Sustainability Management

  • Defining report content and topic Boundaries

    Related Material Themes:

    Context:

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

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

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

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

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

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

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

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

     

    1. Value Chain

    Explanation of the materiality of the topic

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

    Associated macro-topics

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

    Internal topic boundaries

    • Directly impacts our operations

    External boundaries

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

     

    2. Social Development

    Explanation of the materiality of the topic

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

    Associated macro-topics

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

    Internal topic boundaries

    • Impacts, directly or indirectly, all company operations

    External boundaries

    • Impacts communities around our operations

     

    3. Ethics, Governance and Transparency

    Explanation of the materiality of the topic

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

    Associated macro-topics

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

    Internal topic boundaries

    • Impacts all company employees and operations

    External boundaries

    • Directly affects all audiences with which we interact

     

    4. Climate Change

    Explanation of the materiality of the topic

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

    Associated macro-topics

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

    Internal topic boundaries

    • Impacts our forestry, industrial and logistics operations

    External boundaries

    • Impacts the whole society

     

    5. Water

    Explanation of the materiality of the topic

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

    Associated macro-topics

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

    Internal topic boundaries

    • Applies to all our forestry and industrial operations

    External boundaries

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

     

    6. Innovation and Technology

    Explanation of the materiality of the topic

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

    Associated macro-topics

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

    Internal topic boundaries

    • Applies to all of our production units and operations

    External boundaries

    • Impacts, directly or indirectly, the entire society

     

    7. Operational Excellence and Eco-efficiency

    Explanation of the materiality of the topic

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

    Associated macro-topics

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

    Internal topic boundaries

    • Impacts our forestry, industrial and logistics operations

    External boundaries

    • Indirectly impacts the entire society

     

    8. Forest Management

    Explanation of the materiality of the topic

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

    Associated macro-topics

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

    Internal topic boundaries

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

    External boundaries

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

     

    9. Financial Management

    Explanation of the materiality of the topic

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

    Associated macro-topics

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

    Internal topic boundaries

    • Directly impacts our operations

    External boundaries

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

     

    10. Human Capital

    Explanation of the materiality of the topic

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

    Associated macro-topics

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

    Internal topic boundaries

    • Directly involves all our employees

    External boundaries

    • Directly impacts our suppliers and service providers

     

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

  • Development and impact of investments in infrastructure and services offered

    Related Material Themes:

    Change view:

    • wdt_ID Project/activity¹ State/unit Cost of each investment (R$)² Current or expected impacts on local communities and economies, including positive and negative impacts when important Perceived impact with supported infrastructure investments and services
      1 Decent Schools in Maranhão - construction of four schools and libraries Maranhão 2,905,384.99 Improving the quality of education in the rural area of the State of Maranhão Benefit to families in rural communities where previously there was no adequate educational infrastructure
      2 Imperatriz sanitary landfill - support to the development of EIS/EIR Maranhão 216,570.00 Construction of the solid waste sanitary landfill in the municipality of Imperatriz (Maranhão state) Conservation of the environment, planning for public waste collection and minimizing the risks of contaminating the soil and groundwater
      3 Sponsorship for the renovation of the postgraduate building (Master of Laws) of the Federal University of Maranhão (UFMA) Maranhão 60,000.00 Adaptation of the academic space for the continuity of UFMA's graduate classes Promotion of teaching, research and extension of public university
      4 Support for renovating the building of the headquarters of the 3rd Company of the 9th Police Battalion, based in the village of Bela Vista, in the municipality of São Miguel do Tocantins Tocantins 50,000.00 Improvement of public security services in the State of Tocantins Adequate and decent spaces for civil servants and for serving the population
      5 Investments in public road improvements Bahia 1,375,713.12 Improvement in the quality of the road network and reduction in the risk of accidents Improvement in the conditions of the road network and increased traffic safety
      6 Investments in public road improvements Espírito Santo 61,208.45 Improvement in the quality of the road network and reduction in the risk of accidents Improvement in the conditions of the road network and increased traffic safety
      7 Maintenance and opening of Boca da Barra – Barra do Riacho Espírito Santo 315,917.97 Maintenance of the access way to the sea for artisanal fishermen's boats Maintenance of fishing activities by artisanal fishermen in the community, ensuring income generation
      8 Support to various requests from communities related to infrastructure (improvement of access ways; construction and improvements in facilities) Espírito Santo 74,915.23 Improvement in the quality of the road network and of community equipment Improvement in the conditions of people and of the local community in terms of accessibility and structure
      9 Support for the retaining wall work of the breakwater - Putiri Beach – Aracruz Espírito Santo 1,572.10 Improvement in the conditions of people and of the local community in terms of accessibility and structure Improvement in the conditions of people and of the local community in terms of accessibility and structure
      10 Investments in public road improvements Mato Grosso do Sul 46,800.00 Improvement in the quality of the road network and reduction in the risk of accidents Improvement in the conditions of the road network and increased traffic safety

    1. All investments had been completed by December 31, 2019, with the exception of the support for the renovation of the police headquarters building in São Miguel do Tocantins.
    2. All investments were made in cash, except for:
    – Support for the retaining wall work of the breakwater in Aracruz – donation of eucalyptus logs;
    – Support for several requests from communities related to the improvement of access ways and public roads in São Paulo – donation of eucalyptus logs, asphalt mixture and rocks;
    – Support for the improvements at the headquarters of the Municipal Police of Americana (São Paulo state) – donation of eucalyptus logs

  • Management of private social investment

    Related Material Themes:

    Context:

    Suzano’s various types of social and environmental investments and donations are managed so that its results can be measured and evaluated in terms of contributing to the sustainability of the company’s business. Management of this topic is guided by our Internal Social and Environmental Investment and Donations Policy, the Social Demand Management Procedure, the Social and Environmental Investment Project Management Procedure and by the Relationship Management Guide. The Guide and procedures describe the processes and the main relationship tools used with stakeholders at Suzano.

    The company’s Social Development area monitors and evaluates the entire process related to the demands for cooperation, donation and sponsorship, periodically reporting the results of this monitoring to Corporate and Local Risc (units). 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 registration, evaluation, approval and budget monitoring of all social and environmental investment projects are carried out by the Social and Environmental Investment Management module of Sispart, Suzano’s internal corporate system for managing the relationship with stakeholders and social and environmental investment. The progress of the projects is monitored and evaluated by the technical assistance partners and consultants in the responsible area, through technical visits, meetings, training and field days with the associations and participants of the projects, according to the schedules established in the Action Plans.

    The execution of the Action Plan for each project is monitored with evidence such as photos, reports, attendance lists and monitoring of indicators. Updating the activities performed is the responsibility of the entire team of technical assistants and consultants involved and is centralized in the Smartsheet system, a collaborative platform used by Suzano to build and provide tools to manage social and environmental investment projects.

    Field activities, working groups, technical visits and others, carried out by the responsible teams, are recorded in an activity report sent monthly to Suzano’s Social Development area. These monthly reports are filed in Sispart.

    The evaluation of the efficiency and effectiveness of the relationship strategies and of the social and environmental investments adopted, as well as the use of the material, human and financial resources available, is carried out through the Social Monitoring and Evaluation System. The system serves for formulation and reformulation of organizational and strategic operation practices (progress of processes and achievement of goals) and for the analysis and comparison of indicators over time (focus on the result and impact of the intervention). The results of the investments are evaluated at least once a year by means of indicators classified into three categories:

     

    • Process Indicator: intended to evaluate the progress of the execution of the physical-financial planning;
    • Result Indicator: aims to present the status in achieving the goals established annually;
    • Impact Indicator: presents the internal and external effects related to the corporate drivers established.

     

  • Number of people on the Sustainability Department team

    Related Material Themes:

    Change view:

    • wdt_ID Indicator 2019¹
      1 Number of people on the Sustainability Department team 117

    1. It includes 77 company employees, 15 interns, 3 contractors and 22 professionals from the Ecofuturo Institute.

  • 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.

  • 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 %

    Related Material Themes:

    Change view:

    • wdt_ID Social investments by type 2019 (%)
      1 Social investment projects 97,5
      2 Donations 2,5
      3 Total 100,0
  • 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