Strategy and Governance

Information on Suzano’s strategy on climate change, as well as the company’s governance regarding the topic.

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  • Governance in Climate Change

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    Context:

    Suzano’s Sustainability Department is responsible for the climate change agenda and governance. However, this agenda and governance is conducted in partnership with a number of other areas of the company that also hold responsibilities related to this topic.

    Areas such as Operational Forestry Development, Forestry Excellence, Environment (Industrial and Forestry), New Business, Research and Development, Planning (Strategic and Forestry), Recovery and Utilities create and implement actions focused on monitoring risks associated with climate change, mitigation and adaptation; monitor emissions and consumption from forestry and industrial operations; seek innovations and technological solutions related to mitigation and resilience; manage energy consumption and generation, water resources, forests, and environmental restoration.

    Other areas such as Investor Relations, Risks, Corporate Relations, and Regulatory Affairs also have responsibilities, such as those related to monitoring trends, risks, and the developments in political agreements and processes.

    In line with this comprehensive strategy, in 2021, the goals for the variable pay of Suzano’s CEO and of the Industrial, Corporate Relations, and Sustainability Directors began to be linked to climate change. Following the trend, Executive Managers and teams also started to have climate change-related goals

    In addition, since this is a cross-cutting topic, working groups (WGs) were established to concentrate the efforts of different areas on defining necessary actions and monitoring Suzano’s performance in areas such as energy, water, and consumption of natural resources, which, when well managed, result in lower GHG emissions, mitigation of the effects of global warming, and greater ability to adapt to climate change.

    In 2020, the Carbon WG was established from an initial group, formed by the Directors of New Businesses, Legal Relations and Management, Finance, Sustainability, and Research and Development, with the objective of following up on climate-related agendas and trends. At the same time, executive managers and teams work to internalize climate-related trends and aspects in the company’s operations. In this WG, depending on the agenda, other directors and teams are involved, such as Forest Environment, Forest Planning, among others. However, as new demands arise and governance practices improve, other working groups may eventually be established.

    The Board of Directors also has direct involvement in the topic, with a strategic insight into opportunities and risks. Its members are involved in defining and monitoring Suzano’s corporate strategy, which includes guidelines and long-term goals related to climate change. In addition, the Strategy and Sustainability Committees (which are collegiate bodies and have independent internal and external members), support the Board of Directors in this work.

    Specifically, the Sustainability Committee is responsible for reviewing and guiding strategy, corporate responsibility, risk management, innovation and performance in social and environmental issues, including topics of climate change.

    The Board also supervises risks defined as priorities, including those related to climate change. The Risk area is ultimately responsible for identifying and managing these aspects and reports this work directly to the Board of Directors. Additionally, the Risk Committee convenes every four months to discuss the identified and monitored risks, follow up on its action plans, and manage possible crises. Because they are classified as a priority in the Corporate Risk Matrix, climate risks are included in these discussions and are specifically addressed at least once a year.