Suzano S.A.
Annual Report 2021

Plain-text annual report

2021 ANNUAL REPORT RENEW Table of Contents 01. Messages .................................4 08. The Planet .........................100 02. About the Annual Report ......8 09. Government and Organized Civil Society ......................124 03. Suzano’s Open Letter on Innovability .................. 16 10. Community ........................132 04. Suzano .................................. 18 11. External Readers .............146 05. Employees ............................ 52 06. Customers ............................ 70 07. Suppliers ............................... 86 12. Independent Assurance Statement ..........................150 13. GRI, SASB, TCFD and WEF Content Index ..................156 Table of Contents 3 RENEW 2 Suzano’s 2021 Annual Report Photo: Sérgio Zacchi. E G N A H C S Y A W L A o t e g a r u o C s r o t c e r i D f o d r a o B e h t f o n a m r i a h C 4 1 - 2 0 1 I R G S E G A S S E M . 1 0 G lobal transformation has never been faster than in recent years—it is accelerating exponentially and requires people and public and private institutions to act fast and have clarity about the part they want to play in this intense process. More and more, Suzano is positioning itself in the group that wants to participate and lead the construction of a positive world for people and for the planet. To do that, the company decided to put innovation at the service of sustainability. Innovability is the natural calling of our company, a business that is inspired by the trees we plant and driven by solutions from renewable sources. Suzano pursues innovability in everything it does. In 2021, the company took important steps in this direction, for example, through its strategies for the development of bio-oil, an alternative to fossil fuels made from eucalyptus biomass, and through the joint venture with Spinnova to produce textile fiber made from pulp. Innovability is also manifested in the way the company outlines its investment strategies, such as in the Cerrado Project, which is on its way to becoming a benchmark in ecodesign and local development, and in the fact that it continues to be one of the largest global issuers of sustainability-linked bonds. While facing one of the most complex and urgent global problems we have ever faced, the climate crisis, Suzano made a public commitment to be part of the solution and took a stand at COP26 in favor of incorporating carbon costs into the global economy. Also, as global leaders in the pulp Innovability is the natural calling of our company – a business inspired by the trees we plant and driven by solutions created from renewable resources. and paper sector, we understand that we can help Brazil take a leading position on the world stage. Therefore, we strive to be more vocal and organize and engage more and more institutions and people to stand behind this agenda. In the social arena, despite the challenges brought by the pandemic, we continue to expand our social performance through initiatives to create work and generate income, while developing strategies and metrics to address the issue of poverty in a systemic and structured way. In a young, almost 100-year-old company, none of these initiatives would be possible without the courage to deal with what I consider to be a significant collective challenge: a change of mindset. In this journey, our solid corporate governance helps our senior leadership—and, consequently, all areas of our business—to further embrace and become more responsible for sustainability. Year after year, our organization’s virtuous circle reflects our advances in governance, which includes an independent and increasingly diverse Board of Directors. Our Sustainability Committee and Strategy & Innovation Committee, for example, which are made up primarily of independent board members that are market references in their areas of activity and have different backgrounds, are currently major catalysts for the transformations undertaken by Suzano. They add different perspectives and point out trends to help us increasingly see beyond business as usual, which will meaningfully accelerate the company’s evolution throughout this decade. Although governance has been a key driver in our company for many years, our commitment to achieving its highest standards is ongoing, cross cutting and long-term, serving as a guide for all of our business practices, from the Board of Directors to the frontline of our operations. As a company that values business ambidexterity, all initiatives described in this report are anchored in our business strategy (which includes a long-term vision that considers a horizon of 10 to 15 years) and in excellence in the delivery of our results in the short term (learn more in the chapter Suzano). Our strategy is fully aligned with our Commitments to Renewing Life, reflecting our recognition that “it is only good for us if it is good for the world”, and with our ongoing commitment to remain an efficient and profitable company. To make all this happen, we rely on our 36,000 direct and indirect employees, who are committed to making a difference in the daily lives of the people who consume our products and, most of all, to staying focused on generating and sharing value with our different stakeholders. Strongly-yet-gently, we will continue to invest in efficiency and in the growth of our current business, while also exploring new opportunities to renew life inspired by trees, as a way of sowing a positive future for all. David Feffer Chairman of Suzano’s Board of Directors 4 4 Relatório Suzano 2020 Suzano’s 2021 Annual Report Messages 5 Photo: Sérgio Zacchi. d e t t i m m o C Y T E I C O S O T y n a p m o C A O E C e h t m o r f r e t t e L S E G A S S E M . 1 0 4 1 - 2 0 1 I R G I would like to start this message by first thanking Suzano’s more than 36,000 employees and contractors for another year dedicated to our forestry, industrial, laboratory and logistics operations and our administrative areas. All our people had to adapt their lives to a new reality, whether working remotely or adopting new health and safety practices in operational areas. In an unstable environment, threatened by the pandemic, we managed to impact more than 2 billion people worldwide, who use our products and services daily. Thanks to the high level of commitment and competence of each employee, Suzano was proud to celebrate a year of excellent performance in 2021. We believe that successful companies are those that can find convergence between efficiency, sustainability and transformation. In light of that, our participation in COP26 is an important demonstration of our commitment to being part of the evolution of society. We left the conference optimistic about the progress made by each country in their commitments in this area. Among the initiatives discussed at COP26 that I would like to highlight is the approval of the regulated carbon market. We know that our planted trees and the preservation of native forests are part of the solution to the climate crisis. In a growing trend, our raw materials will replace nonrenewable resources. To this end, we will offer new products that, by design, are developed considering performance, competitiveness and sustainability throughout the value chain. A good example of this in 2021 was the announcement of a joint venture with Spinnova. Together, in our mill under construction in Finland, we will produce sustainable fibers from our planted and certified eucalyptus and the pulp we already manufacture for use in paper—unlike any other fiber currently used in the textile industry. In addition to producing lower CO2 emissions and using less water, the production process of this fiber does not use any fossil materials that could generate microplastics. We also understand that we have an important challenge regarding our commitment to lift 200,000 people out of poverty in the areas where we operate. In 2021, we made progress in the pursuit of this target, but we know that the pandemic has highlighted social inequalities in Brazil, with a serious impact on communities. To overcome this challenge, we are expanding partnerships and further increasing our focus on the social initiatives coordinated by Suzano. We understand that this is our role. It is extremely important to continue to invest in the production of competitive raw materials and, from there, in disruptive alternatives that can lead us to a better future. In this context, the regulated carbon market is also a key instrument for financing the decarbonization of the global economy. And our company, which has been increasingly vocal on issues that impact the world, has actively contributed to accelerating this process. We believe that solutions to climate change, the loss of biodiversity and other systemic challenges of the 2030 Agenda cannot be reached by just one company or a small group of organizations. The response to the Sustainable Development Goals (SDGs) involves more than 7 billion people. In other words, this is not a competition agenda—it is an agenda in which everyone wins, or everyone loses. We are proud to belong to an industry that positively impacts Brazil and the planet. But there is more to be done by Suzano, as it continues to fulfill its purpose of renewing life inspired by trees. In 2020, we made a set of public commitments, in line with the SDGs, to be fulfilled by 2030. We will produce more clean energy in our operations and advance our efforts to reduce our carbon emissions (including those indirectly linked to our activities). We will continue to evolve on issues such as biodiversity conservation, waste and water management and, not least, diversity and inclusion, especially with regard to women, Black people, LGBTQIAP+ and people with disabilities, since we must give everyone the opportunity to have better representation and rise within the company. All these initiatives earned us 15th place in the ranking of the top global companies recognized for their sustainability commitments and practices, according to the 25th GlobeScan / SustainAbility Leaders Survey, conducted by GlobeScan and The SustainAbility Institute by ERM. We have many opportunities to be leaders in the process of transforming society. For this to happen, our daily behavior must reflect the changes we want to see in the world. Like any company, we have challenges. However, they will not be barriers to our performance as a company that is committed to the transformation of society. That is why, to deliver the best results as a company, we are committed to engaging other people, entities, governments and companies in this transformation agenda through innovation. This is what you will see on the next pages of our 2021 Annual Report. Walter Schalka CEO of Suzano 6 Suzano’s 2021 Annual Report Messages 7 Tereza Cristina Rodrigues Machado, Nursery assistant, Três Lagoas unit (state of Mato Grosso do Sul). Photo: Márcio Schimming. This 2021 Annual Report presents Suzano’s main financial, social, environmental and corporate governance highlights, as well as the company’s initiatives to fight the COVID-19 pandemic and its effects, from January 1 to December 31, 2020. The content of this document covers the most relevant topics for the business and our stakeholders, according to our materiality assessment and our 15 Commitments to Renewing Life, which we have publicly made and must fulfill by 2030, in line with the Paris Agreement and the Sustainable Development Goals (SDGs). Topics that affect more than one stakeholder group may appear in more than one chapter, according to their perspectives. There is no specific chapter dedicated to investors. However, since the topics of interest for this group are also cross cutting, they are detailed, in particular, in the chapter Suzano. Seeking to reflect the best practices of transparency to stakeholders, this report is prepared in accordance with the standards of the Global Reporting Initiative (GRI, Core option) and follows the principles of the International Integrated Reporting Council (IIRC), which drive the communication of value creation, with focus and conciseness, and seek to ensure a balance between the positive and negative aspects of the issues reported. In addition, this report is organized in line with the Sustainable Development Goals (SDGs)—17 global goals established by the United Nations (UN) that are part of the 2030 Agenda. The Annual Report is part of an information hub that also includes our Sustainability Center (formerly known as the Indicators Center). In it, we publish a comprehensive set of indicators that are based on frameworks of the Sustainability Accounting Standards Board (SASB)1 for the Pulp and Paper Products, Forestry Management, 1. SASB disclosure standards enable companies to identify, manage and communicate financially-material sustainability information to investors in a standardized, comparable and specific way for each type of industry and sector, to facilitate decision making. T R O P E R L A U N N A E H T T U O B A . 2 0 6 5 - 2 0 1 , 4 5 - 2 0 1 , 2 5 - 2 0 1 , 9 4 - 2 0 1 , 7 4 - 2 0 1 , 6 4 - 2 0 1 , 5 4 - 2 0 1 , 4 4 - 2 0 1 , 0 4 - 2 0 1 I R G and Containers and Packaging industries, and the Task Force on Climate-Related Financial Disclosures (TCFD)2, and are inspired by the World Economic Forum’s (WEF) Stakeholder Capitalism Metrics3. In addition to the Annual Report in PDF, we also have a strategic summary that includes two infographics. Throughout this document, you will find links and “learn more” features to give you access to additional information included in our Sustainability Center and other websites and platforms, to enhance your browsing experience and expand your knowledge about Suzano. 2. TCFD is an initiative formally supported by the company that addresses the availability and quality of financial information related to climate change. 3. The Stakeholder Capitalism Metrics are a set of guidelines that can be used by companies to align their financial reports with environmental, social and governance (ESG) indicators. 1 Identification Analysis of internal and external documents, including relevant and benchmark studies and surveys about the industry. MATERIALITY In accordance with the mandatory guidelines established by the GRI and IIRC methodologies, Suzano’s materiality is the intersection of topics that are relevant to the business from the perspective of our stakeholders and the analysis of the impacts related to these topics. In 2021, the materiality matrix was updated, according to the following steps: MATERIALITY MATRIX i s e c n e d u a l a n r e t x e o t e c n a v e e r l : e v i t c e p s r e p l a n r e t x E 3,0 2,5 2,0 1,5 1,0 0,5 1 Climate change Water Human Rights 4 5 Biodiversity 2 3 Land development Innovability 8 7 6 Supplier Management Diversity, Equity and Inclusion 0,0 0,0 0,5 1,0 1,5 2,0 2,5 3,0 Internal perspective: significance of impacts and strategy to the company 2 Prioritization Interviews with five company leaders/executives and external stakeholders and sectoral studies to identify impacts on the industry conducted by relevant organizations, such as the Sustainability Accounting Standards Board (SASB) and the Forest Stewardship Council (FSC), in addition to documents from IFC, WWF and TNC. 3 Analysis In the analysis and weighting, the perceptions of each stakeholder, as well as the topics identified, received the weights recommended by the methodology, producing a matrix with internal and external perspectives. 4 Validation of results Validation of the list of topics by the Sustainability area and leaders, and definition of level of detail and boundaries established for each topic, according to the methodological recommendation. It is important to mention that the process of updating Suzano’s materiality took into account the most current concepts related to dynamic materiality and double materiality. Keep reading to learn about the list of material topics for Suzano: 8 Suzano’s 2021 Annual Report About the Annual Report 9 MATERIALITY Highly relevant topic Relevant topic Topic of little or no relevance Material topic Why it is material (GRI 103-1) Alignment with commitments Boundaries of the material topic and relevance for the links of the value chain (GRI 103-1) SDG Climate change Suzano has a significant forest base. Together, native forests and eucalyptus plantations directly contribute to the removal and storage of carbon dioxide (CO2) from the air, preservation of biodiversity and regulation of the hydrological cycle, among other benefits. At the same time, the company has industrial and logistics activities that are highly intensive in terms of greenhouse gas (GHG) emissions. This places great responsibility on the company to mitigate and adapt to climate change, as it works with governments, civil society and other private entities to address this challenge. Be increasingly climate positive Emissions Forestry Industry Supply of wood and other inputs Transport and Logistics Marketing and Customers Resale and End Consumers Biodiversity In Brazil, eucalyptus plantations represent two thirds of all forests planted for silviculture. They have been connected to the deforestation of the Atlantic Forest, a biodiversity hotspot, and also pose a risk to other biomes, even though most companies no longer work with deforested areas. Other impacts on biodiversity may include: loss of habitat; fragmentation of biomes by anthropic actions; scaring away and trampling the fauna; changes in native vegetation; loss of individual flora species; microclimate and landscape alteration. On the other hand, in addition to lumber production, forests provide valuable ecosystem services, including carbon sequestration, wildlife habitat, water purification and storage, soil formation and recreational opportunities. Protecting or enhancing ecosystem services within managed forests could mitigate reputation, demand and operational risks related to the potential negative environmental impacts of forestry. Conservation of Biodiversity Water in the Forest Waste Forestry Industry Supply of wood and other inputs Transport and Logistics Marketing and Customers Resale and End Consumers Land development Conflicts with communities, including both indigenous and traditional peoples, can affect a company’s ability to operate in certain regions, result in regulatory action, and impact the brand. On the other hand, companies can provide benefits to community stakeholders through employment opportunities, revenue sharing and increased trade. Organizations can adopt various community engagement strategies to manage the risks and opportunities associated with community rights and interests, such as maintaining positive relationships with local stakeholders and accommodating the needs of communities. Education Mitigating the issue of income distribution Forestry Industry Supply of wood and other inputs Transport and Logistics Marketing and Customers Resale and End Consumers Water The manufacture of pulp and paper products is typically a water-intensive process, with consumption during the processing of materials, process cooling, and steam generation in on-site power plants. Process water typically contains dissolved organic compounds and other solids, underscoring the importance of its treatment. Water availability is an important consideration for the industry, as shortages can result in higher supply costs, supply interruptions or tension with local users. Scarcity can be even more critical when it comes to forest areas, since it can reduce forest productivity or even create conflicts with neighboring communities. Because of its productivity, eucalyptus converts a large amount of water resources into biomass in a relatively short space of time, which can have a drastic and negative impact on neighboring freshwater sources, including rivers, lakes and underground aquifers. Water in the Forest Water in Industry Forestry Industry Supply of wood and other inputs Transport and Logistics Marketing and Customers Resale and End Consumers 10 Suzano’s 2021 Annual Report About the Annual Report 11 MATERIALITY Highly relevant topic Relevant topic Topic of little or no relevance Material topic Why it is material (GRI 103-1) Alignment with commitments Boundaries of the material topic and relevance for the links of the value chain (GRI 103-1) SDG Human Rights Diversity, Equity and Inclusion Supplier Management Innovability Human rights are rights inherent to all human beings, regardless of their race, sex, nationality, ethnicity, language, religion or any other status. Human rights include the right to life and liberty, freedom of opinion and expression, the right to work and education, and others. In the case of Suzano and forestry companies, which occupy large tracts of land with eucalyptus or pine monoculture, the right of access to natural resources and land, especially of traditional communities or communities that live off the land, can be violated. In addition, forced and/or compulsory labor and child labor can still be found on eucalyptus plantations in Brazil, particularly in those where eucalyptus is used for charcoal in the production of pig iron. By organizing work through subcontractors, companies can require them to confirm no fault regarding working conditions, as well as carry out audits and certify their chain to reduce risk. Diversity and Inclusion Water in the Forest Water in Industry Forestry Industry Supply of wood and other inputs Transport and Logistics Marketing and Customers Resale and End Consumers For Suzano, diversity, equity and inclusion are not only a duty, but also a business strategy. In a diverse and inclusive environment, employees are more involved, creative and collaborative, and the rates of attraction and retention of new talent increase significantly. The topic must also be considered in all company practices, including while dealing with local communities, managing its suppliers or developing new products. Among the negative impacts of unproper management of this topic, we can include operational costs, reputational risks and contribution to increased social inequality. On the positive side, proper management of this topic can lead to gender and racial equality, and the inclusion of historically excluded people. In the context of a country like Brazil, the fight against machismo, racism and various forms of discrimination includes promoting and valuing these minorities in the workplace as well. Diversity and Inclusion Forestry Industry Supply of wood and other inputs Transport and Logistics Marketing and Customers Resale and End Consumers The traceability of a product is an important feature to ensure that, if there is a quality problem, it is easily traceable, enabling recall. For the forestry sector, having the assurance (by a certifier) that the forest from which the raw material comes is being exploited in compliance with the law and correctly from an ecological, social and economic standpoint, differentiates the product of similar ones and adds value. Among the impacts of properly managing this topic, we can include brand protection; quality control; added value to the final product; the production of forest products in a sustainable way; as well as the cascading of good practices through the chain of custody. On the negative side, impacts may include operational costs and/or remediation costs; non-compliance with legislation; loss of biodiversity; contamination of water resources and violations of human rights. Water in the Forest Water in Industry Waste Continuous investment in technology and a culture of innovation that drives the development of solutions for the biggest challenges that society faces (enabling the transition to the bioeconomy) are central elements of this topic, in addition to adding greater competitive advantage. The addition of sustainability to this topic reflects the ability of an organization to innovate in a sustainable way and to leverage sustainability as a pathway for innovation, new business and differentiation. At Suzano, innovability is directly linked to its ambition to be a regenerative company that wants productivity to be part of its chain, from end to end; create a competitive advantage based on customer needs and new ways of using and applying its inputs; and seeks new businesses, solutions and products from trees, for a more renewable future. Products from Renewable Sources Energy Forestry Industry Supply of wood and other inputs Transport and Logistics Marketing and Customers Resale and End Consumers Forestry Industry Supply of wood and other inputs Transport and Logistics Marketing and Customers Resale and End Consumers 12 Suzano’s 2021 Annual Report About the Annual Report 13 We believe that this is an ongoing process of transparency and accountability, and we highly value comments and criticisms about our report. GRI 102-53 The reporting process is a central element to ensure transparency and also of Suzano’s sustainability strategy. Therefore, we encourage and appreciate ideas, criticisms and comments that can help us improve it. Questions or suggestions about our report can be directed to relatoriosuzano@suzano.com.br. Generating and sharing value with the stakeholders that are part of the ecosystem in which we operate is essential. Therefore, the way the company impacts and is impacted through its initiatives and relationships with the various stakeholders, as well as its challenges and management methods, is presented throughout its narrative. The issue of innovability—which, for Suzano, means having innovation work in the service of sustainability and vice versa—and its relevance to the company are addressed throughout this report. The main practical examples of how the company has been applying this concept are highlighted throughout the chapters in the form of case studies. Resources such as links and “learn more” options are used to guide the readers and facilitate an integrated access to information. In addition, the material topics and SDGs related to the subjects detailed throughout the report are indicated in each chapter. This document has been submitted for the analysis of external readers, who were invited by the company to express impartial opinions on the quality and transparency of its content and information. The document also underwent independent external assurance, conducted by Bureau Veritas, whose external validation is included at the end of the report. To learn more, visit www.suzano.com.br/en/r2021 or our Sustainability Center. Perivaldo Soares Florentino, Forestry supervisor, Imperatriz unit (state of Maranhão). Photo: Márcio Schimming. 14 Suzano’s 2021 Annual Report About the Annual Report 15 D R A W O T Y E N R U O J R U O Y T I L I B A V O N N I R E T T E L N E P O S O N A Z U S ’ . 3 0 ) E D A D I L I B A V O N I : L A I R E T A M A M E T ( 3 - 3 0 1 , 2 - 3 0 1 , 1 - 3 0 1 I R G Y T I L I B A V O N N I N O For us, innovation only makes sense if it is connected to sustainability, a path that the company has been pursuing for several years. T rees are the very essence of Suzano. They inspire our purpose of renewing life inspired by trees and the 15 long-term goals the company calls Commitments to Renewing Life – made, also, as a way to address some of the main challenges facing the world in the 21st century. Suzano is a global leader in its industry. It has an installed production capacity of 10.9 million tonnes of pulp per year, exports to more than 100 countries and, through its products, participates in the lives of more than 2 billion people around the world. Given this magnitude, it is natural for the company to assume a leading role in the most relevant discussions for society and the planet. And innovability is an attribute for which Suzano wants to be recognized, based on its main asset: its areas of eucalyptus plantations and of native forests set aside for conservation. This concept is anchored in one of our organization’s cultural pillars (“It is only good for Suzano if it is good for the world”), a value that has influenced all business decisions since 2019, when the company defined its Cultural Drivers. Innovability is reflected not only in the way the company develops projects and processes, but in the governance established to address this issue. Currently, the advisory committees within Suzano’s Board of Directors include a Sustainability and a Strategy & Innovation committee. Together, the two bodies establish convergent agendas, following the principle of “and” rather than “or”. In other words, through the activities of these groups and the management of indicators of quantity, quality and speed of transformation, the agendas of the future are kept alive in the company’s everyday activities, ensuring that short-term needs do not prevent Suzano from thinking in the long term and reaching its next evolutionary level. Innovation is the “how” of our journey. We want to be a company that exudes this attribute and is focused not only on the co-creation of solutions developed from planted trees, to support a low carbon economy, but also on the way we work with all our stakeholders—in social projects and environmental issues, initiatives with suppliers or in the way we access the financial market. Today, this concept is at the core of every Suzano initiative. Throughout the chapters of this report, you will learn about dozens of projects, of different scales and maturity levels, that, for example, aim to leverage the potential of eucalyptus to replace plastics and other fossil-derived products, apply microfibrillated cellulose technology in textile production or contribute to the creation of a regulated carbon market that can help countries address the effects of climate change. Currently, 70% of our Research and Development portfolio is made up of short- and medium-term projects—that is, projects that will be implemented in up to five years. We have the ambition to offer solutions that are still under development, such as new applications for lignin, nanocellulose, biocomposites and bio-oil. Our mission is to make these applications viable, through feasible processes. The remaining 30% of our portfolio requires five years or more and the participation of other value chains to be developed. We remain firmly on the path of transformation, although the company still has a long way to go in partnership with startups, universities, associations, research centers, customers, governments and other companies in Brazil and abroad. This is part of a strong effort to change mindsets, promote collaboration and share knowledge that will help us drive the evolution we want to see at Suzano and in society, for the sake of a better world. 16 Suzano’s 2021 Annual Report 16 Innovability 17 We participate in people’s lives through various products made from our planted eucalyptus trees. We want more: we will create new solutions to respond to the needs of a low carbon economy. Keep reading to learn more about our activities. GRI 102-1, 102-2 04 O N A Z U S Otávio Augusto de Andrade, Forestry supervisor, Três Lagoas unit (state of Mato Grosso do Sul). Photo: Márcio Schimming. BIOPOSSI SIBILITIES 18 Suzano’s 2021 Annual Report 18 Suzano’s 2021 Annual Report Suzano 19 Suzano 19 _OUR COMPANY GRI 102-2 Marcos Rodrigues da Silva, Cutter assistant, Limeira unit (state of São Paulo). Photo: Fernando Cavalcanti. Max Pure® toilet paper production line, Imperatriz unit (state of Maranhão). Photo: Márcio Schimming. Suzano is currently the largest producer of hardwood pulp in the world. The company supplies the market with products from renewable sources that serve as raw material for products that are part of people’s daily lives, such as printing and writing paper; sanitary papers, including toilet paper, tissues and paper towels; packaging papers for various segments; special papers; and many others. Our fluff pulp, known as Eucafluff®, caters to the segment of diapers, absorbent products for incontinence, pet mats, sanitary pads and hospital products. In the paper and packaging, segment, in which the company is one of the largest producers in Latin America, we have four product lines: paperboard, uncoated paper, coated paper and cut-size paper. Our products, which are sold and distributed globally, are used in common applications in the segments of packaging, publishing, converting, promotional and the direct use of A4 paper for printing and writing. MAIN BRANDS IN THE PAPER AND PACKAGING SEGMENT _ Paperboard: Supremo Alta Alvura, TP White Plus and Super 6 Plus. With regard to paperboard, in addition to the regular sale of paper to printing facilities, converters and distributors, we offer to our customers the service of co-creating new types of packaging, by evaluating raw materials and/or design ideas together with printing facilities and brand owners. _ Uncoated paper: Pólen, Alta Alvura, Reciclato, Paperfect and Prisma Bright (domestic market only). The uncoated line is also available to the packaging segment through products that can be used to form cardboard sheets and boxes. _ Coated paper: Couché Suzano, Couché Fit, Couché Design and Couché Press. _ Cut size paper: the main brand sold in the domestic market is Report. The main brands sold abroad are Artwork, Eclipse and One. _Packaging paper (coated or uncoated): Bluecup® family, Greenpack® (for flexible packaging), Loop® (paper used for making straws) and Greenbag®, which is made exclusively of virgin eucalyptus fibers and has tearing, ripping and roughness properties that are ideal for the retail bag segment. In the consumer goods segment, Suzano offers pulp-based products that meet hygiene, cleaning, and family and home care needs. MAIN BRANDS IN THE CONSUMER GOODS SEGMENT: _Toilet paper Mimmo®, Floral, La Vie Blanc® and Max Pure®. _ Wet wipes Mimmo®. _ Paper towel and napkins Scala. _ Diapers Maxx Baby. To learn more about our products, visit Suzano’s website. 20 Suzano’s 2021 Annual Report Suzano 21 SUZANO IN NUMBERS – 2021 GRI 102-7 INSTALLED CAPACITY 1.4 million tonnes of paper per year 10.9 million tonnes of pulp per year (includes Veracel’s production) 21 distribution centers 3 ports to export pulp 10 fully dedicated ships All units near the coast or connected by rail 7 research centers • 5 in Brazil • 1 in Canada • 1 in Israel 5 international offices • Buenos Aires, Argentina • Lustenau, Austria • Shanghai, China • Nyon, Switzerland • Fort Lauderdale, USA Paper sales volume (including consumer goods) 1.3 million tonnes Renewable energy contributed to the Brazilian Electric System 1,500 GWh (equivalent to the energy consumed in Brazil in one day or in Norway in five days) Capex R$6.3 billion R$65 million+ in social investments 35,000 customers in the paper segment Pulp sales volume 10.6 million tonnes Net revenue R$41 billion R$23.5 billion Adjusted Ebitda R$18.8 billion in operating cash flow GLOBAL PRESENCE AND CERTIFICATIONS GRI 102-4 International offices USA and Europe (Austria and Switzerland) • ISO 9001:2015 • CoC FSC®1 and PEFC/Cerflor FOREST BASE PLANTS OFFICES PORTS Imperatriz unit • ISO 9001:2015 • ISO 14001:2015 • ISO 45001:2018 • CoC FSC®2 and PEFC/Cerflor • SMETA Stenfar • ISO 9001:2015 • CoC FSC®3 and PEFC/Cerflor Três Lagoas and Jacareí units • ISO 9001:2015 • ISO 14001:2015 • CoC FSC®2 and PEFC/Cerflor • ISO/IEC 17025 • SMETA Central Office • ISO 9001:2015 • CoC FSC®2 and PEFC/Cerflor Santos Port • ISO 9001:2015 • ISO 14001:2015 • ISO 45001:2018 Mucuri unit • ISO 9001:2015 • ISO 14001:2015 • ISO 45001:2018 • CoC FSC®2 and PEFC/Cerflor • ISO/IEC 17025 • SMETA Aracruz unit • ISO 9001:2015 • ISO 14001:2015 • CoC FSC®2 and PEFC/Cerflor • ISO/IEC 17025 • SMETA Suzano, Rio Verde and Limeira units • ISO 9001:2015 • ISO 14001:2015 • ISO 45001:2018 • CoC FSC®2 and PEFC/Cerflor • ISO/IEC 17025 • SMETA 22 Suzano’s 2021 Annual Report 1 CoC FSC – license code: FSC-C012430 2 CoC FSC – license code: FSC-C010014 3 Stenfar and Distribuitors Chain of custody license code: FSC-C003231 Suzano 23 INFOGRAPHIC – Value Creation Model Following the international Integrated Reporting (IR) methodology, this infographic depicts the value creation process of Suzano’s business through capitals (set of resources). In addition, it displays the combined impact that production process, stakeholders and the business model itself can have on society over time. This infographic also includes the company’s main highlights and results in 20211. Inputs Financial Capital • Investment in the forest base; expansion and maintenance of commercial plantations and conservation areas • Investments in manufacturing; expansion and maintenance of units, purchase of inputs, materials and services • Investments in logistics, including chartering ships, acquisitions and renovations of terminals, more efficient vehicles, road maintenance and construction Intellectual Capital Natural Capital • Water, soil, native forests and restored areas • Biological controls • Climate conditions, biodiversity and natural cycles Social investment more than R$65 million Investment in Research and Development R$187 million • Partnerships with academia • Systems and platforms (information and research centers • Development of studies, patents and cultivars • Digital transformation organization, knowledge management, data control) • Tacit knowledge • Processes and procedures Manufactured Capital • Eucalyptus plantations for wood production • Offices • Nurseries • Industrial, research and forestry equipment • Logistical modes • Distribution centers Mills (11 + Veracel) (joint operation between Suzano and Stora Enso) • Innovation and Research Centers • Equity participation, focused on the development of new pulp-based businesses Social and Relationship Capital • Academia and startups • Companies in general • Shareholders • Suppliers • Associations/organized groups • Governments • Certifiers • Customers • Company employees and contractors • Community • End consumers • Media • Investors and other financial organizations • NGOs • Unions • Civil society Human Capital Company employees 16,679 Contracted employees 20,375 1. With the exception of financial data, installed capacity, total number of manufacturing units and energy export data, the other indicators in this infographic do not include information on Veracel’s operations. Outputs Results achieve during the year and deliveries that impact the creation of value by the company. Natural Capital 35,100 hectares of areas under restoration • Approximately 1 million hectares of conserved native forests and constant monitoring of biodiversity, springs and water courses • Production of 115 million natural enemies, for biological pest control in approximately 150,000 hectares • New lab for the production of natural enemies in Três Lagoas • Certification of ecosystem services provided by the Neblinas Park Results of our total carbon balance (emissions – removal) -8.9 million tCO2e Launch of a Commitment to Renewing Life related to biodiversity, to be fulfilled by 2030 Financial Capital • Adjusted Ebitda: R$23.5 billion • Capex: R$6.3 billion • Operating cash generation: R$18.8 billion • Participation in the Corporate Sustainability Index (ISE), Carbon Efficient Index (ICO2) and B3’s Great Place to Work. • Other structured transactions Issuance of two Sustainability-Linked Bonds: US$1.5 billion raised in the market Human Capital Intellectual Capital • Progress in Diversity, Equity and Inclusion practices • 19% improvement in safety indicators • Organized initiatives to fight COVID-19 • Active participation of executives in COP26 • Collaboration of several areas to host the first ESG Call Social and Relationship Capital More than 9,000 people lifted out of poverty; 57.7% average income increase • Development, income and education programs serving 37,000 people and benefiting 385,000 people • Creation of the Suzano Multidimensional Poverty Index (MPI) • Advances in the Resilient Territories methodology • Expansion of Suzano’s education program: 36 towns, 1,750 elementary schools and 298,146 public school students • Emergency call for proposals to mitigate the effects of the pandemic: 44 projects approved, R$1,165,000 invested and 2,951 people benefited • 41,715 food baskets distributed to 36 entities and more than 50,000 people in 77 municipalities in nine states • Supplier development programs, such as Semear • Collaboration and support for the creation, advancement and access to public policies • Operational dialogue with communities, impacting 6,000 people through 1,842 discussions in the municipalities where we operate • Partnerships with 37 institutions, in countries such as Australia, Brazil, Canada, Finland, Israel, Italy, Sweden and USA • One of the 15 companies in the GlobeScan-SustainAbility Leadership Survey Ranking • Products launched: Greenbag®, Greenpack®, Mimmo® Three Ply, Mimmo® Wet Wipes • Digital Transformation: 40+ open innovation initiatives throughout Suzano’s production chain • Investments in research and innovation in all areas of the business • 372 patents and patent applications; 57 cultivars protected and approximately 322 new cultivars in the process of being protected; 59 active partnership agreements with universities and research centers • Improvement of methodologies for quantification of carbon removal and of forestry and industrial techniques and processes Manufactured Capital CERRADO PROJECT New unit with capacity to produce an additional 2.55 tonnes of pulp per year • Production of pulp, paper and products such as toilet paper, paper towels, napkins, etc. • Improvements in equipment and infrastructure • Measures to fight the pandemic together with governments, in addition to partnerships with other companies (R$24.9 million) • Creation of Woodspin, a joint venture with the startup Spinnova 24 Suzano’s 2021 Annual Report Suzano 25 _STRATEGY THE SUZANO OF THE FUTURE Suzano’s strategic planning is a three-level process that considers our long-term vision, our ambitions and our medium-term battles. At the first level, our vision considers a horizon of 10 to 15 years. SUZANO’S LONG-TERM VISION At this first level, the drivers of Suzano’s long-term vision are: 1 Continue to be an industry benchmark in efficiency, profitability and sustainability, from the forests to the customers. 2 Be a transforming agent in the expansion of our biomass into new markets. 3 Be a benchmark in sustainable and innovative solutions for bioeconomy and environmental services, based on cultivated trees. THE AMBITIONS THAT TRANSLATE THE AVENUES TO BE PURSUED Based on our integrated long-term vision, the top leadership was responsible for developing five key ambitions that aim to guide Suzano’s path in the coming years and constitute the second level of our strategy. These are the steps that will need to be taken in the next five years to ensure the company’s success. The ambitions that translate the avenues to be pursued are: MEDIUM-TERM BATTLES On the third level of our strategy are the medium-term battles that will support the achievement of our ambitions and include specific initiatives for each major avenue. This map of initiatives was created through a collaborative process involving leaders and execution teams, to ensure alignment between the company’s strategy and its operations. Be best-in-class in total pulp cost. Maintain relevance in pulp through good projects. Advance in the value chain, while maintaining a competitive advantage. Be bold in expanding into new markets. Be a leader in sustainability. TO ACHIEVE OUR GOALS, WE HAVE A STRONG GOVERNANCE MODEL IN WHICH: Part of the targets that make up leadership bonuses are linked to the battles. Battle leaders hold monthly meetings to assess status and course corrections, if necessary. The results of the initiatives are reported to the Strategy & Innovation Committee on a quarterly basis. The progress of each battle is monitored through specific indicators. Investments and startup of new projects are analyzed at annual check points. SUZANO’S STRATEGY IN CHINA Suzano’s presence in China will change significantly in the coming years. In 2021, the company created a department to manage our strategy, business, relationships and future in the country, with the goal of ensuring a strong presence for the company, as well as expanding the offering of nature-based solutions and connections with different stakeholders, including academy, the government and civil society, among other local players. Currently, the Asian market accounts for between 40% and 50% of Suzano’s revenue. This includes China, the country with the highest annual demand and consumption of pulp. Therefore, there is an opportunity to increase the share of hardwood fiber in this market and also in the manufacturing processes followed by our current customers, since some of them use a mix of fibers in their paper production that includes not only hardwood pulp but also softwood pulp and recycled fiber. Suzano positions itself as a platform that offers multiple solutions to support China in its transition to a low carbon economy. In this sense, there are other business opportunities with the introduction of new solutions by the company that are not yet offered in the country, such as microfibrillated cellulose, or MFC (which can be used as an additive for special papers and cosmetics), as well as the possibility to offer energy products (through bio-oil produced from planted forests) and carbon credits. China currently faces a significant decarbonization challenge—approximately 65% of the country’s energy matrix is made up of fossil fuels. 26 Suzano’s 2021 Annual Report Suzano 27 FROM 2030 TO 2025 GRI 103-1, 103-2 Understanding the urgency of developing efficient measures to mitigate climate change, we expanded the debate on this issue at Suzano to explore what else we could do, since we recognize that we are part of the solution. One of the concrete measures was to announce the acceleration, from 2030 to 2025, of our commitment to remove 40 million tonnes of carbon from the atmosphere. In addition, throughout the year, we emphasized that, for Suzano, 2050 is now. Therefore, we need to act in a meaningful way and engage companies, industries and governments to move forward with us in the implementation of strong measures that can ensure that the increase in global temperature will not exceed 1.5 ºC. To learn more about the 2050 Now initiative, click here. We accelerated our commitment to remove 40 million tonnes of carbon from the atmosphere, from 2030 to 2025. José do Carmo, farmer and resident of the Pedra Bonita settlement, participant in the Agroecological Production project, Brasilândia (state of Mato Grosso do Sul). Photo: Márcio Schimming. _ SUSTAINABILITY GOVERNANCE AND STRATEGY GRI 102-10, 102-19, 102-20, 102-31 Sustainability is at the core of every initiative Suzano implements and decision it makes. Therefore, our long-term strategic vision combines the competitiveness of our business with sustainable development. In 2021, Suzano advanced important aspects of its sustainability governance. The company expanded the discussions of the Sustainability Committee, which is linked to the Board of Directors, coordinated by the Chairman of the Board and has five independent members. The group discussed trends, studies and future market analyses, among other topics, making this an increasingly strategic space for discussion. The impacts of the Cerrado project were also extensively analyzed by the committee. In addition, we created the Strategic Forum on ESG Commitments and Indices, which happens three times a year to monitor and discuss performance, risks and opportunities related to the Commitments to Renewing Life and to analyze our progress regarding ESG indices. This forum follows a cross-cutting approach, with people from different levels, including members of the Executive Committee, assuming responsibility for all of the company’s sustainability efforts. We also have Commitment Working Groups (WGs) to manage our long-term goals. Made up of employees from different levels and areas, these groups monitor the quantitative and qualitative indicators, the main projects, advances and the interconnection between the Commitments. In 2021, the WGs met monthly. This governance helps the company address sustainability in a cross-cutting manner. 28 Suzano’s 2021 Annual Report Suzano 29 COMMITMENTS TO RENEWING LIFE Topic/SDG Commitment Performance in 2021 What we will do in 2022 Pillar: PLANET TACKLE THE CLIMATE CRISIS Remove 40 million tonnes of carbon from the atmosphere by 20251 In 2021, we reached an accumulated carbon balance (emissions minus removals) of -24,096,570 tonnes of CO2e, thereby achieving 60.2% of our target. Considering our scope 1, 2 and 3 emissions and the removals originating from our planted and conserved forests, we reached a balance of 15,200,312 tonnes of CO2e removed from the atmosphere in 2020 and 8,896,257 tonnes of CO2e in 20212. It is expected that there will be a variation in our removal capacity over time, primarily due to dynamics related to forest management and the volume of available wood. Baseline: 0 (20202) Progress against the baseline: 60.2% Status advanced progress We will continue to expand our base of native and eucalyptus forests, while working to ensure high forest productivity. In addition, Suzano will also work to reduce the intensity of its scope 1, 2 and 3 emissions by reducing the consumption of materials that generate greenhouse gases throughout our operations. We will continue to participate in a pilot project of the Greenhouse Gas Protocol of a new guide on how companies account for and report their emissions and removals from land use (Land Sector and Removals Guidance3), in addition to following the evolution of other methodologies, such as Science Based Target: Forest, Land and Agriculture (FLAG)4. Reduce the intensity of scope 1 and 2 greenhouse gas emissions by 15% per tonne of production by 2030 There was an increase in scope 1 and scope 2 emissions of 11.4% in 2021, which leads to a 0.1995 tCO2e/t indicator. The increase in relation to 2020 was due to production increase, but also to an increase in the consumption of fossil fuels in industrial operations, as a result of occasional problems in boilers and a retrofit seeking a better use of biomass in the future and an increase in mobile emissions due to the expansion of forestry operations. Also in Brazil, we had an increase in the emission factor of the energy purchased from the National Interconnected System (SIN in Portuguese acronym). However, the indicator is still within the expected range. Baseline: 0.2133 tCO2e/tonne (20155,6) Progress against the baseline: 43.06% Status progress as expected Motivated by the significant progress toward the target in recent years, Suzano is reviewing its methodological bases to expand its ambition, both related to its own emissions reduction and to that of the value chain. In this sense, in 2021 we joined global initiatives and commitments that support the decarbonization of the economy, such as the Science Based Target Initiative (SBTi), Climate Action 100+ and Race to Zero. Learn more in the chapter Planet of this report. OFFER RENEWABLE PRODUCTS Offer 10 million tonnes of products from renewable sources that can replace plastic and other petroleum-based products, by 2030 In 2021, we offered approximately 32,000 tonnes of products from renewable sources. This result was driven by high demand in the packaging market. We advanced the Bluecup Bio® and Loop® lines, developed the Greenbag® and Greenpack® papers, and a paper for cardboard liner and fluting medium. We started selling lignin produced at the Limeira unit. In addition, we announced a joint venture with Spinnova and the construction of a plant for the production of textile fiber from microfibrillated cellulose. Baseline: 0 (20197) Progress against the baseline: 0.3% Status progress as expected We will continue advancing the families of products already launched, such as Bluecup® and Loop®, in addition to complementing our portfolio with products that will be developed in the coming years. The construction of our plant in Finland, in partnership with Spinnova, will enable the large-scale use of microfibrillated cellulose (MFC) by the textile industry. We will continue to explore the potential of lignin as an alternative to fossil-based inputs in high-performance industrial applications. In addition, we will deepen our potential market analysis, studies and strategic partnership negotiations for the commercialization of bio-oil, a renewable fuel produced from eucalyptus. 1. The deadline was brought forward from 2030 to 2025 in the understanding that this is an emergency. Learn more in the chapter Suzano. 2. Suzano has removed carbon from the atmosphere in previous years, but for the purpose of this target, removals will be counted from 2020 onwards. 3. Source: https://ghgprotocol.org/land-sector-and-removals-guidance 4. Source: https://sciencebasedtargets.org/sectors/forest-land-and-agriculture 5. The 2021 Greenhouse Gas Inventory was externally verified by an independent third party, according to the standards of NBR ISO 14064 and the Brazilian GHG Protocol Program. 6. All the information necessary to set the target was extracted from the greenhouse gas inventories of the former companies Suzano Papel e Celulose and Fibria. 7. The scope of this target includes the accumulated sales of products from renewable sources from 2020 through 2030. This does not mean that Suzano had not offered products from renewable sources before 2020. It just means that, for the purpose of this target, we started to calculate and account for our product offering in 2020. 30 Suzano’s 2021 Annual Report Suzano 31 COMMITMENTS TO RENEWING LIFE Topic/SDG Commitment Performance in 2021 What we will do in 2022 Pillar: PLANET PROTECT OUR WATER Increase water availability in all critical watersheds8 in the areas where Suzano operates by 2030 In 2021, we implemented management recommendations in 6,492 hectares of critical watershed areas, progress of 7.3% toward our target. We made significant advances in the demobilization of some areas and incorporated management parameters for the implementation of age mosaics and the expansion of forest cycles into our forestry plan. In addition, we expanded our studies to measure forest water use through medium- and high-resolution satellites to determine the amount of water available in critical hydrographic basins. Baseline: 0 (2020) Progress against the baseline: 7.3% Status progress as expected We will continue to implement the management recommendations in areas within critical hydrographic basins. In addition, we will continue to work to improve water measurement techniques based on remote sensing data and hydrological modeling. Reduce water withdrawal for industrial operations by 15% by 2030 In 2021, Suzano’s total water withdrawal was comparable to the volume withdrawn in the previous year. In addition, the new Cachoeiro do Itapemirim unit started operating. As a result of a 6.9% increase in production volume, an improvement in water use management and the implementation of projects in the Imperatriz and Aracruz industrial units, we achieved an accumulated reduction of 11.7%. During the year, we reached 26.3 m3/tonne. In 2021, the water withdrawal reduction targets were linked to the variable compensation of executive directors and direct leaders. Baseline: 29.8 m³/tonne (20189) Status Progress against the baseline: 77.8% advanced progress We will conduct engineering studies to implement the best available technologies in industrial units where we still have opportunities for improvement. Based on these studies, we will develop a plan to implement the technological solutions that prove to be viable through 2030. In 2021, we sent 20.8 kg of waste per tonne produced to specific landfills, as a result of the implementation of waste treatment projects and an increase in production volume. REDUCE WASTE Reduce the volume of industrial solid waste sent to landfill by 70% by 2030 The Limeira, Jacareí and Rio Verde units did not send any waste to landfills, since they have alternatives for waste treatment and for the sale of products to other industries. The new waste treatment center at the Imperatriz unit started operating in the first quarter of 2021. In September, at the Mucuri unit, we started a pilot project with another company to compost 54% of the waste that used to be sent to landfills. The VINO (Sale of Non-Operating Items) area celebrated an 84% increase in the sale of products from pulp and paper manufacturing. Baseline: 44.3 kg/tonne10 (201811) Progress against the baseline: 75.8% Status advanced progress We will carry out technical and economic feasibility studies for the implementation of soil corrector facilities within the Mucuri and Aracruz units and we will continue to develop studies with representatives from different areas of the business to pursue alternatives for the disposal of our waste, including the use of products for the production of concrete, cement and agricultural products. 8. Watersheds that are considered critical are subject to water unavailability due to natural characteristics (such as climate and soil type) 10. The target KPI is measured by dividing the volume, in kilograms (kg), of industrial solid waste sent to company and/or and type of land use (such as pastures, agricultural crops, etc.). Suzano is focusing on hydrographic basins that are significantly occupied by the company (equal to or greater than 30%), to ensure that forest management practices can have an effect and produce the best results to reverse the criticality of these basins and consequent water unavailability. 9. At the time this target was set, in 2019, we still did not have data for the entire year. Therefore, we used data from 2018 to establish the target and set a 12-year cycle for its achievement. third-party landfills by the production of pulp and paper, in tonnes. 11. At the time this target was set, in 2019, we still did not have data for the entire year. Therefore, we used data from 2018 to establish this target and set a 12-year cycle for its achievement. 32 Suzano’s 2021 Annual Report Suzano 33 COMMITMENTS TO RENEWING LIFE Topic/SDG Commitment Performance in 2021 What we will do in 2022 Pillar: PLANET GENERATE CLEAN ENERGY Increase renewable energy exports by 50% by 2030 In 2021, we used data science to determine the optimal point of steam generation and distribution, with a focus on the energy efficiency of turbogenerator turbines. On the other hand, we were impacted by the shutdown of one of the turbogenerators at the Imperatriz unit in the first half of the year, which significantly affected the total volume of energy exports. The turbogenerator operation was stabilized in early 2022. Despite that, we exported 189 MWm of renewable energy. Baseline: 214 MWm (201812) Progress against the baseline: 0% Status progress below expected We will continue to work on the development of projects aimed at increasing the availability of steam for energy generation, including improving the performance of our turbines and optimizing thermal consumption, in addition to promoting initiatives to reduce energy consumption. We will also implement modernization projects in some of our industrial units, both to optimize energy consumption and to increase the amount of energy generated. CONSERVE BIODIVERSITY Connect, through ecological corridors, 500,000 hectares of Cerrado, Atlantic Forest and Amazon fragments by 2030 In 2021, we focused on establishing a governance model to enable structured and transparent execution. We collected information to feed our georeferenced database, to understand the characteristics of the regions within the ecological corridors and determine the main variables to guide the development of action plans. We created metrics to determine priority conservation areas to be connected, considering the best paths and the optimization of resources in the creation of corridors that will support the improvement of biodiversity in these regions. We redesigned the paths of the corridors, seeking the most effective routes to increase the connectivity of the fragments. The process also included interviews with rural landowners in the areas through which the corridors will pass, to devise effective engagement strategies. In addition, we mapped the institutions and leaders of these locations to identify ongoing restoration and sustainable development initiatives, to strengthen the relationship with these stakeholders and identify opportunities for synergy in the development of social and environmental activities. 12. The choice of 2018 as the base year is due to the fact that there were no significant variations in production in our industrial units during that year. As a result, the set amount properly represents the company’s current energy export potential. To ensure transparency and align procedures, we also adjusted the target’s baseline and 2019 results to reflect export data from Veracel, a joint venture between Suzano and Stora Enso, in which each company holds a 50% stake. Baseline: in study Our goal is to prepare executive projects for the corridors, seek partners and funders, engage stakeholders within the areas where they are located, initiate management activities along the corridors and monitor human pressures and the risk of forest fires in these locations. 34 Suzano’s 2021 Annual Report Suzano 35 COMMITMENTS TO RENEWING LIFE Topic/SDG Commitment Performance in 2021 What we will do in 2022 Pillar: PEOPLE REDUCE POVERTY Lift 200,000 people out of poverty13 in the areas where we operate by 2030 Despite the challenges created by the pandemic, we were able to expand our initiatives to create work, income and social engagement, helping to lift an additional 9,007 people out of poverty and positively impacting 21,075 people who benefited from the income generation programs. These results were primarily driven by the strengthening of social organizations to facilitate the commercialization of products, institutional support from Suzano to access benefits from different public policies and increased agricultural productivity. SUPPORT EDUCATION Increase the Basic Education Development Index (IDEB, for its initials in Portuguese) in all priority towns by 40% by 2030 We implemented the Suzano Education Program (PSE, for its initials in Portuguese) in 27 of the 31 towns identified as our priority within the scope of the commitment, set the target’s baseline based on the IDEB scores from 2019 and performed the first annual evaluation of the program to measure the success of the initiatives implemented. The IDEB is calculated every two years; the Basic Education Assessment System (SAEB, for its initials in Portuguese) test was administered at the end of 2021. Therefore, we are waiting for the results to be announced to measure our progress toward our target. PROMOTE DIVERSITY, EQUITY AND INCLUSION Ensure 100% accessibility16 for people with disabilities by 2025 In 2021, we advanced the renovation schedule for adaptations that had been identified in the previous measurement, resulting in an improvement of 14.7 percentage points and an environment 52.9% accessible. One of the highlights was the construction project carried out in our administrative offices to create a single complex that follows the open office concept, with no division of sectors and/or areas, to promote inclusion and synergy between areas and processes. Ensure a 100% inclusive environment for people with disabilities by 2025 We improved the perception of an inclusive environment for people with disabilities, reaching 93%. This result was achieved through the implementation of strategic initiatives planned to address the findings of the previous year’s survey: mapping of 1,000 talents, training of 78 people through our operational training programs, launch of a governance process to ensure the replacement of people with disabilities, and facilitation of a series of events to raise awareness, engage and celebrate the potential and qualities of bodies of all types. Baseline: 0 (jan/202014) Progress against the baseline: 5.7%15 Baseline: 4.7 (2019) Progress against the baseline: 0% Baseline: 38.2% (2020)17 Progress against the baseline: 23.8% Baseline: 91.8% (2020) Progress against the baseline: 14.6% Status progress as expected We will continue to work to keep these people above the poverty line by strengthening our institutional commitment and income generation programs. Our goal is to increase the number of people benefited by these programs by 50% and to facilitate initiatives in partnership with strategic players in the areas where we operate. Status ND We will continue to implement the methodology of the Suzano Education Program in the towns that are considered our priority, working on strategies to improve student learning and social participation and to strengthen arrangements for the development of education and completion of training for teachers. Status progress as expected Status progress below expected We will perform analyzes based on the data collected in 2021 to create and monitor action plans, considering the characteristics and priorities of each unit. We will work on interventions and/or necessary renovations in the common areas of our sites. We will continue to invest to raise awareness, improve literacy, and develop and attract talent. Our efforts will be concentrated on work streams supported not only by the leadership of the group focused on this issue, but also by ambassadors from different locations, and our decisions will be centered on the experiences of people with disabilities at Suzano. 13. We use the international poverty line of US$5.50 per day or R$475 per month of per capita income (2020), set by the World Bank and ratified by the IBGE. 14. To ensure more transparency and align our procedures, we set the period of our target to 2020 through 2030 . This does not mean that Suzano had not lifted people out of poverty before 2020. It just means that, for the purpose of this target, the impact on poverty reduction will be measured starting in 2020 (year when the target was established), to ensure that the results will be evaluated and monitored more effectively. 15. The number was 2,285 in 2020 and 9,007 in 2021. Therefore, we are reporting the accumulated total (11,292 people). 16. We use the normative standard NBR 9050, from the Brazilian Association of Technical Norms (ABNT, for its initials in Portuguese), a regulatory standard that defines accessibility parameters that must be considered in buildings, with the definition of specific technical criteria for areas of circulation, ingress/egress, door width, height of cabinets, furniture, signage, floor types, and others, as well as a clear definition of the scope of common or restricted areas. 17. Correction of the figure reported in 2020. Instead of 38.4%, we had 38.2% accessibility for people with disabilities. 36 Suzano’s 2021 Annual Report Suzano 37 COMMITMENTS TO RENEWING LIFE Topic/SDG Commitment Performance in 2021 What we will do in 2022 Pillar: PEOPLE Ensure a 100% inclusive environment for LGBTQIAP+ people by 2025 In 2021, we improved the perception of an inclusive environment for LGBTQIAP+ people, reaching 93.6%—a 1.2 percentage-point increase compared to the previous year. This result was achieved through the implementation of strategic initiatives planned to address the findings of the previous year’s survey: education and awareness about the issue, active listening, and embracement and engagement in the company’s units, in addition to an increase in the hiring of LGBTQIAP+ people through our entryway programs. Baseline: 92.4% (2020) Progress against the baseline: 15.8% Status progress below expected We will invest in initiatives that provide better experiences for self-declared LGBTQIAP+ people. To do that, we will use the findings of the most recent survey to identify the areas where we need to improve and create working groups to address them. PROMOTE DIVERSITY, EQUITY AND INCLUSION Have 30% of leadership positions (functional managers and above) occupied by women by 2025 We had 22.5% of our leadership positions occupied by women, an increase of 3.4 percentage points in relation to the previous year. This result was primarily driven by our career acceleration and mentoring programs for women and the definition of a more diverse shortlist for selection processes, leading to a higher number of women hired. The shortlist must include 50% of female and/or Black candidates. Baseline: 15.8% (2019)18 Progress against the baseline: 47.2% Status advanced progress We will launch the ELOS D+ program to accelerate women’s careers and enhance our initiative to increase the number of resumes from women in our talent pool. We will also continue to work on our target related women in the shortlist for internal and external selection processes for leadership positions. To support the development of future leaders, we want to increase the number of female employees in general and of women in entry-level leadership positions. Have 30% of leadership positions (functional managers and above) occupied by Black people by 2025 In 2021, we had 19.7% of our leadership positions occupied by Black people, an increase of 1.4 percentage points compared to the previous year. This result was primarily driven by career acceleration and mentoring programs for Black people and the definition of a more diverse shortlist for selection processes, leading to a higher number of Black people hired. The shortlist must include 50% of female and/or Black candidates. In addition, the entire leadership team has variable compensation targets linked to this commitment. Baseline: 18.7% (2019)19 Progress against the baseline: 8.8% Status progress as expected We will launch the ELOS D+ program to accelerate the career of Black people and enhance our initiative to increase the number of resumes from Black people in our talent pool. We will also continue to work on our target related to Black people in the shortlist for internal and external selection processes for leadership positions. To support the development of future leaders, we want to increase the number of Black people in entry- level leadership positions. 18. In our 2020 Annual Report, we had rounded up the percentage to 16%. Starting from this report, our results will include one decimal place. 19. To increase transparency and to properly address the initiatives related to race/ethnicity at Suzano, we chose not to include our international offices in this target. Therefore, the target’s baseline became 18.7% of leadership positions in Brazil occupied by Black people, in December 2019. 38 Suzano’s 2021 Annual Report Suzano 39 _CORPORATE GOVERNANCE GRI 102-18, 102-22, 102-23 Advances in our governance structure reflect the evolution of the business itself and are crucial for a company that seeks to lead highly important movements for the industry, society and the world. In 2021, our Board of Directors was supported by the Supervisory Board, the Executive Committee and six other advisory committees, including the Sustainability and Strategy & Innovation Committees. The Board is frequently evaluated and has the support of Suzano’s Executive Committee, which shares responsibilities on social and environmental issues that are relevant to the business. All members of the Executive Committee have at least one sustainability goal linked to their variable compensation (representing at least 10% of their short-term variable compensation). In 2021, the Board of Directors had ten members, including seven independent directors, as listed below: _Ana Paula Pessoa (board member) _Claudio Thomaz Lobo Sonder (vice-chairman) _Daniel Feffer (vice-chairman) _David Feffer (chairman) _Helio Lima Magalhães (board member) _ Maria Priscila Rodini Vansetti Machado (board member) _Nildemar Secches (board member) _Paulo Rogerio Caffarelli (board member) _Rodrigo Calvo Galindo (board member) _Rodrigo Kede de Freitas Lima (board member) Aracruz unit (state of Espírito Santo). Photo: Márcio Schimming. CORPORATE GOVERNANCE Corporate Areas Sustainability Technology and Innovation New Businesses Other areas Board CEO 70% of independent members 20% in gender diversity Until April 2022 we had this composition. An Ordinary General Meeting took place in April 25, 2022, after the conclusion of this Report FORESTRY PULP PAPER AND PACKAGING CONSUMER GOODS Business Units Support committees: Statutory Audit Committee Management and Finance Committee Strategy and Innovation Committee Sustainability Committee* Human Resources Committee Compensation Committee Eligibility Committee *Members of the Sustainability Committee, linked to the Board of Directors: Clarissa Lins, Fabio Barbosa, Haakon Lorentzen, Priscila Vansetti, Ronaldo Iabrudi, Philippe Joubert, David Feffer (coordinator) and Daniel Feffer SUZB B3 LISTED NM Listed on Novo Mercado, B3's highest Corporate Governance segment, and NYSE's ADR program SUZ LISTED NYSE To read the profile and learn about the experience of each board member, visit our Investor Relations website. The ethical, honest and transparent performance of our governance bodies is also supported by consistent policies and established risk management practices, which enabled Suzano to advance even in one of the most challenging years in world history, marked by the economic and social challenges created by the pandemic. Whenever necessary, company policies are revised. In 2021, Suzano’s Anti-Corruption Policy was updated. Visit our Investor Relations website to learn more about the composition of Suzano’s governance bodies and their functions. In the Sustainability Center, you can also find information about how we manage conflict of interest, how we compensate and evaluate the performance of our board members, and more. 40 Suzano’s 2021 Annual Report Suzano 41 _RISK MANAGEMENT GRI 102-30 INFORMATION SECURITY At Suzano, the Risk area works to ensure that all events with the potential to have a negative impact on its performance and business strategy are properly mapped, classified and monitored, according to established methodologies and governance. This process includes three main lines of action: integrated risk management, compliance and ombudsman. We have an Integrated Risk Management Policy, that applies to all areas. The analysis of risks considers the following impact parameters: financial, health and safety, environmental, social, cultural, image and reputation, organizational climate and legal, according to levels of probability (very likely, probable, possible and remote). Periodically, the Risk area conducts an enterprise risk management (ERM) process, which, through workshops and interviews with the main executives, reassesses the company’s main risks and the opportunity to map new ones. Those classified as priorities according to the methodology are periodically reported to the Executive Committee, the Statutory Audit Committee and the Board of Directors, ensuring proper supervision. It is worth noting that, in 2021, the Executive Board and the members of the Board of Directors were trained in risk management and crisis management. The company also trained key employees who work directly in the management of risks and crises in our locations. Paper Machine 1, Limeira unit (state of São Paulo). Photo: Fernando Cavalcanti. Suzano values information security, especially considering the exponential increase in cyberattacks, one of the main global risks highlighted by the World Economic Forum. In 2021, the company restructured the Information Security area. Its mission is to mitigate and prevent vulnerabilities to ensure cyber security and the protection of assets, especially information and personal data, providing confidentiality, integrity, availability, authenticity and legality, to reduce the risks that may impact the business. _ ETHICAL CONDUCT AND MANAGEMENT The company has a Code of Conduct, an Ombudsman Policy, a Disciplinary Measures Policy and Rules for the Conduct Committee, which are all instruments to guide the ethical management of the business and establish the guidelines of the company’s governance process. These documents address compliance with legal and regulatory provisions that apply to each area and the Ombudsman Channel, and the appropriate regulations, including specific procedures and confidentiality. _CODE OF CONDUCT Our Code of Conduct includes the six ethical principles that guide our everyday behaviors, focusing on the quality of our relationships, products and services. We are committed to transparency, equity, accountability and corporate responsibility, as well as to ensuring human rights within our operations. The Code of Conduct and mandatory training on it were updated in 2021, according to our bylaws. The revised document, available in English, Mandarin, Portuguese and Spanish, establishes guidelines and principles related to the General Data Protection Law, medical and health measures in times of epidemics and pandemics, integrity, equality and relationships with suppliers. In addition, it includes new information on sustainability and harassment, among other issues. Learn more by visiting our Sustainability Center. In 2021, seeking to evolve our corporate governance practices and based on our Code of Conduct, Suzano launched a specific Supplier Code of Conduct, due to the specific characteristics of their participation in the company’s ecosystem. Learn more in the Suppliers chapter or by clicking here. 42 Suzano’s 2021 Annual Report Suzano 43 _COMPLIANCE As part of our best practices in corporate governance, our compliance initiatives form the basis that ensures ethics, integrity and transparency in all Suzano’s businesses and in its relationships with stakeholders. We have a Compliance program that is based on best practices in the market, supported by our senior management and implemented according to the pillars of prevention, detection and response. In addition, we have an Anti-Corruption Policy, that applies to all employees. Throughout the year, we carried out virtual communication and periodic training activities for employees. In 2021, we leveraged our initiatives by launching the Compliance program, hosting Integrity Week, promoting a communication campaign (“thumbs up, thumbs down”), and reviewing the Anti- Corruption Policy, which was previously approved by the Board of Directors. In addition, a multidisciplinary team with experience in internal controls, risk management and compliance has been allocated to work exclusively in the identification, treatment and mitigation of the risks involved in the planning and execution of the Cerrado project, ensuring the promotion and implementation of our best practices. To learn about all standards in the area of Compliance, visit our Sustainability Center. _INTEGRITY Suzano manages the fight against corruption through the development and implementation of initiatives that are part of its Compliance program. The internal documents that address this issue are: Code of Conduct; Anti-Corruption Policy; Social and Environmental Investments and Donations Policy*; Manual for Engagement with Public Officials; and Background Check Policy. These documents formalize the anti-corruption guidelines that must be followed by all employees in their daily activities, as well as in our relationships with business partners. The Social and Environmental Investments and Donations Policy establishes the flow that must be followed and the levels of approval for donations, sponsorships and cooperation agreements. The policy also describes the roles and responsibilities of the areas involved in the requests, which must be evaluated and opined on by the Compliance area. Corruption risk management follows the corporate approach described in the Risk Management section (page 42). *Available only in Portuguese Risks are evaluated and prioritized according to their likelihood and impact. All Compliance communications are sent 100% of employees, including leaders. Imperatriz unit (state of Maranhão). Photo: Márcio Schimming. Anti-corruption training is mandatory for all employees and must be completed within 30 days of admission. The content is renewed every two years and complemented by specific and customized topics for sensitive areas, that is, those that are exposed to greater risk of corruption in their relationships. In addition, we implemented improvements in the process of conducting background checks of our business partners. This includes the formalization of risk metrics to measure contracting risks, the standardization of recommendations and enhanced integration between support areas and applicants to enable the company to make more informed decisions. Visit our Sustainability Center to learn about all Suzano’s indicators in the area of anti-corruption. 44 Suzano’s 2021 Annual Report Suzano 45 _OMBUDSMAN GRI 102-17 Confidential and independent, the Ombudsman Channel is available to internal and external stakeholders to answer questions and for submitting concerns and complaints. In 2021, 1,079 complaints were filled and addressed, and 1,039 were resolved. Of the 1,079 complaints received by the Ombudsman Channel, after proper analysis and investigation by the responsible parties, approximately 56% were considered valid. As a result, 528 corrective measures and disciplinary measures were applied, including process improvements/creation of control mechanisms, feedback, guidance and monitoring, just cause terminations, terminations without cause, written and verbal warnings, replacement of contractors and terminations of service contracts. The answers to all complaints made to our external Ombudsman Channel can be accessed through a tracking number that is issued when a complaint is filed. 1,079 complaints were filed and addressed, and 1,039 were resolved in 2021. Rômulo Leonardo da Silva, Forest Maintenance supervisor, Três Lagoas unit (state of Mato Grosso do Sul). Photo: Márcio Schimming. The complaints are filed through a contracted and independent company to ensure anonymity, if that is requested by the person filing the complaint. The reports are investigated independently and impartially, by the appropriate areas and people, who confirm the veracity of the complaints and decide on the necessary measures. Suzano does not tolerate any form of retaliation against people who file complaints through the Ombudsman Channel, which is available in Brazil and in all other regions of the world where we have offices. This process is audited by an external and independent auditor. Learn more by reading our Internal Audit Policy. Reports can be filed in four different languages, 24 hours a day, seven days a week, by telephone, e-mail or through a website. Click here to learn more. To learn more about the grievances and the actions taken, visit our Sustainability Center. Learn about all indicators in this area by visiting our Sustainability Center. _STANDARDS OMBUDSMAN GRI 102-17 Complaints/demands received and addressed by the Ombudsperson Channel¹ Overall number of complaints/demands identified Number of complaints/demands that were addressed Number of complaints/demands resolved Number of pending complaints/requests Number of complaints/demands registered before the period resolved within the year 2019 2020 671 671 631 40 63 912 912 870 42 40 2021 1.079 1.079 1.039 40 42 1. The main complaints refer to inappropriate behavior by a manager, fraud, inappropriate behavior by a colleague, physical conditions of the workplace, remuneration, working hours, benefits, labor issues, deviation from function, selection process/admission/disconnection, inappropriate treatment of a service provider, lack of payment, career/promotion, health and safety, and information security. Of the 1,079 complaints received by the Ombudsperson Channel, after due analysis and verification by the eligible professionals, 528 disciplinary measures were applied, including: process improvement/control creation, feedback, guidance and monitoring, dismissal with just cause, dismissal without just cause, written and verbal warning, replacement of outsourced employee and termination of service provider contract. All complaints are answered by the external Ombudsperson channel and the complainant gets his or her answer through his or her protocol number issued when the complaint was created. ANTI-CORRUPTION Corruption cases1 205-1 Total number of confirmed corruption cases Total number of confirmed cases in which employees were fired or disciplinary measures were taken on account of corruption Total number of confirmed cases in which contracts with business partners were terminated or not renewed on account of corruption- related violations 20192 2020 2021 29 22 3 15 10 3 15 8 4 1. Suzano did not report any cases of public corruption in 2021, and the 15 reported allegations concern private corruption, encompassing the following topics: misappropriation, conflict of interest, manipulation of information, bribery and leakage of information. We further state that none of the cases has had a material impact on the Company's financial statements and information. 2. The 2019 data were reviewed as complaints that were still in the process of investigation within the period were included. Percentage of employees trained on anti-corruption policies and procedures, by functional category¹ GRI 205-2 2019 2020 2021 Administrative Advisor Consultant Coordinator Director Executive director Specialist Executive manager Functional manager Operational Supervisor Overall 89% 100% 93% 88% 53% 75% 89% 85% 83% 79% 89% 83% 96% 70% 98% 97% 88% 91% 100% 98% 97% 84% 95% 88% 91% 0% 94% 93% 82% 75% 95% 96% 93% 84% 91% 87% 1. The indicator does not include employees on leave during the referred period, those hired less than a month beforehand, apprentices and Formare students, which accounts for the divergence in the total number of employees indicators. Advisors do not have access to the Workplace and do not receive internal notices, thus no notices were sent during the period. 46 Suzano’s 2021 Annual Report Suzano 47 Eucalyptus plantations and native forests in the interior of São Paulo state. Photo: Sergio Zacchi. _SUSTAINABLE FINANCE Suzano is one of the world’s largest issuers of sustainability-linked bonds (SLBs), which are financial instruments that link the cost of funds raised from investors to the fulfillment of sustainability commitments. In 2020, the company issued its first bond based on the SLB Principles, becoming the second company in the world and the first in the Americas to issue a bond of this kind. In 2021, Suzano issued two additional sustainability-linked bonds that, for the first time, were linked to something other than an environmental or social target: a diversity, equity and inclusion target. The two targets set by Suzano for the bond issued in June were a 12.4% reduction in the volume of water withdrawn for industrial operations, from 29.8 m³/tonne in 2018 to 26.1 m³/tonne by 2026, and an increase in the percentage of women in leadership positions (manager and above), from 16% in 2019 to 30% by 2025. Both targets are in line with our Commitments to Renewing Life. This US$1 billion bond, maturing in 2032, has a 3.28% yield and a 3.125% coupon per annum, and marked the first time a Latin American company linked a diversity and inclusion target to a SLB. In September 2021, the company issued another SLB linked to the same commitments and maturing in 2028. The funding attracted a total demand of US$3.4 billion, or 6.8 times the size of the transaction, completed with the issuance of US$500 million in international bonds. The bond issued will have a 2.5% coupon per annum. The total return to investors, of 2.7% per year, is the lowest rate in history for a bond with a seven-year term issued by a Brazilian company. This bond is structured such that if the company fails to reach the proposed targets, the interest rate for the remuneration of investors will be increased by 12.5 basis points for each target not reached by the deadline, up to an additional 25 basis points. In addition to the SLBs, in February 2021 Suzano signed an export prepayment agreement in the form of a Sustainability Linked-Loan (SLL) in the amount of US$1.57 billion, at LIBOR plus 1.15% per annum and an average term of 60 months, with final maturity on March 8, 2027. This transaction has environmental performance indicators associated with targets for reducing the intensity of greenhouse gas emissions and industrial water withdrawal. The funding attracted a total of US$3.4 billion, or 6.8 times the size of the transaction, completed with the issuance of US$500 million in international bonds. To learn more about the bonds based on the SLB Principles issued by Suzano, read the SPO and Framework. 48 Suzano’s 2021 Annual Report Suzano 49 NEW DEBT PROFILE Between 2020 and 2021, Suzano raised a total of US$2.25 billion in bonds linked to sustainability targets. Including the new transactions in 2021, the company already has 39% of its debt linked to sustainability commitments. At the end of 2019, this percentage was just 9%. Capital market Click here to access the ISS ESG report. 2016/2017 2020 2021 2021 2021 SUZANO SLB – 2031 • 2nd Global SLB • US$1.25 billion • 15% Greenium (approximately US$11.8 million in savings) 1ST GREEN BOND SUZANO • US$700 million 1ST GREEN BOND FIBRIA • US$700 million • Green Agribusiness Receivables Certificates (CRA) R$1 billion SUZANO’S SLL • US$1.57 billion SUZANO’S SLB – 2032 • 1st SLB linked to diversity in Latin America • US$1 billion SUZANO’S SLB – 2028 • US$500 million • 2nd bond linked to D&I 3% Green Bond 97% Traditional 9% ESG DEC 2019 39% ESG DEC 2021 31% Sustainability-Linked 8% Green Bond 61% Traditional The ESG Call was a live broadcast event. In the picture, Marcelo Bacci, Executive Director of Finance, Investor Relations and Legal. ESG CALL Suzano’s ESG Call, held for the first time in June 2021, addressed the objectives, issues and challenges related to the major social, environmental and governance commitments made by Suzano to be fulfilled by 2030. The event was a concrete example of the transparency and open dialogue that characterizes the way Suzano addresses topics that are relevant to the business. The meeting was also an excellent opportunity for the company to announce a new Commitment to Renewing Life related to biodiversity: connecting, by 2030, half a million hectares of priority areas for conservation in the Cerrado, Atlantic Forest and Amazon biomes. The meeting was also broadcast live to different stakeholders, including company employees via Workplace. Year after year, we seek to expand the ways we communicate with our audiences, including via our social media accounts, our various online platforms or, whenever possible, face-to- face discussions facilitated by the company to continuously strengthen our internal and external connections. The event was attended by Suzano leaders and mediated by Pavan Sukhdev, a specialist with global influence and extensive experience in innovative solutions that promote sustainability. To watch the ESG Call, click here. 50 Suzano’s 2021 Annual Report Suzano 51 05 S E E Y O L P M E LEADERSHIP LEADERSHIP 52 Suzano’s 2021 Annual Report 52 Suzano’s 2021 Annual Report Suzano has been evolving as an organization that values people and works to create a more diverse, inclusive and respectful work environment. Our “strong-yet-gentle” culture, demonstrated by people who inspire and transform, has enabled us to put into practice our short-, medium- and long-term strategies, through which we will achieve, together, the company’s objectives, while generating and sharing value with the whole society. GRI 103-1, 103-2, 103-3 (Material topic: Diversity and Inclusion) Thaiza Alexandre de Sousa, Production Recovery assistant, Imperatriz unit (state of Maranhão). Photo: Márcio Schimming. Employees 53 _ CONFIDENT IN A “BETTER NEW” The year 2021 brought many uncertainties. The collaborative spirit that has been experienced since the beginning of the pandemic was essential for the company to do well during this time. Determined to overcome this crisis together, we continued to implement projects to improve the mental health and quality of life of everyone in the organization. To improve our approach to health from a global perspective, we created opportunities to enable more active listening and to allow our employees and their families to relax. We reinforced dialogue during these times of remote work and made the topic of corporate happiness a priority on the agenda of our leaders, since we believe that “the better new”—the way we started referring to the post-pandemic world—can, indeed, be better than before. EMOTIONAL STRENGTH The new work-from-home model adopted by our employees in administrative functions required adjustments in the routine of our teams. The same was true for operational workers, who, because Suzano’s activities are considered essential, continued to work in person and without interruption in our operations, following all health and safety protocols. Whenever necessary, employees with suspected or confirmed cases of COVID-19 were put on leave, which created a temporary work overload for other people in their team—a fact that was also taken into account by the company. Suzano understands that the creation of long-term value depends on constant dialogue with its stakeholders. To learn more, visit our Sustainability Center. Márcia Cristina da Silva Leon, Fiber Line operator, Três Lagoas unit (state of Mato Grosso do Sul). Photo: Márcio Schimming. In 2021, we created a working group focused on corporate happiness and we are increasingly investing in training on humanized leadership. As part of this effort, we invited Tal Ben-Shahar, a Harvard professor of Positive Psychology and a Columbia professor of Happiness Studies, to give a lecture that helped our executive and functional directors understand what happiness is and how to incorporate it into the company. We also launched the Ecoa platform (“Echo” platform), a learning ecosystem in the area of health and safety, through which we guide leaders on how to build bonds of trust within the organization, as well as other behavior aspects that are relevant to the company and our leadership. We remain dedicated to initiatives to improve the quality of life of our employees, who still face the stress and pressure caused by COVID-19. Among them, we continue to offer medical and psychological support for employees and their families, in addition to facilitating physical and mindfulness activities, among other well-being initiatives. _ WE ARE PLURAL Diversity, equity and inclusion (DE&I), a topic that began to be addressed by the company in 2016 in an organic and voluntary way, became more formally structured through the Plural program. Plural seeks to ensure that employees are respected and can express their uniqueness, to increase representation and to encourage universal participation in five areas: generations, LGBTQIAP+, Black people, women, and people with disabilities. In 2021, the program included several internal activities within the diversity, equity and inclusion agenda, such as training for executives and employees; surveys; virtual meetings with influencers and experts; employer branding initiatives to attract talent; and networking with executives with an active profile on LinkedIn. To learn more about Plural, click here to visit the program’s website. 54 Suzano’s 2021 Annual Report Employees 55 COMMITMENTS ON DIVERSITY, EQUITY AND INCLUSION A work environment in which people have equal opportunity and feel respected, safe and welcomed helps to develop potential, transform behaviors and generate value for all. into short-term goals that are linked to the compensation of our leaders. In addition, the target related to the inclusion of women in leadership positions (managers and above) is an indicator in two sustainability-linked bonds. To highlight the importance of this topic to our business strategy, the main aspects of diversity, equity and inclusion are expressed in long-term commitments, which are translated To fulfill our commitments, we have been working on the three axes described to the right: Evili da Cunha Silva, Processes and Quality engineering trainee, Imperatriz unit (state of Maranhão). Photo: Márcio Schimming. ATTRACTING/ HIRING DEVELOPMENT ENGAGEMENT/ RETENTION We launched a survey to measure how inclusive our environment is (learn more below) and hosted lectures on LGBTQIAP+ rights, racism and careers for people with disabilities. We also held discussions with executives and hosted events to celebrate dates and months that are important to each affinity group, reaching more than 40,000 people. The progress of people in minority groups is monitored at each stage of our selection processes, by department and job category. We saw an increase of 1.7 percentage points in the representation of women, which reached 18.4% of Suzano’s total. In 2021, 55% of the people hired for our Internship program were women, 50% were Black and 13% were LGBTQIAP+. For our Trainee program, 60% of the people hired were women, 37% were Black, 30% were LGBTQIAP+ and 3% were people with disabilities. We trained women and people with disabilities for our industrial and forestry operations, and provided technology training for Black employees through the Afrodev program (click here to learn more). In 2021, our training program also included diversity, equity and inclusion (for 100% of the People and Management team); racial literacy (for Suzano’s directors); how to self-declare in racial and ethnic terms; and the launch of a permanent self-declaration. Finally, we approved a program, called Elos D+, to accelerate the career of women and/or Black employees, which will include approximately 350 participants starting in 2022. 56 Suzano’s 2021 Annual Report Employees 57 _LGBTQIAP+: endorsement of Pride Skill (an initiative by Procter & Gamble to encourage people to add “pride” to their list of professional skills); start of a project to adapt bathrooms in the units; a survey on inclusion in our international offices; development of training content; and internal and external activities. We aim to have a 100% inclusive environment, in which people can feel welcomed, respected and safe to be who they really are within the organization. We achieved positive results with regard to the degree of inclusion of this group, which was confirmed by an internal survey (see results on the next page). _Generations: revitalization of the affinity group; hiring of a specialized consultant to create the strategic plan for the year; increased discussion on the topic of happiness connected to generations; launch of the web series Hiring 40+, in partnership with Infojobs and Hub40+; and meetings and events to promote education on ageism. _People with disabilities: creation of a hiring challenge for business partners and an agenda of recognition for engagement in this area; administration of a survey on inclusion in our international offices; adaptation of selection processes and other internal career development initiatives to make them more inclusive; increased use of Brazilian sign language (libras) in events; development of awareness-raising initiatives. We improved accessibility in our common areas, in line with our projected commitments for 2025. Suzano’s accessibility went from 38.44% to 53%. The units where we made the most progress in terms of structural renovations were Suzano and Belém. Natani Martins Silva, Logistics assistant, at the Aparecida do Taboado (state of Mato Grosso do Sul) Intermodal Terminal. Photo: Suzano's image bank. Franciele Cristiane Albino, assistant operator in the Pulp Packaging Line, Limeira unit (state of São Paulo). Photo: Fernando Cavalcanti. MAIN INITIATIVES AND RESULTS GRI 405-1 In 2021, to continue to advance issues related to diversity, all affinity group carried out specific initiatives. In addition to the activities in the attraction/hiring, development and engagement/retention axes previously mentioned, other initiatives during the year included: _Women: endorsement of the Mulher 360 Movement (“Women 360” Movement) and the Mulher Florestal Network (“Forestry Women” Network); monitoring of the representation of women at each stage of selection processes; and literacy and engagement activities; The company made significant progress with regard to the number of women in leadership positions (functional managers and above): from 15.8% in 2019 to 22.5% at the end of 2021. _Black people: proactive identification of Black talent in the market for future leadership positions at Suzano; sponsorship of the Yes to Racial Equality Forum; support for the Yes to Quota campaign; and celebration of Black Culture month, which included an external virtual live event on Afrofuturism. Considering just our Commitment to Renewing Life, which focus only on functional management positions and above, the increase was 21%, from 71 Black managers and directors to 86 in December 2021. According to these number, Black people currently occupy 19.7% of senior leadership positions at Suzano. 22.5% OF OUR SENIOR LEADERSHIP ROLES ARE OCCUPIED BY WOMEN In 2021, we had a 31% INCREASE IN THE NUMBER OF BLACK PEOPLE working as supervisors, coordinators, managers and directors 58 Suzano’s 2021 Annual Report Colaboradores(as) 59 _STANDARDS Employees, by functional category1 GRI 102-8 Administrative Consultant Coordinator Director Executive Director Specialist Executive Manager Functional Manager Operational Supervisor Chairperson Total 2019 3,222 595 304 20 12 78 92 289 8,978 307 1 13,898 2020 2,998 612 300 17 11 47 95 294 10,208 327 1 14,910 2021 3,349 706 361 21 13 61 117 326 11,341 401 1 16,697 Eduarda Cristina Silvino Esteivam, Occupational Safety assistant (front) and Gina Kércia de SousaPimentel, Occupational Safety supervisor (back), Três Lagoas unit (MS), (state of Mato Grosso do Sul). Photo: Márcio Schimming. 1. The data include the collaborators of Suzano (which covers Facepa and Futuragene) and of Ecofuturo. SURVEY ON INCLUSION In addition to these reported initiatives that are part of Suzano’s DE&I plan, we carried out a survey to assess how inclusive our company’s environment is. The study, developed by GlobeScan, was conducted by the company in partnership with Goldenberg Diversity and Inclusion Consulting. The objective was to measure the degree of inclusion perceived by our employees with regards to three pillars: governance, culture and experience. In 2021, we conducted two rounds of survey, covering all company employees. Our samples included 10% of the total number of employees in our international offices and 30% in Brazil. The results of this pioneering initiative enabled us to identify the perceptions regarding inclusion in the work environment, not only in the pillars previously mentioned, but also with regard to Suzano’s five DE&I focus areas, as well as per location, job category and other variables. Based on the results, we identified priorities that were addressed throughout the year, through activities linked especially to careers, a common pain point for all affinity groups. Since our long-term commitments include ensuring a 100% inclusive environment for LGBTQIAP+ and people with disabilities, here are the results of a survey that measured how inclusive our company is regarding these groups: LGBTQIAP+ 92.4% in February 92.6% in August People with disabilities 91.8% in February 91% in August Suzano employees by type of employment contract and gender1 GRI 102-8 2019 2020 2021 Male Female Total Male Female Total Male Female Total Determined period 0 0 0 0 0 0 0 0 0 Undetermined period 11,750 2,148 13,898 12,628 2,282 14,910 13,865 2,832 16,697 Total 11,750 2,148 13,898 12,628 2,282 14,910 13,865 2,832 16,697 1. The data include the collaborators of Suzano (which covers Facepa and Futuragene) and of Ecofuturo. Employees, by region1 GRI 102-8 North Region Northeast Region Midwest Region Southeast Region Southern Region Foreign Total 2019 985 4,176 1,790 6,606 86 255 2020 981 4,282 2,061 7,299 76 211 2021 869 4,790 2,737 7,958 79 264 13,898 14,910 16,697 1. The data include the collaborators of Suzano (which covers Facepa and Futuragene) and of Ecofuturo. 60 Suzano’s 2021 Annual Report Employees 61 Number of third party employees, by gender¹ GRI 102-8 Men Women Total 2019 2020 2021 21,016 1,641 22,657 20,152 1,356 21,508 18,902 1,473 20,375 1. The data refers to third party employees of companies that provide services on a permanent basis within Suzano S.A.'s areas. Employees, by diversity1 GRI 405-1 Blacks People with disabilities (PwD)2 2019 2020 2021 Male 45% Female Total Male Female Total Male Female Total 8% 53% 46% 8% 54% 45% 9% 54% 1.7% 0.3% 2% 1.7% 0.3% 2% 2.3% 2.8% 2.4% 1. The data include the collaborators of Suzano (which covers Facepa and Futuragene) and of Ecofuturo. 2. PwD is the acronym used to refer to people with disabilities. Percentage of Suzano's LGBTQIAP+ employees1 GRI 405-1 2019 n/a 2020 2% 2021 4.5% 1. As of 2020, Suzano began mapping the company's LGBTQIAP+ public, after an initiative to voluntarily indicate sexual orientation, identities and gender expression. The acronym LGBTQIAP+ stands for lesbian, gay, bisexual, transgender, queer, intersex, asexual, pansexual and other non-heterosexual people not covered by the previous letters "+". The data include the collaborators of Suzano (which covers Facepa and Futuragene) and of Ecofuturo. Percentage of Local hiring of higher management members GRI 202-2 2019 51% 2020 51% 2021 50% To learn about other indicators, visit our Sustainability Center. Luciane Amparo, Occupational Safety manager, and William Leme Machado, Occupational Safety coordinator, Três Lagoas unit (state of Mato Grosso do Sul). Photo: Márcio Schimming. ENTRY PROGRAMS Suzano’s initiatives to train and attract new talent prioritize the hiring of local labor to support the development of the municipalities where the company operates. Among these initiatives, we created the Capacitar program (“Training” program), focused on training workers for the industrial area, and the Cultivar program (“Cultivate” program), aimed at employees in the forestry area. In addition, we have programs for apprentices, interns, trainees and young executives. In our last Raízes do Futuro internship program (“Future Roots” program), for new interns starting in the first half of 2022, we expanded our connections to different regions of Brazil. See numbers below: Valdeir Augusto Goncalves, Social Development analyst, Ribas do Rio Pardo (state of Mato Grosso do Sul). Photo: Márcio Schimming. Of the 140 OPEN POSITIONS These numbers represent a 138% increase in positions compared to the previous cycle, as well as an increase of { { 55% WERE FILLED BY CISGENDER WOMEN 50% BY BLACK PEOPLE 13% BY LGBTQIAP+ 2% IN THE NUMBER OF CISGENDER WOMEN 4% IN THE NUMBER OF LGBTQIAP+ 17% IN THE NUMBER OF BLACK PEOPLE 100% IN THE NUMBER OF PEOPLE WITH DISABILITIES 62 Suzano’s 2021 Annual Report Employees 63 Leonardo dos Passos Rodrigues, Drying operator, Imperatriz unit (state of Maranhão). Photo: Márcio Schimming _ OCCUPATIONAL HEALTH AND SAFETY SITUATIONS REPORTED The Health, Safety and Quality of Life area operates directly in all Suzano units that are covered by the Health and Safety Management System, based on the guidelines of ISO 45001:2018, OSHAS 18001 and ISO 9000, Standard Labor Regulations, the PDCA cycle and in good national and international practices. 2020 2021 61.04% increase 178,690 287,778 In 2021, we continued to implement the Cuidar program (“Caring” program), a people and process development initiative focused on the evolution of a safety culture. We executed 99% of the activities that had been planned for the year (totaling 691 initiatives), as follows: _ 100% of the activities planned for the Paper industrial units, ports and distribution centers _ 99% of the activities planned for the Forestry and Pulp industrial units _ 98% of the activities planned for the Consumer Goods industrial units team together with an external consultant. In 2021, the results of this evaluation showed an 8.77% improvement compared to the previous year. This progress demonstrates that this culture continues to evolve as a value that is part of our routine. We invest in technology and promote a collaborative management model through which all employees and contractors may report situations that deviate from our standards and that must be dealt with by the leader of the responsible area. The measures taken are monitored through the Safety Management Indicator (SMI), which is reported monthly to all levels of Suzano. The Cuidar program follows the Hearts & Minds methodology, developed by the Energy Institute, which introduces dimensions in occupational safety to guide the creation of effective actions. Following this methodology, we carry out assessments of the maturity of the company’s safety culture in all sites and our progress is monitored by an internal We strive to avoid accidents and have a robust structure to evaluate incidents, which ensures that the measures we take are effective. Suzano’s operational units have structured safety committees that are divided into smaller subcommittees that work in discussions, analyzes and implementations related to health and safety and in the activities carried out by the Internal Commission for Accident Prevention (CIPA, for its initials in Portuguese). 2021 RESULTS In 2021, we had three fatalities involving outsourced workers within Suzano’s forestry operations. We deeply regret these incidents. Together with the companies responsible for hiring these employees, we offered our support to their families. Each case was extensively analyzed and, based on these assessments, we revised processes and behaviors to incorporate improvements and to ensure that we have even stricter procedures aimed at the safety of our employees. We had a 19% improvement in the indicators used to assess our safety tools. SMI: 89%, COMPARED TO 82% IN 2020 Safety Quality Indicator (SQI): 91%, COMPARED TO 86% IN 2020 Visit our Sustainability Center to learn more. Suzano's safety indicators IGS (Safety Management Indicator) IQS (Safety Quality Indicator) IS (Safety Indicator - average of IGS and IQS)¹ 1. Data is not available for 2019, as it began to be reported in 2020. Overall Safety Indicator (average between SMI and SQI) 91%, COMPARED TO 84% IN 2020 2019 89% 90% n/a 2020 82% 86% 84% 2021 89% 91% 91% Health and safety fees for employees and contractors¹ GRI 403-9 2019 2020 2021 Results benchmark Results benchmark Results benchmark Severity rate1 104.00 24.00 33.00 24.00 310.00 30.00 Lost-Time Injury Frequency Rate2 (LTIFR) - Contractors Total Recordable Injury Rate3 (TRIR) 0.49 2.18 0.68 2.54 0.52 1.80 0.44 1.96 0.51 1.92 0.47 1.62 1. Rate calculation: (days away) x 1,000,000 / (no. of man-hours worked). 2. Rate calculation: (leave of absence cases) x 1,000,000 (no. of hours worked). 3. Rate calculation (leave of absence cases + no leave of absence) x 1,000,000 (no. of hours worked). Health and safety figures for employees and contractors GRI 403-9 Number of fatalities as a result of work-related injuries Number of injuries with leave of absence Number of reportable work-related injuries 2019 2020 2021 1 44 195 0 42 146 3 40 120 64 Suzano’s 2021 Annual Report Employees 65 MINIMIZING THE EFFECTS OF THE PANDEMIC In 2021, Suzano continued to share guidelines and preventive health and safety measures to fight COVID-19, to protect employees and their families, service providers and society as a whole. Our short-term initiatives included our support to vaccinate 100% of our employees; the purchase of oximeters to be loaned to employees who tested positive for COVID-19, as recommended by the occupational health areas of each unit; the continuity of remote work for employees whose activities do not require their physical presence; periodic reinforcement of safety and health measures; free online psychological support; and other measures. In 2021, we had 2,757 cases and 20 deaths from COVID-19 among our employees, which we deeply regret. Focused on the long term, we have a group that brings together employees from different areas of the company and that continued to discuss cultural and behavioral changes caused by the pandemic. These changes can serve as input to help develop future scenarios, activities and solutions and identify progress made in people management. For more information on all our initiatives in the fight against the pandemic, visit our Suzano Against the Coronavirus page. In other chapters, such as Government and Organized Civil Society, Communities and Suppliers, you will find initiatives implemented to minimize the effects of the pandemic in other parts of Suzano’s value chain. Thaiza Alexandre de Sousa, Production Recovery assistant, Imperatriz unit (state of Maranhão). Photo: Márcio Schimming QUALITY OF LIFE As Suzano seeks to preserve emotional well- being and balance in situations of insecurity and uncertainty, the company has strenghthened its attention to the mental health of its employees. Continuing with the initiatives implemented in 2020, we offered to our employees an online counseling platform completely free of charge. We also concluded the development of our Faz Bem Suzano app (“Good for You Suzano” app), which contains resources aimed at promoting and preserving physical and mental health. At the same time, we continued to host virtual events that discussed issues such as quality of life, mental health and physical health. In addition, to stress the fact that we must take care of ourselves inside and outside our work environment, we developed an initiative called Cuidar em Todo Lugar (“Caring Everywhere”). Through videos, games, lectures and other activities, we want to promote discussions and reflections among friends and family members. Layara Oliveira, Communications analyst (left), Deborah Zaine do Nascimento Felipe de Carvalho, Drying Machine operator (center), and Vinícius Ferreira Mendes (right), Logistics analyst, Imperatriz unit (state of Maranhão). Photo: Márcio Schimming. _Voluntariar Program The Voluntariar program (“Volunteer” program), which has been in place for more than two decades, aims to strengthen Suzano’s relationship with neighboring communities by encouraging employees, service providers, family members and partners to participate in volunteer initiatives supported by the company. These initiatives aim to foster social participation and drive positive changes in society through collaborative work to promote education, sustainability, diversity and inclusion. The Voluntariar program offers several opportunities to participate in initiatives such as Contributing to the Future and JA Startup, among others. Another important example is the Formare Project (“Educating” Project), which since 2005 has prepared young people in situations of social vulnerability for the job market (in partnership with the Iochpe Foundation). In 2021, we expanded Formare to two additional Suzano units (Aracruz and Três Lagoas), bringing the total to five units involved (in addition to the new ones, the Suzano, Mucuri and Imperatriz units already participated in the project). As a result, Suzano is one of the companies with the highest number of Formare Schools in Brazil, training 100 young people a year and reinforcing our commitment to diversity and people development. In 2021, the five classes included 52% of women and 65% of Black people. Aligned with the company’s strategy, and as part of our Commitments to Renewing Life and our Cultural Drivers, the Voluntariar program achieved the following results in 2021: _1,736 volunteers _ 10% engagement, considering the total number of employees (58% men and 42% women) _ 34% leadership engagement (managers, executives and directors) _ 7,347 volunteer hours _ 42 participating units, from 14 regions (13 Brazilian states and Switzerland) _ 14,890 people benefited (directly and indirectly) 66 Suzano’s 2021 Annual Report Employees 67 _DIGITAL TRANSFORMATION DESIGN OPEN INNOVATION We established design as a creative approach to solving complex problems at Suzano and also as a way to foster an innovation mental model based on the concepts of empathy, customer-centricity, collaboration and experimentation. Throughout the year, we held more than 30 co-creation workshops including different areas. One of the best examples of user experience projects was the ideation of the Forest Control Tower, a hub that integrates and centralizes information from forestry operations to guide agile and data-driven decision making. Learn more about the Tower in the Planet chapter. To spread the culture of innovation, the Design team also led programs, such as REIMAGINE! And DigitalLabs, which impacted more than 2,500 people in 2021. Rilari Machado de Castro and Jonathan Silva Alves, Forestry Control Tower operators, Imperatriz unit (state of Maranhão). Photo: Suzano's image bank. AN INCREASINGLY AGILE AND COLLABORATIVE ENVIRONMENT At Suzano, digital transformation has established itself as a movement that consistently propels us in pursuit of a more agile, data-driven organization, to enable better decisions that are based on data and less on assumption. Digital transformation initiatives place our customers at the center of the development of solutions, while constantly encouraging experimentation and collaboration among our dedicated digital teams (squads). Learn more about Suzano’s work in digital transformation. AGILITY The agile transformation movement, started in 2019, is gaining importance and relevance every day. The company ended 2021 with more than 80 squads, located across more than 15 areas, working in the agile model. A survey conducted in December showed that 96% of the teams feel happier and more satisfied when working on agile methods, 95% increased their focus on achieving their deliverables and 84% improved the quality of their deliverables. The company’s priority is to create an agile transformation movement that is organic, as a way to increase its breadth, depth and continuity. We ended 2021 with a community of more than engaged in agility efforts and more than 1,200 people 30 agility ambassadors distributed throughout Suzano units in Brazil and international offices. In 2021, the Open Innovation area focused on introducing and explaining to the organization the main concepts related to open innovation and their practical application in business challenges. To that end, the area held events such as pitch days, lectures by entrepreneurs and meetings in which startups presented successful case studies from other industries. We developed programs to facilitate increased participation of Suzano employees in open innovation initiatives and implemented a mentoring program for startups, which created closer connections with company executives. All our efforts led us to be recognized as a top 10 company in the 2021 100 Open Corps general ranking and the top company in the Pulp and Paper category in the 100 Open Startups ranking. DIGITAL CLUSTER Our digital transformation strategy resulted in an increase in the number of data scientists and engineers working at Suzano. The solutions created generated more than R$80 million in cash for the company, which, added to the Open Innovation results, totaled approximately R$110 million in 2021. DIGITAL ACADEMY OUR EVOLUTION IN THE LAST TWO YEARS 900+ startups evaluated in the last 18 months 40+ open innovation initiatives across Suzano’s production chain in areas such as Forestry, Industrial, Logistics and SG&A 9 proof of concept (PoC) projects and 10 scaled projects The Digital Academy was created to train Suzano employees in the subjects of data science, agility and innovation using the Project Base Learning method, which includes concepts that people learn and apply to solve real business challenges. 50+ open innovation ambassadors In 2021, the Digital Academy trained more than 110 people, of whom 18 started new digital careers as data scientists, “agilists” or open innovation consultants. We concluded the first class of Afrodev, a program for training and hiring Black people for the area of web development and data science (learn more by clicking here). 26 entrepreneurs/startups and mentors in the Mentoring program 68 Suzano’s 2021 Annual Report Employees 69 Suzano contributes to bioeconomy through the broad application of the concept of innovability (innovation in service of sustainability) in its business. Through collaboration, the company seeks to offer sustainable and innovative solutions based on eucalyptus. In this chapter, you will learn about initiatives that include our products and services and directly impact consumers and our customers. GRI 102-6, 103-1, 103-2, 103-3 (Material topic: Innovability) 06 S R E M O T S U C BIO BIOECONOMY Lab, Limeira unit (state of São Paulo). Photo: Fernando Cavalcanti. 70 Suzano’s 2021 Annual Report Customers 71 Franciele Cristiane Albino, assistant operator in the Pulp Packaging Line, Limeira unit (state of São Paulo). Photo: Fernando Cavalcanti. _PULP A VOLATILE COMMODITY The pulp market faced significant volatility in 2021, with a very rapid rise in prices, which reached historic levels in the first months of the year. As a result, our average price was much better than in 2020. On the demand side, one of the key factors that impacted pulp prices was the good performance of paper segments in all regions. On the other hand, pulp supply to the market was directly affected by logistical issues throughout the global supply chain due to a lack of shipping containers, the closing of ports in China and delays in the delivery of ships. For Suzano, with sales over 10.6 million tonnes of pulp in 2021, it was no different. However, despite these challenges, the company guaranteed the supply to its customers and managed to achieve an EBITDA growth of more than 57%. Thanks to a strong strategy, our supply chain avoided supply interruptions to our customers and maintained the company’s high level of service. The year also brought increased opportunities to engage in projects for the application of our fibers with strong sustainability attributes. More and more, customers in the United States and European countries value suppliers who are benchmarks in sustainability and can offer more than good prices and reliable supply. In 2021, we were able to engage with partners who are interested in working together to develop environmental and social solutions, and advanced discussions on, for example, how to help them develop products that use raw materials from renewable sources and may contribute to replace products from fossil sources. We know that this trend will be increasingly important, and we will have to face great challenges, including the pursuit of technology and new materials, for example. However, we believe that this is the way to plant a better future. EUCAFLUFF® IN EVOLUTION After years of research and the growing acceptance of Eucafluff® by global customers in Asia, Brazil, Europe and the United States, Suzano introduced the most evolved version of the product at INDEXTM, the world’s leading nonwovens event. Held in Geneva, Switzerland, in October, the event proved to be an opportunity for the company to reaffirm the significant competitiveness of this product developed from eucalyptus fiber. Eucafluff® is the world’s first bleached eucalyptus kraft fluff pulp and is used in disposable absorbent and personal care products such as infant and adult diapers and sanitary pads. In the path toward innovability, this product has important advantages in terms of environmental footprint (which were confirmed by a life cycle analysis reviewed by KPMG that compared it to the pine fluff produced in the southeastern United States). Eucafluff® has been a successful product for Suzano and the company intends to explore new growth opportunities in the coming years. PARTNERSHIPS included: _BOB’S AND COCA-COLA: Suzano started to supply Bluecup Bio® paperboard for cups to Bob’s restaurants in São Paulo and the Federal District, as part of the Coca-Cola Alphabet campaign. Bluecup Bio® is the first Brazilian paperboard for cups made from a renewable and plastic-free source. _iFOOD: This partnership aims to reduce the use of plastic items in food deliveries to make them more sustainable. One of these solutions is Greenbag®, a paper used in the production of bags in partnership with Papeltec Embalagens Ltda. Suzano and iFood also teamed up to launch the Packaging of the Future challenge, in June 2021, to support the development of sustainable and plastic-free packaging for the food delivery sector. _AMBEV, COLGATE-PALMOLIVE AND AMBIPAR: This partnership aims to promote a circular economy through a waste collection and recycling project that includes a contract with Triciclo, a company of the Ambipar Group. Created in 2021, the collection sites, which have been located in Makro stores in São Bernardo do Campo (since October) and Guarulhos (since November), will be available for 12 months. _JOHNSON & JOHNSON CONSUMER HEALTH: This partnership resulted in the creation of new packaging, now made of paper, for the Sempre Livre® Adapt Plus Eco sanitary pads, which have 50% less plastic (compared to the regular Sempre Livre® Adapt Plus version). This packaging is made with Suzano’s flexible paper, Greenpack®. Through this pilot project, the product is currently available in Carrefour stores (Northeast, Midwest, South and Southeast regions) and RaiaDrogasil drugstores (North, Northeast and Southeast regions). _PAPER AND PACKAGING PAPER AND ITS POSSIBILITIES Suzano has important competitive advantages: a portfolio that includes many options for several different applications and a unique distribution model that keeps us close to our 35,000 customers in Brazil and to our national salesforce of more than 300 people. While paying attention to new opportunities, the future of the paper market and the challenges that came with the pandemic, Suzano’s Paper and Packaging Unit continued to work on innovability and product diversification. In addition to the paper for specific segments previously mentioned, we have special paper options for medication package insert, bags (Greenbag®) and flexible packaging (Greenpack®), among others. One of our commitments is to offer, by 2030, 10 million tonnes of products from renewable sources, developed from eucalyptus biomass, which can replace materials from fossil sources. As part of the solution to this challenge, we have partnered with several companies. In 2021, our main partnerships 72 Suzano’s 2021 Annual Report Photo: promotional. Customers 73 Luana Alves Araújo, Baling operator, Três Lagoas unit (state of Mato Grosso do Sul). Photo: Márcio Schimming. Cerrado project, Ribas do Rio Pardo (state of Mato Grosso do Sul). Photo: Márcio Schimming. INNOVABILITY IN THE CERRADO STARTING IN 2024, Suzano will increase its annual installed pulp production capacity by more than 20%, thanks to the construction of a new manufacturing unit with the capacity to produce 2.55 million tonnes of pulp per year. For this to happen, Suzano is making one of the largest private investments in the country, totaling R$19.3 billion, and transforming the Ribas do Rio Pardo community, in the state of Mato Grosso do Sul, a town with 25,000 people located 100 kilometers from the state capital, Campo Grande. WITH THIS NEW UNIT, Suzano will have the largest single-line pulp plant in the world, characterized by high competitiveness and eco-efficiency. The Cerrado project, named after its geographic location, reinforces our relevance in the production of hardwood fiber through successful projects, in addition to enabling a lower cash production cost that is very difficult to replicate, especially due to its scale. This project reflects two of our five strategic business avenues, namely “Be best-in-class in total pulp cost” and “Maintain relevance in pulp through good projects”. We will rely on state-of-the-art technology to ensure stability and performance at the lowest cost with the lowest environmental impact, while ensuring a fair return to our shareholders and helping to lift people out of poverty. 19.3 billion IN INVESTMENTS to increase pulp production WORKING TOWARD INCREASED CARBON EMISSIONS AND ENERGY ECO-EFFICIENCY THE NEW UNIT is an important step in our long-term strategy since it leverages the positive impact of our commitments. Examples of our impact include the Suzano Education program, which has already benefitted 4,000 local students, and professional training classes in the industrial and forestry areas offered in partnership with the Brazilian Service for Industrial Training (SENAI, for its initials in Portuguese). In addition to social projects, environmental programs will be implemented during and after the unit’s construction period, helping to make this unit our most eco-efficient one in terms of carbon emissions and energy use. THE SUCCESS of this project depends on factors that go beyond technical, engineering, and social and environmental management issues. Its viability, especially with regards to social aspects, includes a strategy that encompasses the political, economic, technological and environmental dimensions, serving as a basis for the creation of this region’s legacy. Therefore, Suzano seeks to intensify dialogue with state and municipal governments and entities representing the local community, while also partnering with companies that supply equipment and systems, among other project needs. These companies include Andritz, Veolia, Suez, Siemens, Hitachi Energy and Weg. Visit our Investor Relations website to learn more about the project. Sit amet, consectetuer adipiscing elit, sed diam nonumlorem ispum HOME CTETUER ADIPISCING 74 Suzano’s 2021 Annual Report Customers 75 PAPER TRANSFORMATION JOURNEY Our evolution in the paper segment involves applications that incorporate the concept of innovability, to enable us to increase our offering of renewable alternatives to the market through transformational or incremental development of paper for bags, straws, cups and packaging. Continue reading to learn about our progress during the year. MULTIPLE PORTFOLIO The biggest challenge in the use of paper in items such as straws and cups, for example, is to ensure that it has similar functionality to plastic. To do that, we have developed a portfolio of multiple barriers—biodegradable and recyclable chemicals that, when applied to the paper’s surface, provides sealability attributes (resistance to moisture, steam and oxygen), making the paper much more competitive from a technical standpoint. In 2021, Suzano perfected the application of barriers for cold liquid in Bluecup Bio®, a line of biodegradable, compostable and renewable-source paperboard for cups that is now regularly sold at Bob’s restaurant stores. We have also made progress with regard to our solution for hot liquids, which will be tested by one of our major customers in 2022. The progress in the development of barriers became possible because Suzano mapped its ecosystem (internal resources and partnerships with research centers, startups and local and global customers) to identify the available knowledge, establish connections and, thereby, find co-created solutions. Finishing Will, Limeira unit (state of São Paulo). Photo: Fernando Cavalcanti. OPPORTUNITY Following the rapid expansion of e-commerce in 2021, there has been an increase in demand for cardboard in the domestic market. Although Suzano does not participate in this segment, the company produced, during the year, a specific uncoated paper for the segment of sheets and cardboard boxes as a way of addressing the shortage of scraps faced by manufacturers in this sector. This product was developed by the company in just 60 days and became the highest selling innovation product in our history. This experience has been celebrated as an excellent example of envisioning an opportunity, combined with a clear understanding of what the market needs and quick adaptation to deliver the solution. _CONSUMER GOODS PROMISING SCENARIO AND NEW PRODUCTS IN THE MARKET Despite the challenges faced since 2020, which included high input prices in the international market, Suzano’s Consumer Goods Unit achieved very positive results in 2021. In March, we inaugurated a plant in Cachoeiro do Itapemirim dedicated entirely to the production of consumer goods. With capacity to produce 30,000 tonnes of toilet paper per year (which is equivalent to 15,000 bales or 1 million rolls per day), the unit is responsible for converting tissue paper that is produced at the Mucuri plant into two- and three-ply Mimmo® and two-ply Max Pure® toilet papers. Responsible for a 30% increase in Suzano’s finished product capacity, the new unit primarily serves the markets in the Southeast region. Mimmo® Three-Ply Padded toilet paper is a new product launched together with the startup of the new plant. In the state of Espírito Santo, in just six months, Mimmo® Three-Ply reached Sales promoter Rosemiria Gonçalves de Freitas, in a Perim Supermarket (state of Espírito Santo), with Mimmo® Triple Ply toilet paper. Photo: Suzano's image bank. more than 40% of market share in the segment, becoming a market leader in September 20211. Nationally, the brand’s market share went from 0% in April to 8%2 in December and achieved the second highest weighted distribution in the segment within the retail market. In the Two-Ply segment, Mimmo® also continued to grow in the Southeast region, achieving, in the last quarter of 2021, the leadership in the retail segment in the state of Rio de Janeiro3. In 2021, we also launched Mimmo® Wet Wipes. 1. Source: Nielsen Scantrack Super and Hiper – September 2021. 2. Source: Nielsen Scantrack Super and Hiper – September 2021. 3. Source: Nielsen Scantrack Super and Hiper – September 2021. 76 Suzano’s 2021 Annual Report Customers 77 ACCELERATED SALES Suzano operates in the consumer goods market with a focus on the tissue segment, consisting mainly of products such as paper towel, napkin, toilet paper and tissue paper. Since 2020, there has been a surge in demand for this type of paper throughout Brazil, requiring the company to reorganize its plants and business model to quickly respond to the new needs of its customers. In 2021, our products increased their participation among large customers (supermarkets, hypermarkets and wholesalers in Brazil). The company’s sales volume and revenue also grew significantly. According to data from Nielsen1, in 2021, the toilet paper market in Brazil grew 6% in value over 2020. Suzano’s growth in this market was 16%. In the last two months of the year, the company’s market share reached 11.2%, its highest in history, and grew 2.9 percentage points compared to the last two months of 2020, the highest growth among all manufacturers. As a result of the Consumer Goods Unit’s strategy, in 2021 Suzano was in 45%2 of the Top 100 Food Retail Customers in Brazil, an increase of 10 percentage points compared to 2020. These retail chains where the company’s products are sold account for 71% of the combined revenue of the top 100 companies. According to Nielsen’s weighted distribution data, which measures the percentage of total store turnover, the stores where Suzano’s products are sold account for 55% of total toilet paper sales. In other words, we have the right product in the right place. 1. Source: Nielsen Retail INA + C&C – July/August 2021. 2. Source: Brazilian Association of Supermarkets (ABRAS) and data from Suzano. Carlos Kauan Miranda Matos, Tissue Manufacturing intern, Imperatriz unit (state of Maranhão). Photo: Márcio Schimming. _ TECHNOLOGY AND INNOVATION PURSUING SOLUTIONS Suzano’s calling is to combine sustainability and innovation, putting into practice the concept of innovability. Therefore, the priority of our portfolio of Research & Development projects is to improve our forest efficiency, thereby increasing the productivity and quality of our forests. Based on this renewable raw material and through strategic partnerships and collaboration, we focus our resources on developing new applications that can have a positive impact on society, in line with our Commitments to Renewing Life. Including technology centers, startups, academia, other organizations and even our competitors, the Technology and Innovation area currently has approximately 37 partners in countries such as Australia, Brazil, Canada, Finland, Israel, Italy, Sweden and the United States, working Rosana Soares de Araújo, R&D technician, Limeira unit (state of São Paulo). Photo: Fernando Cavalcanti. on programs with well-defined resources and contracts. Together, we pursue solutions that can meet the needs of all links of our production chain. In 2021, the Technology and Innovation area invested R$187.4 million in 122 projects, divided among three axes: SUPPORT TRANSFORMATION DIVERSIFICATION 46% of the resources are allocated to the development of solutions that can continuously leverage current businesses, from the forest to the final products. 32% of the resources are allocated to the development of transformational solutions for current businesses, aiming to create significant and sustainable competitive advantage, in line with the needs of our customers and society as a whole. 22% of resources are used to explore new applications for eucalyptus biomass, in line with our biostrategy, aiming to expand the product portfolio and generate new business for Suzano. _STANDARD Total cost related to research and development 2019 2020 2021 R$175,892,732.00 R$163,400,248.00 R$186,383,080.00 78 Suzano’s 2021 Annual Report Customers 79 INNOVATION TERRITORIES Starting in 2022, this classification will transform into a more modern vision, called Innovation Territories, which will enable Suzano to better assess how research and development decisions connect to our strategic avenues and market macro trends. Six innovation territories and important strategic platforms were chosen to determine the opportunities and focus of R&D activities, to ensure alignment with the business strategy. They are: _Efficient trees _Biomaterials _Eco-efficiency and preservation _Evolution and new paper applications _Industrial evolution for pulp _Genetics for efficiency The objective is to broaden our perspectives regarding potential changes in the business environment and discuss the company’s short-, medium- and long-term strategic options. PROGRESS AT FUTURAGENE FuturaGene, Suzano’ Biotechnology Division and a leader in plant genetic development aimed at increasing the productivity and sustainability of the global forestry sector, obtained a first- ever approval for the commercial use of a new herbicide-tolerant genetically modified eucalyptus variety. The technology was evaluated and approved by the National Technical Commission on Biosafety (CTNBio, for its initials in Portuguese) after multiyear safety analyses in the laboratory, greehouses and in the field, which demonstrated its biosafety in humans, animals and the environment. Jéssica Fernanda Fonseca Fernandes, R&D technician, FuturaGene. Photo: Juarez Godoy. The new eucalyptus is tolerant to the herbicide glyphosate, which is used in forestry to fight weed competition, thus allowing more modern and efficient control of weeds that compete with eucalyptus, especially in the early stages of plantation development. This technology aims to optimize and potentially reduce overall chemical usage and improve working conditions. Conventional tree breeding and biotechnology go hand in hand at Suzano, in an increasingly integrated way. After the CTNBio’s approval, the herbicide-tolerant genetically modified eucalyptus will be incorporated into Suzano’s breeding program to develop and assess suitability in different geographic regions where the company cultivates eucalyptus, as is done with conventional clones. The objective of this phase is to optimize planting material for future operational use. NEW ENABLING TECHNOLOGIES FOR GLOBAL CHALLENGES In 2021, FuturaGene obtained a research license for CRISPR-Cas9, a gene editing technology developed by a number of organizations, including Corteva Agriscience, the Broad Institute of the Massachusetts Institute of Technology (MIT) and Harvard University, and other institutions. This technology, together with FuturaGene’s current “toolbox”, will be applied to the ongoing research and development of new eucalyptus varieties that are more productive, are resistant to diseases and pests and have better quality fibers. In addition, the company aims to make the new varieties more resilient to climate change, thus reducing the risks of climate-related productivity losses. This new gene editing research license can be converted into a commercial license. A key aspect of this license agreement is the right to share the benefits of this technology with small producers in Suzano’s supply chain, royalty free. Based on third party and in-house scientific data, Suzano believes that genetically modified eucalyptus will provide significant productivity gains and environmental benefits. Learn more about FuturaGene by visiting the website. 80 Suzano’s 2021 Annual Report Customers 81 _NEW BUSINESS MFC AND ITS VARIOUS APPLICATIONS Expected to grow in the coming years, microfibrillated cellulose (MFC) is a cellulose pulp that is refined through intense mechanical work and can be used in various applications. In addition to advancing in textile fiber production with Spinnova (see more details in the next topic), Suzano has been studying the application of MFC in printing and writing paper, among other uses that are still being evaluated. In addition, we started tests with MFC to replace raw materials from fossil sources used in cleaning products (dish detergents, fabric softeners and laundry detergents) and in the manufacturing of paints and fibre cement slates, which used to be made with asbestos. PARTNERSHIP FOR SUSTAINABLE FABRIC Several brands in the textile industry are looking to reduce their emissions and environmental footprint and create a circular material basis for their products. In 2021, one example of innovability in this area was our joint venture with Spinnova, a Finnish material innovation startup. We will exclusively produce and sell 100% renewable textile fiber made from microfibrillated eucalyptus cellulose. In February 2021, together with the creation of the joint venture, the two companies announced an investment of 22 million euros for the construction of the first production unit to manufacture this fiber, which will be sold under the SPINNOVA® brand. The pre-commercial scale plant is located in Jyväskylä (Finland), where Spinnova’s Research and Development center and pilot plant are located. Spinnova will contribute its exclusive technology, while Suzano will supply microfibrillated cellulose produced from the eucalyptus grown in Brazil. Production will be managed and operated by the joint venture called Woodspin, in which each company holds a 50% stake. The plant is expected to start operation in 2023. CLOTHING MADE FROM 100% RENEWABLE FIBER Our renewable raw material, combined with Spinnova’s technology, will meet the needs of the market and society for more sustainable fibers. They are produced from the same raw material used in paper production through a production process that does not require much water, generates little solid waste and uses renewable-based chemicals. SPINNOVA® fiber is a highly advantageous alternative in terms of sustainability since, for example, its production generates minimal greenhouse gas emissions. Important leading fashion groups, such as the Swedish H&M, the Danish Bestseller, the Finnish Marimekko, the German Adidas and the Norwegian Bergans, have already signed agreements with Spinnova to participate in its material development process. Lignin plant, Limeira unit (state of São Paulo).Photo: Fernando Cavalcanti. LIGNIN, PROTECTION FACTOR Like pulp and paper, lignin is a renewable product of the planted tree industry. It is a complex organic compound that, together with cellulose, makes up most of the wood in trees. Among other things, it can be used as a phenolic resin or antioxidant for rubber products. In addition, it is an excellent fuel that produces steam for more efficient production processes, and it also generates electricity, which contributes to a more renewable energy matrix. The lignin produced by Suzano is being used in several application studies in different industrial sectors. The most recent one brings together the Research and Development teams from Suzano and the Boticário Group, one of the largest beauty conglomerates in the world. Together, the teams are testing the benefits of lignin in beauty products, especially for dark skin. Researchers involved in the partnership have identified an antioxidant effect of the ingredient that can also boost the protection factor in sunscreens (SPF). In addition, lignin could also be used to minimize the grayish tone of foundations for black skin—a phenomenon that occurs when these products come into contact with the oxygen in the air—by preventing them from changing color as a result of the oxidation process. After the research phase, the results are expected to be used by Boticário to develop new cosmetics lines starting in 2022. Lignin is produced in Limeira, where Suzano operates the first kraft lignin plant in Latin America. 82 Suzano’s 2021 Annual Report Customers 83 UNBLEACHED PULP Suzano developed an unbleached pulp for customers in the food industry. The goal is to offer solutions from renewable sources to manufacture packaging that come in contact with food. BIO-OIL In the area of new businesses, the company invests to be able to offer products to the fuel industry in the future. To that end, in 2021, Suzano carried out tests with two major oil companies in the United States. The goal is to become a relevant global player that can offer green solutions and products to the fuel industry. Edleny Vasconcelos Lavorato Albuquerque, R&D technician, Limeira unit (state of São Paulo). Photo: Fernando Cavalcanti. José Eduardo Abiati Junior, R&D technician, Limeira unit (state of São Paulo). Photo: Fernando Cavalcanti. LESSONS LEARNED AND CHALLENGES IN 2021 The year 2021 taught us many lessons about the way we operate and manage our lignin industrial operations, which is still maturing from a technological standpoint. Its development poses challenges because these are non-drop-in* applications that require skills in different areas and diversified market operations. Innovating through proprietary technology and advancing scalable solutions is a challenge that requires time, discipline and resilience. Throughout the year, we revisited our initiatives and redefined our priority markets and strategic drivers. Our highlights during the year included: _Evolution of strategic partnerships for commercial scale in several applications. _Implementation of business processes including continuous improvement identification to optimize customer service. _Regular production at the industrial plant to ensure product availability to meet demand. * Applications that do not have the same properties and functionality as conventional ones. 84 Suzano’s 2021 Annual Report Customers 85 Suzano believes in collaboration and in the value of partnerships throughout its production chain. Therefore, the company works to improve the performance of its partners so that they can do their best not only for the company, but for society at large and for the environment. In this chapter, you will learn about several initiatives and partnerships that have been developed together with our suppliers based on this belief. GRI 102-9 07 S R E I L P P U S COLLABORA RATION 86 Suzano’s 2021 Annual Report Fabiano Sousa Santos, Occupational Safety technician (company TimeNow), at the Cerrado Project in Ribas do Rio Pardo (state of Mato Grosso do Sul). Photo: Márcio Schimming. Suppliers 87 _A MORE SUSTAINABLE SUPPLY CHAIN GRI 103-1, 103-2, 103-3 (Material topic: Supplier Management) This year marked the maturation of the Responsible Supplier Management (RSM) program, with significant progress in Suzano’s supply chain. The main objectives of this program, approved in 2020, are to foster sustainability management among the suppliers, establish guidelines for our relationships with our partners and integrate ESG criteria into procurement decisions. During the year, the RSM program was applied to several projects and initiatives that aim to increasingly establish lasting and high-quality relationships with our suppliers to generate shared value throughout our production chain. Understanding the strengths and weaknesses of the different companies that serve us and improving their level of performance and awareness means reducing risks for everyone. One of the challenges that come with this process is to educate our buyers, who pursue the best commercial conditions. On the one hand, our suppliers need to understand the importance of following current best practices in the social, environmental and governance arena. On the other hand, our business areas must understand the benefits of hiring companies that, for example, emit less greenhouse gases or have a more diverse workforce compared to their competitors. This is a work in progress, which, over the next few years, is expected to bring about profound transformations throughout Suzano’s supply chain, which currently includes 26,000 active suppliers. Planting of seedlings, state of Mato Grosso do Sul. Photo: Márcio Schimming. Learn about our highlights in 2021: SUSTAINABLE PROCUREMENT POLICY The Sustainable Procurement Policy consolidates the principles and guidelines that drive the effective integration of sustainability into Suzano’s procurement processes, including everything from the acquisition of office supplies to forestry and industrial inputs, to services. The policy provides guidelines for product or service specifications, the registration and approval of suppliers, and the selection and hiring of our partners. SUPPLIER CODE OF CONDUCT Based on Suzano’s Code of Conduct, we launched a specific document to guide our relationships with our supply chain. In addition to issues commonly discussed, such as integrity in business relationships, decent labor relations and management systems, it addresses comprehensive ESG issues by including topics such as environmental protection, human rights and social development. Click here to learn about our new Supplier Code of Conduct. 88 Suzano’s 2021 Annual Report Suppliers 89 Relacionamento com os fornecedores 89 78% of the participants engaged with the program, which is a significant achievement for its first year – 12% above the global average. INCLUSIVE PROCUREMENT The next issue in our agenda is inclusive procurement, which aims to promote diversity, equity and inclusion throughout our supply chain. In 2021, the company carried out a comprehensive diversity and inclusion census among our partners to establish indicators of minority representation among their employees, managers and owners and to identify existing practices in this area. Through December 2021, approximately 500 suppliers had engaged in the issue of inclusive procurement. In 2022, the data we collected will be essential for us to increase our number of partnerships with companies in which managers and owners belong to minority groups, in addition to fostering an increase in diversity among their employees. In this first cycle, our focus will be on gender. Pablo Alan Guimarães Pires, Wood Supply technician, Imperatriz unit (state of Maranhão). Photo: Márcio Schimming. Raimunda da Conceição Lima, Drying operator, and Leonardo dos Passos Rodrigues, Drying operator, Imperatriz unit (state of Maranhão). Photo: Márcio Schimming. SOCIAL AND ENVIRONMENTAL RISK MANAGEMENT CLIMATE CHANGE IN THE VALUE CHAIN In 2021, to effectively monitor the risks and potential impacts within Suzano’s supply chain, we conducted a study on the exposure to social and environmental risks in all of our procurement categories. This study informed the creation of a Social and Environmental Risk Matrix, which classifies suppliers into four risk groups: low, medium, high and very high. Based on this assessment, it was possible to establish specific management strategies for each risk category, since higher risk levels require stronger guidance and monitoring, and a robust development approach with the suppliers. Climate change is the first sustainability issue to be discussed with our suppliers as part of our initiatives to take sustainability beyond Suzano’s walls. We invited 100 suppliers with opportunities related to greenhouse gas (GHG) emissions to participate in our program. Through initiatives like that, we seek to improve sustainability management and encourage the reduction of GHG emissions in our supply chain year after year, in line with our commitment to become increasingly climate positive. To develop this program, we established a partnership with CDP. As an example, the suppliers included in the matrix as high and very high social and environmental risks are monitored in real time through the Reprisk platform. This tool continuously assesses and updates the degree of risk exposure of suppliers considering the risk of the production sector as a whole, the country where the suppliers operate, and the severity of the information found in the media. For more information on the creation of the Social and Environmental Risk Matrix and our management approaches, access Suzano’s Sustainable Procurement Policy. Of the invited suppliers, 78 representatives of categories that are considered critical in terms of greenhouse gas emissions voluntarily participated in the first cycle of the program. This level of engagement was superior to the average 67% of other companies that also use the CDP Supply Chain platform. During 2022, we will engage our suppliers to improve their climate change management and strategy and, consequently, their score in the CDP questionnaire. 90 Suzano’s 2021 Annual Report Suppliers 91 Relacionamento com os fornecedores 91 VINO – NON-OPERATING ITEMS SALES With a focus on maximizing the use of our cultivated trees, the company has the Non-Operating Items Sales area (VINO, for its initials in Portuguese). The main objective of the area is to offer by-products from pulp production to other production chains. One of the initiatives of the VINO area is in line with the commitment to reduce the disposal of industrial solid waste in company-owned or third-party landfills. Reduction of approximately 467,000 tonnes of waste sent to company-owned and/or third-party landfills SUPRICONECTA – INTEGRATED PROCUREMENT PLATFORM The company’s Procurement area is in the middle of a digital transformation with the goal of improving the procurement processes for its internal customers, suppliers and buyers. To be one of our partners in this journey, Suzano hired Coupa Software to implement SupriConecta, a platform that will unify and optimize the company’s entire procurement processes, from request to final order. Kelly Cristina Cunha (green shirt) and Sabrina Aparecida Almeida (blue shirt), both members of the Arara Azul Cooperative, in Três Lagoas (state of Mato Grosso do Sul). Photo: Márcio Schimming. SEMEAR PROGRAM In 2021, we selected local micro and small companies in the segments of logistics and industrial maintenance services to receive guidance on how to achieve structured growth by incorporating good management practices and methods, innovation and principles of legal, social and environmental responsibility. This is what we believe in, while always respecting the nature of each organization. Participants graduated from the Semear program (“Sowing” program) in the states of Bahia, Mato Grosso do Sul, Espírito Santo, Maranhão and São Paulo. Of the 151 who graduated between 2020 and 2021, 26 were recognized for meeting improvement criteria such as a reduction in economic, financial and labor risks and on their financial dependence on Suzano. Key features of the program included a partnership with SEBRAE (an organization that supports micro and small entrepreneurs in Brazil) and several workshops and engagement events on the topic of social and environmental responsibility. This program also includes a specific thematic meeting with Suzano’s Sustainability team to engage suppliers to improve their social and environmental performance. We also expanded our reach by implementing Semear Online, through which resources and training from the Suzano collection are now available free of charge to suppliers and other interested audiences. In 2022, the program will be expanded through the addition of new classes and a specific curriculum, which will include the topics of entrepreneurship, management and leadership, financial management, strategic planning, diversity and inclusion, Sustainable Development Goals and digital transformation. 92 Suzano’s 2021 Annual Report Suppliers 93 Relacionamento com os fornecedores 93 Cavacos yard, Limeira unit (state of São Paulo). Photo: Fernando Cavalcanti. PROJECTS APPROVED IN 2021 THAT WILL BE IMPLEMENTED DURING 2022 INNOVABILITY IN THE VALUE CHAIN EXTERNAL AUDIT OF SUPPLIERS Suzano’s challenge to its supply chain to solve problems that result in procurement solutions that reflect the concept of innovability. A pilot project that includes suppliers classified on the social and environmental risks matrix. ESG audits will be carried out remotely and in person in partnership with an external audit company. CARING FOR WATER IN THE VALUE CHAIN RENEWABLE ENERGY IN PAPER DISTRIBUTION CENTERS Aa pilot project focused on engaging and working with suppliers on water issues. The main objectives of the program’s three-year cycle, which includes 100 selected suppliers, will be to influence the value chain and to improve and report the suppliers’ water-related impact and management practices. Transition of 100% of the Paper distribution centers in Brazil to renewable energy through distributed generation. The project, which will be implemented in 2022, included an analysis of existing business models in Brazil (turnkey, remote self-consumption, rent and free market) and a decision on the best model for each distribution center. Visit our Sustainability Center to learn more about our supplier management approach. _STANDARDS Critical suppliers1 Percentage of critical suppliers (relative to total suppliers) - Except wood suppliers Percentage of critical suppliers (relative to total suppliers) - Wood suppliers Percentage of total purchases expended with critical suppliers - Except wood suppliers Percentage of total purchases expended with critical suppliers - Wood suppliers 2019 2020 2021 4% n/a 22% n/a 4% n/a 41% n/a 3% 100% 37% 100% 1. In the year 2021, social and environmental risk assessment criteria were incorporated into supplier management processes, thus enabling us to assess sustainability risk. New management measures were implemented, such as the use of the Reprisk tool, which allows us to monitor ESG risks in the supply chain. Per context understanding, 100% of wood supply is critical. wood was not tracked alone in 2019 and 2020. Suppliers with negative environmental impacts¹ GRI 308-2 Percentage of suppliers identified as having negative environmental impacts¹ (Except wood suppliers) Percentage of suppliers identified as having negative environmental impacts¹ (Wood suppliers) Percentage of suppliers identified as having significant negative environmental impacts, actual and potential, with which improvements have been agreed as a result of the evaluation (Except wood suppliers) Percentage of suppliers identified as having significant negative environmental impacts, actual and potential, with which improvements have been agreed as a result of the evaluation (Wood suppliers) Percentage of suppliers identified as having significant negative environmental impacts, actual and potential, with which the business relationship was discontinued as a result of the evaluation (Except wood suppliers) Percentage of suppliers identified as having significant negative environmental impacts, actual and potential, with which the business relationship was discontinued as a result of the evaluation (Wood suppliers) 2019 2020 2021 4% n/a 2% n/a 3% 3% 71% 100% 100% n/a n/a 100% 29% n/a 0% n/a 0% 0% 1. The indicator considers suppliers that have undergone registration, approval, evaluation and environmental monitoring. The data from wood suppliers start being reported as of 2021. Suppliers with negative social impacts¹ GRI 414-2 Percentage of suppliers identified as having negative social impacts (Except wood suppliers) Percentage of suppliers identified as having negative social impacts (Wood suppliers) Percentage of suppliers identified as having significant negative social impacts, actual and potential, with which improvements have been agreed as a result of the evaluation (Except wood suppliers) Percentage of suppliers identified as having significant negative social impacts, actual and potential, with which improvements have been agreed as a result of the evaluation (Wood suppliers) Percentage of suppliers identified as having significant negative social impacts, actual and potential, with which the business relationship was discontinued as a result of the evaluation (Except timber suppliers) Percentage of suppliers identified as having significant negative social impacts, actual and potential, with which the business relationships have been discontinued as a result of the evaluation (Wood suppliers) 2019 2020 2021 2% n/a 1% n/a 4% 6% 50% 100% 100% n/a 25% n/a n/a 0% n/a 5% 0% 1% 1. The indicator considers suppliers that have undergone registration, approval, evaluation and environmental monitoring. The data from wood suppliers start being reported as of 2021. 94 Suzano’s 2021 Annual Report Suppliers 95 Relacionamento com os fornecedores 95 _LOGISTICS GUARANTEED AND HIGH-QUALITY DELIVERY Like all global companies, Suzano, which has an annual export volume of approximately 10 million tonnes, also felt the effects of a challenging year in logistics in Brazil and worldwide as a result of complications experienced since the beginning of the pandemic. A lack of containers, the Suez Canal blockage, restrictions in Chinese Dispatch, Limeira unit (state of São Paulo). Photo: Fernando Cavalcanti. ports caused by COVID-19, a shortage of local labor in several countries and port congestions worldwide made 2021 especially complex – the average travel time to Europe went from 18 to 25 days. Despite the turbulent and high-pressured market, the company maintained excellent service and guaranteed the supply for all its customers, most of them in Asian and European countries. This was possible thanks to three main competitive advantages developed by Suzano as part of its evolution: shipowners and customers, which ensured increased stability to the logistics operation. Because Suzano has a port structure in Brazil and warehouses located in the main international ports, the company can maintain its pulp stock regulated at all points of the business. 1 The company has long-term contracts with 2 3 Suzano’s team is very attentive to market movements, is responsible for anticipating risks and opportunities, and redoubled their attention in the face of a critical scenario. As a result, we gained agility and efficiency. When most companies in the world started to be affected by logistics issues, Suzano had already been dealing with them. With well-served customers, despite the complicated situation, the company was able to develop projects in 2021 that will leverage the evolution of the logistics area through increased innovation and process automation. Keep reading to learn more. 96 Suzano’s 2021 Annual Report Suppliers 97 Relacionamento com os fornecedores 97 INOVALOG Inovalog (“Innovalog”) is Suzano’s pulp logistics transformation program. It was launched in March 2021 as part of one the company’s strategic business avenue (“Be best-in-class in total pulp cost”) and its desire to be recognized as a benchmark in market innovation. Among its main objectives are the pursuit of increased operational productivity, quality of life for the team and efficiency in the connection with startups and technology companies. The program translates how the logistics team intends to help the company achieve its goals and ambitions. The first step was to consult the team and the main areas it interacts with, recognizing the importance of co-creation at Suzano. The results of the program, which is based on three development drivers (people, digital/systems and operational excellence), include the creation of more than 150 initiatives in 2021, training for the team, system improvements, process automation and cost reduction. The culture of co-experimentation is another important feature of Inovalog. Currently, Suzano’s Logistics, in partnership with startups and other companies in the market, is testing and developing new concepts to be incorporated into everyday businesses. Some of the projects are planned to be scaled up in our operations as early as 2022. ITAQUI BERTH In 2018, Suzano won a concession to manage public areas and infrastructure for general cargo, especially pulp and paper, in the Itaqui port, in São Luís, for an initial period of 25 years. To implement this project, the company will be investing approximately R$390 million. The construction of the berth and support room was completed in November 2021 and accounted for part of Suzano’s investments for the construction of this terminal, which will be used for the export of pulp produced in the company’s Imperatriz unit. Berth operations started in the first quarter of 2022. In addition to the berth, the investments will finance the construction of a 73,000-tonne warehouse to ensure more efficient flow of pulp. The construction project is scheduled to be completed in the first half of 2022, and the warehouse is expected to be operational in the third quarter. Elmo de Jesus Mendes Tavares, leader of Logistics Operations, Berth 99 – Itaqui Port, São Luís (state of Maranhão). Photo: Albani Ramos. SUSTAINABLE LOGISTICS Suzano sees the reduction or elimination of fossil fuel in its transportation as an important component of its environmental strategy. Therefore, the company has been working to increase productivity by using low-emissions rail transport. In addition, on certain routes within the greater São Paulo area, Suzano is replacing conventional trucks with electric ones. For heavy equipment, this option is only available in industrial areas close to our plants and wood yards. It is still uncertain when we will be able to completely replace fossil fuels with renewable alternatives. For Suzano, the focus now is to be connected to institutions and companies around the world that aim to systematically track solutions for a zero-emission operation. Partial solutions such as hybrid vehicles and transition fuels are currently being seen as steppingstones toward phasing out fossil fuels. Some of the alternatives being studied include hybrid vehicles with electric trailer axles and other components, feasibility studies of methane-powered fleets to transport wood and pulp, and options for producing biomethane from biomass in industrial plants. 98 Suzano’s 2021 Annual Report Suppliers 99 Relacionamento com os fornecedores 99 08 T E N A L P Suzano sees nature as an essential part of its business model. The company’s planted and native forest areas make up ecological mosaics and corridors that support the conservation of biodiversity and ecosystem services. Partnerships with social organizations, institutions and communities contribute to the diversification of economic activities and ecological restoration. GRI 103-1, 103-2, 103-3 (Material topic: Biodiversity) RENEWAL RENEWAL 100 Suzano’s 2021 Annual Report 100 Suzano’s 2021 Annual Report Native forest and eucalyptus plantation, Imperatriz (state of Maranhão). Photo: Ricardo Teles. Planet 101 Planet 101 Left, eucalyptus leaf. Photo: Suzano’s image bank. Right, eucalyptus and a man in the field, Três Lagoas unit (state of Mato Grosso do Sul). Photo: Márcio Schimming. _ FORESTS, THE HEART OF SUZANO Suzano has been working to deliver products and services that meet the current and future needs of customers and consumers while also contributing to a more sustainable world. Keep reading to learn about the main initiatives implemented in 2021 to promote greater efficiency in forest management processes and industrial operations, with productivity gains associated with cost reductions and less use of natural resources. Also, find out what Suzano, together with partners, environmental organizations, governments and other entities, is doing to help conserve the environment. 102 Suzano’s 2021 Annual Report Planet 103 Eucalyptus plantation in the Três Lagoas unit (state of Mato Grosso do Sul). Photo: Márcio Schimming. FOREST EVOLUTION IMAGINE Suzano’s forestry operators working in different regions, in several Brazilian states, without any connectivity. Now, think of a data-science automated knowledge center that can analyze and share, in real time, information collected in these different regions with this same group of employees. This is like putting the operation under a giant magnifying glass: the activities are conducted based on the evaluation of a much higher number of aspects, in much less time and with lower risks. This is the Control Tower project, which was developed through Suzano’s co-creation and innovability efforts and is currently considered one of the most transformational projects in terms of productivity THE MAIN OBJECTIVE of this project, which was tested in the state of Maranhão in 2021, is to provide autonomy to the workers at the forefront of our operations. That is why, to develop the project, the company consulted 70 forestry workers and followed the design thinking methodology, to give voice to those in the field and arrive at a solution that could effectively meet their needs. As a result, operators now have tablets that provide online information and management dashboards, which they can use to make the best choices with confidence and agility to achieve their goals. Lorena Ferreira da Cunha e Souza, service provider (company Nova RH), Henrique de Jesus Silva, Forest Logistics operator, Joscimar Silva Santos, Harvest administrative assistant, and Ana Carolina Silva de Alemida, Forest Logistics operator, in the Imperatriz unit (state of Maranhão). Photo: Márcio Schimming. 1.3% INCREASE IN THE PRODUCTIVITY and efficiency of harvesting equipment _OBJECTIVES: integrate and centralize information to guide data-driven decisions as part of wood supply processes (wood harvesting, loading and transporting); and improve operational indicators, including a 3% increase in operational efficiency. _BENEFITS OF THIS AUTOMATION: greater precision in decision making, resulting in gains in productivity, efficiency and asset availability; accident reduction; risk mitigation; and increased autonomy for the operators. The project has already achieved important results, such as: _ An approximate 1.3% increase in the productivity and efficiency of harvesting equipment. _ Improved safety management (distance between pieces of equipment, and support for operators, drivers and cranes). _ On-time management of indicators with the identification of more than 50 KPIs. _ More than 90% operational buy-in of the use of the technology. Currently, WE MONITOR MORE THAN 400 ASSETS, including harvesting equipment (harvesters and forwarders), loading cranes and wood transport trucks 104 Suzano’s 2021 Annual Report Planet 105 _OUR MANAGEMENT GRI 103-1, 103-2, 103-3 Currently, Suzano has 2.4 million hectares of native forests and eucalyptus forests distributed across three Brazilian biomes (Cerrado, Atlantic Forest and the Amazon), which have very different characteristics. How can we manage such a broad footprint, with so many variables, in a way that optimizes the use of natural resources, forest productivity and costs, while also improving our conservation efforts and maintaining good relationships with our neighbors to ensure benefits for everyone? The partnership between the Forestry and Research and Development (R&D) areas enabled better understanding and the classification of the different conditions of eucalyptus cultivation environments. Using machine learning, we were able to isolate and demarcate Suzano’s macroenvironments. Based on that, all management and breeding recommendations are developed to maximize the productive potential of each environment, considering the best combination between management, clones and environment. Maria Helena dos Santos, fertigation applicator, Três Lagoas unit (state of Mato Grosso do Sul).Photo: Márcio Schimming. Management recommendations follow the concept of precision forestry. With regard to breeding, it is worth noting that we adopt a strategy to accelerate the discovery and selection of more productive clones with better wood quality. In addition to using better clones, the company developed a clonal allocation optimizer, called Tetrys. This algorithm enables Suzano to place the most adapted and productive clones in the company’s different environments. Using analytics, big data and artificial intelligence, Tetrys evaluates numerous scenarios to identify the best clone, considering variables such as temperature, rainfall, soil type and texture, and altitude. In addition to improving plantation safety and providing more effective matches that result in a 2% increase in forest productivity, this tool reduces the risk of potential environmental issues, including the incidence of pests and diseases. The development of Tetrys, which involved more than 80 employees within the company, resulted in a 15-fold increase in the capacity to generate clone allocation scenarios, when compared to the procedure prior to the implementation of the tool. Since the beginning of the project, more than 270 million trees have been planted – the equivalent of an area of 205,000 hectares. In addition to providing better control of planting quality, these projects are being efficient to increase the productivity of commercial plantations in sites where there have been no weather-related adverse effects. Also, based on the knowledge generated, it is possible to reposition the forest base, focusing on expanding plantations in areas of greater productive potential and lower environmental risk. In 2021, we innovated the process of generating and transferring technologies. For the first time, we held an integrated event in which management recommendations (SMS – Suzano Management System) and breeding recommendations (SGS – Suzano Genetic Selection) were widely discussed with the Silviculture areas, with the participation of all support areas. This was a way to share knowledge more efficiently, facilitate co-creation and make joint decisions for the coming year. Based on this new interpretation of what happens in the field, it became possible to make more specific recommendations in silvicultural activities, including soil preparation, planting spacing, clonal allocation, fertilization and plant protection, adapted to the characteristics of each region. MORE WITH LESS The same approach applies to the management of regrowth, which consists of using previously selected shoots of remaining strains from the previous harvest. This type of management is very much in line with the idea of producing more with fewer natural resources, since a series of steps, such as seedling production and transportation and soil preparation, are not necessary in the management of regrowth. At Suzano, we are implementing a concept called C14 (or 14-year cycles), which has enabled us to reduce the use of inputs and the emission of greenhouse gases, while also leveraging regrowth productivity. This is only possible thanks to quality control, the implementation of best management practices and a better understanding and control over the factors that affect productivity, resulting from big data analysis of issues in this area. Currently, APPROXIMATELY 14% of the areas are under REGROWTH MANAGEMENT, resulting in savings of around 40% IN FOREST FORMING COSTS when compared to restauration 2.5% OVERALL INCREASE in the mean annual increment (MAI) of pulp per hectare per year In addition, the company implemented a regrowth area selection optimizer, an artificial intelligence technology that makes it possible, in the strategic planning phase, to identify the planting areas with the highest potential for regrowth. The more efficient the company is in selecting these areas, the more sustainable and productive their management becomes over time. 106 Suzano’s 2021 Annual Report Planet 107 _WATER IN THE FOREST Climate change is a global reality and certainly one of the most pressing issues for the forestry industry and society. The development of our planted trees and conservation areas depends on the availability of water. Dozens of initiatives have been implemented in recent years to address the situation of more frequent and intense droughts in some regions where we operate. One of them is forest management aimed at increasing water availability in watersheds that are considered critical (in other words, watersheds in areas where Suzano operations are exposed to risk of water scarcity). This is one of our main Commitments to Renewing Life: increase water availability in 100% of critical watersheds by 2030. This represents approximately 6% of our forest base in more critical regions and watersheds. Our unique management approach includes initiatives such as increasing the age mosaic, extending the crop cycle, reducing planted forest density, promoting forest restoration, optimizing roads and decommissioning areas. In 2021, we exceeded our target of applying this management approach in 4,500 hectares. Through decommissioning of critical areas alone, we reached approximately 5,650 hectares. ADAPTATION STRATEGY CBased on alarming data released by the Intergovernmental Panel on Climate Change (IPCC), Suzano immersed itself in this issue in 2021, considering different scenarios. In addition to evaluating historical data collected by the company itself, as a key element of this initiative, the company worked in the identification and measurement of risks based on IPCC scenarios. This is a step forward in our journey toward alignment with the Task Force on Climate-Related Financial Disclosures (TCFD). As part of this comprehensive assessment, Suzano classified high-risk areas with regards to forest productivity and identified regions where plantations should be decommissioned, and the company’s production activities should be ceased. Suzano also determined the size of its forest base needed to face the consequences of climate change without compromising supply for its units. The implementation of this strategy will consider the scale and importance of the company’s social and economic role in each region to avoid any negative impact in these areas. _ CONTROLLED WATER USE Technological advances have increasingly improved the development of solutions to control the use of water. One of them, closely linked to Suzano’s innovability concept and implemented in 2021, is a seedling protection collar that is inserted at the time of planting to form a protection barrier around the plant. PROTECTION COLLAR This shield is made from primary sludge, a residue made up of fibers that were not used in the industrial process for pulp production. One of the benefits of the collar is to keep the soil moist for a longer time. As a result, the seedling needs to be irrigated less often, thereby consuming less water in its initial growth stage. It is estimated that 532 million liters of water are saved for every 100,000 hectares planted. In 2021, at the Maranhão unit alone, we saved approximately 65 million liters of water – the equivalent of 4,330 trucks of 15,000 liters each. It is estimated that 532 million LITERS OF WATER are saved for every 100,000 hectares planted In 2021, we saved approximately 65 million LITERS OF WATER at the Maranhão unit alone Forest mosaic, Aracruz (state of Espírito Santo). Photo: Suzano's image bank. _STANDARDS Water withdrawal per source in forestry operations¹ (m3) GRI 303-3 2019 2020 2021 Total Suzano S.A. Total Suzano S.A. Surface water Groundwater Total São Paulo 214,372.00 341,680.32 141,438.03 140,809.32 282,247.35 Mato Grosso do Sul 1,082,185.00 951,724.00 924,918.13 Espírito Santo/Bahia 850,009.17 392,476.72 322,081.28 0.00 71.73 924,918.13 322,153.01 Maranhão Total 209,403.80 120,980.00 111,083.50 564.00 111,647.50 2,355,969.97 1,806,861.04 1,499,520.94 141,445.05 1,640,965.99 1. Suzano's forestry operations do not withdraw seawater, produced water, or water from third-party sources. All withdrawn water is from fresh source (≤ 1,000 mg/L total dissolved solids). The information comes from water withdrawal forms used by the operation at each water withdrawal performed in the Silviculture, Harvest and Logistics operations. Percentage of water withdrawn in forestry operations in water-stressed areas¹ SASB RR-PP-140a.1 São Paulo Mato Grosso do Sul Espírito Santo/Bahia Maranhão Total 1. For more information, access here. 2021 0 0 0 0 0 108 Suzano’s 2021 Annual Report Planet 109 _ FOR MORE ECOLOGICAL BALANCE Suzano is advancing its biological control strategy to replace chemical control in its plantations. In 2021, the company created and released more than 115 million natural enemies, enabling biological pest control in approximately 150,000 hectares. The natural enemies were created in the Aracruz, Alambari, Imperatriz and Três Lagoas laboratories, the latter inaugurated in the second half of the year. We believe that, by scaling our production and acting preventively, we will achieve an ecological balance until some point in the future when the use of agrochemicals will no longer be necessary. Our investment in infrastructure and specialized professionals is starting to yield positive results: during an outbreak of caterpillars in Mato Grosso do Sul in 2021, for example, the use of insecticides to fight the problem was significantly lower compared to similar situations in the past. In addition to classical biological control, the company kicked off the FenomicS project (“Phenomics” project). This initiative is focused on evaluating the resistance of our clones to the main pests and diseases, as well as their tolerance to adverse weather factors, earlier in the process and more intensely. The project is expected to make the selection of resistant clones two times more efficient. Using a new technique, we are also able to select clones that are more efficient in terms of water use. While the use of genetic resistance against pests and diseases makes it possible to reduce the need for pesticides, the selection and planting of clones that are tolerant to water deficits increases our eco-efficiency. These two approaches are expected to reduce our production risks and minimize our impacts. Grey brocket deer, state of Mato Grosso do Sul. Photo: Araquém Alcântara. Six trailer truck, Três Lagoas (state of Mato Grosso do Sul). Photo: Márcio Schimming. _LOGISTICS IN THE FORESTS One area that impacts our forestry operations is logistics. Therefore, Suzano is constantly evolving its practices with the goal of minimizing risks and increasing efficiency. Two important initiatives in this area are highlighted below. SIX-TRAILER TRUCK EXPANSION Six-trailer trucks (also known as hexatrains) are exclusive vehicles developed by Suzano in partnership with automotive companies. Operating in the company’s farms in Três Lagoas, the vehicles are also being used in forestry logistics activities in Aracruz and Mucuri. This mode of transportation allows the company to transport a higher volume of wood in fewer trips. It also reduces the number of vehicles in circulation, which has environmental advantages, such as a reduction of 2,798 tonnes per year of greenhouse gases emissions and in the risk of accidents involving the local fauna. In addition, the strategy for training six-trailer truck drivers includes drivers from small transport companies located in the South of the state of Bahia. As a result, Suzano continues to promote local employment while also maintaining our contracts with these companies in force. While six-trailer trucks offer many advantages, there are also negative impacts that the company is working to address. In 2021, Suzano received 37 specific complaints about its forestry operations in Mucuri, including the operation of six trailer trucks. 110 Suzano’s 2021 Annual Report Planet 111 Planet 111 DRIVING FORCE Thousands of isolated forest fragments will be connected. Approximately 50% of them are in areas owned by Suzano. The other fragments are located on third-party lands, which will require strong engagement and networking on the part of the company to be able to connect them. This effort will increase our responsibility and commitment to maintain these habitats restored and preserved, considering the landscape of the area. The company will act strategically by implementing biodiversity corridors and establishing business models that generate shared value and promote biodiverse production, in addition to developing initiatives to reduce pressure on biodiversity as a result of human action. _STANDARDS Protected habitats, by type and forest stewardship unit¹ (hectares) GRI 304-3 2019 2020 2021 Total Suzano S.A. Total Suzano S.A. Aracruz/ Mucuri² São Paulo³ Três Lagoas⁴ Imperatriz5 Total Atlantic Rainforest 342,979.68 345,268.09 271,839.63 78,936.23 3,579.19 0.00 354,355.05 Cerrado Mangrove Restinga Amazon Total 307,612.41 329,360.69 1,430.56 35,423.13 259,849.16 130,467.27 427,170.12 789.65 313.76 308.47 9,938.51 7,897.28 6,975.91 237,166.60 242,027.15 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 308.47 6,975.91 0.00 253,390.70 253,390.70 898,486.85 924,866.97 280,554.57 114,359.36 263,428.35 383,857.97 1,042,200.26 1. The IBGE's Current Basis of Biomes and Vegetation was used for the intersection of Suzano's Vegetation classes. Thus, there was an adjustment in the Cerrado and Mangrove swamp classifications. In 2020, there was also an adjustment in the pampas classification. 2. The ""Aracruz/Mucuri"" unit includes areas in Bahia, Espírito Santo and Minas Gerais. 3. The ""São Paulo"" unit includes areas in the states of São Paulo, Minas Gerais and Rio de Janeiro. 4. The ""Três Lagoas"" unit includes only areas in the state of Mato Grosso do Sul. 5. The ""Imperatriz"" unit includes areas in the states of Maranhão, Piauí, Pará and Tocantins." Owned, leased1, or managed areas within, or adjacent to, protected areas, and areas of high biodiversity value outside protected areas (hectares) GRI 304-1 Within Adjacent Total 2020 2021 210,930.48 394,688.88 605,619.36 211,541.03 401,280.04 612,821.07 1. Leased area encompasses the sum of "Leasehold", "Parkia Partnership" and "Partnerships" in our license plate/property boundaries. Bare-faced curassow, state of Mato Grosso do Sul. Photo: Araquém Alcântara. _ COMMITMENT TO BIODIVERSITY CONSERVATION Suzano has written a new chapter in its sustainability strategy—one that is of great importance for business continuity. The company has committed to connect half a million hectares (an area four times the size of the city of Rio de Janeiro) of priority areas for conservation in the Cerrado, Atlantic Forest and Amazon biomes, by 2030. This new commitment, announced in June 2021, signals our level of contribution and engagement with the conservation of the biodiversity of Brazilian ecosystems, considering that the fragmentation of habitats is one of the main threats to the life of species. In addition, it confirms the company’s leadership position in this area, at a national and international level, in line with the global ambitions of the United Nations (UN). Suzano believes that this biodiversity target cannot be a responsibility of the company alone, but rather of society as a whole. To set this target, the company carried out a collaborative process that included consultation with more than 40 national and international stakeholders, including NGOs and representatives of the public and private sectors and academia. This process, specifically designed to identify opportunities and challenges for biodiversity conservation, was carried out in partnership with the Ecofuturo Institute. Based on the priority areas for conservation identified by the Ministry of the Environment and the areas set by the National System of Nature Conservation Units (SNUC, for its initials in Portuguese) as fully protected Conservation Units, Suzano identified the main areas of fragmented natural remnants to be connected. Then, as a result of the intense engagement of different players, the company defined the pathways for connection, which will be made through the implementation of biodiversity corridors.. 112 Suzano’s 2021 Annual Report Planet 113 NATURAL WORLD HERITAGE Suzano allocates approximately 40% of its total area, or about 1 million hectares, to environmental conservation. More than 4,300 species of plants, birds, amphibians, reptiles and mammals are cataloged in its monitoring database, including those under varying degrees of threat of extinction. These conservation areas are mainly distributed throughout the Cerrado, Atlantic Forest and Amazon biomes. In these regions, in addition to Permanent Preservation Areas (PPAs) and Legal Reserves (LRs), which are required by Brazilian law, the company has voluntarily identified High Conservation Value Areas (HCVAs), which total more than 90,000 hectares of habitats of global and national importance for the conservation of biodiversity. In 2021, Suzano established a corporate standard of methods and criteria to identify environmental attributes and review and set aside HCVAs in all regions where the company operates. AS A RESULT, THERE WAS A SIGNIFICANT INCREASE OF MORE THAN 30,000 hectares OF HCVAS IN THE FORESTRY BUSINESS UNITS. Itatinga river in the Neblinas Park (state of São Paulo). Photo: Adventure Camp. Approximately 1 million hectares of Suzano areas set aside for environmental conservation More than 4,300 of fauna and f lora species identified One example of HCVA is the Neblinas Park, an Atlantic Forest reserve located in the state of São Paulo and managed by the Ecofuturo Institute. _In 2021, the National Council of the Atlantic Forest Biosphere Reserve (RBMA, for its initials in Portuguese) awarded the Ecofuturo Institute the Muriqui Award in the Corporate category. This award is one of the most important accolades for environmental efforts in the country and was granted in recognition of the Institute’s work in the Neblinas Park. _Since 2006, the area has been recognized by UNESCO’s Man and the Biosphere Programme as an Outpost of the Atlantic Forest Biosphere Reserve. _The site protects 530 water springs. _The park houses a Private Natural Heritage Reserve formed by 518 hectares of Atlantic Forest in an area of high conservation value. _In the Neblinas Park, Ecofuturo develops activities in the areas of environmental education, scientific research, ecotourism, forest management and restoration, and community participation. _The management of the reserve involves the community—80% of the employees live in the neighborhood—and fosters local development—approximately 50% of the Park’s budget goes back to the community through the purchase of products and the contracting of services. _7,000 hectares of forest in different _The Management Workshops aim to stages of regeneration. _More than 1,265 species have been identified, including the discovery of four new ones and more than 20 under varying degrees of threat. promote the sustainable development of the region where the reserve is located by combining forest conservation with income generation and creating a network with rural landowners in the surrounding communities. Approximately 1,000 land owners have already been involved in the initiative. 114 Suzano’s 2021 Annual Report Planet 115 _ THE VALUE OF FORESTS In 2021, the company started measuring its environmental footprint based on the Environmental Profit and Loss (EP&L) methodology, which quantifies the balance between the costs and benefits of our forestry and industrial operations on natural capital. Using software that follows the standards of the Natural Capital Protocol, created by the Capitals Coalition and the World Business Council for Sustainable Development (WBCSD), Suzano wants to calculate its environmental impact and gather more precise information for strategic planning and decision- making purposes. The aspects considered in the calculation include greenhouse gas emissions, air pollution, water consumption, water and soil pollution, waste produced and land use, and can be evaluated annually. The first results are expected in the first half of 2022. This pilot initiative is part of a larger strategy that aims to assess the combined impact of all capitals (natural, social, human and financial). Driven by the challenge of creating a regenerative economy, this new approach to company results has the ambition to drive strategic decisions from an integrated perspective, recognizing that financial results alone are not enough to demonstrate the generation of business value. CERTIFIED ECOSYSTEM SERVICES Suzano received certification for two ecosystem services provided by the Neblinas Park, the company’s environmental reserve managed by the Ecofuturo Institute: Biodiversity Conservation and Recreational Services. To certify these services, the company went through an audit process for FSC forest certification (License Code FSC-C009927), carried out at the São Paulo unit1. Ecosystem (or environmental) services are benefits that society obtains from nature, directly or indirectly, such as food, medicine, fiber for clothing, wood for buildings and water. This is the first time that a Brazilian organization has been recognized and certified for proving Recreational Services for children, young adults and adults who visit a nature reserve. This achievement demonstrates the importance of conservation and environmental awareness efforts implemented in this area. 1. The Brazilian Forest Certification Program (CERFLOR, for its initials in Portuguese) certifies that the forest management complies with environmental, economic and social criteria and standards established by the Brazilian Association of Technical Standards (ABNT, for its initials in Portuguese), which is part of the Brazilian Compliance Assessment System and INMETRO, with international recognition by the Programme for the Endorsement of Forest Certification (PEFC). Forest Stewardship Council® is a certification that covers all forestry activities, from the confirmation of compliance with environmental, economic and social guidelines to product distribution through the chain of custody and responsible forest management. _ PARTNERSHIP FOR THE AMAZON We know that we will not achieve our Commitments to Renewing Life by ourselves. With this conviction in mind, in 2021 we joined the project Promoting and Implementing Assisted Natural Regeneration in Mato Grosso and Pará, in partnership with the global and Brazilian chapters of the World Resources Institute, the Centro de Vida Institute (ICV, for its initials in Portuguese) and the Homem e Meio Ambiente da Amazônia Institute (IMAZON). This initiative seeks to create and establish financial mechanisms to encourage forest restoration, generate income and employment, and improve the lives of people living in the Amazon region. Through assisted natural regeneration techniques, it is possible to accelerate forest growth in abandoned areas or areas of low agricultural potential at lower cost and in less time. In the social area, the goal is that restoration can be combined with techniques that generate economic benefits Forest mosaic, state of Mato Grosso do Sul. Photo: Márcio Schimming. from the use of forests or from the consortium between native plants and agricultural crops. The project includes the restoration of approximately 260,000 hectares spread throughout eight municipalities (three in the state of Pará, where Suzano operates, and five in the state of Mato Grosso). _PLANOS DA MATA Suzano and SOS Mata Atlântica have been working in partnership since April 2021 to implement the Planos da Mata project (“Atlantic Forest Plan” project), which was developed to support the creation of municipal plans for the Atlantic Forest. The goal is to strengthen public policies in the area of planning and local land development that can mitigate negative impacts caused by climate change. The project is expected to inform the creation of an environmental master plan for 35 municipalities located in São Paulo, Espírito Santo and Bahia, states where Suzano has forests and units. 116 Suzano’s 2021 Annual Report Planet 117 _ INDUSTRIAL ECO-EFFICIENCY We advanced hundreds of internal projects to strengthen and protect our planted and native forest areas, as well as to expand multisectoral partnerships to promote projects to renewing life inspired by trees, benefiting our operations, society and the planet. In industrial processes, we made significant progress in water consumption, leading the company to evaluate the possibility of expanding its future ambitions. For this to happen, the technological update of our plants remains a challenge. In 2024, when Suzano will be celebrating its 100th anniversary, it will have the capacity to produce approximately 13 million tonnes of pulp per year. The company has advanced units, such as Três Lagoas II and Imperatriz, and has just approved the Mucuri unit (state of Bahia).Photo: Márcio Schimming. construction of the Cerrado project. On the other hand, the company also has units that rely on older equipment. We have an intensive Capex program, approved in October 2021, for our units in Aracruz and Jacareí, in the amount of approximately R$1 billion. With that, we want to accelerate the modernization of these industrial complexes, which will result in a significant reduction in operating costs, gains in energy efficiency, a reduction in chemical consumption, the update of assets to produce greater stability and operational availability, and, most importantly, a relevant decrease in greenhouse gas emissions through lower use fossil fuels, which will be replaced by renewable fuels. In this way, we continue to reinforce our focus on our Commitments to Renewing Life. Restored native forest, in the interior of São Paulo state. Photo: Sérgio Zacchi. _WATER IN THE INDUSTRY GRI 103-1, 103-2, 103-3 (Material topic: Water) Suzano’s industrial units operate as “sustainable water reservoirs”, a term used to refer to production processes that reuse more than 85% of the water withdrawn before returning it to the environment (as shown in the image below). First, the water withdrawn from surfaces (rivers) is treated in a water treatment plant to become suitable for industrial use, distribution and recirculation in the production process. Later, the effluents are treated under the conditions specified by Brazilian environmental laws. SUSTAINABLE RESERVOIR EVAPORATION 14.7% CHEMICAL INPUTS PLANT PULP 0.3% RECEIVING BODY OF WATER RETURN OF WATER TO RIVERS 85% USE/REUSE 4.5X TREATMENT 118 Suzano’s 2021 Annual Report Planet 119 In 2021, the company intensified its water management governance and made important progress toward its target of reducing water withdrawal in industrial operations by 15% by 2030. This target was included in the variable compensation of the leaders of each industrial unit. In addition, the implementation of a strict and solid routine in our plants resulted in much better results compared to 2020. In 2021, we reduced specific water withdrawal by 8% and used 26.3 cubic meters of water for each 1 tonne of product we manufactured. _STANDARDS Specific water consumption in industrial operations (m3/ton of saleable or finished product)¹ 2019 2020 2021 Suzano² Rio Verde² Limeira Jacareí Imperatriz Mucuri² Aracruz Belém Maracanaú (Fortaleza) Cachoeiro3 Três Lagoas Consolidated total 8.33 2.40 7.85 3.34 6.19 4.70 6.51 8.67 0.11 n/a 2.92 4.44 8.74 3.34 8.30 2.70 5.15 6.17 4.27 4.56 0.09 n/a 2.68 4.47 8.38 3.70 9.16 3.06 4.49 4.95 7.67 3.38 0.07 0.02 2.26 3.83 1. Water consumption is the difference between the amount of water withdrawn from the units and the amount of water returned to the environment within the environmental parameters of legislation in force (treated effluent) and losses (evaporation and incorporation into product). Additionally, to calculate the indicator, finished and saleable products from each unit are considered (in this case, pulp and the different types of paper and consumer goods). 2. After reviewing the calculations, Suzano and Rio Verde units had their 2019 and 2020 data corrected and the Mucuri unit had its 2020 data corrected. 3. Cachoeiro unit started operation in 2021, so they have no data to report for 2019 and 2020. Percentage of water withdrawn in industrial operations in water-stressed areas SASB RR-PP-140a.1 2019 0% 2020 0% 2021 0% _WASTE As part of its Commitments to Renewing Life, Suzano is also making progress to reduce by 70% the amount of industrial solid waste directed to disposal in company-owned or third-party landfills by transforming it into by-products. A few combined factors contributed to the company’s progress in this area in 2021. One of them was the engagement of industrial directors and managers, whose variable compensation is now also linked to the company’s commitments for 2025 and 2030. Other factors were the investments made by the company for the construction of two waste treatment centers, one in Três Lagoas (worth R$40 million, implemented in 2020) and another in Imperatriz (in the amount of R$32 million, implemented in 2021). Thanks to them, in 2021 we reduced the amount of waste directed to landfills by 34% compared to the previous year, transforming them into agricultural inputs for our eucalyptus forests and other agricultural crops in the regions where we operate. We also have a pilot project being implemented in the Mucuri unit, where we direct our waste to a third-party waste treatment facility. 0 2 0 2 31.7 kg of waste per tonne of pulp were directed to landfills. 1 2 0 2 20.8 kg of waste per tonne of pulp were directed to landfills. 0 3 0 2 The goal is to reduce the amount of waste directed to landfills per tonne of pulp produced to 13.3 kg Furthermore, in many cases, what is waste for the forestry industry becomes raw material for other sectors. As a way of accelerating the achievement of our goal, we created the VINO area (Sale of Non-Operating Items), as part of the Procurement team, to sell industrial waste generated by our operations. _STANDARDS Waste sent to landfill cell [kg/ton on dry basis (kg/t)] Consolidated total Waste generated, by type and operation [metric tons (t)] Forestry operations Industrial operations 2019 36.10 2020 2020 31.70 2021 20.80 2021 2019 Non- hazardous waste Hazardous Waste Total Non- hazardous waste Hazardous Waste Total Non- hazardous waste Hazardous Waste Total 1,513.36 1,373.18 2,886.54 1,028.00 907.00 1,935.00 8,512.55 1,004.66 9,517.21 1,322,823.45 1,489.19 1,324,312.64 1,417,100.66 1,068.40 1,418,169.06 1,422,529.00 1,325.75 1,423,854.75 Total 1,324,336.81 2,862.37 1,327,199.18 1,418,128.66 1,975.40 1,420,104.06 1,431,041.55 2,330.41 1,433,371.96 120 Suzano’s 2021 Annual Report Planet 121 _ENERGY GRI 103-1, 103-2, 103-3 (Material topic: Climate Change) Suzano is constantly investing in projects and initiatives to increase its production of renewable energy and its sale of electricity to the grid. We have a digital tool, developed internally by our teams, which recommends, through algorithms and in real time, the best allocation of available steam for each turbine, optimizing energy generation. We also developed a project with the goal of increasing the specific generation of steam by our industrial boilers per amount of fuel consumed, to increase the generation of electricity. One of our Commitments to Renewing Life is to increase the amount of renewable energy sent to the Brazilian energy matrix. The biggest step we have taken toward this goal was the approval of the Cerrado project, which will generate, on average, 180 MW of excess renewable energy, which will be sent back to the Brazilian grid. Learn about the results of our Greenhouse Gas Inventory – base year 2021, by visiting our Sustainability Center. THE ECONOMIZAÍ PROGRAM The Economizaí program (“Please Save” program) was launched in March 2021, at the Mucuri unit, with the goal of creating awareness of conscious and rational use of energy to drive a change in behavior and practices within our unit. All employees participate in this initiative, which includes concepts that go beyond the company’s walls and reach their homes and families. In October, the program was expanded to other Suzano units. However, due to scheduled shutdowns for general maintenance and other scheduling conflicts in some of the units, the pace of implementation and, consequently, the results of the program varied from one unit to another. In any case, the results achieved through December are significant and the trend is for the initiative to continue to advance in 2022. REDUCTION IN CONSUMPTION 32,267.9 MWh TOTAL: R$8,034,968.54 EconomizAí Program - 2021 Unit Mucuri MWH R$ 11,940.70 R$3,140,000.00 Imperatriz 14,334.00 R$2,866,850.22 Suzano Jacareí 1,601.20 R$432,324.00 4,392.00 R$1,595,794.32 _STANDARDS Imperatriz unit (state of Maranhão).Photo: Márcio Schimming. Degree of renewability of Suzano's energy matrix Percentage of energy from non-renewable sources Percentage of energy from renewable sources 2019 12.69% 87.31% 2020 12.82% 87.18% Overall 100.00% 100.00% 2021 12.31% 87.69% 100.00% Total of energy consumption (GJ) GRI 302-1 2019 2020 2021 Fuel from non-renewable sources 28,049,382.05 28,024,857.22 30,956,553.51 Fuels from renewable sources 216,521,617.38 214,386,646.59 220,444,126.07 energy consumption 3,429,652.68 3,498,800.20 3,872,202.27 Energy sold Overall 5,303,394.46 5,646,273.28 5,711,287.89 242,697,257.65 240,264,030.73 249,561,593.96 Carbon balance (removals and emissions) [in ton CO2 equivalent (tCO2e)]¹ Scope 1 Emissions Scope 2 Emissions Scope 3 Emissions Total emissions 2019 2020 2021 2,142,410.89 2,155,102.69 2,328,335.53 71,225.59 59,531.90 137,822.64 1,511,361.76 1,568,893.44 1,842,095.64 3,724,998.24 3,783,528.03 4,308,251.814 Balance between land use emissions and removals -15,476,553.88 -18,983,839.64 -13,204,509.36 Total balance (emissions - removals) -11,751,555.64 -15,200,311.61 -8,896,257.55 1. Water consumption is the difference between the amount of water withdrawn in the units and the amount of water returned to the environment following the environmental parameters of current legislation (treated effluent) and losses (evaporation and incorporation into products). In addition, the calculation of this indicator considers finished and salable products from each unit (in this case, pulp and different types of paper and consumer goods). 122 Suzano’s 2021 Annual Report Planet 123 Influencing society through initiatives that generate positive social and environmental impacts is a constant movement at Suzano. Because the company has a business model that is supported by the sustainable use of natural resources, is responsible for the management of an area of more than 2 million hectares in Brazil, and is a climate positive company, it made the commitment to help promote discussions that support the construction of a fairer and more sustainable world through multistakeholder action, dialogue and lasting partnerships. 09 D N A T N E M N R E V O G Y T E I C O S L I V I C D E Z I N A G R O POSITIONING 124 Suzano’s 2021 Annual Report 124 Suzano’s 2021 Annual Report Child reading a book. Photo: Jeremy Bishop/Unsplash. Government and organized civil society 125 POSITION _COLLABORATIVE AGENDA The climate and biodiversity crises stress the urgency of engaging governments, society and the private sector to, together, promote the necessary changes to fight them. Although the impacts are known, the time for the adoption of effective measures to address these issues is only getting shorter. The creation of a future focused on the low carbon economy is directly connected to the issues discussed at COP26, in Scotland, in November 2021. Leading up to the conference, Suzano held a series of preparatory events and meetings with companies, representatives of the Brazilian government, the press and global leaders. A group of Suzano executives represented the company at the conference. Suzano defends that, to achieve concrete targets related to lower carbon emissions in the long term, governments, companies and civil society must establish and achieve short- and medium-term goals. And the company remains attentive to new trends and methodologies. In addition to the SBTi, the creation of a new protocol by the GHG Protocol for measuring carbon removals will lead Suzano to set, in the medium term, targets according to the specifications of each new development. In the future, we expect to make new commitments in line with these two initiatives. _ CARBON CREDIT MARKET For Suzano, the carbon market linked to the Paris Agreement is a viable and promising mechanism for offsetting emissions and protecting nature. In this market, Brazil has the potential to generate carbon credits in the amount of approximately 1 billion tonnes of CO2 equivalent, with revenues of approximately US$100 billion by 20301. The forestry sector accounts for more than half of these credits, through initiatives related to sustainable management and the recovery of native forests. In this sense, the company joined the Climate Action 100+ initiative (led by investors to ensure that the largest corporate emitters of greenhouse gases adopt the necessary measures to fight climate change) and the Assessing Low-Carbon Transition (ACT) initiative for the pulp and paper industries. We also recently joined the Science Based Target Initiative (SBTi), the Business Ambition for 1.5°C campaign and the Race to Zero campaign, as part of these two initiatives. Creating a market mechanism for carbon trading is an initiative that requires the combined effort of many players. Positioned as part of the solution in the various forums on this issue, the company participates in collaborative initiatives that seek to establish standards and alignment around a common goal. This includes Suzano’s active engagement with peers, partners, governments and other entities to support regulatory mechanisms and impact projects that can influence the climate agenda. Click here to learn more about the Commitments to Renewing Life. 1. Report from the Brazil International Chamber of Commerce (https://www.iccbrasil.org/brasil-pode-ganhar-ate-us- 100bi-em-receitas-de-credito-de-carbono-ate-2030/). Eucalyptus plantation, Açailândia (state of Maranhão). Photo: Márcio Schimming. _ONE TRILLION NEW TREES BY 2030! GRI 102-12, 102-13 In 2021, Suzano became one of the 33 partner companies of the 1t.org movement. These companies made a public commitment to conserve, restore and grow more than 3.6 billion trees in more than 60 countries by 2030. It is important to note that we are the only Brazilian company that is part of this movement, in which we participate as a member of the Advisory Committee. This initiative, led by the platform 1t.org, aims to promote the planting of 1 trillion native trees worldwide by the end of this decade. It is part of the World Economic Forum’s efforts to accelerate nature-based solutions in support of the UN Decade on Ecosystem Restoration (2021-2030). COP26 – SUZANO’S POSITION GRI 103-2 For Suzano, COP26, the UN Climate Conference, held in Glasgow, Scotland, in November 2021, was a unique opportunity to discuss alternatives to ensure the planet’s climate security. The conference highlighted important advances with regards to targets and to a system to invest in projects for global decarbonization. The conference also made it clear that we will need immediate and effective action by governments, companies and consumers. In addition to the commitments made in support of this agenda, throughout 2021 Suzano worked to help promote knowledge and encourage practical action. In its 2050 Now website, a company initiative launched in October 2021, Suzano has made its positions, news and related analysis publicly available. Learn more by visiting the 2050 Now website. 126 Suzano’s 2021 Annual Report Government and organized civil society 127 We participate in various associations and collaborative initiatives to leverage trends and help society, the private sector and other industries to address issues that are material to all. This participatory effort is a way of putting one of our Cultural Drivers into practice: “It is only good for us if it is good for the world.” We collaborate in different forums, including: _We are a signatory of the UN Global Compact (participant level). _We are a member of the Brazilian Business Council for Sustainable Development (CEBDS, for its initials in Portuguese). _We participate in the Brazilian Business Life Cycle Assessment Network (LCA). _We serve on the Business for Nature's Strategic Advisory Group. _We are a member of the World Economic Forum and we have engaged as members of the 1t.org Corporate Alliance and Advisory Board. _Our CEO, Walter Schalka, is on the Board of Directors of Coalizão Brasil Clima Florestas e Agricultura (“Brazil Climate Forests and Agriculture Coalition”) _We are part of the Advisory Board of the GHG Protocol: Removal. _We are a member of the Forest Dialogue Coordination Council. _We are a member of the United Nations Global Compact’s CFO Taskforce for the SDGs _We are a member of the Taskforce on Nature- Related Financial Disclosures (TNFD). Visit our Sustainability Center to learn more about our partnerships and initiatives. Rufous-tailed Jacamar, state of Mato Grosso do Sul. Photo: Araquém Alcântara. 128 Suzano’s 2021 Annual Report Government and organized civil society 129 _SUZANO’S POSITIONS GRI 103-2 The company has clear positions on issues that are important to society and the communities where it operates. Learn about Suzano’s positions on key issues below: _Zero Deforestation Click here to learn more. _Human Rights Click here to learn more. _Land Management at Veracel Celulose Click here to learn more. _Operation of the Caravelas Maritime Terminal and occurrence of mud in Nova Viçosa Click here to learn more. Click here to see all positions published by Suzano. _Indigenous Communities Read in the Communities chapter. _Quilombola Communities Read in the Communities chapter. Domingos Rodrigues, participant in the Rural Land Development Program, in the Côrrego do Macuco Community, in Conceição da Barra (state of Espírito Santo). Photo: Márcio Schimming. _Itaúnas River Watershed In September 2021, Sociedade Amigos do Parque de Itaúnas (SAPI), a local NGO that works on social, environmental and cultural issues within the Itaúnas Park, contacted Suzano claiming that some of the company’s forestry activities near the Velha Antônia stream were taking place in areas allegedly included in the Action Plan for the Restoration of Native Forests in the northern region of the state of Espírito Santo. The company quickly suspended its activities in the area to investigate the complaint. So far, Suzano has not been provided with the technical details of the pilot project included in the Action Plan, preventing the company from properly investigating the accusation. Suzano is part of the Itaúnas River Basin Committee, which is responsible for the Plan. However, the document does not include the details or criteria that enable the identification of the areas covered by the plan. The company reaffirms its commitment to the Action Plan and has sought to identify the priority areas for restoration included in it, as well as to understand how they correlate with the restoration program already developed by Suzano to ensure alignment among the parties involved in its implementation. The company is in constant dialogue with all the organizations that are part of the Itaúnas River Basin Committee to clarify all the facts as soon as possible. While the investigation is being carried out, forestry activities in the area mentioned by SAPI remain suspended. . 130 Suzano’s 2021 Annual Report Government and organized civil society 131 Suzano’s relationship with communities living in the vicinity of its operations has always been based on open dialogue, collaborative work and community engagement, through a model of social engagement that legitimizes these communities. During the pandemic, maintaining dialogue has been a challenge for our collaboration. The situation has also been difficult for vulnerable people who relate to the company. However, we have not stopped working to transform our communities for the better. And we have good examples that demonstrate our commitment. GRI 103-1, 103-2, 103-3 10 s e i t i n u m m o C RELATIONSHIPS 132 Suzano’s 2021 Annual Report Valdete Alves Pavaneti, participant in the Rural Land Development Program and Baskets Delivery, in Nova Viçosa (state of Bahia). Photo: Márcio Schimming. Communities 133 RELATIONSHIPS Since we outlined our social strategy, we have strengthened our income generating processes year after year. Our Commitments to Renewing Life, announced in February 2020, established a new level of social performance for the company, requiring an increase in scale and scope. Our two commitments in the social area are directly linked to income generation and education, two important issues for which we want to create innovative and sustainable solutions by working together with the communities and civil society organizations in the areas where we operate. In line with these commitments, we organized ourselves to create and discuss the evolution of our Resilient Territories strategy. Rosimar Pereira da Silva, Babaçu coconut breaker, Sustainable Extractivism Program, in Imperatriz (state of Maranhão). Photo: Márcio Schimming. RESILIENT TERRITORIES The Resilient Territories strategy aims to leverage all the knowledge Suzano has accumulated during years of relationships with the community and partners in the areas where we work to influence public processes and policies that can benefit an increasing number of people and regions. The implementation of the strategy will start with the creation of a territory matrix, which will include a map of social and economic indicators for each area, the company’s influence, the key regional players, their innovation potential and the good practices already in place. In addition, this methodology will result in the construction of Territorial Plans, which will define important lines of work and projects that will contribute to increase the resilience of the regions where the company operates. In 2021, together with external partners, we concluded pilot projects in the states of Espírito Santo and Bahia and implemented this process in the state of Maranhão. In 2022, this methodology will also be implemented in the states of São Paulo and Mato Grosso do Sul. _ FIGHTING POVERTY AND ENHANCING EDUCATION Colmeias program, state of Mato Grosso do Sul. Photo: Araquém Alcântara. Suzano is present in more than 200 Brazilian municipalities, for which poverty and social and economic inequality are real challenges. The company recognizes that it has an important role to play and has made two Commitments to Renewing Life that reinforce its contribution to social development: reducing poverty and improving the quality of education. Our objective is to contribute to advance structural efforts, such as the creation of work and the generation of income, associated with the improvement of education. We believe that these are catalysts for community development that promote the autonomy of communities. Currently, our social programs benefit people in eight states: Bahia, Espírito Santo, Minas Gerais, Maranhão, Pará, Tocantins, Mato Grosso do Sul and São Paulo. In 2021, as we continued to expand our efforts to create work and generate income, we increased our social participation and helped lift more than 9,000 people (or 2,889 families) out of poverty. Despite the challenges imposed by the pandemic, we managed to exceed our annual target by 12.5% (our goal for 2021 was to lift 8,000 people out of poverty). This translated into an average income increase of 57.7%. In 2021, we managed to lift more than 9,000 people out of poverty which corresponds to 21,075 people benefited from the income generation programs 57.7% increase in average income 134 Suzano’s 2021 Annual Report Communities 135 To continue advancing, our strategy includes the establishment of partnerships with other private companies, government institutions and civil society for the collaborative creation of local development plans. With regard to our commitment to quality education, we established metrics to measure the progress of the Basic Education Development Index (IDEB, for its initials in Portuguese) biannually through 2030. Our baseline is the weighted average of public elementary education in priority municipalities, which, according to the most recent IDEB (2019) was 4.7. Our goal is that the municipalities served by Suzano reach 40% of their education target and a 6.6 weighted average. The challenging situation of education in Brazil, which was aggravated by the pandemic, required that the expectations regarding progress in the first cycle evaluated in 2021 be adjusted. In this sense, maintaining the 2019 average will be considered progress. The updated index will be published by the Ministry of Education in 2022. To support this commitment, the company has the Suzano Education Program, which invests in improving public education through the professional development of educators and social participation with a focus on student learning. In 2021, the methodology of the Suzano Education Program evolved and reached schools directly through training also for school administrators and teachers, to accelerate the expected results in the next nine years. In addition, together with intersectoral groups in the municipalities that include especially the areas of education, health and social services, we implemented a Social Participation Strategy. Our focus was to actively identify and monitor children and adolescents who are not is school or show a risk of dropping out of school. According to a study by UNICEF on the impact of the pandemic on education, Brazil is at risk of regressing two decades in access to education. Click here to learn more. Visit our Sustainability Center to learn more. In 2021, our work included: 13 Expansion of the program to new municipalities, totaling 36 municipalities in 7 Brazilian states (Bahia, Espírito Santo, Maranhão, Mato Grosso do Sul, Pará, Tocantins and São Paulo) 1,750 elementary schools 298,146 students from the public school system 3,766 direct participants – secretaries and technical education teams, school administrators, teachers (virtual classes) and intersectoral teams (education, health and social assistance) 312,339 people benefited, including students, educators and intersectoral teams 99% of the public served positively evaluated the program’s training to promote changes in educational practices Testimonial about the program by Ione Bandeira, guidance coordinator for the town of Itinga do Maranhão: “Our town is to be commended for the work with the new intersectoral partners, because several meetings were held and all of them [Health and Social Assistance Departments], together with the Department of Education, developed initiatives that could guarantee our local children and adolescents their right to education.” More than 800 students – representing 15% of the total number of students in the public school system – returned to the local school as a result of the social participation activities facilitated by the program. Ione Bandeira. Photo: Suzano's image bank. Participant of the Meu Ambiente program. Photo: Eliza Carneiro. _ ECOFUTURO INSTITUTE A non-profit organization founded in 1999 and maintained by Suzano, the Ecofuturo Institute contributes to transforming society through environmental conservation and the promotion of knowledge. Its main initiatives include the management the Neblinas Park and the Meu Ambiente program (“My Environment” program). In 2021, Ecofuturo concluded its Community Library project after two decades of work. To complete this cycle, four new libraries were inaugurated, one in the city of Suzano and three in the state of Maranhão—the latter was built with investments by Suzano in partnership with the state government through the Decent School program. Including these new facilities, the initiative opened 121 libraries in 12 states. 136 Suzano’s 2021 Annual Report Communities 137 MULTIDIMENSIONAL POVERTY INDEX The eradication of poverty in all its dimensions –that is, financial poverty, food insecurity, lack of access to basic services, low professional qualification and lack of personal security – remains one of the world’s biggest challenges to achieving sustainable development. Based on international experiences, including the United Nations’ Global Multidimensional Poverty Index (MPI) and the World Bank’s Multidimensional Poverty Measure, in 2021 we created the Suzano Multidimensional Poverty Index (MPI), which includes six indicators in three dimensions: income, health and education. The World Bank set the poverty line in upper-middle-income countries at US$5.50 per person/day (R$475 monthly in 2020). Therefore, families living with a per capita income below this number are considered multidimensionally poor. Concomitant deprivation in other indicators in addition to income indicates the intensity of a family’s poverty. Last year, in addition to establishing the components of the Suzano MPI and the methodology for measuring poverty, the company chose eight associations to carry out a pilot test, including indigenous, quilombola, agricultural, urban and artisanal fishing communities. The pilot project, scheduled for the first half of 2022, will test all the steps for calculating the MPI, from data collection to results. The company has already created a questionnaire that will provide a better understanding of the living conditions of the families in the vicinity of Suzano’s areas by systematically measuring the impact of our operations and by taking into account the levels of economic development and social transformation achieved in these regions. 2021 HIGHLIGHTS Implementing processes to minimize and mitigate social and economic impacts in places where access is limited or restricted has been a very complex task. Since the beginning of the COVID-19 pandemic, in 2020, we have worked to understand how to better face this challenge. Based on an analysis of the pandemic from a global perspective and the hundreds of commitments we have in the locations neighboring our operations, we decided to prioritize resources to maintain our ability to serve the communities, assuming that this would be a long-lasting crisis—which has proved to be true. In 2021, we continued to provide emergency support in all regions. We continued to embrace as many ideas as possible, based on partnerships and community engagement, to face the impacts caused by the coronavirus in the locations where we are present. At the same time, we dedicated efforts to developing new methodologies such as Resilient Territories. There are 3 million people below the poverty line in the areas where we operate. In the 56 municipalities where we prioritize our social strategy, this number totals 977,000. These figures are from the 2010 census—the absence of consistent data from the federal government confirms our responsibility and the expectations of these communities about Suzano’s efforts. The company recognizes its clear role in creating transformational solutions for society. The following were some of the initiatives we implemented: Emergency action: We focused our efforts on three main groups: priority municipalities for relationship-building; groups and institutions with limited income alternatives at the moment; and neighboring communities (urban and rural) with a high degree of social and economic vulnerability. Visit the Suzano Against the Coronavirus website to learn more. Evanzil São Pedro dos Santos, Farmer, Rural Land Development Program, in the Jacutinga community, Mucuri (state of Bahia). Photo: Márcio Schimming. Emergency Call for Proposals: To mitigate the effects of the pandemic, it was necessary to invest extra resources in initiatives, especially in highly vulnerable communities, which are the focus of our main social commitment. Food Security: Suzano delivered 41,715 grocery boxes. This initiative benefited 36 entities and more than 50,000 people in 77 municipalities in nine Brazilian states (Bahia, Espírito Santo, Maranhão, Mato Grosso do Sul, Minas Gerais, Pará, Pernambuco, São Paulo and Tocantins). The campaign engaged 26 suppliers, thanks to an investment of R$5.3 million by Suzano. Other projects: Suzano continued the programs and projects that were already being implemented in the communities, such as the Rural Land Development Program and the Colmeias project (“Beehive” project). Results of the Emergency Call for Proposals in 2021: R$1,165,000 invested 44 projects approved 2,951 people benefited by the projects Visit our Sustainability Center to learn more. 138 Suzano’s 2021 Annual Report Communities 139 Since the beginning of the COVID-19 pandemic, in 2020, we have worked to understand how to better face this challenge. We decided to prioritize resources to maintain our ability to serve the communities. _ OPERATIONAL DIALOGUE Suzano’s harvesting operations change the routine of communities around our planted areas. Therefore, before, during and after the harvest period, we host an activity named Operational Dialogues in these locations. In 2021, our Operational Dialogues included approximately 6,000 people and promoted 1,842 discussions in the municipalities where we operate, to provide information and answer questions. The objective is to monitor the company’s operations and explain all operational processes, in addition to making Suzano’s communication channels available to listen to suggestions that, whenever possible, the company incorporates into its process to mitigate or reduce negative impact. Community garden for women, in Prado (state of Bahia). Photo: Márcio Schimming. Pedro Dantas, Forest Nursery supervisor, Três Lagoas unit (state of Mato Grosso do Sul). Photo: Márcio Schimming. SOCIAL PERFORMANCE IN NUMBERS More than 37,000 people assisted by social programs and projects R$93 million in generated income, monitored monthly – an increase of 91% compared to 2020 35,000 tonnes of products and food produced by the participants 232 associations impacted, of which 128 received resources through public policies (24% growth compared to 2020) 140 Suzano’s 2021 Annual Report Communities 141 _ THE ISSUE OF LAND CONCENTRATION Suzano has approximately 1.4 million hectares of areas planted with eucalyptus trees and is responsible for near 1 million hectares of conservation areas. We have significant operations in xx municipalities, with different levels of land concentration. In some regions, the company’s activities are spread over more than 50% of their territory. When these areas were acquired by the company, they had already been anthropized—a large percentage was formed by degraded pastures that were recovered for the planting of our trees. Even so, eucalyptus monoculture continues to be the target of much criticism and questioning from society, which, despite being positive for keeping us informed about the hopes and concerns of the local communities, seems to us to be largely without foundation or technical justification, as we explore below. This issue, which is extremely important to Suzano, needs to be further explored and clarified. For us, rural zoning must respect the economic, social and cultural calling of each territory. The key question is: does monoculture prevent or limit the practice of traditional cultures, or does it threaten food security in the region? We understand that monoculture is harmful when it hinders traditional cultures or harms the local environment. Suzano affirms the right of these groups to traditionality and, recognizing its role, adopts the most advanced forest management practices, carries out family farming programs and supports economic and social development projects in the locations where it operates. This includes initiatives aimed at traditional communities, such as quilombola and indigenous peoples, founded on constant dialogue with the people involved. This is not to say that we are fully satisfied with our performance. We know that we have room to evolve, and our ambition is to generate and share value with everyone and help lift 200,000 people out of poverty in the areas where we operate by 2030. We work in locations that have a low human development index (HDI) and still practice very informal economic activities. We want to increase the promotion of forestry in these locations. We recognize that the social needs in these regions will always be greater than the capacity to absorb labor. Therefore, Suzano also develops and promotes programs to train and prepare local suppliers, so that they can work both with Eucalyptus plantation, Imperatriz (state of Maranhão). Photo: Márcio Schimming. GLOBAL CHILD FORUM For the first time, Suzano was tracked and scored in the Global Child Forum’s Benchmark Report 2021 – The State of Children’s Rights and Business, which analyzes strategies used by companies to protect children’s rights and offers research perspectives, best practices and risk assessment tools designed to unlock business opportunities that integrate children’s rights into their operations and communities. The pivotal study, done in collaboration with the Boston Consulting Group (BCG), surveyed 832 of the world’s largest companies. Suzano received an overall score of 7.3 out of 10 The overall average was 5.4 The average of our sector was 5.3 Suzano and with other local companies. As part of this process, we also want to support the many outsourced workers that are part of our ecosystem, giving them better conditions to establish themselves in the municipalities where we have a significant presence. Suzano builds bridges to better understand the communities and, through that, help them have a better quality of life. However, we recognize that we cannot to do it all alone. The solution for the issue of unequal wealth distribution along the chain, for example, does not depend only on the company. However, we want to influence the creation of public policies and, through the set of initiatives we share with governments, local entities and society, create wealth and social and environmental equality for all. 142 Suzano’s 2021 Annual Report Communities 143 INDIGENOUS COMMUNITIES QUILOMBO-DESCENDANT COMMUNITIES In the regions where they are present, these groups, for a long time, have mobilized against forestry activity in their surroundings, largely due to the overlapping of areas in polygons claimed in demarcation lawsuits. Our only existing overlap was resolved with the definitive demarcation of 11,000 hectares in the town of Aracruz, in 2007. The company promptly reverted the intrusion on indigenous territory. Additionally, for the past 10 years Suzano has maintained a comprehensive relationship and social investment program in the 12 villages (Tupiniquim and Guarani) in the municipality. The program includes integrated and long-term initiatives aimed at restoring the environmental conditions necessary for sociocultural practices, the affirmation of ethnic identity and the development of sustainable economic activities. Hermenegilda Angelo dos Santos, participant in the Cerâmica Vargem do Tanque program, in Cunha (state of São Paulo). Photo: Márcio Schimming. Some of the quilombola communities neighboring Suzano’s operations, represented by their associations, claimed legal action by the National Institute for Colonization and Agrarian Reform (INCRA, for its initials in Portuguese), for the demarcation of areas that overlap with some of the company’s areas. In 2021, in the north of the state of Espírito Santo, where Suzano has eucalyptus plantations, preservation areas and an operation base, seven repossession processes were carried out to stop the action of clandestine groups that took advantage of the quilombola land agenda in the region to encourage real estate speculation in company-owned areas close to traditional communities—going as far as trying to force them to participate in the occupations. The land issue is addressed in specific forums, with the participation of the community, the company and public authorities, through an inclusive process of dialogue. Apart from the land issue, for more than ten years Suzano has maintained an extensive relationship program with all these communities, including several lines of social investment and directly benefiting 20 quilombola associations. Initiatives in progress include technical and financial support to strengthen production and ensure food security; document regularization of traditional farmers and their community associations; processing and marketing of farm products; and development of small community businesses. Suzano also launched a Call for Proposals for Quilombola projects, an initiative in partnership with the National Coordination of the Networking Efforts of Rural Black Quilombola Communities (CONAQ, for its initials in Portuguese), focused on income generation initiatives. R$620,000 were invested in 41 Carlimar de Souza Santos and Solimar de Souza Santos, producers of the Gentil flour and participants in the 2020 Emergency Call for Proposals, in Alcobaça (state of Bahia). Photo Márcio Schimming. projects by individual producers, micro- entrepreneurs and quilombola associations. In 2021, 444 quilombo-descendant families benefited from our social programs in the north of the state of Espírito Santo. LAND RIGHTS MOVEMENTS and others established a negotiation channel to find a conciliatory solution to land conflicts in the south of Bahia. An agreement benefiting all parties was reached, and almost 600 families were settled. The agreement also included the Agroecological Settlements Program, started in 2011. Irregular occupation of company areas is the modus operandi of these groups, including the Landless Rural Workers Movement (MST, for its initials in Portuguese). After years of occupations by the MST and requests for reinstatement by the company, with the support of the government of the state of Bahia, players including MST, Suzano, Veracel We are currently negotiating conciliatory solutions with the MST and other strategic players for occupations in the states of Espírito Santo and Minas Gerais. We still deal with occupations by smaller groups in Bahia, Espírito Santo and Maranhão. The most critical cases are in the town of Conceição da Barra. 144 Suzano’s 2021 Annual Report Communities 145 Foto: Arquivo pessoal. Andréia Coutinho LOUBACK Has a bachelor’s degree in Journalism from PUC-Rio and a master’s degree in Ethnic-Racial Relations from CEFET/RJ and is a specialist in climate justice. She is currently a fellow of Fulbright’s Humphrey Fellowship program (2021-2022) at the University of California (UC Davis) in the United States. She worked as a communications coordinator at Instituto Clima e Sociedade (iCS) and at Instituto Alana’s Climatic and Socio-environmental Justice project. She then coordinated an unprecedented study on climate justice, gender and inequalities, which will soon be launched by the Climate Gender working group of the Climate Observatory, and also actively participated in the Brazilian translation of the book Climate Justice: Hope, Resilience and the Fight for a Sustainable Future, by Mary Robinson, former President of Ireland. She is currently doing a professional residency as a climate justice specialist at the United Nations Population Fund (UNFPA) in New York as part of her fellowship. Her main passions and work areas xinclude climate and socio-environmental justice, inclusive urbanization and racial inequalities. S R E D A E R L A N R E T X E . 1 1 As a communicator, I often say that annual reports are one of the best tools to provide a review of the past—not just of the past year, but of a long history of many ups and downs, challenges and transformations that we experience in Brazil in short periods of time. Like a memoir, they offer us perspectives from the past, the small details of the present and an idea of how far we can go into the future. Therefore, I commend the collective work of so many hands and areas to create this comprehensive narrative, which only exists thanks to the dedication of Suzano’s 36,000 direct and indirect employees. These 159 impeccably designed pages give us access to a large amount of data, figures, stories and results that demonstrate Suzano’s global leadership in its industry. There is considerable balance among financial, environmental and corporate governance highlights, including comparisons between 2020, 2021 and 2030. It must be said that innovability is a feminine noun in the Portuguese language. If the company wants to exude this attribute, it must pursue gender equity more intentionally. As is said in the report, innovation is not only reflected in the development of projects and processes, but also in governance. This demands constant and uninterrupted action to reinforce institutional gender policies within the chain, teams, customers and suppliers. Having 22.5% of leadership positions occupied by women in 2021 and 30% occupied by women and people of color by 2025 is still unambitious and short of true innovation, which must always be intersectional. A critical argument regarding diversity, equity and inclusion is how inseparable they are from climate, social and environmental justice in Brazil. Therefore, I would like to recognize two missing components: 1) inclusion policies that also consider indigenous people and 2) greater level of detail and visibility of initiatives related to indigenous communities, quilombola remnants and land rights movements. In addition to providing a numerical account of what the company has done, it is extremely important to collect and publish short testimonials and stories about what these representatives, families and groups have to say. These voices reinforce the legitimacy of and the commitment to reducing inequalities. Finally, more than celebrating results, we must always learn to communicate them in a relatable manner and with the necessary urgency. In this sense, data and numbers related to corporate communications are also essential to measure the impact of Suzano’s presence on social media, its website and the coverage it receives from the Brazilian media. Therefore, I suggest the creation of a section dedicated to communication indicators and overall metrics, which, without a doubt, is a strategic area for the company’s reputation, crisis management, positions and narrative. This is a time of multiple crises: climate, political, economic, social and health. The Commitments to Renewing Life, so well recorded from page 30 onwards, cannot wait too long. In times of so many deaths and losses, the well-being of the planet and people becomes urgent. 146 Suzano’s 2021 Annual Report External readers 147 Gonzalo Muñoz e MANUIA Between 2019 and 2021, Gonzalo played a global role as one of the two United Nations High Level Climate Action Champions for the Conference of the Parties (COP). Currently, he is a member of the Advisory Board for the UN Global Climate Action Agenda. Previously, he co-founded and directed TriCiclos, one of the most recognized Latin American companies in the area of circular economy and recycling. Gonzalo is a co-founder of Sistema B and has been a member of B Lab’s global board for the past seven years. He is also a board director of the Global Foodbanking Network. Gonzalo has been a member of the National Committees on Water, Climate Action, Green Hydrogen, Electromobility and Circular Economy. He is currently chairman of the board of directors of TriCiclos and co-leader of Manuia Consultoria. The development of Suzano’s report was based on the highest standards of sustainability reporting, such as GRI, TCDF and IIRC. The company is also linked to important global commitments on sustainability and the climate agenda: Race to Zero, Climate Action 100+, SDGs and the Global Compact. All of this demonstrates the company’s strength and commitment to this issue. The report also attests to Suzano’s strong work in the ESG arena, providing a broad perspective of all areas. Information included in the report shows that the company has, in general, good measurement of its impacts and a call to accelerate positive action through its 2050 Now initiative. The innovability agenda is very interesting from the core business perspective, but it presents an opportunity for a broader view. Considering the planting phase, the focus is on the development of genetically modified variations to improve productivity and reduce water and energy consumption. In this case, there is an opportunity regarding the company’s position on recovery and regeneration. When looking at the issue of regenerative planting, there are three points to be considered: regeneration of areas for cultivation, preservation through natural corridors of available area and planting model. The first two points were covered in the report. The challenge is mainly linked to the planting model. It must go beyond the conventional monoculture approach and consider the option of diversified planting and polyculture that can help address challenges of other sectors and be a competitive advantage. Regarding developed products, the positive impact is focused on the renewable source of the raw materials. This can in fact be an advantageous starting point in relation to non-renewable materials, but, especially in the case of competition with plastic resins in packaging, the textile industry and the use of lignin, it is essential to have analyses that demonstrate that your products are better throughout their entire life cycle compared to most common options. Another key issue is to ensure participation in the creation of this ecosystem to validate that they are beneficial options, even after use by consumers, encouraging reusability and recycling. This last point is linked to the emissions inventory. It is a major milestone that the company already has a negative carbon balance, considering scopes 1, 2 and 3. Specifically with regard to scope 3, it is worth further detailing what is being considered and including in the scope the total life cycle of products and services. Finally, regarding the social agenda, Suzano’s 2030 commitments include lifting 200,000 people out of poverty. The indicator used to measure success in this area is income growth. There is an opportunity here to enhance this focus by looking at a resilience agenda. Globally, this issue is connected with the goal of promoting resilience to 4 billion people who live in situations of social vulnerability and are already affected by climate change. This report demonstrates Suzano’s important pioneering spirit and the seriousness of its sustainability strategy and execution, showing that the company is an important player, not only within the forestry industry, but also in the Brazilian business sector. And with that, there are always opportunities to expand this work through multi-company initiatives and thus further enhance the positive results. 148 Suzano’s 2021 Annual Report Foto: Arquivo pessoal. External readers 149 ASSURANCE STATEMENT BUREAU VERITAS 4. Evaluation of the systems used for data compilation; The following limitations apply for this assurance engagement: 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 2021 (hereinafter referred to as the Report) and the company's Commitments to Renewing Life (CRL). 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 Statement. 5. Assessment 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 Reasonable, according to the requirements of the ISAE 3000 Standard2, which were incorporated to the internal assessment protocols of Bureau Veritas. SCOPE OF WORK METHODOLOGY The scope of this verification encompassed: The Assurance covered the following activities: EXCLUSIONS AND LIMITATIONS 1. The Standards1 of the Global Reporting InitiativeTMGRI for Sustainability Reports, for the period from 1 January to 31 December 2021; 2. The Verification of CRLs, regarding the correct parameter settings of the associated indicators, their baselines and an assessment regarding the accuracy of the data obtained; 1. Interviews with the personnel responsible for material issues and involved in the Report content; 2. Remote interviews on corporate processes (Head office located in São Paulo – SP) and processes regarding the following operational sites: Aracruz (ES); Imperatriz (MA) and Jacareí (SP); 3. Review of documentary evidence provided by Suzano in relation to the reporting period (2021); 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 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. 1. Materiality, Stakeholder Inclusiveness, Sustainability Context, Completeness, Balance, Comparability, Accuracy, Periodicity, Clarity, and Reliability. 2. International Standard on Assurance Engagements 3000 – Assurance Engagements other than Audits or Reviews of Historical Financial Information. R E T T E L E C N A R U S S A . 2 1 150 Suzano’s 2021 Annual Report Assurance letter 151 TECHNICAL OPINION ON THE REPORT AND ITS VERIFICATION also does not present the approach of social management in local communities by region, with their respective characteristics; • Suzano´s Report consists of a complete edition and a Sustainability Center, both available on the company's website. The scope of our verification covered the 2021 data and indicators on the material topics presented in these publications, with the exception of the specific indicators of TCFD and SASB; • The Report is based on 8 material topics defined in a materiality assessment carried out in 2021. In our understanding, the review of the topics brings an updated perspective on the impacts of the company's activities. We highlight the inclusion of new topics: Innovability, biodiversity & ecosystem services, human rights and diversity &inclusion; • In respect to the implementation of the Cerrado project, we observed, through interviews and document review, a 2021 report, which demonstrates a broad participatory diagnosis and the involvement of local actors, in the analysis of the socio-environmental impacts of the construction of the industrial site. This evidence that Suzano seeks to implement a sustainability strategy in the region. However, the Report presents little information regarding this process; • 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; • Regarding “incidents of discrimination and corrective actions taken” (GRI indicator 406-1) in the Cerrado project, it was not possible to evidence the data associated with the indicator; • Related to the proportion of spending on local suppliers (GRI 204-1 indicator), although we have seen improvements in internal supply processes with a project to recategorize suppliers, we noted that Suzano is still looking for effective procedures to improve its performance on the indicador; • In relation to risks and opportunities related to biodiversity and ecosystem services, we found that the Report presents qualitative information, especially on opportunities, not disclosing risk scenarios; and not the technical requirements of the GRI indicator, which covers all types of waste sent to final destination; • It is our understanding that sufficient indicators have been reported, to achieve the Core option of the GRI Standard for Sustainability Reports. TECHNICAL OPINION ON THE COMMITMENTS TO RENEWING LIFE (CRL) • During our Verification, we evidenced that Suzano's Commitments were structured in an objective and challenging manner. Additionally, we observed that Suzano has established documented procedures in order to ensure the planning, operation and control of each CRL, as well as the creation of an information database in the Sharepoint system (Microsoft) to analyze and quarterly monitor the results; • We verified that, for 2 consecutive years, Suzano did not reach the goal established in relation to the Energy Commitment “Increase the export of renewable energy by 50%”, due to the occurrence of unplanned events, such as the shutdown of the turbine of the turbogenerators (TG) of the Imperatriz unit in 2021; • We observed that Suzano reports data on • We evidence that in 2021 Suzano established • We noticed that Suzano has robust processes for collecting and consolidating social performance data in relation to the communities in its surroundings. However, the Report is timid in presenting results of management reviews on the year 2021, in relation to the negative and/or positive social impacts of its activities. The Report all waste generated at its units. However, we evidenced that, in some operational units, the method of compiling the data of the GRI 306-6 indicator “Waste sent for final destination”, was aligned with the Waste Commitment, which includes industrial solid waste destined for own or third-party landfills, the Commitment of “Connecting 500 thousand hectares of priority areas for biodiversity conservation in the Cerrado, the Atlantic Forest and the Amazon by 2030”, referring to the Biodiversity CRL. In this cycle, it was possible to verify the methodology used to structure the goal, as well as the unfolding of the commitment in actions, among them, the definition of the ecological corridors. From the next cycle onwards, it will be possible to assess the reliability and accuracy of the data generated; • We observed that the Commitment “Water in the Forest – Increase water availability in 100% of critical watersheds” is a set of operational actions in the company's areas. We also evidenced that in 2021 Suzano expanded the studies to measure the use of water in the forest, using medium and high resolution satellites, to establish the available water in critical hydrographic basins; • We evidenced a robust structure of Suzano’s internal diversity and inclusion program called “Somos Plurais”, an initiative that provides for actions committed to respecting and promoting the rights of employees and disseminating engagement practices, which are directly related to the Diversity & Inclusion (D&I) Commitment for Women, D&I Black People, D&I Inclusive Environment LGBTQIAP+ and People with Desabilities (PwD) and D&I Accessibility. We found that the 2021 results of the D&I Commitments made significant progress compared to the established baseline; • Regarding the Commitment “Removing people from the poverty line”, we evidenced a robust system of registering people and monitoring projects that increase their economic gains. However, the challenges of managing a large database of people, as more people are monitored for economic gains, requires a refined methodology. 152 Suzano’s 2021 Annual Report Assurance letter 153 unplanned events hinder the achievement of the established goal; DECLARATION OF INDEPENDENCE AND IMPARTIALITY CONTACT Bureau Veritas Certification is available for further clarification on https://certification.bureauve- ritas.com.br/fale-conosco/ Telephone (55 11) 2655-9000. São Paulo, Brazil, April 2022. Bureau Veritas Certification is an independent professional services firm specializing in Quality, Health, Safety, Socialand Environmental Management, with more than185 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. Alexander Vervuurt Lead Auditor; Assurance Sustainability Reports (ASR) Bureau Veritas Certification – Brazil 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. RECOMMENDATIONS • Regarding the socio-environmental impacts of the Cerrado project, increase the next publication with strategic and operational information, based on the realization (in 2021) of a participatory diagnosis and the involvement of local actors; • Increase the publication with information on the positive and negative socio-environmental impacts on the territory, related to local communities, as well as the management approach on the subject; • Publish the cases of discrimination associated with the Cerrado project; • 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 Commitment “Removing people from the poverty line”: Implement a consolidated procedure for monitoring the poverty target with data analysis capacity compatible with the target scale. It is important to establish an objective, reliable and independent database for the economic measurement of the people covered by this goal. The correlation of production data with economic gains can be used for this, as it avoids the single use of self-declared data by people. The tools used to monitor the Commitment shall be compatible with the volume of data to be processed. CONCLUSION As a result of our assurance we concluded that: • The information presented in the Report is • Improve strategic actions to increase the balanced, consistent and reliable; proportion of spending on local suppliers, in accordance with GRI indicator 204-1; • Present the negative aspects (losses) that will be mapped in the study of losses and gains of ecosystem services, bringing greater balance in the presentation of Suzano's impacts on biodiversity; • As respect to the Energy Commitment, • 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; Suzano shall review its performance regarding the export of renewable energy, since • The Commitments to Renewing Life were established in a structured and challenging way. 154 Suzano’s 2021 Annual Report Assurance letter 155 13. GRI, SASB, TCFD AND WEF CONTENT INDEX GRI 102-55 GRI standards Disclosure PDF page / Link to Sustainability Center / Direct answer Omission Global Compact Principles SDG _ GRI CONTENT INDEX (102-55) GRI standards Disclosure GRI 101: Foundation 2016 GRI 102: GENERAL DISCLOSURES 2016 PDF page / Link to Sustainability Center / Direct answer Omission Global Compact Principles SDG 102-1 Name of the organization 18 102-2 Activities, brands, products and services 18, 20 and Sustainability Center 102-3 Location of headquarters Headquarters: Av. Professor Magalhães Neto, 1752 – 10th floor, suites 1010 and 1011 Salvador - BA - Brazil Zip code: 41.810-012 Central Office: Av. Brigadeiro Faria Lima, 1355 – 8th floor São Paulo - SP - Brazil Zip code: 01.452-919 102-4 Location of operations 23 102-5 Ownership and legal form Suzano S.A. is a publicly traded forestry- based company controlled by Suzano Holding, with shares traded on the B3 (Brasil, Bolsa, Balcão) and the NYSE (New York Stock Exchange). 102-6 Markets served 70 and Sustainability Center 102-7 Scale of the organization 22 and Sustainability Center GRI 102: General Disclosures 2016 102-8 Information on employees and other workers 61, 62 and Sustainability Center 102-9 Supply chain 86 and Sustainability Center 102-10 Significant changes to the organization and its supply chain 28 102-11 Precautionary principle or approach Sustainability Center 102-12 External initiatives 127 and Sustainability Center 102-13 Membership of associations 127 and Sustainability Center 102-14 Statement from senior decision-maker 4 102-15 Key impacts, risks and opportunities Sustainability Center 102-16 Values, principles, standards and norms of behavior Sustainability Center 102-17 Mechanisms for advice and concerns about ethics 47 and Sustainability Center 102-18 Governance structure 40 and Sustainability Center 102-19 Delegating authority Sustainability Center 102-20 Executive-level responsibility for economic, environmental and social topics Sustainability Center 102-21 Consulting stakeholders on economic, environmental and social topics Sustainability Center 102-22 Composition of the highest governance body and its committees 40 and Sustainability Center 102-23 Chair of the highest governance body 40 and Sustainability Center 102-24 Process for nominating and selecting the highest governance body and its committees Sustainability Center 102-25 Conflicts of interest Sustainability Center 102-26 Role of highest governance body in setting purpose, values and strategy Sustainability Center 102-27 Collective knowledge of highest governance body Sustainability Center 102-28 Evaluating the highest governance body’s performance Sustainability Center 102-29 Identifying and managing economic, environmental and social impacts Sustainability Center GRI 102: General Disclosures 2016 8.5, 10.3 102-30 Effectiveness of risk management processes Sustainability Center 102-31 Review of economic, environmental and social topics Sustainability Center 102-32 Highest governance body’s role in sustainability reporting Sustainability Center 102-35 Remuneration policies Sustainability Center 102-36 Process for determining remuneration Sustainability Center 102-37 Stakeholders’ involvement in remuneration Sustainability Center 102-38 Annual total compensation ratio Sustainability Center 16.3 16.3 102-39 Percentage increase in annual total compensation ratio Sustainability Center 102-40 List of stakeholder groups 8 and Sustainability Center 16.7 5.5, 16.7 16.6 5.5, 16.7 16.6 16 16.7 16.7 156 Suzano’s 2021 Annual Report GRI, SASB, TCFD and WEF Content Index 157 GRI standards Disclosure PDF page / Link to Sustainability Center / Direct answer Omission Global Compact Principles SDG GRI standards Disclosure PDF page / Link to Sustainability Center / Direct answer Omission Global Compact Principles SDG 102-41 Collective bargaining agreements Sustainability Center 102-42 Identifying and selecting stakeholders Sustainability Center 102-43 Approach to stakeholder engagement Sustainability Center 102-44 Key topics and concerns raised 8 and Sustainability Center 102-45 Entities included in the consolidated financial statements 8 102-46 Defining report content and topic boundaries 8 and Sustainability Center 102-47 List of material topics 8 and Sustainability Center GRI 102: General Disclosures 2016 102-48 Restatements of information 102-49 Changes in reporting Restatements of information, if available, are presented throughout the Report and the Sustainability Center. No significant changes in the boundary and scope of material topics were made during the reporting period. 102-50 Reporting period January 1, 2021 to December 31, 2021. 102-51 Date of most recent report Annual Report 2020, covering the period between January and December of that year. 102-52 Reporting cycle Annual. 102-53 Contact point for questions regarding the report 102-54 Claims of reporting in accordance with the GRI Standards 102-55 GRI content index 102-56 External assurance 14 8 156 8 MATERIAL TOPIC: CLIMATE CHANGE 103-1 Explanation of the material topic and its boundary 11, 122 and Sustainability Center GRI 103: Management Approach 2016 103-2 The management approach and its components 29, 122, 127 and Sustainability Center 3, 9, 12, 13 103-3 Evaluation of the management approach 29, 122 and Sustainability Center GRI 201: Economic Performance 2016 201-2 Financial implications and other risks and opportunities due to climate change Sustainability Center 13.1 8.8 GRI 302: Energy 2016 302-1 Energy consumption within the organization Sustainability Center 302-2 Energy consumption outside of the organization Sustainability Center 302-3 Energy intensity Sustainability Center 305-1 Direct (Scope 1) GHG emissions Sustainability Center GRI 305: Emissions 2016 305-2 Energy indirect (Scope 2) GHG emissions Sustainability Center 305-3 Other indirect (Scope 3) GHG emissions Sustainability Center 7.2, 7.3, 8.4, 12.2, 13.1 7.2, 7.3, 8.4, 12.2, 13.1 7.3, 8.4, 12.2, 13.1 3.9, 12.4, 13.1, 14.3, 15.2 3.9, 12.4, 13.1, 14.3, 15.2 3.9, 12.4, 13.1, 14.3, 15.2 7, 8, 9  7, 8, 9  7, 8, 9  305-4 GHG emissions intensity Sustainability Center 7, 8, 9  13.1, 14.3, 15.2 305-7 Nitrogen oxides (NOX), sulfur oxides (SOX) and other significant air emissions Sustainability Center 7, 8, 9  3.9, 12.4, 14.3, 15.2 MATERIAL TOPIC: BIODIVERSITY 103-1 Explanation of the material topic and its boundary 11, 29, 100, 106 and Sustainability Center GRI 103: Management Approach 2016 103-2 The management approach and its components 29, 100, 106, 130 and Sustainability Center 103-3 Evaluation of the management approach 100, 106 and Sustainability Center 304-1 Operational sites owned, leased, managed in, or adjacent to, protected areas and areas of high biodiversity value outside protected areas Sustainability Center GRI 304: Biodiversity 2016 304-2 Significant impacts of activities, products and services on biodiversity Sustainability Center 6, 14, 15 8, 9  6.6, 14.2, 15.1, 15.5 8, 9  6.6, 14.2, 15.1, 15.5 304-3 Habitats protected or restored Sustainability Center 8, 9  6.6, 14.2, 15.1 304-4 IUCN Red List species and national conservation list species with habitats in areas affected by operations Sustainability Center MATERIAL TOPIC: LAND DEVELOPMENT GRI 103: Management Approach 2016 GRI 202: Market Presence 2016 103-1 Explanation of the material topic and its boundary 103-2 The management approach and its components 11, 29, 132 and Sustainability Center 29, 130, 132 and Sustainability Center 103-3 Evaluation of the management approach 132 and Sustainability Center 202-1 Ratios of standard entry level wage by gender compared to local minimum wage Sustainability Center 202-2 Proportion of senior management hired from the local community Sustainability Center 8, 9  6.6, 14.2, 15.1, 15.5 1, 2, 5, 8, 9, 11, 16 1.2, 5.1, 8.5 8.5 158 Suzano’s 2021 Annual Report GRI, SASB, TCFD and WEF Content Index 159 GRI standards Disclosure PDF page / Link to Sustainability Center / Direct answer Omission Global Compact Principles SDG GRI standards Disclosure PDF page / Link to Sustainability Center / Direct answer Omission Global Compact Principles SDG GRI 203: Indirect Economic Impacts 2016 GRI 411: Rights of Indigenous Peoples 2016 GRI 413: Local Communities 2016 203-1 Infrastructure investments and services supported Sustainability Center 203-2 Significant indirect economic impacts Sustainability Center 5.4, 9.1, 9.4, 11.2 1.2, 1.4, 3.8, 8.2, 8.3, 8.5 411-1 Incidents of violations involving rights of indigenous peoples 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 Sustainability Center  1, 2, 4 2.3 Sustainability Center Sustainability Center 1.4, 2.3 MATERIAL TOPIC: WATER 103-1 Explanation of the material topic and its boundary 11, 29, 119 and Sustainability Center GRI 103: Management Approach 2016 103-2 The management approach and its components 29, 119 and Sustainability Center 103-3 Evaluation of the management approach 119 and Sustainability Center 303-1 Interactions with water as a shared resource Sustainability Center 303-2 Management of water discharge-related impacts Sustainability Center GRI 303: Water and Effluents 2018 303-3 Water withdrawal Sustainability Center 303-4 Water discharge Sustainability Center 303-5 Water consumption Sustainability Center MATERIAL TOPIC: HUMAN RIGHTS 6, 12, 14 6.3, 6.4, 6.A, 6.B, 12.4 6.3 6.4 6.3 6.4 8, 9  8, 9  8, 9  8, 9  8, 9  103-1 Explanation of the material topic and its boundary 103-2 The management approach and its components 11, 29, 132 and Sustainability Center 29, 130, 132 and Sustainability Center 5, 8, 16 103-3 Evaluation of the management approach 132 and Sustainability Center 402-1 Minimum notice periods regarding operational changes Sustainability Center 407-1 Operations and suppliers in which the right to freedom of association and collective bargaining may be at risk Sustainability Center 8.8 8.8 1, 2, 3, 4, 5, 6 GRI 103: Management Approach 2016 GRI 402: Labor/ Management Relations 2016 GRI 407: Freedom of Association and Collective Bargaining 2016 GRI 408: Child Labor 2016 GRI 409: Forced or Compulsory Labor 2016 408-1 Operations and suppliers at significant risk for incidents of child labor 409-1 Operations and suppliers at significant risk for incidents of forced or compulsory labor GRI 410: Security Practices 2016 410-1 Security personnel trained in human rights policies or procedures GRI 412: Human Rights Assessment 2016 412-2 Operations that have been subject to human rights reviews or impact assessments MATERIAL TOPIC: DIVERSITY AND INCLUSION Sustainability Center 1, 2, 6 5.2, 8.7, 16.2 Sustainability Center 1, 2, 3 5.2, 8.7 Sustainability Center 1, 2, 5  16.1 Sustainability Center 1, 2, 3, 4, 5, 6 103-1 Explanation of the material topic and its boundary 11, 29, 53 and Sustainability Center GRI 103: Management Approach 2016 103-2 The management approach and its components 29, 53 and Sustainability Center 103-3 Evaluation of the management approach 53 and Sustainability Center 3, 5, 8, 10 401-1 New employee hires and employee turnover Sustainability Center  6 5.1, 8.5, 8.6, 10.3 GRI 401: Employment 2016 401-2 Benefits provided to full-time employees that are not provided to temporary or part-time employees Sustainability Center 3.2, 5.4, 8.5 401-3 Parental leave Sustainability Center  6 5.1, 5.4, 8.5 GRI 405: Diversity and Equal Opportunity 2016 405-1 Diversity of governance bodies and employees Sustainability Center 5.1, 5.5, 8.5 405-2 Ratio of basic salary and remuneration of women to men Sustainability Center 5.1, 8.5, 10.3 GRI 406: Non- discrimination 2016 406-1 Incidents of discrimination and corrective actions taken Sustainability Center 1, 2, 3, 4, 5, 6 5.1, 8.8 MATERIAL TOPIC: SUPPLIER MANAGEMENT 103-1 Explanation of the material topic and its boundary 11, 29, 88 and Sustainability Center GRI 103: Management Approach 2016 103-2 The management approach and its components 29, 88 and Sustainability Center 103-3 Evaluation of the management approach 88 and Sustainability Center 8 160 Suzano’s 2021 Annual Report GRI, SASB, TCFD and WEF Content Index 161 GRI standards Disclosure PDF page / Link to Sustainability Center / Direct answer Omission Global Compact Principles SDG GRI standards Disclosure PDF page / Link to Sustainability Center / Direct answer Omission Global Compact Principles SDG GRI 204: Procurement Practices 2016 GRI 308: Supplier Environmental Assessment 2016 GRI 414: Supplier Social Assessment 2016 204-1 Proportion of spending on local suppliers Sustainability Center 308-1 New suppliers that were screened using environmental criteria Sustainability Center 308-2 Negative environmental impacts in the supply chain and actions taken Sustainability Center 414-1 New suppliers that were screened using social criteria Sustainability Center 414-2 Negative social impacts in the supply chain and actions taken Sustainability Center 8.3 306-3 Waste generated Sustainability Center GRI 306: Effluents and Waste 2016 306-4 Waste diverted from disposal Sustainability Center 306-5 Waste directed to disposal Sustainability Center 7, 8, 9 7, 8, 9 7, 8, 9 3.9, 11.6, 12.4, 12.5 3.9, 11.6, 12.4, 12.5 3.9, 11.6, 12.4, 12.5 GRI 307: Environmental Compliance 2016 307-1 Non-compliance with environmental laws and regulations Sustainability Center 7, 8, 9  16.3 7, 8, 9  7, 8, 9  5.2, 8.8, 16.1 5.2, 8.8, 16.1 MATERIAL TOPIC: INNOVABILITY 103-1 Explanation of the material topic and its boundary 103-2 The management approach and its components GRI 103: Management Approach 2016 11, 16, 29, 70 and Sustainability Center 16, 29, 70 and Sustainability Center 9, 15, 16 GRI 403: Occupational Health and Safety 2018 103-3 Evaluation of the management approach 16, 70 and Sustainability Center OTHER NON-MATERIAL STANDARDS MONITORED AND REPORTED 403-1 Occupational health and safety management system Sustainability Center 403-4 Worker participation, consultation and communication on occupational health and safety 403-7 Prevention and mitigation of occupational health and safety impacts directly linked by business relationships Sustainability Center Sustainability Center 403-8 Workers covered by an occupational health and safety management system Sustainability Center 403-9 Work-related injuries Sustainability Center 201-1 Direct economic value generated and distributed Sustainability Center 8.1, 8.2, 9.1, 9.4, 9.5 403-10 Work-related ill health Sustainability Center 8.8 8.8, 16.7 8.8 8.8 3.6, 3.9, 8.8, 16.1 3.3, 3.4, 3.9, 8.8, 16.1 4.3, 4.4, 4.5, 5.1, 8.2, 8.5, 10.3 GRI 404: Training and Education 2016 GRI 415: Public Policy 2016 GRI 419: Socioeconomic Compliance 2016 404-1 Average hours of training per year per employee Sustainability Center 1, 6  404-3 Percentage of employees receiving regular performance and career development reviews Sustainability Center 1, 6  5.1, 8.5, 10.3 415-1 Political contributions Sustainability Center 10  16.5 419-1 Non-compliance with laws and regulations in the social and economic area Sustainability Center  10 16.3 GRI 201: Economic Performance 2016 GRI 205: Anti-corruption 2016 205-1 Operations assessed for risks related to corruption Sustainability Center 205-2 Communication and training about anti-corruption policies and procedures Sustainability Center 205-3 Confirmed incidents of corruption and actions taken Sustainability Center Suzano analyzes the entire company and does not report the exact number of operations evaluated. 10  16.5 10  10  16.5 16.5 GRI 206: Anti- competitive Behavior 2016 206-1 Legal actions for anti- competitive behavior, anti-trust and monopoly practices Sustainability Center 1, 5  16.3 207-1 Approach to tax Sustainability Center GRI 207: Tax 2019 207-2 Tax governance, control and risk management Sustainability Center 207-4 Country-by-country reporting Sustainability Center 1.1, 1.3, 10.4, 17.1, 17.3 1.1, 1.3, 10.4, 17.1, 17.3 1.1, 1.3, 10.4, 17.1, 17.3 162 Suzano’s 2021 Annual Report GRI, SASB, TCFD and WEF Content Index 163 _ SASB INDEX FORESTRY MANAGEMENT Sustainability Disclosure Topics & Accounting Metrics Topic Code Accounting Metric Category PDF page / Link to Sustainability Center / Direct answer Ecosystem Services & Impacts Rights of Indigenous Peoples RR-FM-160a.1 Area of forestland certified to a third- party forest management standard, percentage certified to each standard Quantitative Sustainability Center RR-FM-160a.2 Area of forestland with protected conservation status Quantitative Sustainability Center RR-FM-160a.3 Area of forestland in endangered species habitat Quantitative Sustainability Center RR-FM-160a.4 Description of approach to optimizing opportunities from ecosystem services provided by forestlands Discussion and Analysis Sustainability Center RR-FM-210a.1 Area of forestland in indigenous land Quantitative Sustainability Center RR-FM-210a.2 Description of engagement processes and due diligence practices with respect to human rights, indigenous rights and the local community Discussion and Analysis Sustainability Center Climate Change Adaptation RR-FM-450a.1 Description of strategy to manage opportunities for and risks to forest management and timber production presented by climate change Discussion and Analysis Sustainability Center RR-FM-000.A Area of forestland owned, leased and/or managed by the entity Quantitative Sustainability Center Activity Metrics Aggregate standing timber inventory Quantitative Sustainability Center RR-FM-000.C Timber harvest volume Quantitative Sustainability Center PULP AND PAPER PRODUCTS Sustainability Disclosure Topics & Accounting Metrics Topic Code Accounting Metric Category PDF page / Link to Sustainability Center / Direct answer RR-PP-110a.1 Gross global Scope 1 emissions Quantitative Sustainability 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 Discussion and Analysis Sustainability Center Quantitative Sustainability Center Quantitative Sustainability Center 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 Sustainability Center RR-PP-140a.2 Description of water management risks and discussion of strategies and practices to mitigate those risks Discussion and Analysis Sustainability 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 Sustainability Center RR-PP-430a.2 Amount of recycled and recovered fiber procured Quantitative Sustainability Center Activity Metrics RR-PP-000.A Pulp production RR-PP-000.B Paper production Quantitative The standard is not reported since it is considered strategic for Suzano. Quantitative The standard is not reported since it is considered strategic for Suzano. 164 Suzano’s 2021 Annual Report GRI, SASB, TCFD and WEF Content Index 165 CONTAINERS & PACKAGING Sustainability Disclosure Topics & Accounting Metrics _ TCFD INDEX Topic Code Accounting Metric Category PDF page / Link to Sustainability Center / Direct answer RT-CP-110a.1 Gross global Scope 1 emissions, percentage covered under emissions- limiting regulations Quantitative Sustainability Center Greenhouse Gas Emissions RT-CP-110a.2 Air Quality RT-CP-120a.1 Energy Management RT-CP-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) SOx, (3) volatile organic compounds (VOCs) and (4) particulate matter (PM) (1) Total energy consumed, (2) percentage grid electricity, (3) percentage renewable, (4) total self- generated energy Discussion and Analysis Sustainability Center Quantitative Sustainability Center Quantitative Sustainability Center RT-CP-140a.1 (1) Total water withdrawn, (2) total water consumed, percentage of each in regions with High or Extremely High Baseline Water Stress Quantitative Sustainability Center Water Management RR-CP-140a.2 Description of water management risks and discussion of strategies and practices to mitigate those risks Discussion and Analysis Sustainability Center RT-CP-140a.3 Number of incidents of non-compliance associated with water quality permits, standards and regulations Quantitative The standard was not reported in 2021. Suzano plans to start reporting it in 2022. Waste Management RT-CP-150a.1 Amount of hazardous waste generated, percentage recycled Quantitative Sustainability Center Product Safety RT-CP-250a.1 Number of recalls issued, total units recalled Quantitative The standard was not reported since it is not considered material for Suzano. RT-CP-250a.2 Discussion of process to identify and manage emerging materials and chemicals of concern RT-CP-410a.1 Percentage of raw materials from: (1) recycled content, (2) renewable resources and (3) renewable and recycled content Quantitative The standard was not reported since it is not considered material for Suzano. Quantitative Sustainability Center Product Lifecycle Management RT-CP-410a.2 Revenue from products that are reusable, recyclable and/or compostable Quantitative The standard was not reported in 2021. Suzano plans to start reporting it in 2022. TCFD RECOMMENDATIONS AND SUPPORTING RECOMMENDED DISCLOSURES TCFD Recommendations PDF page / Link to Sustainability Center / Direct answer 1. GOVERNANCE Disclose the organization’s governance around climate- related risks and opportunities a) Describe the board’s oversight of climate-related risks and opportunities Sustainability Center b) Describe the board’s role in assessing and managing climate-related risks and opportunities Sustainability Center 2. STRATEGY Disclose the actual and potential impacts of climate-related risks and opportunities on the organization’s businesses, strategy and financial planning where such information is material a) Describe the climate-related risks and opportunities the organization has identified over the short, medium and long term Sustainability Center b) Describe the impact of climate- related risks and opportunities on the organization’s businesses, strategy and financial planning Sustainability Center c) Describe the resilience of the organization’s strategy, taking into consideration different climate-related scenarios, including a 2°C or lower scenario Sustainability Center 3. RISK MANAGEMENT Disclose how the organization identifies, assesses and manages climate-related risks a) Describe the organization’s processes for identifying and assessing climate-related risks Sustainability Center b) Describe the organization’s processes for managing climate-related risks Sustainability Center c) Describe how processes for identifying, assessing and managing climate-related risks are integrated into the organization’s overall risk management Sustainability Center RT-CP-410a.3 Discussion of strategies to reduce the environmental impact of packaging throughout its lifecycle Discussion and Analysis Sustainability Center RT-CP-430a.1 Total wood fiber procured, percentage from certified sources Quantitative Sustainability Center 4. METRICS AND TARGETS Disclose the metrics and targets used to assess and manage relevant climate-related risks and opportunities where such information is material a) Disclose the metrics used by the organization to assess climate- related risks and opportunities in line with its strategy and risk management process Sustainability Center RT-CP-430a.2 Total aluminum purchased, percentage from certified sources Quantitative The standard does not apply to Suzano. b) Disclose Scope 1, Scope 2 and, if appropriate, Scope 3 greenhouse gas (GHG) emissions, and the related risks Sustainability Center Supply Chain Management RT-CP-000.A Amount of production, by substrate Quantitative Sustainability Center Activity Metrics RT-CP-000.B Percentage (%) by revenue Quantitative The standard was not reported in 2021. Suzano plans to start reporting it in 2022. RT-CP-000.C Number of employees Quantitative Sustainability Center c) Describe the targets used by the organization to manage climate-related risks and opportunities and performance against targets Sustainability Center 166 Suzano’s 2021 Annual Report GRI, SASB, TCFD and WEF Content Index 167 _ SUMMARY OF STAKEHOLDER CAPITALISM METRICS (WEF) Topic Core metric Detail PDF page / Link to Sustainability Center / Direct answer Topic Core metric Detail PDF page / Link to Sustainability Center / Direct answer PEOPLE PRINCIPLES OF GOVERNANCE Governing Purpose Setting purpose Quality of Governing Body Governance body composition The company’s stated purpose, as the expression of the means by which a business proposes solutions to economic, environmental, and social issues. Corporate purpose should create value for all stakeholders, including shareholders. Composition of the highest governance body and its committees by: competencies relating to economic, environmental, and social topics; executive or non-executive; independence; tenure on the governance body; number of each individual's other significant positions and commitments, and the nature of the commitments; gender; membership of under- represented social groups; stakeholder representation. Sustainability Center Sustainability Center Stakeholder Engagement Material issues impacting stakeholders A list of the topics that are material to key stakeholders and the company, how the topics were identified, and how the stakeholders were engaged. Sustainability Center 1. Total percentage of governance body members, employees and business partners who have received training on the organization's anti-corruption policies and procedures, broken down by region. Sustainability Center Anti-corruption the current year but related to previous years. a) Total number and nature of incidents of corruption confirmed during b) Total number and nature of incidents of corruption confirmed during the current year, related to this year. Sustainability Center Ethical Behavior 2) Discussion of initiatives and stakeholder engagement to improve the broader operating environment and culture, in order to combat corruption. Sustainability Center Protected ethics advice and reporting mechanisms A description of internal and external mechanisms for: 1. Seeking advice about ethical and lawful behavior and organizational Sustainability Center integrity. A description of internal and external mechanisms for: 2. Reporting concerns about unethical or lawful behavior and organizational Sustainability Center integrity. Risk and Opportunity Oversight Integrating risk and opportunity into business process Company risk factor and opportunity disclosures that clearly identify the principal material risks and opportunities facing the company specifically (as opposed to generic sector risks), the company appetite in respect of these risks, how these risks and opportunities have moved over time and the response to those changes. These opportunities and risks should integrate material economic, environmental, and social issues, including climate change and data stewardship. Sustainability Center PLANET Climate Change Nature Loss Fresh Water Availability Greenhouse Gas (GHG) emissions For all relevant greenhouse gases (e.g. carbon dioxide, methane, nitrous oxide, F-gases etc.), report in metric tonnes of carbon dioxide equivalent (tCO2e) GHG Protocol Scope 1 and Scope 2 emissions. Estimate and report material upstream and downstream (GHG Protocol Scope 3) emissions where appropriate. Sustainability Center Fully implement the recommendations of the Task Force on Climate-related Financial Disclosures (TCFD). If necessary, disclose a timeline of at most three years for full implementation. Disclose whether you have set, or have committed to set, GHG emissions targets that are in line with the goals of the Paris Agreement – to limit global warming to well-below 2°C above pre-industrial levels and pursue efforts to limit warming to 1.5°C – and to achieve net-zero emissions before 2050. Sustainability Center Report the number and area (in hectares) of sites owned, leased or managed in or adjacent to protected areas and/or key biodiversity areas (KBA). Sustainability Center TCFD implementation Land use and ecological sensitivity Water consumption and withdrawal in water-stressed areas Report for operations where material, mega liters of water withdrawn, mega liters of water consumed and the percentage of each in regions with high or extremely high baseline water stress according to WRI Aqueduct water risk atlas tool. Estimate and report the same information for the full value chain (upstream and downstream) where appropriate. Sustainability Center Diversity and inclusion (%) Percentage of employees per employee category, per age group, gender and other indicators of diversity (e.g. ethnicity). Sustainability Center Pay equality (%) Ratio of the basic salary and remuneration for each employee category by significant locations of operation for priority areas of equality: women to men; minor to major ethnic groups; and other relevant equality areas. Sustainability Center Dignidade e igualdade Wage level (%) 1. Ratios of standard entry-level wage by gender compared to local minimum wage. Sustainability Center 2. Ratio of CEO’s total annual compensation to median total annual compensation of all employees (excluding the CEO). Sustainability Center Risk for incidents of child, forced or compulsory labor An explanation of the operations and suppliers considered to have significant risk for incidents of child labor, forced or compulsory labor. Such risks could emerge in relation to type of operation (such as manufacturing plant) and type of supplier; or countries or geographic areas with operations and suppliers considered at risk. Sustainability Center Health & Wellbeing Health and safety (%) Skills for the Future Training provided (#, $) PROSPERITY The number and rate of fatalities as a result of work-related injury; high-consequence work-related injuries (excluding fatalities); recordable work-related injuries, main types of work-related injury; and the number of hours worked. An explanation of how the organization facilitates workers’ access to non-occupational medical and healthcare services and the scope of access provided for employees and workers. 1. Average hours of training per person that the organization’s employees have undertaken during the reporting period, by gender and employee category (total number of trainings provided to employees divided by the number of employees). Sustainability Center Sustainability Center 2. Average training and development expenditure per full time employee (total cost of trainings provided to employees divided by the number of employees). Sustainability Center Absolute number and rate of employment 1. Total number and rate of new employee hires during the reporting period, by age group, gender, other indicators of diversity and region. Sustainability Center 2. Total number and rate of employee turnover during the reporting period, by age group, gender, other indicators of diversity and region. Sustainability Center Employment and Wealth Generation Economic Contribution Financial investment contribution Innovation in Better Products and Services Total R&D expenses ($) 1.Direct economic value generated and distributed (EVG&D), on an accrual basis, covering the basic components for the organization’s global operations, ideally split out by: – Revenue – Operating costs – Employee wages and benefits – Payments to providers of capital – Payments to government – Community investment. Sustainability Center 2. Financial assistance received from the government: total monetary value of financial assistance received by the organization from any government during the reporting period. The standard was not reported in 2021. Suzano plans to start reporting it in 2022. 1. Total capital expenditures (CapEx) minus depreciation, supported by narrative to describe the company’s investment strategy. Standard not reported by Suzano. Total R&D expenses ($) Standard not reported by Suzano. Total costs related to research and development. Sustainability Center Community and Social Vitality Total tax paid The total global tax borne by the company, including corporate income taxes, property taxes, non-creditable VAT and other sales taxes, employer- paid payroll taxes and other taxes that constitute costs to the company, by category of taxes. Sustainability Center 168 Suzano’s 2021 Annual Report GRI, SASB, TCFD and WEF Content Index 169 S T I D E R C GRAPHIC DESIGN AND LAYOUT Adesign PHOTOGRAPHY Adventure Camp Albani Ramos Araquém Alcântara Banco de imagens Suzano Eliza Carneiro Fernando Cavalcanti Juarez Godoy Márcio Schimming Ricardo Teles Sérgio Zacchi ENGLISH VERSION Claudia Gustavsen EDITING Bruna Ribeiro Cristiano Oliveira Daniele Coutinho Hostins Gabriel Hotta Isabel Masagão Julia Spinassé Juliene Mesquita Marcela Porto Paula Dourado Raquel Botinha COORDINATION, TEXTS AND EDITORIAL DESIGN Quintal 22 INDICATORS CONSULTING Avesso Sustentabilidade MANAGEMENT Botinha Comunicação COVER PHOTO: Children handling a paper box. Photo: Suzano's image bank. CONTACT For questions and suggestions, contact us by email relatoriosuzano@suzano.com.br. Native forest and eucalyptus plantation, Imperatriz (state of Maranhão). Photo: Ricardo Teles. suzano.com.br report: suzano.com.br/en/r2021 investor relations: ir.suzano.com.br Sustainability Center: centraldesustentabilidade.suzano.com.br/en linkedin: linkedin.com/company/suzano instagram: instagram.com/suzano_oficial youtube: youtube.com/Suzanovideos facebook: fb.com/suzanoempresa 

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