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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  • 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.