SDG-16
Peace and Justice and Strong Institutions

Promote peaceful and inclusive societies for sustainable development, provide access to justice for all and build effective, accountable and inclusive institutions at all levels

Related indicators
  • Anti-corruption management

    Related Material Themes:

    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).

  • Approach to environmental management system (EMS)

    Related Material Themes:

    Context:

    Suzano’s industrial environmental management system is certified under the NBR ISO 14001:2015 standard. The forest management system, in turn, is attested by the forest management standards FSC® (Forest Stewardship Council®)1 and PEFC/CERFLOR (Brazilian Forest Certification Program), whose content includes several requirements related to environmental issues. Therefore, both in our industrial and forestry operations we have our own environmental management systems specific to each reality. Each industrial unit has a member of the area responsible for managing this topic, while in the forestry units, management is coordinated by teams that work specifically on environmental issues, guiding operational teams to act in accordance with established standards.

    In order to monitor the certifications related to these systems, internal and external audits are performed annually. Internal audits are performed by auditors trained internally and assigned for this purpose and/or by duly qualified consultants. External audits, in turn, are performed by internationally accredited certification bodies.

    Suzano’s environmental management also follows a series of internal company procedures, such as surveys of environmental aspects and impacts, management of environmental events and waste management. The company’s Corporate Environmental Management and Controlled Wood Policies, both available on our website, also guide the company in its actions on this topic. It should be noted that new versions of these policies are in the approval phase and should be published soon. In the forestry area, Suzano’s environmental management system also complies with the FSC Association Policy, as well as with the FSC and PEFC/CERFLOR certification standards.

    Suzano’s main results in 2019 with regard to environmental certifications were:

    • recertification of ISO 14001 with unification of the scopes of former Fibria and Suzano Papel e Celulose (units included in the current scope: Imperatriz, Mucuri, Aracruz, Suzano, Rio Verde, Limeira, Jacareí, and Três Lagoas);
    • recertification of Forest Management FSC and PEFC/CERFLOR in the Forestry Business Units (UNFs) in the States of Bahia and São Paulo;
    • unification of the certification scopes of the São Paulo Forestry Unit in the FSC and PEFC/CERFLOR Forest Management (unification of the Forestry Units of former Fibria and Suzano Papel e Celulose);
    • reformulation of the certification scopes of FSC and PEFC/CERFLOR Forest Management in the States of Bahia and Espírito Santo;
    • inclusion of the lignin plant in the GIS scope (ISO 9001, ISO 14001 and OHSAS 18001);
    • inclusion of tissue processes in the ISO9001 standard at the Imperatriz and Mucuri units.

     

    1. Forest management certificates: FSC-C110130, FSC-C118283, FSC-C100704, FSC-C009927, and FSC-C155943; and chain of custody certificate FSC-C010014.

  • Average time frame for handling complaints from neighbours, in number of days

    Related Material Themes:

    Change view:

    • wdt_ID Indicator São Paulo Mato Grosso do Sul Espírito Santo Bahia¹ Maranhão Total
      1 Average time frame for handling complaints from neighbours, in number of days - 2019 32 35 34 94 26 34.6

    1. In Bahia, due to the period of integration and changes in flows and in those responsible for the customer service process, the time to resolve the events increased considerably.

  • Certification management

    Related Material Themes:

    Context:

    Certifications at Suzano are managed both for our forestry and industrial operations, attesting to our responsible social and environmental conduct in each stage of our production chain. In this sense, each industrial and forestry unit has at least one member of the teams responsible for managing this topic in the company, in order to guide the operational areas to act in accordance with the certification requirements.

    Our forestry certifications seek to ensure the good use of natural resources and quality human relations in these environments. Today, our responsible forest management is due to a solid social and environmental governance model, which adopts the best practices and management standards in order to create value for the environment and for all audiences with whom we interact, in full compliance with the Sustainability Strategy and with the company’s long-term vision. Additionally, this model is attested by the strictest national and international standards focused on this topic – FSC® (Forest Stewardship Council®)¹ and PEFC/CERFLOR (Brazilian Forest Certification Program) -, which ensures the company’s good conduct when developing forest products, respecting the environmental, social and economic aspects of the region. In these cases, the company is audited annually, based on pre-established environmental, social and economic performance standards.

    Our industrial certifications, in turn, demonstrate the use of best practices in management of processes in our production units, ensuring, in a balanced way, the creation of value and innovation and efficiency in our operations. They are: FSC®² and PEFC/CERFLOR for the chain of custody, ISO 9001 (quality), ISO 14001 (environmental management) and OHSAS 18001 (health and safety).

    In 2019, our results in the area of certifications included:

    • five recertifications developed:
      • ISO 9001;
      • ISO 14001;
      • OHSAS 18001;
      • Forest Management FSC®1 and PEFC/CERFLOR in the Forestry Business Units (UNFs) in the State of Bahia;
      • Forest Management FSC®1 and PEFC/CERFLOR in the Forestry Business Units in the State of São Paulo;
      • FSC®² chain of custody in the industrial units and trading companies;
    • unification of certification scopes:
      • of the São Paulo Forestry Unit in the FSC®1 and PEFC/CERFLOR Forest Management (unification of the Forestry Units of former Fibria and Suzano Papel e Celulose);
      • of the industrial units and trading companies in the chain of custody FSC®² and PEFC/CERFLOR;
    • reformulation of the certification scopes of FSC®1 and PEFC/CERFLOR Forest Management in the States of Bahia and Espírito Santo;
    • inclusion of the lignin plant in the GIS scope (ISO 9001, ISO 14001 and OHSAS 18001);
    • inclusion of tissue production from the Mucuri and Imperatriz industrial units in the scope of ISO 9001 certification;
    • compliance with several audits of customers that have synergy with the other audits performed in the units.

    1. Forest management certificates: FSC-C110130, FSC-C118283, FSC-C100704, FSC-C009927, and FSC-C155943.

    2. Chain of custody certificate: FSC-C010014.

    Additional information:

    The scope and standards used for certification are described below.

    Integrated Management System

    Scope: project, product development, production, storage, selling in the domestic and foreign markets, and technical support on eucalyptus short-fiber pulp, eucafluff pulp, coated papers, uncoated papers, card stock, cut size paper, tissue paper, and lignin.

    Standards:

    • ABNT NBR ISO 9001:2015;
    • ABNT NBR ISO 14001: 2015;
    • OHSAS 18001:2007.

    Chain of Custody FSC®

    Scope of certification: pulp and paper products.

    Certificate type: Multi-site.

    FSC® standards:

    • FSC-STD-40-003 V2-1_PT_ CoC Multi_Site Certification;
    • FSC-STD-40-004 V3-0_PT_ Chain of Custody Certification;
    • FSC-STD-40-005 V3-1_PT_ Requirements for Consumption of Controlled Wood FSC;
    • FSC-STD-40-007 V2-0_PT_ Recovered Material;
    • FSC-STD-50-001 V2-0_PT_ Requirements for the use of registered trademarks FSC® by certificate holders;

    Cerflor standard: ABNT NBR 14.790 (Cerflor chain of custody assessment regulation)

    Forest Management

    Certified units:

    • UNF MA (Maranhão);
    • UNF BA (Bahia);
    • UNF ES (Espírito Santo);
    • UNF SP (São Paulo);
    • UNF MS (Mato Grosso do Sul).

     

    FSC® standard: FSC-STD-BRA-01-2014 V1-1 PT – Evaluation of Planted Forests in the Federative Republic of Brazil: Harmonized Standard among Certifiers.
    Cerflor standard: ABNT NBR 14.789 – 2012 version.

  • Composition of the highest governance body and its committees

    Related Material Themes:

    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

    Related Material Themes:

    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.

  • Direct economic value distributed (%)

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    Change view:

    • wdt_ID Economic value distributed 2019 (%)
      1 Operating costs 57
      2 Employee wages and benefits 8
      3 Payments to providers of capital 29
      4 Payments to government 6
      5 Total 100
  • Direct economic value generated and distributed, in R$ and US$

    Related Material Themes:

    Change view:

    • wdt_ID Direct economic value generated 2019 (R$)¹ 2019 (US$)¹
      1 GENERATED
      2 Revenues 30,896,356.00 7,518,093.25
      3 Economic value distributed
      4 DISTRIBUTED
      5 Operating costs 15,368,942.00 3,739,765.91
      6 Employee wages and benefits 2,067,669.00 503,131.45
      7 Payments to providers of capital² 7,728,778.00 1,880,664.30
      8 Payments to government 1,632,205.00 397,168.82
      9 Total³ 26,797,594.00 6,520,730.48
      10 ECONOMIC VALUE RETAINED

    1. Data are presented on an accrual basis and the information made available refers only to the parent company and consolidated. The dollar amounts (US$) were converted based on the average exchange rate on 12/31/2019.
    2. Includes remuneration of third-party capital (accrued interest, foreign exchange variations (liabilities), rents and others) and retained earnings (losses) for the year.
    3. The Value Added Statement (VAS) does not include the opening by investments in community and, for this reason, this category is not included here.

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

    Related Material Themes:

    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

    Related Material Themes:

    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

    Related Material Themes:

    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

    Related Material Themes:

    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.

  • Employee training on human rights policies or procedures

    Related Material Themes:

    Change view:

    • wdt_ID Employee training on human rights 2019
      1 Total number of hours devoted to training on Human Rights 377,520
      2 Total number of employees trained on Human Rights¹ 12,584
      3 Percentage of employees trained on Human Rights 92%

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

  • Grievances/demands received and addressed by the Ombudsman Channel

    Related Material Themes:

    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

    Related Material Themes:

    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
  • Implementation index of the annual dialogue program

    Related Material Themes:

    Change view:

    • wdt_ID Indicator São Paulo Mato Grosso do Sul Espírito Santo Bahia Maranhão Total²
      1 Compliance index of the annual dialogue program - 2019 (%)¹ 100 100 100 100 n/a 100

    1. In 2019, the dialogue process at the Maranhão unit was restructured and, consequently, the monitoring of the indicators related to this topic needed to be reassessed. This indicator will be monitored starting in 2020.

    2. Average for units in the states of Bahia, Espírito Santo, Mato Grosso do Sul and São Paulo.

  • Incidents of discrimination and corrective actions taken

    Related Material Themes:

    Change view:

    • wdt_ID Incidents of discrimination 2019
      1 Number of incidents received 1
      2 Number of incidents for which a remediation plan is being implemented 0
      3 Number of incidents for which a remediation plan has been implemented, with results reviewed through routine internal management review processes 0
      4 Number of incidents resolved 1

    Additional information:

    We received a report of alleged discrimination in the company in 2019. However, after investigation, the report was deemed unfounded and the incident of discrimination was not confirmed.

  • Incidents of violations involving rights of indigenous peoples

    Related Material Themes:

    Change view:

    • wdt_ID Indicador 2019
      1 Total number of identified incidents of violation involving rights of indigenous peoples 0
  • Key impacts, risks, and opportunities

    Related Material Themes:

    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

    Related Material Themes:

    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 approach on the use of genetically modified organisms (GMOs)

    Related Material Themes:

    Context:

    All activities performed by FuturaGene, Suzano’s biotechnology subsidiary, are regulated by the National Technical Commission on Biosafety (CTNBio), an agency linked to the Ministry of Science, Technology, Innovation and Communications, which advises the Brazilian federal government on issues related to biosafety of genetically modified organisms (GMOs). The company follows the Biosafety Law, as well as all regulations and communications published by CTNBio, and all of its facilities operate under a Biosafety Quality Certificate (CQB – Certificado de Qualidade em Biossegurança) granted by the Commission, which makes it possible to develop its research projects and carry out the respective biosafety assessments of its technologies in laboratories, greenhouses and fields, in accordance with the guidelines established by legislation.

    FuturaGene has in place an Internal Biosafety Commission (CIBio), whose legal role is to ensure support for compliance with legislation, promote training and make recommendations regarding biosafety, and supervise activities with GMOs and their by-products within the company. FuturaGene’s activities are inspected internally by CIBio, which periodically assesses whether the processes are being carried out in accordance with the criteria established by CTNBio and by the regulatory and registration agencies – Ministry of Agriculture, Livestock and Supply (MAPA), Brazilian Institute of Environment and Renewable Natural Resources (IBAMA) and the National Health Surveillance Agency (ANVISA).

    The company requests authorization from CTNBio to install each new experiment in the field and submits an annual report to the Commission describing all activities performed in the laboratory, greenhouses and fields. FuturaGene’s activities in Brazil are frequently supervised by MAPA and IBAMA.

    FuturaGene voluntarily adheres to the Program for the Recognition of Compliance with the Principles of Good Laboratory Practice (GLP), operated in Brazil by the National Institute of Metrology, Quality and Technology (Inmetro). BPL is a quality system that encompasses the organizational process and the conditions under which non-clinical studies on safety to human health and the environment are planned, developed, monitored, recorded, filed and reported. FuturaGene holds the GLP recognition for studies involving the detection, identification and quantification of GMOs through molecular methods, used for the step of molecular characterization and quantification of protein expression in genetically modified events.

    FuturaGene has developed a multidisciplinary Standard Operating Procedure (SOP) for selecting Research & Development projects, including those related to GMOs. Each potential technology/project is evaluated taking into account its scientific aspects (characteristics, concept, history in other species), business prospecting (need, cost, return), regulatory issues (prior approval in other countries, potential risks, biosafety) and intellectual property issues (existing patents, right of use, freedom of operation). Any technology that poses risk to the environment, human or animal health is excluded through these filters. The development of products that show adverse or unexpected results during biosafety or performance evaluations is immediately suspended until a complete review of all criteria is finalized, which may lead to the restructuring or cancellation of the project.

    Suzano developed a policy and a positioning document on the experimentation and use of genetically modified trees. In particular, this policy sets out the commitment to:

     

    • maintain compliance with all applicable laws, conventions and protocols;
    • transparency;
    • scientific advancement based on ethical decisions;
    • global dialogue;
    • provide access and share benefits along the entire value chain, with technology transfer at no cost for humanitarian or environmental purposes;
    • recognition of risks or controversies related to the use of emerging technologies;
    • avoid the most controversial practices related to emerging technologies;
    • inform about the use of emerging technologies;
    • implement measures that reduce or mitigate the risks associated with emerging technologies.

    Suzano and FuturaGene also follow the criteria established by the forest certification bodies, such as FSC® (Forest Stewardship Council®)¹ and PEFC (Brazilian Forest Certification Program), with regard to GMOs, and performs activities for research purposes only, and in areas outside the scope of certification. Suzano is in the process of formalizing its positioning and policy regarding genetically modified trees and intends to publish the documents already in the first half of 2020.

    1. Forest management certificates FSC-C110130, FSC-C118283, FSC-C100704, FSC-C009927, and FSC-C155943; and chain of custody certificate FSC-C010014.
  • Management of Compliance

    Related Material Themes:

    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

    Related Material Themes:

    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 government fees and payments

    Related Material Themes:

    Context:

    Suzano’s tax policy values the development of strategies aimed at managing the tax burden, always in compliance with current legislation. Suzano, as a multinational company with businesses in several countries and as a publicly traded company, maintains a transparent relationship with public agencies and sector associations in order to create value and generate revenue for tax entities at federal, state and municipal levels.

    The company has terms of agreement/protocols of intent with state entities, always aiming at optimizing the tax burden in accordance with state legislation. Within this context, we participate in tax committees of sector associations (IBÁ), industrial federations (Findes, Fiesp and Fiema, among others) and in specific groups to discuss the subject (Getap).

    As a company listed on B3 (Stock Exchange) and SEC (Securities and Exchange Commission), Suzano has as its guideline the compliance with its tax obligations, which are verified by an external and independent audit, internal audit, the Tax Committee and the Audit Committee.

  • Management of the relationship with indigenous and other traditional communities

    Related Material Themes:

    Context:

    In the engagement process with indigenous communities, which is guided by our Relationship Management Guide, Suzano recognizes that their customs, social organization, language, beliefs and traditions are legally recognized, as well as their original rights over the lands they traditionally occupy. In this sense, in line with the Universal Declaration of the Rights of Indigenous Peoples and Convention 169 of the International Labor Organization (ILO) on indigenous and Tribal Peoples in Independent States, the main guidelines for engagement with traditional communities adopted by Suzano are:

     

    • recognize and respect traditional knowledge and the perspective of peoples and communities as a starting point for the entire engagement and communication process;
    • adequately estimate the timeframes with communities to ensure that their internal processes of understanding and discussion are observed;
    • adopt communication and information dissemination tools that are effective, culturally appropriate and that respect the existing organization of peoples and local communities, in terms of language, format and dynamics;
    • respect the traditional forms and practices of communities and peoples for spaces of governance in which the planning and execution of activities originating from the engagement process are discussed;
    • ensure that the social and environmental investments to be made respect and strengthen the traditional way of life and development priorities of the peoples and traditional communities with which the company interacts;
    • make social and environmental investments that promote institutional strengthening and the political autonomy of representative organizations (local, regional and national levels) and value the specific forms of social and political organization of traditional peoples;
    • support initiatives to strengthen and appreciate traditional culture, quality and culturally appropriate education, and traditional medicine;
    • involve governmental institutions, non-governmental organizations and organizations representing traditional peoples (local, regional and national levels) in the projects developed.

     

    Within the company, the relationship with the communities is the responsibility of the Social Development Department and is managed through tools and procedures integrated in the company’s Management System. The relationship and engagement processes with surrounding communities, traditional peoples and NGOs interested in our business is assessed by Corporate Risc, based on the critical analysis of these processes prepared by Local Risc. Risc is a forum that brings together managers from the various areas in order to integrate strategic sustainability policies and guidelines in the company’s management and operation. The Local Risc of each unit is responsible for analyzing and monitoring the relationship processes with local stakeholders, through:

     

    • monitoring the execution of the Annual Stakeholder Relationship Plan;
    • monitoring the main social issues and conflicts in the area where the unit operates;
    • monitoring and evaluation of actions resulting from relationship processes, including Operational Dialogue and Engagement;
    • monitoring and evaluation the execution of social and environmental investment projects.

     

    The Social Development Department reports, in the results meetings of the Forestry and Industrial areas, the monitoring of the execution of the Annual Stakeholder Relationship Plan, as well as evaluations of the effectiveness of the actions resulting from its processes. Management of Suzano’s stakeholder relations and of external social and environmental investments is centralized in Sispart, a corporate management system to record and demonstrate, in a unified and updated manner, the relationship with stakeholders.

  • Management of the relationship with local communities

    Related Material Themes:

    Context:

    At Suzano, community relations is the responsibility of the Social Development Department, and is managed through a series of tools and procedures that are integrated in the company’s Management System (Relationship Management Guide, Procedure for Relationship with Urban and Rural Communities, Procedure for Operational Dialogue, Procedure for Managing Stakeholder Occurrence, Procedure for Identifying and Assessing Social Aspects and Impacts, and Procedure for Managing Social Demands).

    The relationship and engagement processes with surrounding communities, traditional peoples and non-governmental organizations (NGOs) interested in our business is assessed by Corporate Risc, based on the critical analysis of these processes prepared by Local Risc. Risc is a forum that brings together managers from the various areas in order to integrate strategic sustainability policies and guidelines in the company’s management and operation.

    The Local Risc of each unit is responsible for analyzing and monitoring the relationship processes with local stakeholders, through:

     

    • monitoring the execution of the Annual Stakeholder Relationship Plan;
    • monitoring the main social issues and conflicts in the area where the unit operates;
    • monitoring and evaluation of actions resulting from relationship processes, including Operational Dialogue and Engagement;
    • monitoring and evaluation the execution of social and environmental investment projects.

     

    Thus, the Social Development Department reports, in the results meetings of the Forestry and Industrial areas, the monitoring of the execution of the Annual Stakeholder Relationship Plan, as well as evaluations of the effectiveness of the actions resulting from its processes. Management of Suzano’s stakeholder relations and of external social and environmental investments is centralized in Sispart, a corporate management system to record and demonstrate, in a unified and updated manner, the relationship with stakeholders.

  • Management of unfair competition

    Related Material Themes:

    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

    Related Material Themes:

    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.

  • New suppliers that were screened using social criteria

    Related Material Themes:

    Context:

    At Suzano, the process of registering and certifying new suppliers considers their scope of operation to define the criteria by which they will be analyzed. With regard to social criteria, all suppliers are invariably analyzed and are only registered if they are in accordance with the established criteria. Thus, in 2019, 100% of the new suppliers hired by the company – i.e., 1,953 suppliers – were selected based on these criteria.

    Change view:

    • wdt_ID New suppliers that were screened using social criteria 2019
      1 Total number of new suppliers that were considered for hiring 1,953
      2 Total number of new suppliers that were hired using social criteria 1,953
      3 Percentage of new suppliers that were hired using social criteria (%) 100.00%
  • Non-compliance with environmental laws and regulations

    Related Material Themes:

    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

    Related Material Themes:

    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.

  • Non-discrimination management approach

    Related Material Themes:

    Context:

    Suzano is against any type of discrimination inside and outside the work environment and, to reinforce this position, our Code of Conduct has a specific ethical pillar regarding this topic: equality. We treat with respect, dignity and attention all those with whom we interact, whether inside or outside the company. We also value diversity, without discrimination or inequality on grounds of species, race, color, political opinion, gender, religion, sex, sexual orientation, age, place of birth, disability, among other aspects.

    Within this context, we have in place the Plural Program, a movement that emerged organically and voluntarily at Suzano in 2016 and was institutionalized in 2019, aiming to foster a culture of valuing diversity and encouraging inclusion in the company. Aligned with Suzano’s Sustainability and Diversity & Inclusion strategies, the group is co-responsible for promoting non-discrimination in the workplace, among other actions that cover the topic of diversity.

  • Number of complaints received

    Related Material Themes:

    Change view:

    • wdt_ID Year São Paulo Mato Grosso do Sul Espírito Santo Bahia Maranhão Total
      1 2019 166 40 105 17 59 387
  • Number of families directly benefited by social programs

    Related Material Themes:

    Change view:

    • wdt_ID Indicador São Paulo Mato Grosso do Sul Espírito Santo Bahia Maranhão Total
      1 Number of families directly benefited by social programs¹ - 2019 1,036 1,505 2,641 4,403 965 10,550

    1. Considers only the families that participate in the income generation programs.

  • Number of operations that required consultation with the local community

    Related Material Themes:

    Change view:

    • wdt_ID Indicator São Paulo Mato Grosso do Sul Espírito Santo Bahia Maranhão Suzano
      1 Number of operations that required consultation with the local community - 2019¹ 0 0 0 0 0 0

    1. In 2019, our operations were all consolidated, i.e., in more advanced stages than those that require consultation with local communities (no new projects were implemented). In any case, in all communities impacted by forestry, harvesting and wood transportation operations, the Operational Dialogue process was conducted (an instrumental procedure in our management).

  • Number of operations under implementation/development that are in the consultation phase with the local community

    Related Material Themes:

    Change view:

    • wdt_ID Indicator São Paulo Mato Grosso do Sul Espírito Santo Bahia Maranhão Suzano
      1 Number of operations under implementation/development that are in the consultation phase with the local community - 2019 1 0 0 0 0 0 0

    1. In 2019, our operations were all consolidated and in more advanced stages of relationship with local communities (no new projects were implemented).

  • Operational Dialogue

    Related Material Themes:

    Context:

    The Operational Dialogue is a direct communication channel through which the company informs residents of neighboring communities in advance about forestry operations scheduled for the region and discusses the possible risks and adverse impacts of these operations and the ways to mitigate them.

    It is promoted through meetings and/or individual contacts before the start of operations. After the completion of the operations, the effectiveness of the agreed upon actions is assessed through individual interviews with representatives of the community or through a new meeting.

     

    The objectives of the initiative are:

    • to enable communities and neighbors to learn about the forestry operations that will be carried out in their surroundings and about the possible risks and positive and adverse impacts of these operations;
    • strengthen the relationship and improve communication between communities, neighbors and the company;
    • identify, prevent and minimize potential impacts caused by operations in these communities and neighbors;
    • reduce risks associated with possible problems in the community that could affect operations;
    • address questions and concerns regarding operational aspects and the company as a whole;
    • identify local initiatives, skills and potential that can generate joint actions

     

    Highlights and achievements throughout 2019:

    • review, adequacy, standardization and operationalization of the procedure in all company units.

     

    Consolidation of project results – 2019

    Change view:

    • wdt_ID Number of dialogues conducted Number of community participants involved Rate of operational demands received that were addressed (%)¹ Effectiveness rate of mitigation actions²
      1 2,940 9,118 98.5 2.4

    1. Average for the units in the States of Espírito Santo (100.0%), Bahia (99.0%), São Paulo (100.0%) and Mato Grosso do Sul (95.0%).
    2. Average for the units in the States of Espírito Santo (2.7), Bahia (3.0), São Paulo (2.8) and Mato Grosso do Sul (3.0). The procedures for assessing the fulfillment of operational demands and the effectiveness of mitigation actions at the unit in the State of Maranhão were structured and implemented in a test phase during 2019. These indicators will be monitored starting in 2020.

    Additional information:

    The maximum scale for the effectiveness index of mitigation actions is 3.

  • Operations and suppliers at significant risk for incidents of child labor and forced and/or compulsory labor

    Context:

    Suzano has a social and environmental responsibility term that addresses exploitation of child labor and forced or compulsory labor, with the objective of guiding all employees and partners on compliance with the guidelines in our Code of Conduct, which repudiates situations of this nature. Therefore, 100% of the suppliers hired by Suzano must agree to the Terms of Commitment and Legal and Social and Environmental Responsibility Standards adopted by the company and, consequently, to what is stated in the document in this regard.

    In addition, our forest management and its operations follow standards established by the FSC® (Forest Stewardship Council®)¹ and PEFC/CERFLOR (Brazilian Forest Certification Program) certifications, which assess the social conditions of workers in our operations, as well as compliance with legislation related to this topic. Concerning the purchase of wood, suppliers are assessed and monitored in order to identify significant risks regarding the use of slave or child labor, which, if confirmed, makes negotiation impossible.

    In addition, a due diligence system is applied to carry out risk assessments of wood suppliers on the subject, so that the company meets the requirements established by the certifications. Thus, for these assessments, we rely on an internal methodology that includes, among other factors, conducting interviews and providing documentary evidence regarding the legality of the hiring and of the working conditions of the professionals involved in the activities.

    In 2019, we did not identify situations of significant risk of child, forced and/or compulsory labor in Suzano’s or in our suppliers’ operations.

    1. Forest management certificates FSC-C110130, FSC-C118283, FSC-C100704, FSC-C009927, and FSC-C155943; and chain of custody certificate FSC-C010014.
  • Operations and suppliers in which the right to freedom of association and collective bargaining may be at risk

    Context:

    Suzano’s Code of Conduct, in the Transparency ethical pillar, addresses how our relationships are conducted in a clear, objective and legitimate way. We are confident about the company’s conduct in promoting an open, loyal and meaningful dialogue with entities representing the employers and workers, based on the principles of freedom of association and respect for the plurality of ideas.

    Also, 100% of the suppliers hired by the Procurement area agree with the Terms of Commitment and Legal and Social and Environmental Responsibility Standards adopted by Suzano, which does not condone situations of this nature.

    In 2019, we did not identify in the operations of the company or of our suppliers any situation in which the right to exercise freedom of association and collective bargaining could have been violated or at risk.

  • Operations with significant potential impacts or actual negative impacts on local communities

    Related Material Themes:

    Context:

    As an essential part of its relationship management process and enforcing the principle that “it is only good for us if it is good for the world,” Suzano monitors the negative social impacts – potential and actual – resulting from its activities in the communities around its operations, and analyzes and implements the most appropriate mitigation measures for each case. The relevance of impacts is defined by applying the Social Impacts Matrix, which weighs factors such as severity, frequency, likelihood and scope of the impacts identified. This weighting is followed by a qualitative analysis and validation of the level of significance of the social impact conducted by the Local Risc of each unit.

     

    The impacts classified as “moderate” or “substantial” are considered significant and are subject to controls such as: documentation of operational criteria; distinct operating procedures; parameters for treatment of suppliers; specific planning, training and awareness requirements; and maintenance of machinery, equipment and/or infrastructure.

     

    The following are the significant negative impacts mapped by State/unit.

     

    São Paulo

    Actual impacts:

    • alteration of the landscape (visual) and loss of reference;
    • change in the productive agenda of the municipalities – change in local production;
    • increased risk of accidents (people and animals);
    • compromised capacity and quality of the road network;
    • isolation of properties and communities;
    • change in the local land structure;
    • nuisance caused by dust;
    • nuisance caused by noise;
    • land appreciation.

     

    Potential impacts:

    • compromised food security;
    • conflict with customary-traditional uses of forest resources (timber and non-timber) in preservation and conservation areas;
    • economic damage caused by product spill-over in neighboring areas;
    • damage to public and private property;
    • disruption in the way of life of local communities;
    • disrespect for non-predatory habits and customs;
    • nuisance caused by product spill-over in neighboring areas;
    • nuisance due to contamination of water bodies;
    • inconveniences caused by reduced traffic quality;
    • interference in communication systems.

     

    Mato Grosso do Sul

    Actual impacts:

    • compromised food security;
    • damage to public and private property;
    • disruption in the way of life of local communities;
    • disrespect for non-predatory habits and customs;
    • nuisance caused by product spill-over in neighboring areas;
    • interference in communication systems.

     

    Potential impacts:

    • compromised food security;
    • damage to public and private property;
    • disruption in the way of life of local communities;
    • disrespect for non-predatory habits and customs;
    • nuisance caused by product spill-over in neighboring areas;
    • interference in communication systems.

     

    Espírito Santo

    Actual impacts:

    • alteration of the landscape (visual) and loss of reference;
    • change in the productive agenda of the municipalities – change in local production;
    • increased risk of accidents (people and animals);
    • compromised capacity and quality of the road network;
    • isolation of properties and communities;
    • change in the local land structure;
    • nuisance caused by dust;
    • nuisance caused by noise;
    • land appreciation.

     

    Potential impacts:

    • compromised food security;
    • damage to public and private property;
    • disruption in the way of life of local communities;
    • disrespect for non-predatory habits and customs;
    • nuisance caused by product spill-over in neighboring areas;
    • interference in communication systems.

     

    Bahia

    Actual impacts:

    • alteration of the landscape (visual) and loss of reference;
    • change in the productive agenda of the municipalities – change in local production;
    • increased risk of accidents (people and animals);
    • compromised capacity and quality of the road network;
    • isolation of properties and communities;
    • change in the local land structure;
    • nuisance caused by dust;
    • nuisance caused by noise;
    • land appreciation.

     

    Potential impacts:

    • compromised food security;
    • damage to public and private property;
    • disruption in the way of life of local communities;
    • disrespect for non-predatory habits and customs;
    • nuisance caused by product spill-over in neighboring areas;
    • interference in communication systems.

     

    Maranhão

    Actual impacts:

    • alteration of the landscape (visual) and loss of reference;
    • change in the productive agenda of the municipalities – change in local production;
    • increased risk of accidents (people and animals);
    • compromised capacity of the road network;
    • unemployment of families living in the properties acquired;
    • nuisance caused by excessive lighting (night harvest);
    • nuisance caused by dust;
    • nuisance caused by noise;
    • isolation of properties and communities;
    • change in the local land structure;
    • reduction of income generation;
    • land appreciation.

     

    Potential impacts:

    • compromised food security;
    • conflict with customary-traditional uses of forest resources (timber and non-timber) in preservation and conservation areas;
    • economic damage caused by product spill-over in neighboring areas;
    • damage to public and private property;
    • disruption in the way of life of local communities;
    • disrespect for non-predatory habits and customs;
    • nuisance caused by product spill-over in neighboring areas;
    • nuisance due to contamination of water bodies;
    • inconveniences caused by reduced traffic quality;
    • interference in communication systems.
  • Percentage of certified areas

    Related Material Themes:

    Change view:

    • wdt_ID Total area, certified area and percentage of certified areas - 2019 Total area¹ (ha) Certified area (ha) Percentage
      1 FSC®2 and PEFC/CERFLOR 1,875,701.00 1.636.031,35 87

    1. Only Suzano’s operating areas were considered (excluding those under investment fund management, intended for development and not for supplying mills).

    2. Forest management certificates: FSC-C110130, FSC-C118283, FSC-C100704, FSC-C009927, and FSC-C155943; and chain of custody certificate FSC-C010014.

  • Percentage of certified wood, by type of certification

    Related Material Themes:

    Change view:

    • wdt_ID Percentage of certified recycled wood and/or fiber, by type of certification Own wood and/or fiber Third party wood and/or fiber
      1 FSC®1 88 33
      2 PEFC/CERFLOR 86 11

    1. Chain of custody certificate FSC-C010014.

    Additional information:

    Wood from areas managed by Suzano, in general, is produced according to the sustainable forest management model garanteed by the company, and most of the volume produced has dual certification: FSC® (Forest Stewardship Council®)¹ and  PEFC/CERFLOR (Brazilian Forest Certification Program). Most of the wood from third parties is not certified, and when it has some type of certificate, a larger portion of the volume refers to FSC certification. In any case, the legality of this wood is assessed according to specific procedure and according to the FSC and PEFC/CERFLOR standards for the evaluation of controlled wood.

  • Percentage of operations with implemented local community engagement, impact assessments, and/or local development programs, by State/unit and type of initiative

    Related Material Themes:

    Change view:

    • wdt_ID Type of initiative São Paulo Mato Grosso do Sul Espírito Santo Bahia Maranhão Total
      1 Social impact assessments, including gender impact assessments, based on participatory processes; 100 100 100 100 100 100
      2 Environmental impact assessments and ongoing monitoring 100 100 100 100 100 100
      3 Public disclosure of results of environmental and social impact assessments 100 100 100 100 100 100
      4 Local community development programs based on local communities’ needs 100 100 100 100 100 100
      5 Stakeholder engagement plans based on stakeholder mapping 100 100 100 100 100 100
      6 Broad based local community consultation committees and processes that include vulnerable groups 100 100 100 100 100 100
      7 Works councils, occupational health and safety committees and other worker representation bodies to deal with impacts 100 100 100 100 100 100
      8 Formal local community grievance processes 100 100 100 100 100 100
  • Percentage of products certified externally by agencies, broken down by type of certification

    Related Material Themes:

    Change view:

    • wdt_ID Percentage of products certified externally by agencies, broken down by type of certification - 2019 Paper Pulp
      1 FSC®1 100 68
      2 PEFC/CERFLOR 1 5

    1. Chain of custody certificate FSC-C010014.

    Additional information:

    The pulp we sell, for the most part, has some type of certificate, most of which is certified by the FSC®1 .

  • Percentage of products with traceable origin

    Related Material Themes:

    Change view:

    • wdt_ID Indicador 2019
      1 Percentage of products with traceable origin 100,00

     

  • Percentage of products with traceable origin of raw materials

    Related Material Themes:

    Change view:

    • wdt_ID Indicador 2019
      1 Percentage of products with traceable origin of raw materials 100,00
  • Percentage of revenue from GMO products or products containing GMO ingredients

    Related Material Themes:

    Change view:

    • wdt_ID Indicator 2019
      1 Percentage of revenue from GMO products or products containing GMO ingredients 0

    Additional information:

    FuturaGene’s activities only involve research on genetic improvement and increased productivity, not the marketing of products.

  • Percentage of supply traceable to plant/operation level, per unit

    Related Material Themes:

    Change view:

    • wdt_ID Percentage of supply traceable to plant/operation level 2019
      1 Mato Grosso do Sul 100
      2 São Paulo 100
      3 Bahia and Minas Gerais 100
      4 Maranhão 100
      5 Espírito Santo 100
      6 Total 100
  • Percentage of wood from supplying factories/operations traceable to the level of forest management unit, per unit

    Related Material Themes:

    Change view:

    • wdt_ID Percentage of wood/fiber from supplying factories/operations traceable to the level of forest management unit 2019
      1 Mato Grosso do Sul 100
      2 São Paulo 100
      3 Bahia and Minas Gerais 100
      4 Maranhão 100
      5 Espírito Santo 100
      6 Total 100
  • Percentage of wood suppliers evaluated and/or hired in accordance with company requirements, per unit

    Related Material Themes:

    Change view:

    • wdt_ID Percentage of wood suppliers evaluated and/or hired in accordance with company requirements 2019
      1 Mato Grosso do Sul 100
      2 São Paulo 100
      3 Bahia and Minas Gerais 100
      4 Maranhão 100
      5 Espírito Santo 100
      6 Total 100
  • Processes for nominating and selecting the highest governance body and its committees

    Related Material Themes:

    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.

  • Relationship with quilombola communities

    Related Material Themes:

    Context:

    Suzano’s relationship with quilombola communities is more intense in the States of Espírito Santo and Bahia. Of the remaining 36 quilombola locations registered in our Community Prioritization Matrix, 31 are concentrated in the North of the State of Espírito Santo. The Rural Land Development Program (PDRT) is in place in 21 of the 36 locations and is the company’s main relationship program with these traditional communities.

    In addition, in some of these communities, we have beekeepers who are benefited by the Colmeias Program and, in Espírito Santo, the communities of São Domingos and Roda d’Água received technical and financial support for the establishment of their service cooperatives. In São Domingos, since 2014 we have had a team of 21 people providing services for Suzano in commercial forests and forest restoration operations.

    In the community of Linharinho, also in Espírito Santo, one of our educational programs is developed with a focus on sports, the Linharinho Soccer School, benefiting 60 children and adolescents.

    In addition to these programs and projects, since 2016 Suzano has been a partner of Virada Cultural Quilombola (Quilombola Cultural Agenda) of São Mateus, an initiative that involves communities throughout the State, organized by the Association of Rural Producers of the quilombola community of Divino Espírito Santo. The main objectives of this event are: to disseminate quilombola culture; to create space for meetings between quilombola community leaders on common agendas with the various public bodies; to open spaces for quilombola cultural events (jongo, ticumbi, reis de boi, etc.); to enable cultural exchange with other traditional local groups; to carry out activities focused on engaging young people in the structuring issues of quilombos; to promote the quilombola cooking.

     

    Highlights and achievements throughout 2019:

    • fourth edition of Virada Cultural Quilombola (Quilombola Cultural Agenda);
    • approval of R$ 600,000 in institutional sales projects in quilombola communities (PNAE/PAA);
    • approval of project with the government of the State of Espírito Santo (public notice/Funsaf) by the community of Roda d’Água, the first quilombola community in the state to have a project approved in this public notice;
    • completion of two administrative headquarters and a community flour mill in quilombola associations benefited by the PDRT;
    • inclusion in the Colmeias Program of 11 quilombola beekeepers from the community of Rio do Sul (Bahia state).

     

    Challenge:

    • strengthen the relationship with the State and National Quilombo Coordination via the Land Management Project.

     

    Expectation:

    • formalization of partnership with the National Coordination (Conaq) by December 2020.
  • Resources obtained through reimbursable financing, in R$

    Related Material Themes:

    Change view:

    • wdt_ID Indicator 2019
      1 Company funds obtained through reimbursable financing, in R$ R$ 9,355,999.57

    Additional information:

    Resources obtained through reimbursable financing is equivalent to 12.5% of Suzano’s total social and environmental investment.

  • Satisfaction rate in handling complaints

    Related Material Themes:

    Change view:

    • wdt_ID Indicator São Paulo Mato Grosso do Sul Espírito Santo Bahia¹ Maranhão¹ Total²
      1 Satisfaction rate in handling complaints 2,8 2,7 2,9 n/a n/a 2,8

    1. The procedures for assessing satisfaction in handling complaints at the units in the states of Bahia and Maranhão were structured and implemented in a test phase during 2019. This indicator will be monitored starting in 2020.

    2. Average for the units in the states of Espírito Santo, Mato Grosso do Sul and São Paulo.

    Additional information:

    The maximum scale for the satisfaction rate in handling complaints is 3.

  • Security personnel trained in human rights policies or procedures

    Related Material Themes:

    Change view:

    • wdt_ID Indicator 2019
      1 Percentage of security personnel who have received formal training in the organization’s human rights policies or specific procedures and their application to security. 60

    1. Employees of third-party organizations are included in the disclosure.

  • Social investments by source, in %

    Related Material Themes:

    Change view:

    • wdt_ID Social investments by source 2019 (%)
      1 Funds raised 35.0
      2 Company funds 65.0
      3 Total 100.0
  • Social investments by source, in R$

    Related Material Themes:

    Change view:

    • wdt_ID Social investments by source, in R$ 2019
      1 Funds raised 26,248,481.28
      2 Company funds 48,672,099.07
      3 Total 74,920,580.35
  • Social investments by type, in R$

    Related Material Themes:

    Change view:

    • wdt_ID Social investments by type, in R$ 2019
      1 Social investment projects 73,011,208.70
      2 Donations 1,909,371.65
      3 Total 74,920,580.35
  • Total wood stolen

    Related Material Themes:

    Change view:

    • wdt_ID Total wood stolen, in m³ São Paulo Mato Grosso do Sul Espírito Santo Bahia Maranhão Total
      1 2019 637 0 11,089 6,250 4 17,980
  • Training about anti-corruption policies and procedures, by employment category

    Related Material Themes:

    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.

  • Worker participation, consultation, and communication on occupational health and safety

    Related Material Themes:

    Context:

    Suzano’s operational units have structured safety committees, divided into smaller subcommittees, which participate in discussions, analyses and implementations related to health and safety and actions carried out by the Internal Accident Prevention Commission (CIPA). The responsibilities of the committees include: active participation in meetings, setting goals and objectives, and addressing matters at strategic level (Management Committee), at operational level (Cell Committee) and at specific level (Technical or Theme Committee). Committee meetings take place according to a predefined schedule in the units.

    We also have in place the Segurança na Área (Safety in the Area) Program, a tool that, based on practical experience, seeks to disseminate moral principles and proper conduct among employees with regard to occupational safety, thus promoting a safer work environment for all. Additionally, we have a corporate Portal that provides safety data per unit for consultation, and send internal communications via intranet and emails related to this topic.

    Also, aiming at the continuous improvement of working conditions in the sector, we have formal agreements with unions, with specific approaches for each region where we operate.