the fields of transport and forest maintenance.
Supplier relations 63
Relacionamento com os fornecedores 63
SECTION | 9
INVESTOR
relations
GRI 103-1, 103-2, 103-3
Suzano is recognized by the Market for
its solid and robust governance and clear
and transparent communication with its
investors. In 2020, the company advanced
the ESG agenda, and led important
movements in sustainable finance.
Associated material topics:
Ethics, Governance and Transparency;
Financial Management;
Climate Change.
64 Suzano Report 2020
Ana Cecília Gomes Silva Malanski,
Biologist, employee of the
company Equilíbrio, Aracruz
Unit (Espírito Santo state).
Photo: Márcio Schimming
Investor relations 65
ADVANCES IN GOVERNANCE
Suzano's high standards of corporate governance
is a determining factor for a company that seeks
to lead the movements towards the future of
the forestry industry, the sector, and society. In
2020, the ethical, upstanding, and transparent
performance of our Board of Directors, guided
by consistent policies and the vast knowledge of
supporting committees, allowed the company
to successfully endure one of humanity's most
challenging periods.
We started the year committed to completing
the integration of the operations of former
Fibria and Suzano Papel e Celulose, which
contributed to the company achieving excellent
cost reduction, despite the enormous pressure
in an atypical year for business. The combination
of high volumes and controlled costs, coupled
with the depreciation of the Brazilian currency
(BRL), led Suzano to achieve a very positive
performance in terms of cash generation. We
managed to reduce our net debt by more than
US$1 billion over the year.
The advances in 2020 are also reflected in
some unprecedented initiatives, such as the
launch of our first Sustainability-Linked
Bond, with which Suzano obtained the lowest
rates in its history in external funding. Also,
we were recognized by the prestigious Dow
Jones Sustainability Index - Emerging Markets
(DJSI Emerging Markets) and B3's Corporate
Sustainability Index 2021 (ISE).
OUR GOVERNANCE STRUCTURE
GRI 102-18
In 2020, despite the pandemic, Suzano continued
to evolve and improve its corporate governance.
In this sense, the company's governance structure
maintained its structure with a Board of Directors,
supported by an Audit Committee, the Executive
Board, and five other advisory committees.
The Board of Directors has seven independent
members, including two women. To learn more
about the composition of these bodies and their
respective roles, visit the Indicators Center or the
Investor Relations website.
66 Relatório Suzano 2020
RISK MANAGEMENT
GRI 102-30
High levels of governance require careful risk
management. At Suzano, this management is
supported by three complementary fronts, committed
to avoiding or reducing the likelihood of risks occurring
in the different areas of the business. We have an
Integrated Risk Management policy that applies to all
areas. This policy defines the criteria for identifying,
analyzing, treating, and monitoring these risks, taking
into account the internal and external contexts when
assessing risks. Those risks defined as priority and their
respective action plans are monitored by the Executive
Board, the Statutory Audit Committee, and the Board
of Directors. For 2021, our priority is to launch our
New Compliance Program, based on the nine elements
(tone at the top, risk assessment, regulatory follow-up,
policies and procedures, training and communications,
third-party management, monitoring, consequence
management, and reporting) and on our Compliance
Guardian Program. To learn more about the company's
risk management structure and initiatives to fight
corruption, visit the Investor Relations website and
the Indicators Center.
ETHICAL CONDUCT AND
MANAGEMENT
Suzano has instruments in place that guide the
ethical management of its business. Among
them, we have the Code of Conduct, the
Ombudsman Policy, the Disciplinary Measures
Policy, and the Rules of the Conduct Committee,
which establish the guidelines of the company's
governance process. All of these documents
deal with compliance with legal and normative
provisions applicable to the area and to the
Ombudsman's Channel, as well as with the
corresponding regulations, including specific
procedures and confidentiality of information.
These rules are intended to protect the person
who, in good faith, files reports in order to
preserve the company's ethical principles,
ensuring non-retaliation.
CODE OF CONDUCT
Inspired by the Cultural Drivers, the Code of
Conduct brings together the six ethical principles
that guide our daily actions, focusing on the
quality of our relationships, products, and services.
The document is a tool that guides and improves
our actions and decisions on a daily basis, ensuring
that activities with employees, shareholders,
customers, suppliers, government officials, and
the community are in line with ethical conduct
and with the respect that we nurture in our
relationships with the different audiences.
COMPLIANCE
The purpose of Suzano's Compliance Program
is to harmonize policies and the main internal
controls related to this topic. The program
prioritizes the integrity of the corporate
environment, whether internally or externally.
To this end, it explores the concept of the first
line of defense through standards of conduct,
worked on and disseminated in the business
areas in order to identify and mitigate possible
risks in our operations.
Imperatriz Unit (Maranhão state).
Photo: Márcio Schimming
Investor relations 67
OMBUDSMAN'S OFFICE
GRI 102-17
The Ombudsman Channel is a confidential,
independent channel offered to internal and
external audiences to answer questions and
forward reports and complaints about issues
that may violate our Code of Conduct.
Activity is conducted by an independent
contractor and guarantees confidentiality, if
requested by the whistleblower. Receipt and
control of the claims, via internet, are available
24/7, and access can be obtained through any
computer, tablet, or cellphone (with internet),
by clicking here.
The channel is valid for the company's
operations in Brazil and in all other regions
worldwide where we have offices.
The information is collected by competent persons
and areas in an autonomous and impartial manner
in order to identify the validity and applicability of
the necessary measures, and no form of retaliation
against the whistleblower is allowed or condoned.
To find out more about the indicators associated
with Suzano's Ombudsman Channel, access the
Indicators Center.
Ombudsman in numbers
COMPLAINTS RECEIVED
AND ADDRESSED IN 2020:
912
COMPLAINTS ALREADY
RESOLVED
DURING THIS PERIOD:
870
Ian Pires de Almeida (left), Sergio Roberto Garcia Filho (center) and
Kryus Mirandola Longo (right), Operators of the Wood Preparation Area,
Mucuri Unit (Bahia state). Photo: Márcio Schimming
68 Relatório Suzano 2020
SUSTAINABLE FINANCES, TRAIL
OF NO RETURN
GRI 103-1, 103-2, 103-3
In 2020, Suzano released its Long-Term Goals and
took them a step further: Suzano became the
second company in the world, and the first in the
Americas, to link one of its public commitments
to the company's debt management. In a record
3-week time period, the company put together the
issuance of its first Sustainability-Linked Bond
(SLB), a security in which the cost of financial
resources is tied to one (or more) environmental
and/or social goals. In the case of Suzano, the
issuance of the security was linked to the goal of
reducing the intensity of greenhouse gas emissions
(GHGs) by 15% by 2030, which is equivalent
to 0.181 tCO2e/t of product. To materialize its
SLB, however, the company needed to set an
intermediate target: 0.190 tCO2e/t of product (pulp
and paper, -10.9%) by 2025, when the company
will be halfway toward achieving the original goal,
with the debt maturing on January 15, 2031.
Suzano went to the market twice: on September 10,
when it raised US$750 million, and on November 16,
when it reopened negotiations and raised another
US$500 million. In both instances, it obtained the
lowest interest rates in its history in foreign loans
of 3.95% and 3.1%, respectively, and a current
coupon rate of 3.75%. In practice, this means that
the sustainability component has reduced Suzano's
cost of money. Combined with the fact that there
was a demand of US$7 billion in the first funding,
equivalent to nine times the offering, and US$2
billion in the second funding, equivalent to four times
the offering, these are signs of the soundness and
credibility achieved by the company over the years.
If the company fails to reach the intermediate
target, the interest rate will increase 25 base points
as of the second half of 2025, which will raise the
total rate to 4% per year. The average intensity of
emission obtained in 2024 and 2025 will indicate
whether the company has reached its target and,
therefore, whether it will be financially penalized in
this transaction.
Learn more about
Sustainability-Linked
Bond here.
Sustainability-Linked Loan
In February 2021, we carried out another action that combines business and
sustainability. We signed an export prepayment agreement in the form of a Sustainability
Linked Loan (SLL) in the amount of US$1.57 billion. The credit operation has
environmental performance indicators associated with targets for reducing the intensity
of greenhouse gas emissions and reducing industrial water withdrawal, by 9.7% and
2.1%, respectively, by 2025. Both goals are aligned with the roadmap of the Long-Term
Goal for Emissions: reduce specific emissions by 15% (Scope 1 and 2 emissions) by 2030.
The financing interest rate is equivalent to the Libor (London Interbank Offered Rate)
+1.15% per year. The average term will be 60 months, with maturity in March 2027. If
the company reaches the agreed upon goals, there will be a reduction of up to 0.02% per
year in the contracted cost. The funds raised will be used for the early settlement of the
US$1.67 billion principal of the export prepayment contract formalized as part of the
funding structure for the payment of the merger with Fibria, completed in January 2019.
Investor relations 69
TRANSPARENCY AND PIONEERING
SPIRIT
SLB has voluntary principles, which indicate the
best practices for this type of structure. They are
as follows: a suitable selection of performance
indicators, their material relevance to the issuer's
business, adjustments to the goals, transparency,
and reporting of operations. In addition to
selecting a challenging goal related to climate
change and meeting the instrument's accounting,
legal, and compliance demands, Suzano was a
pioneer in developing a SLB framework: a unique
and detailed document on sustainability issues
related to the structure of the transaction. The
framework was also submitted voluntarily for a
second party opinion, made by ISS ESG.
The third-party opinion of ISS ESG gives issuers
of green and social sustainability bonds a
reliable and independent assessment of quality,
in terms of the sustainability of their bonds.
Suzano's experience in issuing its first SLB is
sound evidence of the trust investors have in the
company's ability to reduce its specific emission
of greenhouse gases. It is also an incentive for the
company to seek new opportunities in the field
of sustainable finance. It is worth mentioning
that some companies in Brazil followed the path
pioneered by Suzano and also issued their first
SLBs. This is proof that, in fact, sustainable
finance is a trail of no return.
See the ISS ESG report,
available in English only,
by clicking here.
70 Suzano Report 2020
BNDES SELLS SUZANO'S
SHARES
In October 2020, the National Economic and
Social Development Bank (BNDES) sold its
150.2 million Suzano shares, equivalent to
11% of the company's capital. Individual shares
sold for R$46.00, totaling approximately
R$6.9 billion. Most of those who bought the
shares were not our shareholders, allowing for
greater dispersion of our capital and a future
increase in the liquidity of the shares, both on
B3 and of our ADRs on the NYSE.
In 2020, we joined the Carbon
Disclosure Project (CDP) platform,
which provides support to investors
and governments in their decision-
making process based on important
information on risk management,
opportunities, and social and
environmental impacts. It is an
initiative created to mobilize these
parties in order to build and accelerate
collaborative actions for viable
development for current and future
generations. The good news is that, in
our first year, due to the methodology
adopted by the organization, we
scored a B in the three questionnaires
answered on climate, water, and forests.
WE ARE IN THE DJSI AND ISE
Our commitments to sustainability and the
creation of long-term value are starting to be
recognized by prestigious external evaluators,
with relevant influence on the global ESG
agenda. In 2020, Suzano was chosen to integrate
the 2020-2021 portfolio of the Dow Jones
Sustainability Index - Emerging Markets (DJSI
Emerging Markets) and B3's 2021 Corporate
Sustainability Index (ISE).
The DJSI is composed of the top 10% of companies
in each sector, among the 800 largest companies
assessed in the 23 countries characterized as
emerging markets. In addition to Suzano, only ten
Brazilian companies are part of the new portfolios
that integrate the DJSI family of indexes.
B3's ISE, on the other hand, is a tool that
analyzes the performance of companies listed
on the stock exchange from a corporate
sustainability, social justice, environmental
balance, and corporate governance standpoint.
Suzano is part of the current portfolio, effective
until December 30, 2021, which is composed of
46 shares of 39 companies.
Willian Rodrigo Victorio, Paper Machine Assistant, Limeira Unit (São Paulo state).
Photo: Márcio Schimming
Suzano’s case on TCFD
Suzano was the first company in the pulp and paper sector and the first
non-financial company in Latin America to be featured in a case study by the
Task Force on Climate-related Financial Disclosure. Launched in 2015, the TCFD
Knowledge Hub, a page where initiatives related to TCFD recommendations are
disclosed, has already posted 14 case studies, developed mainly by companies in
the financial and non-financial sectors. In the case of Suzano, the highlight is the
Indicators Center, a digital platform with information about the company, including
financial data related to climate change, in line with the recommendations for
measurement and transparency of results proposed by the TCFD.
Investor relations 71
72 Suzano Report 2020
SECTION | 10
Relationship with
GOVERNMENT
AND ORGANIZED
CIVIL SOCIETY
Frequent dialogue with society through
institutions, organizations, and governments
has always been a common practice at Suzano.
In 2020, the company further expanded its
communication with the public authorities, in
all spheres, to support the fight against the
coronavirus. The results of these actions prove
that companies play a key role in mobilizing and
transforming society.
Material topic in the section:
Social development.
Alande Bernardo Santos, Participant
in the Community Garden for Women
project, in Prado (Bahia state).
Photo: Márcio Schimming
Relationship with government and organized civil society 73
RELEVANCE IN SOLUTIONS
GRI 103-1, 103-2, 103-3
Suzano's operation has perhaps never been more
relevant than in 2020. During a complex time for
the world, our pulp was the raw material for toilet
paper, medical packaging, food packaging, gowns,
surgical masks, and tissues, among other essential
products for society. How can we continue ensuring
that our products reach their destinations,
benefiting 2 billion end users? Once again, the
company opted for a constant, active, and
transparent dialogue with all stakeholders. After all,
lockdowns and interruptions in our chain were not
an option since our business is essential to people's
lives. We were successful in several initiatives and,
above all, we operated at a level that Suzano has
always aspired to— mobilization, in which we join
efforts with society to find solutions.
BRAZILIAN GOVERNMENTS
In Brazil, as soon as COVID-19 was confirmed,
the Supreme Federal Court (STF) delegated the
decision on how to face the pandemic to states
and municipalities. Suzano then took action and
dialogued with the federal government and other
government officials in its areas of influence,
16 states and 88 municipalities. One of the
goals was to ensure the company's readiness to
contribute to the initiatives aimed at protecting
the health of the population. It was also an
opportunity to share prevention protocols,
implement actions, and provide information
about plans and events, giving full transparency
about the company's actions and the situation
of its employees and contractors, all coordinated
with the state and municipal governments,
health departments, and health surveillance
agencies, among others. Thus, we prepared to
answer possible questions from government
officials and supported the municipalities in
putting together their own protocols
Suzano in the fight against COVID-19
SUPPORT IN THE CONSTRUCTION OF A FIELD HOSPITAL
IN THE CITY OF TEIXEIRA DE FREITAS (BAHIA STATE)
A 450-SQM
TO SUPPORT THE MUNICIPAL
HOSPITAL AND THAT SERVES
THE ENTIRE SOUTHERNMOST
PART OF THE STATE
74 Suzano Report 2020
20 ICU BEDS WERE
PROVIDED IN THIS
ACTION IN SUPPORT OF
THE STATE GOVERNMENT
OF BAHIA
The investments to combat COVID-19,
which were made in 2021, will be covered in
the next report.
COMMUNICATION AND ACTION
In its direct relationship with Brazilian state
governments, Suzano identified shortages in
hospitals, personal protective equipment (PPE),
and ventilators. One of the most troubling
scenarios was in the far south of the state of
Bahia and in northern Espírito Santo, given the
number of available beds in the Intensive Care Unit
(ICU) to cater to COVID-19 cases. This warning sign
led Suzano to begin negotiations with the Bahia
state government for the joint construction of a
field hospital in Teixeira de Freitas, a municipality
neighboring Mucuri, which would serve the entire
far south of the state.
Opened in June 2020, the unit has 20 ICU beds
in an area of 450 sqm adjacent to the Teixeira
de Freitas Municipal Hospital. The project was
made possible thanks to the partnership between
Suzano, Veracel Celulose, and the government
of Bahia. The private sector contributed a sum
of money to build and assemble the structure,
and the state government was responsible for
maintaining the health unit. Its deactivation was
scheduled for December 2020, but activities at the
site were extended until March 2021 to meet the
needs of the region.
Suzano also allocated approximately R$50 million
to initiatives such as the purchase and donation of
159 ventilators and 1 million hospital masks, and
it distributed 70% alcohol hand sanitizer, toilet
paper, diapers, and napkins to public hospitals and
governments at federal, state, and municipal levels.
The equipment was donated by the company to
the federal government and to the governments
of the states of Bahia, Espírito Santo, Mato Grosso
do Sul, Maranhão, Pará, Paraná, and São Paulo,
and also distributed to some municipalities in the
regions where the company operates. At the same
time, Suzano supported the production of 6,500
ventilators in four months in a project carried out
in partnership with Magnamed.
SUPPORT FOR ACTIONS AT MUNICIPAL,
STATE, AND FEDERAL LEVELS
To learn more
about these
actions by Suzano,
click here.
APPROXIMATELY R$50*
MILLION ALLOCATED FOR THE
PURCHASE AND DONATION OF:
159 VENTILATORS
1 MILLION HOSPITAL MASKS
AND DISTRIBUTION OF 70%
ALCOHOL HAND SANITIZER, TOILET
PAPER, DIAPERS, AND NAPKINS
6,500
VENTILATORS PRODUCED IN
FOUR MONTHS BY MAGNAMED
WITH SUPPORT FROM SUZANO
* The R$50 million figure refers to investments made to combat the pandemic in 2020.
Our actions remain strong in 2021. The updated total, as well as all the actions performed,
are available at: https://www.suzanoagainstcoronavirus.com
Relationship with government and organized civil society 75
PARTICIPATION IN FORUMS
AND ORGANIZATIONS
GRI 102-13
In 2020, Suzano joined the collective initiative
Call to Action, organized by Business for Nature,
a global community that brings together
organizations and 30 companies from 11
countries that contribute to nature conservation.
The purpose of the initiative is to mobilize
companies worldwide to advance their practices
promoting biological diversity, in addition to
encouraging governments to create public policies
that contribute to reversing the degradation of
biodiversity during this decade, called the Decade
on Ecosystem Restoration (2021-2030) according
to the UN, and promote sustainable development.
To support this agenda, the World Economic
Forum promotes 1t.org, of which Suzano is a
CHINA-UNITED ARAB EMIRATES-
BRAZIL CONNECTION
Who would have imagined the complexity
involved in importing ventilators and
hospital masks from China, a country
where Suzano has operations? There
are no direct flights from China to
Brazil. This distance requires a layover
in another country, in regions where
confiscation of this type of merchandise
occurs frequently. A safe route to Brazil
and within the national territory needed
to be established. This was all made
possible through an agreement with
the United Arab Emirates, in addition
to coordination with the federal
government and the seven states to
which medical items were donated, which
guaranteed the safe arrival of these
products at their destinations.
76 Suzano Report 2020
member of the Advisory Council. The goal of the
platform is to connect leaders in reforestation
with leaders in science, technology, business,
politics, and finance to reforest biomes in Asia,
Africa, and the Americas.
In Brazil, one of the ways Suzano reinforces
the importance of biodiversity in its business
strategies is through the Brazilian Business
Commitment to Biodiversity, launched by
the Brazilian Business Council for Sustainable
Development (CEBDS). As part of the Business
for Nature movement, the commitment contains
nine goals to be achieved by 2030 with a
focus on the pillars of prevention, mitigation,
compensation, and generation, in addition to
information sharing.
FOR A SUSTAINABLE AGENDA IN
BRAZIL
Suzano is one of the 40 signatories to the
Comunicado do Setor Empresarial Brasileiro
(Communication from the Brazilian Business
Sector), a document that defends the sustainable
development agenda and the fight against
deforestation in the Amazon. In addition to
companies from different sectors of the economy,
the movement, headed by CEBDS, brings together
entities from the various sectors of the economy.
The letter was addressed to the Vice Presidency of
the Republic and to the National Council of the
Legal Amazon, chaired by Vice President Hamilton
Mourão, and subsequently filed with the Federal
Supreme Court (STF), the Senate, the House
of Representatives, and the Attorney General's
Office (PGR).
The document highlights the possible impacts
on business caused by Brazil's negative image
abroad on social and environmental issues. It also
indicates immediate actions to be taken to allay
the negative perceptions of foreign investors
and consumers and defend the necessity of
redirecting investments to address Brazil’s
economic recovery in an inclusive, circular, and
low carbon economic model.
The six-banded armadillo is an animal frequently spotted in Suzano's forests in Mato Grosso do Sul state . Photo: Araquém Alcântara
ZERO DEFORESTATION
Suzano categorically does not practice
deforestation. In addition to preserving important
fragments of native forest and restoring previously
degraded areas, the company uses its vast
knowledge in forest management and the most
advanced technology to increase production
capacity of eucalyptus clones, occupying exactly
the same area that it has for the cultivation
of its trees. In 2020, as a way of expanding its
area of influence in this important topic, we
developed a Wood Supply Policy and started to
publish the company's annual reports specifically
on the subject.
Carbon, a strategic issue
GRI 103-1, 103-2, 103
Suzano believes that one of the main incentives for the recovery and conservation of native
forests is the creation of a regulated, global, coordinated, and large-scale carbon market.
Brazil can take a leading role in environmental debates for a low-carbon economy. We believe
that, in order to achieve a new role in global geopolitics, the country needs, as a nation, to
demonstrate its commitment to zero illegal deforestation. This is essential for advancement
in the process of creating a global carbon market, an effective instrument for protection
against deforestation and a source of resources that could be converted into benefits for the
population and the Brazilian territory as a whole.
Suzano continues to dialogue with the production sector, civil society, the Ministry of
Economy, and Itamaraty (Foreign Affairs) with the expectation of forming an internal
commission and developing a legal framework for the Brazilian carbon market to move
forward in 2021. The company also intensified communication with international authorities,
looking to support the process until a balance is found in final discussions on the Paris
Agreement. We are working on all these fronts and hope that the alignment between
countries will materialize in November 2021 at the United Nations Conference on Climate
Change (COP 26) in Glasgow, Scotland.
Relationship with government and organized civil society 77
78 Suzano Report 2020
SECTION | 11
COMMUNITY
relations
Suzano believes that companies are
important agents of transformation in
society. Faced with such a challenging
scenario caused by COVID-19,
the company responded quickly
and focused on supporting the
communities, without neglecting its
social strategy and existing projects.
Associated material topic :
Associated material topic.
Claudia Pavaneti dos Santos, participant
in the Rural Land Development Program
(PDRT), in Nova Viçosa (Bahia state).
Photo: Márcio Schimming
Community relations 79
CLOSER TO COMMUNITIES
GRI 103-1, 103-2, 103-3
At the beginning of 2020, Suzano's expectation
was to dedicate efforts to the evolution of social
strategies and processes and proceed with its existing
projects and programs related to this topic. The
COVID-19 pandemic, however, created complex and
urgent needs regarding the company's relationship
with communities. The first major challenge was to
understand how the company should deal with the
problem. Based on analyses of the global scenario
and the hundreds of commitments that we have
with neighboring communities, we decided to
preserve resources and retain our capacity to serve
the communities, considering the possibility of an
extended crisis.
We continued with our programs and projects
and concentrated our efforts on developing new
methodologies and new ways of operating. At the same
time, based on partnerships and engagement with
communities, we studied as many ideas as possible, in
order to face the social and economic impacts of the
pandemic in the most vulnerable regions where we
operate. This task force resulted in a set of initiatives
called Emergency Actions, which benefited 55,028
people in 8 states (Bahia, Espírito Santo, Minas Gerais,
Mato Grosso do Sul, São Paulo, Maranhão, Pará, and
Tocantins), and in the construction of a field hospital
in extreme southern Bahia and hundreds of donations
of items and equipment used to prevent the disease
(see table on the side). The materials were distributed
by Suzano, together with the governments, including
regions where the company operates. To this end, the
needs of each state and municipality were taken into
account, as well as the strategy established by health
authorities to combat COVID-19.
We know that in 2021 the scenario imposed by the
pandemic will continue to be challenging. Approximately
2.9 million people in the country are below the poverty
line, according to the 2020 estimated population study
conducted by the Brazilian Institute of Geography and
Statistics (IBGE). Suzano is fully aware of its role in the
joint construction of transformational solutions in society.
80 Suzano Report 2020
Emergency
actions
In 2020, we launched a set of emergency
actions aimed at three main targets:
priority municipalities; groups and
institutions with reduced income
alternatives at the moment; and
neighboring communities (urban and
rural) with a high degree of socioeconomic
vulnerability. The initiatives were planned
to generate jobs and income, fight
contagion by the virus and facilitate
families' access to aid from the federal
government and states. The communities
remained engaged and participated
throughout the process in a climate of
positive cooperation.
See the results of each action and the
states benefited:
PROTECTIVE MASKS
(in partnership with other
companies)
498,000 MASKS
MANUFACTURED
BY THE COMMUNITY
FOR SALE
R$900,000 IN
INCOME GENERATED
30 COMMUNITIES
INVOLVED IN 7 STATES
(BA, ES, SP, MS, MA,
TO, AND PA)
332 SEAMSTRESSES
INVOLVED
EMERGENCY CALL FOR PROPOSALS
R$600,000 INVESTED IN PROJECTS
FOR RAPID RESPONSE TO THE IMPACTS
CAUSED BY THE PANDEMIC OVER A
THREE-MONTH PERIOD
70 LOCATIONS SERVED IN 5 STATES
(BA, ES, MG, MA, AND PA)
SUPPORT FOR SMALL BUSINESSES
AND LOCAL AND REGIONAL
ORGANIZATIONS
PARTNERSHIP WITH THE BRAZILIAN
FUND FOR BIODIVERSITY (FUNBIO)
469 PROJECTS RECEIVED
53,469 PEOPLE AFFECTED BY
THE 121 PROJECTS APPROVED AND
COMPLETED BY DECEMBER 2020
DELIVERY OF FOOD
STAPLES BASKETS
37,564 BASKETS
SOLD AND DELIVERED
BY FARMERS TO LOCAL
RESIDENTS
MORE THAN
R$1.1 MILLION
IN TOTAL INCOME
GENERATED
310 FARMERS FROM 39
COMMUNITIES MOBILIZED
IN 5 STATES (BA, ES, MA,
MS, AND SP)
308 TONS OF FOOD
SOLD
ACCESS TO PUBLIC POLICIES
During the pandemic, most of the families who benefit through
our programs were directly affected, either by the reduction of
consumer market options for their products or by the difficulty in
receiving reliable information on benefits offered by municipalities,
states, and the federal government. Thus, the technical teams of our
programs established a plan to provide continuous guidance to these
families, thereby securing their access to emergency assistance and to
guidebooks with preventive measures focused on specific audiences,
such as farmers, fishermen, quilombolas, and Indigenous people. We
also support the development of projects by associations submitted
in response to emergency calls for proposal issued by governments,
such as Bahia Produtiva (Bahia state government) and the federal
government, Food Acquisition Program (PAA - Programa de Aquisição
de Alimentos).
THOUSAND OF FAMILIES ASSISTED
90 ASSOCIATIONS IN 5 STATES (BA, ES, MA, PA AND TO)
R$400,000 RAISED AND 8 PROJECTS APPROVED IN
THE BAHIA PRODUTIVA CALL FOR PROPOSALS
R$1 MILLION RAISED, 65 FAMILIES BENEFITED,
AND 16 PROJECTS APPROVED THROUGH THE FOOD
ACQUISITION PROGRAM
Community relations 81
RESILIENT TERRITORIES
GRI 103-1, 103-2, 103-3
Since Suzano defined its social strategy, the
qualified income generation process has been
strengthening year after year. Now, with its
Long-Term Goals disclosed in February 2020,
the company has established a new level of
social performance to be achieved, requiring
gains in scale and scope. This is because two
of the commitments are directly linked to
income generation and education, important
aspects for which, hand in hand with
communities, we want to build innovative and
sustainable solutions.
To learn about the two long-term
social goals, click here.
In line with these commitments, we prepared
to build and debate the evolution of the
Resilient Territories strategy. The goal of
this strategy is to use all the knowledge
developed by Suzano and other players in
the regions where the company operates and
has maintained community relations over
the years to influence public processes and
policies that benefit an increasing number of
people and regions.
THE MEANING OF TERRITORY FOR
SUZANO
The group of municipalities with which
Suzano maintain close relation and has
economic, social, political, environmental,
and/or cultural influence.
WHAT ARE RESILIENT TERRITORIES?
They are socioeconomically diverse territories
that are less vulnerable and better prepared
to deal with changes, complexities, crises,
and multiple disruptions (of an economic,
environmental, technological, social, or political
nature), avoiding economic collapse and
preserving their resource base, which is why
they are more sustainable in the long run.
HOW DOES A TERRITORY DEVELOP
RESILIENCE?
It is critical that Suzano has a systemic approach
that considers not only all of its operational,
institutional, environmental, and social influence
and impact, but also its ability to connect with
other relevant social players through strategic
partnerships that leverage local potential and
create environments for mutual cooperation.
A company, in this case, can act as process
coordinator, but never as the leader. Leadership
has to come from the territory.
The development of a region is not limited
to social and environmental programs. The
company has to understand the extent of its
impact upon the territory, which goes beyond
the positive return of these projects. Factors
such as training of skilled labor, tax collection,
and proper supplier relationship management
contribute to the resilience of the territory and
to pulling people up from the poverty line. In
this sense, Suzano plans to take advantage of
all the experience acquired through projects
such as income generation programs, which
today benefit around 4,000 families, to influence
the state and, thus, establish partnerships
to provide greater reach and coverage of the
initiatives in the territories.
The Aracruz (Espírito Santo state) and Mucuri
(Bahia state) units implemented a pilot project
for Resilient Territories in December 2020,
as they are very challenging from a social
standpoint. The other units are expected to
implement the project throughout 2021.
82 Suzano Report 2020
A new index
Another concept that Suzano put a lot of effort in 2020, and which complements
the resilient territory strategy, is related to the Multidimensional Poverty
Index. The purpose of this indicator is to understand which aspects influence or
reinforce people's vulnerability, such as education, access to public services, and
housing conditions.
Our public commitment to pulling 200k people up from the poverty line is related
to economic poverty: household per capita monetary poverty. However, the idea is
that Suzano will expand this view in the coming years, based on the multidimensional
poverty indicator. The concept is already used by the World Bank, but there are no
references of companies that have developed this instrument. Therefore, we are
going to establish the parameters and all governance rules, traceability, and audit
processes in order to give maximum consistency and transparency in measuring the
progress of the goal of pulling people up from the poverty line.
Domingas Rodrigues, participant in the Rural Land Development Program (PDRT), in the Córrego do
Macuco Community, in Conceição da Barra (Espírito Santo state). Photo: Márcio Schimming
Community relations 83
Jussara Aparecida Veloso, participant in the Colmeias Program - COAPIS Sorocaba (São Paulo state).
Photo: Márcio Schimming
COLLECTIVE CONSTRUCTION
IN COMMUNITIES
Social organization and autonomy are key for
communities to address their socioeconomic
demands and evolve in the long run. The
company shares knowledge and information
with the parties involved and, based on this
data, establishes a common vision for the
development of a given community and
region, based on prioritizing initiatives and
defining roles and responsibilities.
Suzano understands that community
engagement implies collective construction
and, therefore, invests in groups rather
than individuals. Thus, in partnership with
our neighbors and guided by dialogue and
transparency, we put in place action plans for
communities and monitor them annually, in
addition to having a short-, medium-, and
long-term transition plan, which expresses
where families and communities want to be in
five years. It should be noted that all actions
result from an agreement, in which Suzano
makes direct investments or assumes an
advocacy role, depending on each situation.
Also, as the groups we work with become
more prominent and self-sufficient,
the company can reduce investments in
structures and equipment. Thus, at the end
of the process, we hope to have established a
productive relationship between Suzano and
the community, with learning and benefits
for all those involved.
Suzano's community relations methodologies
follow guidelines that can be found in the
Indicators Center.
84 Suzano Report 2020
SUZANO EDUCATION
PROGRAM
The Suzano Education Program (PSE - Programa
Suzano de Educação) was launched in 2020. It
is an initiative that invests in the improvement
of public education through the professional
development of Board of Education teams, school
administrators, and teachers, as well as through
the engagement of families and communities in
the education project for the territory.
In its first year, the PSE managed to be present
in 29 municipalities in 6 Brazilian states (Bahia,
Espírito Santo, Maranhão, Mato Grosso do
Sul, Pará, and São Paulo), serving 898 schools
and benefiting 11,713 educators and 205,504
children and young people. With these positive
results, the idea is to expand the program in
the coming years. See more information in the
Indicators Center.
RELATIONSHIP WITH
QUILOMBOLAS AND
INDIGENOUS PEOPLE
Suzano's relationship with quilombola communities
is more intense in the states of Espírito Santo and
Bahia. In addition, the company has a series of
initiatives in place and maintains an open dialogue
with more than 12 Indigenous tribes. To learn more
about this topic, go to the Indicators Center.
ECOFUTURO: ENVIRONMENTAL
KNOWLEDGE AND
CONSERVATION
In line with Suzano's sustainability strategy and
reinforcing Suzano's social and environmental
commitments, Instituto Ecofuturo—an
organization founded by the company in 1999—
develops actions focused on environmental
conservation and promotion of knowledge. As the
manager of Parque das Neblinas, our reserve with
7,000 hectares of Atlantic Forest, the Institute
gave support to two on-site surveys in 2020, in
partnership with the Luiz de Queiroz School of
Agriculture, of the University of São Paulo (Esalq/
USP), and with USP's Biosciences Institute. It also
launched the mini-documentary Onde a Natureza
Faz História to disseminate the work carried
out with rural landowners and, adapting to the
changed scenario, provided a distance learning
platform with free courses on environmental
education and incentives for reading. More
information is available on Ecofuturo's website.
To learn about the main company
initiatives in social and land
development, such as PDRT, go
to the Indicators Center.
Carlimar Souza Santos, maker of
Farinha Gentil and participant in the
2020 Emergency Call for Proposals,
in Alcobaça (Bahia state).
Photo: Márcio Schimming
Community relations 85
SECTION | 12
Relationship
with the
PLANET
Suzano has one of the largest forest
bases in the world and its activities
are directly linked to the cycles of
nature. Topics such as climate change,
forest management, and innovation to
achieve better practices and results are
some of Suzano's highlights in 2020.
Associated material topics:
Operational Excellence and Eco-efficiency
Forest Management
Climate Change.
86 Suzano Report 2020
Relationship
with the
PLANET
Grace Kelly Mendes de Almeida,
participant in the Pencil of the
Atlantic Forest Project, in Capão
Bonito (São Paulo state).
Photo: Márcio Schimming
Relationship with the planet 87
87 Relatório Suzano 2020
EFFICIENCY AND
SUSTAINABILITY IN FOREST
MANAGEMENT
GRI 103-1, 103-2, 103-3
Suzano's view of forest efficiency is increasingly
based on the innovability concept, i.e., having
innovation at the service of sustainability, seeking
to harmonize operational and environmental
gains in production processes. The company has
sought innovations to ensure greater efficiency in
forest management processes, aiming at greater
productivity per planted area and cost reduction,
while trying to reduce the use of natural
resources in this operation.
In order to achieve greater efficiency, in 2020 the
company's entire forest base was reclassified
based on environmental parameters and
climate risk. This reclassification of production
environments is key to ensuring sustainable
performance. With the new environmental
classification, it will be possible to generate
recommendations on management, clonal
allocation, and forest-based repositioning with
important gains in productivity and optimized
use of resources. A good example in 2020
was the project to revise the principles of soil
preparation, aiming at greater savings in this
process. These improvements consider, among
other aspects, reduced use of machines in
the field and/or adoption of equipment that
requires less power. This means that, in addition
to lower costs, the operation now emits less CO2
into the atmosphere.
A similar approach is applied when we
demobilize areas and concentrate our forests in
regions with the greatest potential and minimal
risk in production. Instead of having forests
in a larger area, but with low productivity,
the company opts for smaller areas with high
productivity, that are lower risk and close to
the mills, thus optimizing the transportation
of wood and the use of natural resources. In
addition, considering the new classification
and environmental risk, all forests are planned
following specific technical recommendations,
in which planting density, fertilization, and
type of management are defined, among other
recommendations to reduce costs and use of
resources and to boost forest productivity.
TOTAL AREAS MAINTAINED BY SUZANO BY TYPE OF LAND USE
IN HECTARES (HA)
2019
2020
Company
areas
Leased areas and
partnerships
Total
Company
areas
Leased areas and
partnerships
Total
Forest and available
699,128.50
576,187.11
1,275,315.61
754,465.00
591,688.00
1,346,153.00
Areas for conservation
481,042.86
405,757.96
886,800.82
527,224.00
433,634.00
960,858.00
Infrastructure
57,066.40
47,331.71
104,398.11
51,982.00
38,586.00
90,568.00
Total
1,237,237.76
1,029,276.78
2,266,514.54
1,333,671.00
1,063,908.00
2,397,579.00
88 Suzano Report 2020
Marcelly Florêncio Francisco (at the back) and Vanusa Ferreira da Silva de Oliveira, Research Assistants,
employees of the company Equilíbrio, Unidade Aracruz (Espírito Santo state). Photo: Márcio Schimming
In our forest scope, three work fronts particularly
stood out in 2020:
1. WATER RESOURCES
The risk of water shortage is one of the highest
priority subjects for Suzano. This is because, in
addition to having a public goal related to the
use of water, cultivation of eucalyptus requires a
series of precautions concerning the proper use of
this resource. By 2030, the company will manage
100% of the watersheds identified as critical in
its studies, i.e., those that are most demanded
by the company and by its neighbors and,
therefore, require the most attention. Currently,
40 watersheds are classified as critical, in a total
of 2,006 where the company has forests, i.e., 2%
of the total. Suzano has the technology to make
recommendations for reducing the use of water
resources in critical areas and, mainly, to certify
(based on remote sensing) the effectiveness of
these recommendations in the regions where the
company operates.
2. BIOLOGICAL PEST CONTROL
A pioneer in the use of biological control
techniques, Suzano is one of the companies that
most invest in this area. Currently, the company
has two laboratories for the production of
natural enemies: one in Aracruz (Espírito
Santo state) and the other in the municipality
of Alambari (São Paulo state). In 2020, our
production reached 49 million natural pest
enemies, which were released in 56,376 hectares,
exceeding R$14 million in net cost avoided in
the 2019/2020 period. With this, not only do
we avoid damage caused by pests, but we also
use a much more interesting alternative from
an environmental standpoint: without using
agrochemicals, we reestablish a balance between
groups of pests in these areas. Again, we
have good examples of shared, economic, and
environmental gains in managing our forests.
In 2021, with the installation of laboratories in
Mato Grosso do Sul and Maranhão states, we will
have new resources to expand biological control.
Relationship with the planet 89
3. DISEASE CONTROL
Suzano does not apply fungicides to control
the vast majority of diseases. As part of our
integrated management strategy, we assess
the level of resistance of genetic materials,
which allows us to select only those clones
resistant to the most common diseases for
large-scale planting. In 2020, we defined the
guidelines and strategies of the FenomicS
program, which aims to intensify resistance
assessments, making them more mature,
robust, and large scale, and expanding the
scope for characteristics of resistance and
tolerance to biotic and abiotic stresses.
Drought in Mato Grosso do Sul
The severe drought, associated with large-scale
fires, was one of the main difficulties experienced
by Suzano in 2020, mainly in Mato Grosso do Sul
state. The drought alone affected productivity
in this region and, as a result, we had to deal
with forest fires. However, through our fire
prevention and fire fighting network, we managed
to minimize the impacts on our forests. From a
management and improvement standpoint, based
on the most severe drought conditions, valuable
information was collected and adjustments
were made to reduce future risk. The two main
examples were the revision of the planting spacing
and the adjustment in the recommendation of
clones, respectively. For these, the climate risk, the
distribution and intensity of damage in the forest,
and the differentiated response of eucalyptus
clones were considered. Based on studies of
climate anomalies, we have also redefined the risk
of new events of future drought and the possible
impacts on forest productivity. This measure is key
for greater assertiveness in the future planning of
wood supply.
90 Suzano Report 2020
Lucimar Kosanke, Research Technician, Aracruz Unit (Espírito Santo state).
Photo: Márcio Schimming
NUMBER OF FIRES IN SUZANO'S
AREAS BY STATE
2019
2020
Bahia
Espírito-Santo
Maranhão
Mato Grosso do Sul
Minas Gerais
Pará
Rio de Janeiro
São Paulo
Tocantins
Total
1,037
1,143
1,860
62
0
369
4
322
107
1,121
3,105
2,453
137
3
169
15
788
39
4,904
7,830
REAL-TIME MONITORING
Our environmental monitoring relies on
sophisticated equipment capable of assessing,
at a high frequency and totally remotely, climatic
conditions, carbon sequestration, use of natural
resources in our forests, forest health, and the
occurrence of weeds. With this information,
our teams identify when, where, and whether
there will be positive or negative impacts on our
future productivity so we can propose actions in
the short term and mitigate risks. Below are the
main initiatives in the use of these technologies.
1. WEATHER STATIONS AND RADAR
Suzano has a network of weather stations
dedicated to monitoring the weather across
all forest areas managed by the company.
Approximately 70,000 daily records are generated
by 167 stations, of which 71 are company-
owned and 96 belong to the National Institute
of Meteorology (INMET), a federal government
agency. In addition to this monitoring network,
we have developed a specific climate forecasting
system for the company's operations, which,
in addition to forecasting rainfall, gives us
predictions about the ideal conditions for
forestry operations, including soil preparation,
application of herbicides, and planting. The
climate monitoring and forecasting system allows
us to reduce uncertainty in forestry operations
and to evaluate different scenarios on the impact
of climate change in our production.
In 2021, Suzano plans to implement an
integrated climate and fire monitoring solution in
Três Lagoas (Mato Grosso do Sul state) by issuing
alerts based on the use of weather radar.
2. OUTDOOR LABORATORIES AND EDDY
FLUX TOWERS
Suzano closely monitors the growth of its
forests. The environmental sensors installed
in its six eddy flux towers, in addition to the
experimental micro-watersheds, enable a daily
assessment of carbon, energy, and water use.
Eddy flux towers are considered to be the most
advanced technology in the world for this type
of study. Currently, the outdoor laboratory
project includes 11 experimental micro-basins,
located in the states of Maranhão, Espírito
Santo, and Mato Grosso do Sul.
Barão de Santa Branca Farm (São Paulo state). Photo: Adriano Gambarini (WWF)
Gilson Fraga Vicente, farmer participating in the Rural Land Development Program (PDRT), and Gerson Peixoto, Program Consultant by the company Cedrago, in the
Community of Cachoeiro do Riacho, in Aracruz (Espírito Santo state). Photo: Márcio Schimming
3. REMOTE SENSING OF FORESTS
Suzano has become a pioneer investor in
remote sensing technologies in order to
expand sample monitoring for census, which
will guarantee higher quality and savings
of resources. In 2020, we consolidated the
monthly monitoring of forests through the
Leaf Area Index (LAI). This index accurately
measures the density of leaves on a tree and
is an important indicator of forest quality.
The periodic monitoring the LAI allows for the
detection of changes in the upper forest cover
and helps identify necessary adjustments.
We have also developed an indicator and
alerts for areas competing with weeds. This
technology allows us to prioritize critical
locations that require intervention and helps
us optimize the use of resources. In 2020, we
monitored more than 1.24 million hectares of
forests using satellite imagery, consolidating
remote and near real-time monitoring.
Triple partnership
Suzano, the WWF, and Procter & Gamble (P&G) joined efforts to establish cooperation for
the recovery of degraded environments and greater autonomy for farming families in the
state of Espírito Santo. Started in late 2020, the project began by mapping vulnerable areas
in the state that are under pressure from deforestation and reduced water availability. The
project also relied on local partnerships to gain scale. After prioritizing the areas, cooperation
advanced in 2021 with the strengthening of local crops through agroecological techniques and
transfer of knowledge to farming families in favor of conservation. With this, our company,
the WWF, and P&G will jointly promote more resilient territories, generators of financial wealth
and increasingly larger and better ecosystem services.
92 Suzano Report 2020
Among the best
in the world
Our environmental restoration model
was considered by the UN to be one of
the 15 most transformative projects in
Brazil in terms of economic, social, and
environmental sustainability worldwide.
The selection was made by specialists
in sustainable development from the
Economic Commission for Latin America
and the Caribbean (ECLAC), linked
to the UN, the Institute for Applied
Economic Research (IPEA), and the federal
government. In total, the group evaluated
131 studies, from which 66 cases were
chosen to compose a publication called
Big Push for Sustainability. Among these
studies, emphasis was given to Suzano's
Rural Land Development Program (PDRT).
ENVIRONMENTAL
GOVERNANCE
Important advances marked Suzano's
environmental governance in 2020, such
as the operational integration of the units
into a corporate operating model and
the establishment of a joint vision of the
company's environmental and social agendas.
In addition, in a company that owns 1.3 million
hectares of plantations and nearly 960,000
hectares set aside for conservation of native
forests, biodiversity is an asset with high
strategic value for business sustainability.
With this belief, in early 2021 we publicly
launched our Long-Term Biodiversity Goal and
were recognized by our stakeholders as an
actual contributor to reducing or not losing
the biodiversity of Brazilian ecosystems. This
positioning strengthens the global ambitions of
the United Nations to improve biodiversity and
legitimizes Suzano's leading role in this area.
With an up-to-date plan, the company intends
to maintain the excellence of what has been
developed in-house while expanding multisector
partnerships to gain greater relevance in Brazil.
With this, we expected to become a reference
in the preservation of our natural capital and in
other topics of greater impact for the country.
Suzano's Environmental Restoration Program
was also recognized as best practice in line with
UN's Sustainable Development Goals (SDGs) and
became part of the select publication Inspiring
Examples to Drive Change, which contains 16
success stories from around the world. The
program has one of the most efficient strategies
for biodiversity conservation and environmental
restoration in the country and, with the use
of customized techniques and methodologies,
resulted in the planting of approximately 11
million native seedlings over a period of ten years.
The seedlings were planted on more than 39,000
hectares of degraded areas in three Brazilian
biomes: Amazon, Cerrado, and Atlantic Forest.
GREATER PROTECTION FOR THE
ATLANTIC FOREST
Just as there are master plans for cities,
the Brazilian legal framework provides
master plans for biomes such as the
Atlantic Forest. In partnership with
SOS Mata Atlântica, Suzano will develop
30 municipal plans for this biome,
which is recognized as one of the most
biodiverse in the world. Thus, in the next
two years, the company's role within
the project will be mainly to share its
knowledge in environmental planning
and management with NGOs and the 30
municipal governments located in the
Atlantic Forest region.
Relationship with the planet 93
MUCURI SPRINGS PROJECT
Created in 2017, the purpose of this initiative is to
promote environmental conservation and water
security through the empowerment of families
toward more sustainable agriculture and actions to
recover degraded areas. The river originates in the
northeast of Minas Gerais, one of the poorest regions
in the state, and flows into southern Bahia, covering
a total of 446 kilometers in an area of approximately
15,400 square kilometers with a population of
537,000. We believe that the recovery of degraded
areas for greater water security is only possible if
the planning takes into account both natural and
productive areas. Therefore, Nascentes do Mucuri's
methodology is to promote the agroecological
transition in existing agricultural and livestock farming
in the region, promoting greater autonomy for
farming families and encouraging them to preserve
their natural areas and water springs.
At the end of 2019, this was a booming initiative.
However, in 2020, with the pandemic, and to protect
the health of farming families, we reduced the
intensity of work in the field.
2020 Results
76
RURAL PROPERTIES
VISITED
72
SPRINGS BEING
RECOVERED
489
PEOPLE
INVOLVED
94 Suzano Report 2020
Learn about our aggregate
results throughout the program
in the Indicators Center.
1,464
HOURS DEDICATED
TO SOCIAL AND
ENVIRONMENTAL EDUCATION
Mucuri River (Bahia state). Photo: Ricardo Teles
ENVIRONMENTAL COMMITMENTS
One of the goals assumed by Suzano for 2030
is to reduce the volume of industrial waste
sent to landfills by 70%, transforming it into
by-products. To achieve this, the company now
has important reinforcements in its industrial
operation. As an example, in 2020 we invested
approximately R$40 million in the construction
of two waste treatment and composting plants,
which will enter into operation in early 2021.
At Três Lagoas unit (Mato Grosso do Sul state),
the company will have a soil correction center in
which industrial waste is enriched and applied to
forests as nutrients, helping to balance the pH
of the soil and, consequently, the development
of plants. There is a similar system in Imperatriz
(Maranhão state). The surplus will be sold to
producers of varied crops in the region.
Regarding the use of water in industrial
operations, in 2020 projects were mapped in
order to optimize water use at each unit. These
projects should be implemented by 2030 to
achieve the Long-Term Goal: reduce the water
withdrawn by the industrial area by 15%. To
prepare this mapping, Suzano researched best
practices, water balance, and management tools,
and analyzed possible innovation projects through
the i9 Foco em Água (i9 Focus on Water) program.
I9 is an innovation program that encourages
employees to share ideas for improvements
related to specific topics. At i9 Foco em Água,
the operational team was encouraged to make
suggestions that could lead to a reduction in
water consumption at the units.
In addition, considering the expected water
reduction curve by 2030, annual targets were
defined for each industrial unit, with monthly
monitoring of results. Any deviations are dealt
with according to the management tools adopted
in the Suzano Operational Excellence model. The
results are released monthly to the employees of
the units, ensuring commitment to this topic.
Relationship with the planet 95
ENERGY EFFICIENCY
Two projects related to increased energy
exports stood out in 2020. The first,
Thor, is a tool that recommends, through
algorithms and in real time, the best
allocation of steam available for each
turbine, optimizing energy generation.
The project was jointly developed with the
Digital team for the Três Lagoas mill and
subsequently replicated in other Suzano
plants. Once fully operational, the project
should generate a gain of 7.75 MW of
average power in 2021.
The second project was developed to
increase the specific production of steam
by the boilers in the industrial units
per amount of fuel consumed, enabling
higher generation of electric energy.
The opportunities found and the gains
captured vary according to each facility,
i.e., they are specific to each unit. To learn
about the main challenges faced by the
units and the prospects for 2021, go to
the Indicators Center.
Imperatriz Unit (Maranhão state). Photo: Márcio Schimming
Energy exports
In 2020, Suzano exported, on average, 193 MWe of energy from
renewable sources to the grid, approximately 10% more than in 2019
(including 50% of the energy exported by Veracel, a joint venture
between Suzano and Stora Enso). With this, the company advances in
its goal of increasing the export of renewable energy by 50% by 2030,
contributing to the expansion of the Brazilian renewable energy mix.
Learn more in the section "Long-Term Goals."
96 Suzano Report 2020
OUR CERTIFICATIONS
Management of the company's
certifications is broken down into
forestry and industrial operations,
attesting to our responsible social and
environmental conduct through the
whole production chain.
Our forestry certifications ensure
better use of natural resources and
quality human relations, respecting the
environmental, social, and economic
aspects in the regions where we operate.
Currently, 83% of the company's planted
areas are certified*.
Our industrial certifications showcase
the use of best practices in process
management in our production units,
ensuring a balanced creation of value,
innovation, and efficiency. To learn more
about how the company manages this
topic, visit our Indicators Center.
FOREST CERTIFICATIONS:
FSC® (Forest Stewardship Council®)** - forest
management
PEFC/Cerflor (Brazilian Forest Certification
Program) - forest management
INDUSTRIAL CERTIFICATIONS:
FSC® (Forest Stewardship Council®)*** - chain of
custody
PEFC/Cerflor (Brazilian Forest Certification
Program) - chain of custody
ISO 9001 - quality
ISO 14001 - environmental management
OHSAS 18001 - health and safety
* The calculation of the percentage of certified forest areas
considers only operational areas, where eucalyptus is
planted under Suzano's management, and excludes areas for
development, areas transferred to investment funds, and
areas not considered by procurement planning for supplying
the industrial units (such as the areas located in Piauí and
Urbano Santos).
** Forest management licenses codes FSC-C110130,
FSC-C118283, FSC-C100704, FSC-C009927, and FSC-C155943.
*** Chain of custody license code FSC-C010014.
Crab-eating fox or bushdog, in Mato Grosso do Sul state. Photo: Araquém Alcântara
Relationship with the planet 97
Cocoi heron and capybaras in the pond on Barra da Moeda farm, in Mato Grosso do Sul state. Photo: Araquém Alcântara
CLIMATE CHANGE: MATURITY
AND COMMITMENT
The topic of climate change is equally complex and
strategic for Suzano. It is complex because, despite
being a major challenge for society, companies and
organizations are still studying and developing
methodologies and systems to quantify emissions
and removals in a more accurate way. It is strategic
because the company has one of the largest forest
bases in the world, including eucalyptus forests
and preserved areas, and therefore wants to be part
of the solution to the problem of climate change
and lead, among other initiatives, the creation of a
carbon market.
At Suzano, according to the Enterprise Risk
Management (ERM) methodology, climate
change is also one of our main risks. From a
forestry technology standpoint, for example,
after a comprehensive review with this focus,
a technological roadmap will be prepared with
actions to quantify the risks and impacts on
forest productivity, focusing on actions for the
development of resilient forests and repositioning
of the forest base.
Also in this regard, 2020 was marked by reinforcing
the topic of climate change after the disclosure
of the Long-Term Goals. Among the initiatives
carried out in the company for this subject to
gain even more relevance and scope, we highlight
the proximity of the Sustainability area to key
areas in the company through forums, meetings,
training sessions, and participation in workshops.
In these meetings, Suzano's professionals had the
opportunity to learn more about technical aspects,
understand the company's role in this movement,
better understand its performance, and identify
opportunities to contribute to the topic, internally
and externally, so that the subject of climate
change becomes a theme that goes beyond the
environmental area to permeate the routine of the
entire company.
Another initiative worth mentioning is the
creation of a working group (WG) formed by
representatives from the areas of Sustainability,
Corporate Relations, New Business, Finance, and
Technology & Innovation to discuss Suzano's role
in this topic, internally and externally. Depending
on the agenda, other areas are also invited to
participate in the discussions and action fronts.
98 Suzano Report 2020
One of the great opportunities being analyzed
by this WG is the company's participation in the
voluntary carbon market, offering credits that
provide benefits beyond removal of greenhouse
gases (GHGs) to other organizations that have
commitments to reduce their emissions. We want
to share our goals and the gains already achieved
with companies that are also committed to
developing a less carbon-intensive economy.
In line with Suzano's objective of being recognized
as a leader and agent of transformation in
the joint development of innovative and
sustainable solutions, the CEO and the Industrial,
Sustainability, and Corporate Relations Directors
now have on their list of goals (linked to their
variable pay) the ones related to the company's
climate change strategy. This will be cascaded,
in 2021, across the organizational structure,
reaching, for example, the executive areas of Risks
and New Businesses and Forest Inventory.
Another important advance is the development
of a Multidisciplinary Climate Change Strategy,
which is still being prepared. This strategy takes
into account the recommendations of the Task
Force on Climate-related Financial Disclosure
(TCFD) as well as our role in the face of climate
mitigation and adaptation needs, future
regulatory scenarios, and our commitment to
this topic.
We act to create a business model that is resilient
(working with adaptation, which involves practical
responses to current and potential impacts of
temperature change, aiming to minimize any
losses and damages) and catalyzes opportunities
(incorporating carbon as a critical variable in
our operations). The goal of this model is the
creation of shared value, since we work to offer
real solutions, focused on the transition to
a low-carbon economy. Our goals, which are
consistent with scientific precepts, have been
structured in a more substantive way than the
goals of the Paris Agreement.
Incorporate climate change into our business model, driving our vision and the
transition to a low-carbon economy
Create a business
model that is resilient
(adaptation) and an
opportunity catalyst
Incorporate Carbon as
an aspect in operations
(risks and opportunities)
Create shared value
based on solutions
for the transition to a
low-carbon economy
Our goals, which are science based, have also been more substantively structured compared to
the goals of the Paris Agreement.
Relationship with the planet 99
2020 Suzano worked on a data collection system
for the company's emissions calculations, a
project that involved around 170 people.
In addition to simplifying the day-to-day
collection of information, the goal is to have
data management that contributes to a critical
analysis of emissions and, thereby, generate more
robust indicators for the areas to monitor and
adjust their strategies. Thus, in a global view, it is
expected that each part of the business involved
can contribute to the achievement of the goals.
If on one side we manage carbon emissions, on
the other we manage carbon removal. In this case,
another company initiative resulted in an update
in the model for calculating carbon sequestration
(which considers the characteristics and indicators
of Suzano's eucalyptus forests and the
classifications of native forest areas) and revised
removal factors applied to the calculations. The
most commonly known data and indicators
for removal per hectare do not include the
specificities of productivity in Brazilian soil or
factors of tropical forests, whose sequestration
volumes are higher than those of temperate
forests. The removal calculation methodology
was verified by a third party, and its results can
be seen in the Indicators Center.
Burrowing owl in Mato Grosso do Sul state. Photo: Araquém Alcântara
INTERNAL CHALLENGES
Performance indicators related to GHG emissions
are well established. A major challenge, however,
is to internalize the entire methodology in
the company, so that the areas not only take
ownership of the measurement systems
and data analysis, but also understand the
dimension of the achievement of the goals by
2030. Given the relevance of this aspect, in
ADVANCES IN WATER MANAGEMENT
IN 2021
Suzano has been investing in a portfolio of projects
for reducing water consumption in all industrial
units. This year, we will prioritize engineering,
technical and economic feasibility studies for each
initiative, considering the strategic importance for
reaching the Long-Term Goal.
100 Suzano Report 2020
Forwarder machine stacking eucalyptus logs after harvest, in Mato Grosso do Sul state. Photo: Araquém Alcântara
See the results of our Greenhouse
Gas Inventory - base 2020 in our
Indicators Center.
Our partnerships
Suzano has collaborated in different forums. In Brazil, it maintains partnerships with the
Brazilian Business Council for Sustainable Development (CEBDS), the Global Compact, the
Brazil Climate Forestry and Agriculture Coalition, and the Brazilian Tree Association (IBÁ).
The company also integrates a WG of the GHG Protocol, which has been working to propose
new methodologies for calculating emissions and removals related to land use in order to
monitor and contribute to the development of this global reference.
In 2020, Suzano also joined the Climate Action 100+. A global initiative by investors who
represent more than US$52 trillion combined assets under management and express an
interest in engaging companies in building sound climate change governance, including an
action plan towards carbon neutrality by 2050 and transparency of indicators related to
this topic.
Prêmios e reconhecimentos 101
Laila dos Santos Carneiro,
participant of the Cerâmica
Vargem do Tanque Project, in Cunha
(São Paulo state).
Photo: Márcio Schimming
102 Suzano Report 2020
SECTION | 13
External
READER
Suzano invited an external reader
to analyze the content of this
publication and express his opinions
on the quality and transparency
of the information. Check the
statement of Tasso Azevedo.
External reader 103
TASSO AZEVEDO
Forest engineer, consultant, advisor, and social
entrepreneur in sustainability, forest and climate.
Coordinator of the Greenhouse Gas Emissions Estimation
System of the Climate Observatory (SEEG) and of
the Annual Mapping of Land Cover and Use in Brazil
(MapBiomas), columnist for O Globo newspaper. Visiting
scholar at the Brasil Lab at Princeton University. He was
General Director of the Brazilian Forest Service, Executive
Director of Imaflora and curator of Blog do Clima. He
received the Bright Award from Stanford University.
104 Suzano Report 2020
Another highlight is the goal to replace 10
million tons of petroleum-based plastics with
substitutes from renewable sources by 2030.
This volume is equal to almost one year of the
current production of plastics in Brazil. The
substitution of oil and gas products is one
of the great challenges in transitioning to a
low-carbon economy. The initiative to develop
bio-oil to replace oil by leveraging the existing
refinery infrastructure is especially interesting.
Also worthy of note is the disclosure policy
on the commitment to zero deforestation.
The company published a report containing
an analysis of all the deforestation events
identified in its areas by independent analyses
(MapBiomas and SOS Mata Atlântica) and
describing the actions taken in relation to each
event. All cases identified are the result of
squatting in the states of Bahia, Espírito Santo
(6 ha), and Maranhão (114 ha). This level of
transparency and clarity is a benchmark for the
entire Brazilian rural sector.
T he year 2020 was an immense challenge
for everyone: governments, companies,
and civil society. The COVID-19
pandemic has imposed a profound and radical
change in how organizations plan and operate.
In a year with a massive loss of human lives,
Suzano fulfilled the role that is expected of
the largest Brazilian agribusiness company by
acting to adapt to the conditions imposed
by the pandemic while showing solidarity and
taking action to support the most vulnerable
groups in society.
Nevertheless, it is commendable that even in
the midst of this turmoil, the company has
maintained its long-term vision by launching
ambitious goals regarding the climate agenda,
the conservation of water resources, and the
expansion of diversity. An important highlight
is the net removal of 40 million tons of CO2 by
2030, including direct and indirect emissions
(Scopes 1, 2, and 3), which goes far beyond the
increasingly common commitments to zero
emissions by the middle of the century.
If this commitment inspires the entire
agricultural sector, it is possible that Brazil
will no longer be among the largest emitters
of greenhouse gases and will become a net
contributor to removals long before 2050.
External reader 105
SECTION | 14
GRI 102-56
ASSURANCE STATEMENT
BUREAU VERITAS
INTRODUCTION
Bureau Veritas Certification Brazil (‘Bureau
Veritas’) was engaged by Suzano S.A. (‘Suzano’) to
conduct an independent assurance of its Annual
Report for the year 2020 (hereinafter referred to
as the Report).
This assessment was conducted by a
multidisciplinary staff with expertise in
non-financial data.
SCOPE OF WORK
The scope of this verification encompassed:
1. The Standards1 of the Global Reporting
InitiativeTMGRI for Sustainability Reports, for
the period from 1 January to 31 December
2020;
2. The Verification of Long-Term Goals,
3. Verification of the 2018 and 2019 Long-Term
Goal data of (1) lifting 200 thousand people
over the poverty threshold and (2) the
data obtained in 2019 of the participation
(percentage) of women in leadership
positions within the company, related to the
Diversity & Inclusion Long-Term Goal.
SUZANO´S AND BUREAU VERITAS
RESPONSIBILITIES
The collection, calculation and presentation of
the data published in the report are Suzano’s
management sole responsibility. Bureau Veritas is
responsible for providing an independent opinion
to the Stakeholders, pursuant to the scope of
work defined in this declaration.
METHODOLOGY
The Assurance covered the following activities:
regarding the correct parameter settings
of the associated indicators and analysis
regarding the accuracy of the data obtained;
1. Interviews with the personnel responsible
for material issues and involved in the Report
content;
1. Materiality, Stakeholder Inclusiveness, Sustainability Context, Completeness, Balance, Comparability, Accuracy, Periodicity, Clarity, and Reliability
106 Suzano Report 2020
2. Remote interviews on corporate processes
(Central Administration office located in
São Paulo – SP) and processes regarding the
following operational sites: ; Mucuri - BA;
Suzano – SP and Três Lagoas – MS;
3. Review of documentary evidence provided
by Suzano in relation to the reporting period
(2020);
4. Evaluation of the systems used for data
compilation;
5. Analysis of Suzano’s stakeholder engagement
activities;
6. Evaluation of the method used to define
material topics included in the Report, taking
into account the sustainability context and the
scope of the information published.
The level of verification adopted was Limited,
according to the requirements of the ISAE 3000
Standard2, which were incorporated to the
internal assessment protocols of Bureau Veritas,
except for the data verification of the poverty
threshold Goal and data on Diversity & Inclusion,
both mentioned in item 3 of the Scope of Work.
For this assessment we use the Limited Scope,
which brings certain restrictions regarding the
accuracy of the data.
LIMITATIONS AND EXCLUSIONS
Excluded from the scope of this work was any
assessment of information related to:
• Activities outside the defined assessment
period;
• Statements of position (expressions of opinion,
beliefs, goals, or future intentions) on the part
of Suzano;
• Economic and financial accuracy of information
contained in this Report which has been
taken from financial statements verified by
independent financial auditors.
The following limitations apply for this assurance
engagement:
• The Accuracy and Reliability of data were
assessed on sampling basis, related to material
aspects published within the Report;
• The specific data and indicators of the
Task Force on Climate-Related Financial
Disclosure (TCFD) and Sustainability Accouting
Standards Board (SASB) were not subject to
our verification, except when these data and
indicators were common to those of the GRI;
• Economic and financial data presented within
the report were assessed against the GRI
reporting principle of Balance and Completeness;
• Suzano's Greenhouse Gas (GHG) Emissions
Inventory was verified by us in a distinct process
in accordance with the criteria of ISO 14.064-1
/ 07 and GHG Protocol. A Verification statement
was issued exclusively regarding the verification
of the GHG inventory.
2. International Standard on Assurance Engagements 3000 – Assurance Engagements other than Audits or Reviews of Historical Financial Information
Letter from the auditor 107
TECHNICAL OPINION
• Suzano's Report consists of a complete edition
and an Indicators Center, both available on the
company's website. The scope of our verification
covered the 2020 data and indicators on the
material topics presented in these publications,
with the exception of the specific indicators of
TCFD and SASB;
• The Indicators Center presents detailed
information of the main operational impacts
of Suzano's activities (GRI indicator 413-2), on
surrounding communities, using data available
in the SISPART system. These social impact
performance data meets a recommendation
from Bureau Veritas from the previous
Verification cycle;
• The Report is based on 10 material topics
defined in a materiality assessment carried out
in 2019. In our understanding, the topics remain
reflecting the impacts of Suzano's activities in a
balanced way;
• During our Verification we found that Suzano's
Long-Term Goals were structured in an objective
and challenging way;
• We verified the results obtained in 2018 and
2019 in relation to the Goal of lifting 200
thousand people over the poverty threshold by
2030. We found a reliable system for obtaining
the income data of the participants of projects
regarding income generation, supported by
Suzano. However, we noted that the company
is still looking for a consolidated procedure for
monitoring the poverty threshold target, with
data analysis capacity compatible with the
target scale;
• We verified the results obtained in 2019 linked
to the Diversity and Inclusion target, specifically
related to the increase in the participation
(percentage) of women in leadership positions
within the company. We found a robust
calculation system with accurate data;
• Suzano systematized the processes for
collecting and consolidating performance data
for social projects supported by the company,
adherent to a recommendation from the
previous Verification cycle;
• Regarding the GRI 403-7 Indicator (Prevention
and mitigation of occupational health and
safety impacts directly linked by business
relationships), we evidenced that Suzano
presents the health and safety actions and tools
used in the company's processes and not those
related to the products and services;
• Related to the proportion of spending on local
suppliers (GRI 204-1 indicator), although we
have seen progress in internal procurement
practices, we noted that Suzano is still looking
for effective procedures to improve its
performance in this field;
• Regarding the material topic “Forest
Management”, we noted progress in the
definition of biodiversity strategies and a
promise to establish, in 2021, a long-term
commitment to biodiversity conservation;
• We evidenced appropriate actions in relation to
the recommendations issued in our previous
Verification Statement. In the actual Statement
we launch new challenges for the company;
•
It is our understanding that sufficient indicators
have been reported, to achieve the Core option
of the GRI Standard for Sustainability Reports.
108 Suzano Report 2020
RECOMMENDATIONS
• Define strategic actions to increase the
proportion of spending on local suppliers, in
accordance with GRI indicator 204-1;
• Obtain data and information on Prevention and
mitigation of occupational health and safety
impacts directly linked by business relationships
(related to products and services);
• Regarding the Goal of lifting 200 thousand
people over the poverty threshold: Implement
a consolidated procedure for monitoring the
poverty threshold target, with data analysis
capacity compatible with the target scale.
CONCLUSION
As a result of our assurance we concluded that:
• The information presented in the Report is
balanced, consistent and reliable;
• Suzano established appropriate systems for
the collection, aggregation and analysis of
quantitative and qualitative data used in the
Report;
• The Report adheres to the Principles for defining
report content and quality of the GRI Standards
and meet its Core level;
• The Long-Term Goals were established in a
structured and challenging way.
DECLARATION OF INDEPENDENCE
AND IMPARTIALITY
Bureau Veritas Certification is an independent
professional services firm specializing in
Quality, Health, Safety, Socialand Environmental
Management, with more than 185 years’ experience
in independent assessment.
Bureau Veritas has a quality management system
that is certified by a third party, according to
which policies and documented procedures
are maintained for the compliance with ethic,
professional and legal requirements.
The assessment team has no links with Suzano and
the assessment is performed independently.
Bureau Veritas implemented and follows a Code
of Ethics throughout its business, in order to
assure that its staff preserve high ethical, integrity,
objectivity, confidentiality and competence/
professional attitude standards in the performance
of their activities. At the end of the assessment, a
detailed report was drawn up, ensuring traceability
of the process. This Report is kept as a Bureau
Veritas management system record.
CONTACT
Bureau Veritas Certification is available for further
clarification on www.bureauveritascertification.
com.br/faleconosco.asp or by telephone (55 11)
2655-9000.
São Paulo, Brazil, April 2021.
Alexander Vervuurt
Lead Auditor; Assurance Sustainability Reports (ASR)
Bureau Veritas Certification – Brazil
Letter from the auditor 109
SECTION | 15
GRI AND SASB
Content Index
GRI 102-55
110 Suzano Report 2020
GRI Standards Disclosure title
GRI 101: Foundation 2016
GRI 102: General Disclosures 2016
PDF Page/Link to the Indicators Center
or Direct disclosure
Omission
Principles
of the Global
Compact
SDG
102-1 Name of the organization
8
102-2
Activities, brands,
products, and services
Indicators Center
102-3 Location of headquarters
Headquarters:
Av. Professor Magalhães Neto, 1752
– 10th floor, rooms 1010 and 1011
Salvador - BA - Brazil
Zip Code: 41.810-012
Central Office:
Avenida Brigadeiro Faria Lima, 1355
– 8th floor São Paulo - SP - Brazil
Zip Code: 01.452-919
102-4 Location of operations
14
102-5
Nature of ownership and
legal form
Suzano S.A. is a publicly traded, forest-based
company controlled by Suzano Holding, with
shares traded on B3 (Brasil, Bolsa, Balcão)
and NYSE (New York Stock Index).
102-6 Markets served
Indicators Center
102-7 Scale of the organization
Indicators Center
102-8
Information on employees
and other workers
Indicators Center
102-9 Supply chain
Indicators Center
GRI 102:
General
Disclosures
2016s
102-10
Significant changes to the
organization and its supply
chain
52
102-11
Precautionary Principle or
approach
Indicators Center
102-12 External initiatives
76, Indicators Center
102-13
Membership of
associations
Indicators Center
102-14
Statement from senior
decision-maker
4
102-15
Key impacts, risks, and
opportunities
Indicators Center
102-16
Values, principles,
standards, and norms of
behavior
32, Indicators Center
102-17
Mechanisms for advice and
concerns about ethics
68, Indicators Center
102-18 Governance structure
66, Indicators Center
102-22
Composition of the highest
governance body and its
committees
Indicators Center
102-23
Chair of the highest
governance body
Indicators Center
GRI ans SASB Content Index 111
GRI Standards Disclosure title
PDF Page/Link to the Indicators Center
or Direct disclosure
Omission
Principles
of the Global
Compact
SDG
GRI 102: General Disclosures 2016 (cont.)
8
8
8
8, 10
8, 10
102-24
Selection criteria and
nomination processes for
the highest governance
body and its committees
Indicators Center
102-25 Conflicts of Interest
Indicators Center
102-35 Remuneration policies
Indicators Center
102-36
Process for determining
remuneration
Indicators Center
102-37
Stakeholders’ involvement
in remuneration
Indicators Center
102-38
Annual total compensation
ratio
Indicators Center
102-39
Percentage increase in
annual total compensation
ratio
Indicators Center
102-40 List of stakeholder groups
14, Indicators Center
102-41
Collective bargaining
agreements
Indicators Center
102-42
Identifying and selecting
stakeholders
14, Indicators Center
General
Disclosures
2016s
102-43
Approach to stakeholder
engagement
Indicators Center
102-44
Key topics and concerns
raised
Indicators Center
102-45
Entities included in the
organization’s consolidated
financial statements or
equivalent documents
8
102-46
Defining report content
and topic Boundaries
8, Indicators Center
102-47 List of material topics
8, Indicators Center
102-48
Restatements of
information
Restatements of information, if available,
are presented throughout the Report and
the Indicators Center.
102-49 Changes in reporting
During the reporting period, there were no
significant changes in the limit and scope of
material issues.
102-50 Reporting period
January 1, 2020 to December 31, 2020.
102-51
Data do relatório mais
recente
2019 Annual Report, covering the period
from January to December of the reference
year
102-52
Periodicidade dos ciclos de
relato
Anual.
112 Suzano Report 2020
GRI Standards Disclosure title
PDF Page/Link to the Indicators Center
or Direct disclosure
Omission
Principles
of the Global
Compact
SDG
GRI 102: General Disclosures 2016 (cont.)
GRI 102:
General
Disclosures
2016
102-53
Contact point for
questions regarding the
report
102-54
Claims of reporting in
accordance with the GRI
Standards
8
8
102-55 GRI content index
102-56 External assurance
110
8, 106
Material topic: Water
103-1
Explanation of the material
topic and its Boundary
GRI 103:
Management
Approach 2016
103-2
The management approach
and its components
17, 88, Indicators Center
103-3
Evaluation of the
management approach
303-1
Interactions with water as
a shared resource
Indicators Center
303-3 Water withdrawal
Indicators Center
303-4 Water discharge
Indicators Center
303-5 Water consumption
Indicators Center
GRI 303: Water
and effluents
2018
Material topic: Value Chain (suppliers and customers)
103-1
Explanation of the material
topic and its Boundary
103-2
The management approach
and its components
17, 44, 45, 48, 49, Indicators Center
103-3
Evaluation of the
management approach
204-1
Proportion of spending on
local suppliers
Indicators Center
GRI 103:
Management
Approach 2016
GRI 204:
Procurement
Practices 2016
GRI 308:
Supplier
Environmental
Assessment
2016
GRI 414:
Supplier Social
Assessment
2016
308-1
New suppliers that
were screened using
environmental criteria
Indicators Center
7, 8, 9
12
308-2
Negative environmental
impacts in the supply chain
and actions taken
Indicators Center
414-1
New suppliers that were
screened using social
criteria
414-2
Negative social impacts
in the supply chain and
actions taken
Indicators Center
Indicators Center
7, 8, 9
12
8, 10,
16
8, 12
GRI ans SASB Content Index 113
8, 12
8, 9
8, 12
8, 9
8, 9
8, 9
8, 12
8, 12
8, 12
8
8, 12
GRI Standards Disclosure title
PDF Page/Link to the Indicators Center
or Direct disclosure
Omission
Principles
of the Global
Compact
SDG
Material topic: Human Capital
103-1
Explanation of the material
topic and its Boundary
GRI 103:
Management
Approach 2016
103-2
The management approach
and its components
17, 27, 38, Indicators Center
103-3
Evaluation of the
management approach
202-1
Ratios of standard entry
level wage by gender
compared to local
minimum wage
202-2
Proportion of senior
management hired from
the local community
Indicators Center
Indicators Center
GRI 202: Market
Presence 2016
401-1
New employee hires and
employee turnover
Indicators Center
6
GRI 401:
Employment
2016
401-2
Benefits provided to
full-time employees
that are not provided to
temporary or part-time
employees
Indicators Center
3, 5,
8, 10,
16
8
8
8
8
401-3 Parental leave
Indicators Center
6
5, 8
GRI 402: Labor/
Management
Relations 2016
402-1
Minimum notice periods
regarding operational
changes
Indicators Center
GRI 403:
Occupational
Health and
Safety 2016
403-1
Occupational health and
safety management
system
Indicators Center
403-4
403-7
Worker participation,
consultation, and
communication on
occupational health and
safety
Prevention and mitigation
of occupational health
and safety impacts
directly linked by business
relationships
403-8
Workers covered by an
occupational health and
safety management
system
Indicators Center
Indicators Center
Indicators Center
403-9 Work-related injuries
Indicators Center
403-10 Work-related ill health
Indicators Center
8
3, 8
3, 8,
16
3, 8
3, 8
3, 8
3, 8
114 Suzano Report 2020
GRI Standards Disclosure title
PDF Page/Link to the Indicators Center
or Direct disclosure
Omission
Material topic: Human Capital (cont.)
404-1
Average hours of training
per year per employee
Indicators Center
Principles
of the Global
Compact
SDG
1, 6
8
GRI 404:
Training and
Education 2016
404-3
Percentage of employees
receiving regular
performance and career
development reviews
Indicators Center
1, 6
5, 8
GRI 405:
Diversity
and Equal
Opportunity
2016
405-1
Diversity of governance
bodies and employees
Indicators Center
405-2
Ratio of basic salary and
remuneration of women
to men
Indicators Center
GRI 406: Non-
discrimination
2016
406-1
Incidents of discrimination
and corrective actions
taken
Indicators Center
GRI 407:
Freedom of
Association
and Collective
Bargaining 2016
407-1
Operations and suppliers
where the right to
freedom of association and
collective bargaining may
be at risk
Indicators Center
GRI 408: Child
Labor 2016
408-1
Operations and suppliers
with significant risk of
incidents of child labor
Indicators Center
5, 8,
10
5, 8,
10
1, 2, 3,
4, 5, 6
5, 8,
10, 16
1, 2, 3,
4, 5, 6
8, 16
1, 2, 6
8, 16
GRI 409: Forced
or Compulsory
Labor 2016
409-1
Operations and suppliers
at significant risk for
incidents of forced or
compulsory labor
Indicators Center
1, 2, 3
8, 16
GRI 410:
Security
Practices 2016
410-1
Security personnel trained
in human rights policies or
procedures
Indicators Center
GRI 412:
Human Rights
Assessment
2016
412-2
Employee training on
human rights policies or
procedures
Indicators Center
1, 2, 5
8, 16
1, 2, 3,
4, 5, 6
8, 16
GRI ans SASB Content Index 115
GRI Standards Disclosure title
PDF Page/Link to the Indicators Center
or Direct disclosure
Omission
Principles
of the Global
Compact
SDG
Material topic: Social Development
103-1
Explanation of the material
topic and its Boundary
GRI 103:
Management
Approach 2016
103-2
The management approach
and its components
74, 80, 82, Indicators Center
103-3
Evaluation of the
management approach
GRI 203:
Indirect
Economic
Impacts 2016
203-1
Infrastructure investments
and services supported
Indicators Center
203-2
Significant indirect
economic impacts
Indicators Center
1, 2, 4,
8, 10,
11, 16
1, 4,
9, 11,
12
2, 4, 8,
9, 10,
11, 12
GRI 411: Rights
of Indigenous
and Traditional
Peoples 2016
411-1
Incidents of violations
involving rights of
indigenous peoples
Indicators Center
1, 2, 4
10, 16
1, 2, 4,
10, 11,
16
8, 16
8, 16
10
16
10
16
Indicators Center
10
16
Indicators Center
1, 5
16
GRI 413: Local
communities
2016
413-1
Operations with local
community engagement,
impact assessments, and
development programs
413-2
Operations with significant
actual and potential
negative impacts on local
communities
Indicators Center
Indicators Center
Material topic: Ethics, Governance, and Transparency
103-1
Explanation of the material
topic and its Boundary
GRI 103:
Management
Approach 2016
103-2
The management approach
and its components
64, Indicators Center
103-3
Evaluation of the
management approach
205-1
Operations assessed for
risks related to corruption
Indicators Center
Indicators Center
GRI 205: Anti-
corruption
2016
205-2
Communication and
training about anti-
corruption policies and
procedures
205-3
Confirmed incidents of
corruption and actions
taken
GRI 206: Anti-
competitive
Behavior 2016
206-1
Legal actions for anti-
competitive behavior,
antitrust, and monopoly
practices
116 Suzano Report 2020
Principles
of the Global
Compact
SDG
16
16
7, 8, 9
16
GRI Standards Disclosure title
PDF Page/Link to the Indicators Center
or Direct disclosure
Omission
Material topic: Ethics, Governance, and Transparency (cont.)
207-1 Approach to tax
Indicators Center
207-2
Tax governance, control
and risk management
Indicators Center
307-1
Non-compliance with
environmental laws and
regulations
Indicators Center
GRI 207: Tax
2019
GRI 307:
Environmental
Compliance
2016
GRI 415: Public
Policies 2016
GRI 419:
Socioeconomic
Compliance
2016
415-1 Political contributions
Indicators Center
10
8, 9
419-1
Non-compliance with laws
and regulations in the
social and economic area
Indicators Center
10
8, 16
Material topic: Operational Excellence and Eco-efficiency
103-1
Explanation of the material
topic and its Boundary
GRI 103:
Management
Approach 2016
103-2
The management approach
and its components
17, 88, Indicators Center
103-3
Evaluation of the
management approach
306-3 Waste generated
Indicators Center
GRI 306:
Effluents and
Waste 2016
306-4
Waste diverted from
disposal
Indicators Center
306-5 Waste directed to disposal
Indicators Center
Material topic: Financial Management
103-1
Explanation of the material
topic and its Boundary
GRI 103:
Management
Approach 2016
103-2
The management approach
and its components
64, 69, Indicators Center
103-3
Evaluation of the
management approach
GRI 201:
Economic
Performance
2016
201-1
Direct economic value
generated and distributed
Indicators Center
201-2
Financial implications
and other risks and
opportunities due to
climate change
Indicators Center
7, 8, 9
7, 8, 9
7, 8, 9
3, 7,
9, 12,
13
3, 6,
12
3, 6,
12
3, 6,
12
16
16
13
GRI ans SASB Content Index 117
GRI Standards Disclosure title
PDF Page/Link to the Indicators Center
or Direct disclosure
Omission
Principles
of the Global
Compact
SDG
Material topic: Innovation and Technology
103-1
Explanation of the material
topic and its Boundary
GRI 103:
Management
Approach 2016
103-2
The management approach
and its components
48, 56, Indicators Center
103-3
Evaluation of the
management approach
Material topic: Forest Management
103-1
Explanation of the material
topic and its Boundary
GRI 103:
Management
Approach 2016
103-2
The management approach
and its components
88, Indicators Center
9, 15,
16
6, 8,
12, 13,
15
103-3
Evaluation of the
management approach
304-1
Operational sites owned,
leased, managed in, or
adjacent to, protected
areas and areas of high
biodiversity value outside
protected areas
Indicators Center
8, 9
12, 15
GRI 304:
Biodiversity
2016
304-2
Significant impacts of
activities, products, and
services on biodiversity
Indicators Center
304-3
Habitats protected or
restored
Indicators Center
304-4
IUCN Red List species and
national conservation
list species with habitats
in areas affected by
operations
Indicators Center
8, 9
12, 15
8, 9
6, 12,
13, 15
8, 9
6, 12,
14, 15
118 Suzano Report 2020
GRI Standards Disclosure title
PDF Page/Link to the Indicators Center
or Direct disclosure
Omission
Principles
of the Global
Compact
SDG
Material topic: Climate Change
103-1
Explanation of the material
topic and its Boundary
GRI 103:
Management
Approach 2016
103-2
The management approach
and its components
77, Indicators Center
103-3
Evaluation of the
management approach
GRI 302: Energy
2016
302-1
Energy consumption
within the organization
Indicators Center
302-2
Energy consumption
outside of the organization
Indicators Center
305-1
Direct (Scope 1) GHG
emissions
Indicators Center
305-2
Energy indirect (Scope 2)
GHG emissions
Indicators Center
GRI 305:
Emissions 2016
305-3
Other indirect (Scope 3)
GHG emissions
Indicators Center
305-4 GHG emissions intensity
Indicators Center
305-7
Nitrogen oxides (NOx),
sulfur oxides (SOx), and
other significant air
emissions
Indicators Center
3, 9,
12, 13
7, 12,
13
7, 8,
12, 13
7, 8, 9
12, 13
7, 8, 9
12, 13
7, 8, 9
12, 13
7, 8, 9
12, 13
7, 8, 9
3, 9,
12, 13
GRI ans SASB Content Index 119
SASB INDEX
FORESTRY MANAGEMENT
Sustainability Disclosure Topics & Accounting Metrics
Topic
Code
Accounting metric
Category
RR-FM-160a.1
Area of forestland certified to a third-
party forest management standard,
percentage certified to each standard
Quantitative
Unit of
measure
Acres (ac),
Percentage
(%)
PDF Page/Link
to the Indicators
Center or Direct
disclosure
Indicators Center
Ecosystem
Services &
Impacts
RR-FM-160a.2
Area of forestland with protected
conservation status
RR-FM-160a.3
Area of forestland in endangered
species habitat
Quantitative
Acres (ac)
Indicators Center
Quantitative
Acres (ac)
Indicators Center
RR-FM-160a.4
Description of approach to optimizing
opportunities from ecosystem services
provided by forestlands
Discussion and
Analysis
n/a
Indicators Center
RR-FM-210a.1
Area of forestland in indigenous land
Quantitative
Acres (ac)
Indicators Center
Rights of
Indigenous
Peoples
RR-FM-210a.2
Climate Changen
Adaptation
RR-FM-450a.1
Description of engagement processes
and due diligence practices with
respect to human rights, indigenous
rights, and the local community
Discussion and
Analysis
Description of strategy to manage
opportunities for and risks to forest
management and timber production
presented by climate change
Discussion and
Analysis
n/a
Indicators Center
n/a
Indicators Center
FORESTRY MANAGEMENT
Activity Metrics
Code
Activity metric
Category
Unit of measure
PDF Page/Link to the Indicators
Center or Direct disclosure
RR-FM-000.A
RR-FM-000.B
RR-FM-000.C
Area of forestland
owned, leased,
and/or managed
by the entity
Aggregate
standing timber
inventory
Timber harvest
volume
Quantitative
Acres (ac)
Indicators Center
Quantitative
Cubic meters (m3)
Indicators Center
Quantitative
Cubic meters (m3)
Indicators Center
120 Suzano Report 2020
PULP & PAPER PRODUCTS
Sustainability Disclosure Topics & Accounting Metrics
Topic
Code
Accounting metric
Category
RR-PP-110a.1
Gross global Scope 1 emissions
Quantitative
Unit of
measure
PDF Page/Link
to the Indicators
Center or Direct
disclosure
Metric tons
(t) CO -e
Indicators Center
Greenhouse
Gas Emissions
RR-PP-110a.2
Air Quality
RR-PP-120a.1
Energy
Management
RR-PP-130a.1
Discussion of long-term and short-
term strategy or plan to manage
Scope 1 emissions, emissions
reduction targets, and an analysis of
performance against those targets
Air emissions of the following
pollutants: (1) NOx (excluding
N2O), (2) SO2, (3) volatile organic
compounds (VOCs), (4) particulate
matter (PM), and (5) hazardous air
pollutants (HAPs)
(1) Total energy consumed,
(2) percentage grid electricity,
(3) percentage from biomass,
(4) percentage from other renewable
energy
Quantitative
Water
Management
RR-PP-140a.1
(1) Total water withdrawn,
(2) total water consumed, percentage
of each in regions with High or
Extremely High Baseline Water Stress
Quantitative
RR-PP-140a.2
Description of water management
risks and discussion of strategies and
practices to mitigate those risks
Discussion and
Analysis
Discussion and
Analysis
n/a
Indicators Center
Quantitative
Metric tons
(t)
Indicators Center
Gigajoules
(GJ),
Percentage
(%)
"Thousand
cubic meters
(m3),
Percentage
(%)"
Indicators Center
Indicators Center
n/a
Indicators Center
RR-PP-430a.1
Supply Chain
Management
Percentage of wood fiber sourced
from (1) third-party certified
forestlands and percentage to each
standard and (2) meeting other fiber
sourcing standards and percentage
to each standard
Quantitative
Percentage
(%) by
weight
Indicators Center
RR-PP-430a.2
Amount of recycled and recovered
fiber procured
Quantitative
Metric tons
(t)
Indicators Center
PULP & PAPER PRODUCTS
Activity Metrics
Code
Activity metric
Category
Unit of measure
PDF Page/Link to the Indicators
Center or Direct disclosure
RR-PP-000.A
Pulp production
Quantitative
RR-PP-000.B
Paper production Quantitative
Air-dried metric tons
(t)
Air-dried metric tons
(t)
Indicators Center
Indicators Center
GRI ans SASB Content Index 121
CREDITS
EDITING
Cristiano Oliveira
Guilherme Miranda
Isabel Masagão
Livia Delort
Manuela Forbes
Marcela Porto
Marcelo Bottin
Maria Augusta Bottino
Raquel Botinha
COORDINATION, TEXTS
AND EDITORIAL DESIGN
Quintal 22
INDICATORS
CONSULTING
Avesso Sustentabilidade
MANAGEMENT
Botinha Comunicação
GRAPHIC DESIGN AND
LAYOUT
Adesign
PHOTOGRAPHY
Adriano Gambarini (WWF Brasil)
Araquém Alcântara
Suzano Image Bank
Fotocontexto
Márcio Schimming
Ricardo Teles
Sérgio Zacchi
ENGLISH VERSION
Gotcha! Idiomas
CONTACT
For questions and suggestions, contact us by email
relatoriosuzano@suzano.com.br
COVER PHOTO:
Aline Conceição dos Santos, Nursery
Assistant, Mucuri Unit (Bahia state).
Photo: Márcio Schimming
Seedling planting, Jacareí (São Paulo state).
Photo: Márcio Schimming
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