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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  • 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.