Ethics, Governance and Transparency

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.

  • Anti-corruption management

    Context:

    Suzano’s work in relation to the fight against corruption is mainly based on what is set out in our Code of Conduct and in our Anti-Corruption Policy in relation to this matter. Therefore, as a starting point, we map potential risks related to corruption in four different categories – Financial, Compliance, Operational and Strategic -, both in our operations and at corporate level, in order to mitigate potential misconduct in the company as a whole. Thus, we assess and prioritize risks according to their probability of occurrence (remote, possible, likely and very likely) and impact (minor, moderate, major and extreme). For risks defined as priorities, at least one action plan must be established. In 2019, the main risks mapped were: failure to disseminate (communication and training) the Code of Conduct and Corporate Policies to internal and external stakeholders; non-application of forms (Compliance and Conflict of Interest); failure to adapt international offices to company guidelines and/or local regulations; and making donations and sponsorships in disagreement with the company’s strategy.

    In addition, in order to keep all employees updated and committed to the guidelines and expected behaviors in relation to the topic, the Compliance and Ombudsman teams provide, through the UniverSuzano platform, mandatory training related to fighting corruption. For employees without access to UniverSuzano, in partnership with the People and Management area, training is conducted in person. In this sense, in 2019, to encourage our employees to take part in training in this topic, incentive notices were also launched on “Bom dia, Suzano” (Good morning Suzano), the company’s internal communication channel, in addition to direct messages to managers to encourage their teams to receive training, among several other means of communication. Our goal is for 100% of our employees to take the mandatory training by December 13, 2021, two years after it became available (considering that training is refreshed biannually, as well as training in the Code of Conduct).

  • Composition of the highest governance body and its committees

    Context:

    Suzano’s governance structure is composed of the following bodies and committees:

    Board of Directors

    Suzano’s Board of Directors has an executive function, as a one-tier body consisting of five to ten members, elected by the Annual General Meeting, which, among its members, designates the Chairman and up to two Deputy Chairmen. The term of office of the Board of Directors is unified, with duration of two years, with reelection permitted.

    Of the Members of the Board of Directors, at least 20% must be Independent Board Members, as defined in the Novo Mercado Regulation, and expressly declared as such in the minutes of the Annual General Meeting that elects them, and also considered as independent the Board Member(s) elected via the option provided for in paragraphs 4th and 5th of article 141 of Law No. 6,404/76 (Brazilian Corporate Law).

    In 2019, the Board of Directors was composed as follows:

    • Ana Paula Pessoa (Board Member);
    • Antonio de Souza Corrêa Meyer (Board Member);
    • Claudio Thomaz Lobo Sonder (Deputy Chairman);
    • Daniel Feffer (Deputy Chairman);
    • David Feffer (Chairman);
    • Jorge Feffer (Board Member);
    • Maria Priscila Rodini Vansetti Machado (Board Member);
    • Nildemar Secches (Board Member);
    • Rodrigo Kede de Freitas Lima (Board Member);

     

    In addition to their duties as members of the Board of Directors of Suzano S.A., the Board of Directors mentioned above perform the following additional commitments/roles (in or outside the company):

    • Ana Paula Pessoa: partner, investor and Chairman of the Board of Directors of Kunumi AI, a 100% Brazilian artificial intelligence company, with values and objectives that guide investment choices. She is a member of the global board of Credit Suisse in Zurich, News Corporation in New York and Vinci Group in Paris. She is passionate about improving diversity in companies and understanding how technology and social changes impact corporate cultures. Her volunteering activities focus on education initiatives and environmental concerns to ensure sustainable growth. She is also a member of the Global Council (GAC) of Stanford University, in California, of the Advisory Council of The Nature Conservancy Brazil, of the Audit Committee of Fundação Roberto Marinho and of the Instituto Atlantico de Gobierno, in Madrid. At Suzano, Ana Paula Pessoa also performs as Coordinator of the Statutory Audit Committee (CAE).
    • Antonio de Souza Corrêa Meyer: founding partner of Machado, Meyer, Sendacz and Opice Advogados, where he works to date. He is also a member of the Advisory Council and the Board of Trustees of Fundação Faculdade de Medicina de São Paulo, the Superior Council for Legal and Legislative Affairs (CONJUR) of Fiesp and the Chamber of Mediation and Arbitration of Ciesp-Fiesp, Board Member of Instituto de Oncologia de São Paulo, Hospital Otavio Frias de Oliveira, and member of the Mergers & Acquisitions Committee (CAF) of B3. At Suzano, Antônio Meyer also performs as a member of the Remuneration Committee.
    • Claudio Thomaz Lobo Sonder: (i) since 2010, he has been Executive Vice President and, since 2018, he has been Chairman of the Board of Directors of Suzano Holding S.A., the company’s parent company; (ii) since 2002, he has been a member of the company’s Board of Directors (as Deputy Chairman since 2013); he is a member of the of the company’s Management and Finance Committee, People Committee and Remuneration Committee; (iii) since 2018, he has been Chairman of the Board of Directors; since 2010, he has been Executive Vice President of IPLF Holding S.A., a company controlled by the controlling shareholders of Suzano Holding and whose main activity is its stake in other companies; (iv) since 2010, he has been a member of the Board of Directors and the Superior Council of Instituto Ecofuturo – Futuro para o Desenvolvimento Sustentável; (v) since 2010, he has been a member of the Board of Directors of MDS, SGPS, SA (as of March 2018, Chairman of the Board of Directors), a company incorporated in accordance with the laws of Portugal and whose main activity is its stake in other companies; (vi) since April 2015, he has been a Director of Premesa S.A., a subsidiary of the Company whose main activity is the development of real estate projects, being responsible for the company’s management and strategic planning; (vii) since 2011, he has been a member of the Board of Trustees; since 2013, and member of the Executive Board; (viii) since 2018, he has been Chairman of the Board of Fundação Arymax, an association whose main activity is the promotion, support and development of activities related to social interests.
    • Daniel Feffer: (i) President of ICC Brasil; (ii) Deputy Chairman of the Board of Directors and member of the company’s Sustainability Committee; (iii) President of the Board of Trustees of Fundação Arymax, whose main activity is the defense of social rights; (iv) Chairman of the Steering Committee and Vice President of the Superior Council of Instituto Ecofuturo – Futuro para o Desenvolvimento Sustentável, whose main activity is the defense of social rights; (v) Chairman of the Board of Indústria Brasileira de Árvores (IBÁ); (vi) board member of Instituto Econômico para Desenvolvimento Industrial (IEDI); (vii) founding member of Conselho do Compromisso Todos pela Educação; (viii) member of Fiesp’s Strategic Council; (ix) member of the Brazilian Competitive Movement Council (MBC); (x) executive board member of ICC Global; (xi) President of the Intelligent Tech & Trade Initiative (ITTI).
    • David Feffer: (i) at Suzano, he is the Chairman of the Board of Directors, Coordinator of the Sustainability Committee and of the Management and Finance Committee, member of the Strategy and Innovation Committee and the People Committee; (ii) CEO of Suzano Holding S.A., a publicly-held company whose main activity is its stake in other companies; (iii) member of the Board of Directors and CEO of Polpar S.A., a publicly-held company whose main activity is its stake in other companies; (iv) CEO of IPLF Holding S.A., a privately-held company whose main activity is its stake in other companies; (v) CEO of Premesa S.A., a subsidiary of Suzano Holding S.A. whose main activity is the development of real estate projects. He is also a member of several social and cultural institutions, including: Chairman of the Board of Directors of the Alef-Peretz School; member of the Advisory Board of the Associação Beneficente Israelita Brasileira Hospital Albert Einstein; Vice President of the Steering Committee and President of the Superior Council of Instituto Ecofuturo – Futuro para o Desenvolvimento Sustentável; and Coordinator of the Nominating Committee of the Executive Board for Fundação Arymax.
    • Jorge Feffer: (i) Vice President of the Steering Committee and member of the Superior Council of Instituto Ecofuturo – Futuro para o Desenvolvimento Sustentável; (ii) member of the Board of Directors of Instituto Jatobás; and (iii) member of the Curator Council of Fundação Filantrópica Arymax. In 2015, he was the creator and sponsor of the Biblioteca Crítica Social, in partnership with Realizações Editora Espaço Cultural.
    • Maria Priscila Rodini Vansetti Machado: (i) member of the company’s Board of Directors, Strategy and Innovation Committee and Sustainability Committee; (ii) member of the Boards of Executive Directors of The International Center in Indianapolis, Indiana (The International Center), and of the Boards of Executive Directors of the Inter-American Dialogue, in Washington, D.C.
    • Nildemar Secches: (i) member of the company’s Board of Directors, Strategy and Innovation Committee, Management and Finance Committee, Eligibility Committee and Coordinator of the  People Committee; (ii) Deputy Chairman of the Board of Directors of WEG S/A, a publicly-held company whose main activity consists of the industrialization, production and marketing of industrial systems, machinery and equipment; (iii) Deputy Chairman of the Board of Directors of Iochpe-Maxion S.A., a publicly-held company whose main activity consists in the manufacture and distribution of engines, agricultural machinery, and equipment and components for the metallurgical, railway and automobile industries; and (iv) member of the Board of Directors of Ultrapar Participações S.A., a publicly-held company whose main activity consists of investing equity capital in commerce, industry, agriculture and services.
    • Rodrigo Kede de Freitas Lima: (i) member of the Board of Directors, Statutory Audit Committee (CAE) and Coordinator of the company’s Strategy and Innovation Committee; (ii) President of IBM’s Services Division in New York; (iii) member of the Advisory Council of Fundação Dom Cabral (FDC). Until 2017, he was Chairman of the Board of Directors of the Brazilian Institute of Finance Executives (IBEF) and the American Chamber of Commerce (AmCham).

     

    Among the responsibilities of the Board of Directors related to economic, environmental and social impacts, we have:

    • to establish the overall guidance on social businesses, always respecting the ethical values adopted by the community where it operates and, in particular, respect for human rights and the environment;
    • to approve the long-term global strategy to be observed by the company and its controlled companies, as well as the proposed strategy for the affiliates;
    • to deliberate on the establishment of an advisory council to advise the members of the Board of Directors, establishing the positions, remuneration and rules for the operation of that body.

    Strategy and Innovation Committee

    It has several external members, including executives from other industries, who contribute to the company’s reflection on its long-term vision and actions that promote innovation within the company.

    In 2019, the Strategy and Innovation Committee was composed as follows: Rodrigo Kede de Freitas Lima (Coordinator), Artur Noemio Grynbaum, Juliana Rozenbaum Munemori, Nildemar Secches, David Feffer, Maria Priscila Rodini Vansetti Machado and Marcelo Strufaldi Castelli.

    The Strategy and Innovation Committee is responsible for:

    • advising the company’s Board of Directors in the analysis of initiatives related to research and technological innovation in the forestry, industrial and management areas, in relation to new products and processes;
    • advising the Board of Directors in the fulfillment of its responsibilities related to the long-term strategy and planning;
    • make recommendations to the Board of Directors and monitor the implementation of policies, strategies and actions related to research and innovation within the company;
    • evaluating the company’s investment proposals from the perspective of innovation and making possible recommendations to the Board of Directors.

    Sustainability Committee

    Advises Suzano to think strategically in the future, including discussions on global and latent topics, and to what extent we can contribute to the transformation of specific scenarios, such as climate change.

    In 2019, the Sustainability Committee was composed as follows: David Feffer (Coordinator), Daniel Feffer, Clarissa de Araújo Lins, Philippe Marie Joseph Joubert, Fabio Colletti Barbosa, Haakon Lorentzen, Ronaldo Iabrudi dos Santos Pereira and Maria Priscila Rodini Vansetti Machado.

    The Sustainability Committee is responsible for:

    • advising the Board of Directors through analysis and recommendation on the inclusion of the dimension of sustainability in the company’s strategic positioning, as well as on the risks, opportunities and measures associated with social and environmental issues that may have a material impact on the business in the short, medium, and long terms;
    • advising the Board of Directors in the dissemination of the strategic concept of sustainability, aiming at achieving globally-accepted standards as a reference of excellence;
    • analyzing and making recommendations on long-term sustainability objectives, annually assessing their respective performances.
    • regularly analyzing the strategies, actions and projects associated with the company’s sustainability, assessing its effectiveness in relation to company positioning and objectives;
    • regularly assessing the actions and the quality of the relationship with stakeholders, as well as the evolution of its image and reputation, making recommendations in this regard.

    Management and Finance Committee

    Its purpose is to provide technical advice to the Board of Directors for best performance of its activities.

    In 2019, the Management and Finance Committee had the following composition: David Feffer (Coordinator), Murilo Cesar Lemos dos Santos Passos, Nildemar Secches, Claudio Thomaz Lobo Sonder, Walter Schalka and Marcelo Strufaldi Castelli.

    Among the roles of the Management and Finance Committee, we can highlight the following:

    • advise the Board of Directors in fulfilling its responsibilities in the areas of finance, budget and control, legal matters, new business, investments and formulation of corporate policies, when necessary;
    • monitor the results of the company, seeking to ensure adherence to the goals established in the Strategic Planning, Business Plan and Budget;
    • ensure preparation and formulation of specific corporate policies for the financial area.

    People Committee

    When assessing the organizational structure and the models for development, remuneration, succession and career practices, the People Committee looks to connect the profile of employees to the company’s long-term strategies and goals.

    In 2019, the People Committee was composed as follows: Nildermar Secches (Coordinator), Rodrigo Galindo, Fabio Coelho, Walter Schalka, David Feffer, Claudio Thomaz Lobo Sonder and Marcelo Strufaldi Castelli.

    The People Committee is responsible for:

    • analyzing human resources policies, structures and practices proposed by the Executive Board, based on best practices adopted by national and international companies, as well as the strategies and the context of opportunities and risks to which the company is exposed;
    • discussing the remuneration strategy, including salary and benefits policy, regular and extraordinary short and long term remuneration for the Company’s Directors and Board Members;
    • analyzing and issuing opinion on proposed salary adjustments and on variable pay goals of the Directors;
    • analyzing and issuing opinion, for the Board’s decision, on special conditions for hiring and terminating Executive Directors;
    • analyzing and permanently contributing to the evaluation and professional improvement processes of the Company’s Directors and Board Members;
    • monitoring and continuously contributing to the retention and succession plans of the Company’s Directors;
    • recommending actions that drive the desired organizational culture of performance, aligned with the company’s mission, vision and values, and focused on building sustainable results;
    • advising the Board of Directors for the identification, selection, monitoring, performance evaluation, and succession of the company’s CEO.

     

    The company’s Board of Directors is a one tier body.

  • Confirmed cases of corruption and actions taken

    Change view:

    • wdt_ID Cases of corruption 2019
      1 Total number of confirmed cases of corruption 21
      2 Total number of confirmed cases in which employees were dismissed or received disciplinary action for corruption 18
      3 Total number of confirmed cases in which contracts with business partners were terminated or not renewed due to corruption-related violations 1

    Additional information:

    Suzano did not register any cases of public corruption in 2019, and the 21 complaints reported deal with private corruption, involving the following topics: misappropriation, conflict of interest, receipt of undue rewards, bribery and inappropriate conduct. We also inform that none of the cases deemed well-founded had any material impact on the company’s financial statements or information.

  • Defining report content and topic Boundaries

    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

  • Employee communication about anti-corruption policies and procedures, by employment category

    Change view:

    • wdt_ID Employee communication about anti-corruption policies and procedures, by employment category - 2019¹ Total number Percentage
      1 Administrative 2,724 100%
      2 Board Members 18 100%
      3 Consultants 551 100%
      4 Coordinators 360 100%
      5 Directors 19 100%
      6 Managing Directors 12 100%
      7 Specialists 916 100%
      8 Executive Managers 93 100%
      9 Functional Managers 289 100%
      10 Operational 8,461 100%

    1. The numbers do not include employees on leave or apprentices during the reporting period.

    Additional information:

    With regard to the communication on anti-corruption policies and procedures for Board Members, the body responsible for approving the anti-corruption guidelines is the Board of Directors itself. In this regard, our Board Members approved the Company’s Anti-Corruption Policy unanimously and without reservations, demonstrating their involvement and knowledge and highlighting their review of the Policy terms.

    In addition, the means of communication available and used to disseminate the Anti-Corruption Policy guidelines were:

     

    • Notices: within the company, the Internal Communication area centralizes the sending of information considered relevant to the company and makes it available via its own email layouts;
    • TV: our administrative units have some TV sets that are left on during working hours. They disclose topics of relevance to the company, such as the anti-corruption guidelines and the launch of new training related to this topic;
    • Videos: exclusively regarding the Code of Conduct and Anti-Corruption Law, we make available videos prepared by the same agency that developed our training courses. These materials are also available in our internal communication channel;
    • Rádio Florestal (Forestry Radio): In order to reach our forestry audience that does not use a computer as a working material, we started recording our main content and some excerpts from our mandatory training on our Forestry Radio, in order to also disseminate this topic at the front of our operations;
    • Bulletin board: in lounge/relaxation areas, we usually leave a bulletin board with printed notices. The People and Management and Communication teams update it weekly with the main news released that week, including our internal anti-corruption measures;
    • Advanced onboarding: all new employees, on their first day at the Company, go through an “advanced onboarding” process, in which they participate in lectures and attend some presentations on various topics of importance to the company, including our training in the Code of Conduct and Anti-Corruption Law;
    • Advanced onboarding for interns: all of our interns, during their internship period, receive corporate training on the main topics of interest to the company. One such training is Compliance, which addresses the principles of our Code of Conduct and guidelines on the Anti-Corruption Law (both nationally and internationally);
    • Refund: for each request for refund in the tool we use for this purpose, employees must state that they are familiar and agree with the ethical principles in our Code of Conduct and with the guidelines in our Anti-Corruption Law.

     

  • Employee communication and training about anti-corruption policies and procedures

    Change view:

    • wdt_ID Employee communication and training about anti-corruption policies and procedures - 2019¹ Total number Percentage
      1 Communications 13,742 100
      2 Training 11,380 83

    1. The numbers do not include employees on leave or apprentices during the reporting period.

    Additional information:

    Anti-corruption training, as well as the Code of Conduct, is refreshed every two years and made available to the company in a mandatory format. The goal is to keep all employees updated and committed to the guidelines and expected behaviors in relation to this topic. Thus, on September 13, 2019, a new version of the referred training was made available.

    Approximately six months after the course restarted, we have already registered 83% completion, i.e., only 17% remains for full completion, with a period of more than one year for the end of the cycle. It is worth mentioning that, in the last training cycle, until it was restarted, we had registered 90% completion.

    The following are the means of communication available and used to disseminate the Anti-Corruption Policy guidelines:

     

    • Notices: within the company, the Internal Communication area centralizes the sending of information considered relevant to the company and makes it available via its own email layouts;
    • TV: our administrative units have TV sets that are left on during employees’ working hours. They disclose topics of relevance to the company, such as the anti-corruption guidelines and the launch of new training related to this topic;
    • Videos: exclusively regarding the Code of Conduct and Anti-Corruption Law, we make available videos prepared by the same agency that developed our training courses. These materials are also available in our internal communication channel;
    • Rádio Florestal (Forestry Radio): In order to reach our forestry audience that does not use a computer as a working material, we started recording our main content and some excerpts from our mandatory training on our Forestry Radio, in order to also disseminate this topic at the front of our operations;
    • Bulletin board: in lounge/relaxation areas, we usually leave a bulletin board with printed notices. The People and Management and Communication teams update it weekly with the main news released that week, including our internal anti-corruption measures;
    • Advanced onboarding: all new employees, on their first day with the company, go through an “advanced onboarding” process, in which they participate in lectures and attend presentations on various topics of importance to the company, including our training in Code of Conduct and Anti-Corruption Law ;
    • Advanced onboarding for interns: all of our interns, during their internship period, receive corporate training on the main topics of interest to the company. One such training is Compliance, which addresses the principles of our Code of Conduct and guidelines on the Anti-Corruption Law (both nationally and internationally);
    • Refund: for each request for refund in the tool we use for this purpose, employees must state that they are familiar and agree with the ethical principles in our Code of Conduct and with the guidelines in our Anti-Corruption Law.

     

    Also, with regard to third-party communication and training on anti-corruption policies and procedures, the company uses three different means to reach its suppliers, namely:

     

    • Reading and acceptance of the company’s principles at the beginning of the hiring/registration process;
    • Acceptance of the Anti-Corruption Policy through a formal legal contract and/or via purchase orders for products or services;
    • Finally, as a third measure, in 2019, we sent the company’s Code of Conduct to all of our active suppliers.
  • Employee communication and training about anti-corruption policies and procedures, by region

    Change view:

    • wdt_ID Employee communication and training about anti-corruption policies and procedures, by region - 2019¹ Total number Percentage
      1 North 936 100%
      2 Northeast 4,149 100%
      3 Midwest 1,757 100%
      4 Southeast 6,537 100%
      5 South 82 100%
      6 Abroad 281 100%
      7 Total 13,742 100%

    1. The numbers do not include employees on leave or apprentices during the reporting period.

    Additional information:

    The means of communication available and used to disseminate the Anti-Corruption Policy guidelines were:

     

    • Notices: within the company, the Internal Communication area centralizes the sending of information considered relevant to the company and makes it available via its own email layouts;
    • TV: our administrative units have some TV sets that are left on during working hours. They disclose topics of relevance to the company, such as the anti-corruption guidelines and the launch of new training related to this topic;
    • Videos: exclusively regarding the Code of Conduct and Anti-Corruption Law, we make available videos prepared by the same agency that developed our training courses. These materials are also available in our internal communication channel;
    • Rádio Florestal (Forestry Radio): In order to reach our forestry audience that does not use a computer as a working material, we started recording our main content and some excerpts from our mandatory training on our Forestry Radio, in order to also disseminate this topic at the front of our operations;
    • Bulletin board: in lounge/relaxation areas, we usually leave a bulletin board with printed notices. The People and Management and Communication teams update it weekly with the main news released that week, including our internal anti-corruption measures;
    • Advanced onboarding: all new employees, on their first day at the Company, go through an “advanced onboarding” process, in which they participate in lectures and attend presentations on various topics of importance to the company, including our training in the Code of Conduct and Anti-Corruption Law ;
    • Advanced onboarding for interns: all of our interns, during their internship period, receive corporate training on the main topics of interest to the company. One such training is Compliance, which addresses the principles of our Code of Conduct and guidelines on the Anti-Corruption Law (both nationally and internationally);
    • Refund: for each request for refund in the tool we use for this purpose, employees must state that they are familiar and agree with the ethical principles in our Code of Conduct and with the guidelines in our Anti-Corruption Law.

     

  • Employee training about anti-corruption policies and procedures, by region

    Change view:

    • wdt_ID Employee training about anti-corruption policies and procedures, by region - 2019¹ Total number Percentage
      1 North 791 85%
      2 Northeast 3,164 76%
      3 Midwest 1,213 69%
      4 Southeast 5,955 91%
      5 South 74 90%
      6 Abroad 183 65%
      7 Total 11,380 83%

    1. The numbers do not include employees on leave or apprentices during the reporting period.

  • Grievances/demands received and addressed by the Ombudsman Channel

    Change view:

    • wdt_ID Grievances/demands received and addressed by the Ombudsman Channel 2019
      1 Total number of grievances/demands identified 669
      2 Number of grievances/demands addressed 669
      3 Number of grievances/demands resolved 629
      4 Number of grievances/demands pending 40
      5 Number of grievances/demands filed prior to the reporting period that were resolved during the reporting period 63

    Additional information:

    The main complaints refer to the inappropriate behavior of managers, fraud, inappropriate behavior of coworkers, physical conditions of the workplace, remuneration, working hours, benefits, labor issues, changes to job description, selection/hiring/termination process, inappropriate treatment of service providers, non-payment, career/promotion, health and safety, and information security.

    Of the 669 complaints received by the Ombudsman Channel, after due analysis and investigation by the eligible professionals, 211 disciplinary measures were applied, namely: improvement of the process/creation of control, feedback, guidance and monitoring, termination for cause, termination without cause, written and oral warning, replacement of contractor and termination of services contract. All complaints are answered through the external ombudsman channel, and whistleblowers receive their answers through their tracking number issued when the complaint is registered.

  • Grievances/demands received and addressed by the Ombudsman Channel, by type

    Change view:

    • wdt_ID Grievances/demands received and addressed by the Ombudsman Channel, by type 2019
      1 Inappropriate manager behavior 176
      2 Fraud 95
      3 Inappropriate coworker behavior 70
      4 Labor issues 66
      5 Non-payment 55
      6 Inappropriate treatment of and service to the service provider 54
      7 Physical conditions of the workplace 25
      8 Remuneration 25
      9 selection/hiring/termination process 23
      10 Other 21
  • Key impacts, risks, and opportunities

    Context:

    Suzano has in place an Integrated Risk Management Policy, published on the Investor Relations website. The company’s Integrated Risk Management is carried out by the Risk Management area in conjunction with the other business areas and aims to identify, evaluate, prioritize, treat, monitor and report the main risks associated with the company’s business in line with the corporate strategy, enabling the perpetuity and continuity of our operations.

    The Risk Management area conducts workshops and interviews with the main executives of the company in order to identify the main risks. Subsequently, the risks are consolidated into a matrix and presented to all Directors, CEO and Board of Directors to define the priority risks, for which at least one action plan must be prepared. Action plans for priority risks are monitored and measured through a critical analysis. The status of the action plans is reported to the Executive Board, to the Statutory Audit Committee, and to the Board of Directors.

    The Integrated Risk Management process undergoes certification and customer audits, considering the results obtained for the bonuses of the employees involved.

    Throughout 2019, the Risk Management area consolidated Fibria’s and Suzano’s risk matrices and redefined the priority risks together with the Executive Board, the Statutory Audit Committee and the Board of Directors. In addition, regional and corporate risk and business continuity committees were created for continuous risk mapping and action plans.

    Some of the risks identified are:

     

    Market

    The pulp market is cyclical and follows the global price trend, which is determined by pulp supply and demand, global capacity to produce market pulp and conditions for economic growth. The price may also be affected by the exchange rate variation of the currencies of the main countries that produce and consume pulp, by the change in inventories of producers and buyers, given the expected future prices, and by strategies adopted by pulp producers who could introduce more competitive products in the market.

    In addition, paper prices are more stable than those in the pulp market, determined by supply and demand conditions in the markets where they are sold. Also, the price of paper may vary due to a number of factors that are beyond our control, including fluctuation in the price of pulp and specific characteristics of the market where we operate. We cannot guarantee that pulp prices will remain at current levels, but the proper management of our production plants allows us to have a competitive advantage in the cost of production, in addition to greater resilience in times of falling prices.

    In the market risk management process, in order to mitigate the points mentioned above, strategies are identified, evaluated and implemented, and financial instruments are secured to protect against risks. To manage the impacts on results in adverse scenarios, the company has in place processes for monitoring exposures and policies for implementing risk management. The policies establish the limits and instruments to be implemented in order to: (i) protect cash flow due to currency mismatches, (ii) mitigate interest rate exposures, (iii) reduce the impact of fluctuations in commodity prices, and (iv) exchange debt indexation.

     

    Operations

    The company is subject to operational risks that may result in the interruption of its activities, even if partial or temporary. These interruptions can be caused by factors associated with equipment failure, accidents, fires, weather, exposure to natural disasters, among other risks. These events can result in serious damage to our property, significant decrease in production, increased production costs, even bodily or fatal injuries to our employees or service providers, in addition to adverse effects on our financial and operating results. Additionally, in our business, we depend on the continuous availability of logistics and transportation networks, such as roads, railways, terminals and ports, which can be blocked due to factors beyond our control, such as social movements, natural disasters and stoppages. Disruption in the supply of inputs to our industrial and forestry units or in the delivery of our finished products to customers may affect our financial and operating results.

     

    Climatic factors

    Climate change, such as in cases of increase in average temperature or water scarcity, can lead to significant losses in forest productivity. For this reason, Suzano implements in different initiatives in order to reduce and mitigate climate risks, such as:

     

    • actions to reduce greenhouse gas emissions: projects to increase efficiency in the use of fossil fuels (when use is necessary); reduction of average radius (distance between forest operations and production plants), which reduces the distance needed for transporting wood and, consequently, reduces fuel consumption; and specific procedures and action plans in case of fires, among other actions;
    • initiatives to adapt to climate change: specific studies of the specificities of each region where we operate and identification of trends in climatic, meteorological and soil conditions, so we can make recommendations for operations and, even, guide analyses for possible expansions; studies focused on the production of clones and seedlings that are more resistant to climate variations and extremes; and development of contingency plans for more critical scenarios (such as a scenario of possible water scarcity in the river basins in which we operate).

     

    Also, in terms of opportunities arising from this scenario, through approximately 1.3 million hectares of eucalyptus plantations and almost 900,000 hectares of native forests (in addition to areas in different stages of restoration), we remove a significant amount of carbon from the atmosphere every year, making our contribution to solving the climate crisis go beyond reducing emissions In addition, today, 88,35% of our energy mix is supported by renewable sources, and the surplus energy produced is sold to the national public energy grid, which contributes to expanding the degree of renewability of the Brazilian energy mix and, consequently, to changing this scenario of crisis.

     

    Management of risks and social impacts

    Following the Procedure for the Identification and Assessment of Social Aspects and Impacts, Suzano’s social impact management model seeks to eliminate, reduce or compensate for negative impacts through management practices, social and environmental investments and continuous control and mitigation actions, which must be included in the operating procedures of the company’s management system. The Social Development team is responsible for coordinating and identifying social aspects and impacts, and analyses are approved by the managers of the processes involved, with final validation by Risc Local – the forum responsible for analyzing and monitoring the relationship processes with stakeholders in the region.

    For identification and analysis of social aspects and impacts, demands of relevant stakeholders from the Sispart software, whose data source is Engagement and Operational Dialogue, among others, are considered. Annually, Risc Local assesses the need to review the matrix of social impacts, considering the results from monitoring and from the critical evaluation of the processes related to the Annual Stakeholder Relationship Plan, and of the demands from stakeholders determined by Sispart.

  • Management approach on the Code of Conduct and human rights

    Context:

    One of Suzano’s basic principles is to establish quality relationships with all of its stakeholders, as set forth in the Company’s Code of Conduct. In this sense, since the management of our business involves many people, we seek to ensure that all of our relationships are duly guided by the highest ethical and integrity values.

    The purpose of the Code of Conduct is to commit our directors, officers, administrators, managers, shareholders, employees, contractors, suppliers, customers, people or entities with which relate, stakeholders of Suzano and its subsidiaries and affiliates to the ethical principles that guide our business conduct and disseminate them to our relationship network. This involves permanent respect for human rights, as a fundamental condition to be met by all parties involved in our business.

    The following are some of the topics covered by our Code of Conduct:

    • compliance with laws, internal rules and procedures;
    • confidentiality of information not disclosed to the market;
    • commitment to best corporate governance practices to comply with the regulation, which covers publicly traded companies;
    • anti-corruption practices;
    • receiving gifts and presents;
    • conflicts of interest;
    • harassment of any nature, inappropriate behavior, discrimination, child labor and/or slave labor;
    • professional appreciation;
    • sustainable development;
    • transparency.

    As stated in the document, we are committed to equity, accountability, corporate responsibility and to ensuring human rights in our business and operations. To reinforce this commitment, we develop actions to raise awareness on these issues through communications, training and team meetings. As an example of these activities, in 2019 we prepared a mandatory training on the Anti-Corruption Policy, in video format, and disclosed our Code of Conduct to all employees.

  • Management of Compliance

    Context:

    At Suzano, we have a team fully dedicated to compliance as an integrated part of the company’s Risk Management. In this sense, the area acts directly using the first line of defense concept through standards of ethics and conduct, covered and disseminated, including in the business areas themselves, in order to enable the identification and mitigation of possible risks of non-compliance in the various activities performed in the company.

    At Suzano, the topic of compliance is also covered, mainly, by the company’s Code of Conduct and Anti-Corruption Policy. Therefore, aiming at the greater dissemination of the topic among our employees, we send communications and e-learning about compliance in order to reach 100% of the audience in question. Based on this, the company’s Compliance team monitors training completion on a daily basis and reports the results to the Internal Audit, to the Statutory Audit Committee and, consequently, to the Board of Directors, as these bodies play the role of sponsors of the topic.

    In 2020, we will focus on expanding the organization’s knowledge of compliance and how this concept applies to Suzano’s different governance level. To this end, we will promote Compliance Week, an entire week dedicated to reflections and clear information on the topic. Thus, our main objective over time is to enable all hierarchical levels of the organization to act in accordance with best market practices on topics of compliance, so that good governance concepts and practices permeate all areas of the company.

  • Management of Conflict of interest

    Context:

    The Board of Directors, Suzano’s highest governance body, sets out, in its Internal Regulations (own, formal and public instrument), the procedure to be followed in the company in case of conflicts of interest. According to this instrument, one of the requirements for the election of the Board Members is precisely the absence of such a situation of conflict.

     

    Information on situations of conflict of interest (such as cross-participation in governance bodies, accumulation of positions and existence of majority shareholders) is regularly disclosed to stakeholders in Suzano’s public documents, such as the Reference Form and 20-F Report, available on the Investor Relations website (as determined by laws and regulations applicable to the company and in the terms and extent provided for in each of the said documents). In this sense, see the specific notes for each of the following items:

     

    • Cross participation in other management bodies (participation in other boards, accumulation of executive and board positions, etc.): cross participation in bodies of Suzano’s Administration and even the existence of marital relationship, stable union or kinship up to the second degree related to the administrators of Suzano, its subsidiaries and parent companies are disclosed in sections 12.5 and subsequent sections of the company’s Reference Form;
    • Relevant cross-shareholding with suppliers and other stakeholders: any relevant cross-shareholding with suppliers and other stakeholders are disclosed through section 16 (and its subsections) of the company’s Reference Form, when characterizing such suppliers and stakeholders as related parties of the company, in other words, to be characterized as such – and, consequently, for relevant transactions to be disclosed in said section -, any eventual relevant cross-shareholding must be informed;
    • Existence of a majority shareholder and/or shareholders’ agreement: information about the existence of a majority shareholder (controlling) and a shareholders’ agreement involving Suzano or related to Suzano is disclosed through section 15 (and its subsections) of Reference Form and Item 7 – Major Shareholders and Related Party Transactions of the company’s 20-F Report;
    • Disclosure of information about related parties: Information on related party transactions is disclosed through Section 16 (and its subsections) of the Reference Form and in ITEM 7. Major Shareholders and Related Party Transactions of the company’s 20-F Report.

     

    Also, considering the cascading of this guideline to the entire company, we have specific controls and policies in place that include the discussion of this topic. They are:

    • Code of Conduct;
    • Anti-Corruption Policy;
    • Integrated Risk Management Policy;
    • Disciplinary Measures Policy;
    • Ombudsman’s Office Policy;
    • Related Party Policy;
    • Social and Environmental Investment Policy (Donations).

     

    Suzano is also part of the Business Pact for Integrity and Against Corruption, aimed at eradicating cases of corruption (including cases of bribery) throughout the company and, thus, promote a more reputable and ethical market. The pact is an initiative launched in 2006 and coordinated by the Ethos Institute for Business and Social Responsibility, UniEthos – Qualification and Development of Socially Responsible Management, Patri Government Relations & Public Policies, United Nations Development Program (UNDP),  United Nations Office on Drugs and Crime (UNODC) and the Brazilian Global Compact Committee.

     

    Additional information:

    See below the provisions of the said Internal Regulations on the topic of conflict of interest.

    “3.1.1. The members of the Company’s Board of Directors must meet the following requirements:

    (…)

    (ii) absence of conflicts of interest within the Company;”

    “4.1. For the purposes of the header of this clause, the following will be considered:

    (…)

    (iii) barred, the member of the Board of Directors who is in a situation of conflict of interest with the Company (“Conflict of Interest” or “Conflict of Interests”), as set out in Clause 20 below, as well as the board member appointed by a competitor company.” 

    “5. With the exception of Conflict of Interest, as provided for in Clauses 20, 21 and 22, below, all information and documents will only be provided or made available to all Board Members, and no Board Member or group of Board Members have information not available to others, nor make direct contact with the Company, its Directors or employees to request information and/or documents, except as provided in Clause 16 below.”

    “20. The Board Members are prohibited from intervening in a social operation in which they have conflicting interests with that of the Company, as well as in a voting that other administrators take in this sense, also observing the provisions of Clause 22, below. The Board Member must declare himself in a situation of Conflict of Interest when he deems that any decision by the Board on a subject to be voted on may be to his own benefit or that of others, with or without prejudice to the Company.

    21. The Board Members who considers themselves in a situation of Conflict of Interest with the Company must absent themselves from the Board meeting or notify the Chairman of the Board, informing him/her of their impediment and requesting that the minutes of the Board meeting register the nature and extent of their interest. 

    22. The Board Member in a situation of Conflict of Interest, after declaring impediment, cannot participate in the debate, nor vote in the matter in which he/she has a Conflict of Interest, and must be absent from the meeting room when the Council is going to discuss such matter.”

    “24. The information sent to the Board of Directors by the Company or by third parties, related to the matter in which a specific Board Member declares to be in a conflict of interest situation, will not be sent to such Board Member, nor will he be given access to such information by the other Board Members. 

    25. Regardless of the notification set out in Clause 21, whenever a situation that could represent Conflict of Interest is identified by a Board Member in relation to any matter to be addressed by the Board, the Chairman of the Board shall notify such Board Member so that he/she, within a given time, can express him/herself in this regard, with a view to the provisions contained in Clauses 21 and 24.”

  • Management of unfair competition

    Context:

    Regarding management of unfair competition at Suzano, as provided in our Code of Conduct, in the Sustainable Development section, “we act in accordance with the rules and principles of free competition, in force in the various locations in which the company operates, refraining from exchanging sensitive information with competitors that may affect free competition or result in abuse of economic power.”

    In this sense, aiming to further improve our management of this topic, after the definition of our governance structures in 2019 (some time after the official merger between Suzano Papel e Celulose and Fibria), we created a plan to implement a more detailed management approach to competition in the company, to be implemented as early as 2020, once a policy on this topic is approved and effectively implemented.

  • Mechanisms for advice and concerns about ethics

    Context:

    Suzano has an external and independent Ombudsman Channel available to the company’s internal and external stakeholders. This channel receives reports on:

     

    • violations witnessed in the business environment and related to the guidelines and behavior set out in the Code of Conduct;
    • violations of ethics, human rights, laws and regulations to which the company is subject;
    • violations of internal rules and procedures, and can also be used to answer questions regarding the Code of Conduct or related to unforeseen situations.

     

    The channel is managed by our Ombudsman area and follows two internal policies:

     

    • Ombudsman Policy: sets out the guidelines of the process and governance on the operation of the area and of the Ombudsman Channel regarding compliance with applicable legal and normative provisions, and sets out the guidelines of internal regulations and codes, including the adoption of specific procedures for protecting the whistleblower and confidentiality of the information;
    • Policy on Disciplinary Measures: sets out guidelines and defines principles, concepts and criteria for applying disciplinary measures to Suzano employees.

     

    Unethical or incompatible behavior with current legislation, as well as issues related to organizational integrity and human rights are escalated to the Company’s Conduct Management Committee, the company’s last resort to decide on controversial situations and possible infractions and violations of the Code of Conduct. This governance model helps us to make impartial and transparent decisions, helping to solve unanticipated ethical dilemmas and ensuring uniformity in the criteria used in the solving similar cases. In addition, the model determines, when so required, the adoption of the necessary measures, by issuing a formal opinion to the relevant areas of the company, in order to ensure that infractions and violations are followed by applicable disciplinary measures, regardless of hierarchical level, without prejudice to the applicable legal penalties.

  • Membership of associations

    Context:

    Association of Forestry-based Companies of the State of Bahia (state)

    (Associação Baiana das Empresas de Base Florestal – Abaf )

    ABAF represents the state’s forest-based companies, as well as their suppliers. It also acts in anticipating scenarios, exchanging information about the sector and joint action to defend interests. Suzano participates in the Board of Directors/Executive Board: Audit Committee Director.

     

    Brazilian Association of the Personal Care, Perfumery and Cosmetics Industry (national)

    Associação Brasileira da Indústria de Higiene Pessoal, Perfumaria e Cosméticos – Abihpec

    A non-profit entity whose main objective is to bring together the national industries of the sector, of all sizes, installed in all regions of the country promoting and defending their legitimate interests, aiming at the economic development they provide.

     

    Brazilian Intellectual Property Association (national)

    Associação Brasileira da Propriedade Intelectual – ABPI

    Non-profit entity that disseminates knowledge and discusses the importance of Intellectual Property in Brazil and worldwide.

     

    (Brazilian Technical Association of Pulp and Paper) (national)

    Associação Brasileira Técnica de Celulose e Papel – ABTCP

    Entity committed to the technical development of professionals in the productive chain of the forest-based sector and to the evolution of the competitiveness of companies operating in this segment. Suzano participates in the Board and in specific projects and commissions.

     

    ACE Mucuri (municipal)

    Business association for the coordination and defense of businesses’ and employees’ interests in Mucuri (Bahia state). Suzano takes part in the Communication Department.

     

    ACE Teixeira de Freitas (municipal)

    Business association for the coordination and defense of the interests of retailers of Teixeira de Freitas (Bahia state), one of the most benefited by the company’s activity in the region.

     

    Trade and Industrial Association of IMP – ACII (municipal)

    Associação Comercial e Industrial de IMP – ACII

    Representative entity of Imperatriz (Maranhão state) Industry and Commerce in order to discuss the common interests of industry and trade in this municipality. Suzano participates in its Board.

     

    Trade and Industrial Association of Três Lagoas (municipal)

    Associação Comercial e Industrial de Três Lagoas – ACITLS

    This business association seeks to represent the interests of the local business class, through actions that strengthen associations, fostering economic development in the municipality of Três Lagoas (Mato Grosso do Sul state).

     

    Trade Association of the State of Maranhão – ACM (municipal)

    Institution to support the commercial class of Maranhão, with the purpose of taking care for the common interests of retailers in the municipality of São Luís (Maranhão state). Suzano takes part in the Executive Board.

     

    Association for the Development of Linhares and Region (regional)

    Associação para o Desenvolvimento de Linhares e Região – Adel

    Business association for coordination and defense of business interests in the municipalities of Linhares, Sooretama and Rio Bananal (Espírito Santo state). Suzano participates in the Operational Board.

     

    Brazil’s Foreign Trade Association (national/international)

    Associação de Comércio Exterior do Brasil – AEB

    Private non-profit entity that brings together and represents the export and import business segment of goods and services, as well as related activities and others. Suzano participates in the Operational Board.

     

    Association of Biotechnology Companies in Agriculture and Agro-industry (national)

    Associação das Empresas de Biotecnologia na Agricultura e Agroindústria – Agrobio

    Its mission is to improve a functional regulatory system and obtain a legally secure environment in order to promote the development of biotechnology applied to agriculture, forestry and agro-industry in Brazil. Suzano participates in the Management Board and Executive Committee, in several commissions and some specific projects.

     

    American Chamber of Commerce for Brazil – Amcham (national/international)

    A national association that works for a better business environment, promoting competitiveness and innovation for a connected community formed 80% by Brazilian companies and 20% by companies from North America and other countries. It is the largest chamber of commerce in Brazil, and the largest North American chamber outside the United States.

     

    Business Movement Association Aracruz  and Region (regional)

    Associação Movimento Empresarial Aracruz e Região – Amear

    Business association for coordination of common business interests in the municipalities of Aracruz, João Neiva and Ibiraçu (Espírito Santo state). Suzano takes part in the Communication Department and in the Operational Board.

     

    Forest Industry Association of the State of Minas Gerais (state)

    Associação Mineira da Indústria Florestal – Amif

    Largest trade association of the forest sector in the State of Minas Gerais, with large institutional representation. Suzano participates in the Operational Board and in six thematic commissions.

     

    National Association of Innovative Companies

    Associação Nacional de Empresas Inovadoras – Anpei

    Brazilian multisectoral association independent of the innovation ecosystem. It provides updates on key topics and articulation of policies to encourage innovation and high-level discussions, in addition to institutional representativeness and personalized training in the area. Suzano participates in some of the existing commissions.

     

    Business Association of the Northern Coast of the State of Espírito Santo (regional)

    Associação Empresarial do Litoral Norte do ES – Assenor

    Business association for coordination and defense of common business interests in the municipalities of Aracruz, João Neiva and Ibiraçu (Espírito Santo state). Suzano participates in the Operational Board and in the Secretary Financial body.

     

    China Brazil Business Council (national/international)

    Conselho Empresarial Brasil China – CEBC

    It aims to promote exchange and cooperation between Brazil and China in the economic, academic and cultural fields, as well as fostering the relationship between the business community, diplomatic circles and the government of both countries. Suzano participates in the Operational Board.

     

    Brazil Climate, Forestry and Agriculture Coalition

    Coalizão Brasil Clima, Florestas e Agricultura

    The participants of the Brazil Climate, Forestry and Agriculture Coalition undertake to organize and operate in a multisectoral and multidisciplinary manner, as well as searching for convergences and using divergences to advance and build solutions.

     

    Center of Industries of the State of São Paulo (state)

    Ciesp – Centro das Indústrias do Estado de São Paulo

    Representative entity of the industrial sector in Latin America that acts as a voice in defense of the São Paulo industry. It aims to strengthen industrial activity as a means of sustainable development, in order to defend the interests of the industry and meet the needs of members, in addition to encouraging relationships and generating business opportunities. Suzano has an institutional connection to the entity. The company participates in its Board.

     

    Florestar (state)

    Non-profit association composed of entities representing the forestry sector, in which Suzano currently holds the Vice Presidency. It seeks to foster the growth and competitiveness of the forest production among its associate members and, then, transform their interests and needs into results.

     

    Findes (state)

    Represents the industrial sector before government agents at state level. Suzano participates in the Council of Representatives, in the Council of Legislative Affairs, in the Labor Relations Council, in the Environment Council and in the Infrastructure Council.

     

    Forest Stewardship Council – FSC® (national/international)

    Suzano participates in the Sustainable Intensification Solutions Forum, a dialogue platform whose goal is to explore opportunities for the adoption of forest intensification approaches within the scope of the FSC system, aiming to fulfill FSC’s mission by increasing productivity, protecting the environment and biodiversity, as well as the resilience of communities and other social values.

     

    Forest Forum – States: Bahia, São Paulo and Espírito Santo

    Fórum Florestal

    Institution responsible for identifying and discussing relevant issues of the forest-based sector, whether sectoral or national, promoting, on a permanent basis, articulated and joint actions, with a view to strengthening the forwarding of proposals to the competent authorities, whether in local or national.

     

    Brazilian Trees Industry (national)

    IBÁ – Indústria Brasileira de Árvores

    It aims to enhance products originating from the cultivation of pine, eucalyptus and other specimens planted for industrial purposes. Suzano participates in the Coordination of the Biotechnology Committee, Certification Committee, Government Relations Committee, Climate Committee and GHG Inventory Working Group.

     

    Brazilian Committee of the Chamber of Commerce (national/international)

    ICC Brasil

    It brings together the Brazilian members of the International Chamber of Commerce (ICC), the world’s largest business organization, whose mission is to give voice to the Brazilian business community, through the global reach of the ICC.

     

    ILSI – Life Sciences Institute

    Its objective is to hold a permanent forum for updating knowledge to solve technical-scientific problems that contribute to the health of the population and are of common interest to companies, government agencies, universities and research institutes. Suzano participates in the Biotechnology Task Force and the Scientific Administrative Council.

     

    Government Relations Institute – Irrelgov (national/international)

    The Institute of Government Relations in Brazil aims to raise the level of professionalism, competence and ethical standards of professionals working with government relations, positioning itself as a think tank for the area.

     

    Forest Research and Studies Institute (Ipef)

    Instituto de Pesquisas e Estudos Florestais

    The Forest Research and Studies Institute (Ipef), created in 1968, is an association with no economic purpose whose objective is to plan, implement and coordinate actions and manage resources, aimed at studies, analyzes and research in the area of natural resources, with an emphasis on forest science.

     

    Lide (national/international)

    Participation in forums and business roundtables promoted by the institution, increasing Suzano’s contact network with other corporations.

     

    New Generations Plantations (national/international)

    The New Generation Plantations (NGP) platform is a place to share knowledge about good planting practices and learn from experience. The platform seeks to influence other companies and governments to make environmentally and socially responsible decisions in their plantation management. Suzano is a member of the Steering Committee of the WWF’s New Generations Plantations platform.

     

    Global Compact Brazil

    Pacto Global Brasil

    International mobilization of companies in support of the United Nations (UN) in promoting ten principles that bring together fundamental values in the areas of the environment, human and labor rights and the fight against corruption, as well as the engagement and achievement of the SDGs. The Global Compact is a voluntary contribution by companies to the search for a more sustainable and inclusive global economy. Suzano has a stake in the Technical Group for Energy and Climate, in addition to the Board of Directors of the Global Compact Brazilian Network.

     

    (Association of Planted Forest Producers of the State of Mato Grosso do Sul (state)

    Reflore – Associação dos Produtores de Floresta Plantada

    It brings together important companies from the forest production chain with headquarters or branch in Mato Grosso do Sul. Its mission is to bring together, represent, promote and defend the collective interests of Associated Companies that are dedicated to Sustainable Development based on Planted Forests. Suzano holds the Vice Presidency.

     

    SustainAbility Transparency Network

    Group of global companies that believe that transparency drives performance and development. The network helps companies make an impact by offering practical tools and learning opportunities between peers and experts.

     

    Union of the Industries of Paper, Pulp, Cardboard, Paper Wood Pulp, and Paper and Cardboard products (state)

    Sindicato das Indústrias do Papel, Celulose, Papelão, Pasta de Madeira de Papel e Artefatos de Papel e Papelão – Sindipacel

    Represents the industrial sector before government agents at state level (Bahia state). Suzano takes part in the Secretary.

     

    Employers Union of the Pulp and Paper Industries of the State of Mato Grosso do Sul (state)

    Sindicato Patronal das Indústrias de Papel e Celulose de MS – Sinpacems

    It aims to promote the development and representativeness of the industry in the pulp and paper industry in the state of Mato Grosso do Sul, strengthening the sector, stimulating innovation, competitiveness, quality and promoting sustainable development. Suzano holds the Vice Presidency.

     

    Technical Association of the Pulp and Paper Industry (Tappi)

    International non-governmental and non-profit organization with participation of several players in the pulp and paper sector (including engineers, scientists, executives and scholars). Through the exchange of information, reliable content and networking opportunities, the organization helps its members to improve the performance of their activities. Suzano currently participates in some of the commissions and in the Board of the association.

     

    United Nations – UN (national/international)

    Suzano is a member of the Civil Society Mechanism of the UN Food Security Committee (CSA), Rome.

    1. Certificados de manejo florestal FSC-C110130, FSC-C118283, FSC-C100704, FSC-C009927 e FSC-C155943; e de cadeia de custódia FSC-C010014.

  • Non-compliance with environmental laws and regulations

    Change view:

    • wdt_ID Significant fines¹ and non-monetary sanctions for non-compliance with environmental laws and/or regulations 2019
      1 Total monetary value of significant fines paid in the period (R$) R$ 374,683.34
      2 Total monetary value of significant fines that are outstanding (R$) R$ 6,009,029.94
      3 Total number of non-monetary sanctions 1
      4 Total number of cases resolved through dispute mechanisms 0

    1. We consider significant fines to be those equal to or greater than US$ 10,000.00.

    Additional information:

    The fines were imposed for alleged non-compliance with legislation/regulation, under discussion by the company. The cases involve various topics, such as performing polluting activities or construction work without permits.

    As a practice, to avoid new occurrences, the company evaluates the infractions and, if applicable, makes the necessary adjustments in each case.

  • Non-compliance with laws and regulations in the social and economic area

    Change view:

    • wdt_ID Significant fines¹ and non-monetary sanctions for non-compliance with laws and/or regulations in the social and economic area 2019
      1 Total monetary value of significant fines paid in the period (R$) R$ 454,523.59
      2 Total monetary value of significant fines that are outstanding (R$) R$ 0.00
      3 Total number of non-monetary sanctions 0
      4 Total number of cases resolved through dispute mechanisms 0

    1. We consider significant fines to be those equal to or greater than US$ 10,000.00.

    Additional information:

    In 2019, we paid two fines related to notices of violation 211661864 and 215049829, due to non-compliance with the legal quota for people with disabilities (PwDs). As a forest-based company with extensive industrial activity, filling this quota is a challenge. Finding qualified PwD labor in all regions where we operate is even more challenging. With this in mind, Suzano relies on an internal movement aimed at valuing diversity and encouraging inclusion in the company: the Plural Program, which has as one of its objectives to fully fill the quota of PwDs in the company in the coming periods.

  • Political contributions

    Context:

    In accordance with Brazilian law and with the company’s Code of Conduct and Anti-Corruption Policy, Suzano does not make contributions of any kind to political parties and agents.

    As provided in section “Rules to Prevent Corruption” of our Anti-Corruption Policy (item “5.5. Suzano’s Political Contributions”), “Any type of financing and/or campaign contribution of any kind by companies, either directly or indirectly, to political parties, agents and/or candidates is strictly prohibited. Thus, any involvement with governmental authorities, if any, will always be carried out in a legitimate, non-financial manner, and will comply with the rules, limits and disclosure established by the applicable legislation. Any political involvement, however, will always be guided by the rules established in Suzano’s Code of Conduct and in this Policy. Suzano does not accept party political initiatives involving the Corporation and/or the workplace. (…)”.

    Change view:

    • wdt_ID Indicator 2019
      1 Total monetary value of contributions made by the organization to political parties and agents in cash and in kind, directly or indirectly 0.00
  • Precautionary Principle or approach

    Context:

    Suzano understands that large organizations are driven by their own cultural dynamics and supported by the employees who make up their processes and procedures. In this way, the company explores the concept of the first line of defense through standards of conduct trained and disseminated in the business areas in order to identify and mitigate possible risks in their operations.

    The company has in place the Integrated Risk Management, a methodology based on the business environment, which lists a portfolio of risks based on the critical analysis of the business areas. This analysis considers as parameters the impacts (financial, health and safety, environment, social/cultural, image and reputation, organizational climate, legal) and the probability of occurrence (very likely, likely, possible, remote). Risks defined as priorities and their respective action plans are monitored by the Executive Board, the Statutory Audit Committee and the Board of Directors.

    Specifically with regard to environmental risk management, environmental teams monitor the matrix of operational environmental aspects and impacts, in which the risks are monitored through specific processes audited annually. Internal audits are performed by an internal team and/or by contracted consultants. External audits, in turn, are carried out by accredited national and international certifiers, and by environmental agencies that monitor legal compliance.

  • Processes for nominating and selecting the highest governance body and its committees

    Context:

    The election of members to compose the Board of Directors of the company must comply with the Policy for the Nomination of Members of the Board of Directors, whose objective is to determine the criteria for the composition of the Board, with due regard for the best corporate governance practices, with appropriate transparency.

    The Policy is based on: (i) the corporate governance guidelines of the company’s bylaws, as amended (Bylaws); (ii) the Code of Conduct applicable to companies in the organization’s economic group, whose adoption was ratified at a meeting of the company’s Board of Directors on March 18, 2018; (iii) Law No. 6,404, of December 15, 1976, as amended; (iv) IBGC’s Code of Best Corporate Governance Practices and the Brazilian Code of Corporate Governance; and (v) the Novo Mercado Listing Rules of B3 S.A. – Brasil, Bolsa, Balcão, in force since January 2, 2018 (Novo Mercado Regulations).

    Pursuant to the terms of the Policy, at least 2 members of the Board of Directors or 20% of the Board (whichever is greater) must be independent members, as defined by the B3 Novo Mercado Regulation and CVM Instruction No. 461/07, further observing that the following situations may compromise the independence of a member of the Board of Directors:

     

    • act or have acted as an administrator or employee of the company or of the controlling group, of an independent audit firm that audits or has audited the company, or even of a non-profit entity that receives significant financial resources from the company or its related parties;
    • have a spouse, partner or relative of up to second degree who acts or has acted as an administrator or employee of the company or of the controlling group, of an independent audit firm that audits or has audited the company, or even of a non-profit entity that receives significant financial resources from the company or its related parties;
    • act or have acted, either directly or as a partner, shareholder, board member or director, in a relevant commercial partner of the company and/or company that may be considered a competitor of the company or its subsidiaries, provided that such performance represents a conflict of interest with that of company or its subsidiaries or affects the independence of the Board;
    • have close family ties (kinship of up to four degrees) or significant personal relationships with direct or indirect controlling shareholders, non-independent Board Members or Company Directors;
    • having served four consecutive terms as a Board Member in the company as the Suzano Annual General Meeting to be held in 2018.

     

    In 2019, the Board of Directors constituted an Eligibility Committee (EC), which should be formed by three or five members. In its composition, the majority of its members must be independent members of the Board of Directors and/or external to the company, and who have independence, according to the same parameters provided for in this policy. The EC Coordinator must have renowned specialization/experience in selection processes, preferably being an external member who has the character of independence.

    The EC is responsible for safeguarding the independence of Board Members classified as independent:

     

    • evaluate and/or indicate to the Board of Directors people who, having complied with the legal requirements and those provided for in the company’s Bylaws, may be candidates for inclusion on the slate to be submitted for election by the Board of Directors to the General Meeting;
    • evaluate and nominate to the Board of Directors people for positions of Board of Directors, to replace eventual vacancies of positions, until the next Annual General Meeting.

     

    The independent Board Members nominated must have adequate training and skills to exercise the position, to be certified by the EC.

    The EC may ask the nominee for the position to attend an interview to explain the requirements of this article, and the acceptance of the invitation will respect the will of the nominee.

    Currently, the EC has the following composition: Nildemar Secches, Lilian Maria Ferezim Guimarães and Eduardo Nunes Gianini.

    With regard to the advisory committees to the company’s Board of Directors, their respective members are directly chosen by the Board, the body to which they report, observing in this selection the rules for convening a meeting and deliberating/counting votes provided for in the company’s Bylaws. Members of the company’s Board of Directors are allowed to participate in one or more advisory committees.

  • Training about anti-corruption policies and procedures, by employment category

    Change view:

    • wdt_ID Training about anti-corruption policies and procedures, by employment category - 2019¹ Total number Percentage
      1 Administrative 2,431 89%
      2 Board Members 18 n/d
      3 Consultants 512 93%
      4 Coordinators 316 88%
      5 Directors 10 53%
      6 Managing Directors 9 75%
      7 Specialists 817 89%
      8 Executive Managers 79 85%
      9 Functional Managers 239 83%
      10 Operational 6.700 79%

    1. The numbers do not include employees on leave or apprentices during the reporting period.

    Additional information:

    The body responsible for approving the anti-corruption guidelines is the Board of Directors. In this regard, at a meeting held on July 22, 2019, which was attended by all Directors, the company’s Anti-Corruption Policy was approved unanimously and without reservations, demonstrating their involvement and knowledge and highlighting their review of the Policy terms.

    In addition, anti-corruption training, as well as the Code of Conduct, is refreshed every two years and made available to the company in a mandatory format. Thus, approximately six months after the course restarted, we have already registered 83% completion, i.e., only 17% remains for full completion, with a period of more than one year for the end of the cycle. It is worth mentioning that, in the last training cycle, until it was restarted, we had registered 90% completion.