List of Indices and Initiatives related to Climate Change in which Suzano took part in 2020.
Recognition related to the topic of Climate Change
Related Material Issues
Suzano’s commitments to sustainability and creation of long-term value are being recognized by external evaluators, who play a relevant role in the global agenda on this topic. Regarding the climate change agenda, in 2020, the company obtained the following recognition:
- Dow Jones Sustainability Index (DJSI): In 2020, Suzano was chosen to integrate the 2020-2021 portfolio of the Dow Jones Sustainability Index – Emerging Markets (DJSI Emerging Markets). The dimensions analyzed include climate strategy and Operational Eco-efficiency. Aspects such as risks, opportunities, adaptation and mitigation are also measured by the index
- Corporate Sustainability Index (ISE): B3’s Corporate Sustainability Index (ISE B3) was the 4th sustainability index created in the world, in 2005 and the most important in Brazil. It is a tool for comparative analysis of the performance of the companies listed on B3 in terms of corporate sustainability. One of the dimensions analyzed is Climate Change. Suzano was chosen to be part of the 2021 portfolio of the Corporate Sustainability Index (ISE).
- B3 Carbon Efficient Index (ICO2): The Carbon Efficient Index, ICO2, is an indicator created by B3 in partnership with BNDES, the Brazilian Development Bank. The index is composed of shares of companies participating in the IBrX-100 (indicator composed of the 100 most actively traded stocks in the Brazilian capital market), that adopt transparent practices with respect to their greenhouse gas emissions (GHG), stating their concern with global warming. The selection of the participating companies takes into account the degree of efficiency of GHG emissions and the free float of each of these companies. The select group, effective until April 30, 2021, includes 62 shares from 58 companies listed on B3, and Suzano is one of them.
- Carbon Disclosure Project (CDP): In 2020, we joined the CDP platform, which provides support to investors and governments in their decision-making process based on important information on risk management, opportunities, and social and environmental impacts. This initiative was created to mobilize these parties in order to build and accelerate collaborative actions for a viable development for current and future generations. The good news is that, in our first year, due to the methodology adopted by the organization, we scored a B in the three questionnaires answered on climate, water, and forests.
- TPI: According to the platform, Suzano’s Scope 1 and 2 emissions intensity reduction target is among the best in the industry and in line with the climate scenario of “below 2oC,” i.e. beyond the reduction scenario envisaged in the Paris Agreement. As of the date of this report, Suzano was at level 2 – Building capacity; however, Suzano understands that it could be at higher levels of the initiative.
- Climate Action 100+ (CA100+): an investor-led initiative launched in 2017 with an initial focus on the 100 companies with the highest volume of direct (Scopes 1 and 2) and indirect (Scope 3) emissions, identified based on data modeled and reported by CDP. In the year following the launch, investors were invited to name companies that have specific opportunities to drive the transition to clean energy; that may be highly exposed to climate-related financial risks; or that may be crucial at a regional or national level. Another 61 companies were identified through this process. Suzano was named to the initiative in late 2020, having been identified as having an important role in the transition to net zero emissions by 2050 or earlier.
Suzano was also the first company in the pulp and paper sector to be featured in a case study of the Task Force On Climate-related Financial Disclosure (TCFD). Launched in 2015, the TCFD Knowledge Hub, a page where initiatives related to TCFD recommendations are disclosed, has already posted 14 case studies (developed by companies in the financial and non-financial sectors). In the case of Suzano, the highlight is the Indicators Center, which contains financial information related to climate change, in line with the recommendations for measurement and transparency of results proposed by the TCFD.