102-46 (GRI )

  • Defining report content and topic Boundaries

    Related Material Themes:

    Context:

    Suzano’s 2019 Report presents the achievements, lessons learned and challenges experienced by the company in its first year of creation. This edition provides an insight into the company’s economic, environmental and social practices and presents its corporate and sustainability strategy.

    This report was prepared in accordance with GRI standards: Core option, and we were also inspired by the Integrated Reporting (IR) guideline, in terms of focus, balance and conciseness. The GRI disclosures collected relate to the corresponding contents throughout the sections of the Report and are compiled in this Indicators Center, a digital section especially dedicated to the dynamic and detailed reading of data and information. The company also reports in line with the Sustainable Development Goals (SDGs)—17 global goals established by the United Nations (UN) in 2015.

    After the merger, in early 2019, we carried out a study to align the material topics for Fibria and Suzano Papel e Celulose, consolidating a new and unique list of relevant topics. We are at this point looking at some sector documents that address critical issues for the sector, in addition to a first analysis of the priority market demands for the two former companies. This study was the basis for the 2018 Report.

    Today, Suzano’s materiality is the result of cross-referencing relevant topics for the business, from the standpoint of our various stakeholders – captured through a significant consultation process to build our strategy, with critical topics to the forestry sector and the production sectors as a whole, identified by large associations of companies that work toward sustainable development.

    At the end of 2019, we also cross-referenced the output from this rich consultation process with a thorough analysis of Suzano’s priority market demands (such as assessments by ratings agencies and sustainability indices) and, at the end, we arrived at the ten material topics that support the development of our 2019 report.

    In addition, in the second half of 2019, we implemented a work front to prioritize and harmonize corporate indicators in order to consolidate a satisfactory volume of reporting-quality priority information—something difficult to achieve during a year of integration, when we started from distinct management bases. This process involved the analysis, prioritization and alignment of the capacity to harmonize the indicators collected by the various areas that provide corporate information in their main external questionnaires and periodic reports (such as public reports, indices, investor demands). The main purpose of this effort was to prepare the areas to meet demands already mapped as priorities, with continuity in the medium and long terms.

    Therefore, based on this intense work, this report contains the consolidated information regarding Suzano SA (based on the year 2019), differently from what was done in the previous report, in which the information presented was segregated between the former Fibria and Suzano Papel e Celulose (based on 2018, when both companies were still operating separately).

    The definitions of the ten material topics for our business and of the internal and external boundaries of their impacts are detailed below:

     

    1. Value Chain

    Explanation of the materiality of the topic

    • Understanding the needs potentialities of our customers, with the purpose of offering sustainable and products and solutions, through a relationship that favors long-term connections.
    • Supplier management in accordance with the company’s social and environmental criteria, aiming at the development of local suppliers and the reduction of adverse impacts throughout the value chain.

    Associated macro-topics

    • Development of the local supply chain
    • Traceability of materials and inputs
    • Management of social and environmental practices and impacts on the chain
    • Chain of Custody
    • Supply and approval criteria
    • Product liability
    • Customer focus

    Internal topic boundaries

    • Directly impacts our operations

    External boundaries

    • Impacts our suppliers, customers and the environment in which we live

     

    2. Social Development

    Explanation of the materiality of the topic

    • Ensure local and territorial development in a joint and participatory manner, in partnership with communities, support institutions and social movements, based on education, income generation and cultural appreciation projects; the strengthening of the relationship with local and traditional communities; and the integration of the interests of these different links in running and managing the company.

    Associated macro-topics

    • Income generation
    • Access to education
    • Right to land
    • Structuring of the community (e.g. cooperatives, associations)1
    • Social Investment
    • Training and hiring local labor
    • Human rights – development of local infrastructure
    • Grievance mechanisms related to social and environmental impacts
    • Relationship and engagement with communities (social movements, traditional communities, quilombolas, etc.)
    • Mechanisms for continuous dialogue

    Internal topic boundaries

    • Impacts, directly or indirectly, all company operations

    External boundaries

    • Impacts communities around our operations

     

    3. Ethics, Governance and Transparency

    Explanation of the materiality of the topic

    • Dialogue, transparency and active player in the participation and conduction of sector topics and topics of global interest that encourage commitments and cooperation agreements for sustainable development.
    • Ensure the highest standards of corporate governance, aiming at full integrity and robustness of the company’s internal controls and processes and the ethical, integral and transparent conduct of all our stakeholders.

    Associated macro-topics

    • Rendering of accounts
    • Accountability
    • Dialogue
    • Accessibility of information, Public goals and commitments
    • Governance and conduct (compliance)
    • Advocacy and government relations
    • Corruption
    • Ethics
    • Overall and legal compliance
    • Unfair competition
    • Anti-competitive practices
    • Corporate risk and impact management

    Internal topic boundaries

    • Impacts all company employees and operations

    External boundaries

    • Directly affects all audiences with which we interact

     

    4. Climate Change

    Explanation of the materiality of the topic

    • Search alternatives to increase carbon sequestration, reduce greenhouse gas emissions and contribute to the solution for the climate crisis, in addition to reducing and mitigating risks of this nature.

    Associated macro-topics

    • Adaptation and mitigation in the face of climate change¹
    • Balance of emissions¹
    • Low-carbon economy¹
    • Industrial and logistics emissions¹
    • Risk in wood supply¹
    • Carbon pricing¹
    • Collaborative partnerships to fight the climate crisis¹

    Internal topic boundaries

    • Impacts our forestry, industrial and logistics operations

    External boundaries

    • Impacts the whole society

     

    5. Water

    Explanation of the materiality of the topic

    • Ensure water availability and access to quality water for the various users of the river basins where we operate, based on environmental education, protection of springs, water monitoring, reduction in abstraction, risk analysis and mitigation of impacts from our operations on this resource.

    Associated macro-topics

    • Availability and access to water¹
    • Effluents
    • Water risk analysis¹
    • Use, demand and dependence on water resources¹
    • Water stress¹
    • Protection of springs¹
    • Dialogue (communication and awareness) on water¹
    • Monitoring of qualitative and quantitative parameters¹
    • Consumption and reuse¹

    Internal topic boundaries

    • Applies to all our forestry and industrial operations

    External boundaries

    • Directly impacts neighbors and local communities around our operations and the environment in which we live

     

    6. Innovation and Technology

    Explanation of the materiality of the topic

    Continuous investment in technology and culture of innovation that drives the development of solutions to the major challenges facing society (enabling the transition to the bioeconomy), in addition to providing greater competitive advantage to the business.

    Associated macro-topics

    • Innovability
    • GMO
    • Productivity
    • Business diversification and new products
    • Bioeconomy
    • Circular economy: single use products, end-of-pipe solutions
    • Culture of innovation

    Internal topic boundaries

    • Applies to all of our production units and operations

    External boundaries

    • Impacts, directly or indirectly, the entire society

     

    7. Operational Excellence and Eco-efficiency

    Explanation of the materiality of the topic

    • Increase our productivity and ensure excellent levels of efficiency in our operations, with continuous reuse of resources and waste and increased generation and export of energy from renewable sources, in addition to the quality of our processes.

    Associated macro-topics

    • Energy: energy mix, energy recovery, and generation and trading¹
    • Waste: generation, destination, transformation and disposal¹
    • Logistics
    • Health and safety

    Internal topic boundaries

    • Impacts our forestry, industrial and logistics operations

    External boundaries

    • Indirectly impacts the entire society

     

    8. Forest Management

    Explanation of the materiality of the topic

    Sustainable forest planning and management that support forest productivity, disease and pest control, maintenance of biodiversity, environmental preservation, and the provision of ecosystem services – creating a virtuous cycle.

    Associated macro-topics

    • Fight against deforestation
    • Biodiversity¹
    • Preservation, conservation and restoration¹
    • Land use, occupation and quality
    • Landscape management
    • Pest and disease control
    • Application of agrochemicals
    • Fires
    • Ecosystem services
    • Forest certification

    Internal topic boundaries

    • Applies to all of the company’s forestry units, directly impacting our operations

    External boundaries

    • Directly impacts the communities around our operations and the environment in which we live

     

    9. Financial Management

    Explanation of the materiality of the topic

    Search for solid financial performance through constant risk analysis, responsible social and environmental vision and balance between costs, expenses and investments, in order to share value with shareholders, investors and other strategic audiences.
    Organic growth through a consolidated forest base prepared for increased productivity, with diversification of products and businesses.

    Associated macro-topics

    • Financial performance
    • Business expansion
    • Engagement with shareholders and investors
    • Responsible investment
    • Sustainable finance
    • Sustainability indices

    Internal topic boundaries

    • Directly impacts our operations

    External boundaries

    • Impacts, directly or indirectly, all our stakeholders (mainly shareholders and investors)

     

    10. Human Capital

    Explanation of the materiality of the topic

    • Strengthening of a high-performance culture based on integrated and dynamic people management processes that take into account aspects such as meritocracy, career development, knowledge management, diversity, inclusion, well-being, quality of life and human rights, among other factors.

    Associated macro-topics

    • Human rights
    • Employee appreciation
    • Decent conditions
    • Health and safety
    • Diversity and inclusion¹
    • Training
    • Education
    • Quality of life
    • Eradication of child and slave labor

    Internal topic boundaries

    • Directly involves all our employees

    External boundaries

    • Directly impacts our suppliers and service providers

     

    1. Topics that include public commitments/long-term goals of the company