Ethics, Governance and Transparency

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

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  • Anti-corruption management

    Context:

    Suzano’s anti-corruption management is based on three pillars: prevention, detection, and remediation. Through our Compliance Program (based on best market practices), we have the commitment to constantly disseminating this topic across the company and raising awareness of all employees and contractors about the importance of corporate integrity, while ensuring that all actions related to the management of this topic are supported by senior management. We have a team that is fully dedicated to matters of Compliance, with their own resources to ensure that the company’s objectives in relation to this topic are achieved. We also have an external whistleblowing channel, with mechanisms for making complaints and reports available to anyone who suspects or knows of anything that is not in line with our policies or guidelines.

    Our policy guidelines and internal procedures that deal with the topic are: Code of Conduct; Anti-corruption Policy; Policy on Social and Environmental Investments and donations; Manual on Relationship with Public Agents, among other documents that are relevant to our management. Therefore, our work on the topic of anti-corruption is based primarily on the provisions on this topic set out in our Code of Conduct and in our Anti-Corruption Policy. 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 across the company. Thus, we assess and prioritize risks according to their probability of occurrence (remote, possible, likely, and very likely) and their impact (minor, moderate, major and extreme). For risks defined as priorities, at least one action plan must be established.

    In addition, the company’s Policy on social and environmental investments and donations must be followed by all employees. The document establishes the flow that must be followed and the approval levels for donations, as well as the need to enter the request in the system, whose specific flow must contain an opinion from the Compliance team.

    All communications regarding Compliance are sent to 100% of employees, including leaders and managers. Furthermore, anti-corruption training is available on the company’s internal training platform, UniverSuzano, and is mandatory for all employees, providing information on the policy and guidelines that must be followed within the company in relation to this topic. Training is mandatory for all new employees – who must complete the course within 30 days after joining the company. It is renewed every 2 years, when the employee must take a refresher course. Also, as a complement to anti-corruption dissemination, we also provide specific and customized Compliance training to the various audiences identified as sensitive for the company, i.e., those who are at higher risk of involvement with corruption.

  • Area of forestland in indigenous land

    SASB Dimension

    Change view:

    • wdt_ID Area of forestland in indigenous land, in hectares (ha) 2019 2020
      1 Owned area 0.00 0.00
      2 Leased area 0.00 0.00
      3 Managed area 0.00 0.00
      4 Total 0.00 0.00

    Additional information:

    Suzano does not have areas of forestland located in areas that are considered indigenous land.

  • Chair of the highest governance body

    Stakeholder Capitalism Metrics Dimension (WEF)

    Context:

    The Chairman of the Board of Directors is not a member of the Company’s Executive Board. In addition, all members of the Fiscal Council are independent. The Board of Directors is chaired by a member of the controlling group. However, the Chairman does not hold an executive position in the organization.

  • Compliance Management

    Context:

    At Suzano, we have a team fully dedicated to Compliance as an integrated part of the company’s Risk Management. This area operates directly under the first line of defense concept through standards of ethics and conduct that are discussed and disseminated throughout the various business areas. The purpose is to enable the identification and mitigation of possible risks of non-compliance in the various activities performed in the company.

    The topic of Compliance is also covered at Suzano, mainly by the company’s Code of Conduct and Anti-Corruption Policy. Therefore, in order to further disseminate this topic to our employees, we send communications and provide e-learning materials on Compliance in order to reach 100% of this audience. After that, the company’s Compliance team periodically monitors the completion of the training sessions and reports the results to Internal Audit, which can also be submitted to the Statutory Audit Committee and, consequently, to the Board of Directors.

    In 2019, we reported that, in 2020, we would hold the Compliance Week, an entire week dedicated to reflections and clear information about Compliance to increase the organization’s knowledge of the topic and its application to Suzano’s various spheres of governance. However, the event had to be postponed to 2021 due to the difficulties imposed by the COVID-19 pandemic and the changes in route resulting therefrom.

  • Composition of the highest governance body and its committees and type of board

    Stakeholder Capitalism Metrics Dimension (WEF)

    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, consisting of five to ten members, elected by the General Meeting, which, among them, appoints the President and up to two Vice Presidents. The term of office of the Board of Directors is unified, with a two-year term, and the possibility for reelection.

    At least 20% of the members of the Board of Directors must be Independent Board Members, as defined in the Novo Mercado Regulation, and expressly registered as such in the minutes of the General Meeting that elects them, and the board member(s) elected under the provisions of paragraphs 4 and 5 of article 141 of Law 6,404/76 (Brazilian Corporation Law) are also considered independent.

    In 2020, the Board of Directors had 10 members, seven of whom were independent board members, with the following composition:

     

    • Ana Paula Pessoa (Board Member)
    • Rodrigo Calvo Galindo (Board Member)
    • Claudio Thomaz Lobo Sonder (Vice President)
    • Daniel Feffer (Vice President)
    • David Feffer (President)
    • Paulo Rogerio Caffarelli (Board Member)
    • Maria Priscila Rodini Vansetti Machado (Board Member)
    • Nildemar Secches (Board Member)
    • Rodrigo Kede de Freitas Lima (Board Member)
    • Helio Lima Magalhães (Board Member)

     

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

     

    • Ana Paula Pessoa: partner, investor and Chairwoman of the Board of Directors of Kunumi AI, a 100% Brazilian artificial intelligence company, with values and objectives that guide her investment choices. She is a member of the global board of Credit Suisse, in Zurich, of News Corporation, in New York, and of the Vinci Group, in Paris. She is passionate about improving diversity in companies and understanding how technology and social changes impact corporate cultures. Its volunteering activities focus on education initiatives and environmental concerns to ensure sustainable growth. She is also a member of the Global Board (GAC) of Stanford University, in California, of the Advisory Board of The Nature Conservancy Brasil, of the Audit Committee of Fundação Roberto Marinho and of the Instituto Atlantico de Gobierno, in Madrid. At Suzano, Ana Paula Pessoa also serves as Coordinator of the Statutory Audit Committee (CAE – Comitê de Auditoria Estatutário).

     

    • Claudio Thomaz Lobo Sonder: (i) since 2010, as Vice-Chief Executive officer and, since 2018, as chairman of the board of Suzano Holding S.A., the parent company of Suzano; (ii) since 2002, as a member of the Company’s Board of Directors (serving as Vice Chairman since 2013); he is a member of the company’s Management and Finance Committee, of the People Committee and of the Compensation Committee; (iii) since 2018, as Chairman of the Board of Directors; since 2010, as Vice-Chief Executive officer of IPLF Holding S.A., a company controlled by the controlling shareholders of Suzano Holding whose core business is holding interests in other companies; (iv) since 2010, he has been a member of the Board of Directors and of the Superior Council of the Ecofuturo Institute – Future for Sustainable Development; (v) since 2010, as a board member of MDS, SGPS, S.A. (as of March 2018, as chairman of the board), a company incorporated under Portuguese law whose core business is holding interests in other companies; (vi) since April 2015, as an executive officer at Premesa S.A., a subsidiary of the Company whose core business is developing real estate projects, where he is responsible for the company’s management and strategic planning; (vii) since 2011, he has been a member of the Board of Trustees; since 2013, he has been a member of the Executive Board; (viii) since 20118, as a president of the Executive Board of the Arymax Foundation, an association whose core activity is to promote, support and develop activities related to social interests.

     

    • Daniel Feffer: (i) President of ICC Brasil; (ii) Vice Chairman of the Board of Directors and member of the company’s Sustainability Committee; (iii) President of the Board of Curators of the Arymax Foundation, whose core activity is defending social rights; (iv) Chairman of the Board of Directors and Vice Chairman of the Superior Council of the Ecofuturo Institute – Future for Sustainable Development, whose core activity is defending social rights; (v) Chairman of the Board of Brazilian Tree Industry (IBÁ); (vi) Member of the Board of the Industrial Development Studies Institute (IEDI); (vii) Founding member of the board of Compromisso Todos Pela Educação (All for Education Commitment); (viii) Member of Fiesp’s Strategic Board; (ix) Member of the Board of the Competitive Brazil Movement (MBC); (x) Executive member of the Board of ICC Global; (xi) president of the Intelligent Tech & Trade Initiative (ITTI).

     

    • David Feffer: (i) At Suzano, he is 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 of the People Committee; (ii) Chief Executive Officer of Suzano Holding S.A., a publicly traded company whose core business is holding interests in other companies; (iii) member of the Board of Directors and Chief Executive Officer of Polpar S.A., a publicly traded company whose core business is holding interests in other companies; (iv) Chief Executive Officer of IPLF Holding S.A., closely held company whose core business is holding interests in other companies; (v) Chief Executive Officer of Premesa S.A., a subsidiary of Suzano Holding S.A. whose main activity is developing real estate projects. He also is a member of various social and cultural institutions, which include the following capacities: Chairman of the Board of the ALEF-Peretz School; member of the Advisory Board of Associação Beneficiente Israelita Brasileira Hospital Albert Einstein; Vice Chairman of the Board and Chairman of the Superior Council of the Ecofuturo Institute – Future for Sustainable Development; and Coordinator of the Arymax Foundation’s Executive Board Nominating Committee.

     

    • Maria Priscila Rodini Vansetti Machado: (i) member of the company’s Board of Directors, of the Strategy and Innovation Committee and of the Sustainability Committee; (ii) member of the Boards of Directors of the International Center in Indianapolis, Indiana (The International Center), and of the Board of Directors of the Inter-American Dialogue, in Washington, D.C.

     

    • Nildemar Secches: (i) member of the Board of Directors, of the Strategy and Innovation Committee, of the Management and Finance Committee, of the Eligibility Committee, and Coordinator of the company’s People Committee; (ii) Vice Chairman of the Board of Directors of WEG S/A, a publicly traded company that manufactures, produces and markets industrial systems, machinery and equipment; (iii) Vice Chairman of the Board of Directors of Iochpe-Maxion S.A., a publicly traded company that manufactures and distributes engines, agriculture machinery and equipment and components for the steel, rail and automotive industries; and (iv) member of the Board of Directors of Ultrapar Participações S.A., a publicly traded company that invests capital in the retail, industrial, agricultural and services sectors.

     

    • Rodrigo Kede de Freitas Lima: (i) member of the Board of Directors, of the 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 Board of the Dom Cabral Foundation (FDC). Until 2017, he was Chairman of the Board of Directors of the Brazilian Institute of Finance Executives (IBEF) and of the American Chamber of Commerce (AmCham).

     

    • Rodrigo Calvo Galindo: Chief Executive Officer of COGNA EDUCAÇÃO S.A. since January 1, 2011. He has been managing educational institutions for over 28 years. He was CEO of Kroton Educacional, Chief Operating Officer and Managing Director of Higher Education at Kroton Educacional, CEO of Grupo Educacional IUNI, Administrative Dean at the University of Cuiabá, and responsible for the management, accreditation and implementation of higher education institutions in the states of Bahia, Mato Grosso, Amapá, Acre, and Rondônia. Rodrigo Calvo Galindo is currently a member of the Board of Directors of Cogna, Burger King Brasil, Clínica SIM, and Endeavor and was a member of the Board of Directors of Arezzo.

     

    • Paulo Rogerio Caffarelli: Graduated with a degree in Law from PUC/Curitiba, with specialization in Foreign Trade (FAE/CDE Curitiba) and Law in International Trade (IBEJ Curitiba); he has an MBA in Corporate Law and Finance (FGV/RJ) and a master’s degree in Business Management and Economics (University of Brasilia). He has been President of Cielo S.A. since November 2018. He joined Banco do Brasil in 1995, and was Vice President of Wholesale, International Business, Private Banking and Capital Markets (BB BI) from 2011 to 2014. He served as President from May 2016 to October 2018. He was Executive Secretary at the Ministry of Finance from February 2014 to February 2015 and worked at Companhia Siderúrgica Nacional as Executive Corporate Director. In the last 5 years, he served, for a certain period of time, on the Board of Directors of the following companies: Banco do Brasil S.A.; Brasilprev; Elo Participações S.A.; Banco Votorantim; CBSS Visavale (Alelo); Vale; Brasilcap Capitalização, and Banco Votorantim; he was also a member of the Advisory Board of FEBRABAN – Brazilian Federation of Banks. He is currently a member of the Board of Directors of Cateno Gestão de Contas de Contas S.A.

     

    • Helio Lima Magalhães: Graduated with a degree in Electrical Engineering and Computer Science from The George Washington University (Washington DC/US) and has a postgraduate degree in Computer Science from Pontifícia Universidade Católica of Rio de Janeiro. He is currently Chairman of the Independent Board of Directors of Banco do Brasil S.A., appointed by the Ministry of Economy since June 2019, independent member of the Board of Directors of Companhia Melhoramentos de São Paulo since May 2019, member of the Board of Directors of UBS BB Investment Banking since October 2020, and member and former President (from 2012 to 2017) of the Board of Directors of the American Chamber of Commerce – AMCHAM Brasil (São Paulo). He served as President of Citibank Brasil (São Paulo) from 2012 to 2017. He was also (i) member of the Board of Directors of Cia Metropolitana Eletropaulo from 2018 to 2019, (ii) member of the Board of Directors of IRB RE Brasil from 2017 to 2018, (iii) member of the Board of Directors of Fundo Garantidor de Créditos from 2018 to 2019, (iv) member of the Board of Directors of the Brazilian Federation of Banks (FEBRABAN) from 2012 to 2017, (v) member of the Board of Directors and member of the Executive Committee of Brazil US Business Council (Washington/US) from 2012 to 2017; (vi) Chairman of the Board of Directors of Elavon do Brasil (Means of Payment Company) from 2014 to 2016.

     

    The duties of the Board of Directors related to economic, environmental, and social impacts include:

     

    • set the general guidelines for social business, always respecting the ethical values adopted by the community where it operates and, especially, the respect for human rights and the environment;
    • approve the long-term global strategy to be followed by the company and its controlled companies, as well as the strategy to be proposed for the affiliated companies;
    • decide on the institution of an advisory board to advise the members of the Board of Directors, establishing the positions, remuneration, and rules for the operation of that body.

     

    The Board of Directors is supported by the Fiscal Council, whose main objective is to inspect the actions of the administration; by the Executive Board, responsible for addressing the company’s strategic topics company; and by five other advisory committees. All committees rely on the participation of external members, providing a differentiated approach to the discussions. Learn about the committees:

     

    Strategy and Innovation Committee

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

    In 2020, the Strategy and Innovation Committee had the following composition: Rodrigo Kede de Freitas Lima, Artur Noemio Grynbaum, Juliana Rozenbaum Munemori, Nildemar Secches, David Feffer, Maria Priscila Rodini Vansetti Machado, Rodrigo Calvo Galindo, Fabio Coelho, and Marcelo Strufaldi Castelli (Coordinator).

    The Strategy and Innovation Committee is responsible for:

     

    • advising the company’s Board of Directors in analyzing initiatives related to technological research and innovation in the forest, industrial, and management areas, in relation to new products and processes;
    • advising the Board of Directors in fulfilling its responsibilities regarding long-term strategy and planning;
    • making recommendations to the Board of Directors and monitoring the implementation of policies, strategies, and actions related to research and innovation within the company;
    • evaluating the company’s investment proposals from an innovation standpoint and make possible recommendations to the Board of Directors.

     

    Sustainability Committee

    Assists Suzano in thinking strategically about the future, including discussions about global and latent topics and to what extent we can contribute to transforming certain scenarios, such as climate change.

    In 2020, the Sustainability Committee had the following composition: 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 sustainability dimension in the company’s strategic positioning, as well as on the risks, opportunities, and measures associated with social and environmental issues that could have a relevant impact on the business in the short-, medium- and long terms;
    • advising the Board of Directors in disseminating the strategic concept of sustainability, seeking to achieve globally accepted standards as a reference of excellence;
    • analyzing and making recommendations on long-term sustainability goals, assessing their respective performance on an annual basis.
    • periodically analyzing the strategies, actions, and projects associated with the company’s sustainability, assessing their effectiveness in relation to the positioning and goals;
    • periodically evaluating 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

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

    In 2020, 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.

    The duties of the Management and Finance Committee include 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 developing corporate policies, when necessary;
    • monitor the company results, seeking to ensure adherence to the goals established in the Strategic Planning, Business Plan, and Budget;
    • ensure the preparation and development of specific corporate policies for the financial area.

     

    People Committee

    By evaluating the organizational structure and the development models, compensation, succession, and career practices, the People Committee seeks to connect the employees’ profile to the company’s long-term strategies and goals.

    In 2020, the People Committee had the following composition: 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 the human resources policies, structures, and practices proposed by the Executive Board, in light of the best practices adopted by national and foreign companies, as well as the strategies and the opportunities and risks to which the company is exposed;
    • discussing the remuneration strategy, including the salary and benefits policy, regular and extraordinary short- and long-term remuneration, for the Company’s Directors and Board members;
    • analyzing and issuing an opinion on salary adjustment proposals and on the Executive Directors’ variable pay targets;
    • analyzing and issuing an opinion, for the Board’s decision, on special conditions for hiring and dismissing Executive Directors;
    • permanently analyzing and contributing to the professional evaluation and improvement processes of the company’s Directors and Board members;
    • continuously monitoring and contributing to plans for the retention and succession of the company’s Directors;
    • recommending actions that foster the desired organizational culture for performance, in line with the company’s mission, vision, and values, and focused on building sustainable results;
    • advising the Board of Directors in the identification, selection, monitoring, performance evaluation, and succession of the company’s Chief Executive Officer.

     

    Statutory Audit Committee

    The purpose of this committee is to ensure strict internal controls and good administrative practices in the company, as set forth in the bylaws.

  • Confirmed cases of corruption and actions taken

    Change view:

    • wdt_ID Cases of corruption 2019¹ 2020
      1 Total number of confirmed cases of corruption 29 15
      2 Total number of confirmed cases in which employees were dismissed or received disciplinary action for corruption 22 10
      3 Total number of confirmed incidents in which contracts with business partners were terminated or not renewed due to violations related to corruption 3 3

    1. The 2019 data were revised because of the inclusion of the reports that were still being investigated in the period.

    Additional information:

    Suzano did not record any cases of public corruption in 2020, and the 15 reports received are related to private corruption, involving the following topics: misappropriation, conflict of interest, manipulation of information, bribery, and information leakage. We also inform that none of the cases deemed well-founded had any material impact on the company’s financial statements or information.

  • Defining report content and topic Boundaries

    Context:

    The Annual Report 2020 contains Suzano’s main financial, social, environmental, and governance results, as well as the company’s obstacles, challenges, and learning experiences during this complex year for the world. It was prepared following the Global Reporting Initiative GRI Standards: Core option, the reporting methodology adopted since our first annual report. The company is also inspired by the principles of the International Integrated Reporting Council (IIRC), which promotes the communication of value generation, with a focus and conciseness, as well as a balance between the positive and negative aspects of the report. The document is also organized following the Sustainable Development Goals (SDG)—17 global goals established by the United Nations (UN) in 2015.

    The content of the report was defined considering the most relevant topics for the business and our stakeholders, in line with the commitments assumed by Suzano until 2030. Constantly evolving, our report looks to reflect the way the company impacts and is impacted by its initiatives and by its relationship with the various stakeholders. Increasingly, companies are recognized for values that go far beyond financial aspects. A reflection on this can be found in Section 3 of this document. In a letter signed by the Executive Directors responsible for the Sustainability and Finance and Investor Relations areas, we show how Suzano is positioned—and how it has been working strategically for many years—in relation to the concept of stakeholder value and sustainability issues, which are becoming increasingly important.

    Based on this assumption and inspired by our purpose — renewing life inspired by trees— we understand that, more than showing our activities and performance in 2020, we need to show our transformation capacity within the business environment of which we are a part. We want to lead the development of solutions to build a more fair and sustainable society and, to this end, we discuss these issues in the sections according to their relevance and the impacts generated for a specific audience: employee, customer, supplier, investor, government, and civil society and community. Topics that affect more than one stakeholder are dealt cross-sectionally and may appear in more than one section from the perspective of the audience in question. Resources such as links and “learn more” are used to guide reading, facilitating an integrated approach to the information. The material topics and SDGs are highlighted throughout the text and are also related to the topics of each section.

    Suzano’s materiality is the result of navigating relevant topics for the business from the standpoint of our stakeholders. These topics were identified in 2019, during an extensive active listening process involving all of our stakeholders. The result of this work guided the development of our sustainability strategy and the structure of this report.

    GRI information is related to the respective content throughout the sections and organized in our Indicators Center, a digital platform in which data are disclosed in accordance with their relation to material topics, SDGs, GRI disclosures, recommendations of the Task Force on Climate-Related Financial Disclosure (TCFD), and new this year, in accordance with the disclosure standards of the Sustainability Accounting Standards Board (SASB) and recommendations of the World Economic Forum (WEF). Some of the information provided on the platform also meets some of the main ESG indexes and ratings, such as Sustainalytics, MSCI Index, Dow Jones Sustainability Index (DJSI), Corporate Sustainability Index (ISE), and Carbon Disclosure Project (CDP).

    In this version, available in a microsite and in pdf for download, we also present an infographic containing our value generation model, which summarizes the main information from 2020 in an informative and convenient format.

    The content of this publication was submitted for analysis by external readers, invited by the company to express impartial opinions on the quality and transparency of the information. The document was also independently assured by Bureau Veritas.

    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

     

    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 restoration
    • 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.

  • Definition of purpose

    Stakeholder Capitalism Metrics Dimension (WEF)

    Context:

    Purpose. Strong and meaningful word. Having a purpose is knowing what moves and inspires us, what drives us and gives us courage to achieve the unimaginable. Knowing our purpose is knowing our role in the world. Suzano understands that the company’s purpose guides its operations and legacy and that an authentic purpose is not created or invented, but rather revealed, because it is an inherent part of a person or organization.

    The work to reveal the company’s purpose began in 2019, when around 3,500 people were consulted, including employees and external audiences, through surveys, interviews and workshops. All this resulted in reaching an authentic, true purpose that was presented to employees in December 2020 at an online gathering that also celebrated the achievements of this challenging year.

    Our purpose is: “Renewing life inspired by trees.” The company believes that, from trees, it is possible to create a more sustainable future for the planet, since they are part of the solution to some of the challenges of today’s world, such as climate change, shortage of natural resources, loss of biodiversity, and increasing social inequality.

    Suzano is convinced that it has a duty to empower this movement to renew the world. And its purpose is its reason for being, which connects the company to today’s society and to the world we will leave to the next generations

    The company expects its employees, partners, suppliers, customers, and all audiences to know that everything that we do has a greater purpose and involves much more than just the success of the business. Together with its purpose, Suzano launched its new corporate tagline, “Suzano: we plant the future,” which reinforces this history of commitment and is already being used in any and all types of communication.

    The purpose is also materialized in all company’s products, projects, and actions, and corroborated by the Long-Term Goals.

    The purpose was officially disclosed to employees in December 2020. In a Reputation survey (conducted in the 2nd half of 2020), we asked the internal audience a question about Suzano’s contribution to renewing society and the world. The rate was quite high: 95%, indicating that the purpose was on the right track.

    At the end of 2020 and the beginning of 2021, we conducted an internal online employee survey, with 2,153 responses, and the company’s purpose was very well evaluated: 96% of the respondents identified with the company’s purpose and feel inspired by it. Furthermore, 96% agree that the purpose translates the essence of the company’s contribution to the world, and 94% agree that the purpose is already in practice.

    The plan for 2021 is to reinforce the message as part of the organization’s culture, as the central axis of Suzano’s Essence, ensuring that everyone lives this purpose through

    1. a communication and engagement plan with employees on this topic, and
    2. a plan to train leaders and influencers in the organization that includes our purpose as one of the central topics.

    At the end of 2021, the survey will again be conducted online and will include questions about engagement and living the purpose.

  • Governance, control and management of fiscal risk

    Context:

    The Tax Conduct is complemented with Suzano’s Risk Management Standards, which include the definitions of various tax-related roles and responsibilities. The Company’s fiscal strategies are monitored by the Board of Directors and by the Statutory Audit Committee as and when applicable. Any changes to the Tax Conduct Policy must be approved by the Company’s CFO.

    Suzano’s business principles, as well as those of its subsidiaries and affiliates, are based on the duty to strictly comply with the current tax and regulatory laws, always in line with the strategies defined by the Company’s administration, ensuring the calculation and payment of the taxes due in every jurisdiction where the company operates. The company’s tax conduct follows the highest standards of integrity and ethics, with all employees who work in the tax area following the content of this document as a guiding principle in performing their activities.

    As a premise, the company adopts the transparency and reliability of tax information, which can be accessed in the reports regularly published by the company. In order to demonstrate the transparency of its operations, Suzano undertakes to submit to the Tax and Fiscal Authorities all the information related to the applicable tax treatment, through the ancillary obligations required by the applicable legislation.

  • Grievances/demands received and addressed by the Ombudsman Channel

    Change view:

    • wdt_ID Grievances/demands received and addressed by the Ombudsman Channel 2019¹ 2020
      1 Total number of grievances/demands identified 671 912
      2 Number of grievances/demands addressed 671 912
      3 Number of grievances/demands resolved 631 870
      4 Number of grievances/demands pending 40 42
      5 Number of grievances/demands filed prior to the reporting period that were resolved during the reporting period 63 40

    1. The 2019 data were revised because of two reports received from 2018 from the former Fibria that were entered in 2019 for investigation and treatment.

    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 912 complaints received by the Ombudsman Channel, after due analysis and investigation by the eligible professionals, 459 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 our external ombudsman channel, and whistleblowers receive their answers through their tracking number issued when the complaint is registered.

    The Ethics and Ombudsman area works with complaints from 3 main groups: fraud, behavioral deviations, and third-party management.

    Fraud reports are handled by a specialized team of investigators in the internal audit area. Issues such as fraud, deviations, conflict of interest, misuse of resources, receipt of bribes, forgery, leakage of information, and others are addressed by this group.

    Behavioral deviations, which address moral, sexual, discrimination, and inappropriate behavior, are handled by the People Management team. According to the ombudsman’s indicators, 912 reports were filed in 2020, of which approximately 56% were considered well-founded and 459 disciplinary measures were taken.

    The Third-Party Management Area monitors and makes periodic inspections to verify the check-list and has a partnership with the occupational safety area to check specific aspects. The company currently has approximately 14,000 employees and 17,000 contractors. The area is responsible for assessing labor issues, health and safety, local conditions, payments, charges, among other topics.

    The area also has an external ombudsman company that provides a telephone, email, and a website in three languages for the Reporting Channel, available 24/7. The Channel is open to all employees and interested parties, and reports of any nature can be filed anonymously. All reports are investigated and, after analysis, a feedback is sent to the whistleblower containing the status of the report. The channel is constantly communicated through Suzano’s internal channels and on third-party bulletin boards.

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

    Change view:

    • wdt_ID Grievances/demands received and addressed by the Ombudsman Channel, by type 2019¹ 2020
      1 Inappropriate manager behavior 176 151
      2 Fraud 97 36
      3 Inappropriate coworker behavior 70 126
      4 Labor issues 66 46
      5 Non-payment 55 111
      6 Inappropriate treatment of and service to the service provider 54 135
      7 Physical conditions of the workplace 25 26
      8 Remuneration 25 8
      9 Selection/hiring/termination process 23 49
      10 Other 21 37

    1. The 2019 data were revised because of two reports received from 2018 from the former Fibria that were entered in 2019 for investigation and treatment.

    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 912 complaints received by the Ombudsman Channel, after due analysis and investigation by the eligible professionals, 459 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 reports are answered by our external ombudsman channel, and whistleblowers receive their answers through their tracking number issued when the complaint is registered.

    The Ethics and Ombudsman area works with complaints from 3 main groups: fraud, behavioral deviations, and third-party management.

    Fraud reports are handled by a specialized team of investigators in the internal audit area. Issues such as fraud, deviations, conflict of interest, misuse of resources, receipt of bribes, forgery, leakage of information, and others are addressed by this group.

    Behavioral deviations, which address moral, sexual, discrimination, and inappropriate behavior, are handled by the People Management team. According to the ombudsman’s indicators, 912 reports were filed in 2020, of which approximately 56% were considered well-founded and 459 disciplinary measures were taken.

    The Third-Party Management Area monitors and makes periodic inspections to verify the check-list and has a partnership with the occupational safety area to check specific aspects. The company currently has approximately 14,000 employees and 17,000 contractors. The area is responsible for assessing labor issues, health and safety, local conditions, payments, charges, among other topics.

    The area also has an external ombudsman company that provides a telephone, email, and a website in three languages for the Reporting Channel, available 24/7. The Channel is open to all employees and interested parties, and reports of any nature can be filed anonymously. All reports are investigated and, after analysis, a feedback is sent to the whistleblower containing the status of the report. The channel is constantly communicated through Suzano’s internal channels and on third-party staff.

  • Human Rights Management

    SASB Dimension

    Context:

    Human Rights management at Suzano is based on the Corporate Human Rights Policy, which expresses the company’s commitment to this topic. The company is a signatory to the International Bill of Human Rights, to the International Labor Organization’s (ILO) Declaration on Fundamental Principles and Rights at Work, and to the United Nations’ Global Compact.

    We also have:

     

    • A Corporate Policy on Management of Health, Safety and Quality of Life – health, safety, and quality of life are values and guidelines in our operations, and we combine our commitment to the development of safe work environments with management and leadership practices.
    • Code of Conduct – the code of conduct aims to commit Suzano’s stakeholders to the ethical principles that guide our business conduct and to disseminate them to our relationship networking.
    • Legal and Social and Environmental Responsibility Term – deals with the commitment to the global trend of providing workers with proper conditions in the work environment, as well as actions and practices that favor the preservation of the environment, observing and complying with conditions related to: labor and social security obligations, prohibition of child labor, and legal conditions for hiring young people, prohibition of forced or compulsory labor, health, safety and quality of life, working hours, freedom of association and collective bargaining rights, non-discrimination, diversity and inclusion, anti-corruption, environment, and other topics related to legal and social and environmental responsibility.
    • Policy on Diversity and Inclusion – We promote diversity and inclusion through actions focused on increasing representation, respect for individuality and free expression.

     

    When it comes to suppliers, we intend to implement within 4 years the Suzano Responsible Supplier Management (RSM) Program, which has a pillar focused on human rights that addresses working conditions, data privacy, health and safety.

    For wood suppliers, 100% of the supply areas are monitored based on environmental, social, and legal requirements. Part of these areas are certified under the FSC® (Forest Stewardship Council®)¹ and/or PEFC/Cerflor (Brazilian Forest Certification Program) standards and are evaluated by the certifying body, according to the Forest Management standards.

    For the non-certified areas, Suzano has established and applies the due diligence system, based on the Controlled Wood Standard (FSC-STD-40-005) and the National Risk Assessment for Brazil (FSC-NRA-BR V1-0), ensuring:

     

    • compliance with applicable legislation;
    • respect for the right to property, possession, and use of land;
    • that the high conservation value areas are not compromised;
    • that no native areas are converted into commercial timber plantations;
    • respect for human rights, the rights of indigenous peoples and traditional communities.

     

    Suzano also evaluates health and safety aspects, following the Fundamental Principles of the International Labor Organization (ILO). These principles are observed in the contracted area, beginning with the formalization of the contract, covering the wood harvesting and transportation operations, and considering that proper planting is a prerequisite under the contract.

    External and internal audits are conducted annually to check the criteria set out in the FSC-STD-40-005 standard. The audits assess documents confirming compliance with the standard specified and with the legal documents, and conduct on-site visits to check whether the standard is being adopted in the field.

     

    Relationship with stakeholders and communities

    Suzano’s relationship strategy seeks to ensure the social legitimacy of its business by strengthening the interaction with the neighboring communities and other stakeholders over the long term and by integrating their interests in conducting and managing the forestry business.

    Through dialogue and structured engagement processes, we interact with these audiences and build relationship networks that enable us to understand and incorporate social and environmental information and demands into our corporate decision making process. In this way, we can guarantee the recognition of and respect for the rights, social, and cultural values of indigenous peoples, traditional and local communities, and the people involved in forest management operations.

    Suzano has a structured process in place for receiving, recording, evaluating, responding to, and monitoring all stakeholder reports related to the company’s activities and products, whether for grievances, questions, compliments, suggestions, or opinions. Some contact channels are the company’s Call Center, toll-free number 0800 022 1727, and Suzano Responde, by email suzanoresponde@suzano.com.br.

    Suzano also has an external and independent Ombudsman Channel available for the company’s internal and external stakeholders. This channel is used to report, among other matters, violations of ethics, human rights, and of the laws and regulations to which the company is subject. Unethical behavior or behavior incompatible with current legislation, as well as matters 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. To learn more, access the indicator “Mechanisms for advice and concerns about ethics”).

    Specifically in the case of suppliers, in 2020, we implemented the Supplier Relations Portal, a space where third parties can access the Ombudsman’s channel and report deviations.

    Stakeholder management is conducted by SISPART, a corporate system for recording and monitoring the incidents received by the company.

    1. License codes: Forest Management BA – FSC-C155943; Forest Management ES – FSC-C110130; Forest Management MS – FSC-C100704; Forest Management MA – FSC-C118283; Forest Management SP – FSC-C009927; Chain of Custody – Units in Brazil – FSC-C010014; Chain of Custody – Europe, America, China, and Switzerland – FSC-C012430; Chain of Custody – Distribution Center in Brazil and Argentina – FSC-C003231.

  • Investments and spending on environmental protection/conservation, in R$

    Change view:

    • wdt_ID Investments and spending on environmental protection/conservation, in R$¹ 2020
      1 Forestry operations² 18,470,630.84
      3 Industrial operations³ 385,297,375.10
      4 Total 403,768,005.94

    1. Since this indicator started to be reported in 2020, it has no track record.
    2. The calculation considered the total investments in biodiversity monitoring and conservation as well as in water monitoring, ecological restoration, and waste treatment and disposal.
    3. The calculation considers the total investment in CAPEX of the industrial units and part of the investment in OPEX. This includes environmental monitoring, studies, audits and environmental licensing, solid waste management, water and liquid effluent treatment, among others, as well as expenses for recurring and non-recurring maintenance in each industrial unit.

    Additional information:

    The indicator is composed of investments from and expenditures of Suzano’s Forest Environment and Industrial Environment areas. These teams work, mainly, to ensure the preservation of the environment in which we operate, reducing and mitigating the negative impacts and enhancing, whenever possible, the positive impacts of our forestry and industrial operations, respectively. This does not mean that other areas of the company do not work directly or indirectly with this topic.

  • Investments and spending on environmental protection/conservation, in USD

    Change view:

    • wdt_ID Total Investments and spending on environmental protection/conservation (USD)¹ 2020
      1 Forestry operations² 3,589,597.10
      3 Industrial operations³ 74,878,998.58
      4 Total 78,468,595.68

    1. Since this indicator started to be reported in 2020, it has no track record. In 2020, the dollar amounts (USD) were converted based on the average exchange rate on 12/31/2019 (R$5.1456).
    2. The calculation considered the total investments in biodiversity monitoring and conservation as well as in water monitoring, ecological restoration, and waste treatment and disposal.
    3. The calculation considers the total investment in CAPEX of the industrial units and part of the investment in OPEX. This includes environmental monitoring, studies, audits and environmental licensing, solid waste management, water and liquid effluent treatment, among others, as well as expenses for recurring and non-recurring maintenance in each industrial unit.

    Additional information:

    The indicator is composed of investments from and expenditures of Suzano’s Forest Environment and Industrial Environment areas. These teams work, mainly, to ensure the preservation of the environment in which we operate, reducing and mitigating the negative impacts and enhancing, whenever possible, the positive impacts of our forestry and industrial operations, respectively. This does not mean that other areas of the company do not work directly or indirectly with this topic.

  • Investments and spending on waste treatment and disposal, in R$

    Change view:

    • wdt_ID Investments and spending on waste treatment and disposal, in R$¹ 2020
      1 Forestry operations 8,339,521.17
      3 Industrial operations 104,480,286.87
      4 Total 112,819,808.04

    1. Since this indicator started to be reported in 2020, it has no track record. The numbers include expenses with treatment and disposal of waste generated both in our forestry and industrial operations. These costs were not amortized by the revenues generated from the sale of some of the waste.

  • Investments and spending on waste treatment and disposal, in USD

    Change view:

    • wdt_ID Investments and spending on waste treatment and disposal, in USD1¹ 2020
      1 Forestry operations 1,620,709.18
      3 Industrial operations 20,304,782.12
      4 Total 21,925,491.30

    1. Since this indicator started to be reported in 2020, it has no track record. The numbers include expenses with treatment and disposal of waste generated both in our forestry and industrial operations. These costs were not amortized by the revenues generated from the sale of some of the waste. The dollar amounts (USD) were converted based on the average exchange rate on 12/31/2019 (R$5.1456).

  • Key impacts, risks, and opportunities

    Context:

    Suzano has an Integrated Risk Management Policy in place (a document that is available to the public on the Investor Relations website). The Company’s Integrated Risk Management is conducted by the Risk Management area in conjunction with the other business areas. Its purpose is to identify, analyze, prioritize, treat, monitor, and report the main risks associated with the company’s business, in line with the corporate strategy, thus enabling the perpetuity and continuity of our operations.

    The Risk Management area performs the Enterprise Risk Management (ERM) process, in which it identifies the company’s main risks through workshops and interviews with key executives. The risks are then consolidated in a matrix and presented to all Directors, CEO, and Board of Directors in order to define the priorities. At least one action plan is open for each of these. The action plans for priority risks are monitored and measured through critical analyses. The status of the action plan is reported to the Executive Board, the Statutory Audit Committee, and the Board of Directors. It is important to point out that the risk management process is continuous, and the matrix may be subject to changes in the level of risk assessment, whenever changes occur in the internal and external conditions related to the business. Throughout 2020, the Risk Management area updated the risk matrix with input from more than 170 company executives and redefined the priority risks together with the Executive Board, the Statutory Audit Committee, and the Board of Directors.

    The risk management process is extended to all units through the Regional Risk and Business Continuity Commissions. These Commissions are responsible for mapping, analyzing, treating, and monitoring the risks for each unit. These Commissions are composed of strategic members from each site to identify the risks applicable to their reality and define action plans and business continuity plans (intended to prepare the company if a priority risk materializes).

    In addition, a Corporate Commission was formed and is responsible for mapping, analyzing, assessing, treating and tracking corporate risks, as well as for monitoring the information on those risks identified by the Regional Commissions The Corporate Commission is formed by Suzano’s Executive Board. In 2020, more than 300 employees from the Units were trained in topics related to risk and crisis management.

    The Integrated Risk Management process is subjected to certification and customer audits, and the results obtained are taken into consideration for the awarding of bonuses to the employees involved.

    Some of the identified risks include:

    Market

    The pulp market is cyclical and follows the global price trend, which is dictated by the supply and demand for pulp, the global capacity to produce market pulp, and the conditions for economic growth. The price can also be affected by the exchange rate variation of the currencies of the main pulp producing and consuming countries, changes in stocks held by producers and buyers, given the expectation of future prices, and by strategies adopted by producers that may eventually place more competitive products on the market.

    On the other hand, paper prices are more stable than prices in the pulp market, and are determined by supply and demand conditions in the markets where they are sold. Also, the price of paper can vary due to a number of factors outside of our control, including fluctuating pulp prices and specific characteristics in the market where we operate. We cannot guarantee that pulp prices will remain at current levels, but the proper management of our mills 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 aforementioned points, strategies are identified, evaluated, implemented, and financial instruments are contracted to protect against the risks. In order to manage the impacts on results during adverse scenarios, the company has processes in place for monitoring exposures and policies for the implementation of risk management. These 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 impacts of commodity price fluctuations, and (iv) change debt indexes.

    Operations

    The Company is subject to operational risks and emerging risks that could lead to partial or temporary shutdown of its activities. These shutdowns can be caused by factors associated with equipment failure, accidents, fires, weather, exposure to natural disasters, cyber attacks, pandemics, and others. These events could result in serious damage to our property, significant decrease in production, increase in production costs, and even bodily or fatal injuries to our employees or contractors, as well as adverse effects on our financial and operating results. Furthermore, our business depends on the continuous availability of logistics and transportation networks, such as roads, railroads, terminals, and ports, which may be blocked by factors outside of our control, such as social movements, natural disasters, or shutdowns. Interruptions in supplying inputs to our industrial and forestry units or in delivering our finished products to customers. All of this can affect our financial and operating results.

    Climatic factors

    Climate change, as in cases of an increase in average temperature or water shortage, can lead to significant losses in forest productivity and impact the continuity of industrial operations. For this reason, Suzano is involved in different initiatives to reduce and mitigate climate-related risks, such as

    • Actions to reduce greenhouse gas emissions: projects to increase efficiency in the use of fossil fuels (when its use is required); reduction of the average radius (distance between forest operations and mills), procedures and specific action plans in case of fires, among other actions
    • Climate change adaptation initiatives: specific studies of the individual characteristics 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 aimed at the production of clones and seedlings that are more resistant to climate variations and extreme climate events; and development of contingency plans for more critical scenarios (such as possible water shortage in the river basins where we operate).

    Management of risks and social impacts

    Following the Procedure for Identification and Evaluation of Social Aspects and Impacts, Suzano’s social impact management model seeks to eliminate, reduce or offset the negative impacts it generates by adopting management practices, making social and environmental investments, and performing 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. The approval of the analyses is obtained from the managers of the processes involved, and the final validation comes from the Local RISC – the forum responsible for analyzing and monitoring the relationship processes with stakeholders in the region.

    In order to identify and analyze the social aspects and impacts, we consider relevant stakeholder demands coming from the SISPART software, whose data source is the Engagement and Operational Dialogue, among others. Annually, the Local RISC evaluates the need to revise the social impact matrix, considering the results of the monitoring and critical analysis of the processes related to the Annual Stakeholder Relations Plan and the stakeholder demands identified by SISPART.

  • Management of anti-competitive behavior

    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 could 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, we created a plan to implement a more detailed management approach to competition in the company, to be implemented in 2020. Due to the pandemic, Suzano’s Antitrust Policy should be approved in 2021.

  • Management of conflicts of interest

    Context:

    The Board of Directors, Suzano’s highest governance body, determines in its Internal Regulations (own, formal, and public instrument) the procedure to be followed in the company in the event of conflicts of interest. According to this instrument, one of the requirements for the election of Board members is the absence of conflict situations..

    Information on situations involving conflicts of interest (such as cross-board membership, holding multiple positions, and having controlling shareholders) is disclosed to stakeholders on a regular basis in Suzano’s public documents, such as the Reference Form and the 20-F Report, available on the Investor Relations website: (as determined by the laws and regulations applicable to the company and under the terms and extent provided for in each of these documents). In this sense, see the specific notes for each of the following items:

     

    • cross-board membership in other management bodies (participation in other boards, holding multiple management and board positions, etc.): cross-board membership in Suzano’s management bodies and even the existence of marital relationship, common-law marriage, or kinship up to the second degree related to Suzano’s managers, its subsidiaries and controllers are disclosed through sections 12.5 and further in the Company’s Reference Form;
    • relevant cross-shareholdings with suppliers and other stakeholders: any relevant cross-shareholdings 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 the company’s related parties, i.e., in order for this characterization to exist – and consequently for the relevant transactions to be disclosed in this section – any relevant cross-shareholdings must be reported;
    • existence of a controlling shareholder and/or shareholders’ agreement: information on the existence of a controlling shareholder (control) and a shareholders’ agreement involving Suzano or related to Suzano is disclosed through section 15 (and its subsections) of the Reference Form and in Item 7 – Major Shareholders and Related Party Transactions of the company’s 20-F Report;
    • Related party disclosures: Information on transactions with related parties 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 throughout the company, we have controls and specific policies in place that address the topic in question. They are:

     

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

     

    Suzano is also a member of the Business Pact for Integrity and against Corruption, with the objective of eradicating corruption cases (including incidents of bribery) throughout the company, and thus helping to promote a more ethical and upright 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 Programme (UNDP), United Nations Office on Drugs and Crime (UNODC), and the Brazilian Global Compact Committee.

    Additional information:

    See below the provisions of the aforementioned Internal Regulations on the topic of conflict of interests.

    “3.1.1. The members of the Company’s Board of Directors must meet the following requirements:
    (…)
    (ii) absence of conflicts of interest with the Company;”

    “4.1. For the purposes of the heading of this clause:
    (…)
    (iii) members of the Board of Directors who have conflict of interest with the Company (“Conflict of Interest” or “Conflict of Interests”), as provided in Clause 20 below, as well as those who have been elected by appointment of a competitor of the Company, shall be considered disqualified.

    “5. Except in the event of Conflict of Interest, as provided 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 may receive information that is not available to the 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. Board Members are not allowed to intervene in corporate transactions in which their interests conflict with those of the company, nor in the decisions made by the other administrators, as per the provisions of Clause 22 below. Board Members must state that they have a Conflict of Interest when they consider that any decision by the Board on a matter that is on the agenda to be voted on could result in their own benefit or that of others, with or without prejudice to the Company.

    21. Board Members who feel they have a Conflict of Interest with the Company must declare their impediment at the Board meeting or notify the Chairman of the Board, who must be made aware of their impediment, and record the nature and extent of their interest in the minutes of the Board meeting.

    22. Board Members in situations of Conflict of Interest, after declaring their impediment, may not participate in the discussion, nor vote on the matter in which they have Conflict of Interest, and must withdraw from the meeting room when the Board is to discuss such matter.”

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

    25. Regardless of the notification referred to in Clause 21, should the Chairman identify a situation that could constitute a Conflict of Interest of any given Board Member with respect to any matter to be discussed by the Board, the Chairman shall notify such Board Member, so that he or she may, within the period assigned to him or her, express his or her opinion on the matter, pursuant to the provisions of Clauses 21 and 24.”

  • Management on the Code of Conduct

    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 responsibility for managing our business involves many people, we want 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 networking. 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 bonded 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 topics 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.

    To this end, we have policies in place that support the entire process: Ombudsman Policy – POL.00.00006, which aims to establish the process and governance guidelines on the performance of the Area and of the Ombudsman Channel about compliance with applicable legal and regulatory provisions, as well as with regulations and internal codes, including the provision of specific procedures for protecting the whistleblower and the confidentiality of information. This policy covers all Suzano’s board members, directors, administrators, managers, shareholders, employees, outsourced employees, suppliers, customers, related persons or entities and stakeholders; Code of Conduct – MAN.00.00002, which aims to commit board members, directors, administrators, managers, shareholders, employees, outsourced employees, suppliers, customers, people or entities with whom we have a relationship, and stakeholders of Suzano S.A. and its subsidiaries and affiliates, to the ethical principles that guide our business conduct, and to disseminate them to our relationship networking, and we are committed to transparency, equity, accountability and corporate responsibility, while ensuring human rights within the scope of our operations; Policy for Disciplinary Measures – POL.00.00029, which provides the guidelines and defines the principles, concepts, and criteria for enforcing disciplinary measures on Suzano employees, and the Conduct Management Committee Rules – MAN.00.00001, which is a consultative document, serving as a guide for how the area works, obligations, duties, and decisions.

    The goals of the Ethics and Ombudsman area are based on disseminating the Code of Conduct and online training on this topic to all employees, in addition to monthly communication about the code and its developments.

  • Mechanisms for advice and concerns about ethics

    Stakeholder Capitalism Metrics Dimension (WEF)

    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 performance 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 the 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 solve unanticipated ethical dilemmas and ensuring uniformity in the criteria used in 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. Anonymity is also guaranteed to the whistleblower when requested, and no form of retaliation against him/her will be allowed or tolerated.

    Every two years new mandatory online training sessions on the Code of Conduct are held for our employees and every month we disclose topics related to the company’s ethical pillars and the Ombudsman Channel. For the external audience, the Ombudsman Channel and Code of Conduct are available through an exclusive icon on the company’s website for filing reports (www.suzano.com.br -> Ombudsman). Receipt and control of the reports are available 24/7 via the Internet, and can be accessed through any computer, tablet, or cellphone (with Internet), through the link.

    In 2020, a total of 912 reports were received through the Ombudsman Channel for analysis. Of these, 56% were well-founded and were properly treated through corrective actions and disciplinary measures, and there were no critical cases that could affect the company’s financial statements. To learn more, access the indicators “Grievances/demands received and addressed by the Ombudsman Channel” and “Grievances/demands received and addressed by the Ombudsman Channel, by type.”

  • Membership in associations

    Context:

    Suzano is a member of the following associations/organizations, which we consider strategic for our operations:

    ABAF/BA – Associação Baiana das Empresas de Base Florestal- ABAF (State)
    ABAF represents the state’s forest-based companies, as well as their suppliers. It also works to anticipate scenarios, exchange information about the sector, and in a collaborative effort to defend interests. Suzano is a member of the Board of Directors with one Director on the Fiscal Council.

    ABIHPEC – Associação Brasileira da Indústria de Higiene Pessoal, Perfumaria e Cosméticos (National)
    A non-profit entity whose main objective is to congregate the national industries of the sector, established in all regions of the country and of all sizes, promoting and defending their legitimate interests, with a view to the economic development they promote.

    ACB – Associação Comercial da Bahia (State)
    It is a multi-sector entity, the oldest in Brazil, which brings together businessmen to defend their interests and the improvement of society.

    ACE Mucuri – Associação Comercial e Empresarial de Mucuri (Municipal)
    Business association for promoting and advocating for the interests of business owners, retailers, and hotel owners in Mucuri (BA). Important relationship because of the impact of General Shutdown actions – mainly involving the hospitality industry. They also feature as support for organized civil society in defending the interests of the business sector in the region. Suzano is a member of the Communication Department.

    ACE – Associação Comercial e Empresarial de Teixeira de Freitas (Municipal)
    Business association for promoting and advocating for the interests of business owners in Teixeira de Freitas (BA). Interaction with the sector, one of the most benefited by the company’s activity in the region. They also feature as support for organized civil society in defending the interests of the business sector in the region.

    ACII – Associação Comercial e Industrial de Imperatriz (Municipal)
    A representative entity of the Industry and Trade in Imperatriz (MA) with the purpose of advocating for the common interests of the industry and trade in the city of Imperatriz. Suzano is a member of the ACII Board of Directors.

    ACITLS – Associação Comercial e Industrial de Três Lagoas (Municipal)
    This entity represents the interests of the local business class, through actions that strengthen business associations, fostering economic development in the municipality of Três Lagoas (MS).

    ACM – Associação Comercial do Maranhão (Municipal)
    Institution that supports the trade class of Maranhão, with the purpose of advocating for the common interests of the business owners of the city of São Luís (MA).

    ADEL – Associação para o Desenvolvimento de Linhares e Região (Regional)
    Business association for the promotion and defense of business interests in the municipalities of Linhares, Sooretama, and Rio Bananal (ES). Important support in the actions for the defense of the sector and forestry operations in the municipalities where it operates. Suzano is a member of the Operational Council and the purpose of the association is one of representation.

    AEB – Associação de Comércio Exterior do Brasil (National)
    A private, non-profit entity, which congregates and represents the export and import business segment of goods and services, and related and similar activities.

    AMCHAM – American Chamber of Commerce for Brazil (National/International):
    An association of national scope that works for a better business environment, promoting competitiveness and innovation for a connecting community composed of 80% Brazilian companies and 20% North American and from other countries. It is the largest chamber of commerce in Brazil and the largest North American chamber outside the United States.

    AMEAR – Associação Movimento Empresarial Aracruz e Região
    Business association for the promotion and defense of business interests in the municipalities of Aracruz, João Neiva, and Ibiraçu (ES). Important support in the actions for the defense of the sector and industrial and forestry operations in the municipalities where it operates. Suzano is a member in the Communication Department and in the Operational Council.

    AMIF – Associação Mineira da Indústria Florestal (State)
    The largest trade association in the forestry sector in the state of Minas Gerais, with broad institutional representation and an important player in the defense of the sector’s interests in the state of Minas Gerais.

    ASSENOR – Associação Empresarial do Litoral Norte do Espírito Santo (Regional)
    Business association for the promotion and defense of business interests in the municipalities of São Mateus, Jaguaré, Conceição da Barra, and Pedro Canário. Important support in the actions for the defense of the sector and industrial and forestry operations in the municipalities where it operates. Suzano is a member of the Operational and Fiscal Council.

    Associação Brasileira de Normas Técnicas (ABNT)
    ABNT plays an important role in the development of technical standards as the only national standardization forum in Brazil. We participate in committees related to topics that are relevant to our business, seeking to proactively contribute to the discussions and development of initiatives.

    CEBC- Conselho Empresarial Brasil China (National/International)
    Promotes exchange and cooperation in the economic, academic, and cultural fields between Brazil and China, and fosters the relationship between the business community, diplomatic circles, and the government of both countries.
    Participation.

    CEDAGRO- Centro de Desenvolvimento do Agronegócio (State)
    Organization that works to defend, promote, and strengthen agribusiness in Espírito Santo. Suzano is a member of the Board of Directors and Fiscal Council, with the position of vice chairman.

    CIESP – Centro das Indústrias do Estado de São Paulo (State)
    Approach for regional operations with the municipal government and public forums such as municipal councils, Conservation unit councils, etc. Suzano is a member of the Board of Directors.

    CNI – Confederação Nacional das Indústrias (National)
    Represents the industrial sector nationwide, promoting actions to improve the industry’s competitiveness and to advocate for its interests.

    Coalizão Brasil Clima, Florestas e Agricultura (Brazil Climate, Forestry, and Agriculture Coalition)
    The participants of Coalizão Brasil Clima, Florestas e Agricultura undertake to organize and operate in a multi-sector and multidisciplinary manner, remaining open to new memberships and contributions. Seek convergence and use divergence as a way to move forward and build solutions. Suzano’s CEO, Walter Schalka is a member of the Strategic Group (GE) and Executive Group (GX)

    CONJOVE – Conselho de Jovens Empresários (Municipal)
    Advocates for the common interests of industry and trade in the municipality of Imperatriz (MA) and encouraging an entrepreneurial culture among young people. Suzano is a member of Council.

    Conselho Empresarial Brasileiro para o Desenvolvimento Sustentável (CEBDS)
    It reinforces the sustainable development agenda in the companies that operate in Brazil by working together with governments and civil society, in addition to disseminating the most current concepts and practices on this topic. Suzano is a member of the Thematic Chamber (TC) for Biodiversity and Technology, TC for Energy and Climate Change, and TC Social, jointly developing projects and content, and made an additional financial contribution in 2020.

    Forest Dialogue
    This is a pioneering, independent initiative that facilitates interaction between representatives of companies in the forestry sector and environmental organizations and social movements in order to build common visions and agendas among these sectors. Suzano is a member of the platform and has a seat on the Coordination Council.

    Espírito Santo em Ação (State)
    An important entity for business liaison, with great penetration, prestige, and representativeness with the executive and legislative powers of Espírito Santo. Suzano participates in the Coordination of the Diretrizes (Guidelines) Project and in the Operational Council.

    Findes (State): Findes (National)
    Represents the industrial sector before government agents at the state level. Suzano is a member of the following Councils: Representatives Council, Legislative Affairs Council, Labor Relations Council, Environment Council, and Infrastructure Council.

    FLORESTAR (State):
    Representative entity of the sector. Promotion and development of the sector in the state. Suzano holds the Presidency of the entity.

    Forest Stewardship Council – FSC®
    Suzano is a member of the FSC® and actively participates in discussions and commissions conducted by the organization, both nationally and internationally, for the purpose of supporting initiatives geared toward sustainable forest management that encompass environmental and biodiversity protection, community resilience, and other relevant social and environmental issues.

    Fórum Florestal – BA, SP, ES
    An institution responsible for identifying and discussing relevant issues within the forest-based sector, whether sector or national, permanently promoting coordinated and joint actions, in order to strengthen the submission of proposals to the relevant authorities, both locally and nationally.

    IBÁ – Indústria Brasileira de Árvores (National)
    Its objective is to promote products originating from pine, eucalyptus, and other species planted for industrial purposes. Suzano is a member of the Deliberative Council, of the Coordination of the Biotechnology Committee and of various other committees, such as Certification, Government Relations, Climate, GHG Inventory Working Group, Biodiversity, Logistics, among others. Suzano also made additional financial contributions in 2020 to various projects of the association.

    ICC Brasil – International Chamber of Commerce Brasil (National/International)
    ICC Brazil is formed by the Brazilian members of the International Chamber of Commerce (ICC), the world’s largest business organization, focused on international trade, whose network comprises nearly 45 million companies and business associations in more than 100 countries.
    Suzano does not have a representative of its executive body on the ICC Council. However, the vice chairman of the Board of Directors of Suzano, Daniel Feffer, is chairman of the Superior Council of the ICC.

    Instituto de Pesquisas e Estudos Florestais (IPEF)
    IPEF – Instituto de Pesquisas e Estudos Florestais, created in 1968, is a non-profit association whose objective is to plan, implement, and coordinate actions and manage resources, intended for studies, analysis, and research in the area of natural resources, with emphasis on forest science.

    LIDE (National/International)
    Promotes the participation in forums and business rounds, contributing to the networking of the associated companies.

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

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

    Programme for the Endorsement of Forest Certification (PEFC)
    Suzano is a member of the PEFC and actively participates in discussions and commissions conducted by the organization, both nationally and internationally, for the purpose of supporting initiatives geared toward sustainable forest management that encompass environmental and biodiversity protection, community resilience, and other relevant social and environmental issues.

    Reflore – Associação dos Produtores de Floresta Plantada de Mato Grosso do Sul (State)
    Includes important companies in the forest production chain with headquarters or branches in Mato Grosso do Sul. Its mission is to bring together, represent, promote, and advocate for the collective interests of Associated Companies that are dedicated to Sustainable Development based on Planted Forests. Suzano holds the Vice Presidency.

    Região (Regional)
    Business association for the promotion and defense of business interests in the municipalities of Aracruz, João Neiva, and Ibiraçu (ES). Important support in the actions for the defense of the sector and industrial and forestry operations in the municipalities where it operates. Suzano is a member of the Communication Department and participates in the Operational Council.

    SIMRURAL – Sindicato Rural de Imperatriz (Municipal)
    Its purpose is to collaborate with various social spheres and to serve as a state reference in the agribusiness production segment.

    Sindipacel – Sindicato das Indústrias do Papel, Celulose, Papelão, Pasta de Madeira de Papel e Artefatos de Papel e Papelão no Estado da Bahia (State)
    Representation of the industrial sector with Government Agents at the state level. Suzano is a member of the Executive Board.

    Sinpacems – Sindicato Patronal das Indústrias de Papel e Celulose de MS (State)
    Its purpose is to promote the development and representativeness of the paper and pulp industry in the state of Mato Grosso do Sul, strengthening the sector, stimulating innovation, competitiveness, quality, and promoting sustainable development. Suzano holds the Vice Presidency.

    Sindipapel – Sindicato da Indústria de Papel e Celulose do Espírito Santo (State)
    Representation of the pulp and paper industry sector in the state of Espírito Santo.

    SustainAbility Transparency Network
    Group of global companies that believe that transparency drives performance and development. The network helps companies make an impact by offering practical tools and learning opportunities among peers and with specialists.

  • Non-compliance with environmental laws and regulations

    Change view:

    • wdt_ID Significant fines¹ and non-monetary sanctions related to environmental laws and regulations 2019 2020
      1 Monetary value of significant fines paid in the period (R$) R$ 374,683.34 R$ 77,308.00
      2 Monetary value of significant fines that is still outstanding (R$) R$ 6,009,029.94 R$ 110,440.00
      3 Total number of non-monetary sanctions 1 3
      4 Total number of cases resolved through arbitration mechanisms 0 0

    1. We consider US$ 10,000.00 to be that the minimum amount to characterize a significant fine.

    Additional information:

    The fines were imposed due to alleged non-compliance with legislation/regulations, which are under discussion by the Company. The cases involve several topics, such as conducting a polluting activity or construction work without prior authorization.

    As a practice, to prevent new occurrences, the company assesses the infractions and, if appropriate, makes the necessary adjustments.

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

    Change view:

    • wdt_ID Significant fines¹ and non-monetary sanctions related to laws and regulations in the social and economic area 2019 2020
      1 Total monetary value of significant fines paid in the period (R$) R$ 454,523.59 0
      2 Monetary value of significant fines that is still outstanding (R$) R$ 0.00 0
      3 Total number of non-monetary sanctions 0 0
      4 Total number of cases resolved through arbitration mechanisms 0 0

    1. We consider US$ 10,000.00 to be that the minimum amount to characterize a significant fine.

    Additional information:

    The company satisfactorily responded to the inspections carried out and to the notices issued by the Brazilian Labor Prosecutor’s Office, in such a way that no fines were imposed in 2020.

    In the course of 2019 we paid two fines pertaining to infraction notices 211661864 and 215049829 as a result of non-compliance with the legal quota of PwD. Filling this quota in a company with extensive forestry base and industrial activity is quite a challenge. With this in mind, Suzano has an internal movement in place focused on valuing diversity and stimulating inclusion in the company: the Plural Program, which, as one of its objectives, seeks to guarantee that the quota for PwD in the company will be completely filled in the coming periods.

  • Percentage of employees that have received training on anti-corruption policies and procedures, by employment category

    Stakeholder Capitalism Metrics Dimension (WEF)

    Change view:

    • wdt_ID Percentage of employees that have received training on anti-corruption policies and procedures, by employment category¹ 2019 2020
      1 Administration 89 96
      2 Board members 100 70
      3 Consultants 93 98
      4 Coordinators 88 97
      5 Managing Directors 75 91
      6 Specialists 89 100
      7 Directors 53 88
      8 Executive Managers 85 98
      9 Functional Managers 83 97
      10 Operational 79 84

    1. This indicator does not include employees on leave in the reporting period, employees who have been with the company for less than one month, and apprentices.

    Additional information:

    Anticorruption training is mandatory for all new employees – who must complete the course within 30 days after joining the company. It is renewed every 2 years, when the employee must take a refresher course.

    There were variations in the number of employees trained in 2020 compared with 2019, which reflect the changes in Suzano’s workforce.

  • Percentage of employees that have received training on anti-corruption policies and procedures, by region

    Stakeholder Capitalism Metrics Dimension (WEF)

    Change view:

    • wdt_ID Percentage of employees that have received training on anti-corruption policies and procedures, by region¹ 2019 2020
      1 North 85 76
      2 Northeast 76 90
      3 Midwest 69 71
      4 Southeast 91 93
      5 Abroad 65 87
      6 Total 83 88
      7 South 90 100

    1. This indicator does not include employees on leave in the reporting period, employees who have been with the company for less than one month, and apprentices.

    Additional information:

    Anticorruption training is mandatory for all new employees – who must complete the course within 30 days after joining the company. It is renewed every 2 years, when the employee must take a refresher course.

    There were variations in the number of employees trained in 2020 compared with 2019, which reflect the changes in Suzano’s workforce.

  • Percentage of employees that the anti-corruption policies and procedures have been communicated to, by employment category

    Stakeholder Capitalism Metrics Dimension (WEF)

    Change view:

    • wdt_ID Percentage of employees that the anti-corruption policies and procedures have been communicated to, by employment category¹ 2019 2020
      1 Administration 100 100
      2 Board members 100 100
      3 Consultants 100 100
      4 Coordinators 100 100
      5 Managing Directors 100 100
      6 Specialists 100 100
      7 Directors 100 100
      8 Executive Managers 100 100
      9 Functional Managers 100 100
      10 Operational 100 100

    1. This indicator does not include employees on leave in the reporting period, employees who have been with the company for less than one month, and apprentices.

    Additional information:

    All company communications regarding Compliance are sent to all employees, including leaders and managers. Furthermore, anti-corruption training is available on the company’s internal training platform, UniverSuzano, and is mandatory for all employees, providing information on the policy and guidelines that must be followed at Suzano in relation to this topic. Also, as a complement to anti-corruption dissemination, we also provide specific and customized training to the various audiences identified as sensitive for the company, i.e., those who are at higher risk of involvement with corruption.

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

     

    • Notices: Within the company, the Internal Communication area centralizes and sends the information considered relevant at corporate level 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 on the topic of Code of Conduct and Anticorruption Law, videos prepared by the same agency that conducted the construction of our training sessions were made available. 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 the 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.
    • Workplace: A communication platform launched in 2020 so that everyone at Suzano can access company news via computer or cellphone, also used to disseminate the topic of anti-corruption.
    • Chat with Leaders: Communications with specific language are sent to the leaders, encouraging them to disseminate the information received and discuss the topic with their team.
    • 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: In order to request each refund in the tool we use for this purpose, employees must state that they know and agree with the ethical principles in our Code of Conduct and with the guidelines in our Anti-Corruption Law.
  • Percentage of employees that the anti-corruption policies and procedures have been communicated to, by region

    Change view:

    • wdt_ID Percentage of employees that the anti-corruption policies and procedures have been communicated to, by region¹ 2019 2020
      1 North 100 100
      2 Northeast 100 100
      3 Midwest 100 100
      4 Southeast 100 100
      5 Abroad 100 100
      6 Total 100 100
      7 South 100 100

    1. This indicator does not include employees on leave in the reporting period, employees who have been with the company for less than one month, and apprentices.

    Additional information:

    All company communications regarding Compliance are sent to all employees, including leaders and managers. Furthermore, anti-corruption training is available on the company’s internal training platform, UniverSuzano, and is mandatory for all employees, providing information on the policy and guidelines that must be followed at Suzano in relation to this topic. Also, as a complement to anti-corruption dissemination, we also provide specific and customized training to the various audiences identified as sensitive for the company, i.e., those who are at higher risk of involvement with corruption.

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

     

    • Notices: Within the company, the Internal Communication area centralizes and sends the information considered relevant at corporate level 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 on the topic of Code of Conduct and Anticorruption Law, videos prepared by the same agency that conducted the construction of our training sessions were made available. 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 the 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.
    • Workplace: A communication platform launched in 2020 so that everyone at Suzano can access company news via computer or cellphone, also used to disseminate the topic of anti-corruption.
    • Chat with Leaders: Communications with specific language are sent to the leaders, encouraging them to disseminate the information received and discuss the topic with their team.
    • 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: In order to request each refund in the tool we use for this purpose, employees must state that they know and agree with the ethical principles in our Code of Conduct and with the guidelines in our Anti-Corruption Law.
  • Political contributions

    Change view:

    • wdt_ID Indicator 2019 2020
      1 Total monetary value of contributions made by the organization to political parties and agents in cash and in kind, directly or indirectly, in R$ 0.00 0.00

    Additional information:

    In compliance with Brazilian legislation, the Code of Conduct, and the company’s Anti-Corruption policy, Suzano does not make contributions of any kind to political parties or agents.

    As provided in the chapter ” Anti-corruption Rules” of our Anti-Corruption Policy (item “5.5 Suzano’s Political Contributions”),” all forms of financing and/or contributions to political parties, agents and/or candidates by companies, either directly or indirectly, are strictly prohibited. Therefore, any involvement with government authorities, if any, shall always be conducted in a proper, non-financial manner, and shall comply with the rules, limits, and disclosure established by the applicable legislation. Any political involvement, however, will always be guided by the rules established in Suzano’s Code of Conduct and in this Policy. Suzano will not accept political party initiatives involving the Company and/or in the work environment. […] ”.

  • Precautionary Principle or Approach

    Context:

    Suzano believes that large organizations are driven by their own cultural dynamics and sustained by the employees that contribute to their processes and procedures. In this way, the company explores the three-line model of the Institute of Internal Auditors (IIA), through standards of conduct that have been developed and disseminated across the different business areas, aiming to identify and mitigate possible risks in its operations.

    The company has an Integrated Risk Management policy in place that applies to all areas, including environmental and social areas, which defines the criteria for identifying, analyzing, handling, and monitoring risks. The evaluation takes into account the internal context (which involves the organizational structure, processes, responsibilities, internal information systems, and relations with internal stakeholders) and the external context (which involves the analysis of the cultural, legal, social, political, financial, technological, and economic environment).

    All events, whether of internal or external, relating to the Company’s strategies and business objectives, must be mapped and monitored in order to ensure that any possible materialization of risk is already known and managed at an acceptable level. Risk assessment is a process that helps in the decision-making process, identifying those that are a priority and need treatment, and is conducted through a critical analysis performed by the business areas, considering the related stakeholders, the parameters of the impacts (Financial, Health and Safety, Environment, Social/Cultural, Image and Reputation, Organizational Climate, Legal) and the probability of occurrence (Very Likely, Likely, Possible, Remote.) It should be noted that the risks defined as priorities and their respective action plans are monitored by the Executive Board, Statutory Audit Committee and Board of Directors.

    Regarding environmental risk management, besides the Integrated Risk Management policy, the environmental teams follow the matrix of operational environmental aspects and impacts, through which the risks are monitored through specific processes that are annually audited. Internal audits are carried out by an internal team and/or by consulting firms retained by the company. External audits are conducted by national and international accredited certifiers and environmental compliance inspection agencies.

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

    Context:

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

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

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

     

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

     

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

     

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

     

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

    The EC may ask the nominee for the position to attend an interview to explain the requirements of this article, and the acceptance of the invitation will respect the will of the nominee.
    Currently, the EC has the following composition: Nildemar Secches, Lilian Maria Ferezim Guimarães and Eduardo Nunes Gianini.

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

  • Responsibility of executive level positions and roles for economic, environmental and social topics

    Context:

    The Board of Directors is responsible for guiding the company’s business, including social and environmental aspects, as per article 14 of the Bylaws. Every matter of relevance in this topic is taken by the Executive Board and senior executives to the Sustainability Committee for debate, which may indicate that the matter be escalated to the Board of Directors.

  • Risk Management

    Stakeholder Capitalism Metrics Dimension (WEF)

    Context:

    High levels of governance require careful risk management. At Suzano, this management is grounded on three complementary fronts supported by different teams that are committed to avoiding or reducing the likelihood of risks occurring in the different areas of the business. Stay informed!

    Internal Controls

    Maps and monitors critical areas and processes in a preventive, systemic, and continuous manner. All risks identified are monitored and/or mitigated using the Control Self Assessment (CSA) methodology, through which process owners quarterly assess the effectiveness of their controls and check whether they are being applied accordingly.

    Corporate Risks

    Through a Suzano risk matrix, in accordance with the Enterprise Risk Management (ERM) process, the team identifies and analyzes the company’s risks, considering the probability of occurrence and financial impacts, in addition to six other aspects: health and safety, environment, sociocultural, image and reputation, organizational climate, and legal, all equally relevant. The team is supported by the Risk and Business Continuity Commissions, responsible for mapping the main risks in the locations where Suzano operates, defining action plans to address the priority risks identified, and preparing business continuity plans to deal with crisis episodes, should they occur.

    Ethical Conduct and Management

    Suzano has instruments in place that guide the ethical management of its business. These include the Code of Conduct, the Ombudsman Policy, the Disciplinary Measures Policy, and the Rules of the Conduct Committee, which establish the guidelines of the company’s governance process. All of these documents deal with compliance with legal and normative provisions applicable to the area and to the Ombudsman’s Channel, as well as with the corresponding regulations, including specific procedures and confidentiality of information. These rules are intended to protect the whistleblower who, in good faith, files reports in order to preserve the company’s ethical principles, ensuring non-retaliation

    Code of Conduct
    Inspired by the Cultural Drivers, our Code of Conduct brings together the six ethical principles that guide our daily actions, focusing on the quality of our relationships, products, and services. The document is a tool that guides and improves our actions and decisions on a daily basis, ensuring that activities with employees, shareholders, customers, suppliers, government officials, and the community are in line with ethical conduct and with the respect that we nurture in our relationships with the different audiences.

    Compliance
    The purpose of Suzano’s Compliance Program is to harmonize policies and the main internal controls. The program prioritizes the integrity of the corporate environment, whether internally or externally. To this end, it explores the concept of the first line of defense through standards of conduct, worked on and disseminated in the business areas in order to identify and mitigate possible risks in our operations.

    Three lines of action

    The three-line model sets out the responsibilities for effective management of risks and controls by the Business, Risk and Compliance, and Internal Audit areas.

    1st Line – Business Area
    Responsible for process risk management, corrective actions, and for implementing action plans.

    2nd Line – Risks and Compliance
    Maps, identifies, and manages business risks while providing the development of an effective control, monitoring, and reporting environment that supports the continuity of the company.

    3rd Line – Internal Audit
    Reports the independent assessment of the processes, control environment, and risks directly to the Executive Board.

  • Spending on treatment and disposal of waste from industrial operations

    Change view:

    • wdt_ID Spending on treatment and disposal of waste (R$) 2019 2020
      1 Suzano/RioVerde¹ 4,400,000.00 4,148,974.02
      2 Limeira 5,533,197.74 10,882,089.00
      3 Jacareí 7,569,509.33 6,661,796.72
      4 Imperatriz 5,722,531.35 5,014,980.00
      5 Mucuri 7,457,705.10 7,657,488.00
      6 Aracruz 5,742,127.29 4,493,965.6
      7 Belém/Maracanaú (Fortaleza)¹ 820,198.79 594,179.25
      8 Três Lagoas 7,839,241.80 18,644,372.14
      9 Total 45,063,181.15 58,097,835.73

    1. Management at the Suzano and Rio Verde and Belém and Maracanaú (Fortaleza) units is carried out jointly. Therefore, the numbers are presented on a consolidated basis.

  • Stakeholders engagement

    Context:

    Suzano understands that the creation of long-term value depends on constant dialogue and involvement with its stakeholders in order to identify their priority needs and concerns. Only in this way is it possible to ensure that the company’s strategies are in line with the expectations of its stakeholders.

    The company establishes a continuous and transparent relationship with stakeholders, investing in communication and engagement channels for each of these audiences. The approaches and frequency of engagement vary according to each audience and their specific perspective.

    In a global survey, conducted in partnership with GlobeScan in the second half of 2020, with employees, customers, suppliers, among other stakeholders, we identified which topics need to be developed and worked on, taking into account the interests of each of these audiences, and how we can strengthen our relationship and improve our communication with each of them.

    The list below presents a summary of the communication and engagement channels used in 2020 by Suzano in the relationship with each stakeholder, as well as the frequency of dialogue and the main topics covered with each one.

    Academia

    Communication and engagement channels

    • Internship Program
    • Trainee Program
    • Summer MBA
    • Fairs and events
    • League of ambassadors
    • Academic leagues
    • Research institutes
    • Research partnerships
    • Parque das Neblinas as a research field
    • Events at Parque das Neblinas
    • Webinars and scientific lives streams
    • Social media

     

    Frequency

    • Routine
    • On demand
    • Periodic

     

    Topics covered

    • Innovation: To be recognized as an innovative company; Intellectual property; To be at the frontier of knowledge; Applied technology (science)*; Technologies for the restoration of the Atlantic Forest.
    • Impacts and opportunities: Forestry science and pulp; Environmental restoration and conservation; Bio-business; Conservation of Biodiversity.
    • Business: Employer brand; Suzano leadership profile; Identify talents; Diversity and inclusion.
    • Communication: Fairs and Events; Effectiveness of the events organized by the ambassador league.
    • Multiply efforts*.

    *Face-to-face encounters carried out before COVID-19.

     

    Customer

    Communication and engagement channels

    • Customer service (SAC)
    • Institutional/IR websites
    • Email (newsletter)
    • Customer portal
    • Virtual meetings
    • Top Management Meetings
    • Smartphone apps
    • Satisfaction survey
    • Questionnaires
    • Technical visits/visits to the units
    • Life Cycle Assessments (LCA)
    • Sector conferences
    • Workshops
    • Social media
    • Ecommerce
    • Stationery store relationship program
    • Customer relationship events and experiences
    • Email marketing
    • Distribution of kits, gifts, cards
    • Annual report

     

    Frequency

    • Routine
    • On demand
    • Periodic

     

    Topics covered

    • Innovation: products and services: Product and service quality; Price positioning; Compliance with deadlines/Service level; Technical assistance/application engineering.
    • Business: Transparency in the relationship; Conduct and ethics; Innovation and development of new solutions; Sustainability in the supply chain and product.
    • Communication: Quality of communication and relationship.

     

    Employees

    Communication and engagement channels

    • Suzano Workplace
    • Email
    • Newsletter
    • WhatsApp
    • Within the facilities: Mural, TV, Desk and cubicle displays, sticker signage in spaces (e.g. elevators)
    • Rádio Florestal (Forestry Radio)
    • Papo de Líder (Chat with Leaders)
    • Suzano e Você (Suzano and You)
    • Suzano Responde (Suzano Answers)
    • RH Responde (HR Answers)
    • Podcasts
    • Communication campaigns
    • Social media
    • Institutional websites
    • Surveys (climate, well-being, adaptation to the COVID-19 model)
    • Co-construction of HR products with employees
    • Ombudsman and Ethics Channel

     

    Frequency

    • Daily
    • On demand
    • Periodic

     

    Topics covered

    • Company institutional and international topics.
    • Business: Financial management (quarterly results, long-term planning); Business units (pulp, paper, consumer goods, fluff); Products; Innovability (innovation, sustainability, Long-Term Goals, new businesses, and digital transformation); Organizational environment; Generation of employment and income.
    • People and management: Evaluation and feedback process; Compensation and benefits; Career and development management; Corporate education; Open opportunities; Diversity and inclusion.
    • Health, safety and quality of life
    • Information security
    • Ethics and compliance
    • Volunteering
    • Ecofuturo Institute
    • Organizational climate and culture

     

    Communities

    Communication and engagement channels

    • Focal points in communities
    • On-site visits
    • Meetings and events of the social and environmental programs
    • Business Risk Meetings
    • Meetings with associations
    • Virtual or on-site meetings (specific agendas)
    • Forums, congresses and collegiate meetings
    • Community councils
    • Odor perception network and transport perception network
    • Voluntariar Program
    • Environmental education training program
    • Sound trucks in distant communities
    • Workshops with rural landowners
    • Provision of services
    • Technical assistance
    • Local procurement
    • Online questionnaires
    • Interviews and radio
    • Tool-free 0800, Suzano Responde (Suzano Answers), and Floresta Viva (Living Forest Channel)
    • Printed letters sent to homes due to the pandemic
    • Webinars
    • WhatsApp group with communities
    • Social media and Facebook posts targeted by region
    • Institutional websites
    • Local media (TV, radio, billboard, etc.)

     

    Frequency

    • Routine
    • On demand
    • Periodic

     

    Topics covered

    • Close relationship: Be periodically present to maintain and/or build a relationship with the community; Active listening and collaborative construction with the community; Relationship/promotion of knowledge.
    • Communication: Effective communication to drive local engagement in order to achieve the results of the social and environmental investment; Establish a transparent and accessible relationship with audiences with which we interact; Communication should never be imposed, but rather dialogue should be established to reach an agreement.
    • Environmental: Environmental Education.

     

    End consumer

    Communication and engagement channels

    • Call center
    • Questionnaires
    • Market surveys
    • Product packaging
    • Advertisements
    • Annual report
    • Social media
    • Institutional website

     

    Frequency

    • Routine
    • On demand
    • Periodic

     

    Topics covered

    • Communication: Communicate brand, positioning and benefits; Listen to consumer to improve product and service (feedback); Publish information on the website and social media.
    • Products and services: Provide environmentally friendly (ecological) products; Product and service quality.

     

    Companies

    Communication and engagement channels

    • Conferences
    • Live streams
    • Suzano Convida (Suzano Invites): Meet-up for C-Level
    • Annual report
    • Awards with entities of the sector
    • Benchmarking

     

    Frequency

    • On demand
    • Periodic

     

    Topics covered

    • Private sector trends
    • Material ESG topics

     

    Suppliers

    Communication and engagement channels

    • Supplier meeting
    • Development and training programs
    • Partnership programs
    • Satisfaction survey
    • Negotiation meetings
    • Sustainability content for suppliers
    • Webinars
    • Supplier relationship portal / Supplier Ombudsman
    • Sending of emails
    • Website
    • Chatbot
    • Member of the UN Global Compact

     

    Frequency

    • Routine
    • On demand
    • Periodic

     

    Topics covered

    • Recognition program (supplier)
    • Journey experience (fulfillment of the contract)
    • Long-term partnership
    • Expansion of the products and services provided.

     

    Government

    Communication and engagement channels

    • Participation in associations and trade associations
    • Participation in councils and advisory bodies
    • Participation in strategic forums as sitting members and listeners
    • Participation in public hearings
    • In-person, virtual, and telephone meetings
    • Announcements in associations (federal, state and municipal)
    • Public consultations
    • Member of councils
    • Terms of Partnership for social and environmental projects
    • Formal partnerships
    • Media and newspapers
    • Events

     

    Frequency

    • Routine
    • On demand
    • Periodic

     

    Topics covered

    • Community: Education; social well-being; public security; contribution to best practices in production and local development.
    • Environment: Regulatory aspects; Climate change; Alternative land use techniques; Environmental services; Carbon; Environmental restoration and conservation; Environmental education.
    • Business: Human rights; Economic and regulatory issues; compliance.

     

    Investors

    Communication and engagement channels

    Events:

    • Suzano Day
    • Roadshows and Non Deal Roadshows
    • On-site visits to the units
    • Live stream sessions with Company Executives
    • 1×1 meetings with investors or sell-sides / buy-sides analysts
    • Quarterly Earnings Conference Call
    • Capital Market Events

     

    Corporate Documents:

    • Quarterly Earnings Release
    • Standardized Quarterly Information / Standardized Financial Statement
    • Annual reports (20-F, Reference Form, Management Report, Annual Report)
    • Institutional Policies
    • Corporate Presentation
    • Documents filed with the Securities and Exchange Commission (CVM) / Securities and Exchange Commission (SEC)

     

    Other:

    • Investor Relations website
    • ESG questionnaires
    • ESG Indices and Rankings

     

    Frequency

    • Daily
    • On demand
    • Periodic (quarterly or annual)

     

    Topics covered

    • ESG issues
    • Short- and long-term strategy: future projects, market behavior (China, Europe, and North America), new markets, among other topics
    • Company Results (Pulp, Paper, and Consumer Goods business)

     

    Media

    Communication and engagement channels

    • Press conferences
    • Interviews with the leadership
    • Company events (Suzano Convida, Suzano Day, etc.)
    • Participation in media outlet awards and events
    • Sponsorship of regional media outlet events
    • Relationship meetings with journalists
    • Press trip
    • Crisis management
    • Press release
    • Surveys, rankings, and awards
    • Ads and campaigns
    • Social media
    • Annual report
    • International, National, and Regional Press, represented by different media outlets (TV stations, radio stations, daily newspapers or periodicals, magazines, websites, etc.)

     

    Frequency

    • Daily

     

    Topics covered

    • Business: Financial management (quarterly results, long-term planning); Business units (pulp, paper, consumer goods, fluff); Innovability (innovation, sustainability, new businesses, and digital transformation); Organizational environment; Generation of employment and income.
    • Sustainability: Social and environmental programs (education, research, incentive to reading); Emissions; Ecotourism; Awards; Environmental conservation and restoration; Biodiversity.

     

    NGOs and Associations

    Communication and engagement channels

    • In-person, telephone or virtual meetings
    • Periodic meetings planned in the social and environmental programs
    • Participation in events and discussion forums
    • Participation in dialogues and collegiate meetings
    • Participation in committees and territorial collegiate meetings
    • Public consultations
    • Network of multipliers
    • Multistakeholder initiatives
    • Partnership in research
    • Participation and partnership for joint projects
    • Members of network organizations
    • Members of institutions, NGOs and trade representatives
    • Disclosures and reports

     

    Frequency

    • Routine
    • On demand
    • Periodic

     

    Topics covered

    • Social responsibility: Promote local and territorial development through transparent, inclusive, collaborative, and periodic relationship and social investment strategies; Controversial topics (indigenous people, occupation of land, conflict over water; education and incentive to reading; bringing human beings and nature closer together.
    • Environmental responsibility: Restoration; Regeneration of the Atlantic Forest; Conservation of biodiversity; Protection and surveillance of natural areas; Environmental education; Visitation and public use; Transparency and engagement with NGOs, representatives of civil society and public control bodies; Landscape planning; Cooperation for specific purposes (e.g., fight against hunting).
    • Business: Long-term goals; collaborative partnerships; contribution to the SDGs; communication of business institutes.

     

    Startups

    Communication and engagement channels

    • Participation in events in Innovation hubs
    • Participation in acceleration and engagement programs
    • Participation in internal events organized by Suzano
    • Satisfaction surveys
    • Virtual meetings
    • Social media

     

    Frequency

    • Routine
    • On demand
    • Periodic

     

    Topics covered

    • Business partnerships: Business opportunities, dissemination of the culture of Innovation, and generation of results, with a win-win relationship.
    • Visibility: External dissemination on social media and internally to interested areas.
    • Training: Training in agile methods for project execution.
  • Tax management and approach

    Context:

    Suzano’s Tax Policy is based on the development of strategies to manage the tax burden, always in compliance with the current legislation. Suzano, as a multinational company with businesses in several countries and as a publicly traded company, has 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.

    Suzano has terms of agreements/letters of intent with State entities always seeking to optimize the tax burden in accordance with the legislation. In connection with this topic, Suzano takes part in the tax committees of sector associations (IBÁ), industrial federations (FINDES, FIESP, FIEMA, among others) and specific groups for discussions on the subject, such as the (GETAP – Grupo de Estudos Tributários Aplicados (Applied Tax Studies Group)

    Suzano’s tax strategy is in line with the Company’s current business and future plans. Only tax opportunities related to the business plan are evaluated. All tax decisions stem from the business strategy and are therefore additional effects to the results of the commercial and operational activities. In this case, cost reduction or tax impact is only one of several factors taken into consideration in investments and business decisions, not the main ones.

    The Company’s fiscal strategies are monitored by the Board of Directors/Statutory Audit Committee as and when applicable. Any changes to the Tax Conduct Policy must be approved by the CFO. Suzano bases its Tax Conduct Policy on compliance with the tax rules in force in all the countries where it operates.

  • Total investment in the environment (R$)

    Change view:

    • wdt_ID Total investments in the environment (R$)¹ 2020
      1 Forestry operations 20,949,578.02
      4 Industrial operations 89,181,284.09
      5 Total 110,130,862.11

    1. Since this indicator started to be reported in 2020, it has no track record.

    Additional information:

    The indicator is composed of investments from Suzano’s Forest Environment and Industrial Environment areas. These teams work, mainly, to ensure the preservation of the environment in which we operate, reducing and mitigating the negative impacts and enhancing, whenever possible, the positive impacts of our forestry and industrial operations, respectively. This does not mean that other areas of the company do not work directly or indirectly with this topic.

  • Total investment in the environment (USD)

    Change view:

    • wdt_ID Total investments in the environment (USD)¹ 2020
      1 Forestry operations 4,071,357.67
      3 Industrial operations 17,331,561.74
      4 Total 21,402,919.41

    1. Since this indicator started to be reported in 2020, it has no track record. In 2020, the dollar amounts (USD) were converted based on the average exchange rate on 12/31/2019 (R$5.1456).

    Additional information:

    The indicator is composed of investments from Suzano’s Forest Environment and Industrial Environment areas.. These teams work, mainly, to ensure the preservation of the environment in which we operate, reducing and mitigating the negative impacts and enhancing, whenever possible, the positive impacts of our forestry and industrial operations, respectively. This does not mean that other areas of the company do not work directly or indirectly with this topic.

  • Total number of employees that have received training on anti-corruption policies and procedures, by employment category

    Stakeholder Capitalism Metrics Dimension (WEF)

    Change view:

    • wdt_ID Total number of employees that have received training on anti-corruption policies and procedures, by employment category¹ 2019 2020
      1 Administration 2,431 2,892
      2 Board members 18 7
      3 Consultants 512 573
      4 Coordinators 316 272
      5 Managing Directors 9 10
      6 Specialists 817 47
      7 Directors 10 15
      8 Executive Managers 79 86
      9 Functional Managers 239 272
      10 Operational 6,700 7,542

    1. This indicator does not include employees on leave in the reporting period, employees who have been with the company for less than one month, and apprentices.

    Additional information:

    Anticorruption training is mandatory for all new employees – who must complete the course within 30 days after joining the company. It is renewed every 2 years, when the employee must take a refresher course.

    There were variations in the number of employees trained in 2020 compared with 2019, which reflect the changes in Suzano’s workforce.

  • Total number of employees that have received training on anti-corruption policies and procedures, by region

    Stakeholder Capitalism Metrics Dimension (WEF)

    Change view:

    • wdt_ID Total number of employees that have received training on anti-corruption policies and procedures, by region¹ 2019 2020
      1 North 791 251
      2 Northeast 3,164 3,620
      3 Midwest 1,213 1,425
      4 Southeast 5,955 6,520
      5 Abroad 183 110
      6 Total 11,380 11,998
      7 South 74 72

    1. This indicator does not include employees on leave in the reporting period, employees who have been with the company for less than one month, and apprentices.

    Additional information:

    Anticorruption training is mandatory for all new employees – who must complete the course within 30 days after joining the company. It is renewed every 2 years, when the employee must take a refresher course.

    There were variations in the number of employees trained in 2020 compared with 2019, which reflect the changes in Suzano’s workforce.

  • Total number of employees that the anti-corruption policies and procedures have been communicated to, by employment category

    Stakeholder Capitalism Metrics Dimension (WEF)

    Change view:

    • wdt_ID Total number of employees that the anti-corruption policies and procedures have been communicated to, by employment category¹ 2019 2020
      1 Administration 2,724 3,001
      2 Board members 18 10
      3 Consultants 551 587
      4 Coordinators 360 280
      5 Managing Directors 12 11
      6 Specialists 916 47
      7 Directors 19 17
      8 Executive Managers 93 88
      9 Functional Managers 289 279
      10 Operational 8,461 8,944

    1. This indicator does not include employees on leave in the reporting period, employees who have been with the company for less than one month, and apprentices.

    Additional information:

    All company communications regarding Compliance are sent to all employees, including leaders and managers. Furthermore, anti-corruption training is available on the company’s internal training platform, UniverSuzano, and is mandatory for all employees, providing information on the policy and guidelines that must be followed at Suzano in relation to this topic. Also, as a complement to anti-corruption dissemination, we also provide specific and customized training to the various audiences identified as sensitive for the company, i.e., those who are at higher risk of involvement with corruption.

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

     

    • Notices: Within the company, the Internal Communication area centralizes and sends the information considered relevant at corporate level 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 on the topic of Code of Conduct and Anticorruption Law, videos prepared by the same agency that conducted the construction of our training sessions were made available. 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 the 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.
    • Workplace: A communication platform launched in 2020 so that everyone at Suzano can access company news via computer or cellphone, also used to disseminate the topic of anti-corruption.
    • Chat with Leaders: Communications with specific language are sent to the leaders, encouraging them to disseminate the information received and discuss the topic with their team.
    • 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: In order to request each refund in the tool we use for this purpose, employees must state that they know and agree with the ethical principles in our Code of Conduct and with the guidelines in our Anti-Corruption Law.
  • Total number of employees that the anti-corruption policies and procedures have been communicated to, by region

    Change view:

    • wdt_ID Total number of employees that the anti-corruption policies and procedures have been communicated to, by region¹ 2019 2020
      1 North 936 330
      2 Northeast 4,149 4,010
      3 Midwest 1,757 2,010
      4 Southeast 6,537 7,010
      5 Abroad 281 127
      6 Total 13,742 13,559
      7 South 82 72

    1. This indicator does not include employees on leave in the reporting period, employees who have been with the company for less than one month, and apprentices.

    Additional information:

    All company communications regarding Compliance are sent to all employees, including leaders and managers. Furthermore, anti-corruption training is available on the company’s internal training platform, UniverSuzano, and is mandatory for all employees, providing information on the policy and guidelines that must be followed at Suzano in relation to this topic. Also, as a complement to anti-corruption dissemination, we also provide specific and customized training to the various audiences identified as sensitive for the company, i.e., those who are at higher risk of involvement with corruption.

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

     

    • Notices: Within the company, the Internal Communication area centralizes and sends the information considered relevant at corporate level 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 on the topic of Code of Conduct and Anticorruption Law, videos prepared by the same agency that conducted the construction of our training sessions were made available. 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 the 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.
    • Workplace: A communication platform launched in 2020 so that everyone at Suzano can access company news via computer or cellphone, also used to disseminate the topic of anti-corruption.
    • Chat with Leaders: Communications with specific language are sent to the leaders, encouraging them to disseminate the information received and discuss the topic with their team.
    • 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: In order to request each refund in the tool we use for this purpose, employees must state that they know and agree with the ethical principles in our Code of Conduct and with the guidelines in our Anti-Corruption Law.
  • Voting practices and shareholders’ rights

    Context:

    The company adopts a system in which each shareholder is entitled to one vote per share. All shareholder voting provisions are contained in the company’s bylaws. There as plans that the purchase of a relevant stake in the company’s shares will bring offer rights/obligations for the purchase of the other issued shares. Various company shareholders participate and vote at Shareholders’ Meetings and, for the most part, use the remote voting system.

    BNDES Participações held company shares above 5% of the total capital stock. However, it sold these shares on the market in 2020. Therefore, since the end of 2020, no individual government institutions have held more than 5% of the company’s total voting rights.