Value Chain (suppliers and customers)

Understanding the needs and potentialities of our customers, with the purpose of offering sustainable 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.

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  • Analysis of the environmental life cycle of products (paper)

    Context:

    A major concern for the Paper and Packaging unit is to always develop products with the least environmental impact while bringing solutions to the market that are guided by a systemic and sustainable vision, based on concrete facts and data. Therefore, a methodology already being used for the paperboard line is Life Cycle Assessment.

    Life cycle assessments began to be used as a guiding factor in our product developments in the paperboard line, especially in the development of the new TP Cycle product, providing technical inputs for us to ensure the lowest possible environmental impact throughout its life cycle, especially when compared to analogous and equivalent products made from virgin fiber. This is how recycled fibers were inserted in our production process.

    We believe that there is no point in addressing the solid waste problem in our products and then having, for example, processes that require more water or emit more Greenhouse Gases. It is no longer enough to think in one “or” the other, but rather in “and” the other. With that in mind and not limiting ourselves to a single alternative, we are also working toward reinserting post-consumer paperboard fibers in our suppliers’ production of cardboard boxes, which are currently being used to package our cut-size reams. This alternative has two main advantages: the first is its scalability, since, in this case, the production potential of the cardboard chain after absorbing post-consumer material is substantially greater than that of paperboard. The second refers to the mitigation of environmental impacts. Since cardboard can now be produced using this type of input without major changes to the process, the reinsertion impacts caused by technical losses in the final product are minimal when compared to the production of paperboard of a comparable category.

    Use of recycled/recovered fibers

    The decision to incorporate post-consumer recycled fibers (based on the life cycle assessments performed) was synonymous with Innovation in 2020 for Suzano, which then launched TP Cycle, a new product in its paperboard portfolio. In order to optimize the supply of this new input, we entered into a partnership with the company Eureciclo, to ensure the quality of the material as well as its traceability. Its value varies directly according to market availability, which is very dependent on the engagement of end consumers, who must properly dispose of their packaging. In addition, Suzano already had Reciclato, both for the uncoated line and the Cut Size version, made entirely from recycled fibers. Specifically referring to Reciclato cut-size, we have focused more and more on increasing supply of this product to the European market, given its great differentiator and their growing concern regarding the topic of recycling.

    For the development of the TP Cycle, which depends on external supply of recycled fibers, we felt the impact of the pandemic on the supply of raw materials, especially those of higher quality and originating exclusively from paperboard. Since this product is intended for the cosmetics/pharmaceutical market, it needs to have a high level of purity, excellent presentation, and greater stiffness. For this reason, supply of post-consumer fibers needs to be meticulous. In addition, our disaggregation process does not support contaminants such as plastic and metal, which we have observed are still present in the bundles of this material. Also in partnership with Eureciclo, we are seeking to increasingly improve the auditing and approval process of the companies supplying this input.

  • Critical suppliers

    Context:

    Critical suppliers are those suppliers of items controlled for procurement (inputs, raw materials, and services) with the potential to generate significant impacts on product capability and quality, process performance, equipment security and integrity, on the environment, and employee health and safety.

    Performance of our critical suppliers is assessed every year. The final score obtained in the assessment results in the Supplier Performance Index (SIP), based on the following requirements:

     

    • Technical quality: punctuality, technical qualification, process structuring, and technical support
    • Safety: performance in occupational health and safety, safety dialogue, and personal protective equipment
    • Environment: operational processes, environmental incidents and impacts, and
    • Social: social impacts and respect for human rights

    Change view:

    • wdt_ID Critical suppliers 2019 2020¹
      1 Total number of critical suppliers 389 458
      2 Percentage of critical suppliers (in relation to total number of suppliers) 4% 4%
      3 Percentage of total purchases spent on critical suppliers 22% 41%
      4 Total number of critical suppliers (level 1 and not level 1) assessed² n/d 393
      5 Total number of suppliers with high sustainability risk assessed² ³ n/d n/d

    1. In 2019, right after the merger that gave rise to Suzano S.A., we did not have a standardized methodology for obtaining the number of the company’s critical suppliers or for assessing suppliers in this category. As a result, the numbers reported for the year did not represent the total number of these suppliers. However, in 2020, the critical suppliers concept was unified and the supplier performance assessment process was standardized, which explains the increase in the number of suppliers in the period.
    2. As these indicators started to be reported in 2020, there is no history for 2019.
    3. The social and environmental risk matrix, based on which risks of this nature are assessed, was not developed in 2020. Our goal is to implement it in 2021, when we will be able to report these results.

    Additional information:

    In addition to the actions performed by Suzano for the proper management of all its suppliers (as described in the “Supplier Management” indicator), separate measures are in place to ensure a good relationship between the company and critical suppliers and the reduction of the risks of these suppliers generating impact.

  • Customer satisfaction

    Context:

    Pulp
    The satisfaction survey conducted in 2020 was the first since the merger of Suzano and Fibria, which occurred in early 2019. Because it is a new company, Suzano decided not to conduct a customer satisfaction survey during its first year of operation, since it would be important to have a customer relationship for at least one year in order to measure customer experience during this cycle.

    In addition to the NPS (Net Promoter Score), the satisfaction survey took into account the four pillars of Suzano’s relationship with its customers, namely: commercial, back office, logistics, and technical assistance.

    The survey was conducted by a third-party institute specializing in confidentiality. Overall, the evaluations were positive: 78% of the customers are very or completely satisfied, complimenting the good relationship, respect, and long-term partnership.

    Fluff
    Eucafluff is increasingly gaining space and recognition in the fluff market worldwide. Therefore, it is critical that we start tracking the level of satisfaction of our customers with the services involved in supplying fluff and with the quality of our product.
    This will be key for us to identify points for improvement and opportunities in our future operations.

    As of 2020, we began to conduct an annual customer satisfaction survey with customers worldwide, checking issues such as commercial services, logistics, performance of product characteristics, and others.

    One of the main indicators we are going to track is the overall satisfaction with the service/product offered by Suzano—data that gives us a snapshot of how the company is doing with its current customers. In 2020, the result obtained was 84% satisfaction among customers in the domestic and foreign markets. Looking at the domestic market alone, the rate was 100%.

    The survey results gave us important insights for plans and initiatives in 2021, aiming to leverage satisfaction and thus solidify Eucafluff as an outstanding alternative for the industry.

    Since this result relates to a new survey methodology used for the first time after the merger process, we did not establish an associated goal. It is expected that this result will evolve positively over the next cycles, since the commercial teams have been discussing improvement plans in order to address the gaps identified.

    Paper
    The satisfaction survey for the paper unit is conducted annually by a qualified company in the market, contacting customers, by phone and/or email, and using a questionnaire developed internally to gather opinions about all aspects and areas of the unit. The result is evaluated through the TRIM and NPS metrics, and the main result is Suzano’s rating against the pre-established NPS scales (a methodology that measures customer recommendation using a scale of +100 to -100).

    In 2020, the survey was conducted between October and December with active customers in the previous 12 months, and the result was a representative growth in our NPS of domestic market customers, and a drop in the NPS of foreign market customers. The results are not disclosed because they are linked to the area’s strategic goals.

    Also in 2020, we set up a working group with specific goals to address the most critical points of the previous year’s survey results. This and our monitoring of these metrics allowed us to see representative growth in most of the lines analyzed. The results in some of the lines were not as positive, mainly due to the logistics problems caused by the pandemic. In any case, all aspects reported are being analyzed through a structured monitoring process.

    Consumer goods
    In 2020, we conducted our annual 360° Advantage survey of customers in the retail channel in order to gain customer insights considering evaluation dimensions such as Strategic Alignment, Team, Category Development, Consumer MKT, Trade & Shopper MKT, Supply Chain, and Customer Support. Based on the results, we mapped the main opportunities and established an action plan together with our customers.

    Consumer surveys are also conducted in order to develop new brands and products. The results of both surveys are confidential.

  • Main brands, products, and services

    Context:

    Suzano is currently the largest producer of eucalyptus pulp in the world, supplying the market with products from renewable sources that are part of several moments in people’s daily lives. In this segment, the only product bearing the Suzano brand is the bleached eucalyptus chemical pulp.

    Specifically in the fluff pulp segment, we cater to the segments of absorbents products for incontinence, baby diapers, pet mats, feminine pads, and airlaid. There are other possible applications, such as civil construction and the food sector, but our prospecting focus is on the disposable sanitary napkins sector.

    In the paper segment, we have four different product lines: paperboard, uncoated paper, coated paper, and cut-size paper Today, we have no limitations as to the use of our products in applications commonly found in the packaging, publishing, converting, promotional, and direct applications of A4 paper for printing and writing, with global sales and distribution.

    The main brands are:

    • Paperboard: Supremo Alta Alvura, Supremo Duo Design, Super 6 Plus, TP White Plus, TP White Pharma Plus, and Bluecup family. For export, the only brand name that changes is the Supremo family, which is called Supremo SBS Board. In 2020, we launched a new product family, TP Cycle, which includes in its composition 10% post-consumer fibers and seeks to maintain a life cycle analysis result similar to that of virgin fiber boards, as well as the characteristics of stiffness, printability, and machinability of a Suzano paperboard. In terms of paperboard, besides our traditional sales of paper to print shops, converters, and distributors, we can co-create new types of packaging for our customers, rethinking raw materials and/or design together with print shops and brand owners.
    • Uncoated: Pólen Bold, Pólen Soft, Alta Alvura Laser (domestic market only), Alta Alvura Alcalino (domestic market only), Reciclato, Paperfect Laser, Paperfect, Prisma Bright (foreign market only) and Prima Bright Laser (foreign market only). In addition, two products in this line were launched to serve the disposable products market, directly replacing single-use plastics. They are: Loop, a paper used for forming straws, and a new paper for carrier bags, launched in 2020 and that has 100% short fiber with tear, rupture, and roughness properties, ideal for the carrier bag segment
    • Coated: Couché Suzano: Couché Fit, Couché Design, and Couché Press
    • Cut size: the main brands in the domestic market are Report, Copimax, and Magnum; for the foreign market, in addition to the first two, we have ARTWORK, ECLIPSE, HIGHWHITE, and ONE.

    Regarding consumer goods, Suzano offers pulp-based products that meet the hygiene, cleaning, and family and home care needs.

    In this segment, our portfolio is divided into:

    • Mimmo Toilet Paper: Its plies, with a high level of absorption, have an exclusive suggested “tear line” system. Its easy-to-open roll prevents waste. It is softer and lasts longer.
    • Floral Toilet Paper: quality and savings in one-ply rolls. Floral is a leader in its category in the North and Northeast regions, and is available in the traditional, neutral, and scented versions.
    • La Vie Blanc Toilet Paper: Its new Velutec technology guarantees high-quality plies and superior softness through its microfiber layers, providing a soft and velvety texture. Available in two- and three-ply, and in a scented version as well.
    • Max Pure Toilet Paper: Made with advanced production technology, it offers softness and absorption. Available in one- and two-ply and exclusive to the Cash & Carry channel.
    • Scala Paper Towel and Napkin: The Scala line was especially created to be our best partner in kitchen cleaning. Its paper towel has maximum absorption, keeping food drier. And the line of Scala and Scala Naps napkins delivers practicality in your day to day life.
    • Maxx Baby diapers: Eucafluff technology keeps your baby dry for longer. Maxxigel allows for greater liquid absorption and retention. Designed with comfort in mind, the diaper has a new softer cover, providing a better fit and a soft touch.
  • Markets served by the organization

    Context:

    Suzano’s pulp is sold all over the world, mainly to paper producers in the printing & writing, toilet paper and packaging segments. During 2020, sales in the tissue segment accounted for 64.3%, followed by printing & writing papers (15.9%) and packaging (7.3%). As for the regions, 51% of sales go to Asia, 26% to Europe, 15.5% to North America, 7.2% to Brazil, and 0.3% to other Latin American countries.

    In 2020, Suzano sold 10.8 million tonnes of pulp, up 15% over 2019. Despite the challenges faced by the global market due to the Covid-19 pandemic, Suzano continued to provide a stable supply to its customers during the year, providing seamless service to all regions and market segments. The tissue paper segment continued to have a significant share in our sales mix, accounting for 64.3% of the business unit’s total sales, followed by the other segments of Specialty Paper, Packaging, and Printing and Writing. The international market was the destination of more than 90% of pulp sales, with 268 customers throughout all regions of the world.

    Specifically in the fluff pulp segment, we cater to the segments of absorbents products for incontinence, baby diapers, pet mats, feminine pads, and airlaid. There are other possible applications, such as civil construction and the food sector, but our prospecting focus is on the disposable sanitary napkins sector. Our customers are mainly located in Brazil, China, the United States, EMEA (Europe, the Middle East, and Africa), and Japan. We currently serve both local/regional companies and global companies, all in the disposable sanitary napkin sector.

    We sell our paper products to a highly diversified customer base: from producers of notebooks and non-promotional materials, to more sophisticated customers, such as producers of promotional materials, high-quality packaging, and art books. In this way, these products are sold to markets in Brazil, South, Central, and North America, and other regions on a smaller scale.

    Concerning paperboard, we operate in the main segments of the paper chain (publishing, promotional, distribution, converting), but the big market is packaging (cartridges, tapes, envelopes), and in the last two years we have also entered the disposable cup market with the Bluecup family. Suzano’s products are sold print shops, converters, and distributors, but our relationship with brand owners is further strengthened through jointly designed actions and projects.

    For the uncoated market, we operate in the main segments of the paper chain, including the publishing market – both educational in teaching systems and school books, and non-educational, in the sales of books on the main marketplaces (physical and online), notebooks, promotional, and packaging. Suzano also distributes paper to customers with lower purchase volumes, directly servicing the fragmented and micro-fragmented channels.

    Cutsize, the paper for printing and writing, is another strong market in which Suzano operates. With an extensive portfolio of brands and different formats, we offer our customers a strong and resistant paper, a leader in performance that contributes to the business of customers inside and outside Brazil, through the premium brand Report. Our customer portfolio includes: corporate markets, stationery stores, self-service, copy shops, distributors, bidding, as well as end consumers, who can rely, in addition to our Premium line, on our Senninha children’s line, ideal for coloring and clipping.

    Our Coated Paper line is mainly used in the converting and promotional market (art books, magazines, catalogs, pamphlets…). We serve print shops and distributors in all regions of Brazil, in a highly fragmented market. We are a leading supplier of coated paper in Brazil, offering a differentiated service in addition to high-quality products and performance. We also export our coated paper to other countries, with a focus on Latin America.

    In the consumer goods unit, operations are restricted to Brazil, with greater representation in the North and Northeast regions of the country. Our customer base in this sector is segmented in retail sales, supermarket and hypermarket chains, distributors, wholesalers and cash & carry chains.

  • Negative environmental impacts in the supply chain and actions taken

    Change view:

    • wdt_ID Suppliers identified as having negative environmental impacts¹ 2019 2020²
      1 Number of suppliers assessed 168 306
      2 Number of suppliers identified as having significant actual and potential negative environmental impacts. 7 5
      3 Number of suppliers identified as having significant actual and potential negative environmental impacts with which improvements were agreed upon as a result of assessment 5 5
      4 Percentage of suppliers identified as having significant actual and potential negative environmental impacts with which improvements were agreed upon as a result of assessment 71% 100%
      5 Number of suppliers identified as having significant actual and potential negative environmental impacts with which relationships were terminated as a result of assessment 2 0
      6 Percentage of suppliers identified as having significant actual and potential negative environmental impacts with which relationships were terminated as a result of assessment 29% 0%

    1. Only critical suppliers were considered for this indicator, i.e., suppliers of inputs and services that can generate significant impacts on quality, process performance, equipment security and integrity, on the environment, and on the health and safety of employees. To calculate the indicator, we considered the total number of suppliers identified as having significant negative impacts divided by the total number of suppliers assessed.
    2. In 2019, right after the merger that gave rise to Suzano S.A., we did not have a standardized methodology for assessing suppliers and obtaining the number of suppliers assessed by the company. As a result, the numbers reported for the year did not represent the total number of suppliers assessed. However, in 2020, the critical suppliers concept was unified and the supplier performance assessment process was standardized, which explains the increase in the number of suppliers identified as having impacts in the period.

    Additional information:

    In 2019, potential negative environmental impacts were identified because of incidents involving untreated oil spills, lack of timely information concerning water and waste treatment control, improper disposal of tires, and inadequate response time to environmental incidents with the due positioning.

    In 2020, these potential impacts were identified due to the lack of an environmental license, absence of a procedure to mitigate and/or minimize environmental impacts and events, and failure to monitor and test for black smoke for vehicles and equipment used in the transportation of people and operations. Potential impacts were identified in the states of Espírito Santo, Maranhão, Mato Grosso do Sul, Pará, Paraná, and São Paulo.

  • Negative social impacts in the supply chain and actions taken

    Change view:

    • wdt_ID Suppliers identified as having negative social impacts¹ 2019 2020
      1 Number of suppliers assessed 168 306
      2 Number of suppliers identified as having significant actual and potential negative social impacts. 4 4
      3 Number of suppliers identified as having significant actual and potential negative social impacts with which improvements were agreed upon as a result of assessment 2 4
      4 Percentage of suppliers identified as having significant actual and potential negative social impacts with which improvements were agreed upon as a result of assessment 50% 100%
      5 Number of suppliers identified as having significant actual and potential negative social impacts with which relationships were terminated as a result of assessment 1 0
      6 Percentage of suppliers identified as having significant actual and potential negative social impacts with which relationships were terminated as a result of assessment 25% 0%

    1. Only critical suppliers were considered for this indicator, i.e., suppliers of inputs and services that can generate significant impacts on quality, process performance, equipment security and integrity, on the environment, and on the health and safety of employees. To calculate the indicator, we considered the total number of suppliers identified as having significant negative impacts divided by the total number of suppliers assessed.
    2. In 2019, right after the merger that gave rise to Suzano S.A., we did not have a standardized methodology for assessing suppliers and obtaining the number of suppliers assessed by the company. As a result, the numbers reported for the year did not represent the total number of suppliers assessed. However, in 2020, the critical suppliers concept was unified and the supplier performance assessment process was standardized, which explains the increase in the number of suppliers identified as having impacts in the period.

    Additional information:

    In 2019, the potential negative social impacts identified were from non-use of local/regional labor by suppliers.

    In 2020, the actual and potential negative social impacts considered included non-compliance with work safety requirements, low risk perception by employees, and the occurrence of accidents. The impacts were identified in the states of Espírito Santo, Maranhão, Mato Grosso do Sul, Pará, Paraná, and São Paulo.

  • New suppliers that were screened using environmental criteria

    Change view:

    • wdt_ID New suppliers that were screened using environmental criteria 2019 2020
      1 Total number of new suppliers that were considered for hiring 1,953 1,395
      2 Total number of new suppliers that were approved using environmental criteria 514 195
      3 Percentage of new suppliers that were approved using environmental criteria (%) 26.32% 13.98%

    Additional information:

    At Suzano, the process of registering and approving new suppliers considers their scope of operation to define the criteria by which they will be analyzed. In this sense, suppliers screened using environmental criteria are those whose activities are directly related to issues of this nature and have gone through the company’s registration and approval process.

    In 2020, 100% of the new suppliers registered by Suzano whose scope of operation involves environmental aspects – i.e., 195 suppliers – were screened using these criteria. This represents approximately 14% of the total number of new suppliers registered by the company in the reporting period.

  • New suppliers that were screened using social criteria

    Change view:

    • wdt_ID New suppliers that were screened using social criteria 2019 2020
      1 Total number of new suppliers that were considered for hiring 1,953 1,395
      2 Total number of new suppliers that were approved using social criteria 1,953 1,395
      3 Percentage of new suppliers that were approved using social criteria (%) 100.00% 99.93%

    Additional information:

    At Suzano, the process of registering and approving new suppliers considers their scope of operation to define the criteria by which they will be analyzed. Regarding social criteria, all suppliers are invariably analyzed and are only registered if they comply with the provisions set forth in the social and environmental responsibility term.

    Thus, in 2020, 100% of the new suppliers registered and approved by the company – i.e., 1,395 suppliers – were screened using these criteria.

  • Number of contractors hired by gender

    Change view:

    • wdt_ID Indicator 2019 - Men 2019 - Women 2019 - Total 2020 - Men 2020 - Women 2020 - Total
      1 Number of contractors hired by gender¹ 21,016 1,641 22,657 20,152 1,356 21,508

    1. The data includes all Suzano S/A.

    Additional information:

    At Suzano, contractors are hired primarily to support the industrial and forestry operations, in activities such as maintenance, logistics, facilities, technology, and forestry implementation, and others.

  • Number of contractors hired by region

    Change view:

    • wdt_ID Number of contractors hired by region¹ 2019 2020
      1 North 3,158 3,796
      2 Northeast 4,261 3,102
      3 Midwest 4,438 4,179
      4 Southeast 10,745 10,386
      5 South 55 45
      6 Abroad 0 0
      7 Total 22,657 21,508

    1. The data includes all Suzano S/A.

    Additional information:

    At Suzano, contractors are hired primarily to support the industrial and forestry operations, in activities such as maintenance, logistics, facilities, technology, and forestry implementation, and others.

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

    Stakeholder Capitalism Metrics Dimension (WEF)

    Context:

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

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

    The company also has a due diligence system in place to assess risks involving wood suppliers, so that the company can meet the requirements established by the certifications in this regard. For these assessments, we rely on an internal methodology that includes, among other factors, conducting interviews and providing documentary evidence regarding the legality of the contract and of the working conditions of the professionals involved in the activities.

    In 2020, we created Suzano’s Corporate Human Rights Policy, which expresses the company’s commitment to this topic. We are also signatories to the International Bill of Human Rights, the International Labor Organization’s (ILO) Declaration on Fundamental Principles and Rights at Work, and to the United Nations’ Global Compact, which, among other subjects, addresses topics related to the Human Rights.

    In 2019 and 2020, we did not identify in Suzano’s and our suppliers’ operations situations where there was a significant risk of occurrence of child, forced and/or bonded labor. Regarding wood supply operations, on December 26, 2019, FSC published the FSC® National Risk Assessment for Brazil (FSC-NRA-BR V1-0), aiming to clearly define the guidelines for assessing the risk of consumption of controlled wood from sources that are deemed unacceptable by the certified Chain of Custody Organizations in Brazil. No new items related to child, forced, and/or bonded labor were included in this document, so it was not necessary to update the field verification checklist with this topic. In 2020, 100% of the suppliers of Controlled Wood/Controlled Sources were assessed for the risk of child, forced and/or bonded labor, and none of them presented this risk. This was also confirmed through an external audit performed by a certifying body in October 2020, which did not find any non-compliance in this regard.

    For 2021, as part of Suzano’s Responsible Supplier Management (RSM) Program, our goal is to prepare a social and environmental risk matrix for our suppliers, based on which we will identify the procurement categories involving significant risk for the occurrence of child labor and/or young workers exposed to hazardous work.

    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.

  • Operations and suppliers identified where the right to exercise freedom of association and collective bargaining may be violated or at risk

    Context:

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

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

    In 2019 and 2020, we did not identify in the operations of the company or of our suppliers any situation in which the right to exercise freedom of association and collective bargaining could have been violated or at risk.

  • Percentage of certified wood, by type of certification

    Change view:

    • wdt_ID Percentage of certified recycled wood and/or fiber, by type of certification¹ 2019 - Company-owned wood and/or fiber 2019 - Third-party wood and/or fiber 2020 - Company-owned wood and/or fiber 2020 - Third-party wood and/or fiber
      1 FSC®² 88 33 93 25
      2 PEFC/Cerflor 86 11 85 18

    1. The wood considered is a virgin fiber type.
    2. License codes: 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.

    Additional information:

    Wood from areas managed by Suzano, in general, has double certification – Forest management FSC® (Forest Stewardship Council®)² and Forest Management PEFC/Cerflor (Brazilian Forest Certification Program). The wood from third parties, for the most part, is not certified. Legal compliance of this wood is assessed following a specific procedure and in accordance with the FSC² and PEFC/Cerflor standards for assessing controlled wood. Certified wood from third parties has a higher volume for FSC certification.

  • Percentage of products certified externally by agencies, by type of certification

    Change view:

    • wdt_ID Percentage of products certified externally by agencies, by type of certification 2019 - Paper 2019 - Pulp 2020 - Paper 2020 - Pulp
      1 FSC®¹ 100 68 99 65
      2 PEFC/Cerflor 1 5 1 5

    1. License codes: Chain of Custody – Europe, America, China, and Switzerland – FSC-C012430; Chain of Custody – Distribution Center in Brazil and Argentina – FSC-C003231.

    Additional information:

    Most of the pulp we sell has some type of certification, and most of the volume is FSC® certified (Forest Stewardship Council®)¹.

  • Percentage of products with traceable origin of raw material

    Change view:

    • wdt_ID Indicator 2019 2020
      1 Percentage of products with traceable origin 100 100

    Additional information:

    All of our products are covered by FSC® (Forest Stewardship Council®) certifications1 and PEFC/Cerflor (Brazilian Forest Certification Program) of Chain of Custody, which guarantees full traceability of their origin.

    Suzano’s traceability mechanism makes it possible to trace the product from its origin to its final destination. All wood supply areas are controlled through a registry (PU – Production Unit), which contains cartographic, location, species, and environmental information, among others. This registry tracks the wood transportation documents and, upon entering the mills, this information is entered into a system that identifies the origin of the wood.

    This control makes it possible to track the information of the wood used in the production of each batch of finished product. It is possible to trace the origin using the invoice information, or batch numbers, according to the process below:

    1. Sales document (Bill of Sale, Tax Invoice, Invoice)
    2. Evaluation of the Certificate of Analysis based on the batch numbers
    3. Shipping list of the wood transported to the mill, describing the PU, origin of the wood (FSC certified, PEFC certified or non-certified), volume of wood transported, municipalities, among others
    4. Analysis of shipping documents (ORM or CMMs)
    5. Analysis of planting and harvesting permits, where applicable, and other land ownership documents.

     

    1. License codes: 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.

  • Percentage of suppliers identified as having negative environmental impacts

    Change view:

    • wdt_ID Indicator 2019 2020²
      1 Percentage of suppliers identified as having negative environmental impacts¹ 4 2

    1. Only critical suppliers were considered for this indicator, i.e., suppliers of inputs and services that can generate significant impacts on quality, process performance, equipment security and integrity, on the environment, and on the health and safety of employees. To calculate the indicator, we considered the total number of suppliers identified as having significant negative impacts divided by the total number of suppliers assessed.
    2. In 2019, right after the merger that gave rise to Suzano S.A., we did not have a standardized methodology for assessing suppliers and obtaining the number of suppliers assessed by the company. As a result, the numbers reported for the year did not represent the total number of suppliers assessed. However, in 2020, the critical suppliers concept was unified and the supplier performance assessment process was standardized, which explains the increase in the number of suppliers identified as having impacts in the period.

    Additional information:

    In 2019, potential negative environmental impacts were identified because of incidents involving untreated oil spills, lack of timely information concerning water and waste treatment control, improper disposal of tires, and inadequate response time to environmental incidents with the due positioning.

    In 2020, these potential impacts were identified due to the lack of an environmental license, absence of a procedure to mitigate and/or minimize environmental impacts and events, and failure to monitor and test for black smoke for vehicles and equipment used in the transportation of people and operations. Potential impacts were identified in the states of Espírito Santo, Maranhão, Mato Grosso do Sul, Pará, Paraná, and São Paulo.

  • Percentage of suppliers identified as having negative social impacts

    Change view:

    • wdt_ID Indicator 2019 2020²
      1 Percentage of suppliers identified as having negative social impacts¹ 2 1

    1. Only critical suppliers were considered for this indicator, i.e., suppliers of inputs and services that can generate significant impacts on quality, process performance, equipment security and integrity, on the environment, and on the health and safety of employees. To calculate the indicator, we considered the total number of suppliers identified as having significant negative impacts divided by the total number of suppliers assessed.
    2. In 2019, right after the merger that gave rise to Suzano S.A., we did not have a standardized methodology for assessing suppliers and obtaining the number of suppliers assessed by the company. As a result, the numbers reported for the year did not represent the total number of suppliers assessed. However, in 2020, the critical suppliers concept was unified and the supplier performance assessment process was standardized, which explains the increase in the number of suppliers identified as having impacts in the period.

    Additional information:

    In 2019, the potential negative social impacts identified were from non-use of local/regional labor by suppliers.

    In 2020, the actual and potential negative social impacts considered included non-compliance with work safety requirements, low risk perception by employees, and the occurrence of accidents. The impacts were identified in the states of Espírito Santo, Maranhão, Mato Grosso do Sul, Pará, Paraná, and São Paulo.

  • Percentage of traceable wood, by forest management unit

    Change view:

    • wdt_ID Percentage of traceable wood, by forest management unit 2019 2020
      1 Mato Grosso do Sul 100 100
      2 São Paulo 100 100
      3 Bahia e Minas Gerais 100 100
      4 Maranhão 100 100
      5 Espírito Santo 100 100
      6 Total 100 100

    Additional information:

    Suzano’s traceability mechanism makes it possible to trace the product from its origin to its final destination. Therefore, all the wood used in our production is traceable from the forest management to the mill / production unit level.

    All Suzano wood supply areas are monitored based on 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.

    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.

  • Percentage of wood suppliers assessed and/or hired as per company requirements

    Change view:

    • wdt_ID Percentage of wood supply verified by third parties as being legally compliant 2019 2020
      1 Mato Grosso do Sul 100 100
      2 São Paulo 100 100
      3 Bahia and Minas Gerais 100 100
      4 Maranhão 100 100
      5 Espírito Santo 100 100
      6 Total 100 100

    Additional information:

    All Suzano wood supply areas are monitored based on 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.

    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.

  • Percentage of wood supply verified by third parties as being legally compliant

    Change view:

    • wdt_ID Percentage of wood supply verified by third parties as being legally compliant 2019 2020
      1 Mato Grosso do Sul 100 100
      2 São Paulo 100 100
      3 Bahia and Minas Gerais 100 100
      4 Maranhão 100 100
      5 Espírito Santo 100 100
      6 Total 100 100

    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.

    Additional information:

    All Suzano wood supply areas are monitored based on 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.

  • Proportion of spending on local suppliers

    Change view:

    • wdt_ID Percentage of spending on local suppliers¹ 2019 2020²
      1 Maranhão 52 56
      2 São Paulo 78 86
      3 Bahia 43 46
      4 Espírito Santo 58 58
      5 Mato Grosso do Sul 45 55
      6 Piauí 56 56
      7 Tocantins 63 25
      8 Pará 31 25
      9 Minas Gerais 87 75

    1. Local suppliers are those whose headquarters or branch is located in the same state where Suzano operates. This indicator considered mills, forestry units, ports, and distribution centers.
    2. In Tocantins, the percentage of purchases from local suppliers decreased because our supplier in the region that accounted for the largest expenditure started invoicing from the state of Maranhão, and is no longer local.

    Additional information:

    As a best practice for selecting and developing local suppliers, we conduct on-site visits and participate in trade fairs and business rounds in the regions where we operate. However, because of the pandemic, there were no in-person events in 2020. Nevertheless, we participated in the online business round promoted by Rede de Mulheres Empreendedoras (Network of Women Entrepreneurs), whose purpose is to connect women’s businesses with large companies.

    We also developed the Vendor List indicator, a tool used in the supplier selection process in the units in the states of Espírito Santo and Mato Grosso do Sul.

    For more details on supplier development programs, refer to indicator “Supplier management.”

  • Supplier management

    Context:

    Suzano’s Strategic Procurement Vision is to enhance value creation through solutions that integrate and transform the Supply Chain. In this way, Suzano has a structured process in place for managing and training its suppliers that is also based on its Culture Drivers. This process includes a series of activities to guarantee not only the supply of products and services, but also a relationship based on ethics and integrity with these fundamental links in our value chain. Below, we highlight each of our operational fronts regarding supplier management.

     

    Supplier development

    In 2020, we consolidated the company’s supplier development and training program: SEMEAR. Furthermore, we gave continuity, as sponsors, to the PQF and PRODFOR programs in the states of Mato Grosso do Sul and Espírito Santo, respectively, aiming to positively impact, encourage, and guide the development of participating companies.

    More than just having increasingly better partners, we want to help nurture what is good for the world: dreams, creative solutions, the local economy, and conscious entrepreneurship. To this end, in specific units, we have some programs in place for the development of suppliers, as detailed below:

     

    Semear Program

    In 2020, we selected 136 local micro and small enterprises in the logistics segment from among Suzano’s suppliers to receive guidance on how to have structured growth through best management practices, method, innovation, and principles of legal and social and environmental responsibility. That’s what we believe in, always respecting the nature of each organization.

    The first class of this program graduated in December 2020, in the state of Bahia. A total of 41 participants took part, and of these, 8 were recognized in the criteria for participation and completion of the training offered, with a reduction in the economic, financial, and labor risk class and financial dependence of the companies. The program is ongoing in the states of Mato Grosso do Sul, Espírito Santo, and Maranhão, with completion scheduled for March and April this year.

    As part of the SEMEAR Program’s program content, in 2020 we entered into a partnership with SEBRAE and held an engagement event with the topic “Social and Environmental Responsibility for Suppliers in the Transportation Segment” in the state of Bahia. For 2021, we already have an agenda planned for the states of Mato Grosso do Sul, Espírito Santo, and Maranhão.

     

    Integrated Supplier Development and Training Program – Prodfor (ES)

    Also known as Prodfor, the program represents the union of several companies (called sponsors) in the state of Espírito Santo, aiming to promote the development and training of suppliers of goods and services. Suzano is one of the sponsors of the program, contributing not only with the company’s own suppliers, but also with those that work for other organizations.

    Several actions are carried out with various goals, such as developing local suppliers, stimulating technical training, and sharing best management practices with the organizations in the program. The sponsors analyze and approve the registration of suppliers who wish to participate in the Program and who are committed to all stages of the project. The program has the support of the Federation of Industries of the State of Espírito Santo (FINDES) and the executive coordination of the Instituto Euvaldo Lodi (IEL-ES).

     

    Supplier Development and Training Program – PQF (MS)

    Also known as PQF, the program was created to adapt these organizations in the state of Mato Grosso do Sul both to basic management requirements and to the international standards required for negotiating with large industries.

    The program has several sponsoring companies, including Suzano. The program is supported by the Federation of Industries of the State of Mato Grosso do Sul (FIEMS) and coordinated by Instituto Euvaldo Lodi (IEL-MS) and the Brazilian Service in Support of Micro and Small Enterprises (SEBRAE).

    In addition to the initiatives already mentioned, in 2020, the construction of our new plant for the production of toilet paper was started in the municipality of Cachoeiro do Itapemirim, in the southern region of the state of Espírito Santo. In this way, we are also working directly on the development of companies in the region in question, in order to create a local supply chain for this new operation.

     

    Procurement processes

    At Suzano, we have two distinct procurement processes: centralized, under the responsibility of the Procurement team, and decentralized, under the management of different areas of the company.

    Considering centralized and decentralized suppliers, in 2019, we had 10,255 active suppliers, compared with 35,964 registered in our database. Both data consider headquarters and branch. In that same year, spending on suppliers was approximately R$ 17 billion.

    In 2020, we engaged a total of 11,358 active suppliers, compared to 30,015 registered suppliers in our database. In the same period, we spent R$ 20.22 billion on purchases. Of this total, centralized contracts account for R$ 10.9 billion, and transactions with local suppliers—i.e., those with headquarters or branch in the areas where Suzano operates—account for 40% of the total cost.

     

    Suppliers screened using social and environmental criteria

    At Suzano, the registration and certification process for new suppliers considers their scope of activity to define the criteria by which they will be analyzed. In any case, for suppliers to be hired, registered, and certified, all of them must invariably sign a commitment to the Standards of Legal and Social and Environmental Responsibility established by the company. (Learn more about the new suppliers that were screened using environmental criteria

    In the supplier performance evaluation process, audited internally and externally (according to ISO 9000, 14000, 18000, INTI, SMETA, Clients), Safety, Environment and Sustainability requirements are applied to 100% of the regular service providers (those performing services for more than 90 days at Suzano’s premises), and suppliers may be classified under “degree of excellence,” “approved,” “approved with restrictions,” and “not approved.”

    In the case of suppliers that operate with dedicated third parties in Suzano operations, we perform monthly monitoring, which we call COA (Controle de Obrigações Acessórias – Control of Ancillary Obligations). This is a structured process that complies with the labor legislation and other conditions assumed due to the free negotiation of agreements and collective labor agreements. We also have in place a field audit process, through which we interview part of the employees of companies that provide regular services to investigate possible deviations. After a period of 12 months, technical managers globally assess suppliers from a social standpoint. In order to tackle the deviations identified, an action plan may be implemented or, as a last resort, the business relationship may be terminated.

    Additionally, Suzano considers part of its suppliers to be critical. That is, suppliers of inputs and services that can generate significant impacts on quality, process performance, equipment safety and integrity, on the environment and on the health and safety of employees. In 2020, this group accounted for 4% of the company’s total number of suppliers, corresponding to 41% of the procurement budget. Thus, different measures are in place to ensure a good relationship with these suppliers and reduce the risk of impacts on their end.

    For these critical suppliers in the categories of regular services, inputs, forestry and industrial raw materials, we apply an annual performance evaluation. This evaluation considers, among several requirements, environmental and social criteria. The environmental criteria address operational processes, occurrences and environmental impacts, and response to occurrences. Social criteria, on the other hand, evaluate impacts of this nature generated by activities and respect for issues related to Human Rights. Our goal is to develop a Sustainable Procurement Policy, based on which we will review the sustainability criteria currently applied in supplier assessment and expand the range of suppliers assessed using these criteria.

    For more details on critical suppliers, refer to indicator “Critical suppliers.”

     

    Highlights in supplier management in 2020

    Environmental compliance

    A Pilot Project for Environmental Compliance of Suppliers was implemented in 2020. From this project two suppliers representing each forestry operation ( Forestry, Harvest, and Logistics and Roads) were chosen to be registered. In this way, the environmental documents pertaining to the activities they perform at Suzano were checked, and for those issues that were pending or not approved, we developed an action plan. These action plans will be verified and monitored by the responsible teams, in order to seek compliance with the applicable environmental legislation.

    Also this year, we started Suzano’s Responsible Supplier Management Program (RSM), whose goals are:

     

    • Develop a network of sustainable partners.
    • Improve the performance of suppliers.
    • Create and share value with the chain.
    • Build a strategy for developing long-term sustainable partnerships.
    • Integrate the activities of suppliers with the other processes in the chain with a focus on innovability (Innovation + Sustainability).
    • Achieve good coordination of the procurement flow, from registration to the termination of the relationship with the supplier.

     

    The program will be fully implemented in up to 4 years and includes engagement actions through webinars, workshops, and events related to sustainability. To this end, we will focus on topics such as environment, emissions, waste, and water; human rights and working conditions; data privacy; health and safety; diversity and inclusion, accessibility, and support for minorities; the future of work and the extent of the consequences of digitalization and automation; ethics, integrity, anti-corruption, and anti-favoritism; and collaboration, co-innovation, and fostering innovation for responsible businesses and social impact.

    Lastly, we also went ahead with the implementation of the Ímpar System, a Supplier Management system focused on controlling the level of compliance with suppliers’ environmental requirements, by means of licenses, authorizations, permits, among other relevant documentation. Our goal for 2021 is to implement 100% of the system.

     

    CDP Supply Chain

    In 2020, we also entered into a partnership with the CDP Supply Chain Program, of the Carbon Disclosure Project (CDP), for a pilot project in 2021 focused on climate change topics in our supplier relations. In this way, we will work to better manage this topic and stimulate the reduction of greenhouse gas emissions in our supply chain year by year, in line with our commitment to becoming even more climate positive (removing more carbon from the atmosphere than we emit, directly or indirectly).. In all, 100 suppliers from categories considered critical in terms of greenhouse gas emissions will participate in the project.

  • Volume of certified company-owned and third-party wood, by type of certification

    Change view:

    • wdt_ID Volume of certified company-owned and third-party wood and/or fiber, by type of certification, in tonnes¹ 2019 - Company-owned wood and/or fiber 2019 - Third-party wood and/or fiber 2019 - Total 2020 - Company-owned wood and/or fiber 2020 - Third-party wood and/or fiber 2020 - Total
      1 FSC®² 19,960,497.68 3,325,619.98 23,286,117.66 23,222,972.14 2,836,404.17 26,059,376.31
      2 PEFC/Cerflor 19,438,876.63 1,101,725.98 20,540,602.61 21,201,707.52 2,015,437.85 23,217,145.37
      3 Total 39,399,374.31 4,427,345.96 43,826,720.27 44,424,679.66 4,851,842.02 49,276,521.68

    1. The wood considered is a virgin fiber type.
    2. 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 – Europe, America, China, and Switzerland – FSC-C012430; Chain of Custody – Distribution Center in Brazil and Argentina – FSC-C003231.

    Additional information:

    Wood from areas managed by Suzano, in general, has double certification – Forest management FSC® (Forest Stewardship Council)² and Forest Management PEFC/Cerflor (Brazilian Forest Certification Program). The wood from third parties, for the most part, is not certified. Legal compliance of this wood is assessed following a specific procedure and in accordance with the FSC² and PEFC/Cerflor standards for assessing controlled wood. Certified wood from third parties has a higher volume for FSC certification.

  • Volume of certified wood, by type of certification

    Change view:

    • wdt_ID Volume of certified wood and/or fiber, by type of certification, in tonnes¹ 2019 2020
      1 FSC®² 23,286,117.66 26,059,376.31
      2 PEFC/Cerflor 20,540,602.61 23,217,145.37
      3 Total 43,826,720.27 49,276,521.68

    1. The wood considered is a virgin fiber type. The indicator includes company-owned and third-party wood and/or fiber.
    2. 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.

    Additional information:

    Wood from areas managed by Suzano, in general, has double certification – Forest management FSC® (Forest Stewardship Council)² and Forest Management PEFC/Cerflor (Brazilian Forest Certification Program). The wood from third parties, for the most part, is not certified. Legal compliance of this wood is assessed following a specific procedure and in accordance with the FSC² and PEFC/Cerflor standards for assessing controlled wood. Certified wood from third parties has a higher volume for FSC certification.